Smart Farming: Benefits for Farmers and Agricultural Machinery Manufacturers

Published: 2023-04-24 Updated: 2023-11-10

When it comes to agriculture, few people think of drones and artificial intelligence. Yet modern technology for agricultural applications is ubiquitous. It is playing an increasingly important role for the agricultural sector, which is one of the most important economic sectors in Germany with net sales of around 41 billion euros in 2020.

The reason: Agriculture is currently facing major challenges. Due to various developments, farms need to find strategies to operate more efficiently, in a more environmentally friendly manner and more productively.  

These developments include  

  • the effects of climate change 
  • rising population  
  • dwindling resources  

Without digitization and the use of new technologies, these challenges can hardly be overcome. Smart farming, in particular, helps farmers prepare for the future and optimize their processes. 

This article shows what smart farming is and how, in addition to farmers, manufacturers of agricultural machinery also benefit from developments in this exciting field. 

Definition: What does smart farming mean?

Smart farming comprises various digital solutions that support farmers in growing, tending and harvesting crops. Basically, smart farming is the digitalization of agriculture. 

The goal is to improve farm productivity and efficiency and reduce costs. The harvest yield and the quality of the products increase, while the burden on the environment decreases. 

IT systems from start-ups or established companies are used for this purpose. They enable the implementation of precise and efficient processes on the land. This is why we also speak of precision farming or digital farming. Digital solutions simplify the work of farmers and at the same time enable sustainable agriculture. Thus, in the long term, they make an important contribution to climate protection. 

How does smart farming work?

To make the vision of efficient, sustainable, and digital agriculture a reality, various digital technologies work together in smart farming. Which solutions these are depends on the farm and its tasks. They range from small sensors to entire farm management systems.  

Typical examples of intelligent solutions used for smart farming are 

  • GPS-controlled agricultural machinery, 
  • artificial intelligence,  
  • robotics,  
  • drones and 
  • software such as agricultural apps. 

It is not only the use of innovative technology that plays a role in the digitalization of agriculture. The topic of data analysis is just as important. Because it is not enough for sensors to collect data. The data must be analyzed in order to draw conclusions for improvements. The following examples show how modern technology and analyses help agriculture to achieve better results. 

Practical examples of smart farming

Sensors help farmers determine the nutrient content, moisture content and pH of the soil. This data forms the basis for targeted fertilization and irrigation. Seeds, water, and fertilizer can thus be used more sparingly. At the same time, crop yields increase. 

Another example of smart farming is the use of drones for effective control of pests or weeds. Drones and satellite images provide farms with an overview of the condition of their fields. This enables them to detect pest infestations at an early stage. Instead of having to use pesticides and other chemical agents across the board, modern technology and digitization enable farms to initiate targeted countermeasures. 

 

Advantages of smart farming

The use of new technologies offers farms the following benefits, among others: 

  • Precision farming: Precision farming based on sensors and GPS systems can intelligently optimize the management of cultivation, care and harvesting. 
  • Increased efficiency: Improved workflows mean greater efficiency and lower costs. 
  • Risk minimization: The risk of crop failure decreases when farmers can digitally monitor and better manage their fields. 

Agriculture 4.0: an opportunity for agricultural machinery manufacturers

The need for digital farming technologies is great. That is why there are now numerous start-ups developing digital solutions for agriculture. In addition, however, traditional manufacturers of agricultural machinery are also benefiting from the growing demand for smart farming solutions. 

Developing precise and efficient agricultural machinery 

Digital farming offers these companies various opportunities to improve their machines and services for agriculture: They can integrate smart technologies such as sensors for measuring soil conditions into their machines and create new purchasing incentives. 

Providing data-based services 

In addition, they can offer data-based services and digitally provide farms with real-time information about the condition of their agricultural machinery and fields. This also benefits the spare parts business, as orders can be placed more easily and precisely via a corresponding system such as a spare parts catalog

Diversifying the business 

Using smart farming technologies, agricultural machinery manufacturers are modernizing and digitally diversifying their aftersales business. They can also easily add new products and services to their offering, such as smart sensors or drones that make it easier for farmers to monitor their fields. 

Prerequisites for smart and precision farming

Digitalization has arrived in the countryside. Many farms are already gaining experience with smart farming. According to a German smart farming study by bitkom, 78 percent of them see more opportunities than risks in digitization. Nevertheless, agriculture still has to overcome a number of challenges on the way to nationwide smart farming. This also requires support from politicians.  

More than one in two farms would like to see the establishment of a central agricultural platform for their own data management. 95 percent are in favor of user-friendly and free access to geodata, operating data and weather data. However, the most important political measures demanded include subsidies for digital acquisitions (80 percent) and better mobile communications and broadband expansion in rural areas (96 percent). 

The digitization of agriculture also requires the use of modern software solutions and the establishment of a reliable IT infrastructure in rural areas. To meet this requirement, agricultural machinery manufacturers, among others, are called upon. 

 

How companies exploit the opportunities of digitalization in the agricultural sector

Smart farming offers users and manufacturers of agricultural machinery exciting opportunities for the future. If agricultural machinery manufacturers intelligently develop their machines and technology and offer new business models, they will continue to meet the growing demands of agriculture in the future. 

Farmers, on the other hand, are able to do their work even more efficiently with digital farming technologies. This ensures a supply of healthy and affordable food for the population. 

Smart farming is the future of agriculture. Whether start-up or established company: To develop the technologies required for this and to be able to become established as pioneers in the market, machine manufacturers must first drive forward their own digitalization. 

They can achieve this goal quite easily with the help of modern software and platforms for managing service and spare parts information. One such system is Quanos InfoTwin. It enables machine manufacturers to digitize their own processes smartly and lay the foundation for new business models for smart farming. In this way, they become indispensable partners in the field of agriculture.  

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