Precision Agriculture Tools (including a Deep Dive into Irrigation)

Deep Dive into one of the nine categories in the Food is Investable Treasure Map, with a focus on irrigation

March 2025
10 pages
992 kB

Executive summary

Agricultural inputs and precision tools sit at the heart of a fundamental tension in farming: the need to raise yields and secure food supply, set against the environmental and social costs of how those gains are achieved. We call these the Productivity Imperative and the Sustainability Imperative.

This report examines how that tension is reshaping value pools across the farming inputs sector, with capital shifting away from chemical inputs and toward biologicals, resilient genetics, farm robotics, and mechanized irrigation. It maps seven investment segments where these dynamics are opening opportunities across venture capital, private equity, and infrastructure.

It then takes a deep dive into mechanized irrigation, the segment we see as most relevant across all asset classes, driven by escalating water stress that farmers now rank as their single biggest challenge and by the substantial capital required to build out on-farm and regional water supply infrastructure.

We do not anticipate a one-size-fits-all solution. A diverse portfolio of solutions will be necessary to accommodate the varying conditions of individual farms.

Key takeaways

Productivity meets Sustainability
Precision agriculture can optimize agricultural inputs to drive yields and food security while carrying real environmental and social costs.
Shifting Value
Capital is moving across the farming inputs sector into seven areas where we see an opening opportunities for investors.
Deep Dive on Irrigation
Why mechanized irrigation is a standout destination for private equity and infrastructure investors as water stress intensifies.