Now, financial technology has emerged as the latest tool to help production agriculture access new opportunities and achieve greater success. FinTech, as it’s often called, is part of the digital revolution that’s changing how the world operates. The rise of “The Internet of Things,” with expanding interconnectedness and cloud-based software, is fueling unprecedented access to data.
That revolution has set the stage for bringing financial technology to American agriculture. With this technology, businesses can seamlessly capture and integrate detailed layers of their operations, allowing them to interact with their financial and farming information in ways they couldn’t before.
Technologies farmers will invest in over the next 5 years
- Farm management software
- Precision farming tools
- Autonomous equipment
- Remote crop and herd monitoring
- Carbon capture/carbon sequestration
- Enhanced crop traceability
This newest transformation comes as producers and processors face increased challenges, often beyond their control. External factors affecting U.S. agriculture include trade wars, climate change, the COVID-19 pandemic, supply-chain disruptions, emerging foreign markets, and geopolitical developments. On top of those are continually rising input costs, growing inflation, and labor shortages.
Also gaining traction are shifting consumer trends, such as food preferences. Buyers are increasingly interested in animal welfare practices and policies supporting environmental stewardship. Many retailers now want the ability to trace crops and promote organic, locally grown, or specialty products.
These challenges make it clear that farmers, ranchers, and processors face pressures on all sides. Margins continue to shrink or are at risk. Losing a couple of cents per pound to input costs or market pricing can make or break a farming season. These realities point to both challenges and opportunities for U.S. agricultural businesses. And they underscore the need for more detailed farm management data to make better decisions.
Contact a KCoe advisor to discuss farm management data solutions or click here to learn about KCoe’s Pinion IO solution — providing farmers the help they need…from managed accounting data to financial farm management.