By Chris Rawley

Nearly every industry in the United States has faced labor challenges in recent years, and farming is not an exception. Today's agriculture producers are embracing cutting-edge technology and one of the most exciting advancements is Robotics as a Service (RaaS).

What is RaaS in Agriculture?

Traditionally, adopting new agricultural technology meant a hefty upfront investment in machinery. RaaS flips this model on its head. Instead of buying robots, farmers rent them as needed, paying a service fee based on usage. This makes high-tech solutions accessible to a wider range of farms, from small family operations to large-scale agribusinesses.

The Benefits of RaaS for Farmers

• Reduced Costs: RaaS eliminates the upfront investment and ongoing maintenance expenses associated with owning robots. Farmers only pay for the service they use.

• Increased Efficiency: Robots can automate tedious tasks like weeding, harvesting, and crop monitoring, freeing up farmers' time to focus on other areas.

• Improved Precision: Robotic systems can perform tasks with greater accuracy than humans, leading to higher yields and reduced waste.

• Labor Solutions: RaaS can help address the ongoing challenge of labor shortages in agriculture.

Robots Taking on Diverse Tasks

RaaS isn't a one-size-fits-all solution. Different robots are designed for specific tasks, including:

• Planting and Seeding: Autonomous robots can precisely plant seeds at optimal depths and distances, maximizing yield potential.

• Weeding: Tireless robots can identify and remove weeds without harming crops, reducing reliance on herbicides.

• Harvesting: For delicate fruits like strawberries or apples, robots can carefully pick crops, minimizing damage and waste.

• Crop Monitoring: Drones equipped with advanced sensors can collect data on crop health, allowing for targeted interventions and improved resource management.

Investing in RaaS

For investors, RaaS offers an opportunity to get in on the early stages of a transformation in agriculture production. According to Global Market Insights, the agricultural robotics industry will reach a total value of $80 billion by 2032, a compound annual growth rate of 15% from 2023. RaaS provides a more accessible entry point for many farmers who already face intensive capital requirements.

RaaS is still in its early stages, but it has the potential to transform agriculture. By making advanced technologies more accessible and affordable, RaaS can empower farmers to increase productivity, improve sustainability, and meet the growing demand for food in a changing world. As robotics technology continues to develop, we can expect even more innovative solutions to emerge, shaping the future of our farms and the food on our plates.

Fort Worth, Texas, February 23, 2024 – Harvest Returns, an online platform for agriculture investing, today announced a partnership with Good Agriculture, a farmer-first, tech-enabled company focused on helping agriculture producers manage the business side of their operations. The partnership entails customer referrals between the two companies for their respective services.

Good Agriculture is an AI-powered farm business management platform that helps farmers spend less time on back-office activities and do more of what they do best: focus on the farming operations. Good Agriculture simplifies the full stack of farm finance including federal incentive programs, crop insurance, cost of production, and agriculture taxes. Their products are complementary to Harvest Returns’ investment platform services, which require sophisticated financial projections and ongoing reporting. Other services include grant writing, marketing, sales, certifications and business case studies. 

"We are often approached by quality farm companies that have solid business plans but are unable to put together financial statements that are adequate for raising capital on our platform. The partnership with Good Agriculture solves that problem and will help us to fund many more wonderful family farms and ranches," expressed Harvest Returns' Chief Executive Officer, Chris Rawley.

“We hear from farmers that accessing capital is their number one challenge. Harvest Returns is a leader in funding innovative, creative, and sustainable farm businesses, and we’re so excited to partner with them to help farmers and ranchers grow and thrive,” said Good Agriculture’s Chief Executive Officer, Alex Edquist.

About Good Agriculture

At Good Agriculture, Inc., farmers are at the heart of everything we do. We are an agriculture finance technology company building in Atlanta, Georgia with the mission to tell farmers and ranchers “you grow, we’ll do the rest!” Farmers all over the country trust our back-office services to help them reach greater profitability, efficiency, and sustainability. Join us in empowering farmers to focus on what they do best—farming. Find out more at goodagriculture.com.

About Harvest Returns

Headquartered in Fort Worth, Texas, Harvest Returns, Inc. is a financial technology marketplace created in 2016 by two military veterans to bring agricultural producers together with investors. The company’s pool of over 15,000 investors have helped farms, ranches, and other agribusinesses raise more than $35 million in capital. For more information, please visit metrotradeservice.com.

For more information about this topic, please contact us at 844-673-8876 or email at support@metrotradeservice.com.

Updated to reflect 2023 RETURNS

In December of 2022, the global investment company KKR published a study on the benefits of investing in private credit in the current macroeconomic regime. Private credit can provide several benefits to investors who wish to diversify their portfolios while generating risk-adjusted returns. 

The KKR study asserts that “this cycle is a ’different one‘ remains unchanged, as we still see a structurally higher resting heart rate for inflation going forward. Key to our thinking is that wage inflation, the energy transition, continued rental income growth due to structural housing supply and demand issues, and geopolitical concerns impacting supply chains are now all more structurally inflationary than in the past.” 

Harvest Returns has offered private credit investments in sustainable livestock production since 2017, and they remain some of our most popular and successful vehicles. They are collateralized with real assets, including land, farm equipment, and livestock inventories. Ranchers come to us because of the flexible offering terms and streamlined capital raise process that we provide compared to traditional ag lenders. From 2020 through 2023, the average returns of our private credit livestock offerings was 14.2%.* Private credit investments can carry a higher risk premium due to their illiquidity and the fact that they are not publicly traded.

Farmers, ranchers, and agribusiness owners are facing one of the most constrained credit markets in decades. The producers and small business owners we speak with are constantly in search of flexible loan sources to fund business expansion or working lines of credit. Over 40% of respondents to a recent ag lending survey by Farmer Mac reported tightening underwriting standards (48%) and loan terms (42%) in 2023 (up from 30% and 22%, respectively, in 2022). The same survey reported that demand for both loans secured by farmland and agricultural production loans increased in 2023. Respondents anticipate that loan demand for both categories will continue to increase over the next 12 months.

Aside from the potential of out-sized returns in a challenging market environment, private credit offers a number of benefits to investors:

1. Steady income: Private credit investments can be attractive to investors who are seeking to generate passive income from their investments. Harvest Returns debt investments have varying payment frequencies, ranging from quarterly to annually.

2. Low correlation to public markets: Private credit investments often have a low correlation to publicly-traded stocks and the corporate bond market, which can help to balance out a portfolio and reduce volatility. The KKR study suggests that investors move out of a traditional 60/40 stock/bond allocation, and advises that investors might consider shifting up to 10% of their portfolio into private credit over several quarters. 

3. Relationship-based lending: Harvest Returns maintains an ongoing relationship with all of its agriculture operators. Investing in our private lending opportunities provides support to American farmers and ranchers and creates steady jobs in rural areas, while strengthening agricultural supply chains.

4. Diversification: Private credit investments can provide investors with exposure to a diverse range of industries and companies that may not be available through public markets. In Harvest Returns’ case, our investments focus on livestock, which is an industry isolated from mainstream investment sectors. Portfolio diversification helps reduce portfolio risk and increases returns.

In December 2023, Harvest Returns launched a private credit fund available to accredited investors to deploy capital more efficiently to our farming and ranching partners. Register below to learn more.

*Past performance is not indicative of future results and there can be no assurance that the future performance of any specific investment, investment strategy, or product will be profitable. Please read all offering documents carefully prior to investing.

Annual realized returns (IRR %) are based on net cash flows from invested capital, coupon payments, accrued interest, and return of invested capital across all realized fixed income investments during each annual period from 2020 through 2023.  The actual cash return on investment also takes into consideration the weighted average time before a Harvest Returns receives the bond's cash flows.  In addition, the annual historical returns are a blend of varying credit facility maturities.

