AGTECH GO TO MARKET: A CRASH COURSE INTRO

Oct 4, 2024

Agtech Go To Market: A Crash Course Intro

Want to break into the booming agtech market? Here's what you need to know:

Agtech market value: $24.08 billion in 2024, expected to hit $40 billion by 2030
Key trends: AI/ML, digital twins, regenerative agriculture, cloud solutions
Challenges: funding, regulations, farmer adoption, outdated farm systems

To succeed in agtech:

Understand your farmer customers
Create a solid go-to-market plan
Test product-market fit
Choose the right sales channels
Set smart pricing
Market effectively to farmers
Improve sales techniques
Build industry partnerships
Measure success with data
Follow agtech regulations
Plan for growth and quality
Stay on top of future trends

Remember: Solve real farm problems, show clear ROI, and be patient. Agtech success takes time but can pay off big.

Key Strategy

Why It Matters

Know your farmer

Tailor solutions to real needs

Prove your worth

Show clear ROI for adoption

Pick your niche

Focus on solving one problem well

Test and adapt

Use early farmer feedback

Build trust

Partner with respected ag names

Current Agtech Market

The Agtech market is on fire. It's worth $24.08 billion globally in 2024. And it's not slowing down. By 2030, it's expected to hit $40 billion.

Major Players and What's Hot

Big names are making waves:

Indigo Agriculture: Mixes science and tech to help farmers and companies go green.
Green Plains: Creates sustainable ingredients using Agtech and IT.
Sensei Ag: Leads the charge in tech-driven sustainable farming.

What's trending?

1. AI and Machine Learning

Machine learning grabbed 50% of revenue in 2023. It's making farming more precise. Gen AI is cutting costs and improving models.

2. Digital Twins

Virtual field tests are saving big bucks on real-world trials.

3. Regenerative Agriculture

Tech is helping boost soil health and crop yields sustainably.

4. Cloud Solutions

Farms are drowning in data. Cloud tech is here to help. By 2036, we'll see 800% more farm data.

Startup Struggles

Agtech startups face some tough challenges:

Challenge

What's the Deal?

Cash

VC money dropped 60% since late 2021

Rules

Dealing with complex data and tech laws

Breaking In

Winning over farmers who stick to what they know

Old Tech

Outdated farm systems make new tech hard to use

Slow Adoption

Teaching old dogs new tricks isn't easy

To win, startups should:

Solve specific farm problems
Team up with big players for insider knowledge
Go green to attract eco-friendly investors and buyers

John Hartnett, SVG Ventures CEO, says:

"Innovation in agriculture and food technology has never been more critical, and the companies featured in this year's THRIVE Top 50 are at the forefront of driving that change."

The future's bright for startups that can tackle these issues and ride the trends.

2. Creating a Go-To-Market Plan

A solid go-to-market plan can make or break your Agtech venture. Here's what you need to know:

2.1 Choosing Target Markets

Don't try to be everything to everyone. Focus on specific farm segments:

Farm Type

Needs

Small-scale

Cheap, versatile tools

Large-scale

Tough, GPS-enabled gear

Cooperatives

Bulk buys, shared tools

Pro tip: Start small. Nail one market before you branch out.

2.2 Defining Product Value

Show farmers exactly how you'll make their lives easier:

Cut costs
Boost output
Go green

Take FarmersBusinessNetwork (FBN). They let farmers compare prices and performance data. Simple, clear value. Result? Thousands of members.

2.3 Product Placement

Get your product seen:

Team up with local dealers for demos
Hit the big farm shows
Get online (social media, ag forums)

"Success in ag-inputs? Know your customers, make stuff they actually need, and sell it smart." - Jan-Frederik Jerratsch, BCG Principal

Remember: Farmers can be slow to adopt new tech. Be patient and build trust with your early fans.

3. Understanding Agtech Customers

3.1 Types of Farm Customers

Agtech companies need to know their customers. Here's a quick look:

Farm Type

Key Facts

What They Want

Smallholders

80% of farmers, 30-34% of global food

Cheap, easy tech with clear benefits

Large-scale

5,000+ acres, 81% use agtech

Big, powerful solutions

Medium-scale

2,000-5,000 acres, 76% use agtech

Good tech at a good price

Small-scale

Under 2,000 acres, 36% use agtech

Simple, cheap tools

3.2 Meeting Customer Needs

Different farms, different problems:

Smallholders (often in Africa, Asia, Latin America): Need tech + money + training.
Big farms: Want efficiency boosters. North America loves farm-management software.
Brazil's farmers: Big on biologicals (55%) and low-till farming (83%).

