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By Agroempresario.com
Despite a turbulent few years for the agrifoodtech sector—with venture capital deals down and margins tight for growers—AgriNovus CEO Mitch Frazier remains confident in the resilience and long-term potential of the agbioscience industry. His outlook is shaped by a belief that innovation flourishes in tough environments and that optimism is not just a mindset, but a strategic advantage.
“The quote that sticks with me is, ‘Pessimists sound smart, and optimists make money,’” says Frazier, whose nonprofit is dedicated to building Indiana’s agbioscience economy. “When we’re faced with challenges like inflation, tight margins, trade uncertainty, and shifting consumer preferences, we can either retreat or use them as a catalyst for transformation.”
Recent data from AgFunder shows that the dramatic decline in agrifoodtech investment that began in 2022 may finally be tapering off. Yet the recovery is uneven. Many startups are raising flat or down rounds, and investors are becoming more selective.
According to Frazier, these pressures are weeding out weak models and pushing the most promising startups to become laser-focused on solving problems that matter. “Some of the best companies are built in the hardest times,” he says. “The ones that thrive will be those that can improve net cash farm income—either through reduced input costs, operational efficiencies, or new revenue streams.”
Right now, growers—especially those in row crops—are caught between rising input costs and falling commodity prices. “Margins are razor-thin,” he admits, “but that just means the solutions we invest in must be meaningful.”
In today’s climate, Frazier predicts a wave of strategic acquisitions as larger companies with deep pockets look to acquire technologies rather than build them in-house.
“We’re already seeing this,” he notes, pointing to recent moves by John Deere, Corteva, and others. “You’ll also see more startups working to reach profitability earlier, even if it means slower growth.”
Still, he’s bullish about venture-backed innovation. “The funding is still there, especially for companies that align with the evolving investment theses of corporate and institutional investors. We’re just seeing a shift in expectations: more discipline, more clarity of purpose, and a focus on real-world impact.”
One of the clearest opportunities for innovation lies in solving the growing shortage of skilled labor across agriculture and adjacent industries like construction and landscaping.
“Deere made a big splash at CES with three new autonomy platforms—one for ag tractors, one for construction, and one for commercial mowing,” says Frazier. “The reality is, there just aren’t enough people to fill these jobs anymore. Innovation has to step in.”
Startups like Solinftec—a Brazilian agtech firm with its U.S. HQ at Purdue Research Park—are already deploying solar-powered autonomous machines to scout and spray crops. “This removes the need for manual labor and puts AI in the field,” Frazier explains.
Another Indiana-based company, TerraForce, has built a robotic watermelon harvester using AI to identify ripeness. “It’s incredibly labor-intensive work, and this is the kind of solution that shows how automation can directly address pain points.”
AgriNovus is also tracking a rising trend of reimagining traditional crops like corn through value-added uses. Liberation Labs, for instance, is building a next-gen biomanufacturing facility in Richmond, Indiana, using dextrose from corn to power fermentation processes for food and bioproducts.
“These kinds of operations give growers new markets,” says Frazier. “Ingredion just invested $100 million into its Indianapolis operation for specialty starches. That’s significant not just for the city, but for every corn farmer in the region.”
Similarly, the acquisition of Smart Apply by Deere in 2023 underscored how precision ag tools that demonstrate clear ROI will continue to find buyers.
With the rise of the food-as-medicine movement, Indiana is uniquely positioned to lead, according to Frazier. “We have the nation’s largest medical school, Elanco, Elevance Health, Eli Lilly, and Corteva all within close proximity—and universities like Purdue and Notre Dame driving innovation.”
While policies under the “Make America Healthy Again” (MAHA) banner remain unclear, Frazier believes they could be a boon for the agbioscience sector. “People are finally connecting food and health in a serious way. We’re positioned to be at the center of that conversation.”
However, Frazier warns that without serious reform, the regulatory environment could become a bottleneck for innovation. Potential changes like eliminating the GRAS (Generally Recognized As Safe) self-affirmation process or budget cuts at key federal agencies could slow product approvals.
“We must have a science-based, agile, and predictable regulatory framework,” he says. “The innovators are out there. But if the system doesn’t move with them, we risk losing our competitive edge.”
AgriNovus keeps a close eye on early-stage companies with game-changing potential. Frazier highlights several standouts:
Frazier closes with a reminder that disruption is not a detour—it’s the road itself. “Innovation doesn’t stop because markets are turbulent. If anything, it becomes more necessary. The companies that survive this phase won’t just be good—they’ll be great. And Indiana will be a key player in that future.”
As the agbioscience ecosystem evolves, platforms like the Agbioscience Podcast, produced by AgriNovus, continue to spotlight voices driving transformation across food, agtech, animal health, and environmental sustainability.
“Optimism isn’t naive,” Frazier says. “It’s how we win.
