Many state and national in person conferences are churning out new thoughts, perspectives, and ideas concerning the agriculture industry. Let's discuss a few of the fan favorites.
1. Digital technology strategy
Thinking about technology in agriculture requires a three-pronged approach. A digital technology strategy will often require a three-to-five-year time horizon. One must place an emphasis not only on the technology, but the process to integrate the technology. Finally, do you have the talent in your business to effectively integrate the technology into the business model in an efficient manner?
2. Greenflation or “en” flation
The rapid movement from fossil fuels to green energy has contributed to the new terms greenflation and “en” flation. The duration and extent of this inflation tied to green energy is a paradigm shift, and the rate of change will be dependent on potential black swan events. Supply chain challenges, geopolitical issues, and possible military action can be very influential in the level of inflation.
3. Environmental, social, and governance principles (ESG)
ESG principles are becoming a big paradigm shift in the agriculture industry. From the board rooms to activist investors and consumers, businesses are now being scored on these factors. More agriculture producers will be held accountable for environmental, social, and governance impact by firms with which they conduct business. Europe is approximately five years ahead of the curve in this aspect.
4. European perspective
Speaking of Europe, European agriculture has mandated a 50 percent reduction in pesticide use and 40 percent less commercial fertilizer use by the year 2030. Will they move from being exporters of food, fiber, and fuel to importers? How can North American agriculture producers capitalize on this situation?
5. Suitcases of cash
Foreign investors are purchasing land, particularly in the Southern Plains, with suitcases of cash. Foreign cash is being invested in land and products that are being legalized, which is driving up land values in this area of the country.
6. Do not forget North America
While much of the buzz around agriculture trade is focused on China, do not forget our good neighbors to the north and south: Canada and Mexico. Recent trade actions and tariffs would suggest that these two nations are secondary in the big picture of agriculture trade. A North American trade strategy and policy, particularly agriculture policy, will be critical to the success of our industry in the decade of the 2020s.
Remember that change, whether it is a business or individual, usually occurs from the inside out, not the outside in!
Source: David Kohl, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.