The Future of Technology for Smallholder Farming in Poor Rural Conditions Bangladesh JOIKKO Social Franchise Case Study REPORT COMMISSIONED BY VSO INTERNATIONAL Author: Roger Iles, PhD, MSci Contact: roger.iles@outlook.com 31st January 2019 Ackowledgements Thanks to the following interviewees who provided valuable insights into the future of technology and the reality of smallholder farming in rural locations in developing countries. Aniekan Esenam, Starmind International AG, Zurich Switzerland Eric Seuret, Resonanz Group, Zurich , Switzerland Sarah Rothrie, Writer, Researcher and blockchain expert, Basel, Switzerland Naomi Iles, Syngenta, JOIKKO social franchise cohort member, Niffer, France CONTENTS Executive summary ....................................................................................................................................... 5 Introduction .................................................................................................................................................. 7 The JOIKKO Social Franchise ..................................................................................................................... 7 Status of Smallholder Farming in Bangladesh .......................................................................................... 8 Outlook for Smallholders ........................................................................................................................ 10 Status of Bangladesh’s Information, Technology and Communication .................................................. 10 Agriculture Relevant Technologies ............................................................................................................. 11 Mobile Phones ........................................................................................................................................ 11 5G Network ............................................................................................................................................. 12 Precision Farming Systems (PFS) ............................................................................................................ 13 Internet of Things (IoT) ........................................................................................................................... 13 Distributed Ledger Technology (DLT) ..................................................................................................... 16 Digital Anchoring and Tracking ............................................................................................................... 19 Other Technology Devices ...................................................................................................................... 20 Open Source Solutions ........................................................................................................................ 20 Robotics and Drones ........................................................................................................................... 21 Nano-Technology in Agriculture and Food Production ...................................................................... 21 Radio and Video Technology............................................................................................................... 21 Case Studies ................................................................................................................................................ 22 Mobile Phone Services in Bangladesh .................................................................................................... 22 Bangladesh NGOs Network for Radio and Communication (BNNRC) .................................................... 22 Digital Green’s Community Video Learning ............................................................................................ 23 Dodore’s Agri-Wallet powered by Coin22 .............................................................................................. 25 Producers Direct ..................................................................................................................................... 26 Centres of Excellence .......................................................................................................................... 26 WeFarm Farmer’s Social Network ...................................................................................................... 26 MasterCard’s 2Kuze AgTech Platform ................................................................................................ 27 Climate Edge Resilience Building ........................................................................................................ 28 Solar Freeze Cold Storage in Kenya ........................................................................................................ 28 Kilimo Salama Technology Enabled Insurance ........................................................................................ 28 AgUnity’s Blockchain for Smallholder Farmers ....................................................................................... 29 Provenance’s supply chain transparency................................................................................................ 30 SWOT Analysis............................................................................................................................................. 31 Implementation .......................................................................................................................................... 33 Mindset, Education and Awareness ................................................................................................... 33 Stakeholder Management .................................................................................................................. 35 Mobile Payment Services .................................................................................................................... 35 The Way Forward for IoT .................................................................................................................... 36 Getting on the Blockchain ................................................................................................................... 39 Further Findings .................................................................................................................................. 39 Summary and Recommendations ............................................................................................................... 40 Appendix A. Sensor Technology.................................................................................................................. 43 Appendix B. Blockchain Solutions ............................................................................................................... 46 References .................................................................................................................................................. 50 4 EXECUTIVE SUMMARY This report provides a review of current and emerging technologies important to agriculture and analyses how these technologies may impact smallholder farmers in developing countries. Using Bangladesh as an example the report outlines the challenges facing smallholder farmers today and provides recommendations regarding how NGOs, governments and communities can leverage technology for the betterment of smallholder farming. In today’s world smallholder farmers face a growing challenge from climate change, low financial inclusion, limited access to market information, and difficulty in gaining access to a supply chain that has become increasingly capital intensive, consolidated and vertically integrated. As a consequence smallholders have become isolated from the benefits of the global market place. To ensure future success farmers need to find ways to leverage this new era of technology to increase yield, ensure financial stability and to participate in the wider agri-food system. At the same time the agri-food system must ensure that the digital rights and data ownership of smallholders is protected. The rapid advancement in technology provides a great opportunity to developing countries but it is not without risk. Joining the ag-tech revolution brings a risk from failure of early-technology or exploitation due to lack of governance, however, there exists a potentially larger risk of being excluded during this period of rapid development. By way of example, the application of mobile phone technology in subSaharan Africa has in general been very successful, with widespread use of the M-PESA phone banking system that was pioneered in Kenya now being used by millions of farmers across many developing countries. Yet a review by the Consultative Group to Assist the Poor in Bangladesh found that although mobile phone ownership is high in Bangladesh, most phones are basic models and less than 20% use mobile banking services leaving a large number of farmers excluded from the financial system. Looking forward, new technologies such as 5G, IoT and Distributed Ledger Technology (DLT) promise to disrupt the agricultural sector. DLT (also known as blockchain) is poised to integrate the supply chain from the field to the customer with a full record of information from the point of origin, each processing step, and each transaction. This transparent and secure source of information provides the opportunity for farmers to become directly integrated into the food supply chain. The secure nature of DLT also reduces the risk of corruption and with direct access to the market and with a reduced number of intermediaries it generates a better return on investment for the farmer. DLT is already being trialled in a number of developing countries, however, there is a global need for further governance and control around the implementation and use of this new technology. The emergence of 5G will in time be a massive enabler of agricultural IoT technology that is set to revolutionise the way farming is done. Precision farming made feasible through the use of 5G and IoT will initially only be available in more developed countries where the high investment cost and necessary technologies and infrastructure are not a problem. It is expected to be a further 5-10 years before 5G enabled technology starts to become accessible to farmers in developing countries. Furthermore, growth in technologies such as robotics, drones, continued advancement in nanotechnology, and satellite remote sensing, are driving new ways of farming. To leverage these new technologies in poorer rural settings will require alternative business models that make use of open source technology, open data and shared services. While the technologies mentioned above all require ‘active’ participation in the form of time, effort and usually financial investment there are existing ‘passive’ technologies that require little time or investment but can also have a major impact particularly at the lowest levels of development. Solutions such as community radio or education through community managed video media are useful in initiating the transition out of poverty. During the design and implementation of technological projects for smallholders we must consider that in Bangladesh 13% of smallholders do not have enough money for food, while 49% can only meet their basic needs. It is therefore unrealistic to expect these families to adopt new technologies without also receiving education, health and financial support. Agricultural technology should therefore not be looked at in isolation but from the perspective that considers also the wider needs of the farmer and his/her family. Today there is an urgency for the provision of affordable technological systems and tools that have the potential to empower the smallholder farmer, however, to ensure success it will be essential to also listen to the wishes of farming communities. This can be achieved through setting up empowered rural and agricultural stakeholder organisations to ensure policies and programs are aligned and meeting the needs of the farmers. Working closely with local NGOs and extension workers on the ground is an important part of this to help understand the culture, capabilities and wishes of the farming community with regards to technology. In the future, as in the past, agriculture offers a path out of poverty for a large proportion of the global population living in poverty. The integration of technology in farming can accelerate this transition and offers significantly improved prospects for smallholder farmers around the world if managed correctly. 6 INTRODUCTION The scope of this report is to facilitate the integration of new technology into smallholder farming in developing countries, with a particular focus on Bangladesh and the JOIKKO social farming franchise located in the North-Western region of Bangladesh. The intent of the report is to provide a background regarding adoption of current technologies in agriculture and an outlook of new technologies and how these might be implemented most effectively in rural smallholder settings. The implementation will look in some more detail around how these technologies may work in the specific settings of the jointly founded JOIKKO social franchise. With a population of 165 million Bangladesh is the 8th largest populated country worldwide and it continues to grow rapidly, with a rate of 1.2% year on year since 2007. During the same period Bangladesh has witnessed strong economic growth with annual GDP growth at between 5% to 7.5%. of which agriculture contributes 16% to the nations GDP while accounting for 47% of the labour force (1). Poverty is still widespread with 77% of smallholder households living in poverty and over a quarter in extreme poverty on less than $1.27 per day. Most smallholder households are only just able to meet their basic needs. Even so, agriculture has been a major driver for the reduction of poverty in Bangladesh over the last 20 years. Today the use of technology in agriculture provides a major opportunity for extensive and accelerated poverty reduction in Bangladesh. THE JOIKKO SOCIAL FRANCHISE “In 2014 VSO and Syngenta discovered a shared vision: empowering smallholder farmers to increase their yields and income and create thriving agricultural communities. Initial meetings with smallholder farmers in North West Bangladesh revealed their struggles with market prices, debt driven cycles of and a lack of agricultural extension services and knowledge. Three years on and having engaged 63 volunteers from Syngenta’s business alongside a host of international and Bangladeshi longer term volunteers, Growing Together is working with 10,000 farmers and has engaged a range of new partners along the way. The collaboration has co-created a project based on three areas: community development, agronomic training and access to markets. Pivotal to the success of the project has been the constructions of six for-profit farmer centers which provide access to training, machinery, quality inputs and new financial services. The Farmer Centers also facilitate contracts with national and international buyers. By growing and selling together farmers have improved the quality and quantity of their yields and are able to negotiate better prices for their collective crops. Farmer Centers are run by Entrepreneurs and are supported by mobile Agri-Entrepreneurs who take the services up 5km out into the villages to ensure no one is left behind. The project is advancing its ambition to form a social franchise that holds a growing network of Farmer Centers to account through a standard catalog of fee and no fee based services. Central to the model is the nested value chain concept that encourages interactions and investments in farming communities that benefit the whole market system. For example, Kellogg’s who source potatoes for Pringles have provided training for Growing Together farmers through their local consultancy partner Seba. The farmer wins because more of their crop meets the criteria for Kellogg’s to purchase the potato and Kellogg’s win because they are able to source a higher quantity of quality of potato from one place. In this way, each actor in the chain has a vested interest in the success and viability of farming and farming communities.” The target of this report is to identify and review potential future technologies that can help to accelerate smallholder farmers along this development path. STATUS OF SMALLHOLDER FARMING IN BANGLADESH CGAP’s smallholder household survey identifies four