Unlocking Agricultural Potential: The Impact of Satellite Data in Modern Farming
How space data can increase crop yields many times over?
Issue No 43. Subscribers 6887. Featuring insights from the CEO and Head of Brazil at Gamaya, as well as the CTO of OneSoil.
In the past 50 years, humanity has achieved remarkable advancements not only in astronautics but also in other areas. These achievements are truly inspiring. Interestingly, during this period, the average yield of many grain crops has seen a significant increase, ranging from 3 to 5 times. The primary driver behind this boost has been the optimization of labor through the introduction of machinery for harvesting, new fertilizers, improved crop varieties, and more.
However, there is a new factor on the horizon that has the potential to drive even more fundamental growth: space data. Despite the vast amount of data collected from space, we are only beginning to scratch the surface of its potential applications and benefits.
In this article, we will explore how space data can play a vital role in helping humanity achieve more efficient crop cultivation.
Images captured by Earth observation satellites have become an invaluable resource across various industries and applications. In particular, we have previously explored two fascinating topics that leverage satellite imagery: monitoring greenhouse gasses. Here is it:
The growth of the space agrotech market is primarily fueled by advancements in open space data. The Copernicus program, with its free, full, and open data policy, enables universal access to Sentinel data products. Additionally, the expansion of constellations, such as ESA's IRIS² program, further contributes to this growth. Concurrently, the rise in data availability has led to an increased emphasis on data science and analytics. As obtaining data becomes increasingly effortless, the importance of data analytics becomes more pertinent. In what tasks are these images and data used?
Space Tasks and Challenges for Agriculture
Here are some ways in which satellite data can help us in agriculture:
Satellite Imagery for Agricultural Planning: By utilizing a vast archive of high-quality, analysis-ready data, farmers and agronomists can plan for the growing season. Analyzing annual crop maps provides insights into productivity and field health, enabling the identification of in-field patterns and region-specific trends.
Satellite Imagery for Yield Control: Continual monitoring of agricultural land through satellite imagery allows for the assessment of crop health, nutrient levels, presence of weeds, and invasive species. Various types of imagery, ranging from simple RGB to advanced hyperspectral imaging, are collected and analyzed to provide recommendations and assessments. Also, this information serves as the basis for predictive analytics models.
Satellite Imagery for Predictive Analytics: By leveraging mathematical models, it becomes possible to forecast crop yields based on the current state of crops. Additionally, satellite data can be used to predict and identify pest infestations and crop diseases before they become significant threats.
Satellite Imagery for Ecology in Agritech: Sustainable practices in agriculture, such as regenerating soil health, carbon storage, and minimizing environmental impacts, are crucial. Science-grade satellite data helps verify the adoption of decarbonization efforts, enables growers to optimize their inputs, and facilitates ecologically sustainable decision-making. Furthermore, government agencies can verify sustainability commitments through satellite imagery.
In summary, the use of satellite imagery in agriculture aims to maximize yields, ensure crop health, and promote sustainable and efficient plant cultivation practices.
We talked with Yury Vasilkov, Gamaya’s Chief Executive Officer, and asked for his opinion about the space Agritech market. Here's what he thinks:
“The industry of space data application for improving farming operations is still very young and it is less than 10 years old. For agriculture this is very young as we are dealing with 12 month business cycles. The competition with other more conventional technologies for solving the same problem such as machinery, chemistry, nutrition and other solutions slows adoption of the digital and space technologies. Sustainability and emissions reduction is the new mega trend that comes in full force to agriculture these days as well. I believe that space technologies are the key to address this massive challenge. Combined with AI/ML technologies they are becoming today the key measurement tool on the progress we make transforming agriculture”
Despite the remarkable opportunities presented by space data, there are several challenges that hinder the widespread adoption of such technologies:
One primary challenge is the inherent seasonality of agriculture, as crops are typically harvested once a year. This limits the continuous implementation of technologies, as there is no constant stimulus for growth. Consequently, the adoption of space-based technologies in agriculture progresses at a slower pace.
Another significant difficulty lies in the individuality of fields. What may work successfully in one farmer's field may not yield the same results in another farmer's field. The effectiveness of technologies is highly dependent on regional factors, making it necessary to tailor solutions to specific regions. Some companies have even started focusing on utilizing satellite data for the first cultivation in particular regions to address this challenge.
Moreover, space agrotech faces competition from alternative technologies. While space data can enhance crop yields, modern fertilizers, and conventional crop improvement methods also offer opportunities for yield improvement. Thus, space agrotech must contend with the competition posed by established agricultural practices.
