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Women Are Transforming the Digital WorldYesterday March 8th was a very proud moment for Agrivi. Our Chief agronomist Tanja Folnovic was attending the prestigious Technology Playmaker Award organized by Booking.com. Tanja has been shortlisted as a finalist along with 3 other women from European countries in the category Sustainability Innovator of the Year. Tanja Folnovic is among the rare women in the IT sector, which is a primarily male industry. She joined Agrivi in 2014, where she gradually became Chief agronomist and got her own team of also female agronomists. Given that she holds a Master's degree in Horticulture, since the very beginning, her job has been linked with the agricultural segment of the Agrivi software. “During her work in Agrivi Tanja successfully created the Agrivi knowledge base that contains best practices for over 100 crops.“ Tanja says she loves agronomy and she always wanted to work in that field During her work in Agrivi, she successfully created the Agrivi knowledge base that contains best practices for over 100 crops, used by farmers in 150 countries worldwide. Besides best practices, the knowledge base contains the most common insect pest and diseases for each crop, and recommendations which pesticide or fertilizer to use to get the best results in farming. Tanja also started writing Agrivi blogs with her team, that were recognized worldwide and listed among top 10 sustainable agriculture blogs in the world. An essential part of her job is also testing the entire web and mobile application, to ensure Agrivi users have the best user experience possible. IT Sector Is No Longer Reserved Only for Men Booking.com recognized that women are making an incredible impact in technology every day, so that's why they created the Technology Playmaker Award. It's a way to celebrate women who are transforming the digital world through the use of technology. This year, Booking.com organized the Tech Playmaker Awards for the first time, with the goal of giving recognition to women who are making an impact in digital technology. The award ceremony was held on International Women's Day at the Museum of London, where Tanja got a chance to meet Randi Zuckerberg, a very successful entrepreneur, bestselling author, and tech media personality. “Over 50% of employees in Agrivi are women, and that is proof that women can also be successful in the IT sector.“ Randi Zuckerberg was a keynote speaker at yesterday's Tech Playmaker Awards Women currently make up only 30% of the 7 million people working in Europe's digital sector. But that number is changing rapidly over the last few years. Over 50% of employees in Agrivi are women, and that is proof that women can also be successful in the IT sector. Tanja loves her job, and that's exactly what makes her great at it. Truly, women like Tanja are a source of inspiration for future generations of women, and their success and achievements should be recognized and celebrated.
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The No. 1 Concern When It Comes to Contract FarmingLike we discussed in one of our previous blogs, contract farming can be viewed as an agreement between farmers and processing or sourcing companies for the production and supply of agricultural products, managed with a contract signed by both parties. The contract states that the sourcing company is obligated to provide production support to farmers through, for example, the supply of inputs or technical advice. This kind of arrangements usually start with the farmer committing to provide a specific product of a certain quality in specific quantities. On the other hand, the sourcing company commits to support the farmer's production and to purchase the product directly from them. “Contract farming is an agreement between farmers and processing or sourcing companies for the production and supply of agricultural products.“ Contract farming agreements can work well for both parties, but only if they are fair and have been properly set up. When efficiently organized and managed, contract farming reduces risk and uncertainty for both parties as compared to buying and selling crops on the open market. Managing Contracts with Growers When forming a contract, there are three key areas that need to be determined: Quantity; specifying the amount of the desired product (crop) Quality; agreeing what quality levels and standards the product needs to meet Price; stating a specific price for the crops, set by the farmers Let's take for example a big processing company that sources raw material (potato) for further processing. The company uses potato for production of chips, french fries and other products intended for the food industry. First of all, the processing company has to find suitable crop growers and create a contract with them, specifying the farmer’s production quota and quality standards the product has to meet. Every season the farmers successfully deliver 500 tonnes of raw potato to the processing company, as previously agreed in the contract. But this year, the potato beetle infested the entire yield, so the harvest was considerably lower, and the farmers could only deliver 250 tonnes of potato to the processing company. What does this mean for the processing company? In this scenario both sides suffer great losses—the farmers don't get the financial compensation they had planned, and the processing company faces a shortage of the desired product, what forces them to purchase outside their usual network of growers at a more expensive price, and that can greatly affect the company's budget. Moreover, if a processing company is unable to meet pre-arranged marketing quotas, future orders could be decreased or canceled. Monitoring Farmer's Performance Ensures Contract Execution In real life, this scenario is very often due to various difficulties all contracted farmers face. Both insufficient and excessive production can have serious consequences. Overproduction can mean unwanted quota reduction and expensive buildup of products that are stored for long periods, that ultimately deteriorate over time. Underproduction caused by pests or climatic factors could eventually result in losses because processing costs per tonne could rise to very high levels. Well-managed contract farming is an effective way to coordinate production and marketing in agriculture. Crop production requires close supervision to control and maintain product quality, especially when farmers are unfamiliar with new methods and technologies. Through the efficient monitoring of crop development, the processing company can usually make yield forecasts based on real-time data. If yield starts to vary, the company can take proper measures to put the production back on track, or in the worst case scenario, react timely if they see that the yield won't fit their desired quota. “Having a risk mitigation strategy minimizes the impact of identified risks, and allows timely reactions for both, contracted farmers and the sourcing company.“ By having a real-time insight into field operations, the processing company has accurate information about real vs. planned delivery date, which simplifies their further decision making. So, to sum it up, a clear, transparent contract and compliance with the agreed terms is a precondition for successful contract farming. Also, having a risk mitigation strategy minimizes the impact of identified risks, and allows timely reactions for both, contracted farmers and the sourcing company. If you want to manage your farmer network and ensure proper contract execution, contact Agrivi Sales team. Contact UsNOW Text sources: FAO
