As the UK agricultural sector grapples with mounting challenges—from climate change to economic pressures—Barclays is advocating for a technological revolution to ensure the industry’s sustainability and growth. In its latest report, Agritech: Supporting the Future of Farming, the bank underscores the transformative potential of agricultural technology (Agritech) and calls for concerted efforts to overcome barriers hindering its adoption.
The Promise of Agritech
Valued at an estimated £13 billion to the UK economy, Agritech encompasses innovations such as drones, artificial intelligence (AI), and robotics, all poised to enhance productivity and sustainability in farming. Barclays’ research reveals that while 60% of farmers are keen to integrate these technologies, many face significant obstacles.
Key challenges include:
- Unclear Return on Investment: 45% of farmers are hesitant due to uncertain financial benefits.
- High Upfront Costs: 41% cite the initial investment as a deterrent.
- Lack of Knowledge: 24% feel they lack the necessary understanding to implement new technologies effectively.
Additionally, farmers express a need for greater governmental support, with 71% seeking clarity on long-term policies, and nearly half desiring more guidance on sustainable practices and overall promotion of UK farming.
A Call for Collaborative Action
Barclays urges the government to spearhead the development and adoption of Agritech through three strategic actions:
- Develop a Clear National Strategy: Outline the role of Agritech in the agricultural transition.
- Provide Financial Support: Offer guarantees and targeted assistance via the National Wealth Fund and British Business Bank.
- Establish a Collaborative Ecosystem: Create a hub through the UK Agritech Centres—Agri-EPI, CHAP, and CIEL—to foster collaboration and develop a dedicated skills programme.
Highlighting the disparity between the UK and continental Europe, a company executive noted, “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.”
Investing in Innovation and Talent
Reaffirming its commitment, Barclays is renewing its Eagle Lab partnership with the University of Lincoln. Established in 2020, this collaboration supports agricultural start-ups and entrepreneurs by providing access to facilities like a dedicated robotics lab and industry expertise.
Abdul Qureshi, Managing Director of Business Banking at Barclays, emphasized, “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.”
Barclays’ longstanding relationship with the agricultural sector—spanning over 280 years and encompassing £1 in every £4 lent to the industry—positions it as a pivotal player in driving this technological evolution. Through strategic partnerships and advocacy, the bank aims to cultivate an environment where innovation thrives, ensuring a resilient and prosperous future for British farming.
