GPS in Jeopardy?

One of the most advantageous technological advancements, if not THE most advantageous technological advancement of modern farming, is global positioning systems (GPS).

As stewards of the land, farmers practice sustainable agriculture daily, and GPS technology has dramatically improved agriculture’s ability to provide food, feed, fuel and fiber with less environmental impact.

GPS technology also improves agriculture’s cost and time effectiveness.

A third, unassuming benefit of GPS to the industry is the accessibility it provides to inexperienced farmers who rely on the technology to compensate for lack of instinctive know-how.

GPS Farm Uses (Virginia Tech webpage):

• Mapping yields (GPS + combine yield monitor)
• Variable rate planting (GPS + variable-rate planter drive)
• Variable rate lime and fertilizer application (GPS + variable-rate spreader drive)
• Variable rate pesticide application (GPS + variable-rate applicator)
• Field mapping for records and insurance purposes (GPS + mapping software)
• Parallel swathing (GPS + navigation tool)

GPS Farm Operations Benefits (GPS.gov)

• Precision soil sampling, data collection and data analysis enable localized variation of chemical applications and planting density to suit specific areas of the field
• Accurate field navigation minimizes redundant applications and skipped areas; enables maximum ground coverage in the least possible time
• Ability to work with low-visibility field conditions such as rain, dust, fog and darkness
• Accurately monitors yield data to enable future site-specific field preparation
• Eliminates need for human "flaggers" and increases spray efficiency to minimize “over-spray”

Because of its impressive assistance to the ag industry, several groups are worried about a recent Federal Communications Commission (FCC) approval that may disrupt GPS signals, according to a recent study.

LightSquared, America’s first wholesale-only wireless broadband network, plans to invest $15 billion to build a wireless service using 40,000 base radio stations — merging satellite and terrestrial technology, to create a new nationwide, 4G-LTE wireless broadband network. An FCC waiver allows them to repurpose the nation’s existing satellite spectrum to complete its venture, according to a Bloomberg story.

LightSquared contends that it has developed and submitted a three-part plan to the FCC that addresses the expressed interference concerns its work will cause to the country’s GPS signals.

“This issue will be resolved by good data, smart engineers and good faith problem solving dialog. The end-result will be continuity for the reliable and safe GPS system we have come to depend on along with a new high speed wireless network that will provide huge benefits to consumers,’’ said Sanjiv Ahuja, LightSquared Chairman and CEO.

John Deere is spearheading the “Coalition to Save Our GPS,” a movement to advocate for the demise of LightSquared’s plans.

According to a coalition news release:

“More than 3.3 million U.S. jobs in agriculture and industries rely heavily on Global Positioning System (GPS) technology and the disruption of interference with GPS posed by LightSquared’s planned deployment of 40,000 ground stations threatens direct economic costs of up to $96 billion to U.S. commercial GPS users and manufacturers, according to an economic study.”

The coalition includes package shippers FedEx Corp. and United Parcel Service Inc., GPS-unit makers Trimble and Garmin Ltd. and the Air Transport Association with members Delta Air Lines Inc. and AMR Corp.’s American Airlines.

Ken Golden, director of global public relations at John Deere:

“The use of GPS technology is vital to thousands of people who make their living with agricultural and construction equipment. It is simply not acceptable to allow this new network to interfere with these important industries when all indications are that there is no practical solution to mitigate this interference. In agriculture, the loss of a stable GPS system could have an impact of anywhere from $14 to $30 billion each year. That could significantly erode the strong competitive global position of U.S. farmers in the world agricultural economy. Serious impacts to the productivity of those in the construction business also will be apparent.”

LightSquared asserts that its effort will “bring world-class Internet service to the United States, including rural areas and other underserved communities and injects new competition in an increasingly consolidating wireless market.”

To listen to an audio clip of one of the coalition members expressing his concern for the agriculture industry, visit http://agwired.com/2011/07/05/save-our-gps-coalition-expands/

How often do you use/rely on GPS? If you farm, has your operation improved as a result of GPS? Do you think that LightSquared can develop a non-obtrusive system?

Photo obtained from: titanoutletstore.com

Time to Invest in Agriculture

While the housing and financial stock markets have seen their fair share of ups and downs throughout the years, agriculture stock has remained steady and is currently increasing.

"The crop farming sector has been relatively profitable in the past several years while the general economy has gone through a great deal of turmoil. As financial difficulties became apparent in 2008, most publicly traded companies saw their stock prices decline," said Gary Schnitkey, ag economist, University of Illinois.

Investing in the agriculture industry can help capitalize farms and fertilizer producers, increase food supplies and generate profits in the process. We’ve already seen that the prices of soybeans, wheat and corn are increasing and major fertilizers like phosphate, sulfur and ammonia have been increasing in price since mid-2010.

Currently, the world is seeing a demand for quality food from rapidly developing countries such as Brazil, India and China. In addition, the global population in emerging markets continues to increase with a demand for more and better-quality food.

According to Investopedia, the rationale for increased agricultural stock prices is that farmers will need the best seeds, fertilizers, animal feed and other agricultural inputs to produce the largest yields possible. Therefore, the companies that are selling products to the farmers should see an increase in their stocks.

An agriculture.com article reports that since 2008, market-value changes have been greater for AgIndex, an index that represents the market value of agriculture companies, than for the S&P 500, an index that tracks the market values of 500 large companies in the United States. Like crop farms, many agricultural firms have performed well in the period of increased commodity prices.

The AgIndex comprises a group of 21 publicly traded companies that fit into one of five sectors (agriculture.com):

1. Fertilizer: Companies involved in the manufacturing and distribution of fertilizers (Agrium Inc., CF Industries, Intrepid Potash, Mosaic Company, and Potash Corporation)
2. Equipment: Companies involved in the manufacturing of agricultural equipment (AGCO Corporation, Art’s Way Manufacturing Company, Caterpillar Inc., CNH Global, Deere & Company, Kubota Corporation and Lindsay Corporation)
3. Seed and genetics: Companies that produce seeds (Monsanto and Syngenta)
4. Crop protection: Companies that produce products aiding plant growth (Dow Chemical, DuPont and FMC Corporation)
5. First processor: Companies that are the first processors of corn and soybeans (Andersons, Archer Daniels Midland, Bunge and Corn Products International)
   

An article at www.dailyfinance.com reports that investors note that expanding populations that tend to shift to more resource-intensive food products are fueling agricultural demand. In a presentation this past year, hedge fund Passport Capital stated that the world population "is predicted to increase by more than one-third, to a staggering nine billion people by 2054."



"We believe the circumstances of the current global recession—including tight credit and reduced asset values—have created a particularly attractive entry point for investors in the agriculture industry," said a representative from Passport Capital.

As the need for feeding more and more people throughout the world continues to increase, the outlook for agriculture investments moving forward will be favorable.

Have you invested in any agriculture stocks? What has been your experience? Do you have any recommendations to share?

Photo obtained from: getmyhomesvalue.com