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Digital Agricultural Ecosystem: An Introduction

Kuldeep Singh1*, Prasanna Kolar2 and Rebecca Abraham3

1School of Management, Gati Shakti Vishwavidyalaya, Vadodara, India

2School of Humanities and Social Sciences, Jain (Deemed-to-be University), Bengaluru, India

3Huizenga College of Business and Entrepreneurship, Nova Southeastern University, Fort Lauderdale, Florida, USA

Abstract

The primary goal of this chapter is to offer a comprehensive examination of digital agriculture from a critical perspective with a specific emphasis on forming an ecosystem that highlights the linkages between agriculture and technology. This chapter examines various definitions of digital agriculture and explores the theoretical foundation that supports this concept and emphasizes the essential elements required for establishing this ecosystem. The present chapter also discusses how technology has affected the development of agriculture, with a focus on the potential benefits of digital agriculture for productivity, sustainability, and profitability. Such an objective should be a top priority for government stakeholders and decision-makers due to the possible policy consequences. The research also emphasizes the necessity for the adoption of clear ethical and regulatory rules in order to secure the long-term viability of digital technologies in agriculture for the benefit of all stakeholders.

Keywords: Digital, agriculture, ecosystem, sustainability

1.1 Introduction

The agriculture sector is an important pillar of the global economy and also contributes significantly to food security, economic growth, and the livelihoods of millions of people around the world. On one side, traditional agricultural methods face several challenges, such as rising costs, lower profitability, and higher demand for sustainable and environmentally friendly agro-practices. On the other side, digital agriculture has emerged as a capable solution to the abovementioned challenges with the potential to transform agroindustry through the integration of modern technology such as blockchain, artificial intelligence, big data, and the Internet of Things (IoT).

One of the most widely used definitions of digital agriculture is based on the integration of technology and data into farm practices to increase efficiency, sustainability, and profitability [1-3]. Basically, this definition encompasses various technologies such as precision agriculture, remote sensing, and decision support systems. However, this definition is still open to interpretation and lacks specificity in terms of the types of technologies and practices that fall under the digital agriculture umbrella.

If we look at the recent research on digital agriculture, success depends on several factors like access to technology, adoption of innovative tools by farmers, and the ability to integrate digital tools into existing agricultural systems. Despite the growing interest and investment in digital agriculture, there are several issues and controversies surrounding its use. One of the primary concerns is the digital divide where farmers in low-income countries may lack access to the necessary technology and infrastructure. Additionally, there are other concerns such as data privacy, the potential for technology to exacerbate existing inequalities, and the need for clear regulations and standards to ensure the ethical use of digital tools in agriculture.

Xie et al. [4] mentioned in their study that the role of technology in rural agricultural development is critical. Digital agriculture has the potential to transform farm practices and improve the livelihoods of farmers through increased yields, cost reduction, and better market access. While it is pertinent to recognize the unequal distribution of benefits in digital agriculture, there is a potential risk of exacerbating the existing digital divide due to insufficient emphasis on prioritizing technology access, particularly in low-income countries.

This article aims to provide a critical review of the available literature on the digital agriculture ecosystem with a focus on defining the relationship between agriculture and technology. The study further aims to investigate diverse interpretations and past advancements in digital agriculture. Moreover, it intends to scrutinize the fundamental components and constituents that constitute a digital agriculture ecosystem.

1.2 Digital Agricultural Ecosystem

The history of digital agriculture can be traced back to the 1970s when the first computerized decision support systems were developed to optimize agricultural practices [5]. Since then, digital agriculture has evolved significantly mainly with the integration of various technologies and the emergence of new business models and practices [6].

Upon examining the latest technological advancements in agriculture, it is evident that the digital agriculture ecosystem is a multifaceted framework that encompasses a multitude of technological constituents and participants who collaborate with each other to enhance agricultural processes. Such digital agriculture ecosystem encompasses the capacity to utilize technology and data to augment the effectiveness, sustainability, and profitability of agricultural operations. However, there is still a lack of clarity around what digital agriculture entails and how it should be defined. Therefore, by taking into consideration most of the entities and elements, we construct an ecosystem that enables us to better understand the association between technology and agriculture.

Based on the available literature on digital agriculture, it is evident that the digital agricultural ecosystem comprises a variety of entities and elements that interact with each other to optimize agricultural practices (see Figure 1.1). The entities section includes farmers, technology providers, researchers, policymakers, and customers. The technology providers mainly include firms that provide hardware, software, and data services for agriculture, while researchers develop new technologies and practices to improve agricultural practices. The regulatory framework that governs the adoption and implementation of digital technologies in agriculture is significantly impacted by policymakers, while customers influence the demand for sustainably produced food.

Figure 1.1 Digital agricultural ecosystem

(source: authors' own).

On the other side, the different elements that form the digital agricultural ecosystem include hardware, software, data, and human capital. Hardware includes sensors, drones, and other devices that collect data from the field. Software includes tools for data analysis, modeling, and visualization. Data include various types of information such as weather data, soil data, and market data. Human capital includes the skills and knowledge required to develop, deploy, and use digital agriculture technologies effectively.

The complete network of the digital agriculture ecosystem functions as a collaborative network of interdependent entities and constituents working toward shared objectives (see Figure 1.1). These objectives include improvement in the efficiency, sustainability, and profitability of farm practices; reduced environmental impact; and enhanced food security. The digital agriculture ecosystem can propose novel business prospects and value chains that are advantageous to farmers, technology providers, and consumers.

1.3 Definition

According to a FAO report [7], "digital technologies have the potential to enhance agricultural productivity and sustainability, particularly in developing countries. It highlights the role of mobile phones, drones, satellite imagery, and other digital tools in improving access to information, markets, and financial services for smallholder farmers. It also emphasizes the need to address challenges related to digital literacy, infrastructure, and policy frameworks to ensure equitable and inclusive adoption of digital agriculture." However, the digitalization of agriculture also faces challenges such as cybersecurity, data protection, labor replacement, and digital divide. Despite these challenges, FAO is committed to bridge multidisciplinary digital divides to ensure that everyone benefits from the emergent digital society. According to the United Nations Global Compact, "digital agriculture is the use of advanced technologies integrated into a system to improve food production for farmers and stakeholders [8]. Unlike traditional methods, digital agriculture systems gather data frequently and accurately, often with external sources such as weather information [8]." As per this statement, digital agriculture integrates new and advanced technologies to enable farmers to make informed decisions based on frequent and accurate data leading to improved food production through the use of robotics and advanced machinery.

Mark Shepherd [9] mentioned how digital agriculture can offer social advantages that satisfy the needs and requirements of different stakeholders such as farmers, processors, regulators, and consumers. Based on the utilization of digital technologies, agricultural production can be boosted while minimizing environmental harm. The result is a more efficient transportation and logistics system, improved work conditions for workers, and timely delivery of products that align with consumer needs. Digital agriculture can also address consumer demands for...