The Harvest is a series covering insights, updates, and developments in agriculture.

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In today’s breakdown:

1. AgLaunch’s 2024 Cohort: 8 Startups Changing Farming

2. Agtech’s Evolution Needs a New Playbook for Capital

3. CoBank Predicts a Turbulent 2025 for U.S. Agriculture

4. A Smarter Way to Track Food: G+D’s New Smart Label

1. AgLaunch’s 2024 Cohort: 8 Startups Changing Farming

AgLaunch has selected eight startups for its AgLaunch365 Accelerator Program, a two-year initiative helping agricultural technologies get real-world testing and investment.

This year’s focus? Solving farming’s biggest challenges with tools like robots, CRISPR, and natural crop protection.

Why This Matters? Farmers are facing mounting pressure to produce more with fewer resources while navigating climate challenges. AgLaunch’s farmer-driven approach ensures these startups deliver practical, scalable solutions that make an immediate impact on farm operations while paving the way for a more resilient agricultural system.

Meet the Startups:

1. Barn Owl Precision Agriculture:

   Makers of the Autonomous Nano Tractor (ANT), a precision weeding robot designed to support small farmers. ANT offers year-round operational support, aiming to secure food supplies and combat climate change.

2. Barnwell Bio:

   An animal health platform powered by wastewater analysis. It identifies livestock health trends early, reducing mortality and increasing productivity.

3. BugBiome:

   Develops bioprotectants using plant microbiomes and insect behavior analysis. Their solutions prioritize safety for people and pollinators.

4. IngateyGen:

   Innovates peanut varieties with CRISPR technology, improving safety, nutrition, and consumer health benefits.

5. Kalix:

   Delivers rapid animal disease testing results in one hour, a massive improvement over the standard 5–7 days.

6. MicroMGx:

   Uses proprietary tech to discover novel chemicals from microbes. Their flagship product is a naturally derived herbicide with a new mechanism of action—the first in 35 years.

7. Mycologics:

   Offers a biofungicide manufacturing platform derived from microbial natural products, promoting sustainable crop protection.

8. Rogue.ai:

   Builds advanced spraying drones with hybrid-electric powertrains, cutting operational costs and boosting on-field productivity.

What’s next? The teams will pitch their innovations at the Top Producer Summit in Kansas City, gaining exposure to farmers, investors, and industry leaders.

2. Agtech’s Evolution Needs a New Playbook for Capital

Inspired by Mark S. Brooks’ recent insights on agtech capital models, here’s a take on why funding innovation in agriculture requires a long-term view.(more)

From "Caloricene" to "Holoagricene"

Agriculture has long been optimized for caloric efficiency, what Mark S. Brooks dubs the “Caloricene,” a food system focused on delivering calories at scale since the late 1800s. But the future demands more…

Enter the “Holoagricene,” where agriculture isn’t just about feeding people but also healing the planet. This next phase (Agtech 2.0) is driven by consumer demand for sustainable, nutrient-rich food, biotech breakthroughs, and generative AI.

Looking further ahead, Agtech 3.0, the “Biointicene”, envisions living ecosystems that proactively enhance the environment while producing food. But to get there, innovation needs funding, and the traditional venture capital (VC) model isn’t cutting it.

Is VC the answer? VC thrives on fast exits and high-growth tech startups, think Apple or Uber. Agtech, on the other hand, requires patience. It’s slow to scale, has longer exit timelines, and typically lower valuations.

The result? A mismatch between agriculture’s needs and VC’s expectations.

Mergers and acquisitions (M&A), a key pathway for scaling startups, have also slowed. Corporate ag players, constrained by tough financial conditions, aren’t acquiring at the pace needed to sustain innovation.

The New Capital Stack: Funding Agtech’s Future

1. Sustainability Funds: Climate-focused funds prioritize impact alongside returns, offering agtech a lifeline for systemic change without chasing quick exits.

2. Corporate Venture Capital (CVC): Agrifood giants are leveraging their market power and R&D to align strategically with startups, mirroring the pharmaceutical model of outsourcing innovation.

3. Private Equity (PE): PE firms are stepping in with roll-up strategies, optimizing multiple companies for scale and profitability.

4. Evergreen Capital: Long-term, open-ended funds recycle returns into future breakthroughs, providing the patience required to build transformative systems like the Holoagricene.

