Now-Private Farmers Edge Collaborates with Gevo to Track Carbon in US Agriculture

The partnership between Manitoba-based AgTech firm Farmers Edge and Colorado-based renewable fuels company Gevo focuses on tracking the carbon intensity impact of climate-friendly agricultural practices. This initiative is part of Gevo's Climate-Smart Farm-to-Flight program, established last year.

The program aims to incentivize farmers to adopt more sustainable practices, particularly low-carbon-intensity corn production, while also accelerating the production of sustainable aviation fuel. The ultimate goal is to reduce the aviation sector's reliance on fossil-based fuels and promote environmental sustainability.According to a statement from Farmers Edge, Gevo's Climate-Smart Farm-to-Flight program is supported by grant funding from the United States Department of Agriculture (USDA).

Farmers Edge, leveraging its experience gained from working with Canadian growers on similar programs over the last three years, will be responsible for supporting the data capture component of this project. This collaboration aims to effectively track and analyze the carbon intensity impact of climate-friendly agricultural practices, contributing to the program's objectives of promoting sustainability and reducing carbon emissions in agriculture.In addition to supporting the data capture component, Farmers Edge will also contribute its experience to the recruitment and education aspects of the project, as stated by the company. The project will involve working with growers across three regions in the US: Iowa, South Dakota, and the Standing Rock Reservation, which spans North and South Dakota.

Participating growers will benefit from access to Farmers Edge's FarmCommand platform. This platform enables the collection, visualization, analysis, and utilization of farm data to support farm operations and decision-making processes, further enhancing the effectiveness of the project.Founded in 2005, Farmers Edge is a digital agriculture company specializing in data-centric technologies to assist farmers and agri-businesses in operating more sustainably.

The company made its debut on the Toronto Stock Exchange (TSX) in 2021, initially offering shares at $17 each and raising $125 million through an initial public offering. However, by the fall of 2023, the value of Farmers Edge's stock had plummeted to below 10 cents per share. Consequently, the company announced in November its intention to go private and subsequently entered into an agreement with Fairfax Financial Holdings Limited in January to facilitate the privatization process.

Last month, Farmers Edge confirmed the completion of the deal, with Fairfax acquiring all of the company's outstanding common shares, except for those already owned by Fairfax and Farmers Edge's CEO. As a result, the company's common shares have been removed from listing on the Toronto Stock Exchange (TSX).The shift to private ownership for Canadian tech companies like Farmers Edge reflects a broader trend, as seen with Nuvei, BBTV Holdings, Dialogue Health Technologies, Magnet Forensics, MDF Commerce, Q4 Inc, and TrueContext, among others.

While Farmers Edge has historically focused on the Canadian market, its decision to partner with a US firm is noteworthy. Despite Canada's significant position as the fifth-largest exporter of agricultural and agri-food products globally, many Canadian AgTech firms, including Farmers Edge, are increasingly looking to expand into the US market as a primary growth strategy.

Dan McCann, CEO of Regina-based Precision.ai, a startup in agriculture drone technology, highlighted that Canadian regulations often pose challenges for AgTech startups aiming to scale domestically. He emphasized the importance of perseverance in developing Canadian solutions but also acknowledged the pragmatic approach of exploring opportunities elsewhere if necessary.