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Increase Productivity by Simple Fertilization TrackingSoil tillage is the basis of every crop production because only properly prepared soil can provide conditions favorable for crop growth. However, soil tillage is not the only thing that is needed to achieve productive crop production. Along with soil, air, and water, there is something much more important that, in combination with these three, will provide healthy crops and an abundant yield. These are plant nutrients. Food for Plant Life Plant nutrients are the basis of plant life, providing all elements necessary for growth. They come in the form of fertilizers, whether in solid or liquid state. To ensure good and quality yield, a farmer has to provide plants nutrients during the entire crop production cycle. Only well-nourished plants will give a planned yield and more importantly, plants will be more resistant to various insect pests and diseases as well as unfavorable soil and weather conditions. “The right amount of fertilizers given at the right time is the key to abundant and quality crop yield.” Fertilization Plan Is a Smart Start for Achieving Higher Productivity When talking about fertilizers, it’s very important to be moderate. The fact is, plants need fertilizers but only in a specific amount. Applying too much fertilizer will not result in higher yields. On the contrary, the yield may be much lower. To avoid this scenario, farmers have to apply fertilizers in a specifically determined amount according to the crop type and previously added fertilizers. Before the vegetation season begins, it’s very important to plan all fertilization activities. There is a good reason why a farmer should do that. By making a plan, a farmer knows exactly when and how much fertilizer to apply to a certain crop and therefore he can budget this cost more easily. In that part of a farmer’s job, Agrivi farm management software is of great help. It helps farmers to plan all fertilization activities per crop and field. Fertilization plan activities in Agrivi farm management software During the crop production cycle, there are several fertilization activities. By planning each one, a farmer can prepare all stocks on time, thus avoiding a delay in fertilization application which can have a great impact on the final yield. In case that a farmer rents farm machinery such as a tractor or fertilizer spreader or maybe employs additional workers for this activity, task planning helps him to prepare on time. That way he can manage everything according to plan. “Agrivi dashboards give farmers an overview of applied fertilizers per field and crop.“ Fertilization Dashboard for Smart Maintenance of High Productivity By applying fertilizers, the soil is loaded with various nutrients that provide favorable conditions for plant growth. Accordingly, due to several fertilizations during the vegetation season, it’s really hard to track the total amount of soil reserve nutrients. This greatly reflects when making a fertilization plan for the next season. Luckily, Agrivi software offers farmers a great tool that facilitates analysis of applied nutrients. Field analysis gives them an overview not only of all applied fertilizers but also of all nutrients from the fertilizers. So, wondering how you can track that? Every time you are using some kind of fertilizer, simply register that usage in Agrivi fertilization task. You can see the total amount of applied fertilizers per field and crop at any moment in the Field analysis dashboard. Agrivi farm management software gives farmers an overview of applied nutrients per crop and field However, the powerful Agrivi dashboard gives farmers a deep insight into nutrients reserve. It shows them a total amount of all applied nutrients per crop and field as well. “Agrivi enables farmers to track total applied nitrogen (N) per ha from all applied fertilizer types.“ Track total applied nitrogen per ha in Agrivi farm management software That way, a farmer can clearly see how much fertilizer was applied to fields and what is more important, did they cross the limit of applied nitrogen (N) per ha. Because it’s well known that farmers have to manage their production according to farm legislation and Agrivi software is here to help them manage their crop production as easier as possible. Farming is an activity full of planning and managing while expecting the best outcome. Get all your farm details from one central place. Farm smart and sign up now for Agrivi. TRY NOWfor free
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How to Choose the Right Farm Management Software?Up till today, the AgTech revolution has experienced quite the bloom. From precision farming, drones, and geo-mapping to robotic harvesters and self-driving tractors. All this is just a needle in a haystack in countless farm technologies that are taking over agriculture nowadays. Whether managing a serious farm business or a small family farm, every farmer looking to achieve profitable production needs to include one more component in his everyday activities. You have probably guessed it by now—we are talking about farm management software. The Right FMS Can Make a Huge Difference When managing a farm, farmers often find themselves overwhelmed with all the duties and responsibilities that can be very exhausting and time-consuming. In order to reduce time spent on messy paperwork, and have every activity entered and transparent, farmers should rely on the help of their chosen farm management software. The ideal agricultural software should be a complete solution. What does this mean? It should support all crops (vegetables, fruit, grain, grasses etc.) and production types (conventional, organic or integrated), and contain support for all farming activities (central registry of fields, seasonal or full-time