Iowa Soybean Review, March 2014 by Iowa Soybean Association

Iowa Soybean Association, 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023

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BIG DATA FARMING March 2014

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Going It Alone Is Overrated

Brian Waddingham CSIF Executive Director

Ben Novak Ted Novak

Working beside you... to do things right from the start

Fourth-generation livestock farmer Ben Novak was ready to join his father, Ted, on their row crop and cattle farm in Tama County. But, current land values made it diﬃcult to compete for crop ground, so a new 900-head cattle barn was the best option to bring Ben back to the family farm. The Coalition to Support Iowa’s Farmers (CSIF) was there to help smooth the way and answer the Novaks’ questions. “We wanted to do things right and not just meet, but exceed the rules and regulations,” said Ted Novak. “CSIF was a valuable resource for us. They made multiple trips to our farm to assess our current situation and served as a sounding board for us.” “The number one service the Coalition provided was helping us understand the rules and regulations as we bounced ideas oﬀ them,” said Ben Novak. “CSIF helped us take a proactive approach to reaching our goals and helping us grow our farm responsibly.”

YOUR FARM. YOUR FAMILY. OUR FOCUS.

To ﬁnd out how CSIF can help you at no cost, call or visit our website.

Scan this code to hear more from the Novaks.

CSIF is a not-for-proﬁt, non-lobbying organization funded by the Iowa Cattlemen’s Association, Iowa Corn Growers Association, Iowa Farm Bureau Federation, Iowa Pork Producers Association, Iowa Soybean Association, Iowa Turkey Federation and Midwest Dairy Association.

800-932-2436 • www.supportfarmers.com

Supporting soybean farmers’ No. 1 customer — the livestock farmer.

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Partially funded by the soybean checkoff.

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Iowa Soybean Association

March 2014 | Vol. 26, No. 6

Major Rebound Forecast for Soybean Acres

Soybean acres are expected to increase statewide this year.

Big Data, Big Money

The next big thing is about to hit agriculture.

Big and Small Players in Big Data

Big money is at stake helping farmers utilize Big Data.

10 ABOUT THE COVER:

“Big Data” is expected to revolutionize the agricultural industry. The upside is tremendous, supporters claim. But potential pitfalls, skepticism and questions exist.

Managing Nutrients, Capturing Data Iowa Nutrient Reduction Strategy

Bringing stories to life. There has never been a more exciting time to be involved in the agricultural industry and we look forward to showing you why with IOWA SOYBEAN ASSOCIATION LIVE — a new app that is bringing stories to life in the Iowa Soybean Review. In three easy steps, you’ll get a more in-depth look at Iowa soybean farmers and stories that affect our lives.

Get the ISA LIVE app. Download it to your Apple or Android device by searching for IOWA SOYBEAN ASSOCIATION LIVE from your app store. Its free!

Once downloaded, start the app and hover over any photo that includes the ISA LIVE icon with your mobile device and the movie will begin to play.

Watch as exclusive stories come to life.

Iowa Soybean Association

EXECUTIVE review Kirk Leeds Chief Executive Officer Iowa Soybean Association kleeds@iasoybeans.com Twitter@kirkleeds

Is Big Data the Next Big Issue? Like many of you who are reading this column, I have been in the soybean industry long enough to have seen many issues that suddenly appear on the scene and capture significant attention from farmers, policy makers and the media. Most often, this new “big issue” causes lots of meetings, dire predictions, incredible promises, numerous reports and countless magazine stories, only to soon be forgotten when the next “big issue” emerges. I don’t think this is just an agricultural phenomenon. Politicians and the media make a living out of discovering the next “big issue” and then position themselves as some great purveyor of wisdom and knowledge on the topic. It seems that every election is “the most important in our generation” as candidates seek to convince us that they have the answers to today’s (and perhaps tomorrow’s) biggest challenges. So it is with some trepidation that I suggest to you that “Big Data” is indeed the next “big issue” that will be impacting the soybean industry and all of agriculture. Our friends at Wikipedia suggest that Big Data is a “high volume, high velocity, and/or high variety information assets that require new forms of processing to enable enhanced

decision making insight discovery and process optimization.” My definition is much simpler. It’s just a whole bunch of information that I have no idea what to do with! I think most farmers feel that way every time they look at the reams of information they can retrieve from just their yield monitors. But you really don’t have to know much about Big Data to understand this: if we could indeed compile, compare and analyze all of the information that farmers are collecting on their farms, we could have a very powerful management tool. And the potential power of this information is why I believe Big Data is indeed the new “big issue.” This edition of the Iowa Soybean Review is focused on the challenges and opportunities that all of us in agriculture face as we consider a host of issues related to Big Data. Fortunately, the Iowa Soybean Association has been using Big Data for several years in our environmental programs and in the work of our OnFarm Network® research team. I believe we are well positioned to play a role in helping farmers understand how best to capture value from this new “big issue.” Enjoy this month’s magazine and share your perspective on the topic by e-mailing me at kleeds@iasoybeans.com.

American Soybean Association Directors Ray Gaesser, Corning Dennis Bogaards, Pella Jim Andrew, Jefferson John Heisdorffer, Keota Mark Jackson, Rose Hill United Soybean Board Directors Laura Foell, Schaller Delbert Christensen, Audubon Larry Marek, Riverside Jim Stillman, Emmetsburg

For advertising information in the Iowa Soybean Review, please contact Larson Enterprises, (515)440-2810 or larson6@mchsi.com. Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement.

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Farmers adopt technology

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ISA Studies Data Ownership and Protection By Policy Director Carol Balvanz

Many farmers heading to the Commodity Classic had “Big Data” on their minds. The major national commodity organizations have worked hard to craft policy to cover data ownership and utilization. With a rapid increase in precision agriculture data collection and application over the past year, American Soybean Association (ASA) also requested states to bring their policies. Iowa soybean farmers, especially those involved in the On-Farm Network®, are no strangers to precision data collection and utilization. For more than ten years, farmers involved in various On-Farm trials have submitted their data, trusting that their own data will be held confidential while their farm operations can benefit through the study of the aggregated results. The potential for advancing agricultural performance through data sharing and study continues to grow. However, with many outside industries and groups also studying that data, some farmers are concerned about who reaps the most benefit from the data collected from their farms. Just who owns the data collected from a farm? The landowner? The farm operator? The company providing the collection technology and analysis? The downstream business who buys the data from another source? Farmers have always been competitive. As margins tighten on crop farms, many farmers see their data as becoming more valuable. They have partnered with many suppliers to acquire the technology that allows easy data collection. The question of who ultimately owns and can profit from the data has risen to the top. The questions above require much study. Iowa Soybean Association (ISA) leaders and staff put together the following policy as a starting point for the ASA discussions.

