Introduction
Agricultural entrepreneurs have been driving technological innovation in the sector, but they face significant challenges. Miguel Gallo, General Director at Grupo Paisano, highlighted that “technology moves very fast, while the field remains slow.” This article explores three major challenges faced by startups and entrepreneurs in the agricultural sector.
1. Infertile Soils Due to Overuse of Fertilizers and Pesticides
The Green Revolution, a movement from 1960 to 1990, sought to combat hunger through genetic intervention in crops and the use of pesticides and fertilizers. Although it provided solutions, excessive use of these chemicals led to consequences such as infertile soils.
Today, many projects focus on regenerative methods that maintain soil fertility and minimize environmental impact. Miguel Gallo pointed out that the Green Revolution’s provision of tractors to various regions, without considering soil differences, resulted in the loss of fertile land. This poses a current challenge for startups and entrepreneurs.
2. Generational and Knowledge Gap
The average age of farmers in Mexico is 57, which is alarming as younger generations prefer other sectors due to a lack of opportunities. This generational gap, combined with resistance to adopting new technologies, complicates the agricultural ecosystem.
Miguel Gallo emphasized that the challenge is not only about age but also the reluctance of older generations to embrace innovation. He noted that younger generations learn rapidly from vast data interpretation, unlike the traditional learning methods of older generations.
3. Lack of Financial Support
Accessing financing in the agricultural sector is difficult due to requirements that disadvantage producers.
Fideicomisos Instituidos en Relación con la Agricultura (FIRA) prioritize bank interests over those of producers, making it challenging for farmers with certain risk levels to secure funding. Additionally, Sociedades Financieras de Objeto Múltiple (SOFOMES) offer alternatives, but their regulations are complex.
The credit issue in Mexico affects the agricultural sector, as many small business activities require more capital to bridge the knowledge gap and address infertile soils.
Key Questions and Answers
- What are the main challenges faced by agricultural startups and entrepreneurs?
The three primary challenges are: (1) infertile soils due to overuse of fertilizers and pesticides, (2) a generational and knowledge gap, and (3) lack of financial support.
- How did the Green Revolution impact agricultural soils?
The Green Revolution led to infertile soils due to excessive use of fertilizers and pesticides, necessitating regenerative methods to maintain soil fertility.
- Why is there a generational gap in the agricultural sector?
The average age of farmers is 57, and younger generations prefer other sectors due to a lack of opportunities. Older generations’ resistance to adopting new technologies further complicates the situation.
- What makes accessing financing difficult for agricultural startups and entrepreneurs?
Requirements for financing prioritize bank interests over those of producers, and regulations for alternatives like SOFOMES are complex.
