Precision agriculture and the transformation of sustainable farming
April 15, 2022
Farmers around the world continue to face increasingly unpredictable weather events brought on by climate change. In Chile, a decadelong megadrought spurred by a warm water “blob” has devastated agricultural communities, stricken rural populations and depleted water reserves.
Volatile weather instances like droughts not only threaten the steady production of food supply but increase consumer prices and trigger economic deficit. In the US alone, droughts have caused $285 billion in economic damage since 1980, according to the National Oceanic and Atmospheric Administration. Even more troubling is NASA’s recent prediction that fluctuating rain patterns and increased carbon dioxide could decrease annual crop yields, in some cases, by a quarter as early as 2030.
In the last twenty years, agtech innovations have helped agronomists navigate the effects of climate change, address labor shortages and circumvent food insecurity in a growing population. Today, the vertical’s classifications span indoor farming, ag biotech, precision ag, animal ag, agrifinance and e-commerce.
VC agtech activity continued to gain speed in the last quarter of 2021, hitting a decade high with $10.5 billion invested in tech startups, increasing deal value by more than 58% YoY. According to PitchBook's 2021 emerging tech report, the sector generated roughly $280 billion in revenue in 2020 and is estimated to reach $345 billion by 2025.
Among the industry's segments, precision ag has experienced rapid growth, with over 450 new companies founded in the last ten years. The subdivision reached $7.8 billion last year and is predicted to swell to $13.9 billion by 2026.
Emerging digital products such as robotics and machinery improve field operations at the levels of seeding, harvesting and irrigation. In the years to come, scaling these automation solutions will orient regional communities toward locally sourced farming practices and significantly reduce the industry's carbon footprint.
Raven Industries Inc is a diversified technology company providing products to customers within the industrial, agricultural, energy, construction and defense markets. The company’s reportable segments namely sell its precision agriculture control products to both original equipment manufacturers and through aftermarket distribution partners.
The company was acquired by CNH Industrial for $2.1 billion. The acquisition will enhance CNH Industrial's position in the global agriculture equipment market by adding strong innovation capabilities in autonomous and precision agriculture technology.
Central Coast Agriculture produces bulk crops dedicated to precision agriculture, permaculture principles and strategic engineering. The company offers precision agriculture, site-specific crop management, water conservation, seed breading and other services enabling farmers with high-quality yields and consumers with organic food.
The company raised an estimated $99.2 million of Series C venture funding from Artemis Growth Partners on January 14, 2021, putting the company's pre-money valuation at $400 million.
Farmers Edge Inc has a broad portfolio of proprietary technological innovations, spanning hardware, software, and services. Powered by a combination of connected field sensors, artificial intelligence, big data analytics, and agronomic expertise, the company's digital platform turns data into actions and intelligent insights.
The company raised $125 million in its initial public offering on the Toronto Stock Exchange under the ticker symbol of FDGE on March 3, 2021.
AgJunction Inc develops products to enhance the efficiency and productivity of agricultural activities through technology. It manufactures products incorporating technologies that provide automation and navigation solutions by integrating global navigation satellite systems (GNSS) positioning and other technologies for precision machine guidance.
The company reached a definitive agreement to be acquired by Kubota for $71.7 million on October 7, 2021. The transaction will enable Kubota to expand into the agriculture machine automation sector.
Pattern Ag is a precision agriculture platform designed to provide a deep understanding of soil. The company delivers actionable intelligence to farmers based on high-resolution mapping of the DNA found in the soil, enabling farmers to identify key opportunities to increase yield and save money.
The company raised $27.5 million of venture funding through a combination of debt and equity on March 8, 2021, putting the company's pre-money valuation at $40 million.
Agritask is an agronomic intelligence platform designed to manage agriculture operations. The company integrates a wide array of agronomic technologies, tools, and data sources into one brain that analyzes the data, quantifies the risks and produces alerts, recommendations, and actionable insights.
