V.DIG.0025 - AgTech Impact Assessments

Summary

MLA conducted an ag-tech impact assessment over four Digital Agriculture MDC investments that were in flight and close to completion.

In conjunction with the impact assessments, this project also explored knowledge absorption and timelines to adoption, any on-farm practice changes to be considered and alignment to the MLA MER framework. Through case study development there were considerations around ESG metrics within the projects then the work was tested against MLA Ag-tech Cost Benefit Estimator tool.

Initial outputs from these project have demonstrated positive returns for the assessments that were able to be completed under selected assumptions, underlining the value of the investments. Equally two project assessments completed within this work are now evolving beyond their initial scope to explore synergies with emissions reporting and links to sustainable finance, both of which will have significant benefits to industry.

Objectives

In conjunction with the impact assessments, the further objective of this work was to explore knowledge absorption and timelines to adoption, any on farm practice changes to be considered and alignment to the MLA MER framework (to test 5% productivity gains). The opportunity was also taken with the case study development to explore considerations around ESG metrics within the projects. Finally, the work as far as practical, was tested against the MLA Agtech Cost Benefit Estimator tool to (a) run standalone modeling assumptions to test outputs and (b) run a live test with one of the project participants to validate key findings and next steps with this tool.

Key findings

The primary impact assessment results of this work were a little hindered through inability to secure baseline data with the projects in flight or full productivity benefits still to be assessed. Whilst not able to be fully completed, the qualitative assessments were insightful, especially the ESG considerations and the extended time frame allowed deeper dialogue with the project participants in this area.

Benefits to industry

Initial outputs from this project have demonstrated positive returns for the assessment that was able to be completed underlining the value of the investments. Equally two project assessments completed within this work are now evolving beyond their initial scope to explore synergies with emissions reporting and links to sustainable finance, both of which will have significant benefits to industry.

MLA action

The learnings from this project will help inform future MLA digital ag investments and help further develop the ag-tech cost benefit estimator.

Future research

1. Revisit these assessments within 12 months to fully assess productivity gains.
2. Test this methodology via a further assessment in 2023 to build the framework for future assessments.
3. Continue to build and evolve the MLA Agtech cost benefit estimator.