How to win? Tailor your solutions:

Fix real problems: Farmers worry about costs, weather, and rules. Focus there.
Show the money: North American farmers say tech is too pricey (52%) and benefits aren't clear (40%). Prove your worth.
Keep it simple: 32% of European farmers say tech is too complex. Make it easy.
Flex your options: Offer different levels for all farm sizes. SunCulture's "Pay-As-You-Grow" for solar irrigation is a good example.
Know the area: North Carolina grows sweet potatoes. Washington? Apples and cherries.

"Farmers face big challenges: higher prices, crazy weather, changing shoppers, and new rules." - David Fiocco, McKinsey Partner

Bottom line: Agtech isn't one-size-fits-all. Listen, adapt, and solve real problems to win in this tricky market.

4. Testing Product-Market Fit

4.1 Product Testing Methods

Want your agtech product to succeed? Test it on real farms. Here's how:

1. On-farm trials

Set up tests on actual farms. Pick a clear question like "Does our new seed boost corn yields?" Use a control group, randomize tests, and keep other farming practices consistent.

2. Use precision tech

GPS and yield monitors make testing more accurate. You can collect data fast, often right after harvest.

3. Work with different farm types

Test on small (under 2,000 acres), medium (2,000-5,000 acres), and large (5,000+ acres) farms. Cover all your bases.

4.2 Using Customer Feedback

Farmer input is GOLD. Here's how to mine it:

1. Gather feedback smartly

Use surveys, interviews, and focus groups. Talk to farmers, farm managers, and advisors. Pro tip: Late afternoons or evenings often work best for farmers.

2. Act on what you learn

Update your product based on farmer needs. Fix issues fast to show you're listening.

3. Keep checking in

Use Net Promoter Score (NPS) to track satisfaction. Aim for an NPS of at least 50.

Here's a real-world example:

Superhuman, an email app, used the "very disappointed" test. At first, only 22% of users said they'd be upset if the app shut down. After improving based on feedback, this jumped to 58% before launch.

Remember: In agtech, your product is only as good as farmers say it is. So test, listen, and improve. Rinse and repeat.

5. Choosing Sales Channels

5.1 Old vs. New Sales Methods

Agtech sales are changing. Let's look at old and new ways:

Traditional Methods

Modern Methods

Equipment dealerships

E-commerce platforms

Face-to-face sales

Social media marketing

Trade shows

Online marketplaces

Print catalogs

Digital product demos

Word-of-mouth referrals

Influencer partnerships

Old methods still work, but digital channels are growing fast. In fact, a recent survey found that 100% of consumers preferred buying ag products online from supermarkets or convenience stores.

5.2 Picking the Right Sales Mix

How do you choose the best sales channels for your agtech product? Here's a quick guide:

1. Know your customers

Who's buying? Small farms (under 2,000 acres) or big operations (5,000+ acres)? This matters for your channel choice.

2. Consider your product

Is it simple or complex? Complex products might need direct sales to explain them properly.

3. Evaluate resources

Got the team and budget for direct sales? If not, indirect channels might be your best bet.

4. Test and adapt

Start small, then grow. Climate, an agtech company, first used crop insurance channels for Climate Pro. They later switched to retail to reach more customers.

5. Mix it up

Many successful companies use both direct and indirect channels. Microsoft, for example, gets 95% of its revenue from channel partners.

Your sales channel choice can make or break your agtech business. As Shane Thomas, an Agribusiness Analyst, says:

"Peter Thiel's assertion that superior sales and distribution alone can establish market dominance underscores the pivotal role of distribution in company success."

Choose wisely, and be ready to change with the market.

6. Setting Agtech Prices

6.1 What Affects Pricing

Pricing your agtech product right is crucial. Here's what to consider:

Production costs: Figure out your break-even price. Include fixed costs (rent, salaries) and variable costs (materials, distribution).
Market conditions: Check supply, demand, and competitor prices.
Product value: How much will customers pay for your product's benefits?
Business goals: Are you after market share or profits?
Customer segment: Different farms have different budgets.

