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Exploring New AgTech Investments, Emerging Companies, and Industry Milestones
Sepehr Achard
August 16, 2024
Good morning, readers!
This week, we're diving into the latest industry moves, exciting new partnerships, and innovative companies making waves in agriculture.
Estimated Reading Time: 7 - 9 minutes
Hereās a Quick Snapshot of Whatās Making Headlines:
Financial Innovations in Agriculture: Transforming the Industry with Growers Edge
Cargill & Goanna Ag Launch Pilot Project to Enhance Irrigation Efficiency
Valent BioSciencesā TransitĀ® 500 Receives Certification from The Fertilizer Institute
AgriTech Weekly: Strategic Partnerships, Impact Reports & More!
FUNDING ROUNDS
Suzano Ventures Announces Investment in BemAgro
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Suzano Ventures, the corporate venture capital arm of Suzano, the worldās largest market pulp producer, has strategically invested in BemAgro, a Brazilian AgTech startup specializing in SaaS solutions for optimizing agricultural cycles. This investment is part of a US$2.6 million funding round led by CNH, a global leader in agricultural technology, with ATVOS, Brazilās second-largest market ethanol producer, also participating.
Accelerating Technological Adoption
This partnership aims to accelerate the adoption of BemAgroās technologies in the forestry sector, enhancing efficiencies in the eucalyptus lifecycle.
Optimism for Future Collaboration
BemAgroās CEO, Johann Coelho, and executives from Suzano and ATVOS expressed optimism about the potential of this collaboration to expand BemAgro's market reach and technological impact.
DISCOVER THE COMPANY
Financial Innovations in Agriculture: Transforming the Industry with Growers Edge
In recent years, financial innovation has become a critical driver in transforming the agricultural industry, particularly in fostering sustainable practices. Growers Edge, under the leadership of CEO Matt Hansen, has been at the forefront of this movement. The companyās crop plan warranties and other financial tools are designed to mitigate farmers' risks when adopting new technologies, thereby encouraging widespread adoption of sustainable practices.
Crop Plan Warranties: A Game Changer
Growers Edge has developed the crop plan warranty, a financial product providing farmers a safety net. Unlike traditional insurance covering losses, these warranties help overcome market resistance associated with agronomic plans, products, and processes. This innovation aims to address the financial risks involved in adopting new practices. Matt explains, āThe warranty provides downside protection for innovative decisions, making farmers less reticent to adopt new, sustainable products or processes.ā
The warranty system helps spur adoption of sustainability-focused products and services. This is crucial in an industry that has traditionally been hesitant to embrace change.
Overcoming Barriers to Adoption
One of the main challenges in the agricultural sector is the inherent risk aversion among farmers, many of whom operate small businesses with limited capacity to absorb financial losses. The warranties offered by Growers Edge aim to reduce the financial risks associated with trying new technologies. This encourages experimentation and promotes a shift towards more sustainable practices.
The company's product adoption has seen significant growth. Matt said, āWe have seen a 16-fold increase in acreage covered since our launch three years ago.ā Additionally, Growers Edge has experienced a 75% growth in retailers, including four in the top ten of the CropLife 100 rankings, and a 226% growth in the number of growers to 627.
Partnerships and Expanding Reach
Growers Edge has established strategic partnerships with major retailers and manufacturers to drive the adoption of their products. Companies like Helena and Phospholutions have collaborated with Growers Edge to offer warranties on sustainable agricultural products, enhancing trust and reducing the barriers to entry for these innovations.
The companyās reach is not limited to the United States. With plans to expand into Canada and other international markets, Growers Edge aims to become a global leader in agricultural financial technology. This expansion is supported by their robust data analytics and machine learning models, which improve the accuracy of their predictions and the effectiveness of their products.
Success Stories and Case Studies
Growers Edge's impact is illustrated through its success stories and case studies. Its work with Phospholutions on optimizing phosphorus usage showcases how its financial products support sustainability while enhancing agricultural productivity. Another notable partnership is with Field to Market's Climate Smart Initiative, where Growers Edge contributes to nationwide sustainability by providing financial tools that support climate-smart agricultural practices.
A specific case study highlights the benefits of Growers Edge's crop plan warranties. The study shows how the warranty mitigated risks for farmers and led to better crop outcomes, increased adoption of innovative practices, and more excellent financial stability for the farmers involved.
Looking Ahead: Future Innovations
Growers Edge plans to introduce new financial products such as input financing and agricultural mortgages. Input financing, offered as a white-label service, allows retailers and manufacturers to provide financial solutions for purchasing inputs, further reducing barriers for farmers.
Matt envisions a significant opportunity in digitizing agricultural mortgages, drawing parallels with the residential mortgage market's transformation over the past two decades. By leveraging their advanced valuation tools and digital platform capabilities, Growers Edge aims to streamline the agricultural mortgage process, making it faster, easier, and more transparent.
Emphasis on Sustainability
At the core of Growers Edge's mission is sustainability. The company is committed to reducing chemical usage and promoting innovative farming practices that are economically viable. Matt notes, āSustainability, especially with a warranty and some financing, helps farmers transition to lower chemical utilization and more precise machine applications, changing the average farming methodology to be more sustainable.ā
The company's partnerships with large corporations like PepsiCo and Nutrien further highlight the importance and effectiveness of their sustainability initiatives. These collaborations aim to drive significant environmental impact while ensuring economic benefits for farmers.
Conclusion
Growers Edge represents a significant shift in the agricultural industry towards financial innovation and sustainability. By providing financial tools that mitigate risks and encourage the adoption of new technologies, the company aims to help transform agriculture into a more sustainable and economically viable sector. With continued growth and expansion, Growers Edge is set to become a global leader in agricultural financial technology, driving change and fostering innovation worldwide.