In many ways, 2023 was an extremely challenging year for agricultural companies raising capital. A spike in interest rates provided risk-free alternatives for investors who might normally allocate into the space, while banks and other lending institutions significantly tightened credit availability. Early stage companies struggled with runway and raising bridge rounds. Though economic headwinds remain, we’re optimistic that 2024 will see an uptick in funding for several areas. 

Here are some of the trends we’re watching that could make an impact in the ag investing space next year:

A Resurgence in the CEA Industry

By all measures, 2023 was a bloodbath for controlled environment agriculture. Large, well-funded players, including AeroFarms and AppHarvest, filed for bankruptcy reorganization, while many other indoor farms, both large and small, closed their growing operations for good. Capital intensive hydroponic farms and greenhouses had major challenges raising money. As companies with unsustainable business models fall out, survivors will increasingly focus on unit economics and generating positive cash flow. Additionally, those indoor growers with strong distribution or off-take agreements in place will prosper compared to growers who are selling on a more ad hoc basis. Projected Federal Reserve interest rate cuts in 2024 will help jump start equipment and project financing in the CEA space. 

Artificial Intelligence (AI) Becomes More Widespread in Ag

AI companies were one of the stand-outs in venture capital funding in 2023, and that trend will likely extend into ag-tech funding next year. AI can be used to analyze large amounts of data collected from farms and provide insights that can help farmers make data-driven decisions. AI-powered systems can predict weather patterns, soil moisture levels, and pest infestations, enabling farmers to take preventive measures and optimize crop yields. We’re witnessing both small and large ag companies embrace the efficiencies that bringing AI into supporting business functions, such as customer service and marketing can make. Others, like our portfolio company Precision Livestock Technologies, incorporate AI as a core part of their product. 

Agricultural Biotechnology Momentum

Biotechnology and the use of so-called “biologicals” are used to develop crops that are resistant to pests and diseases, require less water, and have higher yields. Genetic engineering is also being used to create crops that are more nutritious and can withstand extreme weather conditions. Large corporations, such as Bayer and Syngenta, will continue to build their biologics portfolios via R&D, strategic investments, and acquisitions, while promising biological-focused start-ups will jockey for early stage funding rounds next year.

Functional Foods Continue to Gain Traction

Another hot consumer trend is functional foods with health benefits beyond nutrition, such as mushrooms, certain fruits and vegetables, and various seeds and nuts. According to Fortune Business Insights, the global functional food and beverage market is projected to grow from $281.14 billion in 2021 to $529.66 billion in 2028 at a CAGR of 9.5%. An increasing focus on gut health is helping reverse the downward trend in milk consumption with new demand for prebiotic and probiotic dairy products, along with generating demand for other fermented foods. 

Regenerative Agriculture Embraced by Consumers

Though often overshadowed by a narrow focus on climate, regenerative agriculture involves farming practices that promote soil health, biodiversity, and ecosystem services. This approach focuses on building soil organic matter, reducing tillage, and using cover crops to improve soil health and reduce erosion. Regenerative agriculture also helps farmers reduce their use of fertilizers and pesticides, leading to cost savings and environmental benefits. On the livestock side, holistic, intensive, or “mob” grazing replicates the interaction between the land and native ruminant animals to build grasses deep roots that retain water and carbon. 

Major brands embracing regenerative agriculture practices include General Mills, Patagonia, and Stonyfield Organic. Farmers, ranchers, and the agricultural investors who fund them will increasingly be called to respond to the public’s demand for production methods that enhance, rather than detract from the environment.

48% of Americans don't know where chocolate milk comes from, according to the Innovation Center for U.S. Dairy. That's nearly half of the population of the U.S. How did we grow so far removed from the way our food is produced? More importantly, how do we reconnect with our food system? We listed the top four ways to connect with the food system.

Ways to Learn More About Your Food

1. Shop at your local farmer's market.

The local farmer's market is a great place to learn about where your food comes from and who produces it. Typically, farmers and ranchers will bring the products they grew, raised, or produced and interact with the consumer. This is a great opportunity to ask questions and be involved in supporting the local economy. Shopping and eating local is the perfect way to connect with your food.

2. Agritourism

Wineries. Pick-Your-Own Orchards. Pumpkin Patches. All agritourism. Agritourism is where agriculture and tourism meet to help provide consumers with an education about what farmers and ranchers do. What better way to learn about where milk comes from than by going to a dairy farm? Learning about and seeing where products are created can help you better connect with the food system. Many farms allow you to "pick your own" and take home some great produce to go along with the memory.

3. Grow Your Own

Create a herb garden in your kitchen window. Raise a couple backyard chickens for fresh eggs. Attempt to produce your own food, even if it's just one product. The action of nurturing plants and animals for food will help you appreciate the work and inputs that go into farming on a small scale. Plus, eating fresh food from your garden - that's as local and connected as it gets!

4. Invest in Agriculture

Join forces with agriculturalists by investing in agriculture. Agriculture produces real assets, which help fuel the world. By investing in a farm or livestock operation, you create an incredible connection and impact with the local, and possibly national and international, food system. 

The Harvest Returns platform draws together investors interested in agriculture with a wide assortment of investment agriculture products. With as little as $5,000, these investors are able to own interests in farms, timberland, or orchards in different parts of the world, each with their own risk/return profile. Wealthy landowners and sophisticated investors are familiar with the benefits of investing in agriculture. Now there are ways for the average American to put a portion of their investment portfolio towards agriculture, arguably, the world’s most important industry.

By Cami Froneberger

If you’re like us, you have some people on your holiday shopping list that you’re not quite sure what to get for them. It’s never too early to start shopping for gifts for your loved-ones this holiday season and we’re here to help. So we present to you… The Harvest Returns Holiday Gift Guide!

We have very unique sponsors with products that can help you check things off your list.

Gift An Experience

A ranch tour is the perfect gift for someone who seems to have everything. Don’t stress over a present, give a one-of-a-kind experience. Our sponsor Perennial Pastures Ranch offer tours of their Southern California regenerative operation year-round. Ranch tours typically conclude with a chef-prepared meal using Perennial Pastures’ very own regeneratively-raised meat. Some experiences even include cattle branding experiences and movement classes.​​ The gift of experiencing this awe-inspiring ranch is one that your recipient will never forget.

Gift Wellness

Staying healthy is always a priority going into the colder months. Give an immune boost with Harvest Farmacy’s Elderberry Wild Cider. Rich elderberries along with tart cherries and apple cider vinegar form the beneficial elixir sure to invigorate the taste buds. Infused with manuka honey, lemon, and mulling spices, the fun flavors make staying healthy easy. The Elderberry Wild Cider can also make a fun addition to holiday cocktails and mocktails. With added gut health support and antioxidants, it’s sure to become a staple of any recipient's daily routine.

Other wellness products from our sponsors include the Miticon Pure Plus Supplement from WOW Life Sciences. This product helps to increase energy, improve heart health, supercharge the metabolism, improve natural immunity, and boost memory. This anti-aging cellular immunity supplement contains Nicotinamide Riboside (NR) to help increase NAD+ levels in your cells. Mitocon Pure Plus works to help restore youthful vitality and achieve peak performance.

Utilizing pine needles hand-harvested from our sponsor Kipling Ridge Farms, Ascent Nutrition’s Pine Needle Extract offers another great gift that supports heart health. The extract from the Eastern White Pine trees contains naturally occurring shikimic acid, vitamin C and many other health supportive compounds. Shikimic acid is known in the scientific literature to support lung health, respiratory function and immune system health. This proudct specificaslly promotes healthy respiratory function and immune system, assists in brain and nervous system health, and supports a healthy detoxification process.

