Professional Documents
Culture Documents
355-367 of Chapter 6
Management and Decision Support Systems, in CIGR Handbook of Agricultural Engineering Volume VI
Information Technology. Edited by CIGR--The International Commission of Agricultural Engineering;
Volume Editor, Axel Munack. St. Joseph, Michigan, USA: ASABE. Copyright American Society of
Agricultural Engineers.
6.1.1 Introduction
The world is currently encountering a revolution in information and communica-
tion technology, which could bring significant changes to human life. Knowledge is
becoming the new jewelry of life and there is an ongoing change towards knowledge-
based societies and economies in which research, innovation, and knowledge are the
major components. Knowledge-based agricultural production, through the adoption of
information and communication technologies, is becoming necessary in order to re-
spond to numerous challenges of consumer demands on food safety and security, sus-
tainable development, environmental protection, maintenance of farmers’ revenues,
and competitive power both in domestic and global markets. Some of the develop-
ments in attaining a knowledge-intensive agriculture include use of models on PCs or
on the Internet, electronic data interchange which facilitates data exchanges between
farmers’ management systems and their partners, multimedia tools (such as the Inter-
net and CD-ROMs), and e-commerce [1].
This chapter provides a brief description of information systems in agriculture and
their roles in farm and crop management.
356 Chapter 6 Management and Decision Support Systems
Information System
Process
Input (Classify, Arrange, Output
Calculate)
Feedback
contact with their suppliers, information providers, and agricultural research in-
stitutes, and follow up with recent developments in their field of business.
3. Management information systems (MIS)—Information systems at the manage-
ment level that serve the functions of planning, controlling, and decision making
by providing routine summary and exception reports. They are systems designed
to provide daily production information at the individual animal level or crop
production level that is of potential value in making management decisions [7].
4. Decision support systems (DSS)—Information systems that combine data and
sophisticated analytical models or data analysis tools to support semi-structured
and unstructured decision making for farm managers for a wide range of appli-
cations including business and organizational management, health, water re-
sources, environment, crop/animal production, transportation systems, etc., e.g.,
decisions on feed mixture, when to apply pesticide for various crops, how to re-
alize a competitive advantage.
Numerous MIS and DSS have been developed to help farmers improve their manage-
rial decision making. The value of these systems is affected by goals and competence
of the farmer(s), and characteristics of the farm, such as the size of the farm. Several
are discussed below.
6.1.5 Farm Management Information Systems (FMIS)
Information and decision making are inseparable [8]. A system for providing in-
formation is vital to a business decision-making process [9]. Farm decision-makers
use information from a wide range of sources, but one of the most valuable sources of
specialized information about the farm operation is provided by a farm record system
(FRS) [10,11]. An FRS can include financial and production record types [12]. The
system may be as simple as a cash book, or so large and complex that it requires the
processing capabilities of a computer to maintain it efficiently. Information provided
by an FRS can be passed on to individuals or organizations outside the farm business,
such as accountants to prepare tax returns and bankers to support loan applications, or
used within the farm gate to support the business decision-making process [13,14].
A farm management information system (FMIS) is conceptualized as an FRS that
provides information to support farm business decision making [14]. If an FRS only
provides information to individuals or organizations outside the farm business, then it
is not a FMIS. Record-keeping methods are defined as those bookkeeping or account-
ing skills that are needed to set up and operate a variety of financial and production
accounts or report types common to farm businesses.
A computer is conceptualized primarily as a management tool. It is a system of
hardware and software elements capable of supporting a farm record system and per-
forming analysis on the data. The adoption and use of a computer enables farm busi-
nesses to operate with a larger number of record types and perform more extensive
and complex analyses than would be possible using manual procedures alone. The
adoption of record keeping methods (i.e., establishment of a farm record system) is
seen as the first level of sophistication and the first step toward establishing a FMIS.