Factor

What It Means

Production costs

Fixed + variable costs

Market conditions

Supply, demand, competition

Product value

What customers get

Business goals

Growth vs. profit

Customer segment

Farm type and size

6.2 Matching Price to Value

To price your product right:

Know your edge: What makes your product special? How does it help farmers?
Show the savings: Can you prove how much time or money your product saves?
Price on value: Set prices based on what you offer, not just your costs.
Offer options: Different pricing tiers for different farm sizes and budgets.
Be flexible: Think about subscriptions or pay-per-use models.

Don't set it and forget it. Keep watching the market and be ready to change. As one agtech founder said:

"We started with one price for our soil sensors. But big farms wanted discounts, and small farms needed a lower price to start. Changing our pricing helped us reach both."

7. Marketing to Farmers

7.1 Farm Shows and Events

Farm shows are gold mines for Agtech companies. Why? They're packed with your target audience: farmers.

Take the Pennsylvania Farm Show. It's HUGE - about 500,000 people show up each year. That's a lot of potential customers in one place.

Or look at the National Farm Machinery Show. Over 900 exhibitors and 300,000 attendees. It's like the Super Bowl of farming events.

Want to crush it at these shows? Here's how:

Build a booth that turns heads
Bring staff who know their stuff
Keep your marketing materials simple and clear
Show off your product in action

7.2 Online Marketing

Farm shows are great, but don't ignore online marketing. It's becoming a big deal in reaching farmers. Here's the playbook:

1. Make Your Website Farmer-Friendly

Your website needs to work on smartphones. Why? Farmers are often browsing while they're out in the fields.

2. Use Email Marketing

Email marketing is a money-maker. For every buck you spend, you could get $44 back. Not bad, right? Use it to:

Keep farmers in the loop about your products
Share farming tips
Get them to your events

3. Get Social

Set up shop on social media. But don't just sell, sell, sell. Share stuff farmers actually want to see.

4. Create Content That Matters

Blog posts, videos, podcasts - pick your poison. Just make sure it's about stuff farmers care about. It'll help them trust you.

5. Try Digital Ads

Use Google and social media ads to find farmers who might like your products.

Marketing Method

Why It's Good

Why It's Tough

Farm Shows

Meet farmers face-to-face, Show off your tech

Costs a lot, Takes time

Website

Always there, Lots of info

Needs constant updates

Cheap, Reaches the right people

Need a good list of contacts

Social Media

Reaches lots of people, Gets folks talking

Takes time, Rules keep changing

Content Marketing

Builds trust, Helps with Google

Takes a while to pay off

Digital Ads

Quick results, Finds the right farmers

Can get pricey, Needs watching

8. Improving Sales Techniques

8.1 Creating a Sales Plan

Want to boost your Agtech sales? You need a plan. Here's how:

Know your customer: Farmers wear two hats - consumer and business owner. Get what makes them tick.
Define your target: Don't cast too wide a net. The Climate Corporation learned this the hard way.
Craft your value proposition: Features are nice, but benefits sell. Climate Pro found out farmers didn't care about saving time as much as they thought.
Choose your sales model: Channel or direct? Pick one and stick to it.
Train your team: Turn order-takers into deal-makers.
Track your progress: Keep an eye on those demo-to-close ratios. Don't waste time on dead ends.

8.2 Addressing Customer Concerns

Objections? They're not roadblocks. They're opportunities. Here's how to handle them:

Listen: Really hear what the farmer's saying.
Understand: Repeat it back to them. Make sure you've got it right.
Respond: Answer their concern head-on.
Confirm: Check if you've cleared the hurdle.

Let's see it in action:

Step

Example

Listen

Farmer: "Your system looks complex. I'm not sure we can use it."

Understand

"So, you think our system might be too tricky for your team?"

Respond

"I get it. Others felt the same at first. But after a quick training, they found it a breeze. We'll set you up and train you for free."

Confirm

"If we show you how easy it is, would that solve your concern?"

Here's the thing: objections often mean they're interested, not turned off.

