Fran O'Sullivan: Fast net a game changer

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Prior to the roll-out of the Rural Broadband Initiative, only 20 per cent of rural homes and businesses had access to broadband. By the end of 2016 that number will have risen to 86 per cent

Bringing New Zealand into the digital age has been a top priority for the Government.

The Ultra Fast Broadband scheme to bring fibre optic internet to the home in urban areas is well under way, but the rural sector isn't being left in the dark ages.

The Rural Broadband Initiative is now two-thirds complete and stands to be a game-changer for our agriculture sector. Prior to the roll-out, only 20 per cent of rural homes and businesses had access to broadband -- a necessity to remain competitive in the 21st century. By the end of 2016, that number will have risen to 86 per cent.

For the first time, the internet will have the potential to be used as a serious tool in agribusiness and the sector needs to get with the programme. For those able to access fixed line rural broadband, only 22.6 per cent of homes and businesses have connected.

The internet has been transformative for business, regardless of industry, size or sector -- and agriculture should be no exception. Already we are seeing the emergence of specialist farming technologies and software packages, which stand to change the face of farming in New Zealand.

Real time monitoring and precision agriculture stand out as two technologies that could make an immediate impact on the margins for farmers. Using GPS technology, precision agriculture calibrates and maps exactly where fertiliser has been dropped and what is outstanding. The net evolution of this is self-driving tractors, currently being prototyped in the United Kingdom.

The internet of things is quickly evolving and will continue to reveal a more comprehensive picture in terms of what's going on across the farm at all times -- be it production statistics, animal welfare or even the environmental footprint produced. The data collected can be used with analytics software to derive new insights and efficiencies across the farm.

Xero have taken the lead on the software front, rolling out its new specialised Farming in the Cloud programme earlier this year. The product merges traditional financial and farm management software and takes it one notch up, integrating real time data which links through to suppliers and key stakeholders.

There is the potential for major change at a macro level too -- particularly for innovation around food safety. Increasing connectivity along supply chains should enable real-time farm to fork traceability, improving New Zealand's ability to mitigate risk and react faster in times of crisis.

Improvements in efficiency and traceability are measurable, but the intangible benefits could be substantial. Increased access to the outside world has been cited as one way to help attract more young talent for an industry in dire need.

"It certainly helps attract workers on to the farm when they can feel more connected back to the rest of the world," says Communications Minister Amy Adams. The possibilities available will drive people back to rural communities by bridging the connectivity divide.

"With internet connectivity, location becomes much less of a factor. We could be people living in the most remote corner of New Zealand developing the next big apps for the app stores or feeding into a major global business on the other side of the world. The opportunities opened up are immense."

It's long overdue our most productive industry truly gets on board and embraces the smart economy. The message was loud and clear when the rural sector cried foul after being excluded from the Ultra Fast Broadband scheme. Now that rural broadband is here, it's time for the sector to front up and get on board.

Fran O'Sullivan is a business columnist for the NZ Heraldand Alexander Speirs (right) is a business journalist for Herald Business Reports.