ISA Contract Lobbyist Jill Altringer and ISA Policy Director Carol Balvanz invite farmers to join them at the Iowa State Capitol in Des Moines.

Precision Agriculture Data Policy

ASA supports national agriculture organizations working together on behalf of farmers and with industry to clarify policy for the acquisition, ownership, valuation and utilization of agricultural data and to provide educational opportunities for farmers on best use practices. Like most policy, it is broad and flexible, and some might say, inconclusive. But, as we discuss this policy with other groups, we have tried to adhere to the following principles: • We believe private farmers, farm operators and/or land owners own in perpetuity the proprietary data and information generated on and associated with the lands they farm and the products and practices they employ. • It is the responsibility of agriculture organizations, academic institutions and farmer-led data and information businesses to continuously share technology, knowledge, information and education materials that will empower farmers to capture, analyze, utilize, value and determine whether and how to share their data and information. • Industries or individuals seeking to acquire, access or purchase farmer data or information must adopt and utilize farmer- or agriculture organization-approved standard content and language for all contracts and agreements. • Industries or individuals developing equipment, hardware and software for the acquisition, storage, management, analysis, manipulation, interpretation and sharing of data must develop and adhere to strict standards that will ensure easy and full data utilization and portability. It’s a moving target, but one that will require our attention as agriculture rapidly progresses.

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Dietitians Featured During

National Nutrition Month! During National Nutrition Month in March, The Soyfoods Council is highlighting soy-savvy Registered Dietitians on its website. Each week you can visit www. thesoyfoodscouncil.com to learn from these experts who will provide useful—and appetizing—food and nutrition tips to help you incorporate the benefits of soy into your diet. Cooking with soy makes good nutrition sense. It’s a lean, complete protein that makes it easy to reduce fat and calories without changing the way you like to eat. Soy also provides heart-healthy fat and is cholesterol-free. Soyfoods such as tofu and TSP® (texturized soy protein) are ideal for adapting

MANGO & KALE

Pasta Salad

YIELD: 6 CUPS

SERVING SIZE: 1 CUP

DRESSING • 1⁄4 cup soft silken tofu • 1⁄4 cup plain greek yogurt • 1 garlic clove, minced • 1 Tbsp. soybean oil • 1 1⁄2 Tbsp. fresh tarragon, chopped • 3 Tbsp. apple cider vinegar • 1 Tbsp. lemon juice

SALAD: • 1 1⁄2 cups dry conch pasta shells • 1 mango, diced • 1 cup kale, chopped • 1 cup English cucumber, cubed • 1⁄2 cup craisins • Salt and pepper, to taste

FOR DRESSING:

desserts.

Purée silken tofu, greek yogurt, garlic, oil and 1 tablespoon tarragon in a food processor until smooth. Transfer mixture to small bowl and whisk in vinegar, lemon juice and remaining tarragon.

From My Kitchen to Yours!

FOR PASTA SALAD:

recipes for chili, soups, spaghetti sauce, tacos, salad dressings and

Cook pasta as directed and drain. In a large bowl combine all ingredients with dressing and mix to evenly coat. Refrigerate overnight or at least 3 hours before serving. Note: Refrigeration overnight enhances flavor.

Linda Funk Executive Director The Soyfoods Council lfunk@thesoyfoodscouncil.com 800-383-1423

thesoyfoodscouncil.com | Follow us on Twitter and Facebook. 6 | M A R C H 2 0 1 4 | S OY B E A N R E V I E W. C O M

PRODUCERS CHOOSE TO WORK WITH US BECAUSE THEY KNOW WE WORK FOR THEM. FINANCING AGRICULTURE ISN’T JUST ONE THING WE DO, IT’S ALL WE DO. Every one of our owners is a customer. So more than offering financial products with attractive rates, we offer ag-friendly terms, unsurpassed ag expertise, moneysaving services and online management tools. Discover the advantage of an entire organization that works for your success. Call 800-884-FARM.

Larry Bortz Grain & Swine Producer Rudd, IA fcsamerica.com/bortz

REEG NAMED ON-FARM NETWORK® DIRECTOR Patrick Reeg has been named director of On-Farm Network® for the Iowa Soybean Association (ISA) Research Group. As a member of the ISA Research Leadership Team, Reeg provides strategic and tactical leadership to the On-Farm Network team and serves as the point of contact with ISA staff, research advisory council and ISA board members; as well as ISA partners, collaborators and farmer stakeholders.   “Pat has contributed a great deal to the success of the On-Farm Network and to our efforts to build closer integration and partnership within ISA and with our farmer, industry and university partners,” says Ed Anderson, ISA senior director of supply and production systems. “I am confident that Pat will apply great vision, expertise and passion in leading our On-Farm Network team in conducting and

communicating collaborative work that will improve soybean farmers’ productivity.”   Reeg grew up near Bellevue, raising crops and livestock with his family on their Century Farm. He earned a Bachelor of Science degree in Agricultural Business and a Master of Science degree in Agronomy from Iowa State University. Prior to joining ISA in 2005, Reeg was the precision farming specialist with AgVantage FS, Inc. He is a Certified Crop Advisor (CCA) and past chair of the Iowa CCA board. Most recently, Reeg served as ISA operations manager – agronomic research for the On-Farm Network.   “I am extremely excited to have such an incredible opportunity and look forward to serving the research needs of Iowa soybean farmers,” says Reeg. “The volume of data farmers can collect on their fields continues to increase. The On-Farm Network continues to be a valuable, unbiased resource in filtering through this data to help farmers make important decisions related to profitability and the environment.”

