Overcoming barriers to agritech adoption in the UK

These hurdles not only affect small family-run farms, but also established producers and supply chain partners seeking to modernise.

To unlock the sector's full potential, we need a better understanding of what’s holding businesses back and a more coordinated effort to provide the support, funding and infrastructure needed to enable meaningful change.

Understanding the agritech opportunity

Agritech has the power to reshape UK agriculture and food systems. From improving productivity to cutting carbon, the benefits are wide-reaching. Businesses can reduce input costs, increase yields, enhance traceability and food safety, and mitigate their environmental footprint. These outcomes are aligned with both economic goals and national sustainability targets.

Yet despite the wide range of benefits, agritech remains inaccessible for many in the sector. Businesses often struggle to bridge the gap between a promising concept and scalable, day-to-day application. That’s where targeted support can make all the difference.

The role of agritech in UK farming

Adopting technology isn't just about improving productivity – it’s about ensuring long-term viability. In a sector under increasing pressure from climate change, labour shortages, regulatory reform and global market volatility, agritech offers businesses the opportunity to build resilience and adaptability.

From automating labour-intensive tasks and supporting regenerative farming practices, to providing real-time insight for informed decision making, agritech can be a vital tool in transforming the way farms and food producers operate. But to realise this potential, the adoption process needs to be supported and strategic.

Current market potential and trends

The UK agritech sector is currently worth over £14 billion and continues to grow, fuelled by a mix of private investment and public funding. Emerging trends are shaping the future of the industry:

• Artificial intelligence for crop and livestock diagnostics
• Robotic automation in horticulture, dairy, and harvesting
• Controlled environment agriculture (CEA) such as vertical farming
• Renewable energy generation and storage on farms

Despite this rapid innovation, adoption across the farming sector isn’t uniform. Many businesses remain cautious, uncertain whether the benefits will outweigh the costs.

Key barriers to agritech adoption

While agritech presents a huge opportunity for UK agriculture, adoption is held back by several common challenges. These include high upfront costs, uncertainty about returns, unclear policy support, and a shortage of digital skills.

Many businesses struggle to justify investing in new technologies when margins are tight and payback periods are uncertain. Even when funding is available, it can be hard to access or navigate. Shifting regulations and support schemes add further uncertainty, making it difficult to plan with confidence.

A widespread skills gap also limits progress. For agritech to succeed at scale, businesses need practical training, peer support, and accessible advice.

Overcoming these barriers will require greater collaboration, targeted investment and long-term commitment across the sector.

Financial challenges and upfront costs

Agritech solutions often come with high upfront costs, from advanced equipment and custom integrations to installation and maintenance. For businesses with tight cashflow or limited access to finance, this initial investment can be difficult to justify – especially if the benefits won’t be realised for several years.

In some cases, the cost of trialling and adapting new systems can also outweigh any short-term gains, making businesses reluctant to take the leap without financial assistance.

Unclear return on investment

Even when the benefits of agritech are well documented, it can be hard for individual businesses to calculate the financial case. Uncertainty around payback periods, cost-benefit ratios, or ongoing support can stall progress.

For example, a new technology might promise yield increases or efficiency gains, but weather patterns, commodity prices and operational variables all influence the bottom line. This risk makes decision-makers cautious about committing without further evidence or support.

Lack of policy clarity and regulatory support

Agriculture is highly policy-dependent. When regulations, incentives, and support schemes are in flux, businesses struggle to plan long-term. This is particularly true when schemes such as the Environmental Land Management (ELM) programme or post-Brexit trade frameworks change direction mid-cycle.

A lack of clear guidance and support for new technologies can lead to confusion and hesitancy. Without firm policy signals, agritech adoption often remains stalled in the early-adopter phase.

Knowledge gaps and skills shortages

Digital and technical literacy are increasingly critical in agriculture. Yet many businesses lack the in-house expertise needed to evaluate, install and maintain agritech systems.

Beyond that, there’s a broader need to upskill the sector – from understanding what's available, to knowing how to integrate solutions without disrupting operations. Without confident, knowledgeable teams, the return on investment is likely to diminish, or worse, be abandoned altogether.

Practical solutions for UK Farmers and Agritech Businesses

Despite the challenges, there are clear and achievable steps that can help more farmers and agri-businesses embrace innovation.

One of the most effective ways to reduce financial risk is to tap into the range of grants and R&D tax incentives available. Funding from Innovate UK, Defra, and other government bodies can support feasibility studies, field trials and full-scale implementation. Meanwhile, R&D tax credits can provide relief for businesses investing in new products, systems, or techniques, even where the outcomes are uncertain.

Upskilling is another key area of focus. Providing farmers and rural workers with hands-on training, digital tools, and knowledge-sharing platforms can accelerate adoption. This includes supporting farm advisors and agronomists who often act as trusted intermediaries. Building confidence through peer-led demonstration projects can also help de-risk decisions and showcase what’s possible.

Finally, creating stronger links between researchers, tech developers, and end users is essential. This means fostering collaboration across the supply chain, co-designing tools that solve real-world problems, and ensuring technologies are practical, affordable and easy to integrate into daily operations.

These practical steps can help turn ambition into action – enabling more UK businesses to take advantage of the agritech revolution.

Accessing funding and R&D tax incentives

Financial support is one of the most effective ways to lower the barrier to innovation. UK businesses can benefit from a range of grants and R&D tax relief schemes that make trialling, developing, or scaling new technology more accessible.

This includes Innovate UK competitions, sector-specific funding calls, and R&D tax credits for eligible work. Whether you're testing a new irrigation system or building a data platform to monitor soil health, your activity may qualify. The key is knowing what support is out there – and how to apply successfully.

Building skills and knowledge for technology adoption

Upskilling the workforce is essential for long-term agritech success. Fortunately, support is growing. Programmes like Knowledge Transfer Partnerships (KTPs), demonstrator farms, and online learning platforms are helping bridge the skills gap.

Businesses should also look to peer learning, supplier training and collaborative networks to keep staff engaged and confident in the tools they’re using.

Strengthening collaboration across the supply chain

Agritech adoption is easier when everyone, from input providers to processors to retailers, is aligned. Collaboration across the value chain allows for shared risk, better data flows, and stronger business cases.

By working together, businesses can pool resources for pilot schemes, negotiate better terms, and design solutions that fit across multiple stages of the production and distribution process.

Leveraging government and industry support

The UK government is increasingly focused on agri-innovation. Organisations such as DEFRA, UKRI and the Agri-Tech Centres of Excellence are working to accelerate tech development, de-risk adoption, and align funding to impact.

Businesses should engage early and often with these bodies, making the most of pilot programmes, innovation hubs, and tailored advice to ensure their agritech strategy is fit for the future.

The path forward: unlocking UK agritech’s full potential

Agritech adoption isn’t just a technical challenge, it’s a strategic opportunity. To unlock its potential, UK agriculture needs consistent funding, greater awareness, and long-term collaboration.

It’s not enough to develop new technologies, we need to build the right environment around them. One where businesses are equipped, supported and incentivised to act. With the right backing, agritech can drive a stronger, more resilient, and more sustainable food system.

How we can help drive innovation

At Kene, we help organisations across the agricultural value chain secure the funding they need to innovate. Whether you’re a grower, tech developer, co-op, or manufacturer, our team supports you with strategic funding advice, tailored grant searches, and expert-led grants and R&D tax claims.