employees to inventory stock level and machinery usage). That way, regardless of what farmers may grow, they will have full support for every aspect of their production. Also, adverse weather conditions like hail, frost, flood or drought can make a lot of damage to the yield and cause financial loss. The same is with late crop protection—the results can be catastrophic if timely measures are not taken. That's why tracking weather conditions per field and analyzing possible insect pest and disease occurrence are of the utmost importance. An abundance of vendors offering IoT and remote sensing solutions bring many benefits, but challenges as well. When deciding on the right FMS, a farmer should consider choosing a software that can easily integrate with his existing software (ERP, accounting, e-commerce, etc.), and hardware (automated data collection from machinery and equipment), or any other third-party systems. “Farmers should rely on the help of their chosen farm management software to help them manage all farm activities.“ If a farmer is involved in a larger farm business, he probably has some specific requirements he needs to address, so it would be preferable if the software could be customizable to fit his specific production process and resolve the problems he is facing. A Mobile Version Is Just as Important One additional benefit of a great FMS is its availability on a mobile device for Android and iOS, that serves as a supporting tool for the web application. A farmer also needs to check if his desired FMS mobile application works offline because that would simplify data entry. “The best solution is to search for an FMS with a wide geographical presence, that includes a selection of all world languages.“ Farmers are busy people, and most of their day they spend on the field, so the easiest thing for them to do is simply enter every activity in the mobile app, immediately after it is done, right there on the farm. Even if there is no internet connectivity, and the mobile application is working offline, a quality FMS will save any data that is recorded, and sync it with the web application next time a farmer gets online. Today, most of the applications are locally made for a specific country and market regarding its language and features. If a farmer is determined to be successful, he would need to find an application in his local language or at least one that supports different world languages. The best solution is to search for an agricultural software with a wide geographical presence, that includes a selection of all world languages. That way a farmer can simply set up the account settings in his preferred language and make the most of what the application has to offer. “Farmers need to check if the FMS mobile application works offline because then they can easily enter data in the field.“ Choosing the right farm management software can be a difficult decision, and these are just a few important things to consider when trying to decide which farm management software to choose. Seize your ticket to success and sign up in Agrivi to make the most of your farming. TRY NOWfor free
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Everything a Farmer Should Know About Commodity TradingCommodity exchange is one of the most important economic terms that plays a vital role in the global economy by providing an organized marketplace for the exchange of various commodities such as grains, sugar, cocoa, livestock, oil, gas, metals, and others. In order to understand how agricultural commodity exchange works, it’s essential to understand the actual meaning of the term “commodities”. Generally, commodities are marketable goods and raw materials, usually traded in bulk. Commodities can be classified into four main groups: Agricultural commodities (corn, soybean, wheat, rice, cocoa etc.) Livestock and meat (i.e. livestock cattle) Metals (gold, silver, platinum, copper) Energy (petroleum, crude oil) The main characteristic of commodities is that they are interchangeable with other goods from the same group. In addition to that, commodities are uniform in their quality. In practice, this means that commodities which are in the same group and quality grade are very similar and it’s hard to find a difference between their producers. For instance, it’s hard to spot the difference between wheat from one producer and wheat from another producer. “Commodities are bulk goods and raw materials that are interchangeable with other goods from the same group” How Commodity Exchange Works? Commodity market works just like any other market; it can be a physical or virtual place where commodity trading occurs. However, the commodity market is characterized by its strong regulations and rules. The trading and exchange of commodities work through legal entities, known as commodity exchanges. Commodity exchange is an association, company, or any legal corporate body which provides an organized marketplace for trading in commodities. Worldwide there are many commodity exchanges specialized in operating with certain commodities. The Chicago Board of Trade is one of the major and most known commodity exchanges operating with agricultural commodities such as corn, soybeans, wheat, oats, and rice. “Commodity exchange is a legal entity which provides an organized marketplace for trading in commodities” There are two ways how commodities can be traded: Trading in the spot market; which means that the commodities are exchanged immediately when setting a deal, either for cash or other goods. The price is set according to the current market prices and delivery occurs immediately or a few days later. Trading in the form of futures contract; which means that the buyer and seller instead of goods, exchange the contract which obligates them to buy or sell the commodity on a specific date in the future and at a particular price. In case the price for certain commodity changes, the contract obligates both parties to buy or sell a commodity at a predetermined price. What’s interesting regarding the futures commodity exchange, is that futures contracts are usually offset before their expiration, and therefore the delivery of commodity rarely occurs. In other words, trading in futures contracts serves rather for price speculations and risk management, than for the actual exchange of goods. Understanding the key processes in the market is crucial for farmer’s success. After all, there are many farmers who use commodity exchange either to sell their products or as a risk management tool that will help them face price fluctuations. If you want to learn more about the agricultural market and other interesting terms such as market prices, futures contracts, and hedging, keep reading our articles and master your market knowledge.
