Re-Inventing Agriculture: Examples of Creative Destruction

Well into the new millennium, we find ourselves wrapped around a debate about the impact of global warming on nature. Whether we believe in global warming or not, we agree the debate has engaged a new generation of students to become more aware about the environment, spending more time doing research that results in inventions in areas such as energy, transportation, and specially in agriculture.

We will witness a significant number of what I call "Schumpeterian Events" within the agricultural industry. I would like to list just two examples: Water conservation by changing farming methods; and better use of farming land utilizing information from satellites.

While these events may seem independent of one another, they are linked by people's desire to improve our environment. The companies that foresee the future will succeed, while those that don't, will be left behind. And Joseph Schumpeter's prophecy of creative destruction will once again prove itself true.

My first example, water conservation by changing farming methods, is based on how the rise of CO2 in the atmosphere is causing plants to absorb more water than usual. Through the study of how plants absorb water, researches will provide ideas to develop better farming methods. An article from The New York Times written by Syndia Bhanoo [Dec. 28, 2009] described how eventually there could be better farming methods to conserve water. Upon the arrival of new farming methods, farmers will need apply them to remain competitive.

My second example, agriculture and satellites, came from The Economist [Nov. 7th, 2009]. Satellites are easily providing precise prescriptions to farmers: How much to plant, how much seed to use, where and how much fertilizer or pesticide to use, how much to water, etc. Companies need to be ready to offer these types of services to farmers. For example, the Farmers Almanac could take the lead to provide satellite information to farmers. That would be an example of creative destruction. Successful companies will re-invent the way things are done and such industry will never be the same again.

There are many other programs trying to re-invent the agricultural industry. The minds of our new generations are busy at work, making sure that we all have a bright future in this earth. Creative companies will succeed with new products and services.