What’s next? For now, high interest rates and tight credit markets are narrowing funding to startups with proven commercial traction. But as rates drop and exits return, the focus must shift to building the right capital stack to fund Agtech 2.0 and beyond.

3. CoBank Predicts a Turbulent 2025 for U.S. Agriculture

CoBank's “2025 Year Ahead” report outlines a volatile year ahead for the U.S. agricultural economy, driven by policy uncertainty, global competition, and market dynamics.

Policy Shifts and Trade Challenges

• Trade Wars and Labor Shortages: Potential trade conflicts and reduced immigration could disrupt key agricultural sectors like dairy, meatpacking, and produce. Trade tensions with Mexico, Canada, and China, together accounting for over half of U.S. ag exports, pose significant risks.

• Export Competition: Strengthening currencies in export markets, coupled with record South American crop outputs, could weaken U.S. grain and oilseed exports. Countries like Brazil and Russia are expected to increase their competitive edge.

Biofuels Sector Under Pressure

• Regulatory uncertainty and short-term tax incentives are slowing biofuel growth. While global demand for renewable fuels is rising, challenges include limited domestic production capacity, tariff risks, and competition from countries like Brazil and China.

• California’s restrictions on vegetable oil feedstocks and delays in federal guidance further complicate the outlook for sustainable aviation fuel (SAF) and biodiesel production.

Livestock Outlook Brightens Amid Lower Feed Costs

• Declining feed prices are renewing interest in animal protein production, though high costs for labor, construction, and equipment remain barriers.

• U.S. beef herd expansion is unlikely until 2026-2027, supporting higher cattle prices. Strong export demand for pork and poultry, particularly to Mexico, underscores the importance of maintaining good trade relations.

Economic Uncertainty Looms

• The U.S. dollar's strength, paired with weakening currencies in key export markets, could reduce global demand for U.S. agricultural goods.

• Policy shifts under the new administration may exacerbate challenges, particularly for export access and labor availability.

Takeaway. With a mix of headwinds and opportunities, U.S. agriculture faces a critical year of navigating policy shifts, global competition, and evolving market demands.

4. A Smarter Way to Track Food: G+D’s New Smart Label

Global security tech leader Giesecke+Devrient (G+D) has unveiled a groundbreaking smart label, designed to enhance traceability and quality monitoring in agricultural supply chains. As food recalls rise and regulatory demands tighten, this innovation aims to simplify how food producers and distributors ensure product safety and quality.

What is it? The G+D Smart Label is a sticker slightly larger than a credit card that transforms any package into an Internet of Things (IoT) device. Equipped with high-tech sensors, it monitors:

• Temperature fluctuations

• Motion during transit

• Tampering detection

This real-time data enables stakeholders to identify and address issues like spoilage, mishandling, or contamination quickly.

Key Benefits for Agriculture

• Enhanced Traceability: As the FDA’s 2026 traceability regulations loom, the smart label offers a solution for faster identification of contaminated products, helping to meet compliance requirements.

• Real-Time Monitoring: Producers can track temperature changes during transport, ensuring perishable goods like fruits and vegetables maintain quality.

• Cost-Effectiveness: Unlike reusable IoT devices that require return logistics, these single-use labels eliminate added complexities.

How it works? The peel-and-stick label includes a non-rechargeable battery with a 90-day lifespan. It reports data in real-time, providing automated proof of delivery and actionable insights into the supply chain.

For example, if a shipment of produce experiences a temperature spike, the label records and transmits this data immediately, allowing companies to respond proactively.

Why it stands out. According to Sharath Muddaiah, G+D’s Head of Portfolio Strategy for IoT Solutions, simplicity is the key advantage. Unlike competitors that require separate providers for IoT hardware, connectivity, and software, G+D offers an all-in-one solution.

Other smart label technologies, like RFID, have gained traction in the food industry but face challenges such as recyclability and high costs. G+D’s smart label overcomes these barriers by offering:

• A slim, lightweight design.

• A single-use model that avoids return logistics.

• A competitive price of $59 per label, making it more accessible for industries with tight margins.

Broader Implications for Food Supply Chains

The introduction of G+D’s smart label aligns with growing trends in supply chain transparency. As more than half of the top 27 food service companies explore RFID and similar technologies, the demand for cost-efficient, scalable IoT solutions continues to grow.

However, challenges remain. While G+D’s labels address issues like shelf life and complexity, their single-use nature may raise concerns about sustainability.