The Rise of Agricultural Technology and Renewable Energy
Do the benefits of agricultural technology outweigh the cost?
As the global population continues to surge, the demand for increased food production becomes ever more pressing. It’s estimated that the world population will reach nearly 10 billion people by 2050. This exponential growth presents a formidable challenge for the agricultural sector. To meet the rising demand, farmers are increasingly adopting innovative ag technologies and renewable energy solutions to enhance productivity, efficiency, and profitability.
In this article, we uncover the most rapidly growing technology in agriculture, along with the risk and rewards that come with each, to help you make the most informed decision for your operation.
Adoption Rates of Agricultural Technology and Renewable Energy
Rural Broadband
The 2022 ag census revealed a notable increase in reliable rural broadband access, with as much as 79 percent of farms reporting that they have reliable internet access, representing a four percent growth from 2017.
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Precision Ag Technology
Internet access is key in technological adoption, as it can enhance efficiency and reduce required inputs for production. A new metric added to the 2022 Census of Agriculture was the number of farms that currently use precision agriculture technology. Precision agriculture, characterized by advanced technology such as GPS, drones, and data analytics, is being used on a notable 226,092 farms (12 percent of total farms). This will be an interesting data point to monitor in future censuses, but most experts agree we will see this number increase alongside broadband connectivity rates.
Renewable Energy
The 2022 ag census also showed a substantial increase in the integration of renewable energy-producing systems on U.S. farmland as a way to diversify and increase revenue streams. The largest increase from 2017 to 2022 was solar, with a 15 percent rise to more than 150,000 U.S. farms.
![](https://agamerica.com/wp-content/uploads/2024/07/Farms-Using-Renewable-Energy-and-Agricultural-Technology-in-2022.jpg)
Solar energy, in particular, has seen the highest adoption rates, with California leading the way at over 68,800 GWh of solar electricity generated in 2023—more than double the output of any other state. Texas follows in second place at 31,700 GWh, with Florida, North Carolina, and Arizona rounding out the top five.
The Rewards and Risks of Agricultural Technology
Before diving headfirst into the sea of agricultural technology opportunities out there, it’s important to weigh the risk, reward, and return to make the right choice for your operation.
Benefits of Agricultural Technology
Efficiency and Productivity
One of the primary benefits of adopting agricultural technology is the significant boost in efficiency and productivity. Precision agriculture tools, such as GPS-guided equipment and drones, enable farmers to optimize field management, reduce waste, and increase yields. For instance, precision ag data can help farmers apply fertilizers and pesticides more accurately, leading to better crop health and reduced input costs.
Learn how this Southeast farmer reduced food waste from 30 percent to less than 10 percent with strategic agricultural technology investment through AgAmerica.
Potential Farm Labor Solution
Agricultural technology holds significant potential to alleviate farm labor issues by automating labor-intensive tasks and increasing efficiency. With advancements such as robotic harvesters, automated irrigation systems, and precision agriculture tools, farmers can reduce their reliance on manual labor.
Renewable Energy as a Revenue Stream
The adoption of renewable energy systems, such as solar panels and wind turbines, provides farmers with an additional revenue stream. By generating and selling excess electricity, farmers can diversify their income and reduce their reliance on traditional farming revenues.
Risks of Agricultural Technology
Cybersecurity
As farms become more connected through IoT devices and cloud-based systems, the risk of cyber attacks increases. Protecting sensitive data and ensuring the security of automated systems is paramount. Here are six ways to protect your operation from cyber risk.
Land Use
The rapid expansion of renewable energy projects raises concerns about the conversion of farmland. Approximately 83 percent of new solar projects are installed on farmland and ranchlands, with nearly half placed on the most productive, versatile, and resilient land. This trend necessitates a careful balance to ensure that both food production and energy goals are met without compromising the integrity of our agricultural lands.
Financial Expenses
The initial cost of adopting new technologies can be prohibitive for many farmers, particularly those with smaller operations where the return doesn’t justify the cost. While these technologies often lead to long-term savings and increased productivity, the upfront investment can be a barrier. Securing financing through institutions like AgAmerica can help farmers overcome this hurdle and access the benefits of modern agricultural technology.
Lack of Guidance and Support
Many farmers may struggle with the complexity of new technologies and the lack of clear guidance on proper implementation. Access to comprehensive training and support is crucial to effectively integrate these advancements into your operation.
Elevate Your Operation with AgAmerica
The integration of agricultural technology and renewable energy is inevitable. As the global population continues to grow, these advancements will play a critical role in meeting the rising demand for food. By adopting precision agriculture tools, renewable energy systems, and conservation practices, farmers can enhance productivity, reduce inputs, and create new revenue streams—but it needs to be done right, and farmers must have the capital and technical support they need to stay ahead in this rapidly evolving landscape.
AgAmerica is committed to supporting farmers in this technological transition. Our tailored financing solutions empower farmers to invest in innovations that will support their long-term financial success.
Ready to take your farm to the next level? Contact AgAmerica to learn more about our financing solutions customized to fit your unique operation’s needs.