Linking Iowa soybean producers to global markets

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Photo by Marc Sterling

6 THINGS FARMERS SHOULD KNOW ABOUT SEED TREATMENTS Many farmers may be questioning whether their soybeans need fungicide seed treatments this planting season. But that depends on many factors, from weather and planting date to drainage and seed costs. And if conditions or field history do not dictate the use of a fungicide seed treatment, then it may not be the best option. The soybean checkoff funds seed-treatment research, providing U.S. soybean farmers with practical production knowledge and helping protect their yields against seedling diseases. Applying seed treatments is a rapidly growing trend. In fact, the soybean industry estimates that 60 to 70 percent of the 2014 soybean seed planted will have a seed treatment. That’s compared with 30 percent in 2008 and 8 percent in 1996, according to Gary Munkvold, Ph.D., plant pathology and microbiology professor at Iowa State University. But, despite the rise in seed treatment use, it might not be the best option for an operation. Here are six things to consider: 1. Farmers with poorly drained or no-tilled fields, continuous-soybean or soybean-corn rotations and a history of replanting are the most likely to see the added benefit of using a seed treatment, according to The Ohio State University. 2. When spring conditions are cool and wet and when planting occurs in late April to early May, seedtreatment fungicides are an effective tool, according to Shawn Conley, soybean extension specialist at the University of Wisconsin-Madison. 3. The use of a seed treatment is most impactful in fields with a history of post-planting problems, such as minor soil crusting, temporary flooding, soil compaction or poorly-drained soils, according to the University of Kentucky. Treatments are also useful when farmers use low seeding rates and when farmers plant seed with a moderate germination rate or when the germination rate is unknown. 4. Using a fungicide treatment on soybean seeds will increase the probability of achieving a satisfactory stand and will enhance the early-season vigor of established seedlings, according to the Mississippi Soybean Promotion Board. 5. With the increase in cost of seed, many farmers don’t want to overplant. As a result, according to Iowa State University and University of Wisconsin-Madison, some are decreasing their seeding rate and using the money they save on seed treatments instead. 6. Fungicide seed treatments showed an average yield increase of 2.5 bushels per acre over an eight-year period, according to Kansas State University Research and Extension. M A R C H 2 0 1 4 | S OY B E A N R E V I E W. C O M | 9

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MAJOR REBOUND FORECAST FOR SOYBEAN ACRES By Matthew Wilde

oybean acres are expected to increase statewide this year, possibly to

heights not seen in nearly a decade.

Nationally, nearly 80 million acres of soybeans are predicted.

Iowa State University (ISU) grain economist Chad Hart predicts soybean plantings will exceed 10 million acres, which hasn’t occurred in Iowa since 2006, up from 9.3 million last year. Economics, disappointing continuous corn yields last year and agronomic factors are the major drivers behind a projected 900,000-acre jump, he said. Nationally, nearly 80 million acres of soybeans are predicted. Though many decisions will weigh on farmers’ minds when making final planting decisions, Hart says it will ultimately come down to revenue potential. After years of corn winning

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the battle over soybeans, Hart contends the tables have turned. Taking into account cost-ofproduction figures and November futures prices at the beginning of January, Hart says soybeans have a $30 to $40 advantage per acre over corn in Iowa — about the exact opposite from a year ago. Economists from Purdue University, based in Indiana, says soybeans will likely generate $100 more per acre. “From an economic standpoint, beans have a better return,” Hart says. “Beans are (also) the lower cost crop. When you add those pieces together, I think we see some major shifting.”

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A more balanced crop rotation is better for the land and the state, soybean experts say. Iowa soybean acreage declined about 1.65 million acres from 20012012, while corn acres increased 20 percent. Economics drove many producers to plant more corn than soybeans, especially after the ethanol boom in 2005. The drop in soybean acres was so alarming, the ISA commissioned a study to explore and possibly reverse the troubling trend. CEO Kirk Leeds says a continued downward spiral could lead to an exodus of the state’s soybean crushing facilities and lower prices. “It’s less jobs and economic development in the state. I don’t think farmers want to be dependent on one crop,” he says. Based on conversations with industry officials and farmers, Hart believes the southern two-thirds of Iowa will plant less corn-on-corn and return to a more traditional rotation. Areas of central and north central Iowa, though, will still favor continuous corn. Plus, corn will likely dominate last year’s prevent plant acres. ISA At-Large Director Lindsay Greiner of Keota plans to plant about 5 percent more soybeans this year, totaling 40 percent of his acres, primarily due to profit potential and falling continuous corn yields. Last year, corn-on-corn averaged 30 bushels less than rotated corn, he says. Other ISA members reported similar results. Continuous corn usually averages about 15 bushels less than first-year corn, and even less when stressed, according to ISU data. Last year’s growing season was marred by the wettest spring on record and a flash drought in the summer. “Just talking with my neighbors, I don’t think people will be doing anything really drastic. Some are leaning more toward beans,” Greiner says. Kyle Maas, a farmer and DuPont Pioneer seed salesman from Duncombe, expects a 5-to 10-percent increase in soybean acres in his area. Maas says “challenging” growing

conditions for continuous corn the last two years, increased corn rootworm pressure and income potential are prompting many farmers like himself to plant more soybeans. Hart said old crop soybeans have a 3-to-1 price ratio advantage over corn. The upcoming crop is 2.5-to-1. A 2-to-1 ratio favors corn. “I think farmers will use this pause in the market to straighten out some production issues,” Hart says. “The reason you have a corn/ soybean rotation is it does help agronomic (wise). It puts nitrogen back in the soil and knocks down rootworm problems.” Not everyone foresees a major jump in Iowa soybean acres, though. Steve Johnson, an ISU Extension farm and ag business management specialist based in Polk County, expects soybean numbers to remain relatively stable. Other states like Indiana and South Dakota will contribute more to record soybean plantings nationwide than Iowa, he says. “It has everything to do with the fact Iowa farmers are pretty much geared up to grow corn. It’s nothing against soybeans,” Johnson says. “They’ve invested in infrastructure like equipment and grain storage. “It’s basis. Iowa farmers get paid a lot more, on average, for cash corn than (farmers) across the Corn Belt … because of the number of processors (ethanol plants),” he adds. “They’ve got a market year round. Beans are becoming more of a six month market because of South America.” Johnson doesn’t believe farmers pay too close attention to the price ratio that currently favors soybeans. Until cash rents retreat, he says farmers will still plant corn because it grosses more dollars per acre. Jim Cisco, Monsanto’s regional agronomy lead in Iowa, doesn’t expect a big shift to soybeans either. “It wouldn’t hurt our feelings if farmers plant more soybeans,” Cisco says. “Some areas in the state are dealing with heavy rootworm pressure. It would help to get a non-host crop out there to slow it down.”

