British farming finds itself at a crossroads, grappling with rising costs, alterations to inheritance tax, and increasingly unpredictable weather patterns. Against this backdrop, agritech is being hailed as a potential game-changer—but is it capable of addressing all the sector’s pressing challenges?
In recent years, advances in agricultural technology have been widely promoted as a comprehensive solution to these mounting pressures.
While the term ‘agritech’ often evokes images of drones and robotics, the reality is that it encompasses a wide spectrum of innovations—from AI-powered decision-making tools for farmers to carbon capture systems and gene-editing techniques.
The UK’s agritech industry is now valued at approximately £13 billion. Farmers have shown a willingness to adopt new technologies, but this enthusiasm hasn’t always translated into meaningful change on the ground.
A new report from Barclays explores the obstacles preventing wider adoption of agritech on farms and outlines what government action is needed to make the sector more impactful.
Based on feedback from farmers and agritech firms, the report makes three key recommendations: implement a national strategy, provide targeted and sustained financial support, and enhance collaboration across the industry.
Uncertainty Over Direction
Both farmers and agritech companies cited a lack of coherent government strategy as a major barrier to growth. The government is still defining its post-Brexit agricultural policies and is expected to publish a 25-year roadmap for farming, along with a national food strategy, in 2025. Currently, there is little clarity on how these initiatives will take shape.
Confidence in government is at a low ebb among farmers. Many are reeling from changes to Agricultural Property Relief (APR) and the abrupt closure of the Sustainable Farming Incentive (SFI) scheme.
Survey respondents identified the lack of long-term policy stability as a fundamental challenge in striving for sustainable farming. Many also pointed to the absence of government support in promoting UK agriculture as a major drawback.
This policy vacuum not only discourages farmers from investing in agritech but also makes investors wary.
Agritech companies expressed concern that the government lacks a clear vision, which undermines their ability to plan ahead. Some felt existing regulations were outdated and were stalling progress in areas such as insect protein, animal feed, and pesticide innovation.
One agritech start-up CEO remarked that “political instability is pushing investors away,” while another criticised the government’s inconsistent approach, saying: “The problem we have is that government get involved in the detail of how to implement things when that is not their job or skillset. Let us do that.”
Others noted that the UK’s post-Brexit ambiguity had disadvantaged home-grown startups. One CEO stated: “With Brexit happening we’ve basically been put into a bit of a limbo period, we haven’t been able to adopt EU regulation as perhaps we should have done, they’re running about three years ahead of us which puts us at a disadvantage if we’re looking to export.”
Economic Viability A Must
Profitability remains a central concern for farmers when deciding whether to embrace new technologies. Participants in the report stressed that agritech solutions need to prove their financial value before being widely adopted.
With input costs rising and climate change adding further unpredictability, farmers said they were shifting focus from yield to overall margin, seeking to maximise returns per acre and stay open to new methods.
However, many questioned the real-world impact of current investment levels. One farmer commented: “How much money has been spent on agritech in the last ten years and how much has actually been used on farms is staggering.”
According to the Barclays report, many farmers felt agritech has yet to deliver at scale. Several recounted being approached by companies seeking tiny parcels of land for experimental schemes that didn’t seem financially sustainable.
Funding Frustrations
It’s not only farmers who face financial obstacles—agritech developers also flagged funding constraints as a major hurdle.
Although government funding is available, particularly via Innovate UK, many developers criticised the conditions tied to grant awards and the lack of sustained support.
The founder of one agritech firm noted: “There is so much money being offered in grants, only to find that if you want a £500,000 grant, someone says ‘no problem, but you have to spend the money first and show us the receipts’.
“If I had the £500,000, I wouldn’t be asking them for the money,” the founder told Barclays.
Additionally, as firms grow and move up the funding ladder, they often encounter even greater difficulty accessing support—creating bottlenecks for scaling.
While political uncertainty continues to deter investors, participants also acknowledged that the collapse or underperformance of some high-profile agritech ventures had dulled wider investor enthusiasm.
Three Calls To Action
Despite the headwinds, the Barclays report highlights a strong sense of optimism among both farmers and agritech entrepreneurs. It proposes three priority actions for government to harness that positivity and overcome systemic barriers.
1. Establish A National Strategy
The top recommendation is for government to set out a clear, long-term vision for agriculture, using the upcoming 25-year roadmap as a vehicle. This should revisit the 2013 agritech strategy and offer consistent guidance on the future evolution of schemes such as the Environmental Land Management Scheme (ELMS).
Such clarity would help farmers plan their business investments more confidently, including those in agritech, and give the sector greater certainty.
The report also advocates for closer cooperation between Defra and agritech firms, both to avoid unintended consequences of new regulations and to ensure that red tape does not stifle innovation.
2. Bridge The Sector Gaps
A second concern was the disconnect between developers, farmers, and academics. Respondents said many innovations were not aligned with the practical needs of farming, limiting uptake.
The report recommends that government act as a better intermediary—facilitating collaboration and communication. One avenue for this is the UK Agri-Tech Centre, supported by Innovate UK, which should ensure farmers play an active role in the design and development process.
This could include supporting more pilot or demonstration farms where agritech can be tested alongside real-world farming operations.
The Centre is also seen as pivotal in building skills and raising the profile of careers in the sector. Given that just 3% of 18-30-year-olds consider agriculture a desirable career, a structured work experience programme—similar to those in the space sector—could be highly effective in cultivating talent.
3. Targeted Financial Support
The final recommendation is the introduction of tailored, consistent financial backing to underpin agritech development and adoption.
Farmers require more assurance around future funding if they are to commit to new technologies. Since Brexit, the unpredictability of government schemes has made planning difficult—further compounded by the abrupt closure of the SFI.
The report urges policymakers to restore confidence by providing long-term certainty and showcasing successful agritech use cases from across the UK.
Without a coherent vision and sustained support, both British farming and the agritech sector risk falling short at a time when innovation is sorely needed.
Download the report here.
