The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Janzen Ag Law is a blog written by Todd Janzen, former Kansas farmer now practicing attorney located in Indiana and founder of the Janzen Agricultural Law firm (www.aglaw.us). Topics focus on the intersection of law, technology, and agriculture. Todd's email is firstname.lastname@example.org. He tweets from @JanzenLaw. His regular blog columns can also be found at http://www.aglaw.us/janzenaglaw/.
Countless articles have been written about the potential value of ag data. But the immediate question for farmers trying to decide whether to invest in an ag data product is what is the return on investment (ROI) for this year? Listening to grower panels at precision ag events has convinced me that most farmers still don’t know what the ROI is for most ag data products on the market.
At least until now, companies that stored ag data have used 4 different pricing models:
I don't know of any 100% free, Gmail-type models, where farmers get free storage and analytics in exchange for using a web portal with targeted advertisements. I'm sure such model is coming. Its absence on today's market suggests to me that ag tech providers and advertisers still don't know the ROI on ag data either.
Today, the farmer pays for storage of their ag data in the cloud. When will see this model flip, and ag tech providers start to pay farmers for storage of their data on the condition that such data is shared with the provider? Recently, FARMOBILE made headlines by announcing that it will pay farmers in Minnesota $2 per acre for ag data generated using FARMOBILE's data collecting PUC. This is the first time that I am aware of that an ag tech provider has promised a specific ROI for using its technology.
Is this the start of a trend? Let's hope so.
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