Over the past year, there has been a dramatic increase in investments in Ag Tech start-ups according to Reuters. In 2015, these investments increased by nearly $2.3 billion compared to 2014. Interestingly, these investments come as projected farm yields and income are expected to decline. Major companies in the Agricultural industry, such as Deere & Co. and Monsanto, are considering layoffs due to decreasing sales.
The article pointed out specifically that drones and robotics saw an increase in investments over the past year. Farmers are considering crop-scouting drones to pinpoint the most lucrative farming locations. In the coming years, more farmers are expected to use precision agricultural software in order to increase crop yields and ultimately profits. The article concludes by stating that “climate change, sustainable farming, and soil health” drove increased investment in the industry over the past year.
For our group project, we are considering looking at issues related to soil depletion and potential food scarcity concerns in the US. Companies in the Agricultural industry would not be seeking investors for new and untested technology if there was not a need to increase, or at a minimum maintain, crop yields.
http://www.reuters.com/article/us-agriculture-tech-investment-idUSKCN0VQ2TV