These challenges highlight the complexities of integrating space data into agriculture and emphasize the need for customized approaches, region-specific strategies, and effective differentiation from existing agricultural methods.
The Commercialization Earth Observation for Agritech: Future Opportunities
We talked with Andrey Kulik, OneSoil’s Chief Technology Officer, and asked for his opinion about the space Agritech market. Here's what he thinks:
“The utilization of space data in agrotech is still in the early stages but gaining momentum rapidly. Market growth is inevitable, and it will emerge as a key factor in driving yield improvement. In farming competitions, some farmers have already achieved yields three times higher than the regional average through precision farming techniques.
However, the agricultural sector poses unique challenges. Each region and even individual fields have distinct characteristics, and more than 200 parameters must be considered to optimize yields. To address this, OneSoil offers a remarkable solution—an innovative tool for field testing that provides tailored recommendations specific to each field.
Drawing a parallel between agriculture and medicine, both fields are highly individualistic. Just as a medication that works for one person may not be effective for another due to individual nuances, the same holds true for fields. The future of both medicine and agrotechnology lies in embracing an individualized approach, considering the specific characteristics and requirements of each case”.
Based on the Earth Observation & GNSS Market Report, the 2021 global turnover for Earth Observation data and value-added services was $3.3bn with a projected CAGR of 7.0% until 2031.
The top five segments generate 55% of the revenues. Agriculture alone represented 12% of the total. Although this projection may seem modest, it corresponds (at least in CAGR terms) with other sources:
Market Reports World estimates a growth from $3.2bn in 2021 to $4.8bn by 2027, with a 7.1% CAGR.
Allied Market Research predicts the market will reach $11.3bn by 2031, with a CAGR of 7.2% from 2022 to 2031.
GlobeNewswire projects a global market size of USD 15.9bn by 2032, with a 6.9% CAGR from 2020 to 2032.
China, India, The US, and Brazil are major agriculture producers in the world. However, regarding productivity, the US leads in almost all main crops (in terms of tones per hectare).
It is important to note that the adoption of Earth Observation technology in agritech is still in its early stages, even in the United States, despite the strong sales figures. According to the United States Department of Agriculture (USDA), Earth Observation technologies such as drones, aircraft, and satellite imagery are utilized on a maximum of 10% of soybeans planted. For other crops, the figures are even lower. This indicates a significant untapped market potential for Earth Observation technologies in the United States.
We have seen that space for agritech technologies only early adopters of this technology use this data.
The adoption and utilization of Earth Observation technologies in agritech vary depending on the region, with different companies developing strategies tailored to the specific characteristics and requirements of each region. The market potential and opportunities for Earth Observation in agritech are substantial, and as awareness and understanding of the benefits of these technologies grow, their adoption is expected to increase in the coming years.
Earth Observation Startups Shaping the Agricultural Industry: Valuations and Notable Players
In the realm of Earth Observation for agritech, companies can generally be categorized into two main groups: those that provide a comprehensive range of services utilizing space data across multiple sectors, and those that specialize in specific niches within Earth observation for agritech.
Notably, several startups from the first group have achieved valuations surpassing $1 billion. These companies offer a diverse array of services, catering to various sectors, including agriculture. Here are some noteworthy examples:
Planet Labs (funding $573.9M) With a valuation of $2.8 billion at the time of their SPAC deal (currently $941 million), annual revenue - $204M. Planet Labs operates one of the most prominent satellite constellations for Earth Observation, consisting of over 200 satellites. Planet Labs offers satellite images with resolutions ranging from 0.5 to 3-5 meters and maintains a deep historical archive of over 1,300 images for every acre on Earth, facilitating planning and forecasts.
Spire Global (funding $677.7M): With a valuation of $1.6 billion at the time of their SPAC deal (currently $116 million), annual revenue - $86.4M. Spire harnesses a constellation of 100+ multipurpose satellites to hear land, sea, and air to accelerate global commerce and enable organizations to make smarter, better, faster decisions in a rapidly changing world impacted by climate change.
Satellogic (funding $393.8M): Valued at $1.1 billion at the time of their SPAC deal (currently $215 million), annual revenue - $6M. Satellogic is focused on offering Earth Observation solutions and makes the data from space more accessible to help governments and enterprises make better decisions on the ground.
Another prominent company in the Earth Observation market is Pixxel (funding $69M, an Indian startup in the US), which offers solutions for various sectors, including agriculture, environment, government, energy, and mining. They utilize hyperspectral imaging satellites with global coverage, revisiting areas every 24 hours. Hyperspectral sensors capture data across hundreds of narrow wavelength bands (250+) with 5m spatial resolution, enabling the detection of subtle differences in spectral signatures among different crop varieties based on their unique biochemical and physiological characteristics.