The use of information provided by a farm record system is seen as the second level of
360 Chapter 6 Management and Decision Support Systems
sophistication and defines a manual FMIS. The adoption and use of a computer in
support of a FMIS adds another layer of sophistication. The increase in sophistication
of the FMIS is a contiguous process. Each step upwards in the level of sophistication
is the next stage in the evolution of FMIS. Using the concept of levels of sophistica-
tion in FMIS, it is possible to segment farm businesses into four groups [14]:
1. No farm record system—All farm businesses have some compulsory reporting
requirements, such as taxation. A farm record system is defined as maintenance
of at least a basic cash book. Farm businesses in this category do not operate a
farm record system, but are presumed to keep at least a box of check stubs and
receipts to pass on to their accountants at the end of the financial year.
2. Farm record system (FRS)—Farm businesses in this segment do operate a man-
ual farm record system, but information provided by it is not used to support de-
cision making.
3. Manual FMIS—In this segment information from a farm record system is used
in farm business decision making. The farm record system is maintained and
data analysis is performed using predominantly manual methods, but may be as-
sisted by some type of electronic calculator or other items of basic office equip-
ment.
4. Computer-supported FMIS—It is not presumed that the farm record system will
be maintained solely on computer. Most farm businesses in this segment will
use a combination of computer and manual methods.
As mentioned before, information systems, comprising hardware and software, in-
volve the use of digital information and control systems which collect (or retrieve),
process, store, and distribute information to support decision making and control, to
reduce risk and uncertainty, and to assist with the implementation and evaluation of
improved business management strategies. As Blackmore [15] defines, information
technology improves the knowledge base and increases the ability to control the pro-
duction system in order to reduce risk and uncertainty, better identify the extent of
variation in the system, and thereby formulate strategies that explicitly address this
variation and support the processes to implement these strategies. In this respect, in-
formation technology is essentially concerned with risk management.
From a management point of view, [15] classifies information technology into two
broad categories: (1) information management and decision support, including meth-
ods for the collection, assembly, logging and retrieval of data, and methods for data
analysis, interpretation and decision making; and (2) implementation, i.e., monitoring
and control systems.
It has become necessary for farm managers to implement information systems and
the relevant technology on their farms in order to survive and be a partner of their sec-
tor, and to carry on with their profitable cost-effective business.
Relative to other business activities, the manager of a farm contends not only with
the risks of the marketplace, but also with the uncertainties of the production system,
given its reliance on natural and biological processes. There are a large number of ex-
ternal, uncontrollable factors that influence the technical and economic performance of
the farm system, such as prevailing weather conditions or the incidence of pests and
6.1 Farm and Crop Management Systems 361
diseases. Decisions on cropping practices are required “up front” without full knowl-
edge of future events and resultant outcomes. Furthermore, the response of the system
to actions taken cannot be predicted for sure, and decisions made at one point in the
production cycle have considerable, albeit uncertain, influences on later outcomes and
decisions [15].
6.1.6 Decision Support Systems (DSS)
There are many definitions of DSS, but they usually fall into one of two categories:
narrow or broad [16]. The narrow definition takes the view that DSS are interactive
computer programs that use analytical methods and models to help decision-makers
formulate alternatives for large unstructured problems, analyze their impacts, and then
select appropriate solutions for implementation [17]. The DSS will essentially solve or
give options for solving a given problem. The decision process is structured in a hier-
archical manner, the user inputs various parameters, and the DSS essentially evaluates
the relative impact of doing x instead of y.
The broader definition incorporates the narrow definition above but also includes
other technologies that support decision making, such as knowledge or information
discovery systems, database systems, and geographic information systems (GIS) [18].
With a broader perspective DSS: (a) are computer-based, (b) are an information and/or
technology transfer agent, (c) contribute to option selection, and (d) aid decision mak-
ing irrespective of whether the solution is generated by the system itself or independ-
ently deduced by the user from the information provided.
Decision support systems, which process information, estimate the efficiency of
possible decisions and reduce uncertainty in management, can help farmers in evalua-
tion and selection of the best possible decisions. DSS provide the farmer or consultant
a possibility to choose proper variants of farm management by evaluating dynamically
changing weather conditions, new technologies, changes in fields, and general agricul-
tural policy.
