Price Challenges Are Blocking Adoption of Sensors in Agriculture
Sensors for Agriculture Can Raise Yields and Improve Environmental Impact, but New Business Models and Pricing Options Are Needed to Reap Full Benefits, Says Lux Research
(firmenpresse) - BOSTON, MA -- (Marketwired) -- 12/15/15 -- Even though sensors have many applications in agriculture, innovative pricing and service models will be key to the success of technology developers, according to .
With farmers facing price variability and other uncertainties, few are able or willing to risk significant capital on sensing technologies, which can help make more efficient use of soil, water, pesticides, and equipment. Developers need to target the crops best suited for their technologies and create attractive financing or leasing options, or adopt service models that resonate with the growers.
"Low commodity prices have a significant impact on technology adoption in agriculture, and additional uncertainties about the expected impacts of sensing technologies also help deter adoption," said Sara Olson, Lux Research Analyst and lead author of the report titled, ""
"Rather than abandon the space, developers will need to become savvier in their approaches, using business models that appeal to growing risk aversion in order to drive wider adoption," she added.
Lux Researchers evaluated the economics of sensing technologies used in agriculture, besides assessing technology developers. Among their findings:
With many growers operating near a break-even point of $4 per bushel, only farms over 2,500 acres will find it attractive to purchase new sensor hardware. A services model with creative pricing options could be appealing for a broader range of row crop growers.
Increasing yields with soil moisture sensing and analytics technologies will appeal to potato growers, who can afford a technology cost of $100 per acre, with little difference in affordability across farm sizes from 50 acres to 500 acres.
Sensors that help growers produce premium quality grapes that fetch ultra-high prices, and can help cut production costs will be most appealing to wine grape growers. Again here, larger vineyards of 50 acres and larger have the greatest tolerance for hardware purchases, while smaller vineyards will gravitate to services.
The report, titled "Sensing in Agriculture: How can Technology Developers Drive Adoption?" is part of the Lux Research and the services.
Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit for more information.
Lux Research, Inc.
617-502-5314
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 15.12.2015 - 06:30 Uhr
Sprache: Deutsch
News-ID 1404393
Anzahl Zeichen: 2157
contact information:
Contact person:
Town:
BOSTON, MA
Phone:
Kategorie:
Equipment & Supplies
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 253 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Price Challenges Are Blocking Adoption of Sensors in Agriculture
"
steht unter der journalistisch-redaktionellen Verantwortung von
Lux Research (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
