Editor’s note: Agtech Seedlings is a weekly roundup of the latest in agriculture technology news, digging into venture funding, product announcements and other innovation milestones. Have news to share? Email us here.
Plenty closes indoor lettuce farm to focus on strawberry production
Vertical farming startup Plenty said it would close its flagship indoor lettuce operation in Compton, California, as part of a strategic shift toward strawberry production.
Plenty said a combination of higher business costs in California, including rising energy prices, "made operating here challenging." In September, the company opened what it said was the world's first indoor farming facility for strawberry production at scale in Richmond, Virginia.
While most indoor farming operations have focused on leafy greens, disease challenges and rising production costs have pushed many of these once-promising startups out of business. Plenty is moving toward strawberries to compete with startups like Oishii, which has seen booming demand for boutique berries.
Plenty announced a joint venture with Abu Dhabi-based Mawarid Holding in July to expand indoor strawberry production across the United Arab Emirates and other states in the Gulf Cooperation Council.
The Compton farm, which opened in 2023, was Plenty's first commercial operation and had the capacity to grow 4.5 million pounds of lettuce annually.
"Plenty’s future is in growing strawberries because they fill a supply gap, provide a locally grown product with peak-season flavor year-round, and command a premium price," the company said in a statement posted to its LinkedIn.
Growers Edge acquires fintech Aquaoso to streamline farm lending process
Growers Edge, which partners with retailers to offer incentives for farmers adopting new solutions and practices, acquired agricultural lending software provider Aquaoso Technologies as it looks to build out a comprehensive platform for banks to assess agricultural risk.
Aquaoso, which does business under the Agcor brand, provides lenders with mapping, data and analytics software to help them better identify climate risks when calculating a farm’s land valuation.The product is used by major lenders including Golden State Farm Credit, American AgCredit and MetLife.
Growers Edge said the acquisition will support a long-term vision of building a platform to facilitate everything from sales enablement to loan underwriting, according to a post on its LinkedIn. The company has expanded its RangeAg farmland valuation tool over the last year to cover 144 million acres, or over 50% of all federally-insured farmland in the United States.
"As we’ve built out advanced land valuation models at Growers Edge, Agcor has developed close partnerships with agricultural lenders by providing them with the analytical tools they need to build trust-based relationships with borrowers,” said Matt Hansen, CEO of Growers Edge. “The combined dataset, analytics engine, and suite of software tools will reshape the landscape of agricultural lending.”
Financial details were not disclosed.
Sound Agriculture raises $25M to stimulate plant growth without conventional fertilizer
Sound Agriculture, a startup offering more sustainable fertilizer options by boosting a plant's natural signals, raised $25 million from investors to scale its portfolio and offer farmers financial incentives to move away from conventional crop protection products.
The company's Blueprint and Source products help growers access more nutrients with less synthetic fertilizer. The solutions can enhance nitrogen uptake or unlock stored phosphorus in the soil, improving nutrient availability.
Sound said its products have reached 2 million acres in four years. The company aims to scale its portfolio "across new products and geographies," according to a release.
This year, the startup unveiled a grower incentive program rewarding producers that use Source to make the switch away from conventional fertilizers. Growers can receive $10 per acre for replacing 25 pounds of nitrogen or phosphorus with Source, and also benefit from a guaranteed yield protection program that offers $100 per acre cash back.
The latest fundraising round was co-led by BMO Impact Investment Fund and S2G Ventures.
"Sound has consistently demonstrated resilience and growth, standing out as a leader in sustainable agriculture," Marc Khouzami, managing director at BMO Impact Investment Fund, said in a statement. "The company's commitment to cutting-edge science, building a world class team, and innovative business models has driven tremendous value for growers."
