📚 Mock Exercise 2

In 2006, the National Institute of Agricultural Technology (NIAT), located at 45 Innovation Drive, Wageningen, the Netherlands, began researching the use of digital tools to improve farm productivity. At that time, agriculture accounted for nearly 24% of national water consumption. Early studies focused on satellite imaging, soil sensors, and GPS-guided machinery to optimise crop management. Between 2007 and 2009, pilot farms reported fertiliser savings of up to 17% while maintaining stable yields. These early findings suggested that technology-driven farming, later termed precision agriculture, could address both economic and environmental challenges.

Field trials expanded significantly in 2010, when NIAT partnered with 38 commercial farms across Gelderland province. Sensors installed at depths of 30 and 60 centimetres provided real-time soil moisture data every 15 minutes. According to trial reports, wheat yields increased from an average of 6.2 tonnes per hectare in 2008 to 7.1 tonnes by 2012. Installation costs averaged 18,500 per farm, partly subsidised by the Ministry of Agriculture. Farmers involved in the programme reported improved decision-making and reduced irrigation during unusually wet seasons.

However, adoption was initially uneven. Smaller farms expressed concern about high upfront costs and limited technical expertise. A 2013 survey of 420 farmers found that only 29% felt confident interpreting sensor data without external support. In addition, software compatibility issues delayed data integration across platforms. Critics argued that without adequate training, precision tools could increase inequality between large and small producers. Responding to these concerns, NIAT introduced training workshops in 2014, hosted at regional centres in Arnhem and Utrecht.

Government involvement increased after 2016, when the European Commission approved a 240 million funding package to promote digital agriculture across member states. By 2018, over 61% of Dutch arable farms had adopted at least one precision technology. NIAT records show that nitrogen runoff declined by 14% between 2015 and 2019 in regions using sensor-guided fertilisation. These environmental benefits strengthened political support and positioned the Netherlands as a leading exporter of smart farming systems.

Beyond environmental outcomes, economic impacts were also documented. A 2020 costbenefit analysis conducted at Erasmus University Rotterdam found that farms using precision agriculture increased net profits by an average of 420 per hectare annually. Labour efficiency improved as automated machinery reduced manual field inspections. Furthermore, insurance claims related to crop failure fell by 11% between 2017 and 2021, according to data from AgriSure Nederland.

Looking forward, NIAT plans to integrate artificial intelligence into farm management systems by 2030. Pilot projects launched in January 2024 are testing predictive algorithms at test sites in Lelystad and Zwolle. These systems aim to forecast pest outbreaks up to three weeks in advance. As of 2024, approximately 48% of Dutch farms use advanced digital tools, and projections suggest this figure could exceed 75% by 2035 if current investment levels are maintained.