Precision Pays

Farmers Edge Precision Consulting based in Winnipeg, Manitoba has become a fast-growing business helping farmers cut fertilizer costs and increase profits. The two agronomy experts who started the company just received an entrepreneur award, according to a report in The Gov Monitor.

Farmers were so impressed with an innovative crop fertilization service developed by Curtis MacKinnon and Wade Barnes that they urged them to take it to market, giving them the push they needed to strike out on their own. Since that initial start four years ago, Farmers Edge Precision Consulting has become a fast-growing business that is helping farmers across the Prairies and as far away as Russia improve their practices and profits. For this success, Wade, 34, and Curtis, 33, have won BDC’s Young Entrepreneur Award for Manitoba.

Farmers Edge helps take the guesswork out of farming. It combines remote sensing equipment and technology to redefine how farmers apply fertilizer to their fields to increase crop yields. The business is helping grain and oilseed farmers increase their profits by $15 to $100 per acre, while contributing to a 15 to 25% decrease in fertilizer application. Now covering 750,000 acres across the Prairies, Farmers Edge has grown to 10 management partners, 34 full-time and 11 seasonal employees, along with 17 consulting partners who are re-sellers of the services. Farmers Edge has just opened its own soil-testing laboratory, has taken its concept to large corporate farms in Russia and is constantly exploring new ideas.

“Before we got started, I was working in the fertilizer business, where research had been done on variable rate technology, but no one had found a way to make it viable,” explains Wade. “Then I started working with Curtis, who is gifted in technology, and together we decided to reinvent the wheel.” Wade hit on the idea of using remote sensing to map out the varying fertilizer needs throughout a field, and Curtis found a way to make fertilizer machines vary their output according to that map. When farmers saw what Farmers Edge could do, the service sold itself.

The two agronomy experts attribute the fast growth of Farmers Edge to the talented team and the unique ownership model they have put in place. That includes a design whereby territory managers take equity in the company. “We have been fortunate to find key people who share our drive,” says Curtis. “That has allowed us to keep growing and expanding.”

Curtis and Wade see expansion as a way of reducing risk. “Agriculture is so influenced by weather that if you are regionalized, one weather disaster could virtually wipe you out,” explains Wade. “Expanding into other regions reduces that risk.” They’re also always on the lookout for possible new ventures. “We’re very quick to seize opportunities. If we have an idea, we chase it.” That led them to Russia in 2006. Since then, Farmers Edge has been developing business in Russia and the Ukraine, tapping into the large corporate farm market.

As an Iowa farm kid who grew up loving technology (I just chose to write about it and let my brother run it on the family farm), one of my passions is talking to farmers about their technology adoption—so I can learn and write stories that help others. And over the past 28 years of covering the incredible advances we’ve all seen, the stories I’ve heard are amazing, and sometimes funny.

Yesterday I spoke with Tim Norris, owner of a successful central Ohio precision technology business called Agronomic Information Technology, based in Gambier. Norris has more than a dozen years experience installing and helping farmers and custom applicators adopt a complete range of precision farming products—from basic lightbars and excellent monitors like Ag Leader’s Insight, to complete auto steer and RTK-guided systems. Tim is an Ag Leader Master Service Dealer, and he also sells Trimble, Tru Count air clutches, Norac auto boom height controllers, Rawson controllers and Orthman strip-till systems.

I called him to talk about how he helps growers adopt the most cost-effective precision technology, especially for those just starting out. He quickly related two ‘rookie’ stories. “One individual, when I first met with him, told me flat out ‘if I ever have to have a machine drive my tractor, I’ll quit farming.’ A while later, he agreed to demo an EZ Steer. Well, needless to say, he’s still farming—only now he has four tractors that steer themselves,” he laughs.

“Another customer, who absolutely hates computers, didn’t want anything to do with this technology—except his son wanted a lightbar, so he bought one. After awhile, he borrowed the unit from his son and put it in his fertilizer spreader. Well now, the son is complaining because he can’t get the lightbar back from his dad. He liked it so well, and realized how much fertilizer he was saving by not overlapping, he kept it,” Norris says.

His advice to novices regarding tech adoption—get a plan and research the products. “I’ve seen too many growers who buy a piece of technology on price alone, use it for a year or two, then learn that they cannot upgrade the lightbar or the type of GPS signal. “The first step, figure out what tasks you want to do first, then write down what capabilities you might want in the future. And seek advice from a variety of experienced sources, like other farmers, dealers you trust, service providers and others,” he adds. “The main thing, find a dealer you can trust and feel comfortable with—one that has your best interest at heart. And talk to growers who have used their precision farming services.”