different segments, Farming for sustenance (27%), Battling the elements (31%), Options for growth (31%), and Strategic agricultural entrepreneurship (11%). It’s key to understand the position of these different sectors during the design, development and implementation of technological solutions. To be successful a solution needs to consider which segment(s) it is targeting and how it will enable smallholders to transition from one stage to the next. It was also found that financial inclusion is strongly dependent on the segment that is both a threat and opportunity for new technological solutions. Farming for sustenance Battling the elements Options for growth Strategic agricultural entrepreneurship • Most disadvantaged and vulnerable smallholder segment • Challenged by limited education, but less poor and exposed to risk than Farming for Sustenance segment Near universal mobile phone ownership • Increased stability and insulation from unexpected events, relative to the first two segments. • Engaged in highly diverse, successful agricultural activities • Rely on agricultural activities for their wellbeing • Little education and limited access to emergency funds • Most live in extreme poverty line • Least financially included • More access to financial tools, particularly mobile money, and more diversity in how they save • More live above the poverty line and have access to emergency funds • Strong reliance on agricultural income, but could pivot out of agriculture • Mobile phone ownership is universal • Most stable and economically well-off segment • Many income sources and the highest mean income, with none living in extreme poverty • More financial tools at hand Financial Inclusion Financial Inclusion Financial Inclusion Financial Inclusion 29% 38% 59% 69% Table 1 Adapted from Financial Innovation for Smallholder Households Data Source: CGAP National Survey of Smallholder Households in Bangladesh (2). Smallholder farmers in developing countries, including Bangladesh, face many of the same challenges to lift themselves out of the poverty trap and to establish a secure future for themselves and their families. Smallholders face risks regarding the reliability of crop yield due to adverse weather conditions increasingly driven by climate change; post-harvest losses through poor storage and transport; market losses driven by asymmetry of information; and financial instability with historically poor access to financial services. Typically, weather related events, including pests and disease, pose the largest threat to smallholder farmers. Dealing with these events when they happen tends to be managed through informal borrowing, such as selling of assets including livestock or stored crops. Also in many cases little or nothing is done, either due to lack of resources or simply not realising that something can be done. 8 Exposure to price fluctuations, either of market prices or farm inputs, have become the second most significant threat. In a recent report The Food and Agriculture Organisation (3) also highlighted the increasing difficulty for small holders to access the supply chain where the market has become increasingly capital intensive, vertically integrated and consolidated under control of fewer major players. The use of large scale automation and integration from production to distribution has made it more challenging for small-scale produces to get a look in. Risks and challenges facing smallholder farmers include: • • Climate related risks: o Risk of catastrophic weather events such as flood or drought o Risk from weather driven impacts including crop pests or disease o While climate change is driving an increase in the likelihood and severity of these weather related events Market Related Risks: o Low to no market presence requires smallholders to rely on a chain of intermediaries which leads to inflated costs, increased risk of corruption, and lack of traceability (4) o Cash transactions are slow, costly and labour-intensive, and create cash-flow constraints for small scale producers (5) o Insufficient or unreliable market price information or trends places a high risk of priceloss through the asymmetry of information • Risk of poor quality or counterfeit farm inputs • Post-harvest losses due to poor post-harvest storage, reliability of transportation and/or coordination with the market fluctuations Financial stability is a major issue with less than a quarter of smallholders owning a bank account, most of them believing they don’t need one as they don’t own enough money or do not make a sufficient amount of transactions to warrant owning a bank account. This is especially true for women, who contribute a significant part of the workforce and often lack formal identification and/or recognition which can make it especially difficult to get access to finance and/or take ownership of financial related decisions (6) (7). This is an issue as about 2 out of 5 smallholders have outstanding loans which they take out primarily to deal with emergencies or to buy necessary farm inputs with use of informal loans that can put smallholders at risk of corruption. Of the available financial service providers, smallholders consider banks as the most trusted, followed by friends and family and then micro-finance institutions, while mobile money facilities still need to do more work to foster trust. Ultimately, the current state of financial inclusion in Bangladesh finds that less than half (45%) of smallholders have some form of formal financial service integration. With MFIs now driving the bulk of financial inclusion (31%), followed by mobile money accounts (19%) bank (22%) contributing each a similar amount. 9 OUTLOOK FOR SMALLHOLDERS In summary, smallholders have become isolated from the benefits of a global market place. Looking to the future it will be the ability of smallholder farmers to utilise digital data and information in the management of the farm and access to the food supply chain that will measure the level of their success and their participation in the agri-food system. As systems around the globe transition to fully digitised platforms for information and knowledge exchange, digital market places, financial services and trade and transactions there is a risk that rural farming will become more isolated. At the same time the digital revolution poses enormous opportunity for those currently left behind to get immediate and direct access to a wealth of services provided by the digital economy if some of the initial challenges can be overcome. The data driven agri-food chain must ensure a symmetry in use of data that is fair and equitable between all stakeholders and not monopolised by large corporations. There is an urgency for datadriven systems that are ready, available and affordable to smallholders that meet the specific and local relevant needs of the smallholder. Lastly it is important that the digital rights of farmers are protected and that the value of data owned and/or provided by farmers is fairly used, distributed and aggregated with clear representation of smallholder rights (8). STATUS OF BANGLADESH’S INFORMATION, TECHNOLOGY AND COMMUNICATION Vision 2021 is Bangladesh’s political vision of the country in 2021, the country’s golden jubilee year. A key part of this vision, “Digital Bangladesh” is the agenda set out to transform the nations Information, Technology and Communications (ICT) sector. The mobile connectivity has grown steadily over the last 10 years with 60% of the population predicted to have subscribed to a mobile service by 2020. The mobile network operators in Bangladesh include Grameenphone (45% market share), Robi (29%), Banglalink (23%) and Teletalk (2%) with Qubee, Banglalion Communications and Ollo operating as 4G internet service providers (9). The market is predominantly pre-paid with very low subscriber payments around $3.13 per month. Coverage is mostly 3G with 90% of the population covered. Smartphone adoption is driven by the local brands Symphony and Walton which provide comparatively affordable devices. Mobile internet adoption is low for the region at 33% penetration with affordability barrier being exacerbated by misconception of the benefits and costs. The Infrastructure Sharing pilot project is a GSMA led initiative to expand 3G coverage in rural Bangladesh. The industry will deploy 20 pilot sites across Bangladesh to prove the concept of network sharing through multi-operator radio access network (9). A key part of the digital agenda is being driven by a2i, a government programme to drive innovation in the area of public services and simplification of the government. A2i has provided funding to many agriculture technology focussed projects and may be a resource in the future. The Internet of Things (IoT) was formally recognised by Bangladesh in publication of the directive issued by the Bangladesh Telecommunication Regulatory Commission (BTRC) in April 2018. The commission 10 defines nine sectors, including agriculture, within which IoT can be used1. However, Bangladesh faces a number of challenges to the implementation of IoT technology, notably, ICT infrastructure, technology skilled people, unreliable power, and financial investment. However, there is progress and investment is coming with companies such as DataSoft and Cloudly InfoTech leading the way. AGRICULTURE RELEVANT TECHNOLOGIES The fourth revolution is generating a plethora of new networked technology that is both a threat and opportunity to the agricultural supply chain. Not being part of this fast developing area or coming late to adopt these new technologies risks being left outside of the system making is perpetually harder to survive and compete. However, on the other side, there is also a risk to adopting new technologies too soon, especially when the environment is changing so fast it becomes difficult to predict which products and services will be successful and what will fail in the long-run. Although there is risk the upside is enormous, with new technologies promising to improve yield, deliver frictionless trade and market access, greatly reduced costs, and deliver improved education and information sharing. In the following section new and existing technologies are introduced and the role they can play to benefit smallholder farmers is summarised. MOBILE PHONES Mobile phones have been utilised in supporting smallholders in developing countries for a number of years now with varied levels of success. Although there is a cost barrier to entry the prices are continually coming down and the availability of reconditioned phones increases (10). In some cases NGOs are also making phones available for free to help smallholders make that first step into technology supported farming. M-Pesa was the first truly successful mobile based payment scheme which was launched by Vodafone in Kenya in 2007. It is has been tremendously successful in providing access to finance in developing countries and provides the backbone for further services. The mobile service allows users to make deposits, withdraw, transfer money and also pay for products and services with a mobile device. It has expanded into many developing markets and now has over 30 million users in 10 African countries (11). The M-Pesa platform also allows for 3rd party integration of other services thus providing support for innovation and expansion of new services leveraging new technologies. In Bangladesh, according to the National Survey and Segmentation of Smallholder Households in Bangladesh performed by Consultative Group to Assist the Poor (a partnership of organizations at the World Bank) smallholder ownership of mobile phones is high at 73% , or 92% per household (of these phones 62% are basic models, 35% feature phones and only 7% smart phones). This has strong implications for the design and implementation of any digital service, as literacy levels are low making extensive use of SMS a potential blocking point, yet without the availability of smart phones use of image based services, e.g. for easy selection of products, creates a potential hurdle to be overcome. 1 Challenges before IoT in Bangladesh, The Financial Express https://thefinancialexpress.com.bd/views/challenges-before-iot-in-bangladesh-1532880691 11 While awareness of mobile money is high (80%) with many also believing the benefits the uptake of the mobile money lags severely behind with only 19% of smallholders in fact owning a mobile money account (2). According to CGAP (2) in Bangladesh “the most frequent uses of mobile phones for smallholders relate to communication. Nearly all smallholders with access to a mobile phone made or received calls within the week before the survey, and 34% texted within a month. Fewer smallholders with mobile phones have used their phones for financial transactions. Only 5% of smallholders used a mobile phone for financial transactions within the week before the survey.” Of those that see the benefits of holding a mobile money account, the major attraction is the ability to send/receive money to/from family and friends, followed by the ability to save money, and to reduce time to settle bills for payments. Although there is a positive attitude towards owning a mobile phone for communications, there remains a wariness towards using the phone for financial transactions despite the apparent benefits. 5G NETWORK 5G is the fifth generation of the mobile network systems and has been designed to enable the technological revolution, meeting the demands of society and business to become better connected, and to facilitate the internet of things, smart cities, and more. 5G is expected to be commercially launched in 2020 with widespread access becoming available from 2025 onwards. 5G will work in tandem with the existing 4G LTE network, where devices will connect to both networks, the 4G network providing control and signal services while 5G provides increased data connectivity. As with earlier networks, 5G uses radio wave transmission to communicate voice and data, but 5G has shifted to use shorter wavelengths (higher frequency) allowing for much higher bandwidth and faster connectivity. As well as greatly increased data transmission speed the 5G network brings much improved response times or low latency, which has come down from 20-30ms on the 4G LTE network to 4-5ms for 5G mobile broadband and 1ms for URLLC (Ultra Reliable Low Latency Communications) systems. These enhancements to the mobile network create new possibilities and potential uses of 5G. EMF2 describe three major categories of use case for 5G: 2 • Massive machine to machine communications – also called the Internet of Things (IoT) that involves connecting billions of devices without human intervention at a scale not seen before. This has the potential to revolutionise modern industrial processes and applications including agriculture, manufacturing and business communications. • Ultra-reliable low latency communications – mission critical including real-time control of devices, industrial robotics, vehicle to vehicle communications and safety systems, autonomous driving and safer transport networks. Low latency communications also opens up a new world where remote medical care, procedures, and treatment are all possible EMF Explained Series http://www.emfexplained.info 12 • Enhanced mobile broadband – providing significantly faster data speeds and greater capacity keeping the world connected. New applications will include fixed wireless internet access for homes, outdoor broadcast applications without the need for broadcast vans, and greater connectivity for people on the move. The shift to shorter wavelengths while increasing bandwidth, decreases range (esp. at the mm wavelengths), thus while utilising the existing macro mobile antenna network 5G will also use small cells. Clusters of these small cells will provide increased connectivity over the range of 10-100m in locations where high connectivity is required. “More than just a performance enhancement, mmwave allows for high resolution and pinpoint accuracy, enabling the type of widescale and precise interconnectivity required for connected cities, factories and high-density event.” 