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Increase Your Productivity by Making a Soil Tillage PlanIn our previous blog posts, we wrote about the beauty and the challenges of growing crops. Besides various types and techniques of crop production, we also presented all activities a farmer needs to perform in order to achieve successful farming. However, high quality and healthy soil is the base for successful farm management. By using best soil tillage practices, farmers can ensure a well-prepared soil that will manage weeds, recycle plant nutrients, provide a soft mass for sowing, and a suitable surface for seeds. Soil tillage is the first and most important activity in every crop production The Effect of Soil Tillage on Yield In the process of preparing the soil for growing crops, soil tillage is the first and most important activity. It directly affects the final yield and that’s why it needs to be carried out properly. During the crop production process, farmers perform several types of soil tillage. These are as follows: Undermining or mole drainage—a poorly used tillage practice; mainly to solve standing water and soil porosity problem Plowing—classified into very shallow, shallow and pre-sowing plowing, this practice is the base of soil tillage; it improves soil microbiological activity, destroys already emerged weeds and prevents losses of moisture from the soil by evaporation Disking—plays a huge role in preparing the soil for sowing; disking breaks up clods and surface crust, thereby improving soil granulation and surface uniformity Harrowing—creates a crumbly layer for planting thus protecting the soil surface from rapid drying and enhancing plant nutrient availability Rolling—the final soil tillage practice to create smooth and firm seedbed and press the seeds into the soil for faster germination Not all tillage practices are included in one crop production cycle. They differ on the type of crop production and crop itself, as well as on the phase of the crop cycle. In other words, prior crop sowing, a farmer will perform heavy tillage practices in order to loosen the soil and prepare it for crop growth. While, after the crop germination or during its growth, lighter tillage practices will provide better soil performance and therefore faster crop growth. Still, that doesn’t mean that all farm practices need to be performed during a single crop production cycle. A farmer decides which tillage practices to include in his farming and that way determines his own path to success. Organization of all farm activities is the key to successful farming Organization Is Half the Work Done Farming is a complex business made of many single activities. For that reason, to be successful, a farmer needs to be organized as well. What does that mean? A farmer has to plan and track all his farm activities, from soil preparation for sowing until the crop harvest. Simple as that, since soil tillage is the first and most important farm activity, its tracking is the base for successful farming. The best way to achieve that is by making a soil tillage plan in Agrivi farm management software. However, making a plan is slightly different for “new” farmers that are just involved in farming and “old” farmers, also called masters. A farmer who is just starting a farm business is not familiar with all farm activities, and that includes soil tillage. First of all, he even doesn’t know which tillage practices to include in his production. Based on that, using Agrivi software, he will get a set of all related activities. By performing them, he will realize which practices suit him best and therefore create his own set of tillage practices. Also, by tracking every activity, a farmer will get an insight into the real costs per field and crop, as well as financial health of his crop production. New farmers use predefined tillage practices in Agrivi farm management software to create their own set of practices On the other side, farmers who practice crop production for years, already have a set of tillage practices which they perform regularly during each farm season. Therefore, they don’t even need to make a plan. However, they still need to have a clear insight into their farm costs per field and crop. By registering all activities into Agrivi, farmers are able to see the exact usage of their machinery, fuel, work hours and finally the cost. Tracking of tillage practices in Agrivi farm management software allows farmers an insight into farm costs per field and crop Tracking all farm activities in Agrivi software gives a farmer a clear insight into the financial health of his crop production We can conclude that organization and tracking of tillage activities in Agrivi software facilitate crop production management and planning the next season. Surely, that approach can be applied to all the remaining farm activities. TRY NOWfor free
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How Agrivi Transformed Software DistributionWhen it comes to business collaboration, we could all use a good wingman. By forming a partnership we can gain access to a bigger range of business opportunities. After all, two heads are better than one. Formally, a partnership is an arrangement where parties, known as partners, agree to cooperate in order to improve their mutual interests. Deciding to partner with someone can be a difficult decision, but in most cases, this type of agreement brings only positive results. In the text below we will describe why Agrivi FMS decided to start a partnership model of its own. The Answer to Best Farm Management Agrivi is a modern and user-friendly AgTech solution that helps farmers track all farm activities and resources so they can avoid messy paperwork and have more time with their families. This platform is available as a web or mobile application and contains an in-house agricultural knowledge base of best practices for over a 100 crops. This cloud-based software is translated into 17 world languages and helps farmers reach