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Debate: Is smart farming worth it?

Reading Time 8 min
July 22, 2024

Thanks to smart technology, cows can be milked efficiently and crop protection agents can be precisely applied. At the same time, data gathering and processing is facing agricultural operations with huge challenges. Andreas Dörr, a farmer, and Johann Meierhöfer, an expert from a farmers’ association, talk about the opportunities and limits of digitalization

Alternativbild
By Christian Baulig

Journalist and economist

Jörg Wagner
By Jörg Wagner

Head of External Communications Evonik

Mr. Dörr, you grew up on a farm. Do you still remember how your father used to plan the field work?

Andreas Dörr When I was a boy, all of that was still analog. My father watched the weather forecast on television, and after that he would plan when he would plow, fertilize or harvest. However, he switched to relying on modern technology early on and used software applications. On our family-operated farm, we’ve been digitally maintaining a field file, in which we keep track of all the agricultural work done on each plot of land, for the past 23 years.

Today you cultivate more than 1,400 hectares, and your operations are fully digitalized from start to finish. You optimize the fertilization process with the help of near-infrared analysis, precisely measure the moisture of the grain growing in the field…

Dörr We’ve even developed a digital twin of our agricultural operations. It’s a cloud-based application that we use for the daily planning in order to optimize our processes and improve the quality management. We’ve also got a smart grain warehouse and a smart filling station, and the vehicles we use for working the fields are computer-controlled. The structure of our operation compels us to work efficiently. Our company’s office is located in Ostheim vor der Rhön, and the farm operations are 30 kilometers away in Oepfershausen. Digitalization has been important for us for a long time, because we need to have access to all of the information from everywhere. I’ve programmed a number of apps and applications myself. I have new ideas all the time—and I enjoy working with this topic.

Andreas Dörr stands on a green field with his arms folded.

Mr. Meierhöfer, is this what the future of agriculture will look like?

Johann Meierhöfer Unfortunately, there’s a huge gap between the people who are marching way out in front like Mr. Dörr and the vast majority. German farmers are very innovative, and many of them would like to do much more—but many of the basic requirements are missing. A fourth of German farmers use technologies that are related in some way to precision agriculture, but this proportion has barely increased in recent years. Evidently there are obstacles that the remaining farms cannot overcome. The policymakers often forget this fact very quickly if they are always presented only with examples such as Mr. Dörr’s farm.

According to a study conducted recently by the Bitkom association, large-scale farms believe that digitalization mostly offers them opportunities. Smaller operations have a more vivid awareness of the risks involved. Is digitalization in agriculture a question of size?

Meierhöfer Small farms use it successfully too. I know farmers with operations covering 50 or 100 hectares who are grappling intensely with digital technologies—for example, because they are raising livestock, an area where digitalization makes a lot of sense. Conversely, I know of large farms in regions such as Brandenburg, whose owners got involved very intensely with the topic 15 years ago and in some cases hired additional personnel who dealt only with the field file, yield analyses, soil samples, and precision application—and these owners eventually stopped using these technologies.

Why did that happen?

Meierhöfer In many cases, these activities don’t yield any direct added value. So it’s not primarily a question of size. Instead, it depends on the people in charge. Admittedly, it’s often easier for a larger farm to make the necessary investments in digital technology.

What kind of figures are we talking about in your case, Mr. Dörr?

Dörr We invest about €20,000 annually in digital applications, meaning both hardware and software. However, our farm is a special case, because industrial companies make lots of equipment and programs available to us so that we can try them out. The time I need to invest as an operations manager is more important than the money involved. I need to understand the technology, read up on the documentation, negotiate with service providers, and share data. Nowadays a farmer is not just a crop producer or livestock owner but also an IT administrator and a geodata processor. Many of the applications we use are very complex.

Johann Meierhöfer stands in front of a wall made of different types of wood.

Farmers have had to deal with new technologies since time immemorial. What makes digitalization so special?

Dörr Farmers are being bombarded with so many things today. We’re experiencing upheavals resulting from climate change, fluctuating demand structures, and the desire for greater environmental compatibility on the part of policymakers and society as a whole. Digitalization is now a further step in this structural transformation. It can make the future of many farms easier—but also pour oil on the fire in the course of the ongoing structural transformation.