We talked through some examples of how different growers might think about their precision technology plan. “You have to think—where do I have the potential to save the most money? What practices will work best?

Example 1: Small farmer – “This person may make more money on investing in grid soil sampling to start out, because he may save a ton of money on lime, and save some on fertilizer input costs. His yields will go up in areas where they would not if he continues to blanket-apply nutrients.”

2: Strip-tiller – “Perhaps his money will best be spent on RTK signal, because auto steer and RTK will deliver the seed exactly where the fertilizer was placed, to ensure quick and even emergence.”

3: 2,500-acre planter guy – “He might get the most net return on money spent by adding individual point-row clutches. Especially for growers pushing higher populations of 34 to 36,000 and beyond. Not only do they save 3 to 4 percent in seed costs, they also eliminate the 50 percent yield loss in those double-planted areas.”

4: No-tiller – “Perhaps he doesn’t need an RTK signal as he doesn’t need to plant precisely in an exact spot (like strip-tillers need to do). If he’s in an area that gets the Omnistar signal, he can save money there.”

Check out Tim’s website for more information: http://www.aginfotech.net/

Does your precision technology provider deliver good information to you in methods beyond direct contact or a Website?

A good lesson regarding customer service and expanded ways to connect with customers comes from precision agriculture solutions provider HTS Precision Ag, based in Harlan, Iowa.

For example, check out their blog called “Precision Ag Explained,” where Adam Gittins posts weekly insights on products, issues and even his attendance and talk he gave at the recent precision agriculture conference InfoAg.

This week, Gittins talked about Trimble’s new Ag 3000 cellular modem, used to connect to a VRS or CORS network for RTK corrections — a product he tested and wrote about in a previous post. And he mentioned the company’s True Guide, which correct implement drift. Another post talks about Ag Leader’s commitment to training customers and prospects by breaking ground on a new training center. And still more posts highlight their own training sessions and ride & drives.

Not only does HTS blog, they are also using a Facebook fan page (where you can even RSVP for training sessions if you are a Facebook member) to connect with users on that social media site. And they also have an updated Website where they also connect with customers using an email newsletter.

HTS offers solutions to growers from Ag Leader Technology, Trimble Navigation, Norac, Garmin and Wilson Electronics. They serve growers in portions of Iowa, Kansas, Missouri, Oklahoma and Nebraska.

At this week’s 3i Farm Show in Garden City, Kansas, several farm retailers report continued confidence by farmers in the value of precision farming tools, according to a story in The Hutchinson News.

“Farmers are buying technology and new concepts of innovation,” says Greg Brenneman, marketing director with Salina-based Great Plains, noting that innovation “has always been a cornerstone at Great Plains.”

Mike Zimmerman, sales manager for Lang Diesel out of Hays, says that while the agriculture economy has slowed after an extraordinary year in 2008, he expects to see plenty of visitors interested in updating equipment or precision agriculture systems.

January and February were dry months for farmers and slow for his industry, he said. When rain started falling in April, the pace picked up.

“We’re selling quite a few tractors and combines,” he said. “It’s a lot better than we thought.”

Come August, John Deere Ag Management Solutions (AMS) and Raven plan to combine technologies and offer a broader suite of precision application control solutions to growers.

“We’re targeting this August to combine technologies from John Deere and Raven. We’ll be able to offer an expanded line of universal solutions to customers through our John Deere dealer network,” says Nick Block, business development manager for John Deere Ag Management Solutions.

Now customers in the U.S., Canada, and Australia will be able to purchase select Raven application control products at John Deere dealerships.

Matt Burkhart, general manager for Raven’s Applied Technology Division, says customers will ultimately be the biggest beneficiaries of the agreement.

“Both companies share a common focus to provide customers with market-leading, innovative products, plus offer exceptional support for those products,” Burkhart says. “By offering Raven products through John Deere dealerships, we can reach more customers with compatible solutions that help them improve their farming operations,” he adds.

“These complementary products will enhance both of our companies’ positions in providing precision ag solutions,” Deere’s Block explains.

Ask any grower who is succeeding with the various tools of precision agriculture, and you’ll hear about the importance of the local dealer’s field technician–such as John Deere’s AMS Technician program.

For anyone interested in this growing job field, check out Oklahoma State University’s Institute of Technology, which offers a two-year Associate in Applied Science degree in Precision Agriculture Technology.

