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agricultural technology

For Ag Tech, 2021 Was a Year of Acquisitions, Mergers, and Growing Collaborations

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In 2021, agricultural technology moved from scattered pilots toward strategic integration. Equipment makers bought autonomy and precision capabilities, grain businesses consolidated software, and agribusinesses partnered with cloud providers to connect farm, machine, logistics and carbon data. The year did not invent ag-tech consolidation, and many announced products were still pilots. Its significance was the breadth of the integration push—and the attempt to make technology part of agricultural infrastructure rather than a stand-alone experiment.

Why 2021 changed the shape of ag tech

Earlier deals had already established the pattern: Monsanto bought The Climate Corporation, Deere acquired Blue River Technology, DuPont acquired Granular, and Syngenta acquired Cropio. A Harvard Kennedy School research summary documents that earlier consolidation. The defensible claim about 2021 is not that it was the first or definitively the largest year for ag-tech mergers and acquisitions. Rather, it was a maturing phase in which incumbents combined acquisitions with startup programs, cloud alliances and supply-chain data projects.

Several pressures converged:

  • Labor shortages increased interest in machines that could perform defined tasks with less operator time.
  • Narrow planting and harvest windows made uptime and machine utilization more valuable.
  • Input-cost and environmental pressure increased demand for precise application and field-level decision support.
  • Farmers, elevators, processors and buyers needed data to move across company boundaries.
  • Large companies had distribution, dealers, machinery fleets, crop-input relationships or grain networks that startups generally lacked.
  • Strong venture markets made it easier for startups to raise capital and for strategic buyers to compete for scarce technical capabilities.

AgFunder reported $51.7 billion in global agrifoodtech startup funding across 3,155 deals in 2021, an 85% increase from 2020. That is a broad agrifoodtech measure, including downstream categories, not a farm-equipment or ag-tech M&A total. AgFunder’s report and CB Insights’ agtech analysis use different category definitions, so their figures should not be combined as if they measured the same market.

The acquisitions that best illustrate the strategy

Date Transaction Capability Disclosed value Strategic objective
May 2021 Valmont Industries–Prospera Technologies AI and remote sensing for crop monitoring Approximately $300 million, as reported by AgFunder Extend irrigation and infrastructure into crop intelligence
June 21, 2021; completed November 30 CNH Industrial–Raven Industries Precision agriculture, autonomy and digital systems $58 per share; approximately $2.1 billion enterprise value Add a broad technology platform to CNH equipment
August 5, 2021 John Deere–Bear Flag Robotics Autonomous-driving technology for farm machinery $250 million announced price Accelerate supervised autonomy and address operator scarcity
October 12, 2021 Bushel–GrainBridge Grain and farm-management data exchange Not stated Connect farmer, elevator, buyer and supply-chain information

Valmont and Prospera: irrigation becomes an intelligence business

Valmont announced its purchase of Israeli crop-analytics company Prospera in May 2021. Prospera used artificial intelligence and remote sensing to identify crop conditions and potential problems earlier, supporting scouting and irrigation decisions. AgFunder later listed the transaction at approximately $300 million, the largest disclosed ag-tech acquisition in its 2021 retrospective. The strategic message was that an irrigation or infrastructure supplier could compete in crop intelligence and decision support, not only in physical equipment. AgFunder’s 2022 report supplies the transaction estimate.

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Deere and Bear Flag: from collaborator to acquisition

John Deere announced the Bear Flag acquisition on August 5 for $250 million. Bear Flag developed autonomous-driving technology designed to work with existing farm machinery. Deere had worked with the startup through its Startup Collaborator program since 2019, making the deal a clear example of a relationship moving from field testing to ownership. Deere’s later 2022 Form 10-K described $225 million in cash purchase price before final adjustments, with $25 million recognized as compensation expense over a four-year post-acquisition service period, plus assumed liabilities. The announced headline price and accounting treatment describe different aspects of the transaction, not necessarily a contradiction. See the acquisition announcement and Deere’s filing.

CNH Industrial and Raven: buying a platform

CNH announced the Raven transaction on June 21 at $58 per share, a reported 33.6% premium to Raven’s four-week volume-weighted average price and an enterprise value of approximately $2.1 billion. The acquisition closed November 30. Raven brought precision-agriculture, autonomy and digital engineering capabilities, building on a long-standing relationship between the companies. This was not a purchase of one software feature; it was an attempt to acquire a technology platform and the engineering capacity to integrate it across equipment lines. CNH’s announcement and completion notice provide the terms.

Bushel and GrainBridge: consolidation for the grain chain

Bushel announced its acquisition of GrainBridge on October 12. GrainBridge had been created as a joint venture by ADM and Cargill. Combining GrainBridge’s data capabilities with Bushel’s grain-supply-chain software addressed a problem that is less visible than an autonomous tractor but just as important: information is fragmented among farms, elevators, buyers and logistics providers. The deal therefore represented industry coordination and data standardization as much as a conventional software acquisition. Bushel’s announcement identifies the transaction and its background.

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Other notable transactions

AgFunder’s retrospective also listed Scotts Miracle-Gro’s approximately $215 million purchase of Luxx Lighting, Kalera’s approximately $153 million acquisition of &ever, Ondas Networks’ approximately $70.6 million purchase of American Robotics, and Planet’s approximately $28 million acquisition of VanderSat, alongside deals involving FarmLogs, Conservis, Soil Metrics and Root AI. These transactions show activity across controlled-environment agriculture, sensing, robotics and farm software; they are supporting examples rather than evidence of a single uniform market.

