By Manuel Fuertes, CEO of Kiatt
The protests initiated by French farmers spread across Europe like wildfire, reaching Spain with equal intensity. The tractor demonstrations arrived in our country to raise the voice of farmers against the sector’s crisis and the European Union’s agricultural policies. Although the volume of protests seems to have diminished, or at least the noise has lowered, the problem of European agriculture persists.
Farmers are demanding a regional, national, and European action plan that simplifies bureaucracy and improves their conditions regarding prices, production costs, and streamlining of the Common Agricultural Policy (CAP).
Among the farmers’ demands is ending unfair competition from third countries and revisiting international trade agreements to restore community preference and ensure food sovereignty. An example of how we have lost food sovereignty can be found if we look back a few years and review Spain’s agricultural trade balance in 2021, before the conflict between Russia and Ukraine began.
In fact, according to data from the Ministry of Agriculture, Fisheries, and Food, Spain imported a total of 4.7 million tons of corn and 3.6 million tons of wheat in the first half of 2021. Estimates indicate that 30% of the corn and 40% of the wheat came from Russia and Ukraine. But why do we buy it abroad? Because of its quality, its price, and the lack of domestic production to meet internal demand, exacerbated by the pandemic.
Regulating agricultural and livestock activity is positive and necessary, but regulatory bodies must listen to professionals in the field and understand that the regulatory framework alone is insufficient without accompanying scientific and technological alternatives. These alternatives must create a favorable environment and allow our primary sector to remain competitive in a globalized world. They must encourage a transition that agriculture is already undergoing by promoting agrotechnological solutions that provide alternatives to the limitations proposed by legal frameworks and adapt to the sector’s specific characteristics in each country. A one-size-fits-all approach is not feasible.
Technology dedicated to optimizing agricultural processes helps achieve better qualitative and quantitative results while reducing environmental impact and adopting more sustainable practices. These technologies enable the development of precision agriculture projects and crop diversification. The use of drones and sensors increases resource efficiency and provides specific data on the land, which can be leveraged to maximize agricultural productivity. An example is John Deere’s variable-rate seeding solution, which increases production, reduces costs, and effectively addresses decreasing precipitation by maximizing available water usage.
Another example is Constellr, a developer of space infrastructure designed to measure water, temperature, and carbon levels, providing insights into vegetation and soil health. Projects like this aim to apply technology sustainably in agriculture. The great interest they are generating has allowed Constellr, still in its seed stage, to secure funding worth 30 million euros.
On the other hand, regenerative agriculture offers a unique approach by focusing on soil restoration and improving biodiversity, water cycles, and overall ecosystem health. It aims to create sustainable agricultural systems that benefit the planet. This practice includes techniques such as crop rotation, direct seeding, animal integration, and reducing pesticide and chemical fertilizer use.
The benefits of regenerative agriculture are well-documented, as is its profitability. This is evidenced by the presence of large companies and significant investments. One such example is Indigo, a provider of plant microbiome solutions, which increases crop yields using a genomic microbe database to predict the most beneficial microbes for crop health and apply them as seed coatings. The project raised $250 million in a funding round closed after the summer, bringing its total capital to €1.73 billion and its valuation to €3.87 billion.
Another measure to adopt is biopesticides, which are advanced pesticides derived from natural materials such as animals, plants, bacteria, and even minerals. They are a key component of pest management strategies, with the main goal of reducing reliance on synthetic chemical pesticides.
In addition to their numerous benefits, biopesticides are cost-effective, and the market is experiencing substantial growth with the emergence of new companies offering strong biopesticide solutions, such as Vestaron and Invaio Science. Projections suggest the market will reach $21.8 billion by 2033.
Finally, carbon sequestration has emerged as a new income stream for farmers. Crop rotation, direct seeding, and organic waste management increase carbon levels stored in the soil. Beyond contributing to the reduction of greenhouse gases, it becomes an additional income source for farmers, as they can sell carbon credits to companies that need to offset their emissions.
A market has developed around buying and selling carbon credits, as achieving net-zero emissions by 2050 will require a significant contribution from carbon credits. According to McKinsey forecasts, global demand for carbon credits will increase 15-fold by 2030 and 100-fold by 2050.
Equally interesting as the carbon credit market is the technology surrounding it, which facilitates the buying and selling of carbon. An example is Yard Stick, an innovative technology that enables quick and simple carbon sequestration monitoring. Its partners include Toyota Ventures, Microsoft Climate Innovation Fund, Lowercarbon Capital, and Bill Gates’ Breakthrough Energy Ventures.
Innovative science, technology, and investment are the only answers to help improve our agriculture sector, which has its own unique characteristics. Spain has a great diversity of climates, topographic conditions, and soil types, so agriculture in Valencia is completely different from that in Burgos or Ribeira Sacra. The country’s agricultural sector needs help, and it is time to support farmers, listen to them, and offer scientifically proven solutions before imposing laws that limit our food sovereignty.