3 Fixed Wireless Access (FWA) that has been available prior to 5G in places lacking in wired fibre-optic broadband will also be rolled out providing access to consumers in previously remote or unconnected locations. In time FWA may become an option for rural communities, it was estimated (12) recently that 5G-based FWA could reduce the initial cost of establishing last-mile connectivity by up to 40%, while also reducing the rollout time compared to fixed-line fibre optic. In future, the agricultural sector is well positioned to exploit the 5G technology. Currently smart agriculture utilises Low Power Wide Area Networks (LPWAN) such as NB-IoT, or LoRa to support connectivity across fields. This will be replaced by 5G systems that will enable high density connectivity and fast data transmission, allowing for a proliferation of field based IoT integration and farm automation. PRECISION FARMING SYSTEMS (PFS) Precision farming is the use of sensors to monitor and provide feedback on crop growth, disease risk and soil condition to allow farmers to respond in an accurate and measured way, providing targeted delivery of farm inputs. This leads to optimised use of farm inputs, maximised yield, and more sustainable farm management. PFS is being adopted more and more in developed countries to help in efficient farm management but due to the high investment costs, as well as availability of necessary technologies and ICT infrastructure it has not been widely adopted in developing countries (13). This may be about to change with the advent of IoT and the reducing costs to manufacture smart devices. INTERNET OF THINGS (IOT) IoT devices provide the link from the digital world to the real-world via arrays of sensors and monitoring devices that collect and disseminate data automatically over a network. It was recently estimated that over 125 billion devices will become connected to the internet by 20304. The capability of IoT devices 3 5G Rollout: A Realistic View https://www.networkcomputing.com/wireless-infrastructure/5g-rolloutrealistic-view/1071974019 4 Number of Connected IoT Devices Will Surge to 125 Billion by 2030, IHS Markit Says https://technology.ihs.com/596542/number-of-connected-iot-devices-will-surge-to-125-billion-by-2030ihs-markit-says 13 will be massively enhanced through the provision of high-density connectivity provided via 5G networks that will allow the deployment of many ‘low-cost’ devices each able to transmit small amounts of data. The benefits of IoT in agriculture have been well capture by Beecham Research and Libelium (14). • Understanding the factors that govern crop growth and yields, hence improving yields and reducing crop losses through disease or adverse weather. • Saving costs by limiting the use of fertilisers and pesticides and other consumables needed for production, only applying when necessary. Some national and international regulations limit the use of fertilizers so farmers have to know their waste to schedule the usage³. • Optimising the use of water to reduce waste in order to save resources and therefore costs which affect an already low-margin business like farming. • Offering a better quality of life and reducing hard labour to attract young generations of farmers. Repopulation in rural areas needs human resources dedicated to agricultural activity, to that end, it is vital that technological investment provides the best life quality conditions in saving time and physical presence for the care of crops. • Precise scheduling of harvesting. To obtain the greatest benefits from crops, farmers need to know the right time when the plot is ready to be harvested. By this way, they can plan the number and time of each yield. • Post-harvest and similar techniques could be helpful in the food supply industry, optimising processing, reducing costs and limiting spoilage as product makes its way to the consumer. The architecture of a typical IoT ecosystem contains the field sensor, an application interface, the internet gateway, cloud storage solution, and the computer analysis on which farm management decisions are based. Smart farming is enabled through a network of IoT devices that are the senses of a larger feedback mechanism that bring the farm to life. As information comes into the network it is automatically processed utilising agronomic insights and in some cases artificial intelligence to extract the value and knowledge from the data. In some cases this knowledge is acted on automatically in machine to machine (M2M) networks that trigger an action such as to initiate irrigation in the case that soil moisture has reduced to levels detrimental to the crop. In other cases, the data is stored and sent to the farmer or an analyst to do the interpretation, perhaps to gauge the presence of a crop disease and carry out targeted spraying based on the insights provided by the sensor network. To achieve this requires a 14 communication loop between the IoT sensors in the field and the central computers and humans performing the interpretation and initiating action as required. IoT may help rural communities in a wide range of areas not limited to agriculture but also through improving livelihoods which can indirectly improve rural smallholder farming. Services related to health, environment, workplace safety and social security should all be considered when seting up an IoT ecosystem (15). How these benefits will be realised is determined by the types of solutions available and how they can be implemented in rural locations. Intel, who have developed their own IoT platform, Infiswift5, provides a useful broad set of use cases that demonstrate the potential to accelerate farming to adopt more efficient agricultural operations. Common Use Cases of IoT in Agriculture Food distribution Align harvest availability with transportation to help eliminate Accurate forecasting Inventory management Supply chain and distribution Weather planning Process automation Asset management Environmental monitoring Livestock monitoring Notification and alerts idle time and improve lot traceability Monitor actual vs projected harvest in near-real-time Track status of livestock, levels of stored grain, and more in near-real-time Operate more profitably based on market signals and just-intime distribution Integrate weather data to make better decisions Take actions automatically based on data (e.g. schedule sprinklers) Monitor farm vehicles and machines to optimize operations and manage preventative maintenance (e.g. optimize harvester routes using GPS) Monitor soil conditions, nutrients, irrigation, and growth patterns; monitor for disease, insect, and week issues to take preventative measures Monitor variables such as body temperature, animal activity, pulse, food intake and GPS position Send automatic alerts or take action based on predefined events (e.g. if a cow is ready for reproduction, identify it for recall from the field) The sensors that enable agricultural IoT devices are Micro Electromechanical Systems (MEMS). MEMS are chips that combine electronics, micro-mechanical structures, energy harvesters and sensors constructed at a microscopic scale to create complete computing units that are micrometres to millimetres in size. The benefit of MEMS is their low cost to produce, low energy consumption usually with integrated solar power or other energy harvesting technology, small size, and their ease to install and robust nature allowing them to survive for years in the field. MEMS not only collect and communicate data from their environment but also include computing logic that enables the processing of data to be done in-situ reducing the need to transfer large quantities of raw data. 5 Infiswift https://infiswiftsolutions.com/ 15 MEMS sensors include accelerometers, GPS, gyroscope, magnetometers and are able to detect temperature, humidity, wind speed and direction, pressure, soil PH and moisture levels. Movement detection allows MEMS to monitor plant growth to livestock movement that can be linked to health or a sign of ovulation in livestock and linked to alerting systems. MEMS may also integrate laboratory measurements and diagnostics referred to as Lab on a Chip (LOC) technology that can detect the presence of toxins or viruses and thus can be utilised to detect disease risk (16). MEMS may also be applied to address wider issues including environmental monitoring (air, water and soil pollution), logistics and catastrophe monitoring. At the top end of the market solutions such as that provided by Arable’s Mark6 sensor technology allows farmers to incorporate a multi-field sensor with over 40 metrics into a single device that is accessible via cellular connectivity. Other solutions include BeanIoT’s7 sensor that is being employed to monitor the condition of grain silos. The small device is placed inside the silos and returns information on the temperature, moisture levels, air quality, gas levels and movement of the grain. On detecting unusual values an alert is automatically sent to a mobile phone. Development of low-cost IoT is also being developed for smallholders such as the GreenSeeker®8 sensor which indirectly monitors the level of available nitrogen through measuring the levels of chlorophyll in the plants. Using this data the device allows farmers to determine when and also where to apply fertiliser. The use of satellite remote sensing has been evolving over a number of years and is in active use for a number of years in developed countries. Although services are beginning to role out across developed countries it is still not a scalable solution locally due to high up-front investment and computing power although some pilot schemes are testing the concept such as Earth-i and ACCORD9. A well-presented overview of IoT technology and its application to rural agriculture has can be found in the paper by Dlodlo and Kalezhi (17). DISTRIBUTED LEDGER TECHNOLOGY (DLT) With the advent of blockchain integrated supply chain management is becoming a reality. In future data collected by IoT devices on the farm and integrated in the supply chain will be seamlessly and transparently saved to a distributed ledger that provides a full and immutable record of the crops growth history, quality, certification (e.g. organic or fair trade), yield and processing information. Directly available to the market, transactions can take place in a transparent and secure environment, while at the same time informing a transportation company of the time and point of sale for pick-up and delivery, avoiding post-harvest spoilage and completing all transactions automatically while avoiding use of intermediaries and keeping a full audit trail. 6 Arable Mark https://www.arable.com/ BeanIoT http://www.beaniot.com/ 8 GreenSeeker https://www.mdpi.com/2077-0472/8/4/48/htm 9 Earth-i and ACCORD https://earthi.space/blog/drinking-better-coffee-pays-off/ 7 16 DLT was first used as the basis of crypto-currencies and can be defined as a distributed, decentralised ledger that, when combined with a digital transaction validation process, allows for peer-to-peer electronic transfer of an asset without the need for an intermediary, such as a bank (18). The Distributed Ledger Technology (DLT) brings many potential opportunities to agriculture. How it works To see the potential uses of DLT it helps to understand a little about how it works. As explained further by (19) there are three qualities of DLT that define its capabilities. The DLT relies on a decentralised network for the processing, validation, and storage of data entries compared to existing financial transactions that rely on a central clearing house to manage the process, to clear, settle and record transactions. This process often relies on manual inputs that are both susceptible to errors and fraud and is also an inherently slow process that incurs an effort and a cost. It also introduces a dependence on a single institute that controls the sharing and validation of the data. The DLT instead relies on a consensus mechanism that requires validators on the network, which can be any user with access, to verify the entries to the shared ledger according to a consensus algorithm. It is thus an automated process that is efficient and without the need for intermediaries, greatly reducing cost and time of transactions. DLT is based on cryptography. Each data entry or record is timestamped and given a cryptographic fingerprint. These cryptographic stamps or hashes are linked in sequence, or a chain, and stored securely across the distributed computers. The cryptographic storage of records across the network ensures the data remains secure and immutable and any attempt by a single user to corrupt the records would be immediately visible to all other users across the network. The data stored on the distributed ledger is accessible to anyone on the network making all entries or transactions transparent and traceable. The rules of the DLT will determine who has access to view the data and is managed through the use of private and public keys (20). 17 “For example, if a farmer wants to share their credit history that is registered on the distributed ledger with a lender such as a bank, then they could use the bank’s public key to encrypt and send the data to the bank; the bank would use its corresponding private key to decrypt and read the information. In addition, the bank could verify that the data actually belongs to the farmer by using the farmer’s public key. Ultimately, access to data in the DLT can be shared or private, depending on the rules of the DLT (which are based on the purpose of the platform) and the users’ choices.” (19) The two types of DLT: Public and Private. Public DLT is open to everyone, anyone can access the network and view the complete ledger transaction history, can make transactions and can also participate to the consensus mechanism. The crypto-currencies, Bitcoin and Ethereum, are both currently based on public DLT. These are truly opendecentralised systems in which no one can control the sharing of information. A disadvantage of such anonymous access is it potentially allows malicious users to also enter the network (21). Therefore, these public ledgers may not work in a process that holds sensitive information that is not open to the public. Private DLT is permission based with access to the network controlled – users and validators are identified and known to the ledger. A key difference with the public ledgers, is that instead of anonymous users, the validation of transactions is performed by already authenticated legal entities (22). Lastly there are some important differences in the type of consensus algorithm used to validate entries to the DLT that should be understood. Public DLTs use either ‘proof of work’ or ‘proof of stake’ methodologies. The ‘proof of work’ algorithm by design utilises very high computing power and takes time which undermines its sustainability and value to as a business focussed system. The BitCoin network utilises ‘proof of concept’ which has raised many questions over its potential sustainability with rapidly increasing energy consumption being used in the consensus validation process which currently is estimated to consume over 73TWh per year, more than the country of Austria (23). The alternative ‘proof of stake’ algorithm is a more efficient methodology that is being adapted by Ethereum and others. Private DLTs use either ‘lottery based’ or ‘voting based’ algorithms, the former being highly scalable but take more time to finalise validations, and the contrary for the latter protocol. ‘Smart Contracts’ can be described as digitally inscribed contracts that trigger automatically according to a pre-defined and agreed set of principles that have been written into code (20). Although not limited to DLT the nature of DLT lends itself to the application of smart contracts. Smart contracts remove the necessity of a central authority to clear and settle transactions on behalf of the participants of the contract reducing both time and cost. Smart contracts work best when based on relatively simple statements, such as “if-then”, which trigger automatically based on external agreed metrics. Insurance contracts are a good fit, for example, a famer may insure his crops against flood damage, the payment is automatically triggered when the rainfall in the location of his fields exceeds a pre-agreed threshold level within a given time period. Smart contracts have immense potential both through generating efficiencies in existing businesses but also provides opportunities for new business models to leverage DLTs capability to manage smart contracts. 