sustainable and profitable production. Over 40.000 farmers worldwide have recognized its value and started using Agrivi solutions to improve their production. What is Agrivi Partner Program? Farmers in over 150 countries worldwide can use Agrivi on their official country language, but sometimes it's hard to reach and communicate with all those people and provide them the best customer service only via phone or computer. Agrivi is a modern and user-friendly AgTech solution that helps farmers track all farm activities and resources We recognized the need for additional representatives based locally, that would distribute our product and transfer knowledge to farmers with whom they work on a daily basis. For that reason, we created a unique and innovative business model based on the distribution of our core product—Agrivi FMS. The thing that made us stand out from the competitors on the market was the idea of distributing our software in physical form or to be more specific in specially designed boxes. From that idea, Agrivi Partner Program was born and Agrivi Boxes became our instrument for reselling. Our Partner Program is aimed at potential resellers interested in introducing an innovative product to their existing network of farmers and who wish to expand their product portfolio with a value-adding product. The perfect fit are top quality agricultural distributors with a strong farmer customer base (suppliers of seeds, pesticides, fertilizers) and who work with farmers on a daily basis. Agrivi is listed among top 10 global FMS leaders on the market, so it is a great option for companies who want to bring a market leading AgTech product to their customers. Agrivi Partnership Program is a unique and innovative business model, intended for various agri input distributors that already have an existing farmer network and wish to expand their product portfolio Agrivi FMS is available for distribution as a physical product in the form of Agrivi Box. Why boxes? Farmers love to get their hands on something tangible, and let's face it, who doesn't enjoy getting a gift after spending money on something at the store. Agrivi Box can be resold from the shelf of the store as an additional product, or it can serve as a first-class giveaway or gift for existing and new farmer customers. Growing Successful Partnerships We understand that loyalty and trust are crucial when dealing with farmers and it takes years to form a relationship with your customers. Farmers want to acquire agricultural products from someone who they know and trust, and if you become their consultant and advise them which fertilizer to apply or what equipment to use, they will do so because they trust you. Agrivi Partnership Program is a unique and innovative business model, intended for various agri input distributors that already have an existing farmer network and wish to expand their product portfolio. Our future partners distribute our software packed in specially designed boxes and offer it as an additional product alongside their current range of products. By doing so, they become an official reseller of our main product—Agrivi FMS. Further reselling of the boxes generates long-term profits for our partners and helps them increase customer loyalty. This type of business model is a great chance to create a mutually beneficial relationship with lifelong privileges. If you are involved in reselling of agricultural inputs and work with a network of farmers, the best way to stay ahead of the game is to offer an innovative farm management solution to your clients. Be a part of modern agriculture and contact our Sales team to learn all the details. Contact UsNOW
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Better Farm Performance with Data-Driven Decision-MakingWhile performing their farm activities, farmers visualize the beautiful crops that will be produced at the end of the season. Sometimes, this way of thinking motivates them to work even harder and makes their job seem much easier than it actually is. In their journey towards high yield, quality crops, and high profit, farmers have to be successful as both, growers and businessmen. This means that they have to be well-informed agronomists who are open-minded to good farm practices and farm innovations. Farmers have to be successful as both, growers and businessmen. In addition to their agronomy skills, farmers also need to have a sense of sales and financials. However, one of the key factors for achieving a successful farm business is having a well-managed decision-making process that is based on data. What Is Data-Driven Farm Management? Data-driven farm management is a relatively new approach to agriculture which is becoming increasingly popular among farmers. This new concept of managing a farm business occurred due to the strong need to change the way food is produced. As the global population continues to grow and resources are becoming more exhausted, farmers are faced with the challenge to produce more, with less. In other words, data-driven agriculture occurred as a solution for increasing farm productivity per area and better utilization of farm resources. Followed by rapid development of modern technology, data-driven farm management supports farmers to measure all aspects of their business, from soil and crop performance to financials. That way, farmers are able to make business decisions based on data, instead of relying on gut-feeling. After all, having an insight into data is crucial for increasing farmer’s productivity, sustainability, and finally, profitability. Data-driven farm management means making decisions based on data instead of gut-feeling. How to Practice Data-Driven Decision Making? Theoretically, every farmer who makes decisions based on true and real-time facts is data-driven. For instance, farmers who fertilize their crops based on soil analysis results, are data-driven. However, today the term “data-driven farming” usually includes using various modern technologies which collect precise