University of California Agriculture and Natural Resources’ Connect Program and Farmhand Ventures work together to invest in companies developing solutions to some of growers’ most pressing problems. Let’s take a closer look at the importance of funding ag tech. 

Innovation is a hallmark of California agriculture. For hundreds of years, Golden State farmers have found ways to make farming more efficient, sustainable and profitable. Every innovation starts with a great idea – but a great idea is only the beginning. Turning that idea into something a farmer can actually use requires investments. There’s equipment to build, technology to develop and employees to pay – and all of that takes money.

Investing in the future of agriculture

That’s where Connie Bowen of Farmhand Ventures steps in. Farmhand Ventures collaborates with UC ANR Connect to identify and fund promising emerging agricultural technologies that will benefit California growers. Connie explains, “We are an impact investment firm. We are focused on building a better future of work in agriculture. We focus on making agricultural systems more resilient, more profitable and to make the livelihoods of farmers, farm workers – and really, rural America better. And while we do some venture investing, something that’s very strange about us is we’re not a venture capital fund. We’re an alternative impact investor.” 

Explaining the difference, Connie notes, “Venture capital is an investment approach that is kind of ‘make as much money as possible’. It’s appropriate for a very narrow window of tech solutions. So at Farmhand, what we’re interested in is financing and supporting solutions and aligning shareholders so that my investors get what they expect and, you know, a little bit better than what they expect.” Grinning, she quips, “We don’t all need to be billionaires at the end of the day.”

The right kind of money

For most ag tech startups, money is necessary – but what they really need is money with guidance.

Connie notes, “It’s really important to connect startup companies to ag tech investors who understand agriculture. Farms have very different adoption cadences, and ag tech companies have different investment outcomes than tech.”

In other words, farmers have to see that a new technology solves a real problem, works in the conditions they’re farming in and – most importantly – makes financial sense.

Serving the interests of farmers and farmworkers

That can make the relationship between an investor and an ag tech company a little different, too. Building relationships with the companies – and ultimately people – she has invested in is key. Connie says staying closely connected to the companies Farmhand invests in helps everyone work through speed bumps without losing sight of the end goal: serving the interests of farmers and farmworkers and creating a profitable product. She explains, “Startups tend to pivot. And as long as we are on the same page and have a transparent, trusted relationship, we can usually handle whatever chaos gets thrown at us and move that company, that product, that solution in the right direction that continues to serve farmers and farmworkers.”

Working alongside new technology

While labor scarcity is a serious issue for California farmers, Connie doesn’t view these technological advancements as a threat to farmworkers’ livelihoods. She freely admits that there are some incredibly taxing jobs – strawberry harvest, for example – that she believes should be eliminated. The goal, however, is not to put farmworkers out of a job. The goal is to transition them into roles that manage or work alongside the technology. Connie explains, “The reality is that ag is too diverse to fully automate, period. It won’t work economically. The good operations are looking at ag tech investment as a mechanism to retain their workforce and move them into higher value roles. It’s the only way we can start to pull more dollars into farmers’ pockets.”  

In the end, these emerging technologies aren’t a “get rich quick” scheme – for farmers, developers or investors. They’re a tool to make farm work more manageable and to help farmers achieve economic sustainability – so they can continue to grow and harvest the crops that feed the world. Just maybe in a slightly less back-breaking fashion. 

Article by Hilary Rance. Photography by James Collier.