KYLE MASS, Duncombe

LINDSAY GREINER, Keota

CHAD HART, Iowa State University

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BIG DATA, BIG MONEY By Matthew Wilde

The next big thing is about to hit agriculture. Experts say it’s just as big as John Deere’s plow or John Froelich’s gasolinepowered tractor — two inventions that changed farming and made the United States the world’s agriculture leader. “Big Data” is expected to revolutionize the industry. Like the plow that quickly turned virgin prairie into rich farmland and the tractor that made farming easier and more efficient, farmers are beginning to use enormous amounts of information — everything from yield and fertility maps to weather modeling and seed research — like never before to be more productive and profitable. Agriculture and technology experts say Big Data, as it’s generally referred to in farming circles, will maximize yields and minimize inputs. Agriculture and technology companies are lining up to supply it for a price. The upside is tremendous, supporters claim. But potential pitfalls, skepticism and questions exist. Who will own the data? Will it pay off as projected? Could data be used against a farmer or company? All were questions raised at the December Iowa Soybean Association (ISA) board and policy meetings. “I believe there are a lot of advantages in figuring out how to mine these large data fields, but there are also concerns,” says Kirk Leeds, ISA CEO. “There are issues with control and access. I think it’s critically important ISA participates as a leader in a collaborative, coordinated process

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… to understand what role commodity organizations will play on behalf of farmers. “I don’t think there’s any doubt this is the next big step,” he adds. Iowa AgState — a group comprised of leaders from farm organizations and businesses to develop a proactive, futuristic vision for Iowa agriculture — devoted much of its January meeting to Big Data. It’s an emerging trend that’s relatively unknown to many producers, members concluded. Several ISA officials attended the AgState meeting at the Iowa Farm Bureau office in West Des Moines, which featured a presentation on Big Data from The Hale Group, an agricultural consulting firm from Danvers, Mass. ISA President Brian Kemp, who farms near Sibley, is chairman of the organization and Leeds is on the board. According to Bob Ludwig of The Hale Group, there is no single standard definition of Big Data. But one of the more accepted versions is: “Big Data is data whose scale, diversity and complexity require new architecture, techniques, algorithms and analytics to manage it and extract value and hidden knowledge from it.” Ludwig says 2014 is a pivotal year as Big Data picks up steam. It can’t be stopped, he says, but farmers can shape its progression. “It will bring great benefits to agriculture and the world at large. But monitor how it’s rolled out to make sure it’s fair to row crop farmers,” Ludwig says.

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Big Data starts with precision ag

Matthew Darr, associate professor in Ag and Biosystems Engineering at Iowa State University, says farmers generate an enormous amount of data every year — fertilizer, planting, crop protection and yield information and maps, etc. But producers have only scratched the surface of how to use it. By combining on-farm information with third-party data such as current and future weather patterns, soil fertility, topographic data and satellite/aerial imagery, Darr says farmers will be able to make better decisions. Agronomic data from land grant universities and companies will be analyzed to help farmers figure out what seed to plant when in specific fields, plant populations, traits, genetics, weed and insect control programs and other decisions. Grain marketing is also part of the mix. Darr believes Big Data will allow farmers to merge all aspects of raising and selling crops. “I believe it’s going to unlock the timing piece for us. It’s always been a major limitation,” Darr says. “We look at yield data now and say that’s what happened. What can I do next year to change it? “Big Data will allow us to merge weather information and in-season, real-time crop production information from drones to make strategic decisions that will have a tangible impact on profitability and productivity,” Darr adds. “That’s why I think it’s going to be a shapeshifting type of technology.”

ISA CEO Kirk Leeds, left, talks about “Big Data” with Bob Ludwig, center, of the Hale Group and Marion County farmer Roger Zylstra at the Iowa Ag State meeting in January.

Making critical agronomic decisions on small areas within each field will undoubtedly increase yield and farmer income, Darr and other experts say. How much is unknown. But 5 to 10 bushels or more per acre is likely. “It’s pretty easy to see opportunities in the $40, $50 to $60 per acre range by bringing this technology to bear,” Darr says.

Why now?

According to The Hale Group, computing capacity is now large enough to process vast volumes of data. It will enable the promise of precision agriculture to be realized. Darr, ISU’s Big Data expert, and Ludwig say farmers can’t do it alone. It takes a tremendous amount of infrastructure, expertise and funding. That’s where agriculture and technology companies come in. Several established and new businesses, both large and small, have emerged as big players in Big Data.

Bob Ludwig of the Hale Group, left, explains the concepts behind “Big Data” with colleage John Powers at the Iowa Ag State meeting in January.

MATTHEW DARR, Associate professor in Ag and Biosystems Engineering at Iowa State University M A R C H 2 0 1 4 | S OY B E A N R E V I E W. C O M | 1 3

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[ Continued from page 13 ]

Agriculture giants like Mosanto, DuPont Pioneer and John Deere are involved and offering products to customers. Startup companies include MyFarms, Yield Pop and Farmeron, among others, which analyze data for customers. IBM and Hitachi are also players. Business models vary greatly. Some charge per acre, others have annual subscription fees or contracts with input companies that provide data services to customers. Others include it in the price of equipment, but that could change in the future. The amount and type of data analyzed by companies vary widely as well. For example, Monsanto charges $10 per acre for its Field Scripts product. It uses farmers’ data such as field boundaries, yield history and soil information to suggest the best seed and variable seeding rate. DuPont Pioneer’s Field 360 costs $500 annually to provide field-by-field crop plans and other services. Seed and chemical companies, like NuTech Seed of Ames, hire MyFarms to analyze data for customers. Ludwig said Big Data has the potential to be a multi-billion dollar industry. Service fees could increase to $20 to $25 per acre as the value of Big Data increases. Monsanto estimates revenue potential of $20 to $25 billion per year, servicing more than 1 billion acres. Darr believes Big Data will mutually benefit farmers and businesses. ISU stands ready to help guide producers. “It’s our role to make sure that producers understand the value they can get from this information. And, educate them on different terms, topics, data ownership and licensing,” Darr says.