and accurate farm data, such as: Soil and crop sensors; that measure various soil and crop conditions (i.e. soil moisture sensors help farmers manage irrigation more precisely) Variable rate technology; provides the application of the right amount of inputs (such as seeds, fertilizers or pesticides) based on the requirements of each part of the field Yield mapping technology; collects the spatial data about the yield and other crop characteristics during the harvest Weather stations; for tracking weather conditions Farm management software; a cloud-based technology for tracking, collecting and analyzing the entire process of farm production Data-driven farm managers measure all aspects of their business, from soil and crop performance to financials. Each of the aforementioned technologies will provide a farmer a few pieces of information. Regardless of the method of data collection, the only important thing is that a farmer has access to accurate and fact-based support for making business decisions. Yet, one method for collecting the data stands out. It’s a farm management software that gathers all farm data in one central place. Farm management software, such as Agrivi, enables farmers to collect the data about soil and crop performance, weather conditions, KPIs and other business performance indicators. A simple, and user-friendly solution such as Agrivi, can turn every farmer into a successful farm manager. After all, managing a farm without measuring key crop, soil and business performance indicators is like driving a car without checking the fuel; you never know when you will stop. TRY NOWfor free
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Smart Insurance Management with Weather IndexingRunning a farm and growing crops is not easy. It takes many years of hard work as well as lots of hard-earned money to prepare crops for harvest. There is a whole list of things that can go wrong and ruin the yield for a farmer. Drought, heavy rain and flooding, strong wind and hail can all have a devastating effect on the harvest. Because the weather has such a strong impact on their livelihoods, farmers are motivated to develop different strategies to manage weather risks. Agricultural risks are also the main cause of food insecurity, so improving conditions for smallholder farmers would reduce global poverty levels. Connection Between Weather Risk and Index Insurance Agricultural insurance is designed to protect farmers from events that are entirely out of their control, such as adverse weather and price drops. From a weather risk management standpoint, there are two main types of risk to consider: Sudden events (like localized windstorms or hail) Long-term events that occur over a continuous period (like drought) In order to successfully protect their crops from these types of events, farmers arrange crop insurance to get a compensation in case of crop damage. Main weather-related risks affecting agriculture This type of risk mitigation tool can best be applied in an area where there is a strong connection between crop losses and adverse weather events. Before managing weather risk, farmers have to assess it first. Risks are assessed by determining three key points: Hazard—type of risk (weather) Exposure—location of crops Vulnerability—an estimation of the impact the risk would have on the crops affected by it; varies according to the crop growth stage In order to successfully protect their crops from bad weather events, farmers arrange a risk management strategy with an insurance company, called weather index-based insurance. Weather risk mapping is a practice that enables risk identification, assessment, and management. It can be assessed through a combination of the following parameters: Weather risks (wind, temperature, rainfall, hail); called an index Type of crops subject to those risks (oilseed crops, vegetables, trees, etc.) Number and type of producers that grow those crops Location of weather stations; form a secure network that is different from country to country Agro-climatic zones; gathered from satellite imagery (gives information about how different factors and attributes relate over space and time) Altitude Weather index insurance relies on historical and current weather data. Current data is measured by local weather stations and they record at least 20 years of historical data, which is used when insurance companies are trying to assess weather risk. An Effective Risk Management Tool for Farmers With all of the above said, we can say with certainty that weather indexing is a broad area, and it is a crucial element in defining what type of insurance farmers want to use. It also plays a big role in calculating the cost of the premium. Besides risk management in the form of crop insurance, farmers can apply other risk mitigation measures to minimize yield losses. For example, if they know that their farm is located in a high-risk area of drought, they can start using crops to increase resilience (e.g. appropriate crops, varieties and cropping patterns; irrigation) and take proper adaptation measures in order to avoid risks. Also, if a certain crop is susceptible to extreme weather conditions and diseases, farmers should redirect their production to a more sustainable crop that will bring more profit in the long run. Insurance companies use a strategy defined for a certain type of risk (in this case weather) called weather index-based insurance and offer it to farmers as a risk mitigation tool. If you are an insurance company and you wish to learn how you can greatly prevent inaccurate assessments and wrongful damage compensation, please contact Agrivi Sales team. Contact UsNOW Text sources: FARMD || IFAD Image sources: FARMD