Graduates from the new program will be prepared for a higher level of agriculture, in which most new jobs require skills in GIS, GPS, and remote sensing in addition to the familiar disciplines of agronomy, plant science, and agri-business.

OSU Institute of Technology students will be learning to use GPS and GIS technologies to provide detailed information to farmers on their crop’s health status, irrigation and fertilizer need, plus warn of attacks by insects or weeds.

OSU Institute of Technology’s program is designed to meet the needs of two types of students: those who want to earn an associate’s degree in agriculture with high employment potential; or those who want to complete their first two years of an agriculture degree, then transfer to OSU’s Stillwater campus to earn their bachelor’s degree.

To learn more about this program, check out the information guide.

Similar in scope to the overhaul of a tractor, John Deere has completely overhauled and redesigned its MachineFinder.com website. It is now easier than ever for customers to find and review pre-owned equipment…including precision agriculture technology.

“MachineFinder not only provides improved user interfaces, but new functionality that will better assist customers in acquiring used equipment from John Deere dealers,” says Michael Gause, division manager of John Deere Remarketing Services.

The redesigned MachineFinder includes features such as Google Maps to view equipment location and obtain one-step driving directions, detailed gallery views for higher quality equipment photos and comprehensive equipment information. The site offers more accurate browse-and-search functionality, which improves the overall usability goals for the MachineFinder website.

Several other new features round out the improved functionality of the site. One feature is integration with uShip.com (www.uship.com), an online shipping marketplace with a network of specialized tractor and heavy equipment haulers. The uShip integration on MachineFinder provides customers with the ability to obtain immediate shipping cost estimates and receive competitive bids for transporting equipment purchased through MachineFinder.

If you register a profile, you can save selected equipment, searches and user settings. Plus you’ll also find news and blogs, plus a connection to John Deere Credit to check out financing options.

And don’t forget these other valuable links:

- View Operator’s Manuals and Parts Catalogs

- JDParts – Your Online Connection to Your Dealer’s Parts Counter

Like farmers, more retailers are using their steering wheels less this past year–without going in the ditch!

Survey says…adoption of auto guidance grew from 27% use by retailers to 37% in 2008. Other growing precision technologies being applied for customers include GPS guidance using lightbars, satellite/aerial imagery, field mapping with GIS for legal/billing/insurance purposes, and GPS for logistics uses.

When asked how they see farmer use expanding in the next three years (percent of acres in their retail area), survey says…

• soil sampling w/GPS will grow from 27% to 44% of acres
• field mapping w/GPS will grow from 27% to 46%
• variable seeding w/GPS will grow from 5% to 18%
• variable fertilizer w/GPS will grow from 20% to 38%
• satellite imagery will grow from 9% to 20%
• lightbar guidance w/GPS will grow from 35% to 50%
• auto guidance w/GPS will grow from 15% to 33%
• yield monitors w/GPS will grow from 22% to 42%
• yield monitors w/o GPS will grow from 26% to 32%

These facts, and plenty more, came from the 13th annual survey by Crop Life magazine and Purdue University’s Center for Food and Agricultural Business. Over 275 U.S. retailers responded. 

For some light winter reading, check out the entire 55-page report here 2008 dealership survey. You’ll also discover their opinions on barriers to growth and expansion, as well as how they see their role with manufacturers and customers.

Farmers wanting to ease into precision technology have new equipment options from John Deere. The ag machinery company has unveiled three new products within its GreenStar line. John Deere says the GreenStar Lightbar, GreenStar 2 Display 1800 and the StarFire 300 Reciever are meant to help operators get started with precision farming. The new gadgets can also help enhance older systems. John Deere has launched its SeedStar 2 monitoring system.

The GreenStar Lightbar offers 27 tracking LEDs to guide the farmers operating precision steering systems in the field. John Deere says operators should steer their tractors based on what lights illuminated. Green means you’re on track. Red means you’re not. Each red light means operators are off by four inches.

Farmers looking for a little more pizazz, but still want a tool that’s easy to understand should consider the GreenStar 2 Display 1800. The new, 7-inch display features state-of-the-art, full-color screens meant to help farmers manage GreenStar applications. The display can be used for AutoTrac and on-screen mapping.

If growers are looking for a new receiver for their GreenStar systems, John Deere’s new StarFire 300 should offer them an economical option. The satellite WAAS receiver boasts 13-inch accuracy and mounts easily with a magnet.

The SeedStar 2 monitoring system combines what used to be on two monitors down into one full-color display. The system can be used on planters and air seeders to help growers improve accuracy and cover more acres in less time.