18 DLT may also facilitate social representation through secure voting at local and regional levels. DLT as a secure means for voting is currently being explored by a number of governments and private initiatives10 that could in future be effectively leveraged in developing countries that may be more quick to adopt electronic voting as a means to get around infrastructure challenges of traditional voting procedures. The ability for smallholders to vote via mobile phones would allow a far larger proportion of the rural population to be represented at local government and steer local or regional initiatives. In a recent report (24) by Stanford Graduate School of Business in collaboration with RippleWorks it was found that investments into DLT for agriculture are still in early stages with the majority being invested in Europe, US and Australia, but with pilots and small scale projects occurring in more than 13 countries. Currently a selection of large food suppliers, including Dole, Driscoll’s Golden State Foods, Kroger, McCormick and Neltlé, Tyson Foods and Walmart, are collaborating with IBM on developing and testing DLT technology. The pilot project demonstrated tracking of mangoes from supermarket to the farm which traditionally took close to a week was possible in a couple of seconds (25). Other examples of major DLT projects include IBM’s Hyperledger trade and finance platform (26) and lastly a group of large banks and corporates are testing the Ethereum-based blockchain solution developed by Provenance (27). “Investments in blockchain for Agriculture are early stage. Most initiatives are less than two years old, and none are currently reaching more than 1,000 beneficiaries; 93% are either in concept stage or have started a small pilot.” (24) One of the most recent proposed uses of DLTs is the fractional ownership11 of otherwise indivisible assets. This is not a new concept but the use of DLT would enable some unique possibilities while also ensuring robust security. The fractional ownership is recorded on the DLT using the fractional property of digital tokens. These tokens allow smallholders to purchase and sell part of the asset by signing over digital ownership. Combined with DLTs ability to manage transactions automatically, often referred to as smart contracts, provides the prospect of automating the management of the contract, maybe towards a collective insurance contract. DIGITAL ANCHORING AND TRACKING DLT has been identified as the solution to solve traceability issues in the supply chain by creating an immutable and decentralised database to track products from source to market. Yet to achieve this it is necessary to uniquely identify and link the product to the DLT or blockchain – this is a critical step to link the digital world to the real-world reducing fraud and eliminating the possibility to counterfeit or fake products. Passive Radio-Frequency Identification (RFID) or Near Field Communication (NFC) tags have long been used for identifying and tracking products, places, and transactions (28). RFIDs work by transmitting a small packet of data when they come into range of a RFID reader. The passive RFID does not require a 10 Meet the Man With a Radical Plan for Blockchain Voting https://www.wired.com/story/santiago-siriradical-plan-for-blockchain-voting/ 11 Fractional Ownership https://www.ethnews.com/collective-fractional-ownership-a-proposedblockchain-use-case 19 battery but utilises the power of the reader to communicate. Passive RFIDs tags are used to track assets through various check-points at which they identify themselves through a unique identification number. They are very low cost and widely used. Crypto-anchors are the future of tracking and traceability technology that when combined together with DLT will ensure authenticity of products. The DLT alone cannot solve the issue of provenance – it is first necessary to uniquely identify the product and tie it to the DLT so that it can be securely tracked along the supply chain. IBM is currently researching different techniques, called crypto-anchors, that enable the secure labelling of products from start to finish. The crypto-anchor is a tamper-proof, digital footprint that is securely embedded in the product and then linked to a DLT solution. Cyrpto-anchors can take different forms, from a micro-computer chip or optical codes. “For example, crypto-anchors can be embedded into an edible shade of magnetic ink, which can be used to dye a malaria pill. The code could become active and visible from a drop of water letting a consumer know it is authentic and safe to consume. Crypto-anchors are highly secure because they are embedded in the product and consist of cryptographic mechanisms that provide unclonable identification.” (29) Some crypto-anchors will take a step further. IBM’s edge designed device is the smallest computer in the world with capability to monitor, analyse and communicate. The device, that is smaller than a grain of rice, has the computing power of an x86 processor from the 1990s yet the production costs less than 10 cents. The device can be used to verify authenticity but also how the product has been handled throughout its journey. In some cases it is not even necessary to label a product with a specific cryptoanchor as the material or DNA of the product itself is unique. AI algorithms have been developed to work in conjunction with a specialist optical detector on a mobile device (smartphone) that learns to identify the optical signature of some objects and can even detect the presence of DNA sequences in minutes. OTHER TECHNOLOGY DEVICES Open Source Solutions Open source resources are becoming more popular as the concept of shared repositories of software, data or intellectual property have been proven to work allowing for widespread use and contributions around a common objective. The concept has been around for many years with regards to technology, in particular software development, but it is now widening out to also include mainstream topics including agriculture. The provision of open data to support the development and implementation of new solutions, such as evidence based climate resilience or crop disease models, which are now also stemming from the combination of big data and artificial intelligence working together, are being supported by resources such as the Platform for Big Data in Agriculture12 There is still some way to go regarding open source technology to support IoT implementation suitable for smallholder farmers but it is worth investigating because the impact of scaling open source IoT in 12 Platform for Big Data in Agriculture https://bigdata.cgiar.org 20 agriculture is potentially enormous. One such case study (30) uses freely available remote sensing data from the Sentinel-2A satellite combined with software (SNAP Toolbox) that monitors crop biophysical and growth conditions in Ghana. This case study successfully demonstrates the potential impact of such integrated solutions and provides recommendations for wider application as a decisions support system for smallholder farmers in resource-poor settings. A further in depth discussion and implementation guide for open source technology in sub-Saharan Africa has been provided by (31) that could be taken as a template for a scalable open source solution for low-cost IoT implementation. Finally, it is worth to note the UN provides a resource on open source software and technology called Free and Open Source Software (FOSS)13 as a key driver for their Sustainable Development Goals (SDG). Robotics and Drones Other technology used in agriculture or being developed include UAVs/drones and robots. For example, milking robots have already been used successfully in the dairy industry while harvesting technology is being developed for use in the field (32). Similarly, drones are being actively used to monitor crop development and stresses in the field to optimise use of farm inputs and provide warning of disease stress (33). These technologies require significant investment and/or further development and it is expected to be some years before they become viable solutions for smallholder farming in developing countries. Nano-Technology in Agriculture and Food Production There exists a whole domain of nano-technology in agriculture and food production that will transform the way food is produced, processed, packaged, transported and consumed. Although not the remit of this report it is worth to bear in mind the implications of nano-technology and its role in the future of agriculture and food production (34) (35). Radio and Video Technology Radio is an old technology but it is widely accessible in Bangladesh and thus it is worth mentioning. It is a proven technology and is a trusted source of information that has been successfully leveraged by NGOs for community oriented projects14 and has been part of a major national strategy to improve communications and help contribute to the UN’s SDG. More recently radio has been involved in catastrophe aversion15 and growing women’s role in community through engagement in community radio (36). In Bangladesh there currently exist 16 different community radio stations across the country reaching up to 4.6 million listeners. The radio stations employ over 500 women and youth that are now working as rural community broadcasters. Video capture and screening of community relevant best practices is now also a realistic and viable option. With the advancement in camera technology the cost creating short topic specific films is 13 UN FOSS https://www.un-ilibrary.org/environment-and-climate-change/free-and-open-sourcesoftware-and-technology-for-sustainable-development_4b723edb-en 14 Bangladesh NGOs Network for Radio and Communication https://bnnrc.net/ 15 In Bangladesh, radio saves the day http://www.undp.org/content/undp/en/home/ourwork/ourstories/on-the-air-out-of-danger-inbangladesh.html 21 relatively low, making it a viable option to many communities that can use this technology to share bestpractice and health advice in a friendly format that has been expertly demonstrated by Digital Green16 CASE STUDIES MOBILE PHONE SERVICES IN BANGLADESH Bangalink17, a Bangladesh mobile service provider has developed two mobile based services for farmers. The first called Krishi Jigyasha (7676) provides a call centre for farmers to obtain advice and solutions to agriculture related problems. The second service called Krishibazaar (2474) is a virtual market place that is enabled through application of IVR (interactive voice response) technology. This service provides those registered with the latest market prices (updated weekly) from 7 of the major markets across Bangladesh. The service also allows buyers and sellers of agricultural products to login and post or browse agricultural related products. The service provides information about the products as well as location and puts the buyers and sellers in direct contact with the option to immediately call to inquire or close a deal. This service is limited to Bangalink customers only thus limiting the potential range of buyers and sellers able to access the virtual market place. Furthermore, Bangalink provides the platform but takes no accountability for information on the products. This leaves space for misinformation and potential fraud, which may introduce a lack of trust in the service. It does not indicate if there is a ranking or rating of sellers and buyers as many internet market platforms (e.g. Amazon, Ebay) have adopted in order to develop trust. Other reasons the service may not be suitable is that calls are charged and in order to be accessible all the time it is required that registered users keep their phones turned on at all times. Grameenphone18 has a similar subscription service accessed through calling 27676 for a weekly fee. Farmers will receive advice from agricultural experts on crop cultivation, raising poultry and livestock, pisciculture, and nutrition information. There is also an agriculture advice hotline that can be called even without registration at a higher rate. Finally, the service provider Robi19 also provides service based on the same setup but includes a wider scope of expertise not limited to season specific agriculture but also including education and health information, daily weather forecasts and information on government and NGO facilities. BANGLADESH NGOS NETWORK FOR RADIO AND COMMUNICATION (BNNRC) Bangladesh NGOs Network for Radio and Communication(BNNRC)20 is a National Apex Body on Community Media Development Working for Building a Democratic Society based on the Principles of 16 Digital Green http://www.digitalgreen.org/ Bangalink https://www.banglalink.net/en/about-us/compliance-and-csr/services-for-society/mobileagriculture-service 18 Grameenphone https://www.grameenphone.com/personal/digital-services/other-services/agri-infoservice 19 Robi https://www.robi.com.bd/vas/information-services/robi-krishibarta?lang=eng 20 Bangladesh NGOs Network for Radio and Communication(BNNRC) https://bnnrc.net/ 17 22 Free Flow of Information, Equitable and Affordable Access to Information and Communication Technology (ICT) for remote and marginalized population. A very simple yet effective use of a tried and tested technology has been the creation of the Community Rural Radio Krishi Radio 98.8 (37), which is currently the only government community radio, that was established by Agricultural Information Service. The station discusses all types of topics including Agriculture, Trade, Education of the community, Health & Society, Women Rights, Rural Development, Environment, Weather and Culture. The station also attends events and works with government and non-government organisations and has a very large following with a large number of listeners calling in every day. The radio was set up as part of the governments rural radio project and assisted by the UN’s FAO. Station members and volunteers have also been taking part in training on human rights and disaster damage reduction. “Farmers of the community are very much hopeful with Krishi Radio, with one vegetable farmer saying that no one will be able to cheat them now, as they can know details of the daily market price through this radio. Station Manager of Krishi Radio, inormed that as a non profitable organization, the radio broadcast programs on Agriculture, Trade, Education of the community, Health & Society, Women Rights, Rural Development, Environment, Weather and Culture. 10 officials and employees from the agricultural division have been working as full time workers at the station. Moreover, 60 volunteers of the station are being trained by Bangladesh NGO’s Network for Radio and Communication, and some other organizations. Krishi Radio is now airing programs between the hours of 9am to 11am and 3pm to 5pm. A news program, comprising of local, national and international news, is aired everyday at 4pm.” (37) Challenges still exist though, as despite technical training the radio station lacks skilled manpower, suffers from electricity disruption as well as high electricity bills, and struggles with low listener levels beyond the immediate region of Upajilla sadar. DIGITAL GREEN’S21 COMMUNITY VIDEO LEARNING Digital Green is an non-profit spin-off of Microsoft’s Technology for Emerging Markets division in India and is also supported by The Bill and Melinda Gates Foundation, USAID, Google, Oracle, and Cisco. The ambition of Digital Green is to improve the efficiency of sharing information between smallholder farmers in rural India and now also in other developing countries around the world. It has adopted a multi-pronged approach to leverage technology to enable those in poverty. It combines education through community videos, efficient transport and sale of produce, training support, data collection and insights, and innovation. Community Videos has disseminated over 6,000 locally relevant videos in more than 50 languages to more than 1 million farmers in collaboration with grassroots partners, public and private extension services, and smallholder farmers. 