Agtech Action | Week of 07.06.24 - 07.12.24
Agtech Action is a weekly newsletter highlighting and commenting on current events in the world of agtech
Grain prices lowest since 2020, Tyson pulls back on antibiotic-free beef, and partisan stalemate on the farm bill. Expectations the Fed will cut rates, Kroger & Albertsons divest stores, and does Roundup affect the gut microbiome?
The best relationships are two-way streets. This is true for technology and innovation. A mutual exchange of value must happen. I see too many one-way exchanges of value in agtech; it needs more reciprocity and it can get there. Let’s discuss in this week’s newsletter.
Food and the World:
Brazil’s second corn crop slightly smaller amid drought
Mexico to drop plan to cut yellow corn imports, new agriculture minister says
Will the U.S. Corn Crop Bake In the July Heat? What You Need to Know About the July Forecast
Corn crop condition improves after four weeks of decline
‘Frustrating’ partisan stalemate: the new normal for farm bills?
Grain prices hitting lowest levels since 2020
Ag’s Big Break with Fishermen’s Win at Supreme Court
Why the increased corn supply matters
Kroger, Albertsons details stores to be divested
The Reasons Fewer Farmers Are Now Responding to USDA's NASS Surveys — And the Impact of Waning Participation (where are the incentives for farmers to complete these?)
Lower crop returns will pressure farmland market, say analysts
July WASDE surprises trade with old crop ending stocks reductions
Agtech in the News:
Cal-Maine Foods, Inc. announces acquisition of egg production assets of ISE America, Inc.
Tyson pulls back on antibiotic-free beef after years of promotion
‘Math’ is the secret ingredient that keeps the US organic food system running smoothly
Can plants solve one of the world’s biggest problems?
USDA researchers improve genome studies to enhance animal ag
Fun:
Kentucky Farmer Survives 6 Hours Trapped in Grain Bin (story of survival)
How Did Three North Dakota Farm Sisters Create a Successful Pasta Brand?
3 Tracts of Iowa farmland bring nearly $4M at auction
Biosecurity Measures Help Protect Livestock During Fairs, Shows, Rodeos
Helpful Resources:
2024 Carbon & Emissions Tech Overview
Agri Investor’s 2024 Sustainable Investing Report
2024 Vertical Snapshot: Defense Tech Update
H1 2024 Emerging Venture Markets Venture Investment Summary
Q4 2023 PitchBook Benchmarks (with preliminary Q1 2024 data)
Interesting Reads:
Land Values Have the Resilience of a Dandelion
The World’s Hunger for Salmon is Linked to an Ecological Disaster
Discontent among farmers continues to grow
How to Objectively Measure the "Fundability" of Your Startup
Is Roundup Messing with Our Gut Microbiome?
Oklahoma Ranchers Climate-Proofing Their Operations
Sometimes there's a market gap for a reason...
The Price of Picking Blueberries
Brazil: a growing threat to U.S. exports
Big Tech Secret? Agile. Here’s How Safaricom Did It
The Mobile Sector Can as Africa’s Key Economic Driver —Fact or Myth?
Why Kenya has the potential to be Africa’s EV powerhouse
Is the Fed Cutting Interest Rates Now Imminent?
What does the future hold for the almond industry?
Over 1,400 organizations sign letter calling on Congress to strengthen SNAP
CDC confirms 4th human case of H5N1 avian flu as more dairy herds in Colorado hit
How to Get Rich from Peeping Inside People’s Fridges
Finance:
Press Release: Pumpkn Secures Investment to Transform Funding for African Agribusinesses
Australia looks to reduce the risk of greenwashing
Decision making controls limit regenerative ag financing, study finds
Australia climate rules to impact firms large and small – Rural Bank
Fiera Comox takes majority stake in New Zealand forestry JV
Tall Grass Ventures hits C$32M final close
Theme of the Agtech Week: Reciprocity
This story about low response rate by farmers to USDA surveys got me thinking about two-way streets in agtech. I see one-way streets much too often in agtech. Those include:
Asking for [insert here] and not giving [insert here], e.g. asking producers for their data and not returning commensurate, or any, amount of value to those producers
Expecting the end user to de-risk their technology with an unknown reward at a much later time frame. This happens too often with on-the-farm tech where the farmer/producers is expected to assume the risk with a reward that may come 5-10 years or later
Uneven distribution of the cost to develop technology. A popular example of this passing the cost of ‘climate’ tech onto the customer claiming that they would be willing to pay for it. Did you ask them if they would? Should the customer pay for this technology or should someone else?
These are 3 of many examples where reciprocity does not exist in agtech. With rising input costs and decreasing market prices on crops, you are going to have an even harder time selling your agtech. You must create and reciprocate value. How?
Share or eliminate the cost. We want more agtech but not if it comes with additional cost. Agtech needs to find the appropriate place in the value chain to absorb that cost. That cost too often is put at the doorstep of the producer. Stop doing that.
Minimize the risk and optimize the reward. The pendulum is too far on the risk side for agtech and it needs to swing the other way. Most agtech needs to be tested, validated before it is put in the hands of an end user for sale.
Give something before you ask for something. Are you willing to offer your tech for free? Can you pay your end users to use your tech? Are there other creative ways where you can give value rather than take value? Approach agtech with a give rather than take mentality.
I know agtech can do this. Agtech founders are sharp, hungry and motivated to exchange equal value for ag. We need more direction and focus on this rather than creating ‘tech for tech sake’ or finding a nail for our hammer. Reciprocity works in relationships and it works in tech.
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.