Many of us think of agtech and innovation as the high flying technical and computerised solution to the jobs farmers have to do everyday. In a way, we are correct. However, for the last 100 years we have seen companies and processes that were once an agtech start-up become a device or machine used routinely on the farm. Think of processes like pasteurising, combining, driving tractors etc.

While the opportunity for on-farm investment at current beef prices is beyond many suckler farmers, some are still investing in this technology because it solves a problem or makes the job easier. Dairy farmers are also investing with technology in the milking process that makes the monitoring and use of the information gathered every day easier and more user friendly to the farmer.

The dilemma for many start-up agtech companies is exactly the same as start -up farms, especially dairy farms, in that they have to make a lot of investment at the start of the business when there is little or no cash flow. These companies need to invest in the product, in staff, in after sales services alongside marketing and promotion so that customers know their product exists. For many Irish companies, the challenge often lies in attracting customers across the globe, not just on the island of Ireland.

Funding

As you can see in the article on page 46, there are a range of funding options available to start-up businesses or farmers that have an idea, depending on what stage the idea is at. For the early stage entrepreneur, the LEO, as mentioned, is a good place to begin, but Micro Finance Ireland, credit unions, peer-to-peer finance, business angels (HBAN), bank debt and, in certain circumstances, venture capital, can all play a role.

For start-up businesses, the age old advice still stands - start with the customer and understand what they want. For farmers considering making and investment in the challenging times that we operate in, some, but certainly not all of the answers, may be found through the wider application of agtech.

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Agtech: the past, the present and the potential

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