AI-Enabled Enterprise Risk Management for the Agriculture Sector
Providing AI driven insights for a more productive and interconnected agricultural supply chain.
Project Overview
Updated September 9, 2024
The Problem
Agriculture is the world’s largest industry. Global food security is under increasing strain due to supply chain bottlenecks; decreasing total land under crop across North America; geopolitical conflicts; and rapidly changing climates, with erratic weather accounting for 90% of all crop losses alone. Farm operations are increasingly reluctant to accept risk of production shortfall penalties in forward contracting due to these factors, resulting in increased market price risk and unintended production disruptions.
While components of the food supply chain have various risk mitigation tools, the average farm operation itself lacks those same tools. Lenders, insurers and reinsurers find it increasingly difficult to quantify farm risk profiles amidst all these changes, which locks up needed capital and contributes to an already $2 trillion protection gap in the global agriculture market. Grain companies lack insights into production, geographic dispersions of supply and early committed product, which contributes to inefficient distribution and reduces confidence to commit to global export contracts. Additionally, retailers and service providers lack insights to be able to forge deeper value with farms, with more volatile farm incomes affecting consumer confidence and purchase behaviour.
The result is a highly interconnected supply system that faces major global consequences by not having a reliable way to access and action data.
How We Are Solving It
Led by Agi3 in collaboration with grain company G3 Canada, the University of Manitoba and Enns Brothers; this project will seek to enhance and expand Agi3’s Enterprise Risk Management platform to serve as a fully comprehensive risk management solution for the grain sector.
Agi3’s farmer-centric platform uniquely fuses risk management, insurance solutions and AI-driven insights to result in a more productive and interconnected agricultural supply chain. AI-driven enhancements to the Enterprise Risk Management platform will offer innovative solutions to critical challenges faced by the agriculture industry.
The project consortium offers diverse expertise in the development of these solutions by incorporating the perspectives of G3 Canada as a global grain exporter; Enns Brothers as an agricultural equipment dealer working with farmers for field-level data to enhance sustainability and adoption; and complementing the University of Manitoba’s research into generative AI.
The result of providing farmers and grain companies with personalized, data-driven solutions through AI will improve productivity, profitability and sustainability across the sector. Ultimately, data transparency facilitated by this project will help fulfill the growing demand for sustainability in food production, contributing to environmental conservation and a more resilient food supply chain.