I spoke with Kim Fletcher, Marketing Representative with John Deere Ag Management Solutions. You can listen to the interview here:
Kim Fletcher, Marketing Representative for John Deere AMS talks about new GreenStar products and SeedStar 2

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AutoTrac guidance is no longer just for tractors. Farmers can now use assisted steering technology on combines. John Deere‘s AutoTrac RowSense gives growers the ability to use precision guidance on the combines for harvesting corn. Mechanical feeler data from new row sensors located on the corn heads are integrated with GPS data from John Deere’s StarFire Receiver to give growers tighter steering control. RowSense can manuever around curves, through waterways or through weedy areas.

This spring farmers can harness “technology for efficient planter row control” with John Deere’s new RowCommand. The new technology lets farmers efficiently plant on the go with automated control. John Deere says the RowCommand will help growers reduce their seed input costs while also eliminating yield drag associated with double-planting. RowCommand can help growers reduce overplanting in point rows, John Deere says, while also helping them maximize placement .

I spoke with Ag Management Solutions Marketing Representative Kim Fletcher about the RowSense and RowCommand. You can listen to the interview here:
Kim Fletcher, Marketing Representative for John Deere AMS talks about RowCommand and RowSense

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John Deere has recently announced that it’s offering a slew of different precision agriculture products. Some are available now and others are scheduled to be released in the spring or fall of 2009. Kim Fletcher, Marketing Representative with John Deere Ag Management Solutions has been hosting several live presentations showcasing many of the new products and some old favorites at the 2008 Farm Progress Show John Deere exhibit. I managed to grab video of one of her presentations. Check out the video below. I’ll also be posting a couple interviews with her about the products in the next few days.

John Deere RowCommand: New Technology for Efficient Planter Row Control
John Deere AutoTrac RowSense
John Deere GreenStar Lightbar, GreenStar 2 Display 1800 and StarFire 300 Reciever
John Deere SeedStar 2 Monitoring System
John Deere iGuide
JDLink

John Deere Precision Ag Products from Laura McNamara on Vimeo.

The 2008 Farm Progress Show is just around the corner. Both Chuck and I will be on-site providing constant updates throughout the event, August 26th through 28th. I’m sure we’ll find plenty of information on precision agriculture, so be sure to check back here for the latest precision farming news from Boone, Iowa.

The show is boasting the following for participants and visitors:

• Field demonstrations: harvesting and tillage
• Ride ‘n Drive
• New product introductions
• GPS display and demonstrations
• Seed and crop technology plots
• Marketing seminars
• Cattle handling demonstrations
• Equine events
• Antique tractors and equipment
• Crafts and collectible farm toys
• 75-acre exhibit field featuring hundreds of top agribusinesses from around the world

Bottom line: John Deere wants consumers to truly master new products and technologies the company offers. That’s why John Deere’s Ag Managment Solutions has developed its Dealer-Consultant Strategy. The strategy is simple: have an AMS expert available to dealerships nationwide. In some cases its an expert or two. Mark Theuerkauf says the Dealer-Consultant strategy is a unique channel of expertise and is an invaluable too for dealers and customers of AMS products. He says such a support system is necessary for a technology that is still considered relatively new. Mark says there are currently 270 AMS consultants throughout the country.

Chuck interviewed Mark about AMS’s Dealer-Consultant Strategy. You can listen to Chuck’s interview here: Mark Theuerkauf Interview (5 min. MP3)

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John Deere’s Ag Management Solutions really wants to provide solutions… not just for its customers, but also for its dealers and consultants. That’s why AMS developed its Masters Program. Mark Theuerkauf is with Deere AMS and he says the Masters Program is a program that’s specifically tailored for dealers who want to focus on new AMS products being released to consumers. Theuerkauf says the two and a half day program allows dealers and consultants to experience new products during live demonstrations out in the field. The program is held in Corpus Christi, TX and has grown to more than 400 attendees.

Chuck interviewed Mark about the AMS Masters program. You can listen to Chuck’s interview here: Mark Theuerkauf Interview (5 min. MP3)

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John-Deere just released its latest design in its AutoTrac Universal system. The ATU 200 was shipped out to dealers in March and should now be available to consumers nationwide.

Chuck spoke with John Deere’s Kayla Reynolds about the new ATU upgrade. You can listen to Chuck’s interview with Kayla here, where she talks about the improvements John Deere made with this latest version. Kayla also confirms that ATU 200 is compatible with any AutoTrac system including GreenStar, GreenStar II, StarFire, StarFire 2 or StarFire RTK: Kayla Reynolds Interview (4 min. MP3)

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