In the shadow of pressing global challenges, such as escalating food demands and the need for sustainable practices, Agricultural Technology—or AgTech—presents itself as an innovative solution and crucial investment frontier. For discerning investors eyeing sustainable agriculture practices, AgTech is the meeting point of opportunity, sustainability, and potential high returns. This sector’s growth is fueled by the urgent need to revolutionize the way we produce food, making investments in AgTech not just financially wise but fundamentally aligned with future societal needs. Here’s some considerations for those looking into AgTech Invesment.
Why Invest in AgTech?
The Alarming State of Current Agricultural Practices
Agriculture finds itself at a crossroads as it grapples with the unsustainable nature of traditional farming methods. The global population is projected to reach 9.7 billion by 2050. So these practices, heavily reliant on finite resources, are increasingly inadequate in feeding the current, let alone the future, global population. According to the United Nations, food production would have to be boosted by an astounding 70% to feed this population.
Compounding this challenge is the need for a vast expansion of fertile land. In 2050, an estimated additional 593 million hectares would be required. Furthermore, the need for more land makes water-intensive farming practices a serious concern. Astonishingly, agriculture already accounts for 70% of global water consumption, highlighting a critical area for immediate intervention.
2050’s Agricultural Outlook
Billion people to feed
%
Growth Demand in Food Production
Million Additional Hectares Needed
%
of Global Water Consumption Required
Filling a Need: The Emergence of AgTech
In response to the looming crisis of food insecurity, water scarcity, and land degradation, agricultural technologies present a unique opportunity to invest in an in-demand solution that meets these challenges head on. Let’s look closer at a great example of AgTech in action—hydroponics. By virtue of utilizing 90% less water than conventional farming, alongside the potential for year-round crop cultivation, hydroponics significantly mitigates the strain on water resources and land use. As more people realize the viability of this option, the field of AgTech has received a notable boost. According to Precedence Research, the worldwide AgTech market was valued at $18.12 billion in 2021. Expected to reach $74.03 billion by 2034, that’s a compound annual growth rate (CAGR) of 12.2%.
AgTech Market Growth Projections (USD Billion)
Invest in the Future with AgTech
Understanding the value of AgTech involves recognizing its potential to change agriculture. A strategic investment approach looks at several key factors: the innovation level and scalability of the technology, the company’s development stage, the leadership team’s knowledge, and the market demand for sustainable solutions. Hydronov is a prime example in this field, showing how advanced hydroponic systems can address global agriculture challenges effectively and sustainably.
Hydronov: A Proven Leader in the AgTech Space
Hydronov stands out because it combines innovative technology with a strong focus on sustainability. This approach not only makes it an attractive option for investors interested in sustainable and secure food production but also showcases the substantial growth possibilities within the AgTech sector. Success stories, like the outcomes seen at Campo Caribe—the largest hydroponic greenhouse in the Caribbean that overcame the challenges of its tropical climate—highlight the significant impact that investment in AgTech companies like Hydronov can have.
Our unique combination of location, facility design, growing equipment, and controls systems allows us to overcome these issues and puts us on the cutting edge of the controlled environment agriculture (CEA) industry. This makes our facility more productive, energy efficient, and sustainable than those of our competitors, and makes our products tastier and healthier for our customers. Our greenhouse is built to withstand hurricane force winds up to 165 mph and will allow us to achieve a higher order fulfillment rate for Puerto Rican businesses
Smart AgTech Investment Starts at Hydronov
The future of agriculture demands a shift towards more sustainable, efficient, and innovative practices. As we review the profound potential of AgTech, it becomes clear that embracing and advancing these technologies is instrumental in feeding a growing population sustainably. The promising avenues spearheaded by entities like Hydronov offer a glimpse into the future of agriculture and invitation.
You can participate actively in shaping a sustainable agricultural landscape through strategic investment decisions. At Hydronov, we invite you to join us on this jouney of fostering a food-secure world for generations to come.
Let us embark on this journey together, fostering a food-secure world for generations to come. Learn more about investing with Hydronov and reach out to get started today.
