By Jacob Bunge 

U.S. agricultural companies reached an agreement with farm groups on principles governing the companies' use of crop data, a deal aimed at allaying privacy and information-security concerns as the Farm Belt embraces new technology.

The first-of-its-kind accord, expected to be announced Thursday by the American Farm Bureau Federation, marks the biggest step yet by companies such as Monsanto Co. and Deere & Co. to quell farmers' fears about the expanded use of data on specific fields in planting technology and other services sold to growers.

The deal seeks to unite the industry on practices for collecting, storing and using information ranging from planting dates to pesticide applications and crop yields. Tractors and combines collect this information on thumb drives or beam it to remote computer servers. Agribusinesses then analyze the data to provide services that help farmers choose what seeds to plant and how to plan harvests.

Smaller agricultural companies also are working on ways to collect and distribute farmers' data, potentially challenging big seed and farm-equipment companies that have bet the new services could become a multibillion-dollar business.

"We want to allow farmers the confidence they need to adopt these game-changing technologies," said American Farm Bureau President Bob Stallman.

While a data-driven approach to farming has boosted some farmers' production and helped them save money on sprays and fertilizer, others have expressed reservations about giving big agricultural companies a deep look into their businesses.

The Farm Bureau, based in Washington, has warned that seed companies may have an interest in persuading farmers to buy more seeds, or that services could direct farmers to purchase certain sprays and machinery.

Nearly nine in 10 farmers surveyed by the organization last summer said they weren't fully aware of how their data was being used by companies, according to survey results released in October. About three-fourths of respondents feared it could be used by companies for "market-sensitive commercial activities" or accessed by government regulators.

The Farm Bureau earlier this year gathered a dozen agribusiness firms and farmer groups for a series of meetings geared toward forging a set of voluntary guidelines focused on farm data. The principles that the two sides have agreed to specify that farmers own the information generated from their operations and that companies collecting the data must clearly state how it may be used and the types of third parties that may be granted access to it.

Monsanto, Deere, DuPont Co., Dow Chemical Co. and other seed and equipment companies have signed on to the document, which was reviewed by The Wall Street Journal. The National Farmers Union, the National Corn Growers Association and other groups representing farmers also signed it.

"This educates the farmers as they're making purchasing decisions" on technology, said David Friedberg, chief executive of Climate Corp., Monsanto's data-services unit. "I do think it'll have an effect with the folks that have been vocally skeptical."

Though the new principles are voluntary, the Farm Bureau's Mr. Stallman said "peer and market pressure" will push more companies to adhere to them.

Monsanto, which makes seeds and crop sprays, has spent more than $1 billion in recent years on acquisitions to expand its technology offerings. DuPont estimated earlier this year that farm-data services will generate $500 million in annual sales for the chemical company over the coming decade.

Other firms are looking at ways to turn farmers' data into another marketable commodity. Farmobile LLC, a startup based in suburban Kansas City, Mo., is developing a system that allows farm managers to monitor their operations in real-time using an application on Apple Inc.'s iPad.

The service would enable farmers to store their data on remote servers, using "cloud" technology. Farmers could choose to sell their data to agriculture companies or commodity-market speculators in what Farmobile calls a data exchange.

Farmobile's transmitters plug into farmers' tractors and combines, allowing the company to collect information on planting, fertilization, pesticide treatments and harvests. That could be valuable to companies that want to know such details as the pace of Iowa's corn harvest or whether Indiana's soybean crop is grappling with hard-to-kill weeds. Those companies could query the database and offer bids to pay individual farmers for their data.

"Every year farmers grow corn, wheat and soybeans, they harvest that and sell it," said Jason Tatge, Farmobile's co-founder and chief executive. "We want to do the same thing with their data."

Write to Jacob Bunge at jacob.bunge@wsj.com

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