"An objection isn't a 'no'. It's a sign your customer's curious about what you're selling." - Katharine Gregorio, Advisor to Finistere Ventures and CropX

Handling objections like a pro:

Be ready for the usual suspects (price, complexity, setup)
Ask open-ended questions to uncover hidden worries
Show you get where they're coming from
Share real stories of how your product helped other farms

9. Building Industry Partnerships

In Agtech, going solo is a no-go. Partnerships are key. Here's how to team up and win:

9.1 Partnership Examples

Agtech partnerships come in many flavors:

1. Farmer-Innovator Alliances

InnerPlant's InnerCircle is crushing it. This group links farmers with innovators. The result? 85 members managing 700,000 acres in North America are now shaping farming's future.

2. Corporate-Startup Teamups

UPL's OpenAg Center isn't just an R&D hub. It's an accelerator bringing in fresh minds to crack farming's toughest nuts.

3. Cross-Industry Collaborations

Bayer and Trinity Agtech joined forces to boost European carbon farming. Their weapon? Trinity's Sandy platform, measuring farm carbon levels to hit those pesky carbon targets.

Partnership Type

Example

Impact

Farmer-Innovator

InnerPlant's InnerCircle

85 members, 700,000 acres influenced

Corporate-Startup

UPL's OpenAg Center

Accelerated innovation in agtech

Cross-Industry

Bayer + Trinity Agtech

Enhanced carbon measurement in European farms

9.2 Managing Partnerships

Got a partnership? Great. Now keep it alive:

Set clear goals
Communicate often
Stay flexible
Share wins

In Agtech, partnerships aren't optional. They're ESSENTIAL. As InnerPlant CEO Shely Aronov says:

"I believe that in agriculture you either find smart ways to work with the industry or you're probably going to fail."

So, team up and grow. That's how you'll make waves in Agtech.

10. Measuring Success

In Agtech, tracking the right numbers can make or break your business. Here's how to measure what matters:

10.1 Performance Tracking Tools

Smart Agtech companies use tools to monitor their progress. Here are some top picks:

Tool

Tracks

Why It's Useful

Google Analytics

Website traffic, user behavior

Optimizes online presence

Ruler Analytics

Marketing ROI, revenue attribution

Links marketing to sales

Cyfe

Custom KPIs, real-time dashboards

Gives overview of business health

Pro Tip: Start with Google Analytics. It's free and packed with insights.

10.2 Using Data to Improve

Data without action is just noise. Here's how to turn numbers into growth:

1. Set SMART goals

Make them Specific, Measurable, Achievable, Relevant, and Time-bound.

2. Focus on key metrics

For Agtech, these often include:

Yield per square foot
Customer acquisition cost
Revenue per crop
Operating expense ratio

3. Act on insights

If your customer acquisition cost is high, tweak your marketing. If yield is low, adjust your growing techniques.

4. Benchmark against industry standards

For example, aim for a working capital to gross revenue ratio of 30% or higher for crop farms.

5. Use tech to your advantage

Modern farm management software can track individual animal growth rates, market values, and more.

Success looks different for every Agtech business. As one farm owner put it:

"For us, success meant selling 200 CSA subscriptions. Once we hit that, we knew we were on the right track."

The key? Define what success means for YOU, then track and improve those metrics relentlessly.

11. Following Agtech Rules

Agtech companies need to play by the rules. Here's what matters:

11.1 Key Farm Regulations

Three big ones to know:

Regulation

What It Covers

Why It Matters

Farm Bill

$725 billion for farms and food

Keeps farmers stable

H-2A Visa Program

Foreign worker wages

Affects labor costs

USDA Oversight

Competition and climate-smart farming

Shapes the industry

The 2024 Farm Bill is huge. Industry groups want it ASAP.

"We are imploring Congress to take urgent action to expedite the farm bill." - RJ Karney, National Association of State Departments of Agriculture

H-2A wages jumped 5% to $17.55/hour on average. That's way more than Canada ($11) or Mexico ($1.50).

The EPA, FDA, and USDA are updating biotech rules for:

Genetically engineered plants
Modified animals
New microorganisms

They want clearer, more efficient rules.

11.2 Protecting Farm Data

Farm data is tricky:

1. Ownership: No clear laws. 81% of farmers think they own it, but it's not that simple.

2. Security: 77% of farmers worry about it.

3. Legal Gray Area: Courts struggle with new tech and old laws.

What to do? Use strong contracts, NDAs, and trade secret protections.

