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AgTech M&A Is Up as Buyers Seek to Expand Product and Technology Offerings
Capstone Partners’ latest Agriculture Technology (AgTech) M&A Update reports that sector participants ramped up agriculture technology (AgTech) M&A activity in 2025 to bolster product offerings and technology capabilities despite challenges constraining end market farm demand. Falling crop prices, rising input costs, and prolonged interest rate pressures weakened the farm-level spending power needed for capital-intensive technology and equipment purchases throughout 2025. Despite pressures, rapid technological development in areas such as artificial intelligence (AI), automation, and robotics helped prop up sector growth and AgTech adoption. Businesses touting these next generation capabilities, particularly those that help address systemic challenges such as climate change and food security, were a particular area of interest for sector acquirers. Headwinds are expected to continue driving acquirers towards acquisitions of scalable AgTech startups with solutions that have effectively demonstrated go-to-market feasibility and tangible farm-level benefits such as cost savings, enhanced yields, and operational efficiencies.
Also included in this report:
An analysis of historical AgTech M&A valuations.
An overview of the adoption trends and farm-level operational benefits associated with precision agriculture.
How company-level climate and energy goals helped fuel innovation and investment in carbon sequestration technologies for agricultural applications.
Why long-term food scarcity needs and ongoing technology advancements are supporting venture capital (VC) investment activity and acquirer interest in the Controlled Environment Agriculture (CEA) segment despite high upfront and operational costs.
Capstone Partners’ Agriculture Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the AgTech sector. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more AgTech M&A analysis like that featured in this report or to speak with one of our Agriculture Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.
