Farming is said to be one of the vital industries globally. Earlier, food, clothes, and shelter were known as fundamental needs of human beings. However, nowadays, most people breathe technology. But when we talk about food, farming or agriculture comes to an utmost priority. Because we can not eat unless someone cooks it, and anyone can not cook unless a farmer grows the grains.
Many technologies have now supported the agriculture industry. Moreover, there are technological start-ups and blockchain development companies that work in the agriculture field. However, believing in the benefits of technology in agriculture can be hard. But in this post, we have brought you insights into blockchain agriculture.
According to Business Research Company, in 2021, the worldwide agriculture market was USD 11,287.56 billion. Moreover, by 2022, it is expected to grow and reach USD 12,541.15 billion.
Agriculture is one of the ever-growing sectors. It includes the process of cultivating plants, food, etc. This industry had its origin back a thousand years ago. In addition, the farming industry is not only limited to food. But it has many byproducts. They are fibers, fuels, and other raw materials. Moreover, from seed supply to crop production and delivery of food, there are a lot of processes and sub-areas involved in the agriculture field.
However, today, traditional farming has been nurtured with many advanced tools and technologies. It affects every level of farming. Let us understand some of the agricultural technologies and their benefits.
Technologies for the agriculture industry
Many technologies support and enhance the productivity of farming. For example, farmers may use water and soil sensors. In addition, weather tracking, RFID technology, and satellite imaging are helpful in farming. Moreover, many modern farming techniques are useful. For example, vertical farming, hydroponics, aquaponics, and sustainable agriculture are some of the contemporary techniques.
Further, we will talk about the most in-demand technology, blockchain. Let us understand how it helps the agriculture industry.
According to Markets and Markets, by 2026, the global blockchain industry will be USD 67.4 billion.
Moreover, Triple-A and Grandview Research say that by 2030, the worldwide blockchain market will have a value of USD 1431.54 billion.
Blockchain technology is one of the trending technologies that boost the functionality of many domains globally. It has a decentralized nature. Moreover, track recording is effective with blockchain. In addition, it is considered one of the secure and safe technologies that reduce fraud with its extensive features.
According to Statista, in 2017, the worldwide market for blockchain in food and agriculture was USD 32.2 million. Moreover, by 2028, it is expected to reach USD 1.4 billion.
Blockchain agriculture is one of the powerful applications of blockchain. Let us talk about a few of them.
Supply chain in agriculture
In agriculture, blockchain can track the supply chain of the food and even ensure safety. Basically, blockchain can store all the information from the quality of the seed to the progress of farming. In addition, when plants or food is out for sale, a blockchain system can keep track of all the data.
Blockchain can help with agriculture insurance.
The agricultural industry is the most affected by weather conditions. To save and secure the production loss, agriculture insurance is paid to farmers when extreme weather conditions affect crop production. For example, extreme rainfall or drought situations can affect crop production as well as food stock. In such conditions, the agricultural goods can not even be transported, losing their value. Therefore, agricultural insurance can be claimed so that the loss can be paid to the farmer. For this, they need to pay the premium before starting the plantation.
How can blockchain help in this scenario?
Blockchain systems can automate payments. Moreover, the weather reports stored in the blockchain system can gauge the payments and claims. Blockchain can help agriculture by enhancing index insurance.
It enables smart agriculture
Smart agriculture includes farming based on data. Suppose there is a system that maintains the data of production and sells. In addition, it consists of weather data to take necessary actions on time. The data managed by some stakeholders, if changed for any self-interest, can affect the whole process and efficiency. When blockchain is incorporated into the system, it offers transparency. Therefore every transaction in the system has a record. Furthermore, the robust security of the system is the key feature of blockchain. This can enable effective smart agriculture.
It is helpful in agriculture e-Commerce.
Blockchain technology makes it easier for farmers to enter the e-Commerce world. There are many reasons why traditional e-Commerce systems did not take agricultural products into consideration. One reason can be less life of products, another can be cost included in the supply chain, and thirst can be the frauds in the payment. Many of these issues can be solved by blockchain. For example, blockchain makes a transparent e-Commerce system that gives consumers confidence in getting authentic products. In addition, the payment system is effortless. Moreover, farmers can get the best price of the deal as the blockchain reduces the majority of costs.
What are the challenges?
Including blockchain in the agriculture industry can be a task. First, it requires education on the blockchain system or digital literacy for users. Moreover, an agricultural business should know the initiative’s ins and outs. Having clarity about the drawbacks of the current system will help in locating the blockchain in the required area.
Moreover, it should focus on decentralization to get the maximum of the blockchain system. Further, digital literacy is the only way to overcome the challenges and incorporate blockchain for security and transparency.
Above are some advantages of blockchain in agriculture. Moreover, you can even learn about the benefit of NFTs to the agriculture industry from NFT development company
Agriculture is one of the oldest industries. Including technological changes in such a system can be a task. However, some vital and significant changes in the traditional system can make farming more productive.