{"id":460,"date":"2022-06-23T07:22:50","date_gmt":"2022-06-23T07:22:50","guid":{"rendered":"https:\/\/bravantefarmcapital.com\/?page_id=460"},"modified":"2022-06-23T23:12:08","modified_gmt":"2022-06-23T23:12:08","slug":"agtech-and-farmland-investing","status":"publish","type":"page","link":"https:\/\/bravantefarmcapital.com\/education\/agtech-and-farmland-investing\/","title":{"rendered":"5 AgTech Innovations Increasing the Value of Farmland Investments"},"content":{"rendered":"\n
As the global population continues to grow, and as per capita income rises globally, the availability of high-quality food has increasingly attracted the attention of investors. The amount of arable land is limited, putting more pressure on each individual acre of farmland. In turn, farmland operators are increasingly looking for ways to optimize their businesses to extract the most value out of their land. AgTech solutions are helping them achieve their goals.<\/p>\n
AgTech, short for “agricultural technology,” represents the hardware and software innovations being developed to improve farm productivity. This includes tools that help boost crop yields as well as programs and devices that improve farmland operations.<\/p>\n
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AgTech is still relatively new. It has not received the same media attention as “PropTech,” “CleanTech,” “FinTech,” or other industry-disrupting solutions. Prior to 2012, there had been very little venture capital investment in AgTech innovations.<\/p>\n
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That has started to change, especially with more institutional investors looking to buy farmland. Institutional investors are bringing more sophistication to the industry and in turn, are willing to experiment with AgTech innovations that help boost their returns.<\/p>\n
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In 2021, VC-backed AgTech startups closed more than 440 funding deals totaling more than $5 billion. This is up from $3.3 billion in 2020. VC investment<\/a> in AgTech is off to a strong start in 2022, as well. AgTech companies have secured more than $1 billion in VC investments in the first two months of this year alone.<\/p>\n\t Sign up to our educational newsletter and be among the first to learn of our investment opportunities.<\/em><\/p>\n\t\t\t\n\t\t\t\t\t\t\tLEARN MORE\n\t\t\t\t\t<\/a>\n\t\t\t\n Farmland is an industry that, by and large, has not evolved in decades. Most operators are still running their businesses just as they always have, which is just as their families did in generations past. However, as farmers age and begin to sell their farms, there is a new breed of operators who see the value that AgTech brings to the table. Bravante Farm Capital is one of them.<\/p>\n AgTech innovations are valuable for several reasons.<\/p>\n <\/p>\n First, AgTech can be used to inform decision-making. Farmers can utilize data to make better decisions based upon what will drive a farm’s productivity and enhance returns.<\/p>\n <\/p>\n AgTech can also be used to help reduce the negative environmental impacts associated with crop production. AgTech solutions can help optimize water, chemical and land use which in turn, leads to more sustainable crop production.<\/p>\n <\/p>\n Finally, farmland is a finite resource. Farmland operators will need to maximize the value and productive capacity of arable land in order to keep pace with demand as global consumption rises.<\/p>\n New AgTech innovations are being developed on a daily basis. Below is a look at the top five innovations that are having an impact on farmland today.<\/p>\n A farmer is inherently limited with what he can see at the ground level. Satellites, especially those that utilize infrared technology, provide an entirely different view. Satellite imagery, while not new in concept, is significantly more advanced today than in decades past. Images are clearer and provide more compelling data for farmers. This data can now be integrated into the other AgTech innovations being utilized on a farm.<\/p>\n <\/p>\n The advantage of using satellite imagery is that it provides a big-picture view of what is happening on the ground. The images can cover a large area in a short time, allowing farmers to compare what is happening at one end of the farm vs. the other.<\/p>\n <\/p>\n Satellite imagery can be used for a host of purposes, from evaluating land prior to acquisition to crop site suitability. It can be used to monitor crop health, predict yields, and estimate crop production by acre. At a more granular level, satellite imagery can be used to detect weeds and\/or pests. This data can be used to dispense herbicides and\/or fertilizer automatically and more precisely. In turn, this optimizes chemical utilization and overall productivity.<\/p>\n <\/p>\n\n\t\tWhy is AgTech Important to the Future of Farmland?\n\t<\/h2>\n\t
\n\t\tTop AgTech Innovations Impacting Farmland Investments in 2022\n\t<\/h2>\n\t
\n\t\tSatellite Imagery\n\t<\/h3>\n\t