Agritech – sowing the seeds to Britain’s farming success
Agritech is worth an estimated £13bn to the UK economy, but new research from Barclays finds that while six in ten farmers plan to adopt technological innovations, they are not being provided with the support needed, despite its potential to improve productivity and bottom lines.
Barclays has been working with the UK agricultural sector for over 280 years and lends £1 in every £4 to the sector. Its latest report, Agritech: supporting the future of farming draws on insights from farmers and Agritech companies to highlight key barriers slowing the adoption of such transformative technologies. Financial challenges coupled with perceived lack of government support were highlighted as the primary obstacles.
Almost half (45%) of farmers surveyed cited an unclear return on investment and extensive upfront costs (41%) as key financial barriers, followed by a lack of knowledge on how best to use the technologies (24%).
Against a challenging political backdrop, farmers felt there was more that the government could do to support them, from providing clarity around long-term policy (71%), providing more support and guidance on sustainable farming practices (48%), to providing overall support for and promotion of UK farms (48%).
The report also highlights the risk the UK could face in falling behind other geographies if it can’t get the supporting supply chain and ecosystem aligned. One company executive quoted in the report called out the difference between the UK and Europe, “What I’m seeing in continental Europe is a real joined up approach from farmer to manufacturer, universities are involved, etc. I don’t see that in the UK – in fact, I’ve seen the reverse.”
Barclays is calling on government to address these barriers and spearhead the development and adoption of this critical industry, through three key actions:
1. Develop and communicate a clear national strategy for the agriculture transition, clearly setting out the role Agritech can play
2. Provide broad financial support for both Agritech development and adoption, including guarantees and deploying targeted support via the National Wealth Fund and British Business Bank
3. Create a catalytic ecosystem-wide hub through the combined UK Agritech centres[2], bringing together actors from across the sector to enable better collaboration, as well as develop a dedicated skills programme to support the domestic talent pipeline
Barclays, in parallel, is renewing its Eagle Lab partnership with the University of Lincoln. Launched in 2020, the partnership is focused on supporting agricultural start-ups and entrepreneurs, providing access to facilities including a dedicated robotics lab, as well as to experts across the industry.
Abdul Qureshi, managing director, Business Banking, Barclays, said: “Agritech will transform the UK’s farming landscape. From drones, AI to robotics, Agritech is supercharging an industry that feeds us all. At a time when farming is being asked to do more with less, we recognise it will take a collective effort to create the right enabling environment, but if we get this right, Agritech can help our farmers, and play a meaningful role in both protecting and driving forward one of Britain’s most vital sectors. As the government develops its 25-year agriculture roadmap and national food plan, there is no better time.”