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Farm Inventory Organization as a Crucial Factor for Farmers’ ...Running a successful farm business is not an easy task. Farmers nowadays have to be very skilled in order to make a profit. They have to be successful managers, accountants, consultants, scientists and overall, very good at performing all field activities. In the era of modern agriculture, farmers really do have all the aforementioned attributes. However, one thing can significantly determine the path of their farm performance. This is inventory management. Although it doesn’t sound like a big deal, proper farm inventory management is the most important value of a successful farmer. Poor Inventory Management Leads to Cash Flop Proper inventory organization is a weakness for every farmer. Caught in extensive farm organization, farmers often forget about this important feature in farm management. The consequences of poor inventory management can be significant to both farm productivity and profitability. The most common example of the impact of inventory organization on crop production is at the time of crop sowing. Poor inventory organization leads to a delay in farm activities, causing the decrease of farm productivity and profitability Every farmer knows that most crops, especially arable, need to be sown or planted at the specific time of the year. For example, let’s take sowing of wheat in Europe, which lasts only two to three weeks. In order to provide the best conditions for crop growth, sowing needs to be performed during that period. If a farmer starts sowing wheat and then suddenly realizes that he is running low on seed stock, he needs to pause sowing and make the purchase. Meanwhile, certain unfavorable conditions may occur. There is a huge possibility of rain period and lower temperatures that can greatly impact the germination as well as the final yield. Another common example of poor inventory management is in the harvest period. Not having insight into the real inventory stock level, a farmer cannot prepare an adequate quantity of bags, boxes or pallets for fruit storage during the harvest. The time needed to make a purchase of stocks prolongs the time of harvest thus affecting the fruit quality and final yield. These two abovementioned examples are just a drop in the ocean of similar situations of improper farm inventory organization. Still Don’t Have a Suitable Tool for Inventory Management? Having a farm production means that there are certain activities constantly in progress. However, many of them require tracking of inventory stock levels. In other words, farmers have to be completely prepared for each activity. Otherwise, every lack of stock may lead to an additional delay in performing activities. Agrivi farm management software allows you to easily manage your inventory To avoid this scenario, farmers have to organize and regularly check their inventory stock. There is a perfect tool that facilitates proper management of farm inventory—Agrivi farm management software. Its real-time inventory management gives farmers an actual inventory level at any moment. By using Agrivi, farmers can get two most important values for successful management of their farm production: Instant inventory overview of all items currently in stock, with a single click Set inventory alarms for all the key products that have to be available at any moment and by doing so, avoid running out of stock Real-time inventory overview with Agrivi farm management software Organization is the key to profitable farming. Hence, every successful farmer knows the importance of timely organization of all farm activities as well as his inventory. Instead of managing your farm by gut feeling, make data-driven decisions by using Agrivi farm management software. Make your farm production easier than ever, with this powerful farm assistance tool. Sign up in Agrivi today. TRY NOWfor free
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Contract Farming—a Way to Sustainable AgricultureToday, the agriculture is expanding rapidly, and small farmers are having more and more difficulties with accessing the market and fully achieving profitability. In the same time, larger companies involved in crop supply or food processing, are in great need of a reliable source of crops for further sale or for processing. In order for both sides to obtain some sort of benefit, they often establish a relationship, in the form of a written contract, where each side has to fulfill certain conditions. For a contract to be successful, it requires a long-term commitment from both sides. This common practice is called contract farming. Farmers must sign a contract to sell their harvest to the sourcing company in exchange for inputs, technical assistance, and financial help Contract farming can be viewed as a partnership between farmers and processing companies or cooperatives, where the farmer is obligated to supply the agreed quantity and quality of crops, in a specific time period. In return, the processing company agrees to buy off the crops from the farmers, at a prearranged price. Farmers must sign a contract to sell their harvest directly to the sourcing company, and in exchange, they get support in the form of agricultural inputs, technical assistance, and financial help. Contracts will only work if both parties meet the required conditions and if they believe that by signing the contract, they are creating a win-win situation for themselves. The Basic Formula for a Good Contract As we heard many times before, the health of a supply chain is the health of the company. Many stakeholders in the agricultural value chain (e.g., retail chains, wholesale traders, cooperatives) source crops from farmers and they all have two final goals in mind—achieving sustainability and profitability. But like we discussed in our previous blogs, successfully managing networks of farmers, regardless of their size, can often be challenging work and if they're not managed properly, the crop sourcing company can face financial setbacks and losses. A transparent contract and compliance with the agreed terms is a precondition for the successful long-term sustainability of contract farming Therefore, a long-term partnership with the growers is achieved by creating a transparent