Australia’s AgTech sector crucial to a healthy technology industry

The Australian Government’s efforts to support the country’s farmers and other primary producers by encouraging investment in technology are driving the growth of technology start-ups, supporting innovation and increasing interest in new technology skills.

The government recently announced the second round of the farm connectivity program. This $18 million investment provides rebates of up to 50%, up to a maximum of $30,000 on eligible equipment, and is intended to expand data coverage and improve the connectivity and reliability of machines and sensor technologies.

As noted by the government, the initiative supported:

• Soil moisture probes.
• Antennas.
• Liquid level monitors.
• Cattle monitoring systems.
• Weather monitors.
• Boosters and repeaters.
• Radio transmitters.
• Cameras.
• Water flow and pressure monitors.

The initiative is part of a larger $1.1 billion investment in rural Australia as part of the Better Connectivity Plan.

Almost 9 out of 10 farmers are interested in adopting AgTech solutions

This investment is significant because it provides direct funding to Australian businesses.

Australia is a leader in AgTech investment, which means that these government initiatives are neither niche nor narrowly focused. Roy Morgan’s research shows that:

• 89% of Australian farmers want to use AgTech solutions.
• Currently, 72% do so.
• 6% of farmers try AgTech solutions before giving up.

However, as Roy Morgan’s research also shows, the level of investment could be even higher. The biggest barrier to implementing AgTech solutions is “high costs”, which government initiatives are actively helping to eliminate.

The industry sees AgTech’s potential in converting interested farmers into customers. One company particularly involved in the project, Farmbot Australia, applied for 441 rebates under the program, worth a total of $2.4 million.

Farmbot often uses this program in its marketing materials for farmers.

Innovation investment frenzy

At the same time, the government also actively supports startups in the AgTech space with additional subsidy programs, such as the Industrial Development Program.

Under the program, startups and SMEs working on innovative solutions for sectors in the government’s “priority areas,” which include agriculture, can access grants worth up to $5 million to commercialize and grow their businesses. This resulted in a sharp increase in interest in investing in this industry. Examples include:

• Seed Terminator, which received a $3.1 million grant earlier this year.
• Number 8 Bio, which aims to solve critical issues related to the agricultural industry’s carbon footprint. The company has raised $7 million in a funding round led by Main Sequence Ventures, an investment firm backed by government research and development body CSIRO.

Meanwhile, another Australian AgTech startup that took on the same challenge was able to close Seed’s second $17 million investment round after catching the eye of Microsoft founder Bill Gates.

The demand for AgTech skills is growing

The health of the Australian AgTech sector should result in positive outcomes for all technology sectors.

For example, the demand for skills in this sector is encouraging the direct promotion of careers in this sector in regional Australia, where technology skills tend to be less important.

Agvision Yanco, held in September, was the largest regional event in New South Wales aimed at promoting careers in agriculture. It also introduced hundreds of students to various aspects of AgTech in an effort to promote STEM skills among students in the region.

The event was an initiative of the New South Wales State Government, recognizing the need for a sustainable AgTech sector to ensure the long-term health of the industry. We focus on hardware and software development while providing ongoing maintenance.

“Agriculture is the engine room industry in New South Wales,” Tara Moriarty, New South Wales Minister for Regional Affairs, said in a statement. “Farmers across the state produce more than $17 billion worth of food and fiber each year. Agricultural technology, “AgTech,” is critical to the continued success of our state’s agricultural industry.”

She added: “AgTech is transforming the agricultural industry around the world and it is vital that NSW has the right skills so that we remain a global leader in this field.”

Like any other sector, AgTech relies on traditional IT to provide the foundation for innovation. In particular, AgTech is in high demand for IoT, edge computing and cloud computing solutions because much of the technology is sensor-based and deployed remotely. This involves the need for advanced cybersecurity solutions.

Australia’s thriving AgTech sector is creating significant opportunities for the wider IT industry, while creating new skills and opportunities for IT professionals in areas where IT has traditionally played a secondary role. In the long term, this demand and opportunity will strengthen Australia’s innovation sectors and help address skills shortages by creating stronger pathways to IT.