A group of US agri co-ops have joined forces on “a bold initiative aimed at harnessing the strength of the cooperative model to fast-track the discovery, investment and adoption of breakthrough technologies to support farmers, their businesses, and their communities”.
Participants in the Argue Growth Partners project include Minnesota-based Land O’Lakes, one of the leading players in the US co-op and dairy sectors, alongside Keystone Cooperative (Indiana), Central Valley Ag (Nebraska), Farmers Cooperative – Dorchester (Nebraska), Farmward Cooperative (Minnesota), Alabama Farmers Cooperative, and GreenPoint Ag (Alabama).
AgRogue Growth Partners will be managed by Radicle Growth, a leading ag tech investment firm, which will be tasked to help identify and vet cutting-edge startups from around the world.
Announcing the partnership, Land O’Lakes warned that recent cutting-edge innovation in agri tech has met “resistance at the farmgate” which means it fails to reach its potential.
Pointing to the “long history” in its own co-operative system of driving adoption of tech, Land O’Lakes said the coalition of retailer-owners will invest up to US$7m in each of 10 to 15 companies focused on improving crop inputs, agri data, supply chain processes, business models and more.
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“We believe the key to jumpstarting the adoption of modern ag technologies lives in the partnership and trust between retailers and growers,” said Jason Trusley, senior vice president and chief strategy officer at Land O’Lakes.
“This platform represents a focused strategy that builds on the strength of Land O’Lakes’ co-op model and our retail owners to assist Radicle Growth in finding, funding and scaling new innovation to help ensure our system remains at the leading edge of ag tech, and US agriculture remains competitive on a global stage.”
Land O’Lakes said AgRogue will: invest in and scale innovative technologies, business models and systems that drive on-farm impact; pool resources – including capital, talent and market insights – to access proprietary ag innovations beyond traditional channels; and accelerate early adoption by leveraging the trusted, local relationships between participating retailers and farmers.
The co-op adds that the launch comes at a “pivotal moment for US agriculture”, with net farm income for crop producers remainsing persistently low, while public funding for agricultural research has declined to 1970s levels. At the same time, global competitors like China have dramatically increased their investments, it warns.
“Right now, we’re seeing a wave of necessary innovation stall before it reaches the farm gate – often lacking the local trust and infrastructure needed to succeed,” said Brett Bruggeman, chief operating officer and executive vice president of agri business at Land O’Lakes. “As one of the largest farmer- and retailer-owned co-operatives in the US, we know our retail-owners are uniquely positioned to bridge that gap and get proven innovation into farmers’ hands faster.”
“AgRogue Growth Partners represents an exciting new chapter in agricultural innovation, driven by a commitment to farmer success,” said Kevin Still, president & CEO of Keystone. “By uniting our strengths, we’ll focus on creating new opportunities for farmers to thrive – providing them with new tools and resources they need to overcome industry challenges and grow a more reliable, abundant food supply.”