Farmer Reaction

That’s good news, according to Kemp. ISA’s president says the farmer-led organization will be a conduit of timely information as well since the vast majority of producers do not understand the potential impact of Big Data. ISA members are worried about data ownership and privacy, Kemp says. Some feel it could be used to unfairly acquire ground, manipulate land and crop prices or be used by corporations without proper compensation. “Certainly, the concern is corporate or commercial businesses using my data in a manner that is profitable for them and harmful to me,” Kemp says. Representatives of Monsanto, DuPont Pioneer and John Deere and other companies all say farmers are ultimately in control of their information and they wouldn’t do anything to break their trust. Ludwig suggests farmers read usage agreements very carefully. ISA leaders adopted a Big Data policy in December. The policy states: “We oppose the acquisition and utilization of any and all private farmer, farm operator or land owner data and information for purposes that do not directly benefit the original owner of said data and information, or puts the original data owner in a compromised or disadvantaged situation in managing their operations for maximum profitability, productivity and sustainability.” Ultimately, Kemp believes Big Data will be a boon for agriculture. “I anticipate lower input costs and more consistent higher yields through the data I collect on my farm,” he says. “It will drive profits for those who understand and adopt it.”

I anticipate lower input costs and more consistent higher yields through the data I collect on my farm. BRIAN KEMP, ISA President

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GETTING THE BIG PICTURE ON

“BIG DATA”

By Ed Anderson, ISA senior director of supply & production systems

We are hearing a lot about “Big Data” in agriculture these days. Farmers, commodity groups, academia and industry leaders see great opportunity – and uncertainty – surrounding this topic. It seems timely to take a step back and consider the big picture on big data. The fact is, Big Data is not new, even in agriculture. In the information age, staggering amounts of data are generated, captured, analyzed and stored every day. Considering field crops specifically, the tools and technologies of precision agriculture continue to expand farmers’ abilities to collect diverse data on an increasingly finer level. Of greater significance, and primary focus of concern, is the exponential growth in computational power to manipulate, interpret and utilize agricultural data. In the big picture, there are as many value capture opportunities from agricultural data as there are steps in the value chain. Farmers wish to analyze their data to improve productivity and profitability. Seed, fertilizer, chemical and equipment companies wish to leverage data for product development and placement and increased profits. Land owners, insurance companies and financial institutions wish to access data for risk assessments and pricing. Food, feed and fiber industries wish to more tightly manage their supply chain costs and demonstrate sustainability. To a large extent, farmers and those involved in conducting and regulating

agribusiness have not previously considered the broad implications of Big Data. There is almost no precedent, policy or law governing the collection, ownership, dissemination or use of agricultural data. The Iowa Soybean Association (ISA) has dedicated many years of effort in providing unbiased, onfarm production research protocols, spatial data analyses, technical assistance, water quality assessments, adaptive management planning and information that empower our farmer stakeholders to continuously improve their productivity and profitability in sustainable ways. As a result, ISA is a trusted and credible source for scientifically robust and environmentally-sound evaluations of production and conservation practices, products and data. ISA accesses and analyzes huge amounts of individual farmer data in strict confidence, while more broadly sharing only aggregated data summaries. So, what’s next? As the ISA On-Farm Network®, Environmental Programs & Services and analytics teams pursue greater internal integration, external partnerships and farmer engagement, we are focused on expanding cropping systems and natural resource management research and information. ISA’s sophisticated life cycle and productivity analyses are farmer-focused and data-driven to more holistically enhance operational efficiency, improve production, optimize input expenditures, implement conservation practices, better anticipate and manage risks and improve marketing strategies. We strive to share the big picture of Big Data by deepening farmers’ understanding of their data. It is our belief that farmers are uniquely positioned to derive operational value from their data and influence policies for data ownership and access. Is data an agricultural commodity?

Some things to consider include: What data should be collected? How is this data managed, analyzed and used? Who owns the data and what are the privacy issues? What data should be shared and can farmers derive value from sharing their data? Who is allowed to collect field data? Are there new data inputs and analysis systems for operation-specific forecasting, predictive modeling and risk management? ISA is partnering with other commodity organizations in order to develop information for farmers on big data. The more farmers know, the better positioned they will be to make data-driven decisions for improving their operations and influencing policy to determine who else can access and benefit from their data. If you have insights and opinions on the topic of Big Data, I’d like to hear from you. My email address is eanderson@iasoybeans.com.

BIG DATA

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BIG & SMALL PLAYERS IN BIG DATA By Matthew Wilde

ig money is at stake helping farmers utilize “Big Data.”

Several established and new companies are leading the way to cash in on the burgeoning trend.

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Monsanto has spent more than 1 billion in the last two years buying companies specializing in precision agriculture and predictive modeling and developing Big Data products. Its initial offering, FieldScripts, is available this year in Iowa, Illinois, Indiana and Minnesota for $10 per acre. Farmers provide seed suppliers who are FieldScripts certified with field boundaries, three years of yield history and soil information. Monsanto will then write a prescription for the best three to five hybrids and provide a variable seeding rate that will work on a specific field to optimize seed performance. “We believe using data science can help … drive yield on the farm,” says Dave Rhylander, FieldScripts launch lead. Approximately 150 farmers tested different versions of FieldScripts on 40,000 acres of corn in the four-state area last year. The version being introduced this year resulted in a 5- to 10-bushel yield advantage. At $5 per bushel, a payback of nearly 3-to-1 or more is possible based on results. Rhylander says farmers raved about the time savings. And, hybrid selection was less stressful. “They couldn’t believe how simple and easy this system was,” he says. Monsanto expects several hundred thousand acres to be enrolled in FieldScripts this year. That number could eventually exceed 1 billion acres globally, according to company estimates. With the help of grower groups, Monsanto developed a data privacy policy that prevents the release of information that would hurt farmers. It’s available at www.fieldscripts.com/Documents/ FarmerPrivacyCommitment.pdf. $

