The benefits of agricultural technology for farms
Farming has evolved from traditional methods to cutting-edge, data-driven tools that make a real difference in everyday operations. Agricultural technology—or agtech—not only transforms how farms operate but also brings new opportunities and challenges to address when it comes to protecting them.
As trusted partners to farmers, insurance agents play a key role in helping them navigate this landscape. By helping farmers assess risks and embrace innovative tools, you can ensure they thrive in an ever-changing industry.
What is agricultural technology?
Agricultural technology encompasses tools and innovations that use modern science and data to improve farming practices. From precision agriculture equipment and automated machinery to IoT devices and AI-powered analytics, these advancements are designed to help make farming smarter, faster and more efficient.
Benefits of using technology in farming
Technology has transformed modern farming, helping farmers navigate today’s complex agricultural landscape. From smarter resource management to boosting yields, advanced tools and systems create more efficient ways to work while also reducing risks. At its core, this progress is about supporting farmers with practical solutions.
Precise tools lead to productivity and efficiency
Agtech tools like GPS-enabled tractors and automated irrigation systems empower farmers to work with precision. By targeting planting, fertilization and watering, these technologies help conserve resources and increase productivity.
Some tools also help manage risk. For example, automated water management systems can optimize irrigation during droughts, reducing wasted water and preventing crop loss.
More growth in output creates more profit
With advanced monitoring and data analysis, farmers can make informed decisions to optimize planting, fertilizing and harvesting. This leads to better crop yields and improved financial stability.
For agents, this opens the door to meaningful collaboration. By understanding your clients’ goals and challenges, you can anticipate changes in coverage needs and make recommendations to better protect them as they grow and scale operations.
Increased functionality reduces manual labor
Labor shortages are a significant challenge for the agriculture industry, but agtech innovations like robotics and self-driving machinery are helping farms stay productive. Drones for planting and automated harvesters allow farmers to manage large fields with fewer workers.
Automation can also help reduce workplace risks, like injuries, giving you an opportunity to highlight improved liability coverage options tailored to these realities.
Better for the land
Agtech is transforming how farmers manage their land, helping them become better stewards of their resources. With the use of smart sensors and soil monitors, farmers can optimize their use of water, fertilizers and pesticides. This not only conserves valuable resources but also boosts the potential for healthier yields.
Reduced risk enhances insurance accessibility
While agtech innovations deliver clear operational benefits, they can also play a critical role in reducing risk which is increasingly essential in today’s challenging insurance market. Technologies designed to prevent fires, manage fleets and keep drivers safe, do more than streamline farming processes; they help reduce incidents that could lead to claims. Nationwide recognizes the value of these technologies in reducing risk for farmers, which is why we’ve negotiated discounts to make them more accessible for customers.
How agricultural technology has changed farms
Today’s farms are more connected and data-driven than ever before. IoT devices and machine learning tools allow farmers to monitor everything from soil moisture to fleet performance in real time. By leveraging data and analytics, they can optimize production, reduce waste and protect their bottom line.
For example. Razor Tracking provides 24/7 asset tracking. One standout feature is geofencing, which creates virtual boundaries indicating where equipment should operate. If equipment moves outside the boundaries, it could signal an operator error or potential theft. Instant alerts let farmers act quickly—whether it’s clarifying with the operator or contacting authorities. This added layer of protection keeps their assets secure in ways that were once unimaginable.
Is the implementation and use of technology for farms worth the investment?
Agricultural technology offers benefits, but many farmers feel unsure about making significant investments without a clear return. Though adoption rates for many agtech solutions in the U.S. are strong, returns are often dependent on farm size and scalability.¹
Understanding that returns on agricultural technology vary, agents can bridge the gap by offering innovative tools alongside preferred pricing. For Nationwide customers, discounts on risk-focused agtech solutions can make these technologies more affordable, empowering farmers to invest in their future with greater confidence.
How insurance plays a role in this emerging agricultural landscape?
New technology offers opportunities to reduce risks, but it can also introduce new challenges. Nationwide’s agtech partners provide solutions aimed at minimizing electrical, fire and driving risks. However, adopting new technology can also increase the risk of cyberattacks and – like any other type equipment on the farm – can break down, disrupting operations. Farmers must consider the benefits and risks as they embrace innovation.
When customizing coverage for farm customers, remember that agricultural equipment is a major investment that needs proper protection. Offer tailored options like property coverage for agtech equipment, equipment breakdown and cyber liability insurance. Pairing these with proactive risk management solutions from Nationwide’s agtech partners can help minimize losses and keep farms running smoothly.