The smart farming revolution

Autonomous tractors, spraying drones, picking robots... The digital transformation of the world of agriculture is underway, promising to improve yields while reducing the use of chemical inputs. The aim is to feed 10 billion people by 2050, while minimising the sector’s environmental impact.

A new wind is blowing across farms. Grouped under the banner of the neologism ‘Agritech’ or the expression ‘Agriculture 4.0’, a myriad of startups, as well as major groups, are aiming to reinvent the agricultural sector through connected machines, autonomous robots, intelligent greenhouses and sensors enhanced by artificial intelligence (AI) algorithms. "The world of agriculture is undergoing a revolution," enthuses Ignace De Coene, equity fund manager at DPAM. An opinion shared by Otmane Jai, investor and client advisor at family office MJ&Cie: "The primary sector is experiencing a structural transformation in which digitalisation will help farms to become more productive, more precise and more sustainable.

The situation is urgent. Agriculture, and the food sector as a whole, face major challenges. In 2023, nearly 733 million people worldwide were still suffering from hunger, representing one person in 11 according to UNICEF. The agricultural sector will have to feed 9.7 billion people in 2050, then 10.3 billion by 2080, according to UN demographic projections. "Demand for food is set to increase by 60% between now and 2050, despite the fact that the Earth’s resources are naturally limited," points out Otmane Jai. The surface area of arable land cannot be extended indefinitely, and this poses numerous problems. "Nearly eight million hectares of forest – twice the size of Switzerland – are destroyed annually," points out David Thomas, portfolio manager at Robeco. "And the main reason for deforestation remains agricultural expansion."

Moreover, global warming is likely to disrupt food production in many parts of the world due to an increase in droughts and other undesirable climatic events. Last but not least, the massive use of fertilisers, pesticides and other chemical inputs is having serious repercussions on the environment (water pollution, soil degradation, loss of biodiversity). "Smart farming companies aim to address these issues," explains Stéphanie Rheinboldt, equity analyst at Banque Heritage. "These companies offer solutions to increase crop profitability while reducing the impact on nature."

Looking back, the first agricultural revolution took place in the 18th and 19th centuries with the appearance of the first machines in the fields (mechanisation and then motorisation). Then, in the 20th century, the second revolution was chemical, with the advent of fertilisers and plant protection products. Together, these revolutions led to radical increases in productivity. "But since the 1970s, agriculture has not evolved significantly and we are now reaching the limits of this model," explains Florin Istrate, a partner at Circle Strategy. "Today, we are seeing the arrival on the market of disruptive innovations that are the beginnings of a new agricultural revolution, which should enable us to develop greener, more efficient agriculture."

This account is corroborated by Stéphanie Rheinboldt: "After 1945, agriculture launched an agricultural revolution in industrialised countries. It enabled Western nations to guarantee an abundance of food, but at the cost of soil exhaustion, repeated droughts and health problems linked to inputs. For the past decade or so, Agriculture 4.0 has been attempting to meet these challenges."

According to a study by Research and Markets, the global agritech market is set to grow from $24.42 billion in 2024 to $48.98 billion in 2030, representing annual growth of 12.3%. "At the heart of this revolution is a myriad of companies of all sizes. The existing giants, such as John Deere (United States), CNH (Italian-American), Claas (Germany) and Fendt (Germany), are often the technology leaders," explains Dimitri Kallianiotis, technology investment specialist at UBP. "However, many startups are also emerging, such as the Dutch company AgXeed, which specialises in autonomous tractors, the German company NEXAT, which specialises in very large vehicles with interchangeable modules, and the American company Carbon Robotics, which offers robots that use AI to control weeds." Arugga, an Israeli startup specialising in the automation of greenhouses using robots, is also an agritech innovator in the making.

A concrete example of technology? American agricultural equipment manufacturer John Deere has launched ‘See & Spray’. This is a system of high-resolution cameras fitted to tractors which, thanks to artificial intelligence, recognise weeds and automatically trigger the spraying of herbicide only where necessary. "It’s a win-win-win system," stresses Ignace De Coene. "Farmers use less herbicide, which reduces their costs, John Deere achieves better margins and consumers enjoy superior products because they are grown with fewer chemical inputs."

The American company also markets autonomous electric tractors and sprayer drones, designed to improve crop productivity while reducing their environmental impact. Enough to appeal to farmers? "The farmers I’ve met are enthusiastic about tractors equipped with the most advanced technologies," reports Stéphanie Rheinboldt. In fact, the American giant is not alone in this niche: its main competitors, the Italian-American CNH Industrial and the American AGCO, are developing similar products. Corteva and BASF, both active in crop protection, are also investing in digital technologies to improve yields and the deployment of their products.

UBP Technology Investment Specialist, Dimitri Kallianiotis, summarises the most promising agritech technologies as follows: "The use of satellite imagery combined with artificial intelligence to reduce the use of fertilisers and pesticides; small drones to monitor photosynthesis; and larger industrial drones to treat crops in the event of disease."

Reitzel as a pioneer

We’re heading for Aigle in the canton of Vaud, home to the headquarters of Reitzel, famous for its gherkins and pickles. "We’re strong believers in smart farming," says Olivier Camille, CEO of the family business founded in 1909. "Digital technologies should help us to improve productivity, guarantee the traceability of our products and reduce our environmental impact." The Vaud-based company is brimming with ideas for smart farming, and has already implemented several systems with its partner farmers.

