Key Takeaways

• The National Farmers Union has launched a $25 million investment fund aimed at supporting startup agtech and automation firms.
• The Farmers Capital Fund will allow farmers to earn equity by testing new technologies, with a focus on sustainability and productivity.
• The initiative reflects NFU’s ongoing commitment to fostering innovation within agriculture and improving community investments.

Investment Initiative for Agtech

The National Farmers Union (NFU) has introduced a significant initiative with the launch of its $25 million Farmers Capital Fund, which will provide financial backing to startup agricultural technology and automation companies. The announcement was made during the NFU’s annual convention held in Oklahoma City, Oklahoma, in partnership with Open Prairie, an Illinois-based investment firm.

This fund aims to evaluate investment opportunities based on several criteria, including economic sustainability, productivity, profitability, and particularly solutions that help reduce input costs, enhance resource efficiency, and improve market access for farmers. Through participation in the fund, farmers will not only have the chance to adopt cutting-edge technology but could also earn equity shares in the companies behind those innovations.

In practical terms, farmers testing new biologics developed by fund-supported companies could be rewarded with stock options. For example, a farmer who applies a specific biologic to 10 acres might receive $5,000 worth of equity in the associated company as compensation. Jim Schultz, managing partner at Open Prairie, emphasized this unique opportunity: “If a farmer partners with us and puts that technology to work on their farm or ranch, we’re going to give them some equity upside by carving out these negotiated additional shares that we get in deals that we do.”

NFU President Rob Larew stated the organization’s long-standing interest in nurturing innovations within agriculture. “This, to me, feels like one of the answers to that,” he remarked, indicating that the Farmers Capital Fund aligns with their goals of fostering entrepreneurship in the sector. He noted that various state-level affiliates have already established their own business ventures as part of this commitment. For instance, the North Dakota Farmers Union has successfully launched multiple restaurants in Washington D.C., while the Montana Farmers Union operates a USDA-inspected meat processing facility.

Larew highlighted that this initiative is part of an ongoing effort to reinvest in communities and enhance operations for members. “This is part of an ongoing effort… to make sure that we are continually investing back into our communities, investing back into our members in ways that are going to improve their operations,” he explained. The Farmers Capital Fund represents a strategic move to combine technological advancements with grassroots agricultural practices, potentially leading to significant benefits for the farming community and the broader agricultural landscape.

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