Agtech Action | Week of 06.22.24 - 06.28.24
Agtech Action is a weekly newsletter highlighting and commenting on current events in the world of agtech
Planet and Nvidia partner, lab meat for soldiers and US support for alt energy wanes. Hershey’s sued over Reese’s products, AI is touching your food, and an investor group makes an offer on Benson Hill.
Capital is a blessing, but it is also a curse. There is more to capitalization then attracting money. We’ll explain that in this week’s newsletter.
Food and the World:
New CBO estimate remains below GOP farm bill needs
Washington Insider Sees the Presidential Debate As Significant For Both Candidates
Few dairy farmers seek USDA bird flu funds
Rain causing growing concern for U.S. crops
US farmers shun buyers, cling to unsold corn as prices slump
The Countdown to USDA's Big June Acreage Report: Ag Economists Weigh In on Wild Cards
‘Exceptional’ strawberry crop anticipated
Four states to begin voluntary testing for bird flu in dairy farm milk tanks
Iowa Utilities Board approves permit for controversial Summit pipeline
From Black Sea to US Midwest, Extreme Weather Threatens Crop Output
Corn crop condition declines for 3rd consecutive week
House farm bill would shield Bayer from Roundup lawsuits
Rabobank: Consumers pull back on spending after years of inflation fatigue
U.S. farm agency seeks input on climate-friendly farm practices for biofuel tax credit
Survey finds farmers planted 6 million fewer corn acres than last year
USDA offers 90% compensation for bird flu losses in dairy herds
Illinois crops progressing nicely, bracing for another hot July
USDA increases corn acre estimate more than expected
Agtech in the News:
Planet to Use Nvidia AI Processor Onboard Pelican Satellite
The Promise of Precision Agriculture Is Slowly Coming to Fruition
CEA Alliance debuts sustainability framework
Walmart partners with Agritask on produce sourcing pilot
Denmark Will Be First to Impose Carbon Dioxide Tax on Livestock Emissions
Bunge, CP Foods test soy traceability blockchain
American Support for EVs, Solar and Wind Energy Wanes, Pew Says
Hydrosat to Launch VanZyl-1 Satellite for Global High-Resolution Thermal Imaging
The Nation's Largest Independent Crop Insurance Provider Has Been Acquired
Quest for AI solutions propels ag strategies
Agtech Company AgriFORCE Appoints Jolie Kahn As CEO
Fun:
‘I do’ included an unlikely partnership for this tractor restoration enthusiast
How should journalists cover quacks like Dr. Oz or the Food Babe?
How This One Technology Helped a Michigan Farmer Cut His Herbicide Use by 60%
A Tale Of Two Crops: Farmers Struggle Against Flooding And Drought
Corn and Cocaine: Roger Reaves and the Most Incredible Farm Story Never Told
Helpful Resources:
2024 US Venture Capital Outlook: Midyear Update
Q2 2024 Allocator Solutions: Private Market Opportunities Midyear Update
Q1 2024 Global Real Assets Report
Interesting Reads:
Provocative statements on real estate models in animal agriculture
Assault on US Avocado Inspectors in Mexican State Led to Suspension of Inspections
Lessons from the Trenches: One Founder’s Candid Look at Bootstrapping
All Around the Mountain Valley Pipeline, Farmers Are Losing Access to Clean Water
Pigs Can’t Sweat, and It’s Costing Us Billions — Can USDA’s ‘HotHog’ App Keep Them Cool?
The science of sound: What is it about the crunch that keeps snackers dipping in for more?
Hershey Sued Over Deceptive Carvings on Reese's Products
How 3M Executives Convinced a Scientist the Forever Chemicals She Found in Human Blood Were Safe
USDA: Expect more cases of bird flu in dairy cattle
India considers ban on key antibiotics for animals
To Foil a Deadly Pest, Scientists Aim for a Beetle-Resistant Ash Tree
Politicians shouldn’t decide what’s for dinner (they shouldn’t decide anything)
10 Agritech Startups Positioned to Change The World (this list needs to be updated; several of these are dead)
Why the obits are premature for alt-meat (sure)
AI is touching your food—maybe most of it—by solving the food industry’s unique supply-chain challenges (as long as it doesn’t literally touch it)
Who wants to eat cockatoos? Exploring alt-protein’s future beyond the analogues (and this is why the obits are accurate on alt proteins)
Zespri unveils Zag innovation fund pilots
Finance:
Proterra aims to tap rural boom through RBIC
Forbion bioeconomy fund hits €75M first close
Tenacious Ventures lowers Fund II target as it hits A$18M first close
US-China saber rattling is cause for insulating portfolios
Partial exits on GPs’ radar in quest for liquidity
Investor group makes offer to acquire Benson Hill (more details here)
Agrifutures growAG Hits A$150M, Launches In New Zealand
CEFC calls for unified climate reporting to drive emissions reductions
Downforce Technologies Raises $4.2M to Revolutionize Soil Organic Carbon Measurement
eFishery Secures $30M Loan from HSBC Indonesia
Venture opportunity funds may be coming back—in miniature
Farmland LP and US Agriculture acquire Trinitas almond assets
AgFunder Assumes Management of Blue Horizon's $100M Growth Fund
Theme of the Agtech Week: Capitalization
Capital is the name and attracting it is the game. I wish it were that simple but it isn’t. Agtech is in need of more capital but throwing money at it won’t solve the industry’s pressing issues. It’s about capitalization. Capitalization is about several key things:
Amount — if raising hundreds and millions of dollars were the goal, then agtech would have many more commercial successes. It’s about raising the appropriate amount of capital for specific and strategic purposes. This is not a load the piggy bank exercise.
Timing — are you still developing your tech? Don’t go ask others for capital, unless you want to be locked into certain terms. There is no shortage of capital—grants, equity, research awards, etc.—so be honest about the capital you need at the right time. Creating a venture does not mean you should subsequently raise capital.
Purpose — the first question you should ask is do you need to raise capital? And the second question, if the answer to the first is yes, is for what purpose? Is this for sales growth and expansion? Is this for infrastructure that you need for growth? Or is it for something else that is crucial to your commercial success? Do not raise capital because everyone else is. Raise capital because you need to for a specific commercial purpose.
Source — capital is good, but capital from the right person or organization is great. When raising capital, you have to remember it is a two-way street. The value does not end with the check. Consider what else does the capital come with; does it come with expertise, experience, a network or other value? Or does it come with headache, terms and other impediments?
Capitalization is the right type, and amount, of capital at the right time from the right sources and for a specific purpose. Some agtech check a few of these boxes but a rare few check them all. Check them all and agtech goes to the next level. Exciting time! Thanks for reading.
BD
Brandon Day is the Chief Operating Officer of The Yield Lab Institute, the global agtech think-tank, ecosystem builder, non-profit arm of The Yield Lab global network of venture capital funds. The views, opinions and commentary expressed are solely those of Brandon Day.