The Rise of Digital Platforms: A Reflection on Past Challenges and a Vision for the Future

Digital agriculture has been a core focus of my career, and I’ve witnessed its evolution from both the inside and the outside. The first part of the 2010s brought an exciting surge of innovation in digital platforms, fueled by optimism and significant investments. However, by the late 2010s, that initial enthusiasm had faded due to limited success, wasted capital, and slower-than-expected adoption.

Today, we’re witnessing a new wave of digital platforms driven by advancements in robotics, sustainability initiatives, and the increasing demand for a foundational digital footprint—or "digital twin"—of the farm. This article reflects on the past 15 years of digital agriculture, analyzes the key challenges, and explores how emerging trends could shape a brighter future.

Who is Patrick, Our Business Architect

Patrick is an AgTech entrepreneur focused on driving global adoption to strengthen agricultural resilience. With experience in the Netherlands, Germany, and the USA, he combines a Master's in Agricultural Engineering with hands-on expertise. Formerly leading digital strategy at CLAAS and co-creating 365FarmNet, Europe’s top farm management platform, he now works as an independent consultant. Patrick supports startups, corporations, and investors by offering market insights, aiding expansion, and building strategic partnerships.

A Brief History of Digital Agriculture

Farm management software has been around far longer than the internet as we know it. Early pioneers like the Dutch dairy software provider UNIFORM-Agri (now part of Delaval), German record-keeping providers Klöpper & Wiege (acquired by CLAAS and later became CLAAS Agrocom), American precision ag software vendor Farmworks (which was acquired by Trimble), and the French provider ISAGRI, were all launched in the 1980s. These organizations offered enterprise packages that included PCs and printers alongside the software. These solutions laid the groundwork for what would become digital agriculture, and their impact was profound at the time.

The 1990s and 2000s saw the rise of precision agriculture tools like SST (now part of TELUS), SGIS (acquired by AGCO and later Topcon), and SMS by Ag Leader. These solutions brought powerful new capabilities to farming operations, excelling in geospatial data analysis, creating variable rate application (VRA) maps, and compatibility with various machine formats. Remarkably, some of these tools are still widely used today.

Farmworks desktop precision ag software, image credit to Farmworks

The early 2010s marked the arrival of cloud-based platforms, which promised to revolutionize agriculture. There was a boom of startups, and companies like Climate Corp, Granular, Farmlogs, 365FarmNet, and Agroptima emerged, offering tools to digitize farm operations. Climate Corp, (which shifted from weather insurance to agricultural solutions) was acquired by Monsanto in 2013 for $1 billion, one of AgTech’s largest exits.

These platforms focused on record-keeping, compliance, and decision-making, with precision agriculture playing a secondary role. Yet despite significant investment—(my estimation, at least $5 billion globally in acquisitions, R&D, and venture funding)—adoption fell short of expectations. By the late 2010s, the space saw massive consolidation, with many startups acquired, pivoting, or folding.

Cloud-based farm management software 365FarmNet

What Went Wrong? Lessons from the First Wave

What went wrong and what can be learned from this first wave :

1. Limited Value Creation

There was a widespread assumption that farmers would immediately see the value in digitizing their operations, using these tools to gain insights and improve decision-making. However, many farmers felt they were managing just fine with Excel or even paper systems and saw no compelling reason to switch. Many of the tools focused on the data collection part and lacked the ability to provide clear, actionable insights and recommendations.

2. Overreliance on Online Marketing

The early wave of platforms relied heavily on online marketing and self-service sign-ups, assuming this would be sufficient to drive adoption. Agriculture, however, thrives on personal relationships and trust. Farmers value face-to-face interactions and were hesitant to adopt tools without the assurance of in-person support.

3. Monetization Challenges

While early farm software commanded high prices (especially in the nineties and early 2000s), the internet era drove prices down. Many companies adopted a “growth-first, monetize-later” approach, prioritizing user acquisition over revenue. Some hoped to monetize farm data instead, but privacy concerns and unclear value propositions made this difficult. The result was a market where sustainable business models were rare, and upselling was challenging.

4. Failure to Anchor a Control Point

Successful platforms often integrate into critical farm processes, becoming indispensable. Yet, many tools failed to secure such a "control point." For example, while precision agriculture and compliance were seen as potential anchors, farmers often found alternative solutions like Excel or local government tools. My friend Shane Thomas often refers to this as a key issue.