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Collaboration was the middle step between startup and subsidiary

Deere’s Startup Collaborator program illustrated a third category between independence and acquisition. Its 2021 cohort included Nori, which worked on farmer-linked carbon markets; NVision Ag, which used modeling and aerial imagery for nitrogen decisions; Scanit, focused on detecting and classifying airborne plant pathogens; and Teleo, which developed remote operation for construction and mining equipment. Deere described the program as a way to test technologies with customers and dealers without immediately entering a formal business relationship. The cohort announcement lists the companies.

Such programs can provide real equipment access, customer feedback, dealer insight and faster validation while limiting the cost and risk of a full acquisition. They also have limits:

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  • A successful pilot may not scale across crops, regions, machine models or connectivity conditions.
  • Incumbent integration can slow a startup’s product decisions.
  • A collaborator may lose neutrality or face restrictions on data and interoperability.
  • Participation does not guarantee a purchase order, commercial launch or acquisition.

Bear Flag supports the collaboration-to-acquisition pathway, but it should not be treated as proof that startup programs generally end in acquisitions. Deere’s account of the relationship appears in The Furrow.

Automation was a response to operating constraints

“Automation” and “autonomy” were often used interchangeably in 2021 marketing, but they describe different levels of control:

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  • Automation: a machine performs a defined task or programmed workflow.
  • Autonomy: a system perceives conditions, makes operating decisions and acts with less direct human control.
  • Remote operation: a person controls equipment from another location.
  • Decision support: software recommends an action while a person or machine executes it.

The distinction matters for safety, liability, connectivity and labor claims. Farm robotics investment reached $491 million in the first half of 2021, a 40% increase from the same period in 2020, according to AgFunder figures reported by Agriculture.com. That is a first-half farm-robotics measure, not total ag-tech funding.

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The business case went beyond replacing workers. Systems that reduce operator workload can extend operating windows, make large fleets more productive, reduce input overlap and help farms use skilled personnel where judgment is most valuable. The unresolved questions were whether systems could handle unusual field conditions, maintain safe human oversight and deliver a return on investment after installation, connectivity and service costs.

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Cloud partnerships connected data no single company owned

Bayer and Microsoft

In November 2021, Bayer and Microsoft announced a strategic partnership to build cloud-based digital tools and data-science capabilities using Bayer’s agronomic expertise and Microsoft Azure. It was not an acquisition. The objective was an infrastructure and ecosystem layer for data integration, digital product development, analytics, supply-chain efficiency and sustainability applications. Bayer’s announcement describes the arrangement.

Project Carbonview

On December 8, Bayer announced Project Carbonview with Bushel and AWS. The U.S.-focused pilot connected Bayer’s Climate FieldView information with grain-delivery and transportation data available through Bushel, initially for ethanol supply chains. Participating farmers could be eligible for compensation. The project’s purpose was to estimate carbon impacts from production through delivery; the announcement did not establish verified emissions reductions or a mature carbon market. Bayer said farmers continued to own their data within the described Climate FieldView arrangement, a qualification that should not be generalized to every agricultural platform. See Bayer’s launch notice and the AWS technical description.

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How to judge whether a deal mattered

  1. Technology depth: Was the capability difficult to reproduce—software, sensors, robotics, data or engineering talent?
  2. Distribution leverage: Could the buyer reach farms through dealers, machinery, input channels, elevators or enterprise sales?
  3. Integration potential: Could the product work with existing equipment and data systems?
  4. Farmer economics: Was there a plausible path to lower labor or input costs, higher uptime or new revenue?
  5. Commercial evidence: Was there a deployed product or customer pilot, rather than only a strategic announcement?

Acquisition offers control and integration but carries cultural and technical risk. Partnerships are more flexible but leave questions about product direction, pricing, data access and long-term commitment. Integrated platforms can reduce friction and improve support, yet may increase vendor lock-in and limit data portability. Carbon programs may create revenue opportunities, but participants need clear terms for ownership, sharing, calculations, export, retention and compensation.

What the “breakthrough year” story gets wrong

First, announcements are not outcomes. A press release can describe a long-term vision while a product remains a pilot. Second, “agtech,” “farm tech” and “agrifoodtech” are different categories; a global agrifoodtech funding total cannot be compared directly with a farm-robotics figure or an individual purchase price. Third, announced enterprise value, headline price, accounting purchase price, earn-outs and assumed liabilities can differ. Finally, carbon measurement is not carbon reduction, sequestration, verification or payment.

The practical test is what happened after integration: Did a system reach farms, work with existing equipment, protect data portability, receive dealer support and improve labor productivity, input efficiency, reliability, profitability or environmental performance? The 2021 transactions created pathways toward those outcomes, but the announcements alone could not prove them.

The Bottom Line

2021 mattered because agricultural technology became a strategic integration problem. Acquisitions supplied autonomy, sensing and software; collaborations supplied a lower-risk route to testing; cloud and carbon projects tried to connect data across the value chain. The year’s lasting significance depends not on the number of deals announced, but on whether those combinations produced dependable, interoperable value for farms.

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