Barclays is urging the UK government to take the lead in advancing the Agritech sector, as new research reveals that a majority of farmers are planning to adopt technological innovations but lack the necessary support. The sector is estimated to contribute £13 billion to the UK economy.
Barclays has been deeply involved with the agricultural sector for more than 280 years, providing significant financial support. The latest report from Barclays, "Agritech: supporting the future of farming," outlines the challenges in adopting new technologies. According to the report, unclear return on investment and high upfront costs are significant financial barriers, cited by 45% and 41% of farmers, respectively. Additionally, 24% mentioned a lack of knowledge as an obstacle.
In a landscape marked by political difficulties, farmers feel the government could increase support through clearer long-term policy and guidance on sustainable farming practices, with 71% and 48% of survey respondents, respectively, indicating these as areas needing improvement.
The report warns of the UK's risk of lagging behind other regions due to an unaligned supply chain and ecosystem. An industry executive observed, "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."
Barclays outlines three strategies for government adoption to overcome these barriers: creating a clear national strategy for agricultural transition, offering financial support for Agritech development, and establishing a comprehensive ecosystem-wide hub through UK Agritech centres.
In sync with these recommendations, Barclays is renewing its Eagle Lab partnership with the University of Lincoln, focusing on supporting start-ups and entrepreneurs in agriculture.
Abdul Qureshi, Managing Director of Business Banking at Barclays, stated, "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... 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."