Jeremy Wilson - Return On Investment When Using Technology And Data
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The document discusses the importance of technology and data collection in farming to enhance profitability and return on investment (ROI). It emphasizes the need for farmers to utilize comprehensive data services, including intensive soil sampling and analysis, to make informed agronomic decisions. Additionally, it highlights emerging technologies and IoT as potential tools for increasing crop production efficiency and suggests a structured approach for integrating these technologies on farms.
Jeremy Wilson - Return On Investment When Using Technology And Data
- 1. ROI of Technology & Data JEREMY W WILSON CROP IMS LLC
- 2. Questions for You • Who thinks $6.50 corn or $12.00 Soybeans will return in the next few months? • How many of you calculate the ROI on every acre of your farm? • What makes a good farmer? • Someone who understands continual improvement • Someone who strives to extract every $ of value from their land • Someone who knows more about their acre than their competitors know about their own acres • Someone who can produce a profit from the WORST acre in the county
- 3. Tools Used on Farm • Intensive Soil Sampling • VRA of all Crop Nutrition Products • Variety mapping to calculate yield by hybrid • Application data to document Crop Protection Products
- 4. Why Do I invest in Technology to Collect Quality Data • Builds history of your fields over time • Gives you necessary information for analysis and reporting • Verify results of agronomic changes • Potential to increase land value with history of high quality production
- 5. Why Should You Consider Comprehensive Data Services? • Must identify the limiting factor to yield • Could be fertility • Could be variety selection • Could be other factors Liebig’s Law
- 6. Let’s Run the Numbers • Hardware Purchases Technology $/Row $/Tractor or Implement Total Cost RTK Steering $12000 $12000 Electric Drive Planter control $2000 $32000 $32000 Down Pressure Control $1000 $16000 $16000 Yield Monitoring $3600 $3600 $63600
- 7. Let’s Run the Numbers • Hardware Sales • $63,600, 5 year useful life=$12,720 per year for planter control and Yield • Average grower 1500 acres annually=$8.48/acre/year • Data services • Intensive soil sampling and recommendations $2.50/acre/year • Training, support, data collection on displays $4.00/acre • Comprehensive data analysis $2.00/acre • Total data management package $8.50/acre/year
- 8. Planting Data Fertility Application Imagery CP Application Scouting Data Yield Data Irrigation Data Soil Data Soil Test, CE Data, Topo Data TillageData Understanding Quality Data Collection
- 9. Planting Data Fertility Application Imagery CP Application Scouting Data Yield Data Irrigation Data Soil Data Soil Test, CE Data, Topo Data TillageDataUnderstanding Quality Data Collection
- 10. Intensive soil sampling and recommendations • Why “guess” what a crop is going to produce, when we know what the crop produced in the past. • Technology on the farm today allows you to manage crop nutrition better today than ever before. • Over-application of fertilizers may negatively impact the environment. Today, it is important to utilize fertilizers in an efficient manner while ensuring sufficient soil nutrition for maximum profitable yields.(Fulton)
- 14. Yule and Lawrence (2007) reported a significant economic loss ($15-$21 acres/yr) as a result of inaccurate fertilizer application for a New Zealand dairy farm with a 24% to 80% variation for applied fertilizer.
- 18. Fertility Cost Analysis Type Tons Price/Ton Fertilizer Cost Application Cost Total Cost VRA 9 $423 $3807 $672 $4479 VRA/No Build > 70 P 6 $423 $2538 $602 $3140 Flat Rate 11 $423 $4653 $480 $5133 When you compare VRA with No Build >70P to Flat rate almost $20.00 savings.
- 19. Average Gain after Expenses on Precision Application of P and K (Corn) • 39,475 Acres of Data • $6.10 Gain / $3.90 Investment per year •$1.56 ROI
- 20. Comprehensive Data Analysis • Let data assist you in better understanding of how agronomic changes affected the field profitability • Help you quantify variability of fields • Technology allows you to conduct “in your field trials” • More years of data = More possible questions that can be asked • Multi-year dataset can only be assembled by collecting the first dataset
- 21. Soil Type Data
- 22. Yield Data to Drive Field Trial Location
- 23. Yield Data to Drive Field Trial Location
- 25. Application Data to Compare CP Products Hybrid 2
- 26. Application Data to Compare CP Products
- 27. Application Data to Verify Agronomic Changes
- 29. Planting Data to Drive Seed Decisions Hybrid 2
- 30. Planting Data to Drive Seed Decisions Hybrid 2
- 31. Management Units • Used to potentially define areas within the field to consider new management • Will provide starting point to try intense management zones
- 32. Emerging technologies that could produce ROI • “New” Sensors • IoT
- 33. “New” Sensors • Precision Plantings SmartFirmer • Veris Technologies U3 Soil EC, pH and Organic Matter cart • See & Spray Technology being developed by Blue River Technologies and others
- 34. Veris Soil pH to Management Units
- 35. More Data Points=More Learning
- 36. Internet of Things (IoT) • Basis of IoT is connecting sensor to low speed and low cost Internet connections • Companies are building new networks to connect new area of Crop Production to the web • This will bring new learning to producing crops in the future • Focused today on High Value Crops and Irrigation, but will be in Row Crops soon
- 37. One Example of Network Development
- 39. You Decide
- 40. Planting Data Fertility Application Imagery CP Application Scouting Data Yield Data Irrigation Data Soil Data Soil Test, CE Data, Topo Data TillageData Understanding Quality Data Collection
- 41. Steps to Success • Set a goal for what you hope to achieve • Take inventory of the data you collect today • Take inventory of the technology you own today and understand the data collection capabilities of this technology • Pick a field or two that you would like to improve • Make sure EVERYONE working on your farm knows you plans and goals • If you feel like you need help in this process, DON’T be afraid to ask for help
- 42. Summary • Technology and Data collection brings value to our farm and positive ROI • Don’t be afraid to consider new technology or services • Make sure the technology you purchase will bring return on investment to your farm • Don’t be afraid to partner with a Trusted Service Provide to understand the ROI of technology and data to your farm • Now is a GREAT time to start using the data you have collected to improve your profitability
- 43. Questions? JEREMY W. WILSON CROP IMS LLC Thanks for the opportunity speak!
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