and commercially viable contract, that will be satisfactory to both parties. First and foremost, contracts should be flexible and provide clear, simple specifications regarding three key areas: Quantity; specifying the amount of the desired product (crop) Quality; agreeing what quality levels and standards the product needs to meet Price; stating a specific price for the crops, set by the farmers Secondly, it should also have a defined risk management strategy in case of extreme events such as high market prices or bad weather. By creating the contract, a processing company wants to ensure contract execution that meets their targets. If the farmers fulfill the desired targets stated in the contract and comply with the agreed conditions, then the crop sourcing company can be sure that the supply chain is healthy and prosperous. Contracts should be flexible and provide clear and simple specifications Signing a Contract Doesn't Always Mean Compliance Like in any business deal, there are a number of risks associated with contract farming. Common problems include farmers selling to another crop sourcing company, or using inputs supplied by the company for other purposes. From the other side, a company sometimes doesn't buy products at the agreed prices or in the agreed quantities. If farmers don't deliver the contracted quantity and quality level of the product, the sourcing company is forced to purchase outside their usual network of growers at a more expensive price, and that greatly affects the company's budget. This type of conduct is called breach of contract, and as a result, the trust between farmers and the sourcing company is broken, so future business activity is no longer possible. This being said, it is obvious that a clear, transparent contract and compliance with the agreed terms is a precondition for the successful long-term sustainability of contract farming. Managing a network of farmers can be quite a handful, but one agricultural software has a perfect solution—Agrivi farm management software. It provides sustainable growing practices and better collaboration with the farmers, which ultimately improves the benefit for both growers and sourcing company. If you have difficulties with managing your farmer network, don't hesitate to contact our Sales team and explore different Agrivi industry-focused solutions. Contact UsNOW Text sources: FAO
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4 Field Facts Every Farmer Should KnowWhether a small or large, private or leased, a field is the baseline for every crop production. In agriculture, a field represents an area of land, cultivated in order to grow different types of crops. In other words, everything that happens on a farm starts with a field. For that reason, a field is one of the most important farm assets, as well as one of the main components in farm management. For every successful farm manager, a field is much more than just a land area For every successful farm manager, a field is much more than just a land area. Behind every field, there are several valuable pieces of information that are crucial for a farmer who wants to practice intelligent field management and stay on top of his business. These are: 1. Exact field location Knowing the exact field location (field coordinates) enables precision weather tracking. After all, farming is an unpredictable business in which unfavorable weather represents one of the main threats to farmer’s yield. Therefore, successful farmers, oriented towards intelligent field management, always track weather conditions based on the coordinates of their fields. 2. Size of the field and its utilization Besides field location, size of the field and its utilization (the percentage of planted crops on the field) is also a very important piece of information to every farm manager. One of the main reasons for that is because the size of the field, as well as its utilization usually dictates which crops can be grown in the field. For instance, orchards are usually raised on smaller surfaces while arable crops usually cover a larger land area. On the other hand, information about field utilization is essential for making plans regarding new crop productions, particularly in the case when the part of the field is already occupied with some other crop. 3. Crop rotation Farmers who practice intelligent field management always know which crops are grown in their fields during the last few years. That way, they can easily make plans about the crops that will be planted in the future. 4. PH value and soil type One of the most important facts about every field is its soil type and pH value. Soil type determines which crops can be grown on a specific field (some crops prefer clay while others are more appropriate for sandy soils). Moreover, soil type will also determine water management on the field (for instance, sandy soil requires frequent irrigation with smaller amounts of water due to its high porosity). Together with soil type, successful farmers who practice intelligent field management, manage their crop production based on the results of the chemical analysis. PH value is, therefore, one of the most important pieces of field information that directly affects nutrient management, thus affecting crop performance and final yield. Knowing the aforementioned facts about fields is essential for practicing intelligent field management. However, having all the data about the fields in a single place is even more important for achieving a successful farm business. In the picture below, there is an example how successful farmers manage their fields in Agrivi farm management software. Intelligent field organization in Agrivi farm management software Recognized by farmers all over the world, Agrivi is one of the top farm management solutions on the market. Farmers who use Agrivi never miss a single detail about their fields and crop productions. So, sign up now and discover the beauty of intelligent field organization with Agrivi. TRY NOWfor free