For more detailed insights, you can refer to their crop plan case study, their involvement in Field to Market's Climate Smart Initiative, and the Crop Plan Warranty Case Study.
PILOT PROJECT
Cargill & Goanna Ag Launch Pilot Project to Enhance Irrigation Efficiency
Image provided by Cargill
Cargill has partnered with Australian company Goanna Ag to launch a pilot project to improve irrigation efficiency on cotton fields in the Mississippi Delta. The initiative will introduce cutting-edge technology to optimize watering schedules to enhance crop yields, reduce water usage, and lower operational costs.
Introducing GoFieldĀ® Technology
Selected cotton growers in Missouri, Tennessee, Arkansas, and Mississippi will utilize Goanna Agās GoFieldĀ® technology. This technology combines field sensors, satellite imagery, weather forecasts, and crop data to enable precise irrigation. This approach is expected to boost crop yields while significantly contributing to water conservation efforts.
Supporting Sustainable Agriculture
Managing director of Cargillās cotton business, Matt Dunbar, highlighted the project's role in helping retail brands meet sustainability goals. He emphasized the initiative's potential to enhance the resilience of cotton farming in the Mississippi Delta while conserving vital water resources.
Goanna Agās Expertise
With over 20 years of experience in on-farm irrigation management, Goanna Ag brings proven expertise to the partnership. Derek Brazda, vice president of U.S. sales and operations at Goanna Ag, expressed excitement about the collaboration, noting the benefits of improved water-use efficiency, cost reduction, and sustainable outcomes for the program participants.
CERTIFICATION
Valent BioSciencesā TransitĀ® 500 Receives Certification from The Fertilizer Institute
Valent BioSciences has received its third certification under The Fertilizer Instituteās (TFI) Certified Biostimulant Program for its TransitĀ® 500 biostimulant. This recently launched certification program recognizes biostimulant products that have passed rigorous evaluations of efficacy, composition, safety, and testing methods, ensuring compliance with U.S. Biostimulant Industry Guidelines.
Recognition of Transit 500
Corey Rosenbusch, President and CEO of TFI, expressed enthusiasm for the certification, emphasizing the importance of biostimulants in enhancing nutrient uptake, stress tolerance, and overall plant health. He noted that the Certified Biostimulant Program was established to help growers and retailers make informed decisions about biostimulant products.
Benefits of Transit 500
Transit 500 is a liquid biostimulant designed to improve plant tolerance to abiotic stress, enhance fertilizer efficiency, and boost nutrient uptake, ultimately supporting better root and shoot growth. The certification under TFIās program allows Transit 500 to carry a distinctive label indicating its adherence to high standards.
Commitment to Quality
Maria Herrero, Senior Director of Regulatory Affairs for Valent BioSciences, highlighted the company's commitment to providing reliable biostimulant solutions. She praised the Certified Biostimulant Program for setting a standard ensuring customers trust the research and quality behind their biostimulant choices.
OTHER NEWS
AgriTech Weekly: Strategic Partnerships, Impact Reports & More!
šŗšø Phospholutions Inc. announced a strategic partnership with Toros Agri to commercialize its RhizoSorbĀ® technology. This collaboration marks a crucial step in bringing RhizoSorbĀ® to market, with the goal of producing more affordable and environmentally sustainable phosphorus fertilizers at scale.
š ProducePay released its inaugural 2023 Impact Report. The report details the companyās strategy to address the prevalent issue of food waste, which affects approximately 40% of the global fresh produce supply chain.
š» Soli Organic Inc. announced the deployment of its first battery-electric truck. In partnership with Penske Truck Leasing, Soli Organic is integrating the FreightlinerĀ® eCascadiaĀ® into its fleet, marking a new milestone in the companyās commitment to reducing the environmental impact of its operations.
š¤ The University of NebraskaāLincoln has officially launched NFarms (Nebraska Future Ag Research and Management Systems), a new precision agriculture initiative, during a groundbreaking ceremony held on August 14. The initiative seeks to enhance research and collaboration in agricultural technology, with a particular focus on public-private partnerships and fostering ag-focused entrepreneurship.
š° As CEA and vertical farming continue to expand in modern agriculture, a new $300,000 grant from the USDA-NIFA aims to improve hydroponic lettuce production. The grant supports research led by Kristen Gibson, director of the Arkansas Center for Food Safety and faculty member of the Arkansas Agricultural Experiment Station, focusing on enhancing food safety and plant health within hydroponic systems.
šÆšµ SVG Ventures | THRIVE and the Japan External Trade Organization (JETRO) have joined forces to launch āHarvest Horizons,ā a groundbreaking program designed to accelerate the globalization of Japanese agri-food tech startups. This initiative aims to equip participating companies with the essential tools, insights, and networks needed to thrive on the international stage.
š«š· Mickael Burban, a farmer from Noyal-Muzillac, integrated container-based hydroponic farming into his traditional livestock operations with support from SEPEC Consults to diversify and respond to climate challenges. The project, using reconditioned maritime containers and solar energy, has yielded positive early results with quick, high-quality harvests and low environmental impact.
š” The partnership between SpectraGrow and Harvest Today aims to address global food system challenges through technological integration, combining advanced LED systems with a modular Harvest Wall for scalable indoor farming. Their upgraded LED technology optimizes energy use, enhances crop yields, and supports local food production and urban farming. The partnership is committed to continuous improvement through user feedback and ongoing research and development.
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