July 2002
Greg Blumhoff and Chris Johannsen
The 2002 Precision Agricultural Services Survey prepared by Linda Whipker and Jay Akridge, presented both the ups and downs of current precision services and technologies. A recent addition to the survey (2001, 2002) includes the use of satellite imagery in site-specific management. The survey results concluded that remote sensing was the least profitable among precision services currently offered by agricultural professionals. However, it is important that the technology was included and considered a viable application or service offered by current agricultural professionals. The survey labeled this service as "satellite imagery", which does not specifically address the inclusion of photography and imagery acquired by aircraft. Although the survey results appear a little negative on remote sensing, a look at the data from the 2001 survey may be more informative.
Comparison of 2001 and 2002 responses presents a more accurate picture (Table 1). According to the results, the profitability of imagery has increased substantially in the past year. The number of retailers who responded with "Don't know" or "Does not cover costs", has decreased significantly. The profitability of any technology is governed by the variable
Table 1. Profitability of Satellite Imagery for U.S. Ag Retailers.
Response 2001 2002
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Don't know
55
19
Does not cover costs 13 10
Covers variable costs 8 33
Covers var. & fixed 13 14
Makes a Profit 11 24
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Source: Whipker and Akridge, 2001 & 2002
and fixed costs associated with its usage. According to the 2002 survey, there is a lack of information to support the investment and identification of direct revenues from the use of remote imagery. One possible solution to this problem involves the development of actual remote sensing applications and identifying multiple uses for a single piece of data. Common to other precision agriculture technologies (i.e. yield monitoring), a lack of information on the "How to use....?" and "What to do....?" has limited its adoption. One important aspect of site-specific agriculture is that it is site-specific. Not all precision technologies may work on a given farm or business.
Consider, for example the application of remote sensing for
crop scouting to guide the use of post-emergence pesticides. There are both
aerial and satellite-based image data providers to choose from. When
considering practical application by growers and/or consultants, one should
keep in mind that they may have different objectives driving economics. The
farmer could apply remote sensing technologies in their own farm management
applications, while a consultant may invest in this information to develop a
client-base.
This
has practical implications on what types of data to invest in. Direct purchase
of satellite-based image data may not be feasible for growers due to high
costs, minimum order requirements, and image data coverage area. Although one
or 2 satellite scenes may cover a growers farm (commonly have farm ground
scattered across several miles), the expense also includes data on other farms
which may limit its economic value and the feasibility of multiple data
acquisitions for monitoring crop growth throughout the growing season. Aerial
data may be the solution for growers. Several image data vendors that acquire
data via aircraft can specialize in individual grower operations and provide
data only over their farm (costs are on a per acre basis).
Consultants
may find satellite data worth the investment. The area covered by a single
image data set can be used to identify new clients and accommodate existing
clientele, while providing a large-area monitoring capability. Thus, an ag
retailer or crop consultant can distribute parts of the satellite image to
individual producers at an affordable cost. In effect, the consultant would
have multiple uses for the same data set versus an individual farmer interested
in the area covering their farm. Direct purchase of aerial-based data may not
work for Ag professionals who are looking for business which must be identified
quickly given the timeliness of crop growth conditions from week to week. With
the data already in hand, the consultant can identify a client, get a basic
understanding of their field conditions, and provide a near-real-time product
for sale. In the aerial-based case, the consultant must identify clients,
upload farm dimensions, and then place an image data acquisition order.
Several
researchers at Purdue University are working to find solutions for these problems.
If you would like to find out more information related on the how and what to
use remote sensing, please search our website or contact related faculty. The
SSMC website contains a "Related Links" section that includes several
aerial and satellite-based providers. Also, follow the "Data" link to
search the LARS and CAAGIS websites to for more
information related to remote sensing and data sources.