Ag tech consolidation will continue

Published online: Aug 21, 2017 News

The president of a law firm specializing in agriculture says future industry consolidation will mostly occur on the technology side.

Todd Janzen with Indianapolis-based Janzen Ag Law tells Brownfield the time of mega-mergers between seed, chemical and equipment companies is probably coming to an end.

“It’s hard to envision that there would be another round of mergers since we’re down to less than a handful of companies now. But for sure on the technology side, there is a lot of room for consolidation and mergers in the next few years.”

He says many ag tech startups were the result of farmer profits the last decade.

“Everywhere from Silicon Valley to Kansas City to Chicago, you name it. And (the startups) are not all going to survive. So what’s going to happen to them is if they survive, they’ll end up being consolidated or merging into other companies that have more use for that technology.”

Janzen describes this as an exciting time for agriculture with new startup technology companies entering the industry all the time.

Source: brownfieldagnews.com