21 Digital Green http://www.digitalgreen.org/ 23 Operating Model Digital Green partners with local extension services already in place that work closely with the smallholders. They select local people, usually farmers, from the community to train in video production and sharing. Once trained they create locally relevant videos on farming best practice, financial inclusion, institution building and also other non-farm practices that is then shared with the local community. To aid the dissemination of the content local smallholder representatives are provided with small battery-operated projectors with which they can hold regular screenings of various video content with small smallholder groups. The videos are produced in sequence to aid learning and feedback is collected and used to continually improve the content. Case Study: Manju Devi Manju Devi, is a resident of Ababkarpur village in Bihar, India. An agricultural labourer, she is the main income earner for her family of eight, which includes three young grandchildren. Before being exposed to Community Videos through Digital Green she struggled. “A large portion of my income was spent to purchase vegetables. I would almost spend 50-60 INR every day at the haat (village market).” Things turned around for Manju Devi after Sudhir Kumar, a frontline worker associated with the Bihar Rural Livelihoods Promotion Society and trained by Digital Green, screened a video about sack farming in 2015. Manju Devi resolved to try it and watched many Digital Green videos, she now has six flourishing sack gardens, which she uses to cultivate vegetables for her family’s household consumption. It’s been over six months since Manju Devi has had to buy vegetables from the haat; she’s been able to use the money she’s saved to buy milk and attend to her grandchildren’s medical needs. The vegetables she grows are healthier, as they don’t require chemical fertilizers or sprays. Manju Devi now motivates other smallholder farmers in her community to adopt practices she’s seen in Digital Green videos. “We're identifying these most impactful practices by partnering with researchers and practitioners and spending time in the field looking at what farmers are already doing and seeing what issues they're confronted by.” Further to this Digital Green has developed multi-media training courseware to support the training of frontline farmers and workers. Loop is all about facilitating farmers efforts to sell their produce at a fair price at market. Loop leverages multiple technology platforms to enable efficient marketing of farm produce. Loop selects a farmer to 24 aggregate and manage the sale of the local farmers produce at market that is comparable to a cooperative or the Farmer Centres within the JOIKKO social franchise. However, with Loop the sale, pick up and transport of the produce to market is made via the Loop phone application. The farmers then get an SMS on completion of the sale and a mobile payment. The data collected is also analysed by Digital Green in order to analyse and improve the process. At present Loop is looking to scale while also researching how to make the service pay for itself. Loop does not utilize DLT protocols but is an example of how part of the value chain can be digitised without some of the additional features that DLT technology offers. The Digital Green solutions are all provided through the CoCo data collection and analytics software package that is used to monitor and analyse rural operations. CoCo is a standalone web-based application that has been designed to work on and off-line. In India Digital Green is also working with and is supported by National Rural Livelihood Mission (NRLM), which is led by the Ministry of Rural Development, Government of India (MORD, GOI). Looking forward Digital Green plans to reach a further one million farmers in the next 2-3 years, and in India is also working with the Mahila Kisan Sashaktikaran Pariyojana (MKSP), an initiative under NRLM, to empower women in agriculture. DODORE’S AGRI-WALLET POWERED BY COIN22 Dodore22 focusses on research, development and implementation of mobile based technologies in developing countries. The company offers expertise and experience in running projects on the ground and was behind the implementation of Agri-Wallet23 in Kenya together with Coin22. “Dodore Kenya Ltd develops and implements innovative mobile wallets that help vulnerable people (low income, women, youth) save money earmarked for specific purposes. The wallets are based on a combination of internal systems and a virtual currency platform.” Coin22 is a fintech service provider that enables transparent mobile money payments via blockchain technology facilitating both local micro-payments and conditional international transactions. Agri-wallet is COIN22’s token-based mobile payment, savings and loans scheme for farmers and food companies that was implemented by Dodore Kenya Ltd in partnership with Rabobank and MasterCard Foundation. Dodore’s implementation of Agri-Wallet is designed specifically to help ease the cash flow issues faced both by farmers and buyers through providing a common transaction platform. Farmers selling their produce get paid immediately by Agri-Wallet in M-PESA to their mobile account allowing them to use that money to pay for new farm inputs. In turn, the buyer is able to postpone paying until the onward sale of the farm produce has been completed, thus also allowing the merchant to retain cash to pay for other key costs such as transport. The transactions all take place through the Agri-Wallet mobile phone application where registered users are provided an M-PESA mobile money account. A restriction of the service is that money held on the Agri-Wallet account is only available for spending on agricultural products from suppliers that are also registered with the service. This has an advantage to encourage farmers to save specifically for 22 23 Dodore Ltd http://dodore.co.ke/ Agri-Wallet https://agri-wallet.com/ 25 reinvestment into the farm and to develop a business mindset, yet on the flipside it prevents further integration of the service and investment into the local community and potentially requires farmers to set up separate accounts for household and related savings. Agri-Wallet also provides registered farmers access to finance in the form of an overdraft. Agri-Wallet leverages mobile technology and goes a long way to addressing many of the issues faced by farmers in providing a user friendly and trustworthy service that helps provide a greater degree of financial stability. PRODUCERS DIRECT Producers Direct is an organisation of farmers working to support farmers. The organisation focuses on farmer ownership and leadership, peer to peer training, and building knowledge and expertise in underserved rural farming communities. Centres of Excellence To achieve this Producers Direct has created an innovative social enterprise that leverages a network of over 600,000 farmers to provide services by farmers to farmers through a global network of Centres of Excellence (CoE). The CoEs, centred at smallholder producer organisations, create a living, learning classroom where innovation can be tested and shared across the famer network. The organisation also strives to incorporate youth and women’s groups recognising the importance of the wider aspects of rural life while providing a viable future for young communities. Farmers are taken on a multi-stage journey through the CoE that provides training and information, access to finance and markets, and data to enhance farm management. “Our goal is for each CoE to serve as a ‘one stop shop’, providing a complete bundle of support – including training, funding, market access and data – in a blend of in-person and digital services.” Producers Direct initiative Digital Farm couples a strong focus on leveraging a range of modern technologies with their bottom-up approach working with the farmers to develop new solutions. WeFarm Farmer’s Social Network WeFarm24 is global farmer social network that was piloted in 2010 in partnership with Cafédirect Producers Foundation (CPF) and then launched as a social enterprise subsidiary of CPF in 2015. WeFarm is a for-profit organisation that through partnering at key levels in the supply chain wants to create a sustainable, transparent and accessible solutions for smallholder farmers. The core service is a peer-to- 24 WeFarm https://wefarm.org/ 26 peer mobile SMS based network that enables farmers to post questions and immediately get a response through the power of crowd-sourced knowledge. The service requires only a basic mobile phone and does not require internet or for the farmer to visit a farming centre and because is it crowd-sourced the service is for free. WeFarm is operated in Kenya, Peru, Uganda, Dominican Republic and Haiti. Case Study: Single parent Clara increased her income “Early one morning in Kaptumo village in Kenya, a female farmer called Clara was preparing to milk her two cows, when she saw that one of her cows was struggling to stand up. The cow had had this problem for the last 3 days, so Clara was worried. The next available person who she could consult was the mobile Artificial Insemination Officer, who was hardly ever available. At this point she remembered WeFarm. Clara quickly sent an SMS to WeFarm describing her problem and within 10 minutes, one of the WeFarm members replied with a solution by SMS, having had exactly the same problem. Clara discovered that her cow had a mineral deficiency which was making her bones weak, and was advised that she should feed the cow with feeds rich with calcium and phosphorus. Another farmer also sent Clara an SMS with advice on how to grow hydroponic fodder which could help to substitute minerals in her cow feed, at a cheaper cost. Clara immediately ordered the feeds with the correct minerals and started to grow hydroponic fodder to keep her cows healthy. Not only did she solve her problem but also learned a new skill in the process. One week later: Clara is now the proud owner of two healthy cows with better milk production. She sells the milk to the nearby market helping to increase her income as a single parent to 5 children.” WeFarm, 15th March 2015 MasterCard’s 2Kuze AgTech Platform 2Kuze is a mobile market place created by MasterCard’s Nairobi Labs25 for Financial Inclusion with support from the Gates Foundation26. The phone based application brings together farmers, agents and buyers on a digital platform. The digital market place allows farmers to directly connect with buyers, avoiding the need for intermediaries, increases transparency and efficiency in the market place, and ultimately generates better return for the farmer and increased value in the supply chain. The service also enables farmers to create and maintain a digital history that provides a record that can useful in obtaining access to micro-loans while also generating good recognition in the market. 2Kuze was piloted in Kenya with Producers Direct at their SIREET OEP Centre of Excellence. During this pilot phase the service has been free to use, however, MasterCard are exploring models for buyer and financial institution transaction and referral fees toward a commercial product generating a profit. 25 MasterCard’s Nairobi Labs for Financial Inclusion https://www.mastercard.us/en-us/aboutmastercard/corp-responsibility/social-sustainability/the-mastercard-labs-for-financial-inclusion.html 26 Bill & Melinda Gates Foundation https://www.gatesfoundation.org/ 27 “In addition, by working with youth groups at the Centres of Excellence to provide logistical support, Producers Direct are creating job opportunities and incentives for young people to stay in rural communities, rather than emigrate to the city.” Producers Direct27 Climate Edge Resilience Building Producers Direct is also partnering with Climate Edge28, a UK based start-up that have developed NEXO, a low-cost weather station deigned for deployment on small scale farms that is being piloted with smallholder coffee producers in South America. Operating Model The station collects air temperature, humidity, soil temperature and moisture, precipitation and leafwetness. The data is then sent via 2G network to their system for analysis and re-distribution to farmers via mobile SMS. Through increasing understanding of the weather impacts on crop yield they aim to assist small scale farmers increase yield while also providing increased resilience to climate change that threatens to adversely impact the crops and livelihoods of local farmers. Climate Edge is working to bridge the knowledge gap between research into climate impact on agriculture and smallholder farmers. SOLAR FREEZE COLD STORAGE IN KENYA Solar Freeze29 is an interesting innovation that aims to reduce post-harvest losses in smallholder farms in Kenya. Through quickly lowering the temperature of fresh produce immediately after harvest they can markedly increase the shelf-life of goods. This provides farmers the opportunity to take advantage of improved market prices. The cold-storage supply chain is effectively non-existent at present due to the high cost of the technology and unreliable electricity supply. Solar Freeze intend to get around these issues with a portable, solar powered, cold-storage unit that is easy to use. Operating Model The cold-storage as a service allows smallholder farmers and traders the ability to transport smaller quantities more frequently through leveraging the ‘sharing economy’. Using an Uber type service farmers can get access to cold storage that does not require internet connectivity or involvement of logistics companies. Coupled with IoT technology allows farmers and traders to access real-time monitoring and tracking data that provides important food quality information that can be shared across the supply chain. KILIMO SALAMA TECHNOLOGY ENABLED INSURANCE Insurance has not worked effectively in high risk rural smallholder farming communities where it is needed most to provide a level of financial stability. The traditional business model relying on in-situ inspection of claims and upfront premium payments that are often beyond the reach of those who most need it combines with a low level of trust in an environment that is not familiar with financial services and for whom paying for the next meal is typically guaranteed by investing in tangible goods such as livestock or by storing crops. 27 Producers Direct http://producersdirect.org/ Climate Edge https://www.climate-edge.com/ 29 Solar Freeze http://www.solarfreeze.co.ke/ 28 28 Operating Model Kilimo Salama (38), meaning “Safe Agriculture” in Swahili, has demonstrated how more innovative insurance business models coupled with technology can help reach new markets. The smallholders can purchase the insurance along with their seeds at a price of 5% of the sale price of their crops. The conditions of the insurance contract are monitored automatically through use of IoT, in this case a network of remote, unmanned, weather stations. These stations monitor weather parameters, such as rainfall and temperature, which are used as indicators of local flooding or drought. When weather conditions reach the contractually agreed limits that are known to cause loss of earnings due to crop damage the insurance payment is automatically triggered and the farmer immediately receives payment to his/her mobile M-PESA account. As a further benefit the weather stations are also used as a climate monitoring and weather warning system. The more accurate data provided by the weather stations supports the analysis of regional trends which can be used to inform farmers of weather related risks to their crops. The farmers receive the information via SMS to their mobile phone providing the opportunity to act and avert potential losses. The Kilimo Salama initiative was set up in 2009 by the Syngenta Foundation, UAP Insurance, Safaricom, and Kenya Meteorological Department, to become the largest agricultural insurance programme in Africa. The first insurance scheme to utilise mobile phone and IoT technology it has helped rebuild trust in insurance to reach over 150,000 farmers in countries such as Rwanda, Tanzania, Zimbabwe, and Nigeria. AGUNITY’S BLOCKCHAIN FOR SMALLHOLDER FARMERS AgUnity30 is a company that developed AgriLedger, a mobile based application than uses blockchain technology to provide services to smallholder farmers and cooperatives. The company, operating in Indonesia but also with a presence in other countries, obtains funding from NGO’s in order to provide mobile smart phones with the application installed for free to smallholder farmers and cooperatives. The start-up now has two entities: • • AgUnity, its commercial arm, which develops and builds the technology and conducts pilot projects to prove its impact; and AgriLedger, a charitable trust that allows AgUnity to partner with and get funding from nongovernment organisations (NGOs) in order to roll out and run its pilot programs. Farming cooperatives are seen as the most effective and equitable way to increase farmer’s incomes by overcoming inefficiencies in planning, a lack of empowerment and a lack of access to proper farming resources result in poor harvests, spoilage of crops and poor prices at point of sale. Operating Model The application allows farmers to work through a trusted system with cooperatives to coordinate farmequipment sharing, scheduling of farm activities, buying and selling, and manage their money and 30 AgUnity http://agunity.com/ 29 transactions in a secure