Precision Agriculture in LATAM: Transforming Farming Through Technology
- Exequiel Lacovsky
- Feb 10
- 4 min read
By overcoming existing barriers, precision agriculture can become a truly inclusive solution, transforming farming on a global scale. It holds the potential to boost yields, lower costs, and drive sustainability, securing the future of agriculture and food production—especially in Latin America.
Noga is committed to supporting precision agriculture startups as they expand into the LATAM markets. By leveraging our connections, we aim to bridge the gap between the needs of farmers and agribusinesses in Latin America and cutting-edge Israeli AgTech solutions. For example, we have recently begun supporting Treetoscope’s growth, helping to bring smart irrigation solutions to more farmers and businesses. By optimizing water usage and improving efficiency, these innovations contribute to more sustainable and productive agricultural practices.
Precision agricultureÂ
Precision agriculture is revolutionizing farming by leveraging advanced technologies to optimize crop production through data-driven insights. This approach enhances efficiency and sustainability, allowing farmers to manage their fields with greater accuracy. Key technologies such as sensors, drones, GPS systems, and satellite imagery play a crucial role in collecting essential data on soil health, crop conditions, weather patterns, and irrigation needs. Sophisticated software then analyzes this data to identify trends, forecast outcomes, and generate actionable recommendations. The applications of precision agriculture are extensive and impactful. Farmers can analyze soil properties to administer nutrients accurately, optimize water use to prevent waste, and detect pest infestations early for targeted treatment. Additionally, precision agriculture enables precise yield estimation for improved harvesting and storage planning while also identifying crop stress caused by diseases, nutrient deficiencies, or drought conditions.
In the particular case of Latin America, the precision agriculture market is projected to grow from USD 1.86 billion in 2024 to USD 3.80 billion by 2029, reflecting an annual growth rate of 15.4%(Market Data Forecast). For instance, Brazil, the world’s second-largest agricultural exporter, leads in commodities such as soybeans, corn, wheat, sugar, meat, coffee, and ethanol. At the same time, Argentina’s vast has positioned itself among the top global agri-food producers and exporters, with soybeans, corn, and wheat as primary exports (Intent.AG). For its part, Mexico's principal crops are Corn, wheat, and sorghum. Commonly used technologies in LATAM include GPS guidance systems, mapping tools, mobile applications, remote sensing, and drones.Â
The above trend has pushed forward the development of an AgTech ecosystem in Latam. According to the Latin America AgriFoodTech Investment Report 2023, released by AgFunder, since 2018, the AgriFoodTech sector has attracted $7.3 billion in investments. Notably, in 2022, AgriFoodTech startups secured $1.7 billion, marking an increase from just under $1 billion in 2018. The Investment patterns indicate precision agriculture, alternative proteins, and regenerative farming practices have attracted significant investors’ interest. Furthermore, innovations in food distribution, retail technology, and alternative protein production have seen substantial funding.Â
Challenges and Strategies for the Adoption of Precision Agriculture
Despite promising developments, several challenges persist towards fully adopting precision agriculture in LATAM:
Regulatory barriers, particularly in areas such as alternative proteins, gene editing, and sustainable farming, slow innovation and the adoption of new technologies.
The high cost of technology remains a significant barrier, particularly for small farmers.
Limited internet connectivity in rural areas hampers the use of IoT devices and cloud-based platforms.Â
Many farmers lack awareness of precision agriculture's benefits or are hesitant due to fears of managing sensors and drones.Â
Limited access to credit and investment opportunities further restricts adoption, as uncertain returns on investment discourage potential users.
While the funding gap for early-stage startups is a global challenge that restricts many from scaling, it is particularly pronounced in LATAM due to the region's limited access to venture capital.
Several strategies can help overcome these challenges:
Subsidies and tax incentives can make precision agriculture more accessible.
Training farmers with new technologies.
Expanding rural internet infrastructure is essential to support IoT and cloud-based platforms.
Collaborations between governments, universities, and AgTech startups can drive innovation.Â
Israel’s Initiatives Driving AgTech Innovation in LATAMÂ
Israel is key in advancing precision agriculture across Latin America by introducing cutting-edge technologies, expertise, and strategic partnerships to enhance farming efficiency, productivity, and sustainability.
Below are some examples of cooperation in this field:
Mashav, Israel’s Agency for International Development Cooperation, conducts specialized training programs for Latin American farmers, focusing on irrigation, desert farming, and AgTech solutions.
AGRInnova, launched in collaboration with the Inter-American Development Bank (IDB), Israel’s Ministry of Finance, and the Ministry of Agriculture and Rural Development, is designed to pilot Israeli agricultural technologies across Latin America and the Caribbean.Â
OurCrowd, in partnership with Uruguay’s government, has established OurCrowd LATAM Labs, the country's first government-backed startup accelerator. This initiative, developed alongside a consortium of local and international institutions, aims to support and scale startups in Uruguay and the broader Latin American region by providing access to global networks, strategic mentorship, and financial resources.
Building on existing collaborations, Noga supports startups entering the LATAM market by offering strategic guidance and valuable connections. The process begins with in-depth market research to uncover opportunities and develop effective entry strategies for long-term success. Noga facilitates introductions to key stakeholders and helps identify potential partnerships. As startups establish themselves, Noga provides ongoing support, guiding them through scaling and expansion across multiple LATAM markets. By leveraging its expertise and extensive network, Noga enables startups to navigate regional complexities and achieve sustainable growth.
As the precision agriculture sector continues to grow, LATAM has the opportunity to harness technology to become a leader in the field and create a more sustainable and prosperous agriculture.
References
Latin American AgriFoodTech Investment Report released by AgFunder: https://agfunder.com/research/latin-america-agrifoodtech-investment-report-2023/