In this article, we discuss the 5 new innovative agricultural business ideas. If you want to read about some more innovative agricultural business ideas, go directly to 15 New Innovative Agricultural Business Ideas.
5. Agri Tourism
The growth of urban areas worldwide has created a longing for village life among city dwellers in the past few centuries. Only recently have farmers begun to take advantage of this opportunity. In farmhouses that are big enough, farmers are now offering tourists lodging and food to provide an authentic farm experience that can be counted as agricultural tourism. For many city folk that live far away from the farm, the actual process wherein crops are planted and livestock reared is a thrilling break from the urgency of the city life. Farmers can list these experiences directly on applications like Airbnb and Booking. These provide direct access to consumers and eliminate the need for middlemen. Latest research suggests that the agri tourism market was worth more than $58 billion in 2022. The market is expected to more than double in size in the next five years to reach a value of more than $118 billion by 2028.
4. Herbal Products
The demand for herbal products has been skyrocketing in recent years. Products such as juices of bottle guard or bitter guard, and cosmetics like Aloe Vera are easily manufacturable at farms and can be sold for mouth-watering prices in the open market. More farmers are now shifting their attention towards these business opportunities. The demand for pure herbal products has been increasing as processed food and beauty products have health-related side effects that consumers want to avoid. According to Fortune Business Insights, the global herbal product market size was valued at more than $150 billion in 2021 and expected to reach nearly $350 billion by 2029, growing at a compound annual growth rate of 11.6% during the time. Even big brands have developed herbal product ranges to take advantage of this exploding business opportunity in the agriculture sector.
3. Floriculture
Farmers can dedicate a portion of their land for growing flowers and can reap tremendous rewards from this investment. Flowers are in high demand during the holiday and wedding seasons across the world. Flowers can be grown at relatively cheaper prices than other plants and are sold at a healthy premium. Since their shelf life is not that long, it is possible to use the land allocated to flowers for some other purpose in the off season. The flower sector is especially interesting for investment as supply chain challenges, labor shortages and poor growing conditions have led to a global shortage of fresh flowers in the past few months. This has created a surge in demand and prices are through the roof. Millions of weddings take place in the United States alone every year. This represents a significant revenue opportunity for farmers who grow flowers.
2. Clean Technology
The clean energy revolution has reached the agriculture world as well. Farmers are increasingly looking towards clean tech options like electric tractors, solar powered wells, and biofuels to maintain sustainable farms which can essentially function forever. The costs associated with making clean tech purchases are reducing and the governments are also incentivizing the purchase of clean tech. For example, the Canadian government has dedicated more than $200 million towards subsidies aimed at helping the adoption for clean tech at farmlands. Startups like Agrisoma are offering products that increase the oil content in oil seed crops. This helps create more powerful biofuels for farmers that can be used for a variety of purposes. Agrisoma has already raised more than $35 million in funding over five rounds.
1. Nanotechnology
As businesses make smaller things smarter, there is a growing interest in the use of nanotech for smarter agricultural practices. For example, nanoparticles that are organic can be used to assess oil health, deliver fertilizer or pesticides, and can also be used for smarter packaging. The adoption of this tech has led to the popularity of precision agriculture, a form of agriculture that targets monitoring at the cellular level. For example, one Canadian startup named Vive Crop Protection, which has raised more than $75 million in funding over six rounds, is offering farmers nanotech to improve fertilizer and pesticide delivery. This helps farmers dramatically bring down their crop production costs and also increases yield.
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