The American Farm Bureau Federation says farmers should:

Own and control their data
Know what's collected and how it's used
Be able to opt out of data sales

Some Agtech firms use cloud systems to track livestock health. It helps with compliance but raises data questions.

Bottom line: Stay informed. Work with lawyers. Build trust with farmers and avoid legal headaches.

12. Growing Your Agtech Business

12.1 Entering New Markets

Want to grow your Agtech business? New markets are key. Here's how:

Find the Gaps: Look where Agtech is needed most. Sub-Saharan Africa and Asia-Pacific? They're hungry for solutions.
Make It Fit: Your tech should work for local farms. Different crops? Weird weather? Adapt.
Team Up: Local partners know the score. They'll help you navigate and sell.

Do This

Like This

Go Niche

Vertical farms in cities

Adapt

Tropical soil sensors

Partner

Join local farm co-ops

12.2 Keeping Quality as You Grow

Bigger doesn't always mean better. Here's how to stay good as you get big:

Set the Bar: Clear standards. Regular checks. No exceptions.
Train Hard: New folks need to know what "good" looks like.
Listen Up: Ask customers what's working. And what's not.
Smart Machines: Use tech to stay consistent, but keep it human.

Real Deal: Farmers Business Network (FBN) went from local to global, serving 25,000+ farmers across continents. They scored $600 million in funding. How? They stuck to their guns on quality and put farmers first.

"Scale-ups win when they nail their value and how to sell it." - Anieke Wierenga, ScaleUp Food

13. Future Agtech Trends

13.1 New Farm Technologies

The farm of tomorrow? It's a whole new ballgame. Here's what's coming:

AI-Powered Farming

AI isn't just sci-fi anymore. It's changing farming in big ways:

AI + satellites = super soil data
Drones + AI catch plant problems early
AI predicts local weather for better planning

Gene Editing for Tougher Crops

CRISPR and friends are beefing up our plants:

Plants that laugh at drought
Crops that shrug off pests
Fields that pump out more food

Machines Taking Over

Task

Tech

Planting

Tractors that drive themselves

Harvesting

Robots that pick produce

Crop Spraying

Drones that know exactly where to spray

"Full automation could put an extra $400 per acre in Canadian farmers' pockets each year." - RBC Agriculture Report

13.2 Changing Farmer Needs

As tech evolves, farmers' needs shift. Here's what they'll want:

Data-Driven Decisions

Farmers are becoming number crunchers:

Real-time field data from smart sensors
AI that predicts crop yields
Tech that spots market trends for better pricing

Going Green

Sustainability is hot in farming:

Carbon credit markets (like Canada's emissions market)
Tech for earth-friendly farming
Irrigation that sips, not gulps

Learning New Tricks

New tech means farmers need new skills:

How to crunch data
How to work with robots
How to farm with climate in mind

"Keeping our farms tough is a must." - Mohamad Yaghi, RBC's Agriculture and Climate Policy Lead

Bottom line? Tomorrow's farm is high-tech, data-hungry, and green. Companies that help farmers get there will lead the pack.

14. Wrap-up

Entering the agtech market? You'll need grit, smarts, and a solid plan. Here's the lowdown:

Know your farmer: Don't guess what farmers need. Ask them directly.
Prove your worth: Show clear ROI. No value? No sale.
Pick your niche: Solve one problem well. You can't please everyone.
Test and adapt: Get your product to farmers early. Use their feedback.
Build trust: Partner with respected ag names. It opens doors.
Price it right: Balance farmer budgets with your growth needs.
Sell smart: Direct sales or dealers? Pick one, not both.
Keep it simple: Farmers are busy. Make your tech easy to use.
Plan long-term: Agtech takes time. Have enough funding to wait.
Stay flexible: Markets change fast. Be ready to pivot.

Success in agtech isn't just about cool tech. It's about solving real farm problems in practical ways.

"You must be able to prove the efficacy of your product offering. That means demonstrating very clear ROI to growers." - Lutz Goedde, Senior Partner at McKinsey & Company

Bottom line? Understand farmers, solve real problems, and be patient. That's your recipe for agtech success.