The company raised $26 million of Series B venture funding in a deal led by Liechtenstein Group with participation from Smart Agro, BlueOrchard Finance and Bridges Israel.
Sentera is a data analytics provider that delivers agronomic insights to improve cultivation outcomes. The company's technology includes customizable drones, sensors, and data management systems that unify website, mobile, desktop, and application program interfaces to deliver concise and easy-to-understand reports.
The company raised $25 million of Series C venture funding in a deal led by Caisse de dépôt et placement du Québec and S2G Ventures.
Download PitchBook’s 2021 annual agtech report
Find out which sustainability challenges affect agriculture today
Download Pitchbook’s analyst note exploring environmental threats to agriculture
Take a closer look at what’s in store for emerging tech and agtech in 2022
Checkout analyst predictions for emerging technology across 11 sectors
Volatile weather instances like droughts not only threaten the steady production of food supply but increase consumer prices and trigger economic deficit. In the US alone, droughts have caused $285 billion in economic damage since 1980, according to the National Oceanic and Atmospheric Administration. Even more troubling is NASA’s recent prediction that fluctuating rain patterns and increased carbon dioxide could decrease annual crop yields, in some cases, by a quarter as early as 2030.
In the last twenty years, agtech innovations have helped agronomists navigate the effects of climate change, address labor shortages and circumvent food insecurity in a growing population. Today, the vertical’s classifications span indoor farming, ag biotech, precision ag, animal ag, agrifinance and e-commerce.
Agtech market drivers
Agriculture is one of the world's leading industries, yet broad swaths remain underserved by digitization and connectivity. This provides a unique opportunity for VCs and startups to unlock value with social and environmental returns across all facets of the supply chain.VC agtech activity continued to gain speed in the last quarter of 2021, hitting a decade high with $10.5 billion invested in tech startups, increasing deal value by more than 58% YoY. According to PitchBook's 2021 emerging tech report, the sector generated roughly $280 billion in revenue in 2020 and is estimated to reach $345 billion by 2025.
Among the industry's segments, precision ag has experienced rapid growth, with over 450 new companies founded in the last ten years. The subdivision reached $7.8 billion last year and is predicted to swell to $13.9 billion by 2026.
report
Download report
2021 Annual Agtech Report
Take a closer look at agtech’s record-breaking year, investment activity and emerging market segments.Download report
What is precision ag?
Precision agriculture is a farming methodology that analyzes temporal and spatial variability to improve the sustainability of agricultural output. Startups in this space provide agronomists with an array of strategies and technologies to support yield optimization and crop management with applications classified under four subcategories:- Field monitoring and analysis
- In-field robotics solutions
- Soil sensing analysis
- Image analytics
Emerging digital products such as robotics and machinery improve field operations at the levels of seeding, harvesting and irrigation. In the years to come, scaling these automation solutions will orient regional communities toward locally sourced farming practices and significantly reduce the industry's carbon footprint.
Precision ag use cases
Solutions in this segment use less land, water, herbicides and pesticides to optimize and streamline output through a range of technologies:- GPS trackers allow farmers to plant crops in a more precise way, saving time and energy while maximizing yield and operational efficiency
- Real-time data monitoring techniques collect predictive information for accurate planting choices
- Drones not only inform farming management decisions and monitor crop yields but are used to automate spraying pesticides and herbicides
- Infrared soil sensing technologies monitor chemical and physiological variables within the earth
- Farm bots assist with precision planting, pulling weeds and monitoring pests
Top 7 precision ag companies by deal size (2021-present)
*According to PitchBook data as of March 30, 2022; data is subject to change frequentlyRaven Industries
- Latest deal: $2.1B, M&A
- Deal date: November 30, 2021
- Total raised to date: $2.1B
Raven Industries Inc is a diversified technology company providing products to customers within the industrial, agricultural, energy, construction and defense markets. The company’s reportable segments namely sell its precision agriculture control products to both original equipment manufacturers and through aftermarket distribution partners.