Gift A Garden

Do you know someone with a green thumb and passion for plants? With PittMoss, you can help them start the new year right with potting and garden mixes sure to help their plants thrive. Their peat-free potting soil is made of recycled material that is versatile for all-purpose gardening from vegetables to indoor plants. The Plentiful Organic Potting Mix was also named Better Homes & Gardens’ “Best Overall Potting Soil.” Give your recipient’s plants what they need to thrive.

Gift Nutrition

Meat subscription boxes are becoming increasingly popular and we think they would make the perfect gift for someone on your list. We have several sponsors that offer a variety of box options and other products perfect for stocking stuffers. Whether your recipient enjoys juicy steaks, hearty bison meat, or tender chicken, you can find some of the best meats from a variety of producers.

BISON

Bison is a highly nutrient dense food because of the proportion of protein, fat, mineral, and fatty acids to its caloric value. So you can help add nutrional value to your recipients diet with products from our sponsor Wild Oasis Bison Ranch. Their products range from their popular Bison Snack Sticks to bundles featuring a variety of cuts. And don’t forget the dog mom or dad on your list with Wild Oasis’ high-quality products for dogs.

BEEF

If your gift recipient is obsessed with steak and burgers, we have options for how you can fill their appetite this holiday season. When it comes to high-quality proteins, beef provides many nutrients in a smaller serving size than some other choices. So make sure the beef enthusiasts in your life have a stocked freezer for the new year. Bailey Meats LLC offers boxes including ground beef and plenty of steak options in the “Steak Lovers” box. Over at Perennial Pastures Ranch, you’ll find products that are snack worthy like their All-Natural Beef Sticks and products to make life easier like their seasonal “Slow Cooker Box”, perfect for an easy crockpot meal. They also have unique products like their cooking tallow and bone broth.

CHICKEN

Chicken is always great option when it comes to nutrition. As an excellent low-calorie, low-sodium, and low-fat source of protein, chicken provides important nutrients throughout our lives. Whether your recipient is a fan of chicken breast or prefers the whole chicken, Perennial Pastures Ranch’s pasture raised chicken are sure to satisfy the cravings.

Gift Green

Smoothies are the perfect breakfast for someone who is always on the go. Give that busy someone a protein supercharge with We Are The New Farmers’ Fresh Frozen Spirulina Cubes or Fresh Spirulina Paste. One cube equals one day of fresh greens, while two cubes pack the protein punch of one egg. Unlike the powder supplements you might find in a local grocery store, We Are The New Farmers’ products maintain their nutrional integrity. So you can be confident that your recipient will get the highest quality nutritional value.

When you shop from our sponsors, you are also supporting American businesses. Happy shopping!

Harvest Returns is proud to support agriculture producers across the world. Here are just a few of the innovative farmers and ranchers our investors have helped start or expand their operations.

Alex Davis started Dragon City Farms in 2020 in Dallas, Texas to bring fresh, healthy hydroponic produce to local communities. The farm’s produce can be found in local grocery stores and farmers market, and recently expanded into Dallas hotel restaurants including the Hyatt Regency.

Cass & Tandi Jesperson are a husband-and-wife duo who own and operate Bar T7 Cattle Company out of Okalaka, Montana. Bar T7 Cattle Co. raises and sells all-natural, Angus link steer and heifers to feeder buyers across the United States.

Derek Bailey is a third generation farmer and rancher that owns and operates Deep Creek Cattle Company with his family. The cow-calf, stocker, and feeder cattle operation provides beef to a diverse set of buyers in South Georgia, and runs an online direct-to-consumer store, Bailey Meats.

Todd & Grace Vranac started Harvest Farmacy in 2019 in Pollock, Texas to grow and promote the health benefits of elderberry. Using a vertically integrated model, Harvest Farmacy manages the whole supply chain, from elderberry farm production to processing to retail sales. The company currently sells its products through specialty grocers and local retailers, online, and farmers markets.

Jesse & Linnea Nelson are a husband and wife team leading American Beef Ranch, an Idaho-based ranch that produces the highest quality organic grass-fed, grass-finished beef and lamb while using resources in the most efficient way possible. You can purchase their beef here.

Jonas Guenther, Daniel Bernstein and Michael Udovich began cultivating microalgae in a controlled indoor environment in Brooklyn, New York in 2016. We Are The New Farmers is an urban farm with origins in an academic research project at NYU that uses production techniques that ensure the purest and cleanest spirulina product possible.

By Cami Froneberger

Majestic and powerful animals, the bison remains one of the most admirable symbols of the American West. These icons have roamed our prairies and rangelands for thousands of years. Once in numbers reaching into the tens of millions, bison became the life-source for Native Americans who utilized every part of the animal. However, Westward Expansion brought European Americans to the areas occupied by Native American tribes in the 1800s and soon the U.S. Army sought to remove these tribes by removing their main food source: bison. By the late 1880s, the great herds of bison that once dominated the landscape were nearly gone. If not for the efforts of ranchers Charles Goodnight of the Goodnight-Loving cattle trail fame, showman and entrepreneur Charles “Buffalo Jones,” Native American Samael Walking Coyote, partners Michel Pablo and Charles Allard, and “Buffalo King” Scotty Phillip, the species would have ceased to exist. Now, herds are being restored through conservation efforts with more livestock producers joining the movement.

Producers Turning To Bison

With producer interest in the native ruminant growing, universities and associations began providing information on how to manage and maintain the species. In 2021, the South Dakota State University Center of Excellence for Bison Studies in collaboration with the Texas A&M AgriLife Extension Service published “Getting Started with Bison Ranching”. A surge in the desire to raise bison is the increase in popularity due to economic opportunities presented from production as well as contributions to land and resource conservation and sustainability.

Bison Ranching

Bison ranching comes with unique challenges. Though it has some similarities to cattle ranching, there are significant differences to be accounted for to ensure long-term sustainability and profitability. A hardy species, bison tolerate hot climates to that of southern Texas and colder climates to that of northern Canada. A major characteristic of bison is their utilization of native forages that may not be palatable to cattle. Bison also require less handling than their domesticated counterparts. Because these animals are not domistsicated, they are more wild, larger, and stronger. Getting started in raising a bison herd requires adequate preparation along with the right management approach.

Growing Efforts & Future for Bison

Recent years have seen an increase in private herd sizes as markets and consumer demand grow, making bison ranching financially attractive. Reintroducing bison to the Great Plains and prairie landscapes they once roamed freely is an important responsibility that producers do not take lightly. These magnificent creatures provide vital restoration to these lands as well as added nutritional benefits to any diet. Bison is a highly nutrient dense food because of the proportion of protein, fat, mineral, and fatty acids to its caloric value. Innovative producers are striving to increase their profit margins by utilizing more of the animal and creating value-added products such as bison jerky and other snacks.

As herds continue to grow and bring restoration to America’s rangelands, so do opportunities for investors to get involved. The global grass-fed meat market (including bison) is predicted to develop at a CAGR of 5.4% from 2023-2033 with the market currently standing at $13 billion dollars. Now is the time for investors to join in the efforts to bring these icons back to their native soil and help provide consumers with high-quality products.

By Alexander Davis, Harvest Returns Intern

In 2023, many athletes have looked to agriculture to invest their earnings and secure their financial future. In January, over 20 athletes led by Cincinnati Bengals quarterback Joe Burrow and Boston Celtics forward Blake Griffin purchased a 104 acre farm in Iowa through an athlete investment program, Patricof Co. These athletes sought to invest in agriculture both to support American farms and farmers, as well as investing in a sustainable and safe asset with historically reliable returns.