Meierhöfer Besides, it requires lots of preconditions. Take precision fertilization, for example. Fifty years ago a farmer would drive to the dealer, have the dealer pour the fertilizer into his trailer, and then drive out into the field. He chose the settings of the fertilizer spreader according to his past experience. Perhaps he drove a bit slower in one place and a bit faster in another—and that was the end of it. Today I have to start by purchasing the suitable technology. Nowadays a state-of-the-art tractor already receives a satellite signal as a rule, but I also need a fertilizer spreader that can make use of an application map. Next, I have to consider on which basis to proceed. Should I use the German soil inventory—that is, the soil maps that were created about 90 years ago for all of the agricultural land utilized in Germany? Do I place my trust in conductivity measurement, satellite images or a sensor? At that point some people might wonder if they want to go to all of this trouble.

Dörr You’re touching a sore spot here. At our farm we’re currently running a research project on precision fertilization. There are so many factors coming together in the soil that we can’t yet represent by means of data. We’ve participated in many experiments over the past ten years, but so far there hasn’t been any technology that impresses me. The experience my father brings to the farm operations, his connection with the different soils, his familiarity with the region and how its climate behaves—all of those things are much more important.

Just a moment, are you saying that digitalization as a whole is the wrong approach?

Dörr No, I have a different perspective when it comes to precision crop protection, for example. The precision application of crop protection agents can be determined according to simple parameters: More spray has to be applied to the plant stock where it’s dense than where it’s sparse. Digitalization can help us make the right decisions for improving soil quality, cultivation techniques, and livestock farming. We farmers have a long-term interest in that, because only healthy soils yield good harvests and only healthy animals provide high outputs.

Digitalization takes time. But you’re also saying that it enables you to save lots of time.

Dörr That’s right. It doesn’t always have to be a fantastic solution that uses satellite-supported technologies. The paperless office, in which documents are scanned and digitally filed, can already help a lot. Farms do direct marketing via webshops and advertise their products on social media. If you use digitalization in the right way, it simplifies processes significantly. You just have to choose what you need from the wide range of applications. 

Andreas Dörr

Andreas Dörr, 41, is the CEO of Doerr-Agrar. In the German state of Thuringia, the company cultivates about 1,400 hectares, including 950 hectares of arable land and 450 hectares of grassland. Dörr, an agricultural engineer, uses many smart technologies. In 2023 he received a Bavarian Digital Award (second prize). In addition to working at his family-owned company, Dörr advises industrial companies and makes presentations to farmers

Andreas Dörr steht auf eiem grünen Feld.

Is the change of generations promoting digitalization?

Dörr It certainly is. It’s just the same in every area of life: When the children are using something new, the parents are forced to deal with it too. My father doesn’t understand the details of how some of the things we’re introducing actually work. But he thinks it’s cool that when he’s on the road he can pull his mobile phone out of his back pocket and look at our stock ledger app to find out how much wheat has already been threshed today and how much of it has already been brought to the grain store.

Shouldn’t it be up to industry to develop solutions that are more user-friendly and make life easier for the farmers?

Meierhöfer Unfortunately, that’s not the case. Until now, one big problem has been interoperability—the ability of machines to communicate with one another even if they come from different manufacturers. It’s true that standards for such communication have existed for decades—but I remember some very intense discussions a couple of years ago about the fact that the brand X fertilizer spreader didn’t want to work together with the brand Y tractor. Fortunately, that has been changing recently. Change is also afoot in the area of software. For a long time, manufacturers tried to sell solutions that were as comprehensive as possible. But farmers don’t always want to buy everything from a single source. Lately we’re seeing companies cooperate with one another—something they had refused to do for a long time. This gives me hope that the system is becoming more permeable.

Does this mean that customer needs are being identified more effectively?

Meierhöfer At least it comes down to business models that benefit not only the solution provider but also the farmer who uses a product or a software. For example, automatic steering systems make work easier for the driver—and that’s a clear benefit for operations. That also applies to milking robots, which you can find on many family-operated dairy farms today. This is also due to the fact that the robots make it easier to monitor the milk quality and thus the health status of the cows. Another very important factor is the benefit for the farmer, who can go to a birthday party on a Saturday afternoon without having to disappear into the cow stall at 5 p.m. The improvement of individuals’ quality of life, especially for family-run operations, should not be underestimated. Every technology that enhances efficiency or improves the quality of life will quickly become standard practice.

