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A looming bubble in the Ag Tech industry?

The demands of agriculture and the price tag for new technology have some developers questioning if there is a looming bubble in the ag tech industry.  Aaron Magenheim, CEO of AgTech Insight of Salinas, California says there is a disconnect between developers and farmers.

“I saw this train starting to pick up speed and move faster and faster with technologists and industry investors dumping time and money, and started seeing that it’s going to derail and blow up if you don’t get the right people from the industry involved.” says Magenheim

Magenheim says their clients in the Midwest, far removed from Silicon Valley, need to be involved in the creation process so developers can better understand what real, on the ground needs of farmers are.

“Before a company puts two million dollars in a couple years building a technology we need to have the right people in the room at the table to make sure that they’re building something that growers want.” says Magenheim.

Fortune Magazine reports there is a growing belief in an ag tech bubble, and Magenheim agrees. He says if companies don’t have the right people involved in development, they can’t expect long term success.

“Because if growers are involved, they’ll help make sure the product is correct. They understand the market and who needs to support it. The more grower involvement you have, your failure rate goes down exponentially.” says Magenheim.

The American Farm Bureau Federation says the demand is there and it is growing, with two-thirds of farmers indicating they plan to invest in new ag technologies.

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