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agricultural risk

Agriculture 2.0: how the Internet of Things can revolutionize the farming sector

Hyea Won Lee's picture
Nguyen Van Khuyen (right) and To Hoai Thuong (left). Photo: Flore de Preneuf/World Bank
Last year, we showcased how Vietnamese farmers in the Mekong Delta are adapting to climate change. You met two shrimp farmers: Nguyen Van Khuyen, who lost his shrimp production due to an exceptionally dry season that made his pond too salty for raising shrimp, and To Hoai Thuong, who managed to maintain normal production levels by diluting his shrimp pond with fresh water. Now, let’s suppose Nguyen diluted his shrimp pond this year, another year with an extremely dry season. That would be a good start, but there would be other issues to contend with related to practical application. For example, when should he release fresh water and how much? How often should he check the water salinity? And what if he’s out of town?
 
Nguyen’s story illustrates some of the problems global agriculture faces, and how they unfold for farmers on the ground. Rapid population growth, dietary shifts, resource constraints, and climate change are confronting farmers who need to produce more with less. Indeed, the Food and Agriculture Organization (FAO) estimates that global food production will need to rise by 70% to meet the projected demand by 2050. Efficient management and optimized use of farm inputs such as seeds and fertilizer will be essential. However, managing these inputs efficiently is difficult without consistent and precise monitoring. For smallholder farmers, who account for 4/5 of global agricultural production from developing regions, getting the right information would help increase production gains. Unfortunately, many of them still rely on guess work, rather than data, for their farming decisions.
 
This is where agriculture can get a little help from the Internet of Things (IoT)—or internet-enabled communications between everyday objects. Through the IoT, sensors can be deployed wherever you want–on the ground, in water, or in vehicles–to collect data on target inputs such as soil moisture and crop health. The collected data are stored on a server or cloud system wirelessly, and can be easily accessed by farmers via the Internet with tablets and mobile phones. Depending on the context, farmers can choose to manually control connected devices or fully automate processes for any required actions. For example, to water crops, a farmer can deploy soil moisture sensors to automatically kickstart irrigation when the water-stress level reaches a given threshold.

Our food system depends on the right information—how can we deliver?

Diego Arias's picture
Photo: CIF Action/Flickr
For most of us, watching the weather forecast on TV is an ordinary, risk-free and occasionally entertaining activity. The weatherman even makes jokes! But when your income depends on the rain or the temperature, the weather forecast is more than just an informative or entertaining diversion. Information can make or break a farmer’s prospects. Farmers get a sense of the risks they face down the road and plan their planting, harvest, use of inputs like fertilizers and pesticides, crop and livestock activities and market sales around weather reports and other information—on prices, local pests and diseases, changes in credit terms and availability, and changes in regulations, among other things.

The availability and quality of such agriculture risk information is hugely important for farmers, and the potential impact of bad information can be quite costly, leading the farmer to make wrong decisions and eventually lose revenue. Information systems that have unreliable sources and/or poor data processing protocols, produce unreliable results, no matter how complex the data processing model is. In other words, one can have “garbage in – garbage out.” Information is integral to agriculture risk management, not only in the short term to hedge against large adverse events, but also in the medium and long term to adapt to climate change and adopt climate smart agriculture practices. Climate-smart agriculture programs and agriculture risk management policies are toothless unless farmers have reliable information to implement changes on the ground.

Investing in agriculture risk information systems is a cost-effective way of making sure that farmers--and other actors along the food supply chain-- make the right decisions. But agriculture risk information systems in most countries suffer from lack of capacity and funding. Mexico, a country with an important agriculture sector, does not have information on market prices of agriculture products like maize, which is why a new Bank project aims to strengthen their capacity in this area. Mexico is not alone. Argentina solved this same problem recently with World Bank support, creating a market price information system for basic grains.

Making the risky business of agriculture ‘climate-smart’

Vikas Choudhary's picture

Farmers harvest crops in Madagascar.

Agriculture is an inherently risky business.  From natural disasters and erratic rainfall to pests, few other sectors are as exposed or as vulnerable to shocks.
 
Climate change is a source of significant risks for agricultural and food systems: Climate projections suggest that average growing conditions will shift and there will be more uncertainty in predicting climate and weather conditions. More concretely, these impacts will translate into an overall warming trend, an increasingly erratic distribution of precipitation, more frequent and more devastating extreme weather events, and spatial shifts in the occurrence of pests and diseases. These impacts can cause production losses which lead to market volatility and in some cases, reactionary shifts in policies and regulations. 

Thoughts on Resilience: Action versus Definition

Marc Sadler's picture
Photo by F. Fiondella (IRI/CCAFS) via Flickr CCA new word has entered the running for buzzword of the moment: “Resilience” seems to appear on every other page and is lauded at events as the focus for all. Indeed, academics, institutions and organizations seem to be racing to define the term, which will most likely end in confusion and competing definitions.

However, the reality of the concept is extremely straightforward. Resilience equals the ability of people, communities, governments and systems to withstand the impacts of negative events and to continue to grow despite them. Or maybe that is simply the definition I use.

Whatever the definition, what we can agree on is the need for action. It has always been challenging to convince people to invest in things that are preventative—quite simply, demonstrating impact requires proving a negative most of the time. However, with the apparent increase in frequency and severity of negative events, political and commercial willingness to take prevention, avoidance and risk management seriously is increasing.