2. Agriculture Technology and The Future of Farming Robert Tse USDA Rural Development Embassy Suites Hotel Monterey, CA January 29, 2015 It’s Not Your Grandfather’s Farm, Anymore

3. It’s Not Your Grandfather’s Farm, … Anymore!

4. Global Demographic Drivers Global Ag Challenges Global Ag Opportunities

5. 4 Billion 1975 3 Billion 1960 1 Billion 1804 2 Billion 1927 7 Billion 2050 9 Billion October 31, 2011 World Population Reaches 7 Billion October 31, 2011 …Projected to Reach 9.3 Billion in 2050

6. World Becomes More Urban May 23, 2007 World Became Majority Urban May 23, 2007 Urban Percentage of World Population

7. Rise of the Global Middle Class By 2030, 50% of world population will be middle income ($6 – 30,000 PPP) Percent Source: Goldman Sachs Economic Research

8. Global Demand Drivers to 2050 Global Population Increase Rapid Urbanization Growing Middle Class Climate Change Impact Rising Food Prices Rising Global Trade of Food Rising Demand for Protein, Fruits and Vegetables Agriculture Adapts to Climate Change

9. International Tourism (2013) Arrivals: Reach 1.09 Billion Persons Receipts: $1.159 Trillion 2013 Forecast: 1.8 Billion Persons by 2030 US International Visitors (2013)  Arrivals 69.8 Million Persons  Receipts: $139.6 Billion  Forecast to Rise to 77 Million Persons by 2016* CA International Visitors – 15.6 Million Persons (2013) All CA Tourism $110 Billion Total Direct Spending Monterey County (2012) $2.3 Billion in Direct Spending $147 Million in Direct Tax Receipts $704 Million in Food & Beverage Services UNWTO Global Impact: Tourism

10. Monterey is California’s 4 th Most Productive County RankCounty $ Billion 1Fresno $6.59 2Kern $6.21 3Tulare $6.21 4Monterey $4.14 5Merced $3.28 Top Five Counties $26.43 Rest of State $28.97 California Gross State Total $55.39 Monterey Accounts for 8% of California Agricultural Production Monterey CA Ag Commissioner’s Report 2012

11. Monterey County Farm Gate: $4.4 Billion Vegetables and Fruits Dominate Categories Monterey County Ag Report 2013 Leafy Greens $1.6 Billion 36% FARM GATE $Million

12. Monterey County Farm Gate: $4.4 Billion Leafy Greens and Strawberries Dominate Monterey County Ag Report 2013 Leafy Greens $1.6 Billion 36% FARM GATE $1 Million

13. Monterey County Ag Production Overall Decade Growth to $4.4 Billion AG.CO.MONTEREY.CA.US * Revised numbers used for 2004 and 2012 crop

14. #4 Nursery Products $2.8 Billion $ Million Top 5 Counties 8% Gross Value 2012 USDA NASS CA Monterey

15. Monterey is Largest Producer of Two of Top Ten California Crops #6 Strawberries: $2.4 Billion#7 Lettuce: $2 Billion Monterey $ Million Monterey

16. #7 Lettuce $2.0 Billion 2012 $ Million Top 5 Counties Gross Value 2012 USDA NASS CA Monterey

17. #6 Strawberries $2.4 Billion 2012 $ Million Top 5 Counties Gross Value 2010 USDA NASS CA Monterey

18. California Ag Exports Pass $18 Billion Continue Growth and Nearly Triple California Agricultural Statistics Review 2013-2014 Global Recession $ Billion

19. Exports Imports Records $152.5 $109.2 FY 2014 sets record exports, imports, and surplus Declining bulk export prices & greater export competition lower FY 2015 forecast $143.5 F $116 F U.S. Agricultural Trade Office of Global Analysis/FAS

20. Revised FY 2015 Forecast: $37.0 Billion Unchanged Revised FY 2015 Forecast: $37.0 Billion Unchanged Export Outlook for Horticulture Products 2015 Key Developments Long-term growth trend continues Strong exports to Canada, Europe and China Tree nut exports higher due to strong demand in China and Europe for almonds, pistachios and walnuts Wild Cards China’s continued growth, particularly for tree nuts, fresh fruit and wine Office of Global Analysis/FAS

21. China Grows to #1 U.S. Agricultural Export Market Over Quarter Century 1985 U.S. Agricultural Exports, USDA, FAS Robert Tse USDA CA Rural Development $ Million

22. Global Agriculture Challenges Limited availability of more arable land for production without high environmental costs Double Productivity on farm land already in production Adapt to Global Climate Change Meet Local Disruptive Events

24. Invasive Species

27. DROUGHT

28. 2014 Drought Impact Greatest absolute reduction in water available … for California agriculture ever seen … State wide Impact: –Crop Revenue Loss:$810 Million –Additional Pumping Cost$454 Million –Livestock / Dairy Revenue Loss$203 Million –TOTAL DIRECT LOSSES$1.5 BILLION TOTAL ECONOMIC COST:$2.2 BILLION TOTAL JOB LOSSES:17,000 Economic Analysis of the 2014 Drought for California Agriculture UC Davis Center for Watershed Sciences July 15, 2014

30. Impact on Farming Produce More with Less Labor New plant hybrids, and animal breeds New agricultural production practices Greater efficiency in agricultural utilization of water Produce More with Less Labor New plant hybrids, and animal breeds New agricultural production practices Greater efficiency in agricultural utilization of water

31. New Ag Technology Ag Tech Pro- duction Water Environ- ment Energy Food Safety LABOR SAVING REGULATORY

32. Disruptive Technology

33. New Ag Technology Ag Tech Pro- duction Water Environ- ment Energy Food Safety

34. Ag Drones Your Future 21 st Century Agriculture Technology Precision Input Application Food Safety

35. New Data Driven Technology Production Side of Agriculture

36. Technology is Here! http://www.youtube.com/watch?v=q8dBOG AfUIk Future of AG: Precision Ag UAV https://www.youtube.com/watch?v=W1UY XNa6AcE Auto Steer No operator in the cab. Fully automatic tractor and planter. https://www.youtube.com/watch?v=nXO6b1y pZMc

37. Technology is Here! QuadcopterQuadcopter UAV https://www.youtube.com/watch?v=_97Yd8 BotFw://www.youtube.com/watch?v=_97Yd8 BotFw Future of AG: Precision Ag UAV https://www.youtube.com/watch?v=W1UY XNa6AcE Future of AG: Precision Ag UAV https://www.youtube.com/watch?v=W1UYXN a6AcE

39. DISRUPTIVE PERSON Steve Jobs

40. RURAL WIRELESS BROADBAND NEW AGRICULTURE TECHNOLOGY PRODUCTIONWATERENERGY ENVIRONMENTFOOD SAFETY RURAL TELE-HEALTH / TELE-MEDICINE Distance LearningPublic Libraries TRANSPORTATION & LOGISTICS PUBLIC SAFETY DIRECT MARKET ACCESS TO GLOBAL MARKETS Rural Agro Tourism & Recreation RURAL WIRELESS BROADBAND

41. Importance of Broadband “Ag Tech will locate where the high capacity broadband exists. Just as railroads brought economic growth to communities that were connected to the rail lines in the 19 th century, and water ports provided the same connectivity to cities in the centuries before, broad band offers the same access to prosperity in the 21 st century.” Robert Tse, USDA, CA, RD

42. For More Information: http://www.apps-for-ag.com February 20 – 22, 2015 West Hills Coalinga Community College Hackathon comes to the Farm... Come code and have fun on the Farm of the Future in Coalinga.