Amanda KristolToo many investors and founders should be paying attention to this crucial issue as agriculture technology firms develop. There is considerably more at risk than immediately apparent in agriculture, which is not just another sector.
Betting the farm is a real phrase. Farmers carry out this activity every year. When a farmer invests in new technology, such as a self-propelled tractor or a new irrigation system. He frequently puts his entire farm on the line. Failure of the technology could lead to financial disaster.
By 2050, we must double the world’s food output to feed an expanding population. But we are unable to double the agricultural land. We require more food per acre (or more high-quality calories and nutrients). That’s where technology is used
There is occasionally a startling gap between Silicon Valley standards and the (as of yet) unbreakable rules of nature as a scientist and CEO work with growers to guarantee technology offers real benefits. To promote innovation and give farmers access to practical solutions, funders and innovators must comprehend the following five truths.
1. Farmers can’t afford to fail quickly
Consumer tech businesses have embraced the lean startup model, which emphasizes rapid experimentation in the quest to discover “what sticks.” However, consumers of tech don’t have such an option. A farmer won’t be able to assess the worth of new technology until after a full season of use, in addition to the inherent hazards of “wagering on the farm.” An entire harvest can suffer from a broken device or a product update in the middle of the season. This means that before releasing new products on the market, technology must be improved.
For businesses used to MVPs and gradual updates, that’s a significant change. It entails consulting with farmers ahead of time to determine what is required and properly test new tools. Updates require improvement, but they are fantastic. To avoid interfering with the growing season, my company, for instance, reserves new gear and releases for the fall and winter.
2. There should be more to ag assistance than a chatbot
Many tech companies are automating customer service to quickly and cheaply handle problems. Chatbots and email tickets don’t always work in agtech, though.
The task of troubleshooting hundreds or perhaps thousands of sensors, monitors, automation, and other systems is too much for farmers. They urgently require human assistance. A crop can suffer irreparable harm from even a brief delay. Agtech as a service, complete with on-the-ground assistance, is essential for this reason.
Farmers are aware that technology can malfunction or break down from time to time. But when things don’t work out, they anticipate you to appear (often in person).
3. The growth curve in agriculture is distinct
Investors in agriculture who were expecting the same kind of hockey stick growth seen in other tech industries will be dissatisfied. Given the incredibly high risks, farmers are typically careful about new products. You can start to appreciate the effects of each choice by imagining being paid 50 times throughout your career rather than 50 times annually, as a farmer friend recently suggested.
Growers won’t purchase a new device just because it has hundreds of favorable online evaluations. They are awaiting reports from the field and word of mouth. Your best marketing weapon is a trusted supplier network, conference calls, friends, and neighbors.
However, once valuable technology is developed, it might shoot off like a rocket. Combine harvesters and other heavy equipment should have GPS and mapping tools. The technology was mainly viewed as unneeded when it was developed 20 years ago. Nowadays, it is uncommon for a farmer to not employ mapping technology.
4. A farm cannot be A/B tested (yet)
The technology operates in a world with simple cost-benefit analyses, easily isolated variables, and well-defined pain points. That is not how farms operate.
A social networking site like Instagram can change its algorithm and directly correlate changes to usage and earnings. Like people, plants are more complex. Was the record harvest of the previous year a result of the brand-new laser scarecrows? the unusually warm spring? Maybe it was the extra week of rain.
Tracing cause and effect on a farm is still an ambitious goal. But as we gather more data, we grow better at differentiating signal from noise. Similarly to that, it’s a difficult question to answer when investors want me to specify how much our services are worth to users. We know it will be valuable when farmers begin using our platform and gladly join up the next year to develop corporately. It’s not always simple to calculate the precise financial amount.
5. Farmers desire modern technology (but it has to work)
The notion that farmers are somehow outmoded ignores the fact that agriculture has advanced since the invention of the plow. Particularly this generation of farmers has ridden the waves of innovation and change, including bioinformatics, robotics, and automation. For the upcoming big thing, they are prepared and waiting.
Growers, however, are not inherently preoccupied with technology. They don’t desire the newest technology. They seek outcomes. Farmers recognize that the road forward lies in doing more with less, which is where agtech comes in because we’ve hit the limitations of what scale technology – like bigger combine harvesters and animal confinement – can accomplish. Agtech businesses must recognize how educated and discriminating their customers are.
Bridging the divide
- How therefore can we reconcile the standards of the technology sector with the realities of agriculture?
- Farmers should be enlisted by investors and founders as allies and consultants in the creation of new products.
- New paths for innovation will be made possible by these connections.
- To get to the future of agriculture we must respect agriculture’s cyclical nature.
- Grow familiar with new uncertainties, forge genuine connections, and identify field-tested business models and measurements.
Also read – https://blog360plus.com/2022/12/13/things-to-consid…-business-abroad/