Agribusiness giant Monsanto estimates the revenue potential of Big Data — analyzing enormous amounts of agronomic, research and development, yield, weather, marketing and other information to help farmers make better decisions — could be as high as $20 billion per year. The company is one of several making huge investments and rolling out new data products and services. DuPont Pioneer and John Deere are also major players. Numerous startup companies like MyFarms and Yield Pop have dove head first into the data pool as well. This year will be critical in competitor positioning, according to the Hale Group of Danvers, Mass., considered a leading authority on Big Data. Bob Ludwig of the agricultural consulting firm says it will revolutionize the industry. Big Data, he says, will help farmers make critical decisions like seed selection and variable planting and fertilizer rates. Ultimately, growers will become more productive and profitable. But farmers can’t do it alone. That’s where companies, both large and small, come in. “I believe this technology has incredible benefits,” Ludwig says. “There needs to be open

discussion between service providers and the farming communities to reach agreements on how benefits will help all parties. Service providers need a return on investment and farmers need to benefit, as well.” For growers looking to capitalize on Big Data, Ludwig says they have two options: vendor-driven or farmer-driven services. Ag input and equipment companies, or vendors, obtain farmer data via user and licensing agreements and sell a range of services back to producers. Or, farmers retain control over data and allow technology companies to develop specific services based on the data. Ludwig’s advice to farmers is to “keep your options open to see which provides the best return on investment.”

Monsanto

Big Data, or data science as Monsanto calls it, is an integral part of the company’s future. As one of the largest ag input providers in the world, Monsanto officials say it’s good business to do everything they can to help customers succeed.

[ Continued on page 18 ]

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DON VAN HOUWELING, John Deere [ Continued from page 17 ]

FieldScripts is currently only available for corn, but soybeans will be added soon, along with other offerings like fertility prescriptions. Monsanto recently purchased Climate Corp. for $930 million, which offers free weather data and a suite of in-season decision support tools for a fee.

John Deere

The world’s largest farm equipment manufacturer is big into Big Data, and it’s collaborating with other ag companies to help farmers. John Deere’s integrated wireless technology links equipment, managers, operators, input suppliers and agricultural consultants to increase productivity and efficiency of farms and businesses. “(Big Data) creates a mutually beneficial opportunity,” says Charles Schleusner, John Deere product line marketing manager. Deere’s goal of utilizing Big Data is to optimize equipment performance, logistics and allow easy, real-time data flow between machines and trusted advisors to enable proactive management decisions. John Deere currently collaborates with DuPont Pioneer, Dow, BASF and other companies. DuPont Pioneer, for example, uses data supplied by John Deere to create cropping plans for farmers. This could include fine tuning seed selection, planting dates and fertilizer applications. Schleusner says farmers are using Deere equipment like planters and sprayers with variable-rate technology, but most aren’t maximizing their capabilities. “We see the value of Big Data as unlocking the promise of precision agriculture. That’s begun, but has not taken off yet,” Schleusner adds. Customers buying John Deere machines this year receive one year of JDLink™ for free, which includes machine monitoring, Remote Display Access, a 2014

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trial of Wireless Data Transfer and the use of Ag Decision Tools in the Operations Center on MyJohnDeere.com. Currently, an annual subscription is $700. With permission of customers, John Deere uses data generated by its machines and onboard GreenStar™ 3 2630 displays to improve customer service and future models. If customers don’t want data to be used anonymously by John Deere, Wireless Data Transfer for other purposes won’t be available at this time. John Deere has a strict data ownership and privacy policy that can be found at www.JohnDeere. com/trust. The company believes the machine owner is in control of the data. If a famer is harvesting soybeans for another farmer, for example, it’s up to the machine owner to allow the data to be transferred where it needs to go and Deere will provide technology to make this transfer seamless. “We take the topic of data security very seriously,” Schleusner says.

DuPont Pioneer

DuPont Pioneer considers themselves, well, a pioneer in Big Data. The Iowa-based seed

and genetics company has been helping customers make sense of agronomic and other information for more than 10 years. “We were working on this when it wasn’t cool,” says Joe Foresman, DuPont Pioneer’s director of services. DuPont Pioneer has created yield and other maps covering more than 20 million acres for customers. It’s turning data usage up a notch. Foresman says they used to offer a descriptive service, which helped farmers analyze how effective a plan was. Now, the company is in prescriptive mode — analyzing various layers of data from customers and other companies to create management zones. Current offerings include Field360TM, which includes downloadable apps for wireless devices such as Notes and Tools. Field360 Select, a $500 per year subscription based service, includes interactive field maps, a growth stage estimator, powerful analysis tools and other options. DuPont Pioneer representatives use the programs to help farmers make planting, fertilizer, insecticide, weed management and a host of other decisions to maximize yields. Farmers have remote access

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to Field360 from an iPad and can relay observations and pictures of fields back to their DuPont Pioneer rep or agronomist. The opposite is true as well. “Farmers can take this personalized intelligence and make decisions in a more timely fashion,” Foresman says. The collaboration with John Deere is especially exciting, he adds. Data analysis used to take months when it was moved by flash drives. Those days are over. “This fall we had a customer finishing up harvest in a field at noon and the data was moved from the John Deere cloud to DuPont Pioneer. Our analytics were applied and a new fertilizer prescription was provided back to the customer who had a spreader in the field in less than two hours after the combine left,” Foresman says. Both Field360 programs offer the best unbiased information available, he adds, even if that means recommending competitor products. Foresman says data privacy is also very important and the company won’t do anything to jeopardize customer trust. DuPont Pioneer will announce new data services later this year to fine tune management zones.

