Farmland blockchain
Further to my article the other week about how farm certitude was coming to a supermarket near you, I thought it might be interesting to give a bit of background and shine a spotlight on what could happen. I am indebted to Nick Rines – a genuine Polymath if ever there was one – for the information that follows.
Twelve years ago a company called Writemedia digitally mapped the water infrastructure of Wales. The small family business that employs fewer than six people, digitally recorded the results of putting cameras down water pipes, sewers and drainage outlets. It produced a complete and accurate digital recording of the entire water system. The result is that every organisation and company from Fire Brigades that need to understand the network of water that supports fire hydrant points, to building developers, planners, water companies and government authorities have to pay for the access to information they need. The digital mapping became a licence to print money.
In other areas…
Ubloquity has the ability to track down to 1 metre square and a depth of 6 metres. Results are stored immutably on a blockchain, and accessible in a detailed and completely accurate form that can be adapted for a multitude of significant commercial benefits.
What are those benefits?
Realisation of farm financial assets
Stored blockchain data will include the digitisation of animals. What this means is there is traceability and certitude of individual farm animals, including relevant history, and other factors related to it. Such information can be monetised, and in a way that is 100 per cent certain. I’ve already mentioned this but it’s worth saying again. One major potential advantage to farmers is that for the first time they will have the ability to borrow against livestock. Until now this has not been possible because livestock is not recognised as a quantifiable asset. Blockchain data will enable banks and other lenders to have certainty about livestock as security. It will completely and positively change farm financial modelling across the sector.
Opening up carbon offset investment
A ton of carbon offset is typically bought for between £40-50, but this is mostly a commodity purchase with little detail of where investment actually goes, or what the end result could be. It is open to abuse and false interpretation. Applying blockchain recording to farmland makes UK farms a new and highly identifiable and relatable target for carbon offsetting, with the ability for investment to be based on the type of planting desired - whether hedgerow, woodland or wild meadow, and with a specific index of exactly what the benefits are to the environment, and additionally to wildlife.
Last year in the UK, an estimated £2 billion was spent on carbon offset. A very large percentage was invested into unverified sources with little or no knowledge of how the money was actually spent, the results that will follow, or even if the money actually went into tree planting or something else and any other costs. Blockchain recording will allow UK farmers to enter the carbon offset market at scale, and be able to demonstrate exactly what planting or biodiversity will take place and where to the exact square meter, and with details of the trees or hedgerow planted, or meadow created. This is obviously positive in terms of significantly increasing environmentally sustainability, but more than that, it is highly relatable. The ability to create offset that is tangible presents huge potential to drive the volume of investment by members of the public, schools, charities, voluntary organisations and in particular, companies. In fact, it can create very significant commercial advantage for businesses. Interestingly, in Romania it has been determined that what is called the “Padure” or countryside and its mixture of trees, fields, hedges etc etc is the best carbon sink there is. It’s also where the delicious “Liquior di Padure” comes from. I once asked how to make it and was told it started by putting 50 litres of neat alcohol into a big tank. You can well imagine what the final ABV is.
For corporations and small businesses alike, ESG is no longer just a good thing. It is a sales and marketing necessity for B2B sales, winning central and local government contracts, and increasingly important in consumer markets.
Fleishman Hillard’s report on the influence of social impact and environment on B2B buying, found that 50 per cent of companies switching suppliers say social impact and environment are the top reason for change. And 42 per cent of businesses have switched suppliers or business partners due to inadequate credentials and commitment. Equally, there is an abundance of research that shows consumers increasingly want to see robust environmental credentials. There is nothing better than immutable digital blockchain data.
And there is another plus factor for businesses. A visible and relatable ESG policy is the best way to retain and recruit the best talent. A detailed study by McKinsey found that the more robust a company ESG programme, the more likelihood the best talent will be drawn to it. In younger demographics this is even more profound. A large scale survey by Randstad of 35,000 people of working age, reveals that nearly 50 per cent of Millennials and Gen Zs will not join a company unless it mirrors their social and environmental principles.
And post covid, the Great Resignation happened because professionals and skilled employees wanted to work for organisations that did more than generate income. They wanted to be part of something that contributed to the greater good. Many left their employers without a job to go to. What this means is that relatable investment in planting in UK farms, particularly local farms, is a highly valuable option in companies fulfilling the need to demonstrate doing good in front of employees. It is exactly the type of activity employees want to see. However, investment in planting on local farms can do more for businesses.
Choosing UK farms for carbon offset will help companies drive sales, recruit the best talent, retain the best talent, and has the ability to help increase productivity. As an ESG option, it provides significant value for money even at small scale, and therefore presents great off the shelf potential for the UK’s 5.7 million medium and small businesses, as well as large companies and corporations.
Data sales to government
Aside from all other considerations, what price the data to the Department for Environment, Food and Rural Affairs in its need to strategically plan farming and environmental policy and planning.
Farmers blockchain data as a powerful sales tool for supermarkets
For 10 years in China, consumers have been able to know the provenance of the food they buy. From meat, fish, dairy to fruit and vegetables. Details of the source of produce has been available via QR code instore and online. Details include information such as the boat from which fish is caught, details of the farm and farmland from which meat originates, and the location, type and age of orchard in which fruit is grown. When Alibaba became the first adopter of the technology, it created a powerful and Unique Selling Point.
For the first multiple to use such a system in the UK, there is major competitor “first adopter” advantage. There is a huge market here that in the UK is currently untapped. Coming to a supermarket near you soon.
