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Tuesday, April 5, 2022

The impact of the digital economy on the development of agriculture

The impact of the digital economy on the development of agriculture

The impact of the digital economy on the development of agriculture



The agro-industrial complex is a science-intensive industry, almost all input and output elements of which become subject to digital technologies. Thanks to digital technologies, a huge set of data are generated, collected, and accumulated by agricultural producers. It covers the entire life cycle of a product: from the electronic calculation of nutrients in the soil to its production, customization of its consumer properties to the delivery of food to consumers. The competencies of the SHTP smoothly flow "From the field to the office."


An important component of the economic mechanism for managing agricultural production is the possibility of reducing the costs of the state and agricultural producers through the introduction of modern end-to-end digital technologies. The analysis of more than 20 thousand agribusiness enterprises shows that thanks to new technologies, at least 23% of the production cost can be optimized


The effective use of digital technologies is possible with the availability of data on all objects of the agro-industrial complex. This requires a complete inventory of the agro-industrial complex and the improvement of the System of State Information Support for Agriculture (SGIO SH).


The tools for solving these problems are: "Effective Hectare", IT-index, EFIS ZSN, Personal Account of SHTP, End-to-End Technology "From Field to Counter", "New Rural Economy", "Agroexport".


The concept of an effective hectare will allow for on-farm monitoring of the efficiency of the used arable land in terms of production factors, for example, costs, profits, profitability, the capacity of the machine and tractor fleet, personnel, etc.


Accurate information is needed on the optimal type of farm in a particular region, which will ensure accurate, transparent, and efficient use of budgetary funds, high profitability of the agro-industrial complex, increase agricultural exports, and rationalize the use of agricultural land.


"Effective hectare" is the basis for the formation. Agricultural management models until 2025.


The IT index of the agro-industrial complex is an integral calculated indicator for assessing the digital modernization of the agro-industrial complex.


Allows you to calculate the degree of IT penetration at all levels of agricultural production, and links digital technologies and their impact on production costs into a single chain. Makes it transparent and regulated for the state and SHTP.


EFIS ZSN (Unified Federal Information System on Agricultural Land) consolidates data from all sources on agricultural land. It solves the most difficult problem of the agro-industrial complex - the lack of information about the lands of the agro-industrial complex, implements the task of inventorying the lands and objects of the agro-industrial complex. It provides a complete picture of the country's crop rotation structure, and on this basis, we will prepare scientifically based approaches to increasing land productivity.


A personal account of SHTP and other participants of the agro-industrial complex market. Each user of the account will be able to get the necessary analytics for their enterprise, order the provision of public services, use the bank of standard projects for agriculture, and choose an industry consultant to solve production, trade, and technological problems.


The impact of the digital economy on the development of agriculture



Taking into account regional experience and pilot projects, the Ministry of Agriculture of Russia and the Rosselkhoznadzor created federal state information resources, including several information systems, the data of which are used to manage agricultural production, as well as monitor the condition and use of agricultural land, assessing soil fertility and the condition of crops.


Structured the communications of the Ministry of Agriculture of Russia within the framework of the system of interdepartmental interaction (SMEV) and presents the types of information received from agricultural producers (SHTP). Technological solutions for the digitalization of production are also proposed for each SHTP through his personal account.


The calculations show that the introduction of digital technologies in the agro-industrial complex only in the field of crop production (grain production) about 20 thousand agricultural organizations (about 60% of their total number), which are recipients of state support measures, allows, with partial digitalization of the technological process, to achieve a cost reduction of 29 % or about 184 billion rubles


The penetration of the features of the new technological order in the agro-industrial complex will occur unevenly due to the diversity and specificity of the regions of Russia and the complexity of introducing new technologies at different levels of the agricultural market. Therefore, the state should take measures to equalize the introduction of new forms and technologies for various participants in the agricultural market. Among the main trends affecting the digital economy in the agro-industrial complex, it is advisable to single out the following: the use of mobile communication and data transmission technologies, miniaturization and compactization of devices, the Internet of things, the penetration of the blockchain, the formation of hidden informal communities, the concentration of industry information in big data systems.


To ensure the regulatory legal regulation of the application of new technological solutions in the field of application of new technologies in the field of organizing the rational use of agricultural land, the Ministry of Agriculture of Russia, Rosreestr, and the Ministry of Communications of Russia propose to take several measures to change the existing land legislation.


