Agtech holds immense potential to increase food production in the face of global megatrends. It offers solutions that can boost yields and optimise resource use, while also reducing the environmental impact of farming. Yet, the widespread adoption of these transformative technologies remains hindered by various obstacles.
This blog explores the key barriers to adopting agtech, alongside the potential pathways to accelerating the integration of these tools.
The high initial investment costs of many agtech solutions remain a significant barrier to adoption, particularly for small and medium-sized farms. Investing in the latest precision farming robots, autonomous tractors or drones – which contain highly sophisticated electronic components, like sensors, and integrated software – often requires a substantial capital outlay, which many farmers may struggle to find.
However, there are ways that farmers can overcome these cost hurdles. Purchasing second-hand or refurbished equipment can provide a more affordable entry point, allowing farmers to test and scale up these technologies gradually.
Additionally, equipment leasing and ‘agtech-as-a-service’ models (where farmers don’t pay the upfront cost for equipment but pay a subscription for services instead) are becoming more common, allowing farmers to access the latest innovations without the high costs.
Importantly, farmers must also weigh the long-term operational savings that agtech can deliver against the initial costs. By increasing yields, optimising inputs and reducing labour requirements, these technologies can provide an attractive return on investment over time.
The lack of reliable high-speed internet and cellular coverage in many rural areas remains a challenge for the wider adoption of agtech. Without consistent connectivity, farmers are unable to fully exploit the data-driven agtech solutions that rely on real-time information and remote monitoring capabilities.
To overcome this obstacle, farmers are increasingly exploring alternative connectivity options. The growth of satellite-based internet services provides a viable solution for areas with limited terrestrial coverage. Additionally, some farmers are investing in their own private wireless networks, using technologies like LoRaWAN to create dedicated connectivity for their operations.
Furthermore, governments and telecom providers are recognising the need to improve rural connectivity and are investing in infrastructure upgrades. Initiatives such as the UK’s £5 billion Project Gigabit aim to bring high-speed broadband to the most hard-to-reach areas, which will significantly enhance the feasibility of adopting agtech solutions.
The complexity and steep learning curve associated with agtech equipment can present a barrier to adoption. This is likely to be particularly the case for older or less tech-savvy farmers who are perhaps more comfortable with traditional, tried-and-tested mechanical equipment. Setting up and operating advanced precision farming tools, autonomous equipment or data analytics platforms can be a daunting task, requiring significant time and effort to master.
To address this challenge, agtech providers are increasingly focused on improving the user experience and intuitiveness of their products. The development of more intuitive interfaces, guided setup processes and comprehensive training resources can greatly simplify the adoption process for farmers.
Plus, farmer-to-farmer knowledge sharing and peer-to-peer support networks can be invaluable in overcoming the learning curve associated with agtech. Fostering a collaborative environment in this way means that farmers can learn from each other’s experiences and develop strategies for successfully integrating these technologies into their operations.
The difficulty in integrating agtech into a farmer’s existing infrastructure presents another challenge. Farmers often find themselves having to navigate a fragmented range of agtech solutions, each with its own data formats, communication protocols and compatibility requirements. This makes it difficult to achieve a cohesive and efficient digital ecosystem on the farm.
To overcome this hurdle, the industry is increasingly moving towards the development of open standards and open-source platforms that promote greater integration. Farmers can also explore solutions that offer plug-and-play integration, allowing them to easily connect new agtech tools with their existing infrastructure. For example, Sabanto’s Steward system adapts a traditional tractor to operate autonomously.
Additionally, the rise of cloud-based platforms and data exchange initiatives can help bridge the gap between different systems, enabling farmers to incorporate a diverse range of agtech solutions.
Resistance from farming communities is another common barrier to the wider adoption of agtech. Many people, particularly in Europe, remain wary of automation and the change that it can bring.
This resistance is often rooted in a combination of factors, including concerns about job losses, a cultural attachment to traditional farming methods and the economic pressures faced by farmers (such as high energy costs, low prices for crops and low-cost imports). Also, the rise of nationalism in regions like the UK and France has fuelled a desire to protect domestic jobs. The outcome is that there have been protests against the perceived threat of automation.
To address this challenge, a ‘just transition’ approach is crucial, similar to the environmental transition towards net zero. Agtech providers and policymakers must work collaboratively with farming communities to ensure that the benefits of these technologies are equitably distributed and the needs of workers and small-scale farmers are adequately considered.
This could involve investing in training programmes to help farmers adapt to new technologies, providing financial support and incentives for small-scale farms to adopt agtech, and fostering greater transparency and dialogue between industry, government and farming communities. By prioritising the human element of this technological transformation, a more inclusive and sustainable adoption of agtech can be achieved.
Finally, the slowdown in recent years of funding for agtech start-ups is also proving to be a barrier to getting more innovative technologies out to the widest possible audience. For example, according to AgFunder, global investment declined by 44% after 2021, to $29.6 billion in 2022 – although it’s notable that there was a rebound in Q3 2023 as agtech funding deal values increased by 19%.
As venture capital and investment flows have contracted, many promising agtech companies have struggled to secure the necessary funds to develop, scale and commercialise their solutions.
McKinsey suggest that the solution could lie in closer collaboration with U/X and value engineering experts:
“We often observe that start-ups, especially in digital and precision agriculture, have compelling products but struggle with monetization because of user behaviour or value chain challenges. There are instances when companies have run out of runway, but it is possible to relatively quickly fine-tune the offering and pivot the business and pricing models to create a quick-win opportunity.”
Additionally, initiatives that promote greater transparency and better communication between agtech innovators, investors and farmers can help to build trust and unlock new sources of funding. By taking a proactive approach to overcoming the funding hurdle, the agtech industry can ensure a steady pipeline of new solutions that can drive the sector’s transformation.
The path to wider adoption of agtech requires a multifaceted approach that addresses the key barriers head-on. By prioritising cost-effective solutions, improving rural connectivity, enhancing user-friendliness and fostering inclusive transitions, the industry can unlock the full potential of these innovations.
Also, through design and development partnerships that leverage specialised expertise in aspects such as the miniaturisation and ruggedisation of sensor technology, agtech can reach new levels of accessibility and reliability. Plus, by embracing the global market along with a collaborative mindset, the sector can accelerate the adoption of agtech and drive the agricultural revolution forward.