5. Distribution Misalignment

Many companies underestimated the importance of physical distribution channels. Corporate players struggled to align digital tools with their established networks. Distribution partners lacked incentives or the necessary skills to sell and support digital products. Few platforms succeeded in bundling software with physical goods to create compelling solutions.

6. Lack of Incentives for Adoption

Farmers and distributors alike lacked clear incentives to adopt these tools. Whether due to insufficient margins for resellers or unclear value propositions for end-users, the motivation to switch often wasn’t strong enough.

Silver Linings: Foundations for the Future

Despite these challenges, the first wave of digital platforms laid critical foundations:

• Widespread Adoption of Flagship Tools: Solutions like FieldView and John Deere Operations Center achieved significant market penetration.

• Corporate Efficiency Gains: Digital tools increasingly supported internal processes, improving business efficiency. Many Tools became more supporters for the internal staff.

• Technological Advancements: The era set the stage for innovations in AI, robotics, and data analytics.

• Learning Opportunities: The lessons learned from this wave offer invaluable insights for future efforts.

What’s Next? Trends Driving the New Wave

Several converging trends are reigniting interest in digital agriculture and creating a favorable environment for adoption:

 1. Sustainability and Climate Smart Ag Initiatives

Programs to reduce Scope 3 emissions and carbon footprints are driving demand for digital farm records. Measurement, reporting, and verification (MRV) tools rely on accurate, farm-level data, making digital platforms indispensable. Then there’s the potential of carbon credits, which, while I approach with some skepticism, could open up new revenue opportunities for producers.

2. Traceability and Premiums

In certain segments, Farmers can earn premiums for sustainable practices or specific quality metrics. At the same time, there is an ongoing push for more transparency in the food value chain. Digital tools will play a key role in documenting and verifying these efforts.

3. Financing and Insurance

Banks and insurers are starting to provide better terms to farmers who meet sustainability criteria. However, they are also increasingly requiring extensive data for risk assessments and regulatory compliance. Maintaining digital records will be crucial for farmers to demonstrate compliance and secure these benefits.

4. Rise of Robotics

Autonomous solutions rely on the creation of a ‘digital twin.’ While operators currently manage tasks like driving in the field, adjusting settings, and controlling equipment, these responsibilities must be pre-planned and mapped in the absence of an operator. Autonomous machines will require comprehensive farm mapping to ensure all necessary information is available for seamless operation. Additionally, these systems will include dashboards to track task progress, monitor machine errors, and view collected data. These machines will generate vast amounts of data, further integrating digital tools into the farming workflow

5. Next-Generation Farmers

As younger, tech-savvy farmers take over, they bring with them an expectation of user-friendly, app-like tools. This new generation is more likely to adopt digital platforms if they are intuitive and effective.

6. Regulatory Pressures

Regulations in agriculture are expected to increase steadily, with Europe leading the way. Efforts are underway to establish a digital repository, requiring farmers to share records of specific activities in digital formats with the government—a practice already in place in some countries for years. Additionally, stricter regulations on input usage will drive the need for more intelligent agronomy solutions. As input allowances decrease, optimizing their use becomes even more critical to maintaining efficiency and productivity.

7. Advancements in AI

New technologies are emerging that will significantly enhance the value of digital tools. While we have become proficient at collecting data, the critical question of "so what?" has often gone unanswered. Technologies like AI have the potential to bridge this gap by identifying patterns and generating actionable insights, unlocking the true value of the data.

AI-generated showing the future of digital agriculture - a farmer sitting in his 'control room'

Final Thoughts 

These trends are unlocking new opportunities for digital solutions. Now is the perfect time for corporates to reevaluate their digital strategies, including preparing their distribution channels for this next wave of innovation. For startups, it’s an exciting moment to develop solutions that deliver genuine value and capitalize on these emerging opportunities.

The lessons from the past remain relevant. As I outlined in my article "Ten Common Challenges to Overcome in Digital Ag," addressing usability, value creation, and distribution challenges is critical. The next wave of digital platforms must focus on delivering clear benefits to farmers while aligning with broader industry trends.

At the AgTech Advisor Collective, we specialize in helping organizations craft digital strategies and develop products that meet the unique needs of agriculture. Together, we can ensure the success of this new wave of digital innovation. Let’s make digital agriculture thrive.

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