Investing in farmland isn’t a new concept, with farmland investing having consistent annual returns and being a low-volatility asset. Despite this, however, farmland investing was often overlooked in the past and has only recently begun gaining more traction.

According to AgAmerica Director of Business Development Pat Spinosa,“We are losing land every single day, and that is an asset that continues to appreciate year-over-year. So not only is it a necessity for the country, but it’s also a good investment.” Spinosa recently interviewed Buffalo Bills quarterback Josh Allen on his podcast, Like a Farmer, to discuss the subject. Both private investors and companies are looking to purchase farmland, and even international investors are seeking American land.

Pro athletes have also taken an interest in animal protein investments, especially when produced with regenerative methods. Superbowl MVP and Bills’ line backer Von Miller studied poultry science at Texas A&M University and owns an organic chicken farm in Texas.

Why Invest In Agriculture?

There are a variety of reasons for potential investors to consider a farm or a ranch for their next investment.

Consistent Returns:

Farmland investments offer a consistent rate of return, averaging 10.74% since 1991. Compared to most other assets, farmland is extremely low-volatility, such as in Q1 of 2020, farmland values decreased by only 0.1% while the stock market decreased by 19.8%.

Rising Values:

 In recent years, from 2021-2022, land values rose by 12.4% and cash rent for cropland rose by 5%. Demand for animal protein is higher than ever and continues to grow as populations around the world become more wealthy.

Diversification and Low Recession Risk:

Agriculture investments are a great asset to diversify an investment portfolio. Historically, farmland values have remained uncorrelated to many popular assets, such as real estate, stocks, and bonds. They’ve even avoided significant drops in value in past recessions. Additionally, many athletes and investors want to make a positive impact on American agriculture, farmers, and even the environment. Investing offers a productive and lucrative manner of doing so.

A past struggle with farmland investing has been the barrier to entry. Buying enough land to farm costs a significant amount, and properly utilizing the land is difficult for uninformed investors. Fortunately for investors, in the last 15 years significant advancements have been made in farming investing, with platforms like Harvest Returns making the industry more accessible to average investors.

Though most people are likely familiar with RNA (specifically, messenger RNA) technology from its application in COVID-19 vaccines, few have probably heard about its potential uses in agriculture. 

Understanding the RNA Technology

Two types of RNA technology are applicable to agriculture: single strand RNA (ssRNA),  and double strand RNA (dsRNA). The best known examples of ssRNA are COVID-19 vaccines, which comprise a particular type of ssRNA called messenger RNA (mRNA). When it’s injected in a mammal, it elicits the production of a protein; for example one of the many proteins produced by a virus. Such a protein is not infectious. On the contrary, it teaches the body of the mammal, when the same protein shows up (this time the virus itself), how to destroy it. Thus, it behaves like a vaccine. 

The second type of RNA, i.e., dsRNA, has a similar shape as DNA; it is a double helix; however, it is made of RNA instead of DNA. In agricultural applications, the dsRNA carries the information of a mRNA that encodes a protein vital to the target pest. However, dsRNA is disguised as a virus. The target pest eats the dsRNA and its cells mistake it for a virus and destroy the mRNA they find in the cell having the same sequence as the dsRNA. This effect is called RNA interference (RNAi). Since the dsRNA has the same sequence as one of the pest’ own vital proteins, that vital protein is not made anymore and the pest dies. In a sense, the pest kills itself. 

4 Broad Uses of mRNA Applications in Agriculture

1. Crop improvement: mRNA technology can be used to improve crop yields, nutrient content, and resistance to pests and diseases. By delivering mRNA molecules into plant cells, researchers can control gene expression and manipulate specific traits in crops. 

2. Vaccine development: mRNA technology has been used to develop vaccines for livestock and crops. For example, researchers have developed a vaccine for porcine epidemic diarrhea virus (PEDV) using mRNA technology, which has shown promising results in protecting pigs from the disease. 

3. Pest control: mRNA technology can also be used to control pests by manipulating the expression of genes that are essential for their survival. For example, researchers have used mRNA technology to silence genes in the Colorado potato beetle, a major pest of potato crops. 

4. Functional foods: mRNA technology can be used to enhance the nutritional value of crops, such as increasing the levels of certain vitamins or minerals. This could have important implications for improving the nutritional quality of food for humans and animals. 

Overall, mRNA technology has the potential to revolutionize agriculture and improve food security by enabling the development of more resilient and nutritious crops. However, much more research is needed to fully realize its potential and ensure its safety and efficacy in agricultural applications.

Strong Market Potential in AgBioTech

The global market for agricultural biotechnology is projected to grow at a CAGR of 11.4% from 2020 to 2027, according to a report by Market Research Future. This growth is driven by factors such as increasing demand for food and the need for sustainable agriculture practices. mRNA AgTech companies are well-positioned to take advantage of this market growth with their innovative technology and potential to address key challenges facing the agriculture industry.

Government & Investment Support of mRNA Technology

Agriculture science companies implementing mRNA technology in their products range from start-ups to well established ag giants. The USDA has established programs to support the development of agricultural biotechnology, including mRNA technology. Many of the early stage companies have raised non-dilutive grants from the National Science Foundation or National Institutes of Health, but venture capital is also pouring into the space. As an example, Greenlight Bioscience solutions include crop management, plant protection, animal health, and vaccine development. The company has developed RNA-based pesticides to protect honeybees from parasitic mites and has raised $556.5 million over six funding rounds and went public via a SPAC valued at about $1.2 billion. 

Miami-based NanoSUR’s RNAi (RNA interference) pesticides show great promise, targeting specific genes in certain pests to “silence” or disrupt them. The customizability of RNAi pesticides allows them to be readily adapted to counteract and work around the inevitable development of pesticide resistance in targets. In the past, applying RNAi pesticides to farm acreage was commercially infeasible due to the high cost of RNA. RNA cost approximately $600 per gram, and 1-5 grams were needed per acre. Commercial pesticides were significantly cheaper, around $20 per acre, and so the possibility of using RNA as a basis for pesticide was impractical. However, new developments have led to a promising decrease in the price of RNA.

Investing in an early stage mRNA AgTech company can make sense for those looking to contribute to sustainable agriculture practices and take advantage of the growing market for agricultural biotechnology. With proven benefits in agriculture, strong market potential, and support from governments and investors, RNA AgTech companies are well-positioned for growth and success in the years to come.

Functional foods are foods that have been shown to have additional health benefits beyond basic nutrition. A functional food can include minimally processed, whole foods along with fortified, enriched or enhanced foods. Generally, these foods have a potentially beneficial effect on health when consumed on a regular basis and at certain levels. They also contain bioactive compounds that can help prevent or manage chronic diseases.

The concept of functional foods originated in Japan in the 1980s when government agencies started approving foods with proven benefits in an effort to better the health of the general population. Now, the global functional foods market is expected to reach $268 billion by 2027, and there are a number of reasons for this growth. People are becoming more interested in taking care of their overall health and well-being, and functional foods offer a natural and effective way to do this.

Added Nutrients, Added Benefits

A growing body of scientific evidence supports the health benefits of functional foods. Functional foods have been shown to help prevent or manage a variety of chronic diseases, including heart disease, cancer, and diabetes. For example, studies have shown that eating foods rich in omega-3 fatty acids can help to reduce the risk of heart disease.

Functional foods can also help to improve mood and cognitive function. Foods that are rich in antioxidants can help to improve memory and reduce the risk of Alzheimer's disease.

