# Weekly Agriculture & Food Systems Update: Focus on Artificial Intelligence

## Investors Put More Money Into Farm Technology

Venture capitalists are changing how they invest in farming technology, and they really like artificial intelligence and robots. In the third quarter of 2025, these investors gave out $1.3 billion to agriculture companies across 117 different deals. This is less money than the previous quarter, but it shows that investors still believe in technology for farming. The largest amount of money, about $701.7 million, went to animal agriculture companies, which includes farming cows, chickens, and other animals. The second largest amount, $533.8 million, went to precision agriculture companies, which use robots and smart computers to farm more efficiently.

## The Big Change: AI Gets All the Attention

One interesting thing happening is that almost all the money is going to companies using artificial intelligence. According to experts, there is now a big split in farming investments: companies that use AI get the most funding, and everything else gets much less. Many new startup companies are adding AI to their business plans because they know investors want to fund AI companies. However, even though there is so much excitement about AI, many farmers and tech companies are still figuring out exactly what AI can do best to help farms. This means there is lots of room for new ideas.

## Companies Focused on Plant Inputs Are Struggling

One area of farming that is not getting much investment right now is crop inputs, which includes natural fertilizers called biologicals. In the third quarter, these companies only received $23.9 million across 16 deals. Many investors are questioning whether these natural products really work as well as traditional chemical fertilizers, and farmers sometimes do not know the best way to use them. This has made investors nervous about putting money into these kinds of companies.

## South Korea Builds New AI System for Farm Markets

South Korea announced exciting plans to create a brand new AI platform just for agricultural products that will be ready in 2026. This smart computer system will look at farm product prices every second and understand how much supply is available in the market. The system will help regular shoppers and farmers make smarter choices about when to buy and sell. South Korea started testing this system in the second half of 2025 as part of a larger government plan to use AI in more public services. This is a great example of how countries are using AI to make farming and food systems work better and more fairly.

## The Challenge of Understanding AI Benefits

Even though there is lots of excitement about using AI and robots on farms, many questions still remain. Experts say that farmers, startup companies, and investors are still learning about all the different ways AI can help make farms better. Some farms are using robots to do physical work, while others are using AI to predict how much food they will grow or to manage animal health. The future of agriculture depends on everyone — farmers, technology companies, and investors — continuing to learn and test new AI ideas to make sure they really help farms succeed.