The Different Dimensions Of Investing In Agro-Tech
The world as we know it has now been infiltrated and reinvented by technology. It’s redefined what we understand as communication, how we spend, the kind and so cutting across industries. Even as many businesses reach new heights the Agricultural sector is one whose steady move to technologies we all have to be thankful for.
Known as Agro-tech, Agricultural Technology describes the usage Of technology in farming and other agricultural procedures. Having the increasing requirement for food and an ever-growing population, technology has been used to significantly increase farm output, to make predictions, to get much more, and financing.
Agro-tech has become something of a buzz word in Nigeria with lots of emerging. Nonetheless, these companies cut including artificial intelligence, precision agriculture technology, livestock technologies, contemporary greenhouse practices, indoor farming, and blockchain.
Among the most common forms of Agro-tech in Nigeria is crowdfunding. Employing programs businesses come up with bundles and investment alternatives where everyday individuals can invest some of their funds at fixed tenures and specific rates of interest. These companies use funds that are spent, leveraging economies of scale to carry out their processes and ultimately divide the gains together with the investors — and a number of them are not nearly as complex.
Clive Blacker, manager of Precision Decisions in a meeting, explained that that I Have seen easy text messaging services being used to increase yields and goal inputs in Africa. It does not have to be the most complex of technologies or detectors that help.
Together with the recent SEC regulations passed earlier this year in March saying that total fees payable parties to some crowdfunding dilemma shall not exceed 2 percent of their total funds raised” There are no limitations to how much funds these platforms can receive from investors.
Large-scale investment in plantation automation and precision agriculture
FAR estimates that 20–40 percent of crop yields are dropped Each Year To pests and diseases, in spite of the use of around 2 million tonnes of pesticide! With the use of smart devices, however, farmers can spot crop enemies earlier to allow precise chemical application.This is exactly what systems like farm automation and precision agriculture attempt to achieve.
Precision technology utilizes technology such as soil testing to Increase the return of smallholder farmers.
Institutional investors or financial institutions, typically fund these companies, as a result of their large scale. They rely heavily on external financing.
There is also the option of creating your Agrotech business at any level of the value chain out of financing, Concerning logistics, or even technology to tech-based manufacturing.