Functional foods can also help to boost the immune system. Studies have shown that eating foods high in probiotics can help to improve gut health and reduce the risk of infections.

Functional foods are also convenient and easy to prepare, making them a great option for busy people. Many functional foods are available in pre-packaged form, so you can simply grab and go. These offer a convenient way to get the nutrients that your body needs without having to spend a lot of time preparing meals.

Investing in Functional Foods

Aside from the additional benefits to health and well-being and substantial market growth, functional foods can bring positive impacts as an investment.

Innovation - The development of functional foods requires innovative research and development, which can lead to new technologies and processes that can be applied to other areas of the food industry.

Sustainability - Functional foods are often produced using sustainable and environmentally friendly methods, which can appeal to consumers who are concerned about the impact of food production on the environment.

Diversification - Investing in functional foods can provide diversification in a portfolio of food industry investments. This can help reduce risk and improve overall returns.

However, as with any investment, it is important to conduct thorough research and analysis before making any decisions. It is also important to consider the potential risks and uncertainties associated with investing in functional foods, such as regulatory changes or shifts in consumer preferences.

By Cami Froneberger

Commitment to a sustainable planet through supporting farmers is a key company value here at Harvest Returns. By connecting agriculturists with passive investors, we believe we can build a more resilient food system and help farmers stay in the business of farming. Our team is proud to share in our sponsors' success stories and continue to watch them grow every quarter.

Barnstorm

Agriculture robotics grows increasingly popular with producers and investors alike as automation helps fight labor shortages and inflation in the industry. Barnstorm AgTech was founded in 2020 and is a part of the revolution to provide farmers with robotics that can improve their operations. They are currently developing a system of easily transported “swarms” of tractor-like driverless vehicles called Barnstormers™. This autonomous system completes basic farm operations, such as seeding, tillage, spraying, and spreading.

Barnstorm founder and CEO, Parker Wells, is driven by his own experiences as a 4th generation farmer managing a 6,000 acre farm in Saskatchewan.

Barnstorm is part of a broad trend in the robotics industry called Robotics as a Service (RaaS). This allows for the company to offer services rather than the direct sale of equipment. With this in mind, they have designed their Barnstormers have a unique form factor which is specifically tailored to efficient multi-vehicle transport. Currently, the agriculture robotics market is forecasted to reach a revenue of 8.83 billion dollars by 2025 with a CAGR of 24.7%.

American Beef Ranch

Idaho-based American Beef Ranch (ABR) is dedicated to becoming the industry standard in grass-fed, grass-finished beef and lamb production. They are setting regenerative production standards that they hope will be an example other operations can replicate, opening opportunties for them to share their knowledge through teaching their own grazing schools, hosting other industry experts to teach schools, and through consulting services. Primarily focusing on the Red Angus cattle breed and Dorper sheep, they also hope to provide the highest quality breeding stock to other producers.

With over 10 years of experience under his belt, Jesse Nelson, owner of ABR, understands the importance of attention to detail in providing high quality meat products. He, along with his wife, Linnea, are passionate about the future of ABR and keeping family values at the core of their operation.

The demand for high-quality protein continues to grow with consumers seeking more nutritional and environmental benefits. Grass-fed livestock are generally lower in calories, contain more healthy omega-3 fats, and are more nutrient-dense than grain-fed livestock. With a CAGR of 14.72%, the global grass-fed beef market is expected to grow to $39.95 billion from 2020 to 2025, giving American Beef Ranch a bright future ahead.

Aquaco

By sustainably producing the highly coveted Florida Pompano fish, Aquaco is providing consumers with the confidence that they are receiving fresh, high-quality seafood. The company's cutting-edge biosecure facility contributes to sustainability and a small carbon footprint thanks to biofilters that allow for 97% of its water to be recycled. Their production also actively reduces the impact of commercial fishing on Florida waterways. 

They also up-cycle fish waste into fertilizer for local organic farms and implement a delivery tote recycle program that eliminates unnecessary packaging. Raising Florida Pompano in an indoor recirculating aquaculture system (RAS) system allows for control at every level, ensuring the water quality and overall environment is precisely what each fish needs to grow comfortably.

Joe Cardenas, Founder and CEO of Aquaco, is confident that his company can help build the aquaculture industry in the state of Florida while proving their sustainable business model. 

Rocky Mountain Reclamation

On a mission to restore soil biodiversity, Rocky Mountain Reclamation (RMR) has worked for over 40 years to revegetate land across the Western US. They have become a leader in research and development in the revegetation industry as well. Using their fine-tuned techniques has allowed them to restore land that has been used for industrial purposes such as mining or wind energy development.

Revegetation is a regenerative practice used in restoring areas that have seen damage from urbanization, invasive weed species, mining, or degradation caused by flooding, drought, or erosion. RMR is proud to deploy their team of healers, known as the “green team,” to heal the land and natural environment after significant disturbances. They complete work for the National Park Service, private ranches and farms, and many other public and private entities.

The company was recently acquired by Sage Green, LLC and under new leadership by CEO Eric Hayes.

Agrivoltaics, also known as "dual-use" farming, is the practice of combining agriculture and solar energy production on the same land. This innovative approach has gained significant attention in recent years, as it offers a range of benefits, including increased food production and renewable energy generation. Explore some of the key reasons why investing in agrivoltaics is a wise decision.

1. Maximizing Land Use Efficiency 

Agrivoltaics allows farmers to use their land for two purposes simultaneously, making the most efficient use of their resources. Instead of having to choose between using their land for agriculture or solar energy production, farmers can do both. This means that they can generate income from food production and the sale of renewable energy. 

2. Increased Crop Yields

Agrivoltaics has been shown to increase crop yields in some cases by as much as 60%. This is because the solar panels provide a range of benefits to the crops growing beneath them. They offer shade, which can help to reduce water loss through evapotranspiration and lower temperatures, which can reduce heat stress on the crops. They also help to reduce wind speeds, which can prevent damage to plants and reduce water loss through evaporation. Furthermore, the panels can be adjusted to optimize the amount of light that reaches the crops, which can also improve yields.

3. Reduced Water Usage

Water scarcity is a significant issue in many parts of the world, and agriculture is a major consumer of water resources. Agrivoltaics can help to reduce water usage in agriculture by providing shade to the crops, thereby reducing water loss through evapotranspiration. Additionally, solar panels can be used to power irrigation systems, making them more sustainable and reducing the reliance on fossil fuels.

4. Increased Renewable Energy Generation

Agrivoltaics can help to increase the production of renewable energy, which is crucial for addressing climate volatility. By combining solar energy production with agriculture, farmers can generate a significant amount of renewable energy without taking up additional land. This can help to reduce our reliance on fossil fuels and mitigate the impacts of climate change.

5. Diversification of Income Streams

Agrivoltaics offers farmers the opportunity to diversify their income streams. Instead of relying solely on income from agriculture, they can also generate income from the sale of renewable energy. This can help to stabilize their income and make them more resilient to economic and environmental shocks. 

The French company Sun’Agri has developed Agrivoltaics systems that sheltered vineyards from extreme heat conditions and reduced water consumption by the vines from 12-34%. In the Netherlands, H2arvester’s unique mobile solar panels solar panels move autonomously on agricultural land to produce renewable electricity without a loss of crop production. Other farmers in the United States are exploring how grazing sheep on solar farms can reduce the need for mowing around the panels while producing quality grassfed livestock. Agrivoltaics is a promising approach to addressing some of the major environmental challenges farmers face, while increasing food production and returns.

By Cami Froneberger

Commitment to a sustainable planet through supporting farmers is a key company value here at Harvest Returns. By connecting agriculturists with passive investors, we believe we can build a more resilient food system and help farmers stay in the business of farming. Our team is proud to share in our sponsors' success stories and continue to watch them grow every quarter.