Table 1 provides some examples of decision support systems in use. There are nu-
merous other DSS models in use. A list of models with their descriptions and links to
their sources can be found at http://www.wiz.uni-kassel.de/model_db/models.html.
However, many of those IT-based decision support systems have difficulty in reaching
high user numbers. One reason may be that the developers lack a user perspective, and
also that majority of farmers make decisions intuitively [19,20].
Farmers’ decision making is mostly viewed as a series of linear steps. Johnson et
al. [21], for instance, identify six steps of decision making: (1) problem definition, (2)
observation, (3) decision, (4) analysis, (5) action, and (6) bearing responsibility. Öhl-
mer and Öhlmer et al. [19,20] identify four separate functions of decision making: (1)
problem detection, resulting in detection of a problem or not; (2) problem definition,
resulting in choice of options for further development; (3) analysis and choice, result-
ing in choice of one or more options; and (4) implementation, resulting in output con-
sequences and responsibility bearing. Each of the four functions has four sub-
processes: (a) searching information and paying attention to relevant information; (b)
362 Chapter 6 Management and Decision Support Systems
Table 1. Some types of agricultural DSS currently in use or under development (compiled from [18]).
Target Audience
DSS and Environment DSS Category Description
CABI Compendium Scientists, researchers, Database- and Pest management for
and extension staff; knowledge-driven various crops
worldwide
CROPWAT Scientists and irrigation Model- and Irrigation management
engineers; worldwide database-driven
DSSAT Scientists and researchers; Database-driven, For various crops,
(Decision Support worldwide model-driven analyzes and displays
System for (CERES, outcomes of simulated
Agrotechnology CROPGRO, and agronomic experiments
Transfer) CROPSIM systems)
HOWWET Researchers, extension Database-driven Plant-water interactions
agents, and growers;
Australia
MAS Scientists, researchers, Model-driven Uses CORMAS
(Multi-Agent and extension workers; programming software
System for Natural worldwide for simulations of
Resource various natural resource
Management) management outcomes
NuMass Scientists and researchers; Model- and Soil nutrient
(Nutrient worldwide database- driven management for various
Management crops including rice,
Support System) maize, cassava, etc.
WEPP Scientists, researchers, Model-driven WEPP is a process-
(Water Erosion and extension workers; based, distributed
Prediction Project) worldwide parameter, continuous
simulation, water erosion
prediction model for use
on a PC
planning (which was included only in the analysis and choice phase) and forecasting
consequences of the new information; (c) evaluating consequences and choosing al-
ternatives; and (d) bearing responsibility of the choice. A farmer uses more or less
intuition and analysis in his decision making. Regardless of whether he uses intuition
or analysis, he goes through all four of the functions listed above. The difference is in
how he performs these functions.
Simulation-based models are one of the most commonly used among the systems
of supporting decision making of farmers. Simulation can be defined as a process of
building, analyzing, and using theoretical and experimental results in order to summa-
rize a body of knowledge, to make predictions, or to understand system dynamics. The
stage of building consists of defining the problem and the system, collecting knowl-
edge (processes, parameters, and direct observations), developing a model concept,
translating it into a mathematical model, and converting this into a computer program
[22]. It is essential that there are two sources of information about the system at hand:
6.1 Farm and Crop Management Systems 363
4. All operations in the crop production are completely mechanized with power
equipment (no electronic components are included).
However, none of the above-mentioned technologies and the stages of the devel-
opment of agricultural mechanization could have dealt with in-field variability of crop
and soil conditions. Today, technology has reached a level that allows a farmer to
measure, analyze, and deal with in-field variability that previously was known to exist
but wasn’t manageable. The ability to cope with variations in productivity within a
field and maximize yields has always been a desire of the farmer, especially the farmer
with limited land resources. The recent development of microprocessors and other
electronic technologies are new tools available to help all farmers reach this goal. This
new approach of farming is called precision farming (or precision agriculture) and the
technology behind it is called variable rate application technology.
