How Technological Advances are Impacting Risks on the Farm

1. How Technological Advances are Impacting Risks on the Farm Presented By: Cheryl L. Koch CPCU, CIC, ARM, AAI, AAM, AIM, AIS, ARP, API, AINS, ACSR, AFIS Agency Management Resource Group

2. Along with New Technology Come New Risks We will look at: • Drones • Precision Farming • Autonomous Vehicles and Robotics • Advanced Mechanization

3. Hands Free Barley https://www.youtube.com/watch?v=d81_qzxisgI From planting to harvest – and everything in between – no human set foot on this 2-1/2 acre plot

4. THE DRONES ARE COMING…And coverage is up in the air!

5. WHAT IS A DRONE? • “An aircraft operated without the possibility of direct human intervention from within or on the aircraft.” FAA Definition • By any other name • Unmanned aerial vehicle (UAV) • Unmanned aircraft system (UAS) • Unmanned vehicle system (UVS) • Unmanned • Remotely operated • Robotic

7. FAA REGULATIONS As of January 2018, FAA data indicates there are more than 1,000,000 REGISTERED drones and CERTIFIED operators – 878,000 hobbyists and 122,000 businesses FEDERAL DRONE REGISTRY (www.federaldroneregistration.com) • Operational limitations • More than .55 lbs. and less than 55 lbs. • Maximum altitude of 400 feet • VLOS • Not over persons, in structures or inside vehicles • Daylight operations only • Remote Pilot in Command Certification and Responsibilities • Aircraft Requirements • Model Aircraft Exemption This Photo by Unknown Author is licensed under CC BY-NC-ND

8. DRONE COSTS VARY • https://youtu.be/pHHGe9d8368 • Fixed wing $10K to $25K • Multi-rotor $2K to $15K

9. COMMON USES IN AGRICULTURE • Monitor land and crops • Soil conditions and irrigation issues • Crop health and yield • Monitor livestock • Chemical application (pesticides, herbicides, fertilizer, etc.) • Monitor buildings, fencing, equipment and other farm property

10. LEGAL AND REGULATORY ISSUES • Have the ability to house high-powered cameras, infrared sensors, facial recognition technology and license plate readers • Privacy is a huge concern • Safety is important, but airworthiness is not required • Insurance likely will not be mandatory – at least for now

11. NDVI(Normalized Difference Vegetation Index)

12. WHAT WE KNOW – It’s Just a Tool • NDVI has been used since the early 1980s • The main value is variability – quick recognition=quicker decisions • An agronomist in the field still has value – “ground truthing” • Aerial imagery is one tool – but not the be all and end all

13. PROS AND CONS • Analysis • Monitoring • Spraying • Irrigation • Health assessment • Ease of deployment • Flight time and flight range • Initial cost of purchase • Federal laws and regulations • Interference with airspace • Connectivity • Weather dependence • Knowledge and skill

14. LEGAL AND REGULATORY ISSUES • Drone Aircraft Privacy and Transparency Act (2013) • Trespass • Nuisance • Invasion of privacy / harassment • Data collection / inadvertent eavesdropping

15. LEGAL AND REGULATORY ISSUES • Commercial operation of UAS requires an exemption based on • How and where used • What type of UAS • Pilot “certification” • Exterior lighting • Size and exterior markings • Onboard operator manuals (what?) • Other rules

16. LOSS EXPOSURES • Damage to the UAS from collision with ground or other aircraft • Injury to passengers of manned aircraft due to interference by UAS • Injury to people or property on the ground caused by UAS • Damage to property on which “operations” are being performed

17. INSURING UAS • CGL • Coverage A (BI and PD) • “Aircraft” exclusion may OR may not apply • Coverage B (PI and AI) • No “aircraft” exclusion • New endorsements • CG 21 09 Exclusion Coverage A & B • CG 21 10 Exclusion Coverage A • CG 21 11 Exclusion Coverage B • CG 24 50 Limited Coverage for Designated Unmanned Aircraft • CG 24 51 Limited Coverage for Designated Unmanned Aircraft (Coverage A only) • CG 24 52 Limited Coverage for Designated Unmanned Aircraft (Coverage B only)

18. INSURING UAS • Commercial property (“business personal property”) • Aviation hull coverage • Aviation liability coverage • Special UAS policy • Physical damage, legal liability, products liability • About 25 insurers currently offering

19. INSURANCE CHALLENGES • Aircraft / Aviation • Personal Injury • Data Breach / Cyber • Property Insurance • Workers Compensation • Equipment Breakdown • Directors and Officers / Management Liability • War, Terrorism, Hijacking

