Fall 2010 Ag Technology Study By: Kristi Moss & Sara Steever

1. Adoption of
Communication Tools
in Agriculture
By: Kristi Moss & Sara Steever

2. As agri-marketers, we spend a lot of time trying to understand where producers are getting
their information. We know vehicles for information are changing rapidly, but we really want to
know how quickly producers are adopting these new communication tools.
Factors like operation size, gender, age or experiences outside of the operation would seem
to have an effect on the adoption of communication technologies. But how big of an impact
are these factors?
Paulsen randomly selected 25 farm families to ask how they use communication technology
in their operations. We came away with five important factors to drive communication
strategy in the future.
Throughout this study are excerpts from those conversations and some conclusions drawn
from these interviews.
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3. Operation Size vs. Tech Savvy
producer
1500+ acres
regular cell phone
smartphone
computer with 750
no Internet access multiple computers
acres Internet access
no computer
100+ acres
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4. This study is not a substitute for the scientific research we come to rely on performed by
Farm Progress, AMR/NAFB, Meredith or any other organization that interviews
thousands of producers.
But what these producers told us is important, insightful and sometimes entertaining.
We can learn a lot from them.
Producers Discuss the Technologies They Currently Use
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5. The Right Place
In speaking with producers, we found some commonalities and some real surprises.
And don’t think for a minute that digital savvy can be guessed at a glance.
We spoke with farmers aged 15 to 75, male and female, with operations from 120 to 50,000
acres. There continues to be a strong level of comfort with traditional medias like print and
radio that cross all demographics. But there are factors that drive how farmers get their
information right now.
Reading print is very different from reading on a desktop computer or laptop and very, very
different from reading on a mobile device. Magazines and newspapers can introduce new
concepts because the reader is more passive, relaxed and in familiar, trusted territory.
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6. Because producers spend a lot of time in tractor, combine, truck and pickup cabs, they
describe themselves as listening to radio frequently. Similarly, TV still has a foothold, due to
the prevalence of televisions in the home.
Desktop and laptop computers require a more active behavior, most frequently beginning
with search, but with ag information websites as a secondary source of online information.
Even though those sites are trusted sources, one producer described this activity online as
follows, “You have to know what you are looking for when you go on electronically.”
Most farmers had at least one or two e-newsletters they read regularly. They appreciate
the convenience of having the information ready and waiting for them — and they really
appreciated e-newsletters formatted for their smartphone.
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7. Mobile is the device of choice when information needs to be as current as possible. Most of
the mobile usage revolves around markets, weather and interpersonal communications. Our
feedback indicates that mobile devices are seen as tools for making decisions and staying
connected. For example, “Mobile texts I read religiously because it is current and topical.”
There are definite correlations between how quickly producers expect or need information
and the devices used to get it.
The information must come from a trustworthy source, and it must be delivered right when
they need it.
Producers Discuss the Best Ways to Reach Them
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8. If printed materials are associated with open-minded browsing, and desktop and laptop
computers with active searching, then mobile content can’t just be informational, but
must be thought of in terms of how it impacts quick decisions. Key to this is relevancy
and the right amount of content to help producers make informed decisions.
Marketing Take Away: Right Place
Producers are using smartphones to access weather and current market
stats. However, as producers continue to adapt to new technology, they will
begin to receive more information from their smartphones. Therefore, it is
important to maintain a balanced media plan by incorporating smartphone
marketing techniques into your media plan.
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9. The Right Time
Trying to determine when producers are going to move up the tech chain has marketers
looking for answers. Internet penetration among consumers and producers is virtually the
same* If this holds true for smartphones and web-enabled cell phones, half of all producers
.
will have mobile Internet access by the end of 2011.
What we currently see is new technology adoption happening in agriculture right now. The
circumstances bring what we call “tech triggers” — events that cause a leap in technology.
As producers spoke about their experiences, a pattern of these tech triggers emerged.
They can be as commonplace as renewing a cellular contract and getting a new phone,
or upgrading from dial-up on a desktop computer to wi-fi and a laptop.
*Nielsen indicates that among consumers, smartphone adoption may be as high as 49 percent by the end of 2011.
Internetworldstats.com states consumer Internet penetration is at 77.3 percent in 2010. The 2010 NAFB Internet
Research Study reveals 75 percent Internet penetration among farmers.
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10. If you don’t have AT&T right now, you don’t need
Tech Trigger #1: an iPhone yet. We found several producers that
shared an experience similar to this, “I currently
Cellular providers just have a phone for phone and text, but my
have a big impact contract is due to expire. I’m considering a
on mobile technology. smartphone for the combination of the opportunity
to look things up while I’m doing other things and
receive better information.”
As a younger generation steps up within the
Tech Trigger #2: operation, they bring their tech preferences with
them and provide the support needed for the
older generation.
Technology
expectations. One young producer described the support she
offers her father-in-law, “We just got him a new
computer. I’m setting him up. Trying to figure out
all the websites...where all the crop prices are...
whatever I put up on there for him. ”
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11. Producers are investing in more advanced
Tech Trigger #3: technology across the board. Even general
equipment and basic programs have become
more sophisticated, equating to a need for
In-cab technologies. better computers and faster, more reliable
Internet access. One producer’s example of
this was, “My father-in-law just upgraded his
computer and got DSL because of his new GPS
and field mapping system.”
Likewise, experiences outside of the farming
Tech Trigger #4: operation provide exposure to new technologies.
In one instance the son in an operation had
Working off worked for an ag in-cab technology provider.
His return to the operation meant that his brother
the farm.
and father made a very rapid transition to wireless
and mobile technology.
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12. For some, their ag advocacy spurred them to
Tech Trigger #5: become more mobile as a way to fit their volunteer
efforts into an already busy schedule. As
“agvocacy” becomes necessary to preserve a
Ag advocacy. way of life, farmers find they can reach out to
consumers with what they are doing on the farm,
while they are doing it. Smartphones become a
platform for consumer education.
The most frequent tech trigger revolves around
Tech Trigger #6: the speed of information required to run a
successful operation.
As market fluctuations become the norm, checking
Market volatility. them once in the morning and once at night can
mean profit lost. Perpetually making phone calls
or running in to see markets on a computer keeps
producers from other critical tasks.
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13. For one producer, timing is everything: “I think it is becoming more and more important.
In the last five years the markets have changed drastically. They’re so variable. They fluctuate
so much that if you don’t know immediately what the price is, you’ve missed out on a huge
opportunity. If I could have had the information at that moment, and basically I could have
pulled out my phone and pushed the button and made a sale, I would have been way
better off.”
As important as the speed of information is, the context for these fluctuations is important, too.
One producer told us, “Nothing bugs you more than to hear on the radio that corn is up a
dime and they don’t tell you why, and you’re trying to search it and trying figure out what’s
going on and you should be working.”
His ability to make a well-informed decision hinges on knowing why the markets change.
Another producer summed it up well, “Not so much how (I get my information), but when.
Make it short and sweet so I can make decisions and still do my daily work without
being interrupted.”
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14. Producers Remark on Experiences Associated with Technology Upgrades
Producers Comment on Their Need for Timely Information
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15. Marketing Take Away: The Right Time
The cycle for mobile adaptation is short, and the higher the income of the
producer, the faster they are to engage in and utilize the latest advancements
in technology.
Based on current trends and research, we can assume that half of all producers
will have mobile Internet access by the end of 2011. Love it or hate it, the
smartphone is going to become an important source for information and
networking; in order to stay current with producers, marketing experts are
going to have to adapt to this new form of media.
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16. The Right Technology
As leaps in technology propel many producers ahead, some still lag in acceptance. For
some, the desire for mobile information is not worth the frustration of its shortcomings.
As marketers, we need to optimize what we can to accommodate our demographic and
their hardware preferences.
This is not a new phenomenon. As one female producer stated, “A good website makes a
big difference. For people that are developing websites, do it right. If you have lost me on the
first look, I am not coming back.”
Mobile devices can lose an audience even more quickly.
“Some (e-newsletters) aren’t compatible…I like to read the newsletters that are formatted
for the Blackberry.” We must be aware that as users migrate to mobile, there is a loss of
readership for content that is not compatible for mobile devices.
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17. On the hardware side, small buttons frustrate big fingers — little screens mean tiny type for
“fifty-year-old eyes” — and laptops can be seen as too large to be carried conveniently.
We also heard some producers remark how laptop keyboards “fill with dust and their
screens break.”
The shortcomings of current technologies diminish as more hardware options enter the
marketplace. They may even help the adoption of tablet technologies like iPad, PlayBook
and Android tablet.
Producers Comment on the Shortcomings of Current Technology
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18. When shown an iPad, almost everyone knew what he or she was looking at. Most
acknowledged it as an improvement over small-screen mobile devices.
“It’s the seeing it, if I have to grab my eyeglasses it’s not going to do me any good…
if it had bigger print, I could probably take the Internet on the road.”
We also heard several comments along this line:
“Unfortunately farmers aren’t getting any younger, and that larger screen is a positive.”
The few that were already using technologies like wi-fi with an iTouch loved the thought of a
larger screen for things they were already doing.
Marketers and producers alike hope that tablet technologies will address some of these
issues. But for widespread adoption, these technologies need to be durable, affordable
and have reliable Internet access.
Marketing Take Away: The Right Technology
What marketers need to take away from this is that digital properties are
becoming the new face of business, and websites and e-newsletters must be
mobile enabled to maintain the attention of the producers. Also, the number of
producers using mobile devices will continue to increase with advancements
such as larger screens and easier to use buttons.
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19. Right for the Future
We asked producers how they think they will be getting their agricultural news and
information in the future. Most indicated they expect the mobile platform to play a larger
role in their lives.
We heard this from a few producers: “I would really rather just have all of this information on
my Blackberry.”
The father of an operation described his sons’ use of mobile: “Their phones are their
right-hand man.”
Even though everyone we spoke to believes the use of electronic mediums will grow, most
also believe that traditional mediums will always have their place.
One producer expressed this desire: “I would like to see our industry focus on paperless —
more of using e-mail and Internet connections.”
Another opinion countered: “I’m not going to sit down and read a whole story on
my Blackberry.”
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20. There is an expectation that cutting-edge technology will improve operational efficiencies,
relieve some stress and change the way producers interact with agribusinesses.
One producer who also works at a cooperative said, “Just knowing that the younger farmers
coming on board are going to be texting — we need to give them the information they need
however they want it.”
Surprisingly, many producers were comfortable with paying a nominal fee for information that
was truly helpful in running their operations, which is really an indication of how they demand
control of their mobile privacy.
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21. Tread lightly when reaching farmers on mobile devices.
As far as cell phones are concerned, the smaller the screen, the more they protect
that number.
Although marketers will try to reach producers through their mobile devices, there are still
privacy boundaries that should not be crossed. As one producer stated, “I don’t want anyone
on my phone unless it’s important.” The information sent out must also be relevant to the
producer, and it must come from a trusted source.
Producers on Mobile and Online Privacy
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22. As the world of possibilities opens up for right-sized mobile devices, producers envision
tools that can accommodate their work-styles and grow their bottom line.
When we asked them to dream about what a tool like the iPad could do for them, their
answers weren’t just a bigger screen for weather and markets.
New ideas revolved around tracking various data with the added bonus of not being tethered
to a cab. Without exception all ideas were tools for the operation.
The largest operation we interviewed already had a few iPads around the office, “We love
these things…all this data at your fingertips.”
Producers Talk About iPads
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23. Marketing Take Away: Right for the Future
As producers look toward the future, more and more of them expect to receive
information digitally; therefore, the use of mobile devices is going to grow. The
agribusiness community will need to be creative with how we provide relevant
information on a mobile platform — as well as how we attach those marketing
messages to relevant information producers want to receive.
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24. Right for Conclusions
Stereotyping producers based on acreage size, age, gender and experiences outside of the
farming operation can translate to missed marketing communication opportunities.
The adoption of mobile devices accelerates as producers adopt in-cab technologies — and
tech triggers create faster-than-expected “leapfrogging” along the technology spectrum.
Producers already use many digital technologies and continue to watch what’s coming next
very closely. They expect information to become even more mobile in the near future — and
seem ready to embrace it like any other useful tool.
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25. Producers Talk About How They See Information Coming to Them in the Future
Marketing Take Away: The Right Conclusions
As we look for the best ways to attach our clients’ brands to the information
producers consume, we must include the mobile world.
However, we must still support the traditional channels producers continue to
use and trust, such as print, radio and TV — and work to bridge the gap with
improved digital mediums.
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26. A special thanks from Paulsen to all the producers who took time to speak with us
about their operations and how they look to the future.
We welcome you to continue referencing this study at
www.paulsenmarketing.com/agri-thoughts.
the ag and rural lifestyle specialists
www.paulsenmarketing.com • 605.336.1745
3510 S. First Ave. Circle • Sioux Falls, SD 57105
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