The Business of Ag Tech
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Jim Barcus Photos
This year the Agricultural Business Council of Kansas City aimed the spotlight on a different aspect of ag technology. During its 7th annual Ag Innovation Forum at the Downtown Marriott, the focus centered on the business of ag technology – rather than its applications for on farm and ranch operations – such as soil management, irrigation, seeding and pesticide practices, harvesting et al. In his wide-ranging keynote presentation, Dr. Bill Wilson, Distinguished Professor, Department of Agribusiness, North Dakota State University, said, “The demand for ag tech is robust.”
The next wave of ag innovation, however, will be directed toward improving business and market fundamentals. Dr. Wilson stated, “One of the largest markets primed for disruption is agriculture finance.” He quipped “that no technology can replace a good farmer.” But farming and the agriculture industry overall has become more complex because of data reporting requirements, statutes and regulations. “2022 saw a quiet but steady rise in financial tech products being built for the massive agriculture industry,” he noted. “Digitization is everything.”
In recounting her recent attendance at the Consumer Electronics Show in Las Vegas, Ag Innovation Forum’s emcee Tyne Morgan, host and executive producer of Farm Journal’s U.S. Farm Report, made a point of describing the growing footprint at CES – the second largest trade show in the world. Ag technology’s development in the last 10 years has been astonishing, she noted. “Ag is viewed as the solution [to so many global problems], and its momentum is like a freight train leaving the station.”
Staying the course on the business perspective of ag innovation, another keynoter, Carter Williams, president and managing partner of iSelect Fund, said technology is being developed quickly. “But getting people to adopt it on the farm is another story.” Williams’ advice for ag tech developers was to “connect with early adopters.” Among his witty offhand comments, Williams suggested ag innovators and climate warriors focus their research “more on biology than nitrogen,” noting that nitrogen itself is inert while biology is alive with potential for development and advances.
In his keynote observations, Steve Welker, operating partner, Lewis & Clark Agrifood, said 2023 is shaping up “to be a great year to invest in ag tech.” Although advances in ag tech take a long time, he explained, “The future is bright; good tech companies are looking for good investors.” Welker also pointed out that millennials are “thinking a lot about food,” which is incenting innovators to produce healthier, sustainable foods. “Tech enables value creation for the food industry.”
Chavonda Jacobs-Young, USDA’s Under Secretary of Agriculture for Research, Education and Economics, was a surprise guest, making an afternoon appearance to offer Forum attendees a recap of President Biden’s remarks on agriculture in his State of the Union address.
This year’s Innovation Forum featured three panels: New Technology/Entrepreneurs; Transparency and Information Systems; Climate-Smart Pilot Programs.
New Technology/Entrepreneurs: Moderator Mike Rohlfsen, chief commercial officer, TechAccel, observed that “precision agriculture” involves more than seed technology, and now includes animal health. He also noted that 75% of growers don’t use precision technology. Panelist Reza Bloomer, director of business development for InnerPlant, briefed attendees on research underway to recode DNA traits in seeds under distress. “Seeds themselves are a novel data source, and we need to tap into them to see what they need.” Dave Baitinger, seed production engineering team leader at Bayer Crop Science, talked about adding automation to the process of creating the next iteration of plant breeding. As a veterinarian by education, Dr. Justin Welsh, executive director of livestock technical services at Merck Animal Health, described his team’s work in creating monitoring systems and technology to determine early on what ails a ruminant cow as more exciting than dispensing antibiotics and vaccines.
Transparency and Information Systems: Moderator J.J. Jones, principal, Cultivated Conversations, noted that at the end of the day consumers “just want to be comfortable” with the processed foods, produce and animal protein they purchase. Deb Arcoleo, partner, Transparency Ventures, described the effectiveness of a digital platform service app, SmartLabel, that shoppers can use to learn more about a product (provided that product is participating in the program). She noted that her research indicates 52% of U.S. consumers don’t think the food industry is transparent. Lamar Steiger, owner of The 808 Ranch and a beef supply chain consultant to Walmart, attributes Walmart’s famed low prices to a business model that owns and operates a supply chain that moves 33% of its goods and products. Dr. Manreet Bhullar, research assistant professor of Horticulture and Natural Sciences, Kansas State University, discussed his team’s work to enhance microbial safety of fresh produce.
Climate-Smart Pilot Programs: Moderator: Moderator Amy Skoczlas Cole, president, Trust in Food, observed the challenges facing efforts to institute climate-smart programs into farming are a “little sobering” but the opportunity is promising. She noted that “65% of producers say consumers do have the right to know how farmers farm.” But Cole said farmers also “want credit for what they have already accomplished [in adopting climate-smart practices]; 45% of them are using digitized tools.” Katina Dove Hanson, acting senior advisor, for USDA’s Climate-Smart Commodities, outlined how the program is being rolled out and funded, but pointed out the it was still in a ‘pilot’ phase – a work in progress. Coralie Pierre, senior manager of Programs & Partnerships at Field to Market, illustrated how efforts are underway to remove barriers in order to scale sustainable ag. “Our progress and ultimate success,” she said, “lie in learning together, mobilizing more capital to support farmers in the transition, and pursuing solutions that create wins for farmers, business, society and our planet.” Kristen Coady, DFA’s senior vice president and chief communications officer, explained the lynchpin to climate-smart production was “to connect on-farm greenhouse gas (GHG) reductions with the development of climate-smart dairy products.” Nathan Fields, with the NCGA &Farmers for Soil Health, said among things that his group was focused on building soil health across corn and soybean acres by utilizing cover crops to 30 million acres by 2030.