Precision Farming Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Precision Farming Industry

An ESG approach is one that focuses on the impact on the environment and wider society of the issues traditionally associated with sustainability or corporate responsibility.

Farmers have taken great care to protect our lands and our environment for generations, yet the growth of our population and the ensuing food demand have weighed heavily on our environment. The agriculture sector contributes as much as 17% of global greenhouse gas emissions. By implementing new and existing technologies, farmers are increasing productivity and reducing environmental impact.

A precision agriculture system uses technologies to maximize eco-efficiency through efficient use of land, water, fuel, fertilizer, and pesticides. In essence, precision agriculture reduces both costs and environmental impacts. Precision agriculture aims to maximize the returns on inputs while conserving resources. It is an integral part of modern Best Management Practices (BMPs) for citrus production and environmental conservation.

Despite contributing less than 5% to global GDP, agriculture employs more than 25% of the world's workforce. As the world's population grows, farmers must provide livelihoods, protect the environment, and feed the growing population. Technologically driven farming will boost productivity through sustainable practices.

ESG Trends

A sustainable agriculture system is no longer an option; it is necessary. In ESG Precision agriculture is of great importance to achieve sustainable agriculture. Agriculture remains a vital industry in the lives of billions of people around the world. However, sustainable agriculture has great significance for farmers, agribusinesses, and society at large. Sustainable agriculture requires more than just input substitution. It requires enhanced management that fosters sustainability, nourishes the environment, improves the community, and benefits the individuals who depend on agriculture to live. These can help achieve the United Nations’ Sustainable Development Goals (UN SDGs) such as SDG 2: Zero Hunger and SDG 3: Good health and well-being.

With precision methods, producers become familiar with agricultural products and know what pesticides, herbicides, and fertilizers they need to use for their crops. As a result, waste is reduced, and environmental loads are minimized. Water and seed resources are also not overused. This helps companies operating in the precision farming Industry to achieving SDG 12: Responsible Consumption and Production.

A sustainable agriculture contributes to the social as well as environmental factor in ESG by reducing the hunger and poverty in modern society, as well as the improving the lifestyles of farmers and the community at large. Precision agriculture benefits the environment by reducing the amount of inputs applied, by reducing losses from excess applications, by reducing nutrient imbalances, weed escapes, insect damage, and other losses. In addition, pesticide resistance can be reduced.

The focus of precision farming used to be solely on technology, but it has now evolved into a technique that is well regarded for farm management. Through the use of factual records, finely managing intricate and varied types of farmlands is achieved by maintaining soil fertility, increasing crop yields and quality, and reducing the environmental load.

ESG Challenges

Although precision farming is a sustainable industry, there are many challenges that they face, including the lack of connectivity in rural areas. As many agro sensors/gateways rely on cloud services to transmit/store data, cloud-based computing must also become more robust. Furthermore, communicating smart farming to farmers, and introducing them to the tools/devices involved in it, is even more challenging, and its importance to the smooth implementation of work cannot be overstated.

Many articles have already been written about smart agriculture's environmental benefits (precision farming is more environmentally friendly). It is possible, however, that the use of powerful data centers and gateways/hubs to operate the smart sensors and other gadgets will consume a tremendous amount of energy and require more resources to replenish that energy. There has been some progress in developing farming technology platforms that do not deplete resources too much, but there is still much to be done.

Growth of the Precision Farming Market

In 2021, precision farming market was valued at USD 6.96 billion, and between 2022 and 2030, it is expected to grow at a 12.8% compound annual growth rate (CAGR). A growing number of farmers are using advanced analytics as part of their precision agriculture practices because of the Internet of Things (IoT) and the proliferation of advanced analytics. Data science involves using a variety of tools and methods to forecast data and ensure that crops and soil receive adequate nutrients. As a result, farmers can plan their actions accordingly.

Scope of the Precision Farming Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Companies in this theme

    • Ag Leader Technology

    • AgJunction, Inc.

    • CropMetrics LLC

    • Trimble, Inc.

    • AGCO Corporation

    • Raven Industries Inc.

Key Benefits of the Precision Farming Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the precision farming Industry, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment