Agrotechnology to Fight Hunger
Once upon a time, the height of farming technologies was a bull and a set of plows. And interestingly enough, that sufficed for providing the world with enough food. Today, however, is another story. The world is growing in population, and all these people need food that more often than not comes from farms.
That’s why industry leaders need to put their resources together and develop new technologies to make the farming process as efficient as possible. What does efficiency include exactly? The most crucial factor in this issue is water. Water shortages are destroying crops all over the world, and new technologies need to improve the efficiency with which farmers consume water.
Soil shortage is another issue that farmers are facing these days. Technology needs to increase soil sustainability and efficiency so that the world won’t run out of farmable soil any time soon. Some of the main threats to soil erosion are overusing the soil, erosion through floods, and pollution.
Here are the technologies that are evolving the agriculture industry:
The new generation of tractors is now running on electricity. These electric tractors use less energy and produce virtually no pollution at all. In contrast, the old tractors used gasoline and petroleum as their fuels which were highly inefficient and emitted a considerable amount of CO and CO2 into the atmosphere. What’s more the noise pollution in the old tractors was so much that it disrupted the wildlife around the farm. The new, green tractors do not make any noise pollution.
Internet of Things
IoT can play an important role in greenhouse farming technologies. IoT in farming comes in the form of weather and climate sensors. In an extensive greenhouse system, controlling temperature and humidity is an essential factor to take into account.
Smart sensors are connected to a central system that measures and sets the temperature and humidity in each greenhouse without human intervention. This reduces the need for farmers and staff members and, in turn, reduces the cost of operations on a farm.
Farming operations depend heavily on weather systems. A sudden unexpected burn of rain or heavy winds can significantly disrupt farming processes and ruin the crops. Therefore, the more data farmers have, the easier it will be to make a schedule.
Today’s satellite data means that farmers don’t have to rely on their senses and ancestral teaching to see when they have to harvest the crops. Additionally, satellites can provide farmers with valuable information about the quality of the products and their state.
Artificial intelligence and machine learning
AI and ML can also help farmers make their operations more efficient. What happens in two ways: by providing information and automizing processes. The information that AI and ML give farmers includes which parts of the farm need more fertilization, water, or harvesting. Farmers can also know about rain and heat patterns. Farmers can also use AI-controlled drones to oversee farming and day-to-day operations.
Companies that offer farming technologies
Deere & Company (DE)
Deere, along with its subsidiaries, works in agriculture, construction, and financial sections. In the agricultural section, Deere makes tractors in several sizes, Combine machines, and harvesters for different crops.
Deere was founded in 1837 and since then has been one of the significant producers of agriculture equipment in the world. The revenue for Deere is estimated to reach 40.11 billion dollars in 2021. This amount is predicted to grow to 45.32 billion dollars in the following year, 2022. The stock for Deere & Company is currently traded for 343.17 dollars per share. This company is forecasted to grow by 41.53% per year in the next five years.
CNH Industrial NV (CNHI)
CNH Industrial is headquartered in London, specializing in designing and manufacturing specialty vehicles. From construction to agriculture, buses, trucks, and other industrial machines. This company has over 64,000 employees in 180 countries. CNH Industrial’s facilities include 66 factories and 57 research and development sites.
CNH Industrial estimates to have a revenue of 27.28 billion dollars in the current year, 2021. This amount is expected to reach 28.73 billion dollars in the following year, 2022. The stock for CNH Industrial is currently traded for 16.50 dollars per share. This company is forecasted to grow by 67.62% per year in the next five years.
AGCO Corporation (AGCO)
AGCO is another leading name in the design, manufacture, and distribution of agricultural solutions. AGCO specializes in making tractors in various sizes for different kinds of farms. All farms need silos to keep the extra crops. AGCO also manufactures storage facilities for drying crops and keeping them in a suitable temperature and humidity.
AGCO Corporation is located in Georgia, USA. This company was founded in 1990 and had a revenue of 11.37 billion dollars in 2021. AGCO is forecasted to have a revenue of 11.97 billion dollars in the following year, 2022. The growth of this company is estimated to be 26.08% per year in the next five years. The stock for AGCO is currently traded for $127.45 per share.
Mahindra & Mahindra Limited (MAHMF)
Mahindra was founded in 1945 and had offices and facilities in more than 150 countries around the globe. Mahindra’s range of activities has expanded to 22 critical industries over the years. Mahindra is headquartered in India and has played an essential role in the country’s industrial revolution.
The revenue for Mahindra is estimated to be 193.68 Indian Rupees which is equal to 2.5 billion dollars in 2021. The stock for this company is currently traded for 11.60 dollars per share.
How large is the market size for agricultural equipment?
The market size for agricultural equipment was estimated to be 183.85 billion dollars in 2020. This market’s annual growth rate is 8.2 %, and it is forecasted to reach 276.85 billion dollars by 2025. This market is mainly driven by the need to adapt to global warming and soil erosion that’s plaguing the farming industry these days.