AgriTech Startups – Challenges, Solutions, Trends, and Future

Sreekanth Reddy Pothula
Published 12/02/2022
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Challenges and solutions for AgTech startupsThe growing population increases global food consumption on a large scale, while automation in the 20th century allowed farms to operate more efficiently with fewer human resources. But with available land declining, the traditional ways hardly meet that production demand. Utilizing contemporary technology to change agriculture is a strategy to move beyond obstacles with a higher success rate.

Technological developments in AgriTech startup systems offer a remarkable opportunity to drive progress within the conventional industry. Using artificial intelligence, robotics, sensors, the internet of things, biological technology, and advanced hydroponics research to solve the challenges faced. This exciting ecosystem of AgriTech startups helps to prepare the world of tomorrow effectively.

The main aim of an AgriTech startup presence in key sub-sectors such as:

Sub-Sectors Key Areas for AgriTech Startups
Farm Data and Analytics – Farm Mapping
– Software Platforms
– Farm Management Solutions
– Remote Sensing
– Field Operations
– Integrated Platform
Finance – Lending
– Payments
– Revenue Sharing
Information Platform – Information Dissemination
Infrastructure – Aquaponics
– Drip Irrigation
– Growing Systems & Components
– Hydroponics
Supply Chain – Marketplace
– E-Distributor
– Listing Platform


AgriTech Startup Challenges and Their Possible Solutions


Scarcity of Capital

Like any other business, an AgriTech startup requires capital to sustain itself. The key responsibility of capital is becoming more and more vital with the advancement of farm technology and operations. As startup capital is locked up in equipment, lands, or stocks, the venture is compelled to borrow more financial capital to restore the tempo of agricultural production.



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To avoid debt and keep the startup going,

  • Find trusted investors,
  • Governmental grants,
  • Avoid traders and commission agents who charge high rates of interest,
  • Bank loans to AgriTech farmers on easy terms.


Restricted Local and International Government Policies

Although governments at local and global scales made an easy shift in policies related to AgriTech startup contrast on a ground level, there’s a long way to go for agripreneur. While a few policies help AgriTech startups sustain themselves for a limited time, nothing converges at the farm level.

To defeat this, governments around the world need to provide:

  • Startup-friendly policies,
  • Encouraging environment,
  • Invest in farm productivity,
  • Stay fair against global economic factors,
  • Inspire future farmers by providing ease in agriculture products.


Limited Use of Technology

With the agricultural revolution and ever-changing technological developments, the skills needed to use them are more important than ever.

It is essential for everyone involved in the business to have the know-how and understand the usage of modern AgriTech business tools. To increase overall profitability, AgriTech helps farmers produce sufficient and high-quality produce in a limited time, which is highly regarded in the markets.

Organizing educational training sessions improves everyone involved in AgriTech and enables them to stay current with cutting-edge agricultural research and development.


Tech Innovation Trends in AgriTech Startup

Tech Trends Features
Artificial Intelligence Provides predictive insights for weather data, crop output, and price predictions, permitting farmers to make more informed decisions.
Drones & Sensors Allocate airborne imaging and surveying of landscapes. Mostly utilized for geofencing, grazing monitoring, and livestock tracking using GPS technology.
Big Data & Analytics Helps in discovering patterns and linkages with analytical tools which collect details relevant to farm operations and help to discover undetected patterns and linkages.
Modern Greenhouses Automated control systems to exactly modify the growing environment.
Livestock Farming Technology Associated with managing dairy farms, cattle ranches, and other livestock-related agribusinesses.
Internet of Things (IoT) Helps manage tasks, including temperature management and humidity detection, while collecting data and delivering precise details in real time via mobile apps or other means.
Robotics Assist in automating monotonous labor tasks such as harvesting, fruit picking, planting, spraying, seeding, and weeding.


Future of AgriTech Startups

A new wave of agripreneur and AgriTech startups is leading the way in disrupting the traditional agricultural system with creative ideas and affordable results. These startups claim to be the missing connection between input dealers, retailers, farmers, wholesalers, and consumers, binding each of them to each other, bridging the gap, and delivering strong marketing linkages and quality produce on time.

According to Statista, the market size for AgriTech is estimated to be more than $3 billion in 2025. AgriTech is driven by constant enhancements in digital devices and data, as well as alliances among farmers and researchers across the sectors.

One of the key objectives of AgriTech startup investors is to create a sustainable AgriTech system that provides affordable, nutritious food with working production channels. This industry expertly transforms technologies to improve and maximize yield while saving water, all without disturbing the soil.

We will likely see changes and integration in supply chain technology solutions that diversify; the result would be an array of products for rapid soil testing, evaluation of harvest schedules, quality analysis, accurate detection of crop signatures, crop yield estimation, etc. AgriTech startups will continue to drive innovation, benefiting farmers and consumers.


Discover More About AgriTech Startups

AgriTech startups demonstrated to ease the effort involved in farming and related operations. The rate of higher investments only proves the upward track in AgriTech startup development.

While these technologies play a major role in developing the agricultural industry, some only represent the tip of the iceberg. To explore more AgriTech startup scenarios, get in touch to let us look into your areas of interest and enhance strategic decision-making.


About the Writer

Sreekanth headshotBusiness Technology Leader with 15 plus years of experience in Digital Transformation, Designing Enterprise Business applications to support Commercial and Corporate operations through driving process optimization and system enhancements that fully leverage the power of ERP applications and enable them with improved reporting capabilities.

Sreekanth’s passion is to explore and leverage FinTech and Digital Technologies – Artificial Intelligence, Blockchain, Data Analytics, IoT, etc. in Agriculture to build robust and large-scale Agri-Technology products to de-risking agriculture for Farmers. He currently lives in the United States for the last 10+ years working for a large FinTech/Payments company in the World, and he is an IEEE Senior Member.

Disclaimer: The author is completely responsible for the content of this article. The opinions expressed are their own and do not represent IEEE’s position nor that of the Computer Society nor its Leadership.