In accordance with these recent developments in information and communication
technologies (ICT), the following two stages of mechanization can be added to those
listed above:
5. Intermediate level of information systems (IS) and information technology (IT)
use in agricultural production. At this level, a farm owns a personal computer
and software capable of supporting stock keeping, historical records, and analyz-
ing what-if models. A monitoring system is installed on a farm tractor to display
the forward speed, PTO speed, distance traveled, fuel consumption, and work
rate. In addition, sprayers may have a control and data logging facility. No spa-
tial information is required or used.
6. Precision farming as an advanced level of ICT application in agriculture. This
level comprises the IT components of the fifth level but with enhanced capabili-
ties, providing full spatial understanding and treatment of agricultural opera-
tions, e.g., soil and yield mapping, tractors equipped with agricultural bus sys-
tems, GPS-based instrumentation systems, and variable rate application tech-
nologies. The major concerns of this level of technology use are increases in
yield, reduction of inputs and their costs, and the environment.
Farms, especially in developing countries, are generally small in scale, which
causes low productivity and inefficient use of production inputs. The precision farm-
ing approach, with its potential for reducing environmental impacts and increasing
productivity, is being considered a new revolution in agriculture. Precision farming
takes the variability of the field into account in terms of soil fertility, yield, pest distri-
bution, soil compaction, etc., and allows the application of the right amount of the
right inputs at the right location. However, in order to benefit from this advanced
technology to save inputs, energy and environmental impacts, some extra investments
should be made which require an appraisal study for various farming conditions.
However, it is also important to know that information technologies, in terms of
hardware and software and information systems, are in a very dynamic state, and
therefore the information provided here is a picture of the past and current time, not
necessarily the future.
6.1 Farm and Crop Management Systems 365
6.1.9 Conclusion
Knowledge-based agricultural production, through the adoption of information and
communication technologies, is becoming necessary in order to respond to numerous
challenges of consumer demands on food safety, security and traceability, productiv-
ity, sustainable development, environmental protection, maintenance of farmers’ reve-
nues and competitive power both in domestic and global markets.
According to Gelb [25], adoption of information and communication technologies
as a unique challenge in rural areas has long been a specific public concern with re-
gional, national, and international strategic significance. However, the rate, efficiency,
and scope of ICT adoption are slower than expected. This could be expressed in re-
duced farmer profitability, an under-utilized contribution by extension, and reduced
consumer welfare. Relevance, various human-element issues, an “immature” infra-
structure, and proficiency in information systems seem to be common major adoption
constraints, besides the individual impediments and unrecognized benefits and cost of
ICT
Acknowledgements
There is considerable cited information provided within this text which is compiled
from books or papers of various scientists dealing with farm management and/or in-
formation technology in agriculture. I express my acknowledgments to all those cited
in the text and listed within the references without whom this article could not be writ-
ten.
References
1. Waksman, G. 2001. ICT in farm management: Impact of the internet. Proc. of
Third Conference of the European Federation for Information Technology in
Agriculture, Food and the Environment, 567-572.
2. Ronan, G. 2002. Delving and divining for Australian farm management agenda:
1970-2010. Agribusiness Review 10: Paper 7, ISSN 1442-6951.
3. USDA. 1989. Farm management—How to achieve your farm business goals.
Yearbook of Agriculture—1989. Washington, D.C.: United States Department of
Agriculture.
4. Ackoff, R. L. 1989. From data to wisdom. J. Applied Systems Analysis (16): 3-9.
(from the paper by Bellinger, G., D.Castro, A.Mills, Data, Information,
Knowledge, and Wisdom, http://www.systems-thinking.org/ dikw/dikw.htm)
5. Vernon, R. 2001. Knowing where you are going: Information Systems for
Agricultural Research Management. The Hague, Netherlands: International
Service for National Agricultural Research.
6. Laudon, K. C., and J. P. Laudon. 2000. Management Information Systems:
Organization and Technology in the Networked Enterprise, 6th ed. Upper Saddle
River, NJ: Prentice Hall International, Inc.
366 Chapter 6 Management and Decision Support Systems