Earlier this year, we wrote an article on technology as a value driver, published in Magma – a Norwegian scientific journal on business and leadership. The article describes how technology can act as an important contributor to value creation, both in terms of increased revenue and reduced costs. We used an example from the agricultural sector to provide insight into how analytical techniques can help optimise value creation in projects.
The example was partly based on various issues co-author and farmer Lars Ola Grønlien Østmoe has assessed on his own farm: Which technologies for precision farming are most promising and how quickly should they be implemented? Can the experiences from technology implementation affect other investment decisions such as leasing more agricultural land, design of operational buildings, choice of energy solutions and the need for a grain drying solution?
The first steps have now been taken and GPS-steering has been implemented on the agricultural machinery. This has resulted in more precise driving, faster turns, less pressure damage to the soil and reduced use of fertilisers and pesticides. Implementation of GPS-steering represents one of the option elements described in the Magma article , which allows the experience from the the new technology to be used to optimise subsequent decisions, thus increasing expected earnings and reducing the downside.
Further steps have also been taken in planning the new agricultural building. Considerations related to grain prices and the need for a grain drying solution is essential in this regard. The grain price obtained varies with delivery time, quality and grain humidity. The grain can be delivered directly from the field, but this can result in lower prices due to grain moisture or other quality issues. In order to obtain a higher price for the grain, one option is to dry the grain and potentially store it to gain a surcharge by optimising the time of delivery. If you have drying- and storage facilities, this will provide more flexibility during the treshing period, which has value in itself and may lead to increased earnings.
Various sensors that can be implemented and used in conjunction with GPS-steering will be evaluated throughout the autumn and winter. There is considerable potential for economic and environmental gains through lower consumption of fertilisers and pesticides, increased production and higher quality crop. Further work is being done on qualifying Rennebubjelken for the construction of the operational building to ensure maximum flexibility in future use. Environmental sustainability is also an important element in this regard.
Feel free to contact us to hear more or share your own experiences from technology implementation and precision farming!