Startup data companies

Several new businesses have sprung up to help farmers analyze data. Two startups getting a foothold in the Corn Belt are MyFarms, based in Portland, Ind. and Yield Pop, based in Zurich, Switzerland. Company representatives say their goal is to help growers succeed. MyFarms Managing Director Chris Fennig is excited about helping the industry graduate from the precision ag era to the decision ag era. Fennig says a growing list of major seed, fertilizer and chemical companies have contracted MyFarms to deliver data services to their customers. “MyFarms combines everything farmers know about their fields with everything input suppliers know about their products to identify the best management recommendations in each field,” Fennig says. “We want to help all farmers improve. “In MyFarms, the farmer maintains control and ownership of his valuable farm data, while accessing all that his best suppliers know about their products,” he adds. “We call this a ‘mutually respectful’ approach.”

Fennig says client corn yield improvements of 12 bushels per acre are common. He expects similar feedback on soybeans this year. The company was founded in 2009. It has agreements with ag input suppliers across the Midwest and in South Africa covering about 1 million acres. Iowa partners include Prairie Brand of Story City, NuTech Seed of Ames and Latham Hi-Tech Seeds of Alexander. Yield Pop was founded by ex-Syngenta employees Alex Wimbush and Matthew Perkins. For $100 a year, growers get unlimited access to the company’s data base of more than 100,000 soybean and corn field trials testing more than 5,000 products. “The whole point is to give farmers a comprehensive, independent and transparent way of figuring out what seed will work best for them,” Wimbush says. The partners say that was lacking in agriculture. Yield Pop offers a filtering mechanism where farmers provide criteria like soil type, above ground insect control, tillage and other agronomic items to find the right seed. More than 1,000 customers have signed up as of the end of January for the company’s inaugural year. “You see a lot of skepticism by farmers and the media about how (Big Data) is going to be used and what the advantage will be,” Wimbush says. “That’s totally fair right now because we haven’t realized the benefit yet. As soon as these tools start to improve practices and profitability, all of a sudden it will be a no-brainer to (use them).”

Farmers can take this personalized intelligence and make decisions in a more timely fashion. JOE FORESMAN, DuPont Pioneer

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MANAGING NUTRIENTS, CAPTURING DATA By Heather Lilienthal

When it comes to the subject of the Iowa Nutrient Reduction Strategy, the name of the game isn’t only about managing nitrates and protecting water quality. It’s also about farmers managing and protecting their data. Data can be as valuable as the land it’s gather from these days and officials deemed with reporting progress of the strategy are facing challenges and opportunities. As Iowa farmers implement practices outlined in the Iowa Nutrient Reduction Strategy, ag leaders encouraged them to discuss their experiences with other farmers, share success stories with the nonfarming public and explain how goals can be approached and measured. “Iowa needs to be a leader in conservation, just as it is regarding food and fuel (production),” said Matt Lechtenberg, Iowa Department of Agriculture and Land Stewardship (IDALS) water quality coordinator, during a seminar at the 2014 Iowa Pork Congress in Des Moines this winter. “There are a lot of good things farmers are doing out there and we want to harness that (to show) the collective effort towards a common goal.” The strategy is a science-based program to reduce nitrate and phosphorous loads in Iowa waterways by 45 percent from point and nonpoint sources. Iowa lawmakers overwhelmingly approved $22.4 million last spring to support the Iowa Nutrient Reduction Strategy. Practices outlined in the program farmers can adopt include installing bioreactors, planting cover crops and using nitrogen inhibitors, conservation tillage, wetland restoration and many others. Tracking the progress will be challenging. “Everything is so variable (in agriculture),” said Lechtenberg. “Decisions on the landscape can change each year.”

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In order to track that progress, the proper connections must be established, according to John Lawrence, the associate dean for extension and outreach in Iowa State University’s (ISU) College of Agriculture and Life Sciences and director of ISU Agriculture and Natural Resources Extension and Outreach. Lawrence is also director of the newly-created Iowa Nutrient Research Center. “We’ve linked research to yields. Now we need to show the connection between the practices and water quality,” he said. “Otherwise, we’re shooting in the dark.” The Iowa Nutrient Reduction Center was established at ISU by the Iowa Board of Regents in response to legislation passed last spring by the Iowa Legislature and signed by Governor Terry Branstad. The center received $1.5 million for 2013-2014 from the legislature for research in areas that include evaluating the performance of current and emerging nutrient management practices, providing recommendations on implementing the practices and developing new practices. The first set of 10 projects, led by teams of scientists at Iowa State, the University of Iowa and University of Northern Iowa, address critical needs or gaps in nitrogen and phosphorus research identified in the science assessment that was part of the Iowa Nutrient Reduction Strategy. The projects are outlined at the center’s website at www. nutrientstrategy.iastate.edu/center/projects. ISU isn’t the only entity making assessments with information. Brent Johnson knows the importance of data. He collects it from his Mansonarea farm to help him make management adjustments and improvements. But data (collecting, analyzing and interpreting it

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for farmers) is also his job. He and his wife, LuAnn, founded a business called LABRE Crop Consulting, Inc. in the early 2000s. The company started out as an independent soil sampling and consulting service for area farmers and has grown to serving farmers across the state and several surrounding states. They offer soil, water and manure sampling services, equipment and software sales and data collection and management assistance. “This technology has only been around for a handful of years and it’s amazing how quickly it evolves,” said Johnson. The company can help farmers manage information regarding planting, harvest, guidance patterns, monitor set-ups, prescription maps for spraying, application and more. “We sell a service and we don’t sell inputs,” said Johnson. “We help our customers understand what technology can benefit them and train them how to use it. A farmer can be really good with a wrench, but there can sometimes be a disconnect with technology. It’s vital that everything is properly calibrated (regarding equipment and machinery arrangements) in order to make that information valid so the farmer can make the most informed decisions.” Regarding the Iowa Nutrient Reduction Strategy, Johnson knows the

importance of establishing baselines to track progress. “Our company is unique in that I farm and everyone on staff has a farm background. My own farm is located in the Raccoon River Watershed and I know I need to be engaged (in the strategy),” he commented. “I have gone to strip till methods and apply nitrogen in three passes, one each in the fall, spring and summer. Each farm is different.” He said ag data collection can often be similar to human DNA that can be used to solve years-old crimes. “The information we collect today can be developed to back-analyze an area and then move ahead,” said Johnson. “But farmers simply need to get started and understand how information about their fields can help them make better decisions that lead to stronger yields, stronger conservation efforts and support their efforts to make a living.” Lawrence stressed that while it will take time for farmers to reach the strategy’s goal, it’s not an impossible task. “This is not a ‘tweak-around-theedge,’ get rid of the bad actors approach,” said Lawrence. “We are taking a logicminded approach. We want to monitor changes in the water and make the changes on the land. There are things we can measure including acres and the number of people involved.”