In India, for example, where Reitzel collaborates with more than 5,000 farmers, the company has deployed an application that collects a wide range of data on crops, such as the quantity of inputs used and production volumes. "Thanks to this application, we know the productivity of each plot of land in real time, which gives us better visibility of harvests and enables us to improve yields by determining, from the data collected, the optimal time to sow or apply a particular input," explains Léopoldine Mathieu, head of Commodities and Sustainable Development at Reitzel. "For consumers, it’s also a guarantee of traceability, as we know exactly where each of our products was grown and how it was treated."

Robot pickers

In France, where the company works with around 20 farmers, Reitzel’s greenhouse partners use electronic sensors on their crops to measure humidity and other parameters, enabling them to irrigate and add fertiliser only when necessary. 

The company has no intention of stopping there. "We’re soon going to be testing a weather station connected to decision support software (DSS) to detect the risk of mildew in our gherkin crops," explains Léopoldine Mathieu. "This will enable us to treat our plants preventively or early in the event of disease." For the future, the company is planning to utilise autonomous picking robots, for example. "At present, this type of machine remains very expensive, and the technology is not yet mature for harvesting gherkins, which requires the precision of a goldsmith," explains Léopoldine Mathieu. "But it’s going to happen." 

Californian startup AFT (Advanced Farm Technologies), for example, has developed robots that distinguish ripe fruit and pick it automatically, using image sensors and artificial intelligence software. Its machines work particularly well on strawberry and apple crops. However, Karen Kharmandarian, CEO and partner at Thematics Asset Management, warns: "Robot picking technology is not yet mature. These machines still struggle to operate in an unstable environment and do not always have the necessary finesse to pick fruit without damaging it. This technology is not yet fully developed and not yet economically viable." 

In fact, to continue its development, AFT had to sell the intellectual property of its apple- picking robots to the giant CNH in April 2025. "Robotics and automation will ultimately help to reduce production costs in agriculture, make work less arduous, and improve precision," stresses Robeco’s David Thomas. "What’s more, automation will solve the labour shortage in the primary sector, which now accounts for just 2% of the workforce in developed countries like Switzerland, compared with 50% at the end of the 19th century." Lee Qian, investment manager at Baillie Gifford, points out: "The number of people who want to work in agriculture is declining constantly. Automation can help to solve some of this problem."

In fact, farms are beginning to adopt digital technologies. "In the United States, a third of farms use agricultural software; in Germany, one in 10 farms," explains Stéphanie Rheinboldt, equity analyst at Banque Heritage. "At present, it is mainly the very large farms in developed countries that are using digital technologies. But Agriculture 4.0 would be particularly beneficial in developing countries, where the majority of small farms are concentrated and where climate change is most visible."

Is now the right time to invest in agritech companies? "Smart farming is a very exciting longterm investment sector," says Lee Qian of Baillie Gifford. "The future of agriculture is a huge challenge, given population growth, the adoption of increasingly rich foods and environmental problems. Against this backdrop, demand for smart farming solutions is set to grow in the coming years.

But the sector remains relatively young. "I firmly believe in the potential of smart farming," continues David Thomas. "But we’re still in the early stages. This sector could represent an investment opportunity, but only with a long-term vision." Otmane Jai agrees: "Agritech is still an emerging sector, driven by a large number of startups and technologies that are still being structured. In this context, any investment is accompanied by real uncertainty as to which technologies or players will dominate the market in the medium term."

For example, in March 2025, Plenty Unlimited, an innovative US vertical farming company backed by high-profile investors such as Jeff Bezos, SoftBank and Walmart, had to file for Chapter 11 bankruptcy protection. The reason? Digital farms are still struggling to compete with the lower prices of products from traditional agriculture. This represents a stark illustration of the challenges that the industry still has to overcome, despite its promising innovations.

In the short term, therefore, smart farming should begin to take root in the most profitable crops, as seen with Plenty Unlimited. After restructuring and emerging from bankruptcy in June, the company will now concentrate solely on strawberry cultivation. Stéphanie Rheinboldt confirms this, "Agriculture 4.0 is particularly well suited to high value-added crops such as strawberries. Their fragility requires appropriate harvesting methods and treatments against disease."

A cascade of acquisitions

"In 2021, the agritech bubble burst," says Florin Istrate of Circle Strategy. "Today, the sector is in a phase of rationalisation where natural selection is operating. But the fundamentals of the sector are solid because, one way or another, the need for food is not going to disappear." Proof of this potential is the growing number of acquisitions. The giant John Deere, for instance, has purchased several startups, including Blue River Technology, which developed the ‘See & Spray’ technology in 2017, for $305 million; Bear Flag Robotics in 2021 for $250 million; SparkAI, an artificial intelligence specialist in 2023 for an undisclosed amount; and acquired the licences for Mineral in 2024, specialising in robotics and AI. As for its rival CNH Industrial, it acquired Hemisphere GNSS, a satellite positioning specialist in 2023; Raven Industries, a company active in precision agriculture in 2021, and, as mentioned above, the intellectual property for AFT’s apple-picking robots in 2025.

"Traditional agricultural players like John Deere are expanding into digital, robotics and AI," notes Karen Kharmandarian, CEO and partner at Thematics Asset Management. "They have gained skills in these areas by acquiring more and more specialist startups. For the time being, however, agritech accounts for only a small proportion of their sales." Kharmandarian continues: "Agriculture is lagging behind industry in terms of digitalisation. The potential is there because the addressable market is large and the penetration rate fairly low. But digitalising agriculture is going to take time." This view is shared by Elliott Grant, CEO of startup Mineral, who said in August 2024 when John Deere acquired some of its licences: "The challenge of sustainable agriculture is still ahead of us. But it’s a relay race, not a sprint."