Transitioning to Sustainable Agriculture in the Fourth Industrial Revolution

Agriculture accounts for less than 5 percent of the global economy but is responsible for more than 25 percent of employment. The sector faces a triple challenge of feeding the growing population, providing a livelihood for farmers, and protecting the environment. With sustainable practices, technology-driven farming will drive productivity growth.

A growing population demands more food, so productivity is crucial. There is, however, a significant lack of productivity growth in agriculture, as measured by the 2021 Global Agricultural Productivity Report. Total factor productivity (TFP) is the agricultural output from land, labor, capital, and materials.

Financial contributions from the sector to the global economy have steadily decreased over the past five decades—from 10 percent levels in the 1960s to below 5 percent in 2020. Agriculture remains a core component, and a continuing priority as food remains a basic need for life. The Russia-Ukraine war, COVID-19, and environmental changes have disrupted food prices and global supply. Food inflation will worsen if no strong measures are taken, and food availability will continue to deteriorate.

Productivity cannot be increased without affecting livelihoods and the environment. Technology can help balance productivity, employment, and sustainability. They provide affordable, innovative solutions that improve productivity while mitigating environmental and economic risks.

Agriculture has not yet identified sustainable and climate-resilient technologies at scale, despite technology adoption by several industries. Considering the fragmented nature of the agricultural sector, more than 25 percent of the global population will need to adopt green farming practices. In agriculture, technological intervention is carried out physically by automating tasks with machinery and digitally by providing information flow that facilitates timely and key decisions. A farmer can improve efficiency and yield by taking action based on soil parameters, weather patterns, and commodity prices.

The fourth wave of the industrial revolution (Industry 4.0) proposes an ideal state of fully autonomous and optimized manufacturing in factories. A transition from manual to automatic to semiautonomous to, eventually, fully autonomous farming can be achieved through the effective integration of physical and digital technologies. Food origin transparency and traceability are now requirements for customers. Agri-food chain traceability using digital technologies is one of the goals of Industry 4.0, beyond efficiency.

An age of skill-based innovation

Sustainable Development Goal 2 (SDG 2) aims to eliminate hunger by 2030, but the world is still far from reaching that goal. U.N. estimates show that 830 million people will suffer from hunger by 2030, amplified by disruptions caused by the pandemic, political upheaval, and even military conflicts.

Globally, agriculture contributes to more than 10 percent of greenhouse gas emissions. A growing share of this market could be attributed to the need for mechanization and green farming practices to fill the gap in agricultural output. Using technologies will be essential in measuring emissions before and after automation. Technological intervention can increase emissions, but it must be measured and controlled. Green farming practices will result in a loss of 34 million jobs but will create 61 million new jobs, according to McKinsey. Farmers need government assistance for automation and skill development.

Industry 4.0 for farms

Governments and global bodies are increasingly promoting technology-driven farming. The agriculture sector (especially Big Ag) is also looking for more technology as labor costs rise and skilled workers are in short supply. The plummeting costs of connected devices and the increased accessibility of automation technologies have further contributed to the financial feasibility of more technology in the sector.

Industry 4.0 tenets—visibility, transparency, predictability, and autonomy—apply broadly to Agriculture 4.0.

Agriculture is undergoing a similar convergence between the digital and physical worlds to Industrial 4.0, referred to as IT-OT integration. The IT world deals with enterprise-level data, while the OT world deals with shop floor data. Agricultural field data should also be integrated with external parameters (e.g., weather patterns, commodity prices, and equipment health) in farming. Agricultural 4.0 integrates science and technology by reengineering the supply and demand chains.

Responsible innovation

Farm operations can become increasingly smart and autonomous due to robotics, artificial intelligence, and 5G. Farmers can make cost-saving and efficiency-improving decisions using these technologies.

Digitization in farming can be made affordable using open-source software and third-party platforms. The end-user experience should not be compromised by combining and analyzing machine, operational, and process data across multiple sources and technology layers.

Swarm intelligence will play an important role in promoting autonomous farming. The efficient management of the supply chain will contribute to the reduction of food waste and the promotion of responsible food consumption.

Agriculture 4.0 requires responsible innovation regardless of technology's influence to drive productivity and ensure economic, environmental, and social sustainability.