Johann Meierhöfer

Johann Meierhöfer, 51, is the head of the plant production/energy department of the German Farmers’ Association in Berlin, where he is also responsible for the area of digitalization. As an agricultural engineer, he previously worked on several large-scale farms as an operations manager or general manager. He was also the head of the Department of Agriculture of the Teltow-Fläming district of the state of Brandenburg

Johann Meierhöfer steht in seinem Büro an einem hochgefahrenem Schreibtisch.

Does this mean that in the future farmers will buy fewer products and more services?

Meierhöfer I can imagine contractors and machinery pools being interested in offering not only fertilization for fields but also optimized fertilization recommendations—as long as they aren’t too expensive.

Dörr However, in the future this kind of thing could also be handled via artificial intelligence. The farmer would then communicate with an application that provides answers adapted to his needs. If he’s sitting in his tractor equipped with a mower in a pasture, the system could provide him with relevant information such as: “You are located in a biosphere reserve, so you can only mow here from June 15 on. Please leave ten percent of the grass untouched and mow from the center outwards so that deer and small wild animals have an escape route.” Currently, I can only turn to advisors, research institutes or other farmers if my yield of wheat has remained stagnant for years and I have to struggle more and more often with early-summer droughts. But it would be fantastic if there were an AI that’s fed with all of this information! In that case I could get an answer that sounds something like this: “Farms in climate regions similar to yours, which have similar crop rotations and cropping patterns, have switched from plowing to direct sowing,” for example. I would have concrete answers and could research the situation more deeply.

Meierhöfer This is something that may happen one day. But in Germany we still lack the fundamental conditions for sharing this data and putting it to active use. Even data that are basically public are hardly ever made available to the agricultural sector in a usable form. Farmers primarily think in the long term, that’s part of their job description. But like all businesspeople, their available time and financial resources are limited. So I have to consider what can help me here and now. If it doesn’t bring me at least a medium-term effect, I won’t use it.

When consulting companies offer customized AI solutions, we end up very quickly in the business model of the big digital companies that operate according to the winner-takes-it-all principle. A company that does this well and is recommended by one farmer to another is soon the Lord of the Data—and that’s no longer the case for the individual farm. Wouldn’t that be very risky for you?

Dörr I would certainly be willing to make my production data available in an anonymized form, but I’d like to decide for myself which information I share. And I don’t believe in companies that present themselves as “full-range suppliers”. They lock the farmer into their system of technology and know-how and don’t leave him any other choice than to buy their machines, their seeds or their crop protection agents. In the USA today, there are many farmers who can no longer independently plan the use of herbicides on their land because they haven’t had to deal with this matter themselves for years. I’d like to see a system that trains the farmer and makes him more resistant instead of dependent and ignorant. I tend to see AI as a system that supports decision-making and trains me on a permanent basis.

Meierhöfer When it comes to data, we have to take a healthy middle course. It’s ultimately the responsibility of every farm owner and every business manager to say, “I would like to share this or that data set, but not this or that other one.” In Europe there will be a number of things in the Data Act and the corresponding implementation regulations that will be different from what’s going on in the USA. There I’m already observing some farmers adopting a very open-hearted attitude. If a single large company knows all the data about my farm operations, that increases the likelihood that this company will use this data to judge my creditworthiness or calculate individual prices for me. It doesn’t matter how often the company tells me that it’s not doing it.

Graphic on digitalization in agriculture in Germany

In some technologies Germany and Europe were the leaders—and were overtaken later on by other regions of the world. Are you afraid that other countries will digitalize their agricultural sector faster and put European farms under pressure?

Meierhöfer There are many factors in the area of production in which we are at a much greater disadvantage compared to the rest of the world. The fact that digitalization is not yet being used by the entire agricultural sector in Germany is not a serious regional handicap. To express it somewhat provocatively, if I’m a trained agronomist, in a pinch I can manage my farm even without digitalization. This has worked over the past 50 years, and it will work in the next 50 years as well. When it comes to the office work related to farm operations, things become more problematic. In this area I’m especially concerned about the excessive government bureaucracy. Managing it without digital assistance is becoming difficult.

Dörr I also believe that we can stand our ground in international comparisons. There’s a reason why many innovations in the area of agriculture are coming from Europe. The big agricultural technology companies are testing and developing lots of innovations in Germany, England, and New Zealand. That’s because they know that if an innovation works in Germany and these other countries, and if the farmers here are satisfied, that means it also works in other parts of the world.

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