Even the name of the law will change, now it will sound like this: "On the organization of the rational use of agricultural land, their accounting, and protection."


As part of the work on the bill, the following acts of the Government of the Russian Federation will be adopted:


Decree of the Government of the Russian Federation “On the procedure for information interaction in maintaining the state register of agricultural land.


The Ministry of Agriculture of Russia will have to issue several orders on the personal account of the land user and the passport of the agricultural land:


Order of the Ministry of Agriculture of Russia "On the form of the passport of an agricultural land plot, the composition, and procedure for entering information into the passport of an agricultural land plot."


Currently, the conditions for conducting agricultural business are dynamically changing. This was the basis for the development of new economic and mathematical models and the possibility of their practical implementation.


New models should cover not only the narrow processes of agricultural production but also take into account all vectors of the formation of the agricultural market.


So, as an economic and mathematical tool for analyzing how best to use the available area of ​​agricultural land for the cultivation of specific crops and, consequently, to implement appropriate measures of targeted state support for agricultural producers, the models created within the framework of the Analytical Center for the search for markets for wheat exports act.


In this case, its task is to develop a model for optimizing the gross profit from wheat exports.


Taking into account the possibilities of grain consumption by the target markets for the export of Russian grain, a forecast for the expansion of the export potential in terms of grain production was calculated. The calculations were carried out based on data on the financial and economic activities of 20 thousand Russian agricultural producers, recipients of state support measures.


The impact of the digital economy on the development of agriculture



These producers produce 2/3 of the grain in the country.


Based on the data of the Analytical Center of the Ministry of Agriculture of Russia, indicators and indicators of the development processes of digital agriculture in Russia are proposed


The Russian Ministry of Agriculture has already prepared a scenario for the development of agricultural management within the digital economy. This scenario implies a step-by-step development of the digitalization of domestic agriculture in production cycles and includes several stages.


Stage 1 Piloting and summarizing the experience of digitalization. The object of transformation: agricultural production.


About the pilot regions and farms, publicly available trends for the introduction of modern crop and livestock technologies are being developed. Based on them, a basic set of processes and methodology for digital agriculture is formed. This stage can be described as a "global consulting" for agricultural producers by the producers themselves and ICT market participants.


The Ministry of Agriculture of Russia manages the process of determining dynamic seasonal KPIs: forecasting the level of production costs by industry, sales forecast, and future purchase prices for products within Russia and for export. An inventory of lands is carried out for rational use by their natural and climatic conditions.


The results of the first stage are the readiness to introduce environmentally sustainable digital farming into agricultural production, the creation of a digital model for the management, production, and marketing of agricultural products in the domestic market, and the development of agricultural exports. Given the seasonality of agricultural production, the first stage will take 2-3 years.


Stage 2 Scaling, technology, and science.


This stage affects large and medium-sized agricultural production. The proven technologies of the first stage are being scaled up to business entities. Including using the “carrot and stick”: state support measures for enterprises are reoriented to enterprises that implement digitalization processes and technologies using methods of objective control overproduction. Digital chains are being built to support the logistics of supplying and marketing products with parallel ongoing processes of digitalization of transport and logistics.


The most important element of this stage is the creation of a knowledge base that contributes to the development of the neologization of agriculture, the growth of production of environmentally friendly and high-quality products, and contributes to the preservation of the health of the nation.


In the field of animal husbandry, objective quality control and animal traceability systems will allow more efficient export of products (“green corridors”). The active growth phase of the second stage 2020 - 2024


Stage 3 Total figure. All cycles of agricultural production will be digitized and controlled here.


There will be fragmentation and division of work cycles of small farms. For example, the owner of cattle and dairy production is only responsible for feeding, walking, and milking.


The supply of feed, medicines, and the export of products is carried out by specialized companies. Also, fragmentation and division of production among large enterprises, agricultural holdings, and farmers will give a powerful impetus to the growth of labor productivity in agriculture, employment in rural areas, and increase the profitability of agricultural enterprises at a new level.


The use of information technology by farmers, the ability to cultivate large amounts of land resources, and the specialization of farmers in the production of basic raw materials for large consumers will improve the quality of life in the village and increase the demand for rural living. Russia comes out on top in the export of agricultural products in the world. Food prices are being optimized, and quality is increasing from 2024 onwards.


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