Urban centric people tend to look down on the agricultural world as being backwards, unlearned and out of date. Nothing could be further from the truth. If one puts a stick in the ground about 1810 and measures progress in productivity and efficiencies since then, no industry has outpaced agriculture. Agriculture advances in genetics (plant and animal), fertilization, irrigation, equipment and electronics have been outpaced by no one. Even our own industry is dependent the thriving growth of one sector of agriculture...forests.

So, when I see an advancement in agriculture, I pay attention and consider how we might use it in our own industry.

This latest advancement is in supporting businesses. In the past, products such as seed, fertilizer, herbicides and pesticides were sold to the farmers in common unit measures: bags, pounds (kg), gallons (liters) and so forth. It was up to the farmers to utilize these inputs in the most efficient manner possible.

Starting about 2019, a new method of business began to be introduced.

As an aside, let me illustrate an issue this new method of doing business intends to address. It is well known that all other matters being equal, seed density per acre (or hectare) makes a difference in crop yields, up to a certain point. When farmers buy seeds by the bag, this is a complex calculation if one wants to maximize yield. However, when the seed companies sell the farmers seed by the density of planting, this is a different equation. With today's data gathering on yields, which is granular (no pun intended) information reaching down to at least the square foot size, there can be intelligent planting decisions maximizing yield. Some seed companies are starting to work alongside the farmers, inputting the farmer's data, and promising a certain yield if the farmer follows their planting instructions.

Now here is the interesting part...if the instructions are followed and the yield is less than the target, the seed company pays the farmer. If the yield is more than the target, the farmer gives a piece of the surplus to the seed company. This idea is now spreading beyond just seed.

This is revolutionary.

What if a paper mill and a chemical supplier adopted this business model? The modern mill has enough operating data to be as granular as the farmer. Amendments of various types could be bought on this model.

Risk and rewards could be shared in a new way.

Jim Thompson is CEO of Paperitalo Publications.