Capra Foods

As the only certified lamb program in the country, Capra Foods has set a standard to produce the highest quality lamb. This has allowed them to become the top producer of premium Dorper lamb in the U.S. Their deep roots in the historic ranching community of Goldthwaite, Texas connects them to family ranchers with generations of expertise with a dedication to regenerative ranching practices as well. These regenerative practices are implemented throughout their network of ranches helping to increase biodiversity, enrich soils, enhance ecosystems, and more.

Recently, Capra Foods has expanded their product supply to all Central Market stores throughout the Lone Star State as a part of their full-time fresh lamb program. Their popular lamb tamales can also be found in any Central Market or Costco in Texas.

Since Dorper sheep are bred for meat, there is no gamey flavor from lanolin produced by wool sheep. Lamb is also an excellent source of protein, vitamins and minerals, and is especially high in B vitamins, zinc, and iron. Capra Foods wholeheartedly believes in the benefits of lamb in the diet and what they proudly call the “Dorper Difference”.

Healthy Cow

Healthy Cow is on a mission to help dairy farmers proactively care for their cattle with innovative health solutions. In 2014, founders Richard Strafehl, Louis Hui, and Dr. Edward Robb brought their backgrounds in biology and veterinary medicine together to start making a difference in dairy cattle health.  Their holistic method of using science-based solutions also allows dairy farmers to produce higher-quality milk.

Their first product, ProPreg™, utilizes a blend of natural prebiotics and probiotics to maintain a healthy reproductive microbiome during the critical transition period of dairy cattle. This provides defenses against pathogens and infections. ProPreg™ also supports initiatives on dairies to reduce the usage of antibiotics and disinfectants.

Healthy Cow is now showcasing ProPreg™ to many ag-accelerators. They have also established research and distribution partnerships with DFA (Dairy Farmers of America), Kent Nutrition Group, and EastGen Genetics. Since recently launching ProPreg™, the team now looks forward to building their product line to positively impact dairy cattle health.

Peat

Utilizing food waste to grow mushrooms is just one innovation behind Peat. The New York-based company is dedicated to simplifying the process of upcycling food scraps from food establishments and turning them into delicious mushroom varities. Their process is sustainable, affordable, and transparent.

Peat tracks food waste data on a daily basis, making it easy for their customers to track their ESG goals. They also track waste to produce, so their customers know exactly where the product is from.

As one of the best decomposers on Earth, fungi break down food waste and sequester the carbon in their mycelium root network. Mushrooms also come with several health benefits making them an in-demand food. Peat can grow up to 18 different strains of mushrooms, and are currently focused on Lion's Mane, Blue Oyster, and Maitake. Their current space and equipment allow them to grow up to 500 lbs of mushrooms a week.

Precision Livestock Technology

When it comes to feedlot bunk management, cattle feeding behaviour, and herd health, Precision Livestock Technologies (PLT) has all the boxes checked. Their comprehensive machine vision sensor technology helps cattle producers track and monitor feeding decisions for their herd. The PLT System helps increase livestock quality, while also reducing labor shortages and identifying sick animals. 

The system consists of rugged camera units overlooking bunklines. The advanced artificial intelligence of the system can make accurate assessments of cattle within a feedlot herd. With information compiled into graphs and charts, they also make it easy for producers to analyze their data.

Precision Livestock Technologies recently announced the successful close of an approximately $1 million preferred equity financing, co-led by MLJ Fund 1, LP of College Station, Texas, and Checkmate Capital Group of Pasadena, California. They have also partnered with Checkmate Capital Group as their strategic and international advisor.

By Chris Rawley

Each year, we spend some time researching the latest trends in agriculture and food production that we believe will gain the most attention and traction with investors. Despite some slow down in the economy, we anticipate that 2023 will be another strong year for investments in agriculture across all segments. Below are a few areas we see as attractive to investors wishing to diversify their portfolios in agriculture.

Agriculture Automation

Labor shortages and wage inflation are impacting the bottom line of nearly every industry, and agriculture is no exception. Despite continued automation in the industry, agriculture remains a labor-intensive business, with key tasks including planting, weeding, thinning, harvesting, and product transportation across the supply chain. Over the past few decades, the number of people working on farms has decreased by 70% across both family and hired farm workers, exacerbating the problem.

Farmers who want to automate their operations are increasingly turning to robotics. The International Federation of Robotics reports an all-time high of 517,385 new industrial robots installed in 2021 around the world. Installations of robots have grown 31% year-on-year. Today, there are a record 3.5 million robots in the farming industry. For a specific example, according to market research firm IDTechEx, the size of the market for weeding robots is expected to grow 11 times over the next five years, up from $22 million in 2021. Robotics are also growing in downstream segments of the supply chain, including packing and processing. Robots such as those in the above video will mitigate labor shortages in food processing.

Supply Chain Resilience

Between lingering COVID-19 impacts, massive disruptions to the grain and fertilizer markets due to Russian aggression in Ukraine, and continued high transportation costs from increased energy prices, 2022 presented major challenges to the agricultural supply chain. 

Decentralization and localization of agricultural production will shorten supply chains to grow increasing amounts of food closer to where it is consumed to lessen supply chain impacts. Despite more than 2 million farms across the United States, farming of certain products is highly concentrated, especially in California, which produces over 68% of the foods and vegetables sold in the United States. Even more specifically, Monterey County California produces 61% of leaf lettuce, 57% of celery, 56% of head lettuce, 48% of broccoli, 38% of spinach, 30% of cauliflower, 28% of strawberries, and 3.6% of wine grapes sold across the rest of the country. Water, labor shortages, and other supply chain disruptions put some of these food chains at risk. 

Consequently, production of these crops will continue to disburse across the country, as technologies such as Controlled Environment Agriculture (see more below) continue to gain traction with investors and consumers.

In addition to food production, further investments in processing facilities across the country will build more robust supply chains. Investments in small, localized processing facilities will provide capital to create a more resilient animal protein supply chain.

Regenerative Animal Protein

Despite significant investments from venture capitalists, plant-based protein products have failed to live up to all of the hype in terms of nutrition, environmental impact, and most importantly, consumer acceptance. VC favorite, Beyond Meat has seen declining sales since its initial public offering, and a falling stock price to match. Private competitors in the faux meat business are also facing challenges. The prospects for the economic success of so-called “cultured” meat seem even bleaker.

The contrarian view is that animal-based protein will continue to be a growing industry worthy of investor dollars. For people who care about the climate impact of their investments, regeneratively raised livestock tackles the dual problem of food security and carbon capture. Environmental lawyer and regenerative rancher Nicolette Hahn Niman makes a compelling case in her extensively researched book, Defending Beef. According to Niman, more carbon resides in the planet’s soil than in the atmosphere and all plant life combined. Raising livestock in a way that rebuilds healthy topsoil may be the best way to reduce atmospheric carbon.

Regenerative ranching techniques boost soil biodiversity and organic matter, reduce erosion and run-off and capture carbon in the soil. Grass-fed and grass-finished beef production converts sunlight into grass into highly nutritious protein and fats with a positive impact on the environment. All across the country, ranchers are working on starting or expanding their regenerative operations, requiring patient capital. Research firm Markets and Markets estimates that the CAGR of the regenerative agriculture market will hold steady at 14% between 2022 and 2027, making it an attractive sector for investors.

