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Agriculture Strategy

Farmers to produce what the market wants

For the first time, the state government is going to regulate the production of crops in India. Farmers in Telangana are going to produce what the market wants. It’s a big move in the right direction and will set ground for a new beginning of Demand Driven Agriculture. This Kharif season, the farmers will be asked to grow paddy on 50 lakh acres (including the Telangana Sona variety on 10 lakh acres of land), cotton on 50 lakh acres and red gram on 10 lakh acres. Farm lands nearer to urban areas will grow vegetables and horticultural crops to tap the demand.

“One should cultivate crops which sell well. They don’t buy whatever you produce”.

Telangana Chief Minister K Chandrashekar Rao

Asking the farmers to strictly adhere to the cropping pattern, Chief Minister K Chandrashekar Rao has said that government sops such as ‘Rythu Bandhu’ (₹5,000 each for farmers in both the seasons for every acre they own) will be stopped to the farmers who don’t conform to the cropping plan.

Farmers base next years supply purely on the previous price and assume that next year’s price will be the same as last year (adaptive expectations). These fluctuations in price may cause some farmers to go out of business.

Limitations of Cobweb theory

As the government is attempting to go beyond advisory and extension roles, it will revamp the Department of Agriculture to take up additional responsibilities. The government will also bring in necessary amendments to the Seed Act.

Read more at The Hindu Business Line

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How Satellites Can Improve Decision-Making For Agricultural Investments

USDA information about crop supply and demand estimates is fundamental to both policy-makers and agricultural investors. Nevertheless, the current situation with markets and crops is changing faster than USDA report releases, especially with the uncertainty around coronavirus pandemics. The uncertainty caused by the outbreak of the COVID-19 reinforces the need for reliable, precise, politically neutral, and promptly available data for investors.

Here’s where digital tools can come in handy.

Geospatial intelligence, supply-and-demand estimates, crop tours, experimental plots, direct contact with grain producers are among the most effective ways to gather much-needed data. Agricultural investing is entering in the ‘remote prediction’ era where the one with superior AI tools has the edge. This is where satellite technologies can close informational gaps – and do it faster than once a month.

Read more at Investing.com

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Articles

Factory Farming – A glimpse of future of agriculture

Farming is going to be the next Manufacturing. Farms, are becoming more like factories: tightly controlled operations for turning out reliable products, immune as far as possible from the vagaries of nature. By 2050, the planet’s population is likely to rise to 9.7 billion, a rise of 2 billion from now. Along with increase in population, there is a substantial increase in the lifestyle. Those people will not only need to eat, they will want to eat better than people do now, because of higher incomes. Since most land suitable for farming is already farmed, this growth must come from higher yields.

What are the changes happening in the way we grow our food?

  1. Protected cultivation: By growing plants in warehouses, shipping containers, and city-adjacent greenhouses, next-gen farmers claim they are able to eliminate the threat of unpredictable weather, waste less water, reduce transportation costs and fasten the production cycle.
  2. Data driven agriculture: Farming is becoming a branch of matrix algebra. Farm operations involve a set of variables, such as the weather, soil’s moisture levels and nutrient content, competition to crops from weeds, threats to their health from pests and diseases, and the costs of taking action to deal with these things. If the algebra is done correctly, the yield gets optimised resulting in maximization of profit.
  3. Lab grown meat: There may be an even better way to grow meat, the animal tissue most wanted by consumers, than on animals themselves. This means growing the cells in reactor vessels filled with nutrient broth. To make it similar to animal meat, the cells must be attached to fat and other related components, so the idea is to grow them on small spheres floating in the vessels. Fat cells, which add juiciness to meat, are cultured separately. Whether it’s chicken created in the lab, crickets and beetles ground up in energy bars or plant-based burgers that ‘bleed’ there’s no shortage of innovation when it comes to alternative proteins.
  4. Synthetic eggs: Researchers are developing synthetic egg white, using transgenic yeast to secrete the required proteins. Indeed, they hope to improve on natural egg white by tweaking the protein mix. They also hope their synthetic white will be acceptable to people vegans and some vegetarians, who do not currently eat eggs.
  5. Leather grown using biotechnology: Factory-grown leather promises several advantages over skins taken from animals. One is that it can be made in convenient sheets with straight edges, rather than being constrained by the irregular shapes that animals come in. Another is that it is more consistent than the natural stuff. It is devoid of the scars, marks and other defects to which real skin is inevitably prone.
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Producers shouldn’t change planting plans

Livestock, grain and energy, mainly oil, prices and the stock market have dropped so dramatically because of the uncertainty surrounding the COVID-19 outbreak, and not because of a supply and demand issue. This situation is unprecedented, so people don’t know what to expect and tend to think of the worst-case scenario.

Don’t change your plans based on what you see in the markets today because it’s not going to be a good reference point

Read more at Farm and Ranch Guide