5 Things Caledonia Wants AgTech Investors to Know

Joanna SchroederAgribusiness, Data, Research, technology

Caledonia Solutions logoThere are five things Caledonia Solutions wants Agtech investors to know during this time of low commodity prices. The organization says that during down times, more growers stay away from making precision ag investments. However, this is contrary to what growers should actually do.

“Growers with cash find now is the time to be a contrarian and invest in ag technology that will reduce costs, boost yields and add to profitability,” says Dr. Robert Hill, with Caledonia Solutions.

How does he know he is correct? The company recently conducted research using a 300 Midwest growers detailing their activities related to precision agriculture during down times. Using the results of the research, Hill gives the industry five nuggets of advice.

  1. Growers have objectives for engaging with new farm technologies, and these differ by specific technology and practice. Investors need to understand what the specific objective is for the technology they are designing or selling if they want to be successful with their product.
  2. Some technologies today are naturally grouped together by growers. Investors might have opportunities to leverage their offering by cooperating with other technology vendors if they understand how growers are viewing their group.
  3. Today’s market for farm technologies is very dynamic with opportunities in both data collection and analysis. Some technology practices are beginning to slow in their adoption as they reach near-saturation in usage. Others will expand usage aggressively in the near future. Forecast sales and allocate resources using up-to-date and accurate information on these dynamics.
  4. Technologies in early adoption phases among growers have had varied quality of performance. Some have mainly exceeded expectations. While others have mainly fallen short. Know what mistakes other vendors and start-ups have made and prepare your company to avoid those same mistakes.
  5. If investors target the wrong growers they could be in for a long wait on returns. Know the characteristics of the high-adopters and approach the market armed with this key information.

To learn more about the study, that included 34 farm technologies and practices, click here.