Water Smart Investments

Water is a worldwide currency and agriculture production is extremely dependent on it. Agriculture irrigation accounts for 70% of water use globally. Producers in many regions will face increasing competition from non-agricultural users due to rising urban population density and water demands from industrial use and energy production. For many agriculture producers, 2022 brought extreme weather conditions that drastically impacted their yields and profitability. According to the National Integrated Drought Information System, more than 44% of the U.S. remains in drought conditions.

Implementing responsible and sustainable water management becomes even more important, and investments that support smart water management will become increasingly attractive. Several areas we are watching in this space include:

Hydroponics

Hydroponic farming allows for irrigation water to be recycled, recirculated, and reused. Some vertical farming systems use 95% less water than conventional field farming to grow the same amount of produce. Furthermore, recirculating water systems prevent agricultural chemical run-off which has been responsible for deadly algae blooms that cause red tides and oxygen depletion in the ocean.

Pivot Irrigation

Though capital-intensive, pivot irrigation systems help reduce water runoff and soil erosion and their use is growing by about 14% annually. Other precision agriculture solutions that manage water are being developed at a rapid pace by early-stage companies. Technology that incorporates water sensing and predictive insights, like that made by our portfolio company Agrology, will help growers better navigate challenging water conditions. 

Finally, land and agriculture investment in regions with water scarcity or that are drought-stricken may slow next year. Water-hungry crops, such as tree nuts, may become increasingly challenging to produce in some areas.

By Cami Froneberger

Commitment to a sustainable planet through supporting farmers is a key company value here at Harvest Returns. By connecting agriculturists with passive investors, we believe we can build a more resilient food system and help farmers stay in the business of farming. Our team is proud to share in our sponsors' success stories and continue to watch them grow every quarter.

Yellow Hammer Farms

Converting an empty warehouse in Birmingham, Alabama to an innovative hydroponic farm has helped Yellow Hammer Farms (YHF) provide fresh, locally-produced greens and herbs to urban consumers. Founder Frank Fitts IV and his wife, Jillian, are dedicated to carrying on the legacy of Frank’s grandfather who started the farm in 1993. Originally located in Tyner, North Carolina, the small 70 acre farm produced popcorn, a crop not readily available in the area. Now, YHF is dedicated to continuing the tradition of bringing products with low availability to a modern environment.

By utilizing hydroponic farming, YHF can grow their products twice as fast with 90% less water usage. This practice also requires less space than traditional farming that takes large tracts of land to commercially produce the same products. The greens and herbs are protected from outside pests and inclement weather that could be detrimental to yields. 

Yellow Hammer Farms recently launched their online store allowing them to offer local delivery and pickup to customers. Frank and Jillian also partner with local businesses to spread the word about YHF whenever they can. Ongoing partnerships include stores such as Piggly Wiggly and local restaurants. YHF also makes appearances at local farmers markets like The Market at Pepper Place. They recently partnered with Better Kombucha to provide fresh basil for their blueberry kombucha during the month of October.

VinWizard

For over 20 years the VinWizard team has worked with winemakers around the world to make premium wine more efficiently. Their wine production automation system enables users to monitor and control all aspects of winemaking processes, including water usage, pumps, grape crushers, humidity, CO2, and more, while minimizing production costs. A design with flexibility in mind, the system allows winemakers to adjust the simplicity or comprehension desired with the ability to add more control in the future.

Originally founded in New Zealand, the company is now based out of California where 81% of all U.S. wine is made and is the world’s 4th leading wine producer. Kelly Graves, CEO of VinWizard, acquired the company in 2021 after extensive experience as a California winemaker.

This system is now nationally recognized as the proven leader in winery automation.

Agrology

Sustainability is at the heart of the agriculture sensory systems produced by Agrology. The company’s Co-Founder and CEO, Adam Koeppel, spent nearly a decade building agriculture sensors in his basement before bringing his prototypes to the attention of his friend and colleague, Tyler Locke. Tyler, now the Co-Founder and CTO, knew a partnership with Adam could help them grow his impressive inventions into something greater.

After time and dedication, Agrology is now a Public Benefit Corporation with a commitment to farmers and the planet. Their ever-evolving sensory technology works to prioritize unique insights for specialty crops. Customers commonly use their systems to identify irrigation issues, track airborne compound exposure during fire season, optimize plant yield, and make comparisons across locations.

All this is possible because of machine learning and artificial intelligence technologies. These technologies allow the sensory system to monitor conditions and make accurate predictions for issues that will arise. The Agrology system is even equipped with technology that alerts the user's phone so they can stay updated in real-time. With easy-to-read formats, Agrology continues to make a difference in helping growers combat obstacles in their production.

Royal Caridea

Shrimp is the leading seafood consumed by Americans with population growth and consumers purchasing more high quality protein. Farming production of shrimp has outgrown conventional methods to meet demands. Producers are now moving to indoor farm facilities. Royal Caridea, an Arizona-based company, is one that is leading innovations in shrimp production.

These facilities will produce domestic, environmentally sustainable shrimp products. This is an important change given that the U.S. imports 1.5 billion pounds of shrimp annually from countries including India, Thailand, Ecuador and Indonesia. Consumers are typically buying frozen shrimp leaving much to be desired in the fresh, never-frozen market.

By utilizing their Gen 2 Shrimp Farming Technology (Gen 2), Royal Caridea is introducing transformative change with indoor vertical shrimp production. Their design actively reduces water usage and waste, energy consumption, and reduces land use by building systems in shipping containers. These factors allow their Gen 2 technology to be easily shipped and installed in any location worldwide.

The company recently launched a follow-on fundraising round for retail investors.

By Chris Rawley

Labor shortages and wage inflation are impacting the bottom line of nearly every industry, and agriculture is no exception. Despite continued automation in the industry, agriculture remains a labor-intensive business, with key tasks including planting, weeding, thinning, harvesting, and product transportation across the supply chain. Over the past few decades, the number of people working on farms has decreased by 70% across both family and hired farm workers, exacerbating the problem.

The next step to mitigate labor shortages in farming is robotics. The International Federation of Robotics reports an all-time high of 517,385 new industrial robots installed in 2021 around the world. Installations of robots have grown 31% year-on-year. Around the world today, there are a record 3.5 million robots in the industry.

A host of dynamic start-ups and established players are developing solutions to tackle various aspects of growing and harvesting crops and livestock. Agriculture industry thought leader Mixing Bowl Hub defines crop robots as "machines that use hardware and software to perceive surroundings, analyze data and take real-time action on information related to an agricultural crop-related function without human intervention." The Mixing Bowl, along with Better Food Ventures, the University of California's college of Agriculture and Natural Resources, and The Vine have collaborated to create a graphic of the crop robotics landscape that provides a nice summation of the work being done in this rapidly evolving field.

Robots are becoming more prevalent in the livestock and dairy industries to include animal health and robotic milking installations. Downstream in the supply chain, the food and beverage industry also face severe labor shortages that originated during the COVID-19 pandemic. In this space, robots also help enhance hygiene and food safety and their use has grown 18% globally year-over-year.

Investing in Ag Robotics

Robotics are capital intensive, and producers will face challenges adopting the new technology. Farming as a Service and leasing models will help ag robotics systems gain initial acceptance until direct sales can pick up. Private investment capital can also help, both to spur new technology development in early-stage AgTech companies and to assist early adopting farmers with equipment acquisition.

By Cami Froneberger

Women make up 36% of the total population of U.S. farmers according to the USDA’s 2017 Census of Agriculture. Aside from female farmers, ranchers, and farm workers, women hold numerous roles in the agriculture industry. Some work to market agricultural products or services, educate students or the public, conduct important agricultural research, or hold executive positions in companies directly involved with agriculture. Women are a vital aspect of agriculture and this was evident at the Women in Agribusiness Summit.

