Case Study: The Supply Chain Path Behind Digital Farming Solutions

By Contributed Article | October 07, 2025

Case Study: The Supply Chain Path Behind Digital Farming Solutions

Today’s growers are using innovative technology to combat issues related to rising input costs, climate change, soil degradation, water scarcity, and other challenges. Digital farming tools monitor soil moisture, manage fertilizer and watering systems, and strategically guide plant maturation to improve crop yields and build profitability.

Precision agriculture, an approach that utilizes digital farming technology to optimize crop and livestock production, is in widespread use. According to a U.S. Department of Agriculture study, yield monitors, yield maps, and soil maps are being used currently by 68% of large-scale crop farms in the U.S., with that percentage expected to increase.

Digital farming solutions require a wide variety of hardware parts and components, including sensors, automation systems, and interconnects, along with software that monitors and collects data during the growing process. One challenge farmers around the world face is dwindling water supplies. In many regions, prolonged droughts are straining regional water systems’ ability to meet farm irrigation demands, which has growers increasingly relying on groundwater due to shortfalls in the surface water supply.

AquaSpy, a California agtech solutions company, teamed up with DigiKey to create digital farming solutions for farmers. AquaSpy helps growers gather and analyze their crop and soil profile data to inform questions surrounding their crop management systems. Are they watering too much? Too little? Is fertilizer being applied at the right times? Are soil nitrate levels adequate?

With these valuable insights, growers can optimize irrigation, minimize runoff, and conserve water while still producing strong crop yields. A particular challenge during the growing season is how much and how often to water. Digital tools help farmers take growing zone, crop type, weather patterns, soil quality, and other factors into consideration.

“We (humans) are draining the Ogallala Aquifer as fast as we can, and we are killing our soil as fast as we can,” said AquaSpy’s Vice President of Engineering Peter Ellegaard. The only way you can change it is if you can measure it.”

With new digital solutions, more growers are closely monitoring soil moisture levels and using innovative below-ground technology to control this aspect of the growing process. AquaSpy offers battery-powered moisture sensors on probes that allow growers to monitor soil quality, moisture levels, and crop progression through a smartphone app. DigiKey provides the components and parts for these high-tech probes. Digital farming solutions that are easy to install are making an impact on agriculture in challenging times.

Comprehensive parametric search

For more than a decade, DigiKey has been AquaSpy’s primary North American supplier of components due to having “by far the best” website interface, according to Ellegaard, who manages AquaSpy’s hardware development, parts ordering, and inventory management. “Whenever I am looking for a new component, I don’t search on Google. I search on DigiKey’s website.” DigiKey’s unique cross-reference tool, simplifies the search for repeat orders, hard-to-find components, and can also substitute parts by providing a list of parametrically similar options. Users enter manufacturer part numbers, and the cross-reference tool displays recommended part options. Once logged into an active account, all parameters become visible for an easy, detailed comparison of listed parts, including a helpful pinout comparison tab. Parts shown with a column highlighted in green mean that the specific parameter is an exact match to the original part, making the format easy to digest and analyze.

“The ability to do parametric search on DigiKey’s website makes it very easy to find new components,” says Ellegaard. He prefers to purchase from DigiKey’s in-stock inventory, working with an annual component budget of about $700,000 and spending about 50% of it with DigiKey.

Continuing to innovate

AquaSpy recently introduced a new, slimmer probe that enables nitrate and oxygen sensors to provide near real-time data – a first-to-market solution for the industry. Nitrate is about a third of input costs for growers and a highly important part of soil health. Ellegaard notes AquaSpy is a category leader in terms of cost and technology when it comes to multi-sensor probes for soil intelligence.

Planning ahead is key

While most electronic components are currently available, it’s a good idea to think ahead and identify alternative parts through your distributor rather than wait until there’s another supply chain issue. DigiKey recommends reviewing your Bill of Materials (BOM) every six months to a year and conducting periodic obsolescence checks to make sure parts are still current. Ellegaard at AquaSpy plans and orders his components on an annual basis and fills in as needed throughout the year for specialized products. DigiKey works directly with suppliers to gain insights into where they’re planning to make changes, when they plan to introduce new products, and what products may be discontinued.

Ellegaard said DigiKey’s inventory search capabilities and reliable inventory have given the AquaSpy team peace of mind during an uncertain time. While other companies are struggling with affordably importing components and some are even rethinking their entire business model, DigiKey continues to be a strong partner for AquaSpy.

To learn more about agtech and the future of farming from DigiKey, check out the first three seasons of the “Farm Different” video series.