location. The app also includes an online market place for additional equipment such as solar lights, farm equipment while also providing micro-loan services. “We allow companies to provide ethical products and services into a new, completely untapped market. Companies providing these services pay us royalties [of] around 10 percent; however, we ensure the farmer is always getting better value than they otherwise would have.” “Farmers can understand with confidence, even if they cannot read or write, that if they hand over their crops to a cooperative, they will receive payment for these crops for exact amount they provided, and trust the AgriLedger app.” Davis Davies, Co-Founder AuUnity AgriLedger is currently being piloted in projects in Indonesia, Bougainville, Papua New Guinea and Kenya with plans to roll out AgriLedger in the Solomon Islands, Vanuatu, Cambodia, Ghana, Ethiopia and Brazil. PROVENANCE’S SUPPLY CHAIN TRANSPARENCY Provenance31 is all about building trust and transparency in the food supply chain from farmers to consumers. Provenance enables retailers to provide shoppers with reliable data on the product from its origin all the way along the supply chain to the shop floor. It has been used to robust digital proof for sustainably-sourced and slavery-free products, digital certification, proof of fair payment to empowering small, independent food brands with digital transparency tools. Working in partnership with FairFood, Provenance was able to verify proof of payment to coconut farmers while tracking coconuts from Indonesia to Europe. “Using a grassroots certification approach, we tracked payment one way, product the other way, registering the harvest via SMS, and verifying chain of custody along the supply chain.” The purpose of the project was to prove the feasibility to track ethical claims and digitally verify fair trade practices. FairFood32 continues its research into the application of blockchain for fair trade in the food supply chain by partnering with organisations that are developing and utilising blockchain technology in the effort to ensure that blockchain solutions meet their potential of being truly inclusive. Fairfood partnered with FairChain Foundation33, a research and development group that is pioneering ideas regarding fair and inclusive supply chains. FairChain together with Moyes Coffee has recently developed a blockchain based digital supply chain for coffee farmers in Ethiopia that collects data from harvest to payment while they are currently working on extending it to include the washing, hulling, roasting, transport, and sales stages. The FairChain coffee harvest technology implemented by Bext360, a blockchain technology company focussing on traceability and quantifiable measurements for sustainability. 31 Provenance https://www.provenance.org/ FairFood https://fairfood.nl/en/ 33 FoodChain Foundation https://fairchain.org/ 32 30 SWOT ANALYSIS The following SWOT analysis provides a high level overview of the key criteria to be considered when implementing the following technologies. It should be noted that this SWOT has not been performed with any particular location or community in mind but rather considers the general position of rural smallholder farmers. It is recommended that prior to launching a project such a SWOT analysis is redone that considers the specific conditions of the target location and the community, culture, and local infrastructure. Community Radio Strength • Regionally relevant community driven content • High familiarity • Good level of trust • Low expense for farmers • Low personal investment of time and effort • Proven technology • Availability of broad topics • Comparatively low ICT infrastructure • High accessibility, including by illiterate farmers • Common call centre for solutions • Crop specific weather Opportunity • Involvement of youth and/or women groups • Youth retention • Use to share information on new developing technologies Community Video Strength • Locally relevant community driven content • Visual demonstration • Broad topics • Low expense for farmers • Low personal investment of time and effort • Accessible by illiterate farmers Opportunity 31 Weakness • Dependent on existing network of community radio stations • High political and investment barrier to set-up new stations Threat • Exclusion of women due to conflict with home duties • Requires continuous electricity supply Weakness • Medium set-up barrier requiring external investment in time and effort • Investment in training in video use and projecting Threat • • • Involvement of youth and/or women groups Training of new technologies Youth retention Mobile Wallet Strength • Good familiarity • Good remote access • Existing high penetration • Single platform can address multiple problems: cash flow, savings, credit, insurance, market information, purchase of farm inputs, etc. • Proven solution Opportunity • Integration with JOIKKO style farm centres • Reduce corruption • Increase trust among farm centres IoT Strength • Optimised use of farm inputs -> reduced costs • Real time data -> weather warnings and spray alerts • Automated M2M farm management • Rich data facilitates learning Opportunity • Climate resilience building • Reducing cost of IoT • 5G connectivity • Integration with parametric insurance DLT Solution Strength • Facilitates trust • Greatly reduced corruption • Efficient transactions -> reduced costs and time to complete 32 • • • Exclusion of women due to conflict with home duties Internet connectivity Continuous electricity supply Weakness • Personal affordability for lowest level farmers • Threat • Accessibility to SMS for illiterate farmers • Network penetration in most remote regions • Weakness • High set-up barrier due to initial investment costs, time and effort • Ongoing maintenance of sensors and network • Medium to high learning curve • Internet connectivity requirements Threat • Technology may be quickly outdated or made obsolete (e.g. replaced by satellite remote sensing) • Weakness • Comparatively untested • • • • • • Continuous audit record Access to global markets Proof of payment Implementation of smart contracts Provenance information -> track good from farm to table Opportunity • Build farmers market reputation • Certification (e.g. fairtrade) • Social representation platform (e.g. online voting) • Food safety improvements • Insurance via smart contracts Threat • Early adopter risk -> many DLT solutions are still in pilot mode still • Late adopters may get left behind • IMPLEMENTATION A study by the National Survey and Segmentation of Smallholder Households in Bangladesh found that 13% of smallholders do not have enough money for food, while 49% can only meet their basic needs, thus leaving little to invest in education or farming (2). It is therefore not realistic to expect smallholder farmers that grow crops to survive to transition from one day to the next and adopt technologies into their farming practices without the education, health, and financial support to get them there. Therefore it is imperative to consider the entire development path from those farming to survive to those in a position to invest in new technologies. Mindset, Education and Awareness Changing mindset from that of growing to survive to farming as a business, and also to then consider how to utilise technology in that pursuit, is a big shift and requires space to think beyond how to provide the next meal for your family. This chicken and egg situation, in that the services provided by the adoption of new technologies that provide access to improved financial resilience, agricultural expertise and education, as well as fair market access, first require a period of financial stability to enable and allow for that change in mindset as well as capital creation to pay for the services. Traditionally, before active new technology can start to be adopted hands-on support is needed to create a foundation of health and education to allow minimum stability to smallholder families. However, there is a great benefit to be had now, to join the technology race at the beginning, rather than to wait which also introduces its own material risks. Developing countries have the opportunity to leap-frog their developed counterparts as they do not need to re-engineer or re-wire hard or soft systems to adopt to these new technologies, they can be designed in from the start. This provides a potential advantage that can be used if ways can be found to implement changes now. First of all it is maybe worth to differentiate between ‘active’ and ‘passive’ use of technology as it has a big difference in the pressure put on the speed at which smallholder farmers are required to understand the implications of new technologies. Here we define ‘active’ and ‘passive’ use of technology at two ends of a scale described below: 33 • • Active use being defined as direct integration of new technology, such as mobile phone payment, sensors and IoT, into farm management, that requires commitment, a potentially steep learning curve and investment in technology. Passive use is far more accessible and would include listening to radio or watching videos, which does not require personal investment or commitment to technology as in ‘active’ adoption. It has been shown that often simpler, or passive, technology is often more successful initially and provides more time for the development of more complex ICT infrastructure needed for more advanced technologies. Using old and trusted technology, such as radio, especially community radio, as a means to communicate and champion new technologies has also been found to be effective (39). The introduction of basic and locally relevant farming best practices through technology, particularly when shared between community members, may be easily adopted and can quickly lead to small gains in yield and reduced risk of losses during the growing season and post-harvest (40). In turn, this helps develop trust while also providing the motivation and resources to continue the pursuit of better farm management. It is quite foreseeable to see the benefits of community radio or video broadcast in a common area providing valuable, and locally relevant, best practices. In the JOIKKO social franchise set up the farmer centres may provide a logistically sensible location for the sharing of community radio and video34 programs that is accessible by all local smallholders as being only 5km or less from the farm it does not require a long time away from the field. Coordinating programs with the daily schedule, such as when the men have free time during tea time, combined with advertising at relevant locations such as the farm shop or local tea shop would facilitate good participation. Furthermore, reaching out to youth groups to set up the technology will provide interesting and challenging projects that will provide training in technology and provide an incentive to remain in the local area and contribute to the future development of the farming community. The cumulation of small increases in returns combined with education and health support can provide the initial step up needed to accelerate the development path through adoption of newer and/or more powerful technological solutions. At this point mobile phones become a reality. Increasing mobile phone access and use creates the foundation and familiarity with technology and enhances communication on which to build upon (41). Mobile connectivity is already driving improvements in education and digital literacy in hard to reach locations across Bangladesh. The main mobile network operators all have in place mobile education initiatives such as the Muukto Paath35 e-learning platform that provides easy access education that is delivered in partnership with the government agency for technology and innovation a2i Bangladesh36. Although literacy levels have increased to 73% in 2016 it is much lower in rural areas (42) and in particular for women. Access to mobile learning can be used to reach these disadvantaged groups creating easy access to learning facilities to close this gap allowing for learning at home and at lower 34 Digital Green Community Videos http://www.digitalgreen.org/videos/ Muukto Paath e-learning platform http://www.muktopaath.gov.bd 36 a2i government programme to catalyse public service innovations https://a2i.gov.bd/ 35 34 cost. Initiatives that already exist include Infolady37 and EDGE38 and are already making a difference across the country. Stakeholder Management Setting up empowered rural and agricultural stakeholder organisations have been proposed (43) as a fundamental requirement to ensure policies and programs meet the needs of the rural smallholder farmer that can be facilitated by extension workers and other organisations working on the ground. “Local communities need to be involved in the design of universal access programs by participating in decisions about particular information access outlets. Indeed, most studies find that the most effective way of ensuring the economic success of ICTs in rural areas is to encourage local participation and create social institutions in support of the new technologies. This can be achieved through a participatory approach, to complement technical and economic calculations of telephone placement.” Charles Kenny, an infrastructure economist with the World Bank (Kenny, 2001) Extension workers may also facilitate this process through engaging with local and regional stakeholders to voice the needs of smallholder farmers from a policy and regulation perspective. This is a new skill identified by Richardson, 2007 of extension workers to be able to play the role of broker between technologists and service providers, government stakeholders, and their clients. As such they need to be able to assess the appropriateness of technological solutions to work in rural areas with limited accessibility, cost constraints, language and literacy, age and gender and other local or cultural considerations. They may then represent smallholders in dialogue with stakeholders that include technology service providers, regulators and policy makers, local entrepreneurs, NGO’s and other organisations working with the community. Ensuring reliable power supply and connectivity will be key to enabling the potential of technology in smallholder farming can be fully realised. Mobile Payment Services Mobile payment accounts have be shown to be very successful in rural smallholder farming due to ease of use, remote access, accessibility and integration with additional farm services, and thus seem an obvious way forward. An Agri-Wallet service that incorporates the services and products provided by the JOIKKO farmer centres would reduce transaction costs, increase reliability and auditability of the centres while also improving trust with the farmers, and would ease cash-flow constraints and reduce pressure to sell the harvest at poor prices to cover costs. There already exist a range of digital wallets (44) available in Bangladesh, some of which require just a phone number to register, others needing up front registration with a bank, however none appear to be specifically tailored to the needs of smallholder farmers yet. Services, such as bKash39 the most ubiquitous service through Brac Bank Ltd, allow users to send, receive, request money, pay utility bills and buy airtime and pay merchants and send remittances. While useful, these services need to be integrated into the local agricultural ecosystem to provide the most value for money to smallholder communities. 