Agriculture Technology and The Future of Farming It’s Not Your Grandfather’s Farm, Anymore Robert Tse USDA Rural Development Embassy Suites Hotel Monterey, CA January 29, 2015 It’s Not Your Grandfather’s Farm, … Anymore! Global Demographic Drivers Global Ag Challenges Global Ag Opportunities Global Demand Drivers to 2050 • • • • Global Population Increase Rapid Urbanization Growing Middle Class Climate Change Impact •Rising Food Prices •Rising Global Trade of Food •Rising Demand for Protein, Fruits and Vegetables •Agriculture Adapts to Climate Change Global Impact: Tourism • International Tourism (2013) • Arrivals: Reach 1.09 Billion Persons • Receipts: $1.159 Trillion 2013 • Forecast: 1.8 Billion Persons by 2030 • US International Visitors (2013) Arrivals 69.8 Million Persons Receipts: $139.6 Billion Forecast to Rise to 77 Million Persons by 2016* • CA International Visitors – 15.6 Million Persons (2013) All CA Tourism $110 Billion Total Direct Spending • Monterey County (2012) $2.3 Billion in Direct Spending • $147 Million in Direct Tax Receipts • $704 Million in Food & Beverage Services Rank Monterey is California’s 4th Most $ Billion County Productive County 1 Fresno 2 Kern 3 Tulare 4 Monterey 5 Merced $6.59 $6.21 $6.21 $4.14 $3.28 Top Five Counties $26.43 Rest of State California Gross State Total $28.97 Monterey Accounts for 8% of California Agricultural Production Monterey $55.39 CA Ag Commissioner’s Report 2012 FARM GATE Monterey County Farm Gate: $4.4 Billion Vegetables and Fruits Dominate Categories Leafy Greens $1.6 Billion 36% Monterey County Ag Report 2013 $Million FARM GATE Monterey County Farm Gate: $4.4 Billion Leafy Greens and Strawberries Dominate $1 Million Leafy Greens $1.6 Billion 36% Monterey County Ag Report 2013 Monterey County Ag Production Overall Decade Growth to $4.4 Billion AG.CO.MONTEREY.CA.US * Revised numbers used for 2004 and 2012 crop #4 Nursery Products $2.8 Billion Monterey 2012 USDA NASS CA $ Million Top 5 Counties Gross Value Monterey is Largest Producer of Two of Top Ten California Crops #6 Strawberries: $2.4 Billion #7 Lettuce: $2 Billion Monterey Monterey $ Million $ Million California Ag Exports Pass $18 Billion California Agricultural Statistics Review 2013-2014 Global Recession $ Billion Continue Growth and Nearly Triple U.S. Agricultural Trade FY 2014 sets record exports, imports, and surplus Declining bulk export prices & greater export competition lower FY 2015 forecast $152.5 Records $143.5 F $109.2 $116 F Exports Imports Office of Global Analysis/FAS Export Outlook for Horticulture Products Revised FY 2015 Forecast: $37.0 Billion Unchanged 2015 Key Developments • Long-term growth trend continues Strong exports to Canada, Europe and China Tree nut exports higher due to strong demand in China and Europe for almonds, pistachios and walnuts Wild Cards China’s continued growth, particularly for tree nuts, fresh fruit and wine Office of Global Analysis/FAS China Grows to #1 U.S. Agricultural Export Market Over Quarter Century 1985 $ Million U.S. Agricultural Exports, USDA, FAS Robert Tse USDA CA Rural Development Global Agriculture Challenges Limited availability of more arable land for production without high environmental costs Double Productivity on farm land already in production Adapt to Global Climate Change Meet Local Disruptive Events Invasive Species Invasive Species DROUGHT 2014 Drought Impact • Greatest absolute reduction in water available … for California agriculture ever seen … • State wide Impact: – – – – Crop Revenue Loss: $810 Million Additional Pumping Cost $454 Million Livestock / Dairy Revenue Loss$203 Million TOTAL DIRECT LOSSES $1.5 BILLION • TOTAL ECONOMIC COST: $2.2 BILLION • TOTAL JOB LOSSES: 17,000 Economic Analysis of the 2014 Drought for California Agriculture UC Davis Center for Watershed Sciences July 15, 2014 Impact on Farming Produce More with Less Labor New plant hybrids, and animal breeds New agricultural production practices Greater efficiency in agricultural utilization of water New Ag Technology LABOR SAVING REGULATORY Production Food Safety Energy Water Ag Tech Environment Disruptive Technology Your Future 21st Century Agriculture Technology Ag Drones Precision Input Application Food Safety New Data Driven Technology Production Side of Agriculture Technology is Here! Auto Steer No operator in the cab. Fully automatic tractor and planter. http://www.youtube.com/watch?v=q8dBOG https://www.youtube.com/watch?v=nXO6b1y AfUIk pZMc Technology is Here! Future of AG: Precision Ag UAV Quadcopter UAV https://www.youtube.com/watch?v=W1UYXN https://www.youtube.com/watch?v=_97Yd8 a6AcE BotFw DISRUPTIVE PERSON Steve Jobs RURAL WIRELESS BROADBAND RURAL WIRELESS BROADBAND NEW AGRICULTURE TECHNOLOGY PRODUCTION ENVIRONMENT WATER ENERGY FOOD SAFETY RURAL TELE-HEALTH / TELE-MEDICINE Distance Learning Public Libraries TRANSPORTATION & LOGISTICS PUBLIC SAFETY DIRECT MARKET ACCESS TO GLOBAL MARKETS Rural Agro Tourism & Recreation Importance of Broadband “Ag Tech will locate where the high capacity broadband exists. Just as railroads brought economic growth to communities that were connected to the rail lines in the 19th century, and water ports provided the same connectivity to cities in the centuries before, broad band offers the same access to prosperity in the 21st century.” Robert Tse, USDA, CA, RD Hackathon comes to the Farm... Come code and have fun on the Farm of the Future in Coalinga. February 20 – 22, 2015 West Hills Coalinga Community College For More Information: http://www.apps-for-ag.com