According to research by the Food and Agriculture Organization of the United Nations (FAO), there are 600 million smallholder farmers in the world. They own 70–80% of the world’s agricultural land and produce 80% of the world’s food in value terms. It is evident why it will be inane to undermine or ignore their pivotal role in the agriculture sector.
Yet, smallholder farmers struggle on a day-to-day basis to optimize production and increase their income level. Amidst serious concerns such as a rapid increase in population, food security, sustainability, resource scarcity, climate change, and a decrease in fertile land, these farmers require strong support from the entire ecosystem. There is a pressing need to challenge the narrative and this is possible only through technology.
This article will highlight the challenges of smallholder farmers and how technology can be a great enabler for their empowerment.
Challenges of Smallholder Farmers — The four key challenges that smallholder farmers are facing currently are:
1. Lack of Strong Infrastructure
Most smallholder farmers, especially in developing nations own farmlands in rural areas. Infrastructure in these areas is inadequate and unreliable in terms of transport connectivity, communication network, safe water availability, and power supply. As a result, they are unable to procure high-quality seeds, fertilizers, and other agri inputs. They remain under constant pressure to produce more with limited and low-quality resources.
2. Lack of Technological Know-How
If farmers want to increase farm productivity and profitability while making agriculture sustainable, they need to use modern tools and technological solutions. Unfortunately, most rural farmers lack the knowledge and skills to leverage technology to their advantage.
3. Lack of Access to Affordable Credit
A majority of smallholder farmers are outside the formal credit system. Hence, due to a lack of data regarding their farms and income, lending institutions do not risk giving them money. Even if they do, the interest rates are high. Consequently, they can’t afford to invest in technology even if they want to.
4. Lack of Financial Stability
Smallholder farmers are unable to earn sufficient income as they either don’t get fair prices or deal with several middlemen in the supply chain. They are also unaware of different ways they can increase their income.
The Technologies to Support Small Farmers
A joint report by EY and Syngenta Foundation for Sustainable Agriculture (SFSA) states that digital innovation offers the means for smallholder farmers to take their rightful place at the forefront of a sustainable agriculture revolution, empowering them with the tools and knowledge to increase their efficiency, yields, and incomes to previously unattainable levels.
While technology adoption is still low among smallholder farmers, technology can address their challenges significantly. Let’s understand how.
Mobile and the internet are perhaps the most powerful technology enablers for smallholder farmers. They can use both to get real-time information on weather, natural disasters, emergencies, government policies, market prices, etc. They can also get crop advisory from experts and fellow farmers at their fingertips.
Moreover, they can use their mobile devices to do mobile banking, secure digital loans, and buy (agri inputs), sell (produce) or rent (tools, machinery, tractors) through online marketplaces.
2. Official Digital Database
India is developing the Agristack Program, a unified platform of digital databases on farmers. Under this program, every farmer will get a unique ID linked to their personal information and land records. The digitized data will enable farmers to avail of end-to-end services across the agriculture value chain. They will also get easy access to formal credit, agri inputs, and digital farming technologies.
Similarly, the eWallet system in Nigeria contains personal and biometric information of smallholder farmers. The government uses this data to provide input subsidies directly to farmers.
Such programs if implemented in other countries can give the much-needed technological push to smallholder farmers.
3. Precision Agriculture Technologies
Precision agriculture technologies such as soil sensors, drones, satellite imagery, robotics, Variable Rate Technology (VRT), and the Internet of Things (IoT) can help smallholder farmers in various ways:
4. Agriculture Fintech
Agriculture fintech is expected to be the next technological game changer for smallholder farmers. It will disrupt agriculture finance and pave the way for the financial inclusion of these farmers. It will enable farmers to avail of affordable credit from banks, crowdsourcing platforms, digital lending companies, peer-to-peer networks, etc. It will also help them to switch from cash and paper-based transactions to digital payments.
Another way fintech can transform the lives of smallholder farmers is through crop insurance. It is a known fact that crop loss due to unpredictable weather events or natural and manmade disasters is a big financial damage for smallholder farmers. Insurance fintech can help farmers reduce these risks.
5. Income Growth
Currently, smallholder farmers primarily depend on agri-allied sectors such as livestock rearing, fishery, horticulture, and sericulture as additional sources of income. However, technologies related to crop rotation, integrated farming, organic farming, vertical farming, and hydroponics can boost their income further. Precision farming tools can increase their income indirectly through cost savings on agri inputs and yield optimization.
Online marketplaces in the agri-food supply chain have also contributed to farmers’ income through savings on commissions to middlemen.
Conclusion
Smallholder farmers are the mainstay of the agriculture sector. However, the current complexities in the value chain can make it challenging for them to access or adopt technology at the desired scale. Hence, it is essential that technology is both accessible and user-friendly for smallholder farmers to be truly impactful. This can happen only through cross-sector collaboration across the globe, technology training for farmers, and the creation of adequate agriculture infrastructure.
Syngenta Innovation Dialogues is part of the Shoots by Syngenta Accelerator initiative
The Syngenta Group Startup Accelerator program, part of the larger “Shoots by Syngenta” platform, provides early-stage companies with a supportive #ecosystem to develop new #agriculture #technologies. It includes giving #startups the opportunity to pilot their technology at Syngenta’s Farm of the Future and select grower locations globally, mentorship from our business leaders, the ability to connect with industry experts, as well as resources and funding to accelerate their growth and impact.
At Syngenta Group, we believe in #innovation and #collaboration. If you think you have what it takes, then we have the platform for you!
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