Additionally, in 2021, a significant M&A deal took place in the Earth Observation segment when Valmont Industries acquired Prospera Technologies for $300 million, Prospera raised in total $22M on Series A and B, specializing in artificial intelligence and machine learning applications for agriculture.
Agriculture is a very multi-parametric and complex task that requires expertise. In addition, it often requires a large amount of historical data on one specific issue. Therefore, a number of companies focus on narrow tasks, building their expertise in a specific issue. Here are some of them:
Gamaya (funding CHF20M) is a company that provides solutions for the sugarcane industry allowing it to increase yield and reduce emissions at the same time. A strong focus on sugarcane, which is a specific crop, means Gamaya understands this crop in-depth and can provide tools and features that address the specific needs of the sugarcane value chain – from sugar growers to sugar mills, to food and fuel companies.
We talked with Fernando Rati, Head of Brazil of Gamaya, and asked for his opinion on why it is important to work on specific issues. Here's what he thinks:
“We want to be the best in one crop initially to further reply to other tropical crops in the short-term future. Also because in terms of carbon removal sugarcane is the champion crop on this terms”.
Ceres Imaging (funding $58.5M) offers the advantage of finely tuned data models—refined by more than 11 billion individual plant-level measurements, captured over ten years and more than 40 crop types. Identify issues impacting yield and calculate the ROI of capital improvements including identifying health issues 2-3 weeks before they are visible
Gamaya prediction model for sugarcane yield. Credit: Gamaya OneSoil (funding $6.7M) provides Integrated precision agriculture services for agricultural companies. Includes field experiments from A to Z. These experiments allow you to determine the specifics of a particular field and develop specific recommendations for it
Kilimo (funding $1.4M) specializes in precise irrigation and has formed partnerships with companies like Microsoft and Google, which have a "water positive" commitment. These partnerships allow Kilimo to compensate farmers for water savings achieved through adopting their AI irrigation management tool.
An essential aspect of these companies is that they go beyond providing data analytics from space. They also offer contextualization services and provide valuable recommendations on how to address specific agricultural challenges. This holistic approach provides significant support to farmers, enabling them to make informed decisions and take appropriate actions based on the insights derived from space data. By offering guidance and tailored recommendations, these companies enhance their value proposition and play a vital role in supporting farmers' decision-making processes.
Exploring Alternatives: Earth Observation vs. Drones
When it comes to gathering information about fields and farmland, drones have become a popular choice. For example, Taranis (funding $99.6M) uses off-the-shelf enterprise-level drones. Using a custom flight app, drone pilots execute each flight based on the optimal predefined route, ensuring the whole field is serviced. Their drones capture submillimeter and centimeter-level resolution simultaneously. This dual view capability puts leaf-level insights in context as the macro view gives a broad look at what’s happening in the field.
Let's delve into the advantages and drawbacks they offer.
Drones offer a convenient and easily deployable solution for capturing high-quality images in various conditions. Their ability to fly at low altitudes allows them to overcome weather limitations. Additionally, deploying and launching drones is a straightforward process. However, it's important to note that acquiring and maintaining drone data can be more expensive due to factors like maintenance, operator costs, and the need for frequent flights.
In contrast, satellite data is often publicly available or can be obtained at a relatively low cost. Although satellite imagery may lack the resolution to observe plants at an individual level, it is still valuable for solving a wide range of agricultural problems.
Both drones and satellite data offer unique advantages and limitations, and their combined use can provide comprehensive and complementary information for agricultural analysis and decision-making.
At Space Ambition, we strongly believe that space can help us on Earth. And agritech is just one of those very earthly areas where space can bring unique growth and benefits to the industry. We firmly believe that Earth’s observation of agritech is a beacon of sustainability for our precious planet. By harnessing the power of space, we can cultivate crops more efficiently, edging closer to solving the pressing issue of food shortages in developing nations. The fusion of cutting-edge in-flight technology and sophisticated data analysis offers a glimpse into a future where agriculture thrives in harmony with our environment.
But we don't want this journey to be solitary. We yearn to hear your voices, your thoughts, and your aspirations. What do you envision for the agritech market? How do you see Earth observation transforming the landscape of sustainable agriculture in the next 10-20 years? Reach out to us at hello@spaceambition.org, share your awe-inspiring insights with us, for together, we can forge a brighter future.
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