Innovation is Where Dealers Come to Grow!
While agtech venture funding has slowed within the industry over time, the implications of technology, complex interactions between companies, and macro trends continue to drive compelling new themes to pay attention to for agribusiness professionals such as yourself.
Follow along for highlights and predictions (although, not intentional) of some themes surrounding agtech and agribusiness you may want to pay attention to. They are in no particular order.
Also featured are other ag innovation articles on:
- Precision Spraying: Discover who is dominating the industry in precision spraying and learn more about the different options in the market today.
- Drones & AI: Learn how drones are making artificial intelligence accessible to small farmers, revolutionizing their operations with real-time data collection, ease of use, and cost-effective adoption.
- Autonomous Drones: Dive into the world of autonomous drone technology with Guardian Agriculture, and see how their innovative solutions are transforming farming practices with efficiency and precision.
- Autonomous Robots: Read on to learn three basic questions when it comes to one of the hottest trends right now in agriculture…autonomous robots.
These articles offer a glimpse into the forefront of agricultural innovation, providing dealers with actionable insights and opportunities to stay ahead in a rapidly evolving industry. Get ready to explore the future of farming and unlock new possibilities for growth and success!
1. Vertical Ag Software Battles Intensify:
The competitive landscape in vertical agriculture software is becoming more intense. Companies like Bushel, AgVend, Smartwyre, and Ever.Ag are making significant strides in market penetration. The focus on reducing friction for agribusiness professionals and customers, enhancing user experiences, and expanding platform value chains is driving further competitive dynamics.
2. Evolving Crop Input Trends:
There is a significant shift towards sustainable molecules in crop protection, biology and formulation technology, moving away from reliance solely on proprietary synthetic active ingredients. Companies are differentiating through novel formulation technologies that can enhance product performance, extend intellectual property, and reduce environmental impacts.
3. Precision in All Aspects of Agriculture:
The trend towards precision in agriculture is expanding beyond traditional areas like fertilizer application. It now encompasses various activities including product marketing, gene editing, grain marketing, crop protection product formulation, and staff training. This shift towards more granular and precise approaches in various facets of agriculture aims to improve efficiency and outcomes and will eliminate generalities and focus on the average.
4. Soil and the Convergence of Crop Protection and Fertilizer Industries:
There is a growing overlap between the realms of crop protection and fertilizer manufacturers. Companies traditionally focused on crop protection are now entering the soil health and nutrient efficiency space. This convergence is leading to new competitive dynamics in the industry, with companies like Corteva and Syngenta expanding into nutrient and nutrient-use efficiency products.
5. Advancements in Agribusiness Software and AI:
The integration of AI and large language models (LLMs) in agribusiness software will impact agriculture in 2024, but not in the way that is most talked about with agronomic decisions; the primary method will be through administrative and workflow optimization for agribusiness professionals. This includes applications like crop protection programming, product sales materials, and automated workflow processes. The integration of AI is seen as a key enabler for improving the efficiency and decision-making capabilities of agribusiness professionals.
6. Rocky Raising Environment and Venture Capital Shifts in Agtech:
The agtech sector is facing a challenging capital-raising environment, prompting a trend towards self-funding and more sustainable unit economics. Venture capitalists are responding by looking at new methods of funding too, such as venture studio models. This also leads to potential consolidation, particularly in the agribusiness software and biological sectors.
7. Digital Infrastructure and Cloud Wars in Agriculture:
The competition in cloud computing is intensifying in agriculture, with major providers like Amazon, Microsoft, and Google forming partnerships with ag-specific companies. These collaborations aim to deliver the digital infrastructure to transform agricultural data into actionable insights, indicating a shift towards ecosystem clouds. This trend reflects a move toward integrated cloud services and applications that are specifically tailored to the unique needs of the agricultural sector.
8. Challenges in Climate Smart Agriculture, Traceability, and MRV:
Progress in sustainability, traceability, and MRV in agriculture will move at a snail’s pace in 2024. A lack of unified direction and inconsistent approaches hinder them. The effectiveness of large-scale projects is questionable, suggesting that starting with smaller, more manageable initiatives could lead to more significant, scalable successes in climate-smart agriculture and related areas moving forward.