Precision farming helps SA farmers make every rand work harder

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This interview was originally aired on RSG Geldsake in Afrikaans. The transcript below has been translated into English.

RYK VAN NIEKERK: Daneel Rossouw joins me now. He is the head of sales at Nedbank Agriculture. Daneel, welcome to the programme.

South African farmers are known for quickly adopting new technology. Part of that is so-called ‘precision agriculture’, which enables farmers to make better and faster decisions. What exactly is precision agriculture?

DANEEL ROSSOUW: Yes. A few weeks ago we touched on those structural changes we are seeing in agriculture – but also on sustainable agriculture. I think precision agriculture fits in very well with that.

So if we look at what precision agriculture is, I think we can talk about precision farming or smart farming.

It is essentially a modern agricultural management strategy that collects crop data, soil data and data on environmental conditions, for example, for processing and analysis which will enable a farm business or farm management to make informed decisions, as well as optimise that resource as well as the sustainability of its business.

So we see it can be applied in both crop and livestock production.

In crops, for example, it helps to manage the planting, irrigation, fertilising, and harvesting.

In livestock it can focus more on animal health, feed efficiency, and monitoring environmental conditions.

I think that, in short, is what we see around precision agriculture.

RYK VAN NIEKERK: Could you give me a case study or an example of how this can work practically on a farm?

DANEEL ROSSOUW: Yes, I think – coming from an orchard and vineyard background – it applies very well to our fruit industry, for example.

That is a combination of what is called ‘drone technology’ as well as the use of global positioning systems and even geographic information systems.

So it’s a combination, I think, of satellite data and drone data, which provides very accurate mapping of, say, orchards or vineyards in conjunction with measuring soil moisture and looking at weather station data. That all gets processed.

So you look at temperatures, soil nutrient levels, your soil moisture itself, and then with your drone technology crop health; processing all of that within a large data system to arrive at management decisions that you can possibly take, for example.

It is a very good combination, I think, of various levels or types of technologies that can be accommodated within one large management system.

Yes, ultimately it is about data, the processing and analysis of data, and then, very importantly, the practical application of that data at farm level.

RYK VAN NIEKERK: Does it increase profit margins and profitability? Do you have proof that that is indeed the case?

DANEEL ROSSOUW: That’s a very interesting question, because agriculture is about margins and managing margins.

In other words, it can indeed increase income, but it can also lower your costs, for example.

So for us it’s all about your net profit and that financial sustainability we see. So yes, I think the main goal of precision farming is precisely that – to maximise crop yields as well as improve efficiency.

But we must remember this is also across the value chain, not just at farm level, if we look at seeds, plant material and so on, which are improved further up the value chain for the farmer’s use.

But yes, I think the outcome we seek is precisely to reduce waste and promote environmental sustainability along with it.

So, to answer your question, we definitely see it in increased productivity, the precision use of water – especially in terms of irrigation, fertilisers and pesticides – applying exactly what is needed where it is needed.

And also being able to limit movement within your orchards or fields.

So we do see it. I think it is a process; you might not see massive benefits or improvements year after year, but we definitely see it over the long term. I think if someone isn’t doing this today, the environment is simply changing too fast and we have to adapt.

RYK VAN NIEKERK: It must be expensive to put these systems into operation on a farm. How should farmers and producers approach the financing?

DANEEL ROSSOUW: We always say you don’t immediately need a Rolls-Royce in terms of the data or technology that you use on your farm or in its business. Every little bit you do helps.

So it’s really about looking at that 20% of what you can do that will give you 80% of the outcome.

I think on the financial side we also try to be a partner in our clients’ businesses, giving advice where we think necessary and where we can offer advice – not just in terms of financing, but also in looking at your business structures, for example, and what can be accommodated within your own farm’s financial circumstances.

We look closely at innovation and sustainability, so we try to offer very innovative financing solutions that are client-specific – precisely to adapt to those climatic challenges and market volatility we see – and apply those within a resilient environment.

So yes, that is what I think is very important for a financial institution as a partner.

And then, of course, it’s about forming partnerships with other businesses regarding sustainable growth – such as around new irrigation technologies, renewable energy, and even implements and equipment; basically to be part of the value chain on the financier’s side to the benefit of the producer.

RYK VAN NIEKERK: Daneel, thank you very much. That was Daneel Rossouw, head of sales at Nedbank Agriculture.

Brought to you by Nedbank Agriculture.

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