The company was acquired by CNH Industrial for $2.1 billion. The acquisition will enhance CNH Industrial's position in the global agriculture equipment market by adding strong innovation capabilities in autonomous and precision agriculture technology.
Central Coast Agriculture
- Latest deal: $99.2M, later-stage VC
- Deal date: January 14, 2021
- Total raised to date: $177.20M
Central Coast Agriculture produces bulk crops dedicated to precision agriculture, permaculture principles and strategic engineering. The company offers precision agriculture, site-specific crop management, water conservation, seed breading and other services enabling farmers with high-quality yields and consumers with organic food.
The company raised an estimated $99.2 million of Series C venture funding from Artemis Growth Partners on January 14, 2021, putting the company's pre-money valuation at $400 million.
Farmers Edge
- Latest deal: $98.74M, IPO
- Deal date: March 3, 2021
- Total raised to date: $176.68M
Farmers Edge Inc has a broad portfolio of proprietary technological innovations, spanning hardware, software, and services. Powered by a combination of connected field sensors, artificial intelligence, big data analytics, and agronomic expertise, the company's digital platform turns data into actions and intelligent insights.
The company raised $125 million in its initial public offering on the Toronto Stock Exchange under the ticker symbol of FDGE on March 3, 2021.
AgJunction
- Latest deal: $71.7M, M&A
- Deal date: October 7, 2021
- Total raised to date: $17.7M
AgJunction Inc develops products to enhance the efficiency and productivity of agricultural activities through technology. It manufactures products incorporating technologies that provide automation and navigation solutions by integrating global navigation satellite systems (GNSS) positioning and other technologies for precision machine guidance.
The company reached a definitive agreement to be acquired by Kubota for $71.7 million on October 7, 2021. The transaction will enable Kubota to expand into the agriculture machine automation sector.
Pattern Ag
- Latest deal: $27.5M, early-stage VC
- Deal date: March 8, 2021
- Total raised to date: $27.5M
Pattern Ag is a precision agriculture platform designed to provide a deep understanding of soil. The company delivers actionable intelligence to farmers based on high-resolution mapping of the DNA found in the soil, enabling farmers to identify key opportunities to increase yield and save money.
The company raised $27.5 million of venture funding through a combination of debt and equity on March 8, 2021, putting the company's pre-money valuation at $40 million.
Agritask
- Latest deal: $26M, later-stage VC
- Deal date: February 3, 2022
- Total raised to date: $38.44M
Agritask is an agronomic intelligence platform designed to manage agriculture operations. The company integrates a wide array of agronomic technologies, tools, and data sources into one brain that analyzes the data, quantifies the risks and produces alerts, recommendations, and actionable insights.
The company raised $26 million of Series B venture funding in a deal led by Liechtenstein Group with participation from Smart Agro, BlueOrchard Finance and Bridges Israel.
Sentera
- Latest deal: $25M, later-stage VC
- Deal date: June 9, 2021
- Total raised to date: $55M
Sentera is a data analytics provider that delivers agronomic insights to improve cultivation outcomes. The company's technology includes customizable drones, sensors, and data management systems that unify website, mobile, desktop, and application program interfaces to deliver concise and easy-to-understand reports.
The company raised $25 million of Series C venture funding in a deal led by Caisse de dépôt et placement du Québec and S2G Ventures.
More on agtech market drivers and recent activity below
Learn more about agtech investment activity in 2021Download PitchBook’s 2021 annual agtech report
Find out which sustainability challenges affect agriculture today
Download Pitchbook’s analyst note exploring environmental threats to agriculture
Take a closer look at what’s in store for emerging tech and agtech in 2022
Checkout analyst predictions for emerging technology across 11 sectors
Tags:
Comments:
Thanks for commenting
Our team will review your remarks prior to publishing.
Please check back soon to see them live.