Agriculture in the platform economy

The opportunities with platforms do not limit to specific high-tech industries only, but spread across the society and the economy. One sector that has so far received little attention, yet holds great economic, societal and environmental promise, is agriculture.

Why is this important?

Applying digital technologies to agriculture could improve the quality, efficiency and safety of farming and the down-stream industries such as food, textiles and fuels. Although digitalisation within agriculture has been modest compared to some other sectors, platforms have been or are being developed to for example the following use contexts:

  • farm management information systems
  • machine and equipment management; including asset-sharing
  • irrigation, fertilization and pesticides; including monitoring and optimisation
  • use of automation and robotics
  • food processing
  • management of subsidies.

In the centre of it all is the farm and the farmer, and platforms could, besides boosting performance of the farm as a unit, facilitate interaction between producers and other businesses along value chains and value networks. Platforms could even involve the end-customers as well as the public sector, in their roles as consumers and authorities.

The opportunities of platform economy paint a more sustainable picture of agriculture, enabling better economic performance as well as less environmental burden. Animal health and welfare could be improved and aspects of safety and ethics of end-products could be better addressed and traced. Imagine being able, as a consumer, to make affordable and fully informed choices on food and clothes, matching your personal values!

Things to keep an eye on

Currently most platforms in the agriculture sector are fragmented to small, unique solutions with little or no connectivity or interoperability to other systems. However, the vast potential of more integrated and interactive solutions to connect entire value networks are envisioned, and strategic efforts are on-going for example on the European level. The Digitising European Industry initiative has carried out extensive work, including exploration of platforms for industry, and Smart Agriculture has been identified as one vertical perspective of specific importance.

Empowering the farmers is a prerequisite for boosting digital technologies and platform economy development in agriculture. Technology developers need to establish an alliance with farmers to pinpoint concrete opportunities and co-innovate.

Selected articles and websites

Working Group 2: Strengthening Leadership in Digital Technologies and in Digital Industrial Platforms across Value Chains in all Sectors of the Economy, First report (December 2016)
Digitising European Industry initiative
EIP-AGRI: Agriculture & Innovation
GODAN, Global Open Data for Agriculture and Nutrition
365FarmNet: Agricultural management software
SMAG, Smart Agriculture: Farming information systems, cloud computing & SaaS, mobile applications

Heidi Auvinen

Research Scientist VTT Technical Research Center of Finland Ltd
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