The 11th annual Women in Agribusiness Summit was held in Dallas, TX on September 26-28, 2022. The Summit, created by HighQuest Partners, boasted an attendance of over 800 women involved in agriculture. As an attendee, I was afforded the opportunity to network and connect with women in agriculture from across the globe. All three days included educational and empowering sessions helping bring new perspectives into many prominent talking points in the industry. I felt the most important feature of the summit was the all female panels allowing women of all ages to share their stories, experiences, and advice. I was able to hear insights from producers, company executives, human relations, marketing, and more.

As a proud supporter of women in agriculture, Harvest Returns was privileged to sponsor the attendance of Sandrine Mutezinka, a WIA student scholarship recipient. Sandrine is a student in the Master of Agribusiness program at Texas A&M University. It was a pleasure to be able to sit down and visit with her over lunch where we were able to share our passion for the industry.

“What an honor to be chosen as this year’s recipient of a full coverage sponsorship by Harvest Returns to attend the 2022 Women in Agribusiness Summit,” Sardine expressed. “This summit was such a truly exciting opportunity to learn more about the role and contributions of female executives, experts, and researchers while discussing the latest trends, innovations, and challenges in the food and agricultural sector. This experience has played a pivotal role in shaping my career, and I am grateful and proud to be part of the 800 plus strong women who make this industry great!”

Harvest Returns is committed to continuing to support women in agriculture. We are helping women-owned companies find a valuable connection with female investors.

Learn more about how creating a powerhouse duo can benefit you today.

By Cami Froneberger

There’s nothing quite as refreshing as biting into a perfectly ripe strawberry, or adding some satisfyingly round blueberries to the top of your yogurt. Berries are simply the perfect addition to your breakfast, snack, or dessert, purely for the taste factor. However, adding a tarty sweetness is not all that berries can do for you. The sweet treats are also a powerful superfood making them beneficial to your overall well-being. Consumers continue to make health conscious decisions when purchasing products, like freshly grown berry varieties, making them more popular among investors as well.

Berry Big Health Benefits

1. Berries contain antioxidants that help protect your cells and alleviate oxidative stress.

2. Berries are high in fiber making them a great aid in managing hunger and maintaining body weight.

3. Berries could help you live longer according to a professor at Harvard.

4. Berries provide potassium, magnesium, vitamins C and K, and prebiotics—carbohydrates that help promote a healthy gut.

5. Berries are heart healthy and can help boost learning and memory.

Building Your Portfolio With Berries

Aside from dietary benefits of fresh berries, they are utilized in various ways in pharmaceutical, cosmetic and personal care, dietary supplements, and food and beverages. Because of the versatile applications, berries stay in continual demand as 93% of consumers make health conscious choices. With health promoters driving significant sales, it is reported that the global berries market is expected to grow at a CAGR of 6.8% in the forecast period of 2022-2027. The growing revenue of the berry market makes them an attractive addition to any portfolio.

By Cami Froneberger

Commitment to a sustainable planet through supporting farmers is a key company value here at Harvest Returns. By connecting agriculturists with passive investors, we believe we can build a more resilient food system and help farmers stay in the business of farming. Our team is proud to share in our sponsors' success stories and continue to watch them grow every quarter.

Dragon City Farms

Located in the heart of Dallas, Dragon City Farms Inc. (DCF) strives to bring high quality specialty crops closer to consumers in urban areas. The vertical farm is owned and operated by Alex L. Davis III. His operation produces a variety of hydroponic lettuce, certain herb varieties, and microgreens, year round.

However, the list of produce does not end there. Controlled environment agriculture is an innovative field with ever-expanding commodities. Dragon City Farms Inc. is no exception. Davis has recently added strawberries and mushrooms to their list of produce. Mushrooms have gained popularity among DCF consumers with requests coming in to have them available at local farmers markets.

The growing operation has recently switched to a new online store platform and plans to expand their product range. Weekly and bi-weekly subscription boxes help keep DCF customers in supply of their favorite products picked fresh before shipping. Each subscription package contains a mixture of the following: head of lettuce, bag of salad, bag of arugula, two microgreens, two bunches of herbs, and half a pound of gourmet mushrooms.

Perennial Pastures

Regenerative ranching is a holistic approach that prioritizes land quality and focuses on sustainable practices such as rotational grazing, carefully controlling livestock density, and no tillage so as to maintain natural soil structure. It is Perennial Pastures mission to build deep topsoil and healthy grassland, while producing superior beef. The ranch, located in Santa Ysabel, California, is owned and operated by Kevin Muno Jr. Muno proudly leads his team while overseeing all aspects of the business, from the grazing and fencing plans all the way to the marketing strategy and farmers markets.

Perennial Pastures is continuing to make a name for themselves by producing high quality grass-fed, grass-finished, regenerative beef. Providing nutrition and sustenance from healthy soil, healthy plants, and healthy animals is the team's priority. Their best-selling product to date is the ancestral blend ground beef. The ranch’s online shop also offers a range of products sure to make your mouth water. From beef sticks, to hot dogs, to brisket, to steaks, and so much more.

Muno recently sat down with The Diet Doctor Podcast hosted by Dr. Bret Scher, a board certified cardiologist and customer of Perennial Pastures, to discuss the connection between soil health and healthy humans. “The closer you can get to nature, the more efficient and better life you can live,” Muno stated in his interview. Dedication to conscious land management, positive animal welfare, and regenerative agricultural practices remains Perennial Pastures top priority.

We Are The New Farmers

When you think of superfood, you probably don’t think of microalgae, like spirulina. We Are The New Farmers (WATNF) is changing that. The New York based company, co-founded by Dan Bernstein, Jonas Günther, and Michael Udovich, makes spirulina available in ready-to-use, never-processed frozen cubes. The blue-green algae grows naturally in freshwater lakes in Africa and North America, and comes with multiple health benefits.

One cube of WATNF frozen spirulina is equal to a full day’s fresh greens while two cubes provide the same amount of protein as one chicken egg. Along with high protein, spirulina is also a great source of iron, phytonutrients, and antioxidants in the diet. NASA has stated that the nutritional value of 1000 kg of fruits and vegetables equals one kg of spirulina. With more than 2,500,000 Americans making one or two smoothies per week, spirulina cubes are a perfect natural and beneficial addition.

Recently, WATNF was featured on the Forward Fooding FoodTech 500 list. The list features innovative entrepreneurial companies at the intersection between food, technology and sustainability. They were also honored as the “Smoothie Product of the Year” by Mindful Awards. WATNF additionally holds a prominent following on TikTok where their oat milk recipe video received 8 million views and went viral. The team at WATNF continues to stand by their statement, “We believe that microalgae will be an integral part of the solution we need to fix our food system.” By utilizing indoor growing facilities and partnering with carbon capture companies to feed the carbon-eating spirulina, WATNF is pioneering a sustainable and unique product.

PittMoss

Recently named “Best Potting Soil” by Better Homes and Gardens, PittMoss has grown and expanded from their humble beginnings as a kitchen experiment in 1994. The company now supplies numerous commercial greenhouses and nurseries across the nation.

Keeping material out of landfills is a priority for PittMoss. Their peatless potting soil is made from recycled cellulose fibers, like newspaper and cardboard. This allows gardeners to practice good stewardship of our planet. PittMoss has also been proven to retain more water and reduce the amount of leaching that would typically occur, while reducing both phosphorus and nitrogen runoff. Improved porosity also helps plants grow bigger and stronger compared to competing brands.

PittMoss officially launched their consumer retail product line from their headquarters in Ambridge, PA in 2017. The PittMoss customer base continues to grow with their proven success and sustainability.