Smallholder farmers and their families make up to almost 75 percent of the world’s poor population. Struggling with access to health care, clean drinking water and education are just some of the daily challenges these people face. A digital technology company called Ricult is striving to improve the productivity and profitability of smallholder farmers in developing countries by solving agricultural problems with technology-based solutions. Ricult has already helped 10,000 farmers across Thailand and Pakistan and continues to prove that technology transforms agriculture in developing countries every day.
Technology Transforms Agriculture
Ricult requires farmers to enter in their geo-coordinates through their app. It then uses geospatial data streams that monitor the environment through weather, satellite, and soil analytics. This provides the farmer with valuable data such as soil conditions to ensure optimal growth.
Some of the basic problems that poor farmers face include inadequate access to weather data, no pest attack forecast, storage issues, low-profit margins and credit access. According to Usman Javaid, the CEO of Ricult, the biggest reason why microfinance institutions haven’t been able to alleviate poverty in developing markets is that they only focus on one part of the problem by providing credit.
The Work of Government of Pakistan
Providing credit is the main way the Government of Pakistan seeks to transform agriculture. The government has adopted a long-term development strategy that aims to remodel the country into an upper middle-income country by 2025. The government developed the Five Year Plan that aims to ensure national food security and reduce rural poverty by increasing productivity, competitiveness and environmental safety. Through this program, the government provides $3 billion in subsidies, grants and loans. They are also providing credit to farmers who own up to 12.5 acres of land and are facing massive irrigation costs.
Ricult as Example how Technology Transforms Agriculture
Javaid says that one of the biggest problems in developing countries is that when farmers receive cash, they will use it for anything and everything but not for agriculture. The country gives an in-kind loan of inputs delivered to the doorstep of the farmers and accompanies this with insightful and actionable agronomic data from optimal sowing times to yield forecasts. This is just one of the examples of how exactly technology transforms agriculture.
Another great component about Ricult is that it allows farmers to get paid within 48 hours. Farmers generally use a middleman who delivers produce from the farm to the markets. Middlemen often stagger payments and cost additional input. Ricult offers five times lower interest rates than middlemen. Ricult has received a $100,000 grant from the Gates Foundation and continues to transform agriculture in developing countries by making a positive impact in the lives of farmers.
A Pakistani farmer named Faraz Shah has said that the current system of informal credit was not working for the farmers. They were very upset, but Ricult has greatly improved their lives by offering credit at much cheaper prices and improving them with high-quality products. Thailand farmer BubpaWorawat said that Ricult dashboard with its color coding system lets him know in which part of his land growth is stunted so he can take immediate action unlike before when he could not personally scout the areas and he would not know about the problem until it was too late.
Ricult is only one example of how does technology transforms agriculture. Since agriculture is a prevalent way of life in less developed countries, in which most of the poor people of the world live, it is very important to develop the new ways and to use technology to help these people to be more effective in their line of work. By doing so, technology can help poor people get out of the cycle of poverty.
– Grace Klein