Articles

Each year, Harvest Returns gathers insights from hundreds of producers, agtech companies, and industry stakeholders to understand where capital is flowing across agriculture. In its latest outlook, CEO Chris Rawley outlines the major forces shaping investment in 2026 - from shifting consumer preferences and regulatory pressures to the rapid rise of AI and biological inputs. This year’s analysis points to significant changes underway across crop production, livestock, food manufacturing, and agtech innovation.

Reviewing Last Year’s Predictions

Heading into 2025, Harvest Returns anticipated strong investor interest in regenerative farming - and that certainly materialized. Mad Agriculture closed a $78 million fund for financing farmers transitioning to regenerative organic systems, signaling sustained momentum behind soil-health‑focused farming.

Conversely, the team predicted cooling interest in alternative proteins. That trend accelerated sharply, with companies such as Beyond Meat facing major financial strain and several global insect-protein producers—including Ynsect—experiencing severe challenges or bankruptcy. Meanwhile, cultivated meat companies struggled to access follow-on capital, suggesting the category is undergoing a reset.

Other forecasts didn’t play out as expected. Despite expectations of downward pressure on farmland prices, the USDA’s August 2025 report showed U.S. farmland values rising 4.3% to a record high of $4,350 per acre.

Across agtech, the five investment hotspots of 2025 were plant science, precision ag, livestock tech, regenerative solutions and carbon, and enabling technologies such as AI, automation, and data platforms.

Evolving trends to watch in 2026

1. The “De‑Chemicalization” of Ag

A major trend for 2026 is the growing shift away from synthetic fertilizers, pesticides, and herbicides - particularly among broad‑acre growers. Rising input costs, environmental concerns, and regulatory pressure are pushing farmers to look for new tools to manage fertility and crop health.

2. Animal Products Regain Momentum

In 2025, consumer demand for animal protein remained exceptionally strong. Analysts expect this trend to continue throughout 2026. Market research shows consumers perceive animal meat as more satisfying than plant-based alternatives, with many saying substitutes lack the taste or texture they expect.

Beef demand in particular is surging, and producers are seeking significant investment to expand capacity. Beyond food, the market for beef tallow is growing rapidly thanks to its use in cooking oils and natural cosmetics. With demand rising on multiple fronts, cattle and dairy operations are pursuing capital to scale herds, improve efficiencies, and modernize infrastructure.

3. Weight‑Loss Drugs Reshape CPG Investment

The explosive growth of anti‑obesity drugs is already changing how consumers eat - and how food companies innovate. As GLP‑1 users shift toward smaller, more nutrient‑dense meals, brands are reformulating products with higher protein and fiber content. Major manufacturers have launched “GLP‑1‑friendly” product lines, from ready meals to protein‑enhanced snacks.

4. Clean Labels & Traceability Gain Ground

Clean labeling and full supply-chain transparency are becoming non‑negotiables for consumers. This shift is driven by heightened interest in health, sustainability, and ethical sourcing.

Regulation is accelerating this movement: the FDA’s Final Traceability Rule is pushing companies to implement systems that track food more rigorously from farm to shelf. Investors are responding by backing traceability platforms, blockchain solutions, and clean-label ingredient suppliers. As companies work to mitigate recall risk and protect brand integrity, capital is flowing into climate‑smart agriculture, non‑GMO production, and technologies that improve data visibility across the food system.

5. AI to Continue Its Rapid Expansion

AI remains one of the most powerful forces shaping agricultural investment. The global market is expanding at more than 24% annually, driven by applications such as yield prediction, autonomous equipment, soil monitoring, and carbon measurement. Generative AI and AI‑biotech hybrids are especially promising, helping producers make faster decisions, optimize inputs, and improve resilience.

Government support - through investments in data infrastructure, workforce training, and AI‑powered food safety tools - is accelerating adoption. While small farms still face barriers, opportunities for AI solutions across livestock, climate-adaptive crops, and global food supply chains are expected to grow significantly over the next decade.

Looking Ahead

Harvest Returns anticipates a pivotal year for agriculture investment. Capital will continue flowing toward technologies and practices that enhance the sustainability, profitability, and resilience of food production. Whether in biological inputs, traceability solutions, AI-driven tools, or high-demand animal protein markets, the coming year will reward innovations grounded in real-world impact.

🔗 Want the full analysis? Click here to read the complete article on the Harvest Returns website.