The agricultural sector today faces a multitude of challenges, including the impacts of climate change, soil erosion, biodiversity loss, and waste. Farmers are also grappling with shifting consumer preferences and evolving regulatory expectations. While the need for reform is clear, achieving it is a complex task. Farmers must navigate issues such as economic instability, social inequalities, geopolitical tensions, and fierce competition for natural resources, all while striving to maintain their livelihoods.
The global population is expected to exceed 10 billion by 2060, which will result in significant changes in dietary preferences. These shifts will likely lead to an increased demand for meat, dairy, fruits, and vegetables, pushing the need for greater food production. The FAO estimates that by 2050, global agriculture must produce nearly 50% more food than in 2012, with certain regions, such as South Asia and sub-Saharan Africa, needing to double their agricultural output. However, the farming model adopted in wealthier countries in the mid-20th century is reaching its limits, with stagnating yields for key crops like wheat, maize, and barley. Further use of fertilizers and pesticides may no longer provide the solutions needed.
Climate change also poses a significant threat to agricultural production, with rising temperatures, shifting precipitation patterns, and more extreme weather events all affecting yields. While the world is not yet facing an imminent food crisis, urgent action is needed to prevent such a scenario in the future.
The FAO has introduced an ambitious strategic framework called the ‘Four Betters’ better production, better nutrition, better environment, and better life which emphasizes the importance of technology, data, and innovation. Various technological solutions, including biotech, genomics, green chemistry, robotics, digital marketplaces, and blockchain traceability systems, offer promising avenues for agricultural progress. One such technology that has gained considerable attention is satellite imagery. In 2020, the FAO launched an open-access platform under its Hand-in-Hand initiative, providing a wealth of geospatial data and resources for agricultural decision-making.
Newspace technology, in particular, offers exciting possibilities for advancing agriculture. Satellites can be used for precision farming and irrigation, providing valuable insights into crop health and environmental conditions. These technologies can help detect diseases, monitor pests, identify nutrient deficiencies, and control weed growth. For example, up to 40% of crops are lost each year due to pests and diseases, costing the global economy over $220 billion. With satellite-enabled precision farming, variable-rate spraying techniques can help reduce the use of chemicals by 10 to 30%, boosting profit margins for farmers.
Satellite technology also plays a key role in disaster prevention and management. Space-based data can predict and monitor floods, droughts, storms, and wildfires, which have caused more than $3.8 trillion in crop and livestock losses over the past three decades. Furthermore, advanced satellite spectrometers can identify areas of high greenhouse gas emissions, enabling targeted mitigation efforts.
In addition, satellites help ensure that farms comply with regulatory requirements. Spaceborne multispectral and hyperspectral sensors are capable of detecting subtle differences in the electromagnetic spectrum, providing highly detailed information on agricultural conditions. This sector is rapidly expanding, and as space access becomes more democratized, more companies are entering the market with ambitious roadmaps.
While these technologies show great potential, they come with significant costs, which many farmers cannot afford. Prices for hyperspectral images range from 2€/km² for low-quality data to 35€/km² for high-quality imagery, and additional costs arise for processing and urgent requests. Though raw geospatial data may become more accessible, advanced services with added value will remain out of reach for most farmers.
In light of these financial challenges, two main funding sources emerge: large agrifood companies, which consume substantial amounts of satellite imagery, and government agencies, which often engage private technology providers. However, the commercial opportunity for Earth observation extends beyond agriculture, with industries like defense and mining offering higher returns for investors. As such, the private sector alone may not be sufficient to meet the sector’s needs.
To address the enormity of the challenge, public funding through public-private partnerships (PPP) will be essential. However, establishing such partnerships requires sustained political effort, particularly in today’s uncertain geopolitical climate.
