AMR Future Brief| How Can the Introduction of AI in Agriculture Improve Farmers' Real Income in Developing Countries?

Agriculture is still one of the most important sectors in the economy for many countries. It accommodates a huge chunk of the workforce and contributes significantly to the national GDP. However, in the past few decades, agriculture and allied activities have become unprofitable owing to a number of reasons. For example, in India, the adoption of advanced technologies is minimal; farmers still rely on traditional methods of plowing, sowing, and harvesting which not only brings down the productivity of the land but also reduces the income of the farmer in the long run. This is evident from the fact that Indian agriculture has the problem of disguised unemployment wherein more people are employed in the sector than what is required to achieve maximum output. In India, around 40-45% of the workforce is employed in agriculture and allied activities, while it contributes only 18-20% to the country’s GDP.?

Introducing AI in agriculture to increase the productivity of the farmlands?

Agricultural experts across the globe have highlighted that one of the surest ways to tackle the problem of disguised unemployment and increase the productivity of land in developed countries is to adopt cutting-edge technologies. In the past few years, with the advent of advanced technologies like Artificial Intelligence and machine learning, experts have recommended the introduction of these innovations in the agriculture sector.?

The most basic advantage of using AI in agriculture is that it helps farmers and cultivators to make data-based decisions. Predictive analysis models developed using AI-based tools and machine learning algorithms help farmers understand the supply-demand forces and analyze the market prices. These tools can also aid in weather monitoring and forecasting and use the data to provide information on optimal periods for sowing and harvesting. Furthermore, cultivators can check the soil profile and health using these technologies and decide upon the amount of fertilizers that should be added accordingly.?

Another important advantage of using AI in agriculture is it helps achieve the goal of precision farming. Precision farming or agriculture refers to the application of precise amounts of fertilizers, pesticides, water, etc., at the appropriate times to maximize crop output and increase the profit margins of the farmer. Precision agriculture offers an ideal solution in developing countries for two main reasons- the natural resources necessary for agriculture like irrigated water are scarce and the input costs required for farming are too high.?

A study by the World Economic Forum has shown that the introduction of AI in agriculture can reduce the requirement of chemical pesticides by around 60% and that of water by 50%. Artificial intelligence, along with robotics and automation, helps in effective weed and pest control and thus cuts down the use of pesticides by more than 80%. For example, in March 2022, John Deere’s subsidiary, Blue River Technology, announced the launch of a weed control machine called See & Spray? Ultimate. Using data analytics, machine learning algorithms, and computer vision technology, the equipment is able to distinguish between crops and weeds, and thus apply herbicides accordingly.?

Increasing the profitability of agriculture and allied activities using artificial intelligence?

Along with improving crop output and farm yields, AI can also play a critical role in increasing the profit margin of the farmers engaging in allied activities like animal husbandry. Conventionally, animal husbandry has been a labor-intensive sector with manual laborers being employed for various activities including livestock health monitoring. Manual checking of health indicators can result in irregularities and inaccuracies, which could negatively impact the productivity of the livestock.?

Hence, AI-based tools like advanced image recognition and sensor-based technologies are now used for real-time monitoring of livestock health and behavior. These solutions enhance the quality of health monitoring and offer early disease detection functionalities. Furthermore, in case the health of livestock is not at its best, these tools can recommend diets and nutritional supplements to improve their medical condition.?

In summary??

Winding up, in many developing countries, the agriculture sector faces unproductivity, disguised unemployment, and high input costs. As a result, the income of farmers in these countries is quite low. To overcome these issues, agricultural experts have recommended the introduction of artificial intelligence and machine learning which is expected to help farmers make data-based decisions. Furthermore, these technologies can also aid in real-time health monitoring of livestock, thereby improving the overall income of farmers.??

For more analysis into the investment opportunities offered by the AI in agriculture industry,?reach out to our analysts today!??

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? **?????????????? ????????????: Akhilesh Prabhugaonkar?

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