Please describe your proposed solution
Description of solution: The solution will be a digital ledger and unique ID for every single agricultural field boundary and it's "crop-performance" of those fields historically over a 40 year period by using Satellite data as well as compared to other fields in the region, the ability to compare performance and yield over time is the most important base-line for optimising production, the ability to make this public and digital, will empower the entire value chain agricultural value chain. The solution will cover the extended areas we're building on from Fund 11, i.e. in Kenya and Tanzania, this will be the very first MVP and prototype of the unique technology. Links containing additional proof of previously successfully and in-progress projects, DigiFarm is working closely with NMKR on those proposals and initial pilot can be seen at the following link:
- Creating world's first digital identity for farmers using satellite imagery and AI
- World's first open ledger for in-field agricultural data based on open source SatEO
During this project, DigiFarm and NMKR is now looking to scale the scope of the work and bring this MVP to market.
Background and how we perceive the problem: the idea behind the solution was created by myself, DigiFarm’s Co-founder and CEO, Nils Helset, as I am a 15th generation farmer and crop-producer in Hamar, Norway where I saw the struggles and challenges farmers face day-to-day from the agricultural industry which is primarily controlled by centralised enterprise organisations from the crop input side, i.e. fertiliser (petrochemical companies), seed and crop protection companies, which has caused significant fragmentation for farmers, i.e. we are losing ownership to our own data, lack of choice in what we buy which leads to price control and farmers getting squeezed, financially, I have seen this development myself over the last decade or so, and I wanted to do something about it: I want to take back control and enable farmers like myself, smallholders, so that they can negotiate prices, and create a sustainable long-term family-driven business.
What are your reasons for approaching it in the way we have? The reason for addressing the challenge and building this solution comes from extensive experience in the agricultural industry, farmers, who are individuals are being taken advantage of by larger corporate organisations, I believe the only way to solve this is to take back control, and this starts with data and digital identity which creates transparency, i.e. farmers would be able to negotiate contracts, prices when there is complete transparency of what other farmers are being offered by these suppliers. The ability to share data among farmers and suppliers in the value chain, whether it’s for micro-financing, insurance, crop input such as buying seeds, fungicide, herbicide, fertiliser or real estate transactions and valuations, farmers desperately need more (a) transparent pricing from suppliers (b) control and bargaining power (c) more choice to buy crop-input products and services as well as more options for selling their crops (d) additional revenue streams: typically and currently larger agribusinesses are the ones benefiting from sustainable initiatives and ESG reporting while leaving farmers behind, this project and solution will completely change this and give the power back to the ones who need and deserve it, the farmers.
Who will our project engage? Our project will engage the last mile, i.e. smallholder farmers in Kenya and Tanzania, across the entire 60 million hectares of cropland area, our intention is to reach a minimum of 50% of these farmers within 24 months of the project completion. The project will also engage with the agricultural industry value chain, i.e. lending facilities, insurance companies, grain traders etc. to be able to negotiate better conditions and terms from various parts of the value chain, the ability to cooperate with not only farmers directly but creating a decentralised "marketplace" for farmers and the entire value chain to negotiate and interact will be critical for the future empowerment of farmers.
How will we demonstrate or prove our impact? DigiFarm has already successfully completed a Fund 8 funded project titled: "Open ledger for agricultural land" (Idea #18354) where the purpose and objective was to create the POC solution for digitising 914 agricultural field boundaries in Tanzania, where we showed the ability to leverage historical data (based on Satellite imagery) for optimising farmers production, i.e. lowering input costs by up to 5% and increasing yield potential by up to 5%. This has also been completed in parallel with other agricultural partners in Germany, France and Romania. Additionally, DigiFarm has further developed the idea in Fund 8 into two concepts which are currently funded in Fund 11, including: “Creating world's first digital identity for farmers using satellite imagery and AI” and idea #26780 along with “World's first open ledger for in-field agricultural data based on open source SatEO” idea #26818.
Explain what is unique about your solution, who will benefit, and why this is important to Cardano?
The uniqueness is multi-fold:
- Why is it unique? There is currently no digital open-ledger for agricultural field boundaries and historical production data in Kenya or Tanzania, the regions still lag behind developed nations, where there is very outdated and inaccurate Cadastral and map-data.
- Why is it important to Cardano? The ability to create this solution, the world’s very first digital ledger for these agricultural fields, will be a major milestone of the value that tokenization and blockchain can have in a very “traditional” and old industry which has historically struggled with digitisation and will prove a real world use-case of the technology, i.e. the agricultural value-chain is the optimal sector for this, as it lacks digitisation, transparency between the various stakeholders along the value-chain, from pre-production to retail, including lack of uniform formats, data standards, data sharing and value-based pricing, which has significantly hurt and challenged the most vulnerable farmers, i.e. smallholder farmers.
The solution to be developed in this project (Fund 12) is an extension of the work that has previously been completed in Fund 8 and subsequently Fund 11, and bring together all the technological elements in a MVPs and the ability to leverage the partners we are collaborating with partners such as NMKR and Tx.Pipe in order to create the world’s very first digital identify for the agricultural land and farmers in both Kenya and Tanzania.
Lastly, we plan to connect these NFTs with other relevant data sources. This integration aims to enhance the value of the NFTs by linking them with datasets such as weather patterns, soil health data, and crop yield forecasts.
Benefits:
- Transparency and Traceability: By representing field boundaries as NFTs, we increase the transparency and traceability of agricultural data.
- Data Accessibility: The embedded metadata makes crucial agricultural data readily accessible to researchers, policymakers, and farmers.
- Future Integrations: Connecting these NFTs with other data sources opens up possibilities for comprehensive analytics and better decision-making in the agricultural sector.