Data A Conversation with EFC Systems' Ernie Chappell
The agriculture industry continues to become more highly connected via a network of sensors, monitors, equipment, and systems that capture massive amounts of data. Harnessing the actionable insights and decision-making potential of that data is where the real power lies, however.
Recently, EFC Systems’ President and Founder, Ernie Chappell, shared his comments on how timely and quality data is fundamentally changing operations for ag retailers and grower customers.
CropLife (CL): What are the limits of big data and how can we leverage it for greater value?
Chappell: We talk a lot about mass quantities of data, but it’s really about quality. The right information, on the right device, at the right time. Quality is also about timeliness, which supports better decision-making.
CL: Can you offer some examples?
Chappell: Costs are a constantly moving target. If we’re talking about inbound inventory, most systems [ERP, or enterprise resource planning software systems] are doing perpetual inventory costing, and [for the end user] knowing inbound costs as they’re changing — upward or downward — can affect pricing decisions. It’s similar with ag credit. The most effective systems rely on up to the minute information around credit exposure, actual costs of inventory and quantities, and net available, which helps point to the right decisions.
Quality is also about timeliness, which supports better decision-making."
On the digital agronomy side, quality information can tell you where equipment and machines are and their efficiency levels, as well as insights about the time and use of products in the field. A lot of information is collected from equipment, such as harvest information, which can help generate more accurate farm plans. We don’t want to pore over data that was collected three months ago; we want to make use of it now. It needs to be actionable. It also needs to be collected passively [by equipment and machines, for instance], rather than keyed in by a person.
CL: What are some other benefits for the growers?
Chappell: We’re empowering ag retailers to better serve growers, to keep them more informed and to put tools in their hands. For example, a grower can use an app to find out right away when a load went to town, and the moisture on it. Furthermore, the grower knows if his retailer is doing an application at 2:00 p.m. today, rather than 10:00 a.m., or if a weather system is coming in and he needs to do something immediately instead of waiting, that type of thing. This is immediacy of information around the things that you can execute on. Growers have an expectation for real time — they want engagement, and they want the most current information.
CL: How else is technology helping ag retailers and growers focus on what’s most important?
Chappell: Imagery is a good example where technology can help leverage information. We don’t need to review every image that comes in, just those that need attention. If Mr. Grower has 72 fields, technology can identify the three that he needs to take a look at right now.
Growers also expect to be kept more informed. They’re saying, “Tell me what you’re doing,” and “I want a better understanding” if the ag retailer is changing a recommendation on a field, for instance.
Data and insight are really the magic that provides focus and guidance.
CL: You also mentioned labor and the changing demographics in the workforce. Is the younger generation helping facilitate the adoption of technology?
Chappell: Yes. I think they have a good sense of the importance of data. There’s also more interest around sustainability, traceability, carbon markets, and all of that is going to be supported by data.
CL: It sounds like there are some positive impacts for the food supply chain.
Chappell: Data and insights provide a more complete story, a complete set of records. This can help get a better price for your crop. Or in some markets, if you want to sell your crop directly to the food chain, the potential buyer may not even want your crop if you can’t document how it was grown. Regulatory mandates may also require this type of documentation.
CL: What about further up the supply chain?
Chappell: We’re seeing a significant pivot towards farm planning; creating a spatial-based farm plan for every field. We have ag retailers who are doing this for their growers. Just think about how that helps inform the retailer on product needs. For instance, it’s late in the year, October or November, and the retailer has hundreds of farmers, and they have spatial farm plans, so now the retailer knows what they’re going to grow, what the crop inputs are going to be, so this helps the ag retailer provision what they need. This even goes further up the supply chain and helps manufacturers understand what they need to know and gives them more information to drive efficiency.
CL: Where do you see room for improvement with regards to data and getting even more insights from it?
Chappell: Today, we’ve got a good ecosystem of data. However, we’re trying to move the needle with regards to “What else can we learn about?” and “Where else can we inform?” to ultimately help drive better decision-making. We are collecting more data, and it’s higher quality, and there’s more interoperability, but we’re still in the early stages of extracting actionable insights from it. This is where I think we’re going to see the most progress, and it comes down to doing even more with data, like benchmarking.
