Investments in ag tech doubled in 2015

Feb 25, 2016

There were $4.6 billion worth of investments last year

By Diego Flammini
Assistant Editor, North American Content
Farms.com

Farm income and general profits may have been down in 2015, but investments into agricultural technology startups were up by a record pace.

“There’s definitely been a downturn in the broader market, but ultimately the direction of agriculture is going towards a more technology driven future,” said AgFunder CEO Rob Leclerc in an interview with Reuters.

According to a report by AgFunder, in 2015 ag tech startups saw a total of $4.6 billion worth of investments – up from $2.36 billion in 2014.

When it comes to precision ag, there were 96 deals, totalling $661 million worth of investments.

Some 49 per cent of the investments were placed in drones, while 27 per cent of the investments were placed in satellites and imagery.

Soil crop technology saw 35 deals in 2015 for a total of $168 million worth of investments.

Food and E-Commerce had 137 deals in 2015 for a total of $1.65 billion worth of investments.

As far as investment destinations, where the money is being invested, the flavor is heavily European with some North American influences.

The top 10 investment destinations were:

United Sates
India
Canada
United Kingdom
Israel
France
Germany
China
Netherlands
Switzerland

Video: How farmers are protecting the soil and our food security | DW Documentary

For a long time, soil was all but ignored. But for years, the valuable humus layer has been thinning. Farmers in Brandenburg are clearly feeling the effects of this on their sandy fields. Many are now taking steps to prepare their farms for the future.

Years of drought, record rainfall and failed harvests: we are becoming increasingly aware of how sensitively our environment reacts to extreme weather conditions. Farmers' livelihoods are at stake. So is the ability of consumers to afford food.

For a few years now, agriculture that focuses solely on maximum yields has been regarded with increasing skepticism. It is becoming more and more clear just how dependent we are on healthy soils.

Brandenburg is the federal state with the worst soil quality in Germany. The already thin, fertile humus layer has been shrinking for decades. Researchers and farmers who are keen to experiment are combating these developments and looking for solutions. Priority is being given to building up the humus layer, which consists of microorganisms and fungi, as well as springtails, small worms and centipedes.

For Lena and Philipp Adler, two young vegetable farmers, the tiny soil creatures are invaluable helpers. On their three-hectare organic farm, they rely on simple, mechanical weed control, fallow areas where the soil can recover, and diversity. Conventional farmer Mark Dümichen also does everything he can to protect soil life on his land. For years, he has not tilled the soil after the harvest and sows directly into the field. His yields have stabilized since he began to work this way.

Isabella Krause from Regionalwert AG Berlin-Brandenburg is convinced after the experiences of the last hot summers that new crops will thrive on Brandenburg's fields in the long term. She has founded a network of farmers who are promoting the cultivation of chickpeas with support from the scientific community.