We’ve linked research to yields. Now we need to show the connection between the practices and water quality. Otherwise, we’re shooting in the dark.

JOHN LAWRENCE, Iowa State University

BRENT JOHNSON Labre, Crop Consulting, Inc. M A R C H 2 0 1 4 | S OY B E A N R E V I E W. C O M | 2 1

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SUPPORTING SMART DECISIONS By Heather Lilienthal

As the operations manager of analytics for the Iowa Soybean Association’s (ISA) On-Farm Network®, Peter Kyveryga knows that facts and data are important in farming. His expertise with ‘Big Data’ started on a small scale. He grew up in a relatively small village called Blychshanka, located in southwest Ukraine. The village was home to approximately 300 families and a collective farming operation spanning about 3,000 acres. “We had a fairly diverse ag system,” recalls Kyveryga. “We grew wheat, corn, sugar beets and forages. There were also big gardens; fields where most of the food, fruit and vegetables, were grown.” This is where Kyveryga started his relationship with soil, crops and data. “I liked agronomy from the beginning,” he says. “It was an easy decision for me to pursue that focus.”

Kyveryga attended the National Agricultural University of Ukraine in Kyiv, majoring in agrichemistry and soil science. It was the journey into education and agriculture that led him to a career in analytics in Iowa. After meeting Dr. Alfred Blackmer, an Iowa State University (ISU) soil fertility professor, in Ukraine, Kyveryga traveled to Iowa to help coordinate a project connecting Iowa and Ukraine high school students. He earned a graduate degree from ISU and started working with on-farm trials. It wasn’t long before ISA hired Kyveryga to focus on research validation and data analyses. “It certainly is a different dimension of science, working with farmers,” explains Kyveryga. “Their systems are complex and complicated. We simply can’t be collecting information. It must be

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high quality, and summarized in specific ways to help farmers make better management decisions.”

Volume and value

Kyveryga says research is a careful balance of data volume and value. “While we strive to collect large volume of data, it’s not all about collecting mass quantities,” says Kyveryga. “We want high-quality analysis from what we collect. In our case at ISA, we are always developing systems to help us do that. We need to be farmer-friendly and offer summaries that will help them avoid risk and better manage their cropping systems.” He says a researcher can have all the data in the world, but if data are not reliable, these data won’t be useful. “Working with data and analyzing it to form a summary for farmers isn’t like working from a

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cookbook,” says Kyveryga. He says multi-level data is vital, offering data capturing in space, time, weather conditions, planting timeframes and other variables. “Data isn’t neutral,” he comments.

and probabilities of management performance, you see first-hand how they value this information. Blending our environmental and natural resource work with cropping systems is a logical collaboration,” says Wolf.

Working with farmers

Trusted partnership

For ISA’s Environmental Programs & Services (EPS) and On-Farm Network research work, staff work closely with participating farmers to make sure data is accurately collected and recorded. In addition, the human element is key. “For On-Farm Network trials, we collect spatial data, but we also need on-farm management data to truly make this useful,” says Kyveryga. “We need to understand and be aware of tillage, application rates, planting dates, hybrids used. We need that farmer insight.” This information will be key to the ISA Research teams as they focus on issues such as nutrient management and water quality. “On-Farm Network focuses on the agronomic side, while EPS is targeting water issues,” says Kyveryga. “We need to understand and explain how agronomic issues affect water quality. And when you throw in the variable of weather, it keeps things challenging.” EPS Director Roger Wolf says Kyveryga’s analytic eye is vital to the group’s efforts. “When you witness hundreds of farmers listening intently to Peter leading a discussion on statistics

The ISA works with a variety of partners, within agriculture and beyond, to continue to collect, analyze and share data. “We have carefully established a trusted system when it comes to working with farmers and on-farm trials,” says Kyveryga. “People are very concerned about data sharing and we stress that we never share the participants’ identity regarding the data we collect. We respect the ownership (of the data).” Kyveryga’s analytical expertise offers an important connection for ISA’s research team and the association’s farmer members, according to Ed Anderson, ISA senior director of supply and production systems. “The ISA Research department is contributing to an almost exponential growth in agricultural data capture, management, analysis and interpretation. As our own onfarm and environmental research programs continue to grow, and as we establish additional partnerships, it’s important that we maintain our capacity to turn these impressive data sets into useful information for the benefit of researchers and farmers,” explains Anderson.

He says the establishment of an Analytics Team, comprised of Kyveryga and Suzanne Fey, within the research organization allows ISA to distinguish the importance of this area of technical expertise for providing leadership and support across all programs and among the group’s partners. In addition to communicating with ISA’s staff and Iowa’s farmers, Kyveryga also shares the information via published papers and articles with scientific journals and outlets. “Peter plays a key role in communicating and disseminating this information in presentations, posters, newsletters, articles, and peer reviewed publications,” says On-Farm Network® Director Pat Reeg. “Moving forward, the Analytics Team will integrate research data from ISA’s OnFarm Network, EPS and other collaborative partners providing a better understanding of the complexities of today’s cropping systems and interaction with the environment.” For Kyveryga, it all circles back to his agricultural roots in the Ukraine; back to a time when his curiosity for soils and statistics first formed. It’s that curiosity and continuous search for better systems that keeps him moving forward. “I enjoy looking for those next techniques and tools and determining how we can better explain what we see,” he says.

It certainly is a different dimension of science, working with farmers. Their systems are complex and complicated. PETER KYVERYGA, ISA Operations Manager of Analytics M A R C H 2 0 1 4 | S OY B E A N R E V I E W. C O M | 2 3

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