20. PRECISION FARMING (Some of it uses drones!)

21. What is Precision Farming? • A farm management concept based on observing, measuring and responding to inter- and intra-field variability in crops • Can take large fields (or a number of large fields) and manage them as though there were a group of smaller fields • AKA: Satellite Farming or Site Specific Crop Management (SSCM)

22. PRECISION AG TECHNOLOGIES • GPS Guidance and AutoSteer • Section Control on Sprayers • Row Control on Planters/Seeders • Yield Monitoring • Remote Sensing • In-field Sensing • LiDAR (Light Detection and Ranging) • Variable Rate Applications • Telematics • Robotics • Data Management

23. HOW IT HELPS • Allows the farmer to subdivide a large field into smaller management zones • Using smaller zones reduces waste while increasing production • Less application of fertilizers and other nutrients • Less (and more focused) application of pesticides, herbicides, etc. • More dense plantings – better utilization of available crop land • Better water application and management of available irrigation

24. HOW AND WHY IT HAS GROWN • Been around for 20+ years • Enabled by: • Crop yield monitors on GPS-equipped combines • Variable rate technology (VRT) such as seeders and sprayers • An array of real-time vehicle mountable sensors that measure everything from chlorophyll levels to plant water status • Multi- and hyperspectral aerial and satellite images from which products such as NDVI maps can be produced

25. HOW AND WHY IT HAS GROWN

26. WHY USE PRECISION AG? • Reduce stress – make managing a farm’s output easier. Reduces potential for human error. Higher degree of knowledge of what’s going on in the field. • Assist in protecting the environment – better application of products, less waste, higher efficiency • Maximize profits – less waste, less labor, higher profit per acre • Better ability to meet increasing demands and shrinking agricultural footprint The world population has DOUBLED in the last 47 years!

27. AN EXAMPLE • Automatic Section Control (ASC) for Ag Sprayers • Eliminates overlap when applied in the field • Can turn sprayer nozzles ON and OFF in areas that have been previously sprayed, or at the ends of rows and other areas marked for non-application • Comes with currently manufactured equipment or as an after-market application

28. AUTONOMOUS, ROBOTICS AND MECHANIZATION

29. AUTONOMOUS VEHICLES, ROBOTICS AND MECHANIZATION - ADVANTAGES • Speed of work • Can work in any kind of condition • Temperature doesn’t bother the Bot • Doesn’t get bored easily • Work is accurate • Don’t require breaks • Costs are coming down

30. DISADVANTAGES • Technology not fully evolved • Costs too high, but coming down • Sensors will need to be improved • Reliability will need to be proven • Human presence still required

31. LABOR COSTS AND AVAILABILITY • According to USDA: • Hired farmworkers make up less than 1 percent of all US wage and salary workers, but play an essential role in agriculture • Wages, salaries and contract labor expenses represent roughly 17% of total variable farm costs and as much as 40% of costs in labor-intensive crops such as fruit, vegetable and nursery products https://youtu.be/m6KqYBARm38

38. Survey Says… • 44% use field mapping • 54% use yield monitor data • 40% use variable rate fertilization • 50% use GPS guidance • 50% use grid soil sampling • 23% use variable rate planting • 44% conduct field experiments • 39% use to address nitrogen

39. Autonomous vineyard tractor project to gather winegrowers’ requirements New Holland Agriculture will partner with E. & J. Gallo Winery in a pilot project testing its NHDrive autonomous technology applied to T4.110F vineyard tractors. This collaborative pilot program is focused on gathering agronomic and operator feedback on the use of this technology in everyday vineyard activities, with the objective of delivering autonomous solutions that are driven by the real-world requirements of winegrowers. Autonomous vineyard tractor project to gather winegrowers’ requirements New Holland Agriculture will partner with E. & J. Gallo Winery in a pilot project testing its NHDrive autonomous technology applied to T4.110F vineyard tractors. This collaborative pilot program is focused on gathering agronomic and operator feedback on the use of this technology in everyday vineyard activities, with the objective of delivering autonomous solutions that are driven by the real-world requirements of winegrowers. February 19, 2018

40. Case IH pilot driverless tractors with Campbell Soup Company, Bolthouse Farms https://youtu.be/E08-t_0JN8o

41. http://www.wsj.com/video/agrobot-automates-the-work-of-berry-harvesting/D07A91E8-C453-4652-8ECE-2229FB862F6E.htmlhttp://www.wsj.com/video/agrobot-automates-the-work-of-berry-harvesting/D07A91E8-C453-4652-8ECE-2229FB862F6E.html

42. So, are your customers using these new technologies? You bet they are!