37 Infolady Social Enterprise Limited https://www.facebook.com/isocialbd/ English and Digital for Girls’ Education EDGE https://www.britishcouncil.org/society/womens-andgirls-empowerment/our-work/edge 39 bKash https://www.bkash.com/ 38 35 Furthermore these services do not always consider the literacy constraints in rural Bangladesh which need to be taken into account during the design and implementation of digital services if they are to reach out to all levels of the farming community. For this reason in the past call-based services have been preferred by smallholder farmers to SMS-based services, even when they are automated. The literacy issue may be partially resolved in the future as the availability of smart phones allows for the integration of MMS and pictorial based services to aid illiterate farmers. Alternatively, call based service such as IVR can be very helpful but the call rate can limit use of the service. SMS is therefore more priceaccessible but limited in content. Working in partnership with the private sector can help strengthen the outreach networks with more diverse partnerships. In Bangladesh FHI 36040 has partnered with Bank Asia and IFIC to provide the microcredit service available through their mobile wallet. The loans have a low, more affordable interest rate and a flexible repayment schedule, so farmers can pay them back in a single payment after six months, once their crops have been harvested. The FHI 360 Mobile Solutions Technical Assistance and Research (mSTAR) project in partnership with USAID is a research program that fosters rapid adoption and scale-up of digital finance, digital inclusion and mobile data that seeks to increase access to and use of mobile and digital technologies by low-income individuals. Education on financial services coupled with pilot schemes that allow farmers to see the benefits first hand have been effective in the past. Utilising a system that is already tested and proven in the field, such as Agri-Wallet brings a lot of benefits and quick wins. IFDC and 2Scale41 have been very successful in scaling Agri-Wallet services in Kenya and while Agri-Wallet is not available currently in Bangladesh IFDC are present in the country with a number of on-going projects and could be seen to play a similar role bringing expertise to scaling mobile money services in the agriculture sector in Bangladesh. Looking to the future, more advanced solutions may become feasible such as the e-Farmers’ Hub (eHub)42 developed by Syngenta Foundation for Sustainable Agriculture (SFSA) that has been tailored to support agri-entrepreneurs to track transactions, leading to a more efficient and less error-prone management of the farmer hubs. The Way Forward for IoT There still exist a number of challenges to the widescale implementation of IoT in developing countries, both technological and social, however these boundaries are coming down. This potential for IoT in developing countries has also not gone unnoticed demonstrated by the World Economic Forum’s IoT for Sustainable Development (IoT4D)43 project that has created a framework for the acceleration of research and development into IoT for developing countries. Types of sensors Sensors can be developed for monitoring spatial and temporal variations providing measurements of soils, plants, and animals monitoring for environmental and weather conditions, disease risk, growth and movement. The choice of sensor needs to be suitable for its intended use and the environment it 40 FHI 360 https://2016annualreport.fhi360.org/highlights/farmers-go-digital-to-shed-debt/ IFDC & 2Scale https://ifdc.org/2scale/ 42 e-Hub https://www.syngentafoundation.org/agriservices/whatwedo/digitalsolutions/e-farmershub 43 WEF IoT for Sustainable Development http://widgets.weforum.org/iot4d/ 41 36 must survive in. Consider also the number of sensors, the spatial distribution and proximity to the sensor gateway, the frequency data is collected and the amount of data to be transmitted versus what can be calculated in-situ, and the power supply required and whether it requires batteries or can be managed through solar or wind power. A summary of some of the types of agricultural solutions leveraging IoT have been summarised in the table by (45) copied below. References Devices/Technologies Benefits Smart irrigation system (46) MATLAB, wireless sensor, IOT. Non Linear Analysis of Soil Microwave Heating: (47) Cucumber Disease Detection (48) Microwave antennas, electromagnetic heating. Artificial neural network, MATLAB. Identifying and Monitoring Winter Wheat Diseases (49) Support cloud service Optimizes the water usage, Yes provides a remote controlling, monitors the system. Allows a very effective No solution. Data capture in real time Yes Yes Provides the Accuracy of 80.45%. No Yes Hyper-spectrum Diseases could be determined and Differentiated. No Yes Detection and Identification of Disease Stages (50) ASD spectroradiometer, MATLAB. This SDI exhibited high accuracy and sensitiveness. No Yes Mega-Nano Detection of Foodborne Pathogens and Transgenes (51) Quantum dots, DNA. No Yes Leaf disease Detection (52) IOT, Zigbee module, WSN. Yes Yes Robotic disease detection in green houses (53) RGB camera, laser sensor, computer automation. Image processing, pattern recognition. Established an on-theplant design for detecting signature molecules. Monitoring both the climate and plant would give the more accurate information. Overcome the threat in the crops or leaf in the agriculture. Monitor the crop for possible diseases and avoids upcoming loss of crops. No Yes No Yes Identification and Classification of Fungal disease (54) 37 Connectivity considerations IoT devices in rural farming locations in developing countries require access to a long-range, low-power, low-cost network (31) to be successful. This rules out short range communication connectivity such as Bluetooth or standard WiFi, while long-range mobile data connectivity via GSM/GPRS or 2G/3G/4G/LTE is comparatively costly, has high energy requirements, and also the availability and reliability in rural locations can be inconsistent. The low-power, short-range Wireless Sensor Network (WSN) such as IEE 802.15.4 radio using multi-hop routing has been successful in smart city environments however they are generally not practical in rural communities. Rather Low-Power Wide-Area-Networks (LPWAN) such as Sigfox or Semtech’s LoRa have demonstrated higher suitability to the rural environment with a range of up to 20km in line of sight or 2km non-line of sight and a cost range of between 2 and 14 Euros per year (14). The LoRa network is attractive as it can be deployed privately without the need for any service subscription. The Things Network44 is an example of a community based group that is developing bespoke IoT services based upon their LoRaWAN that features low battery usage, long range and low bandwidth. In future 5G may replace the need for LPWAN but this will most likely not become available in rural locations until 2030 or later. Connection to the internet for the purpose of uploading data to the cloud can be a problem in rural locations, however, this can be managed with various technologies that allow for continued offline working and storing of data locally on the gateway and synchronising as and when the connection becomes available. As IoT data is typically of use where it is measured leveraging the aggregation and analysis of the data locally mitigates issues of erratic internet access (55). Other Important Consideration for IoT Implementation The development of local expertise in rural locations is an issue that needs to be addressed to ensure that the technology continues to run even when the extension services have left. This requires investment but may also create an opportunity to create new operating models through the creation of public-private partnerships that bring together government, private sector but also academia, to support the creation of localised centres of excellence through education and vocational training. Such initiatives could provide incentives for youth to remain in the area to get involved in projects that provide valuable life and business skills and a brighter future outlook. Replicating the social platform set up by WeFarm with a focus on farming technology may provide a valuable source of community knowledge on use and implementation of agricultural technology. Design considerations should incorporate the need to be robust and energy efficient, able to run on lowcost batteries or solar or wind power for months on end. IoT devices now often integrate energy harvesters, such as solar or wind, that allow them to work indefinitely. While reliability is critical, it is also important for the system to be aware when the an IoT devices disconnects from the network for whatever reason so that an alert can be sent to the farmer to check the device. The cost of devices and the supporting infrastructure remains one of the main constraints limiting the accessibility of IoT in rural locations in developing countries. This can be partially overcome through use of open source technology, NGO or crowdfunding routes, and partnership models such as that implemented by AgUnity. 44 The Things Network https://www.thethingsnetwork.org/ 38 Getting on the Blockchain There are a host of new blockchain based services (Appendix B. Blockchain Solutions) coming into existence at the moment in the agricultural space, the question is which model is most suitable and relevant to smallholder farmers, and which will continue to be successful bearing in mind most companies are in very early stages of development. Which service to implement depends also on what type of service is needed; the current blockchain implementations seek to solve different parts of the food supply chain puzzle. Some are focussed on removing inefficiencies in the local food distribution and marketing, such as Foodshed.io that links small scale producers to chefs, supermarkets and institutional buyers within a 250 mile radius. Then there are companies such as Ripe.io that are creating a food quality network that maps the food throughout its entire journey. And companies like Avenews-GT are creating an integrated market place and full ecosystem around commercial trade with all stakeholders in one place. Some of these companies are more focussed on long term sustainability and are specifically focussed on supporting smallholder farmers whereas others are about redesigning the global supply chain system or providing blockchain technology as a service. For a list of existing DLT solution providers see Appendix B. Blockchain Solutions. Ethics should also enter into the decision making process. It is well known that some of DLT solutions are based on technology protocols, known as “proof-of-work”, consume vast amounts of energy to validate entries that cannot be considered a sustainable solution. In addition, although the DLT protocol is based on a democratised system where everyone has access to the entries one must also consider the underlying business model of the service. It needs to be asked what is the motivation and ethics of the organisation(s) that own the DLT framework that you are considering to partner with as in almost all cases it will be developed countries selling services to the developing world. Utilising local focussed service may provide the easiest way to integrate the new technology into local farming set up and provide short-term gains quickly. AgUnity or Lokaal are blockchain services that bring experience regarding how to implement the system in local environments that may be more applicable to the JOIKKO social franchise. However, by not directly integrating into a global supply chain system it may limit scalability and remove options further down the road. Understanding the future plans of the blockchain service will be important in order not to limit potential future growth opportunities. It is generally considered that blockchain in agriculture is still three to five years away from feasible scalability (56) with most implementations currently in trial or pilot phases. Further Findings In achieving effective intervention in technology driven projects Richardson, 2007 highlights the need to incorporate not just agriculturally specific ICT but to widen the scope. “Any ICT intervention that improves the livelihoods of poor rural families will likely have significant direct and indirect impacts on enhancing agricultural production, marketing and post-harvest activities – which in turn can further contribute to poverty reduction.” (43) Richardson, 2007 suggests that technological interventions in this context will be successful if they have the potential to: • 39 free up time for agricultural work through information or services which help improve family health and well-being; • • provide access to household capital which can be leveraged for agricultural production or postharvest improvements; and enable rural families to better take advantage of remittance economies for enabling family members to live elsewhere and send capital home to improve agricultural work and other livelihood activities. It is worth to note some of the key findings of the cross-sectorial USAID workshop on the introduction of sensor technology in rural farming in the box below. Technology Relevant sensor technologies exist and the market is already addressing issues inhibiting developing context applications including data transmission challenges and cost. However, there may be a role for donors in accelerating the reduction in cost for sensors and related technologies and for local development partners in testing and refining technologies for context-specific applications. Adoption A major challenge facing sensor applications for agriculture is the need to catalyze context-led innovation that integrates sensor technology (and/or resulting data) into locally appropriate products and services that address specific problems affecting smallholders. Donors, entrepreneurs, development and private sector actors all have a role to play in promoting adoption by creating and disseminating actionable information to smallholders and others along the agricultural value chains. Ecosystem There is a rapidly growing community of entrepreneurs, academics, development professionals, donors and others working on sensors and agriculture that are, for the most part, disconnected. Participants see tremendous value in growing an inclusive network that cuts across disciplines and can have access to varied expertise and centralized funding and collaboration opportunities to support smallholder farmers, thus enabling a more coordinated approach and more impactful actions. Local connectivity remains a major obstacle to the rollout of many technological solutions in rural areas that needs to be addressed as part of any future solution. Identifying and supporting local champions, such as local entrepreneurs who also have a vested interest to advance the use of technology in agriculture, can be a key driver for success (57) SUMMARY AND RECOMMENDATIONS The report has demonstrated that the rapid acceleration in technology will have a material impact on agriculture in developing countries and has the ability to empower and enable smallholder farmers. Here we present the main findings and key recommendations that must be considered during the planning, selection, and implementation of new technologies in rural farming communities in Bangladesh and similar developing economies. To be successful it is necessary to recognise that the different stages of development identified by CGAP (2) require different technological solutions and ultimately any solution should consider the how to help transition smallholder farmers successively through these stages. In doing so we propose distinguishing between ‘passive’ and ‘active’ use of technology when selecting the appropriate use of technology for a selected demographic. Smallholders farming for sustenance may benefit most from passive involvement, such as attending community radio or educational video sessions that do not require 40 significant investment in time, effort or money. More active involvement which may involve a steep learning curve or financial investment such as implementation of IoT technology should be targeted towards the higher end of development for smallholder farmers that already farm as a business and have already developed a more entrepreneurial attitude. The advancement in technology will create many opportunities but there are two areas that are expected to bring the most significant changes, that is 5G enabled IoT and the implementation of distributed ledger technology. Development in 5G and IoT will allow for a proliferation of technologies applicable to agriculture that in time will become available to smallholder farmers, however, it will likely be 5-10 years before this becomes a viable option due to cost and limitations on ICT infrastructure. Yet there is still potential to start with simpler technologies, such as low power wide area networks, that are already in use and often leverage open source solutions. Distributed ledger technology is already being prototyped under various different use cases. DLT offers great opportunities for the digitalisation of the agricultural and food supply chain which will bring benefits of secure transactions, reduction in the number of intermediaries, and new levels of data provenance. In turn farmers may expect higher returns, see a reduction in corruption, and have better access to market information and global buyers. However, a word of caution is needed as this future vision is not without risk, it will be critical to ensure the appropriate governance is put in place together with any technological solution to protect smallholder farmers. Successful introduction on technology should consider the following: • • • • • • • • • • Identify the current level of technology penetration in the area and the main stakeholders to include during implementation or to lobby to support scaling of new solutions. Determine how the use of technology and related services may change depending on the demographic. Design technological solutions that meet the needs of the specific demographic while considering how this can lift smallholders from one level or demographic to the next. Use existing or ‘passive’ technological solutions to support the introduction of new or more advanced technology through increasing awareness and familiarity with new concepts. Develop stakeholder organisations with the aid of NGOs and extension workers that are on the ground and understand well the culture and attitudes prior to design phase. Utilise the application of new technology in agriculture as a means to keep the younger population involved and interested in agriculture. Leverage the enthusiasm and capability of women to drive change and to help create an inclusive society. Ensure that the necessary governance and data protection are in place to protect the data ownership and rights of local smallholders. Assess the appropriateness, ownership, and sustainability of any proposed technological solution. Assess the long-term viability of any technological solution before implementation. As the rate of technological development accelerates it is advisable to prototype these new solutions and to fail-fast and develop a continuous learning environment that allows one to identify criteria for 41 success as an ongoing process rather than to put all eggs in one basket in what is an early adopter environment. Finally, it is important to recognise that improvement in smallholder livelihoods depends on an integrated approach that also considers the education, health, financial stability, as well and the adoption of farming best practices, to ensure a healthy and resilient community. 42 APPENDIX A. SENSOR TECHNOLOGY Table A.1 Descriptive list of smart agricultural sensors and solutions taken from (58) Sensors Location Sensors Optical Sensors Electrochemical Sensors Mechanical Sensors Dielectric Soil Moisture Sensors Airflow Sensors Agricultural Weather Stations Solutions 43 Location Sensors use signals from GPS satellites to determine latitude, longitude, and altitude to within feet. Three satellites minimum are required to triangulate a position. Precise positioning is the cornerstone of precision agriculture. GPS integrated circuits like the NJR NJG1157PCD-TE1 are a good example of location sensors. Optical Sensors use light to measure soil properties. The sensors measure different frequencies of light reflectance in near-infrared, mid-infrared, and polarized light spectrums. Sensors can be placed on vehicles or aerial platforms such as drones or even satellites. Soil reflectance and plant color data are just two variables from optical sensors that can be aggregated and processed. Optical sensors have been developed to determine clay, organic matter, and moisture content of the soil. Vishay, for example, offers hundreds of photodetectors and photodiodes, a basic building block for optical sensor Electrochemical Sensors provide key information required in precision agriculture: pH and soil nutrient levels. Sensor electrodes work by detecting specific ions in the soil. Currently, sensors mounted to specially designed “sleds” help gather, process, and map soil chemical data. Mechanical Sensors measure soil compaction or “mechanical resistance.” The sensors use a probe that penetrates the soil and records resistive forces through use of load cells or strain gauges. A similar form of this technology is used on large tractors to predict pulling requirements for ground engaging equipment. Tensiometers, like Honeywell FSG15N1A, detect the force used by the roots in water absorption and are very useful for irrigation interventions Dielectric Soil Moisture Sensors assess moisture levels by measuring the dielectric constant (an electrical property that changes depending on the amount of moisture present) in the soil. Airflow Sensors measure soil air permeability. Measurements can be made at singular locations or dynamically while in motion. The desired output is the pressure required to push a predetermined amount of air into the ground at a prescribed depth. Various types of soil properties, including compaction, structure, soil type, and moisture level, produce unique identifying signatures. Agricultural Weather Stations are self-contained units that are placed at various locations throughout growing fields. These stations have a combination of sensors appropriate for the local crops and climate. Information such as air temperature, soil temperature at a various depths, rainfall, leaf wetness, chlorophyll, wind speed, dew point temperature, wind direction, relative humidity, solar radiation, and atmospheric pressure are measured and recorded at predetermined intervals. This data is compiled and sent wirelessly to a central data logger at programmed intervals. Their portability and decreasing prices make weather stations attractive for farms of all sizes. Yield Monitoring Yield Mapping Variable Rate Fertilizer Weed Mapping Variable Spraying Topography and Boundaries Salinity Mapping Guidance Systems Smartphone Applications Camera GPS Microphone Accelerometer Gyroscope Disease Detection and Diagnosis Fertilizer Calculator 44 Yield Monitoring systems are placed on crop harvesting vehicles such as combines and corn harvesters. They provide a crop weight yield by time, distance, or GPS location measured and recorded to within 30cm. Yield Mapping uses spatial coordinate data from GPS sensors mounted on harvesting equipment. Yield monitoring data is combined with the coordinates to create yield maps Variable Rate Fertilizer application tools use yield maps and perhaps optical surveys of plant health determined by coloration to control granular, liquid, and gaseous fertilizer materials. Variable rate controllers can either be manually controlled or automatically controlled using an on-board computer guided by real GPS location. Weed Mapping currently uses operator interpretation and input to generate maps by quickly marking the location with a GPS receiver and datalogger. The weed occurrences can then be overlapped with yield maps, fertilizer maps, and spray maps. As visual recognition systems improve, the manual entry will soon be replaced by automated, visual systems mounted to working equipment. Variable Spraying controllers turn herbicide spray booms on and off, and customize the amount (and blend) of the spray applied. Once weed locations are identified and mapped, the volume and mix of the spray can be determined. Topography and Boundaries can be recorded using high-precision GPS, which allows for a very precise topographic representation to be made of any field. These precision maps are useful when interpreting yield maps and weed maps. Field boundaries, existing roads, and wetlands can be accurately located to aid in farm planning. Salinity Mapping is done with a salinity meter on a sled towed across fields affected by salinity. Salinity mapping interprets emergent issues as well as change in salinity over time. Guidance Systems can accurately position a moving vehicle within 30cm or less using GPS. Guidance systems replace conventional equipment for spraying or seeding. Autonomous vehicles are currently under development and will likely be put into use in the very near future. Provides pictures of leaf health, lighting brightness, chlorophyll measurement, and ripeness level. Also used for measuring Leaf Area Index (LAI) and measuring soil organic and carbon makeup. Provides location for crop mapping, disease/pest location alerts, solar radiation predictions, and fertilizing. Helps with predictive maintenance of machinery. Helps determine Leaf Angle Index. Also used as an equipment rollover alarm. Detects equipment rollover. Photos taken of suspect plants can be forwarded to experts for analysis. Soil sensors and leaf colour can determine what nutrients are needed. Soil Study Capturing soil images, as well as pH and chemical data from sensors, allows farmers to monitor and adjust to changing soil conditions. Water Study Determining Leaf Area Index from photos and brightness logging can help farmers determine water needs. Camera photos with UV and white lights accurately predict ripeness. Crop Harvest Readiness 45 APPENDIX B. BLOCKCHAIN SOLUTIONS Summary of existing blockchain solutions loosely grouped by their main focus area. Local and smallholder focus Lokaal https://www.lokaal.market/ We designed our currency, the LOKA, to support local farms, food-makers, and small businesses. You can purchase LOKA on our site and use it in our marketplace, or donate it, either through our Lokaal support fund or directly to specific farms or foodmakers listed on our funding pages. Foodshed.io Foodshed.io is a mobile marketing app and logistics platform http://www.foodshed.io/ that connects small-scale producers to chefs, supermarkets and institutional buyers within a 250 mile radius. For farmers, it is a simple platform for accessing urban markets, and responding to local demand and opportunities. AgUnity AgUnity Streamlines Co-Operative Operations By Putting A http://agunity.com/ Simple Distributed Cryptoledger Mobile App Into The Hand Of Every Small Farmer. BlockCommodities Using blockchain’s dynamic structure, Block aims to http://www.blockcommodities.com/ incorporate all market participants into an efficient ecosystem, facilitating the commercial operation of the agricultural production cycle. The pilot project starts in Uganda in partnership with Wala, the blockchain-enabled financial platform for emerging markets, and Dala. The project will expand to the rest of the sub-Saharan region in due course. GroceryX GroceryX is a platform built for communities to have their https://icoholder.com/en/groceryx- own local system of food distribution - unreliant on massive 1211 transportation chains and corporate practices that waste billions of tons of food. GroceryX is a platform where farmers can regrow their profits, and communities can prosper. Supply Chain Mapping Provenance We enable great businesses to build trust in their goods and https://www.provenance.org/ supply chain. Provenance powered data helps shoppers choose your product. Powered by mobile, blockchain and open data, our game-changing software enables retailers and producers to open product data, track the journey of goods, and empower customers with access to knowledge. The Provenance platform is free for many organisations that help make supply chains more sustainable, to reinforce equitable data sharing between businesses and shoppers. Bext360 Bext360 provides comprehensive and measurable https://www.bext360.com/ accountability for critical supply chains. The SaaS platform provides unsurpassed blockchain traceability and quantifiable measurements for sustainability. AgriLedger http://www.agriledger.io Ripe.io http://www.ripe.io/ TE-FOOD https://ico.tefoodint.com/ Arc-net https://arc-net.io/ Blockgrain https://blockgrain.io/ FarmShare (59) Retailer Supply Chain FoodLogiQ https://www.foodlogiq.com Market Place FoodCoin https://www.foodcoin.io 47 Bext360 focuses on supply chains such as coffee, seafood, timber, minerals, cotton and palm oil to provide a traceable fingerprint from producer to consumer. AgriLedger works with companies, governments, non-profits and other organizations to address challenges on a worldwide scale. Providing the Right Tools for the Participants in the Agricultural Supply chain. Ripe.io is altering the trajectory of the food system through blockchain technology and the Internet of Things. By designing a radically transparent digital food supply chain, ripe.io harnesses quality food data to create the Blockchain of Food – an unprecedented food quality network that maps the food journey to answer what’s in our food, where it comes from, and what has happened to it. TE-FOOD is a farm-to-table fresh food traceability ecosystem on blockchain, covering all logistics and food quality activities and data management of the supply chain. It provides cost effective software and identification tools to make livestock and fresh food supply information transparent. arc-net connects every step of your product's journey to deliver supply chain transparency and product security. The arc-net toolset provides an easy to use scalable platform, powering the strategic insights that unlock profit . Australia’s BlockGrain has the vision is to be the largest industrywide platform for managing the agricultural supply chain; connecting sellers and buyers, providing full paddockto-plate traceability and allowing bulk logistics companies to manage and grow their operations. FarmShare is a decentralized community-supported agriculture platform built on Ethereum, the world’s first distributed world computer. Agricultural blockchain service which aims to rebuild the broken food system, starting at the community level, by adapting an existing business model (CSA) and leveraging the Ethereum network’s potential for distributed governance, platform cooperativism, and planetary-scale computation. FoodLogiQ provides traceability, food safety compliance and supply chain transparency software solutions - integrating with your existing systems and data using FoodLogiQ Connect APIs. FoodCoin Ecosystem is a blockchain ecosystem, architecturally designed to create a global marketplace of food and agricultural products based on our experience with the active Avenews-GT https://www.avenews-gt.com/ INS Ecosystem https://ins.world/ Commodity Trading AgriDigital https://www.agridigital.io/ The Seam https://www.theseam.com/ OSI Trade https://www.ositrade.fr/ Blockchain & IoT Integration Ambrosus https://ambrosus.com PavoCoin https://pavocoin.com/ Blockchain Integration for Supply Chain Tracking OriginTrail https://origintrail.io/ 48 1000 EcoFarms platform. FoodCoin Ecosystem will be based on the Ethereum technology Avenews-GT provides a platform for the commercial trade of agricultural produce where industrial sellers and buyers can conduct the entire trade process in a secure and transparent environment. Users create their digital ecosystems. The ecosystems streamline communication between business networks with common characteristics. Within their ecosystems, users can interact with their network in real-time, share data, send notifications, and transact with multiple entities in one go. INS is developing a platform to enable direct interaction between brands and consumers. Reaching the next generation audience via data-driven mass personalisation. The team consists of a large global collective of professionals with solid industry experience. AgriDigital's cloud-based commodity management platform makes your supply chain simple, easy and secure from farmer to consumer. Manage your contracts, deliveries, inventory, orders, invoices and payments all in one place and in real time. With blockchain, The Seam is able to provide its customers with a secure online environment that allows buyers and sellers to trade with confidence on a playing field that is levelled by technology, transparency and anonymity. Re-invent trust in Ag-trade. A new way to securing business from farm to fork. Online (cloud based, SAS) platform. Buyers and sellers post their price (binding). Buyers set their Quality specs (base «Contracts de Paris»). Pick, click, done. Securely Automatic clearing when delivery is called. Delivery acceptance release the contract. All documents from the supply chain are securely bounded to the contract, automatic traceability. Ambrosus is a blockchain-powered IoT network for food and pharmaceutical enterprises, enabling secure and frictionless dialogue between sensors, distributed ledgers and databases to optimise supply chain visibility and quality assurance. By bringing together the cutting-edge technologies of IoT and blockchain, and our vast experience in crop cultivation we are serving an agriculture ("Ag") ecosystem focused on highly technologized crop growing, processing, and distribution. OriginTrail is a unique solution allowing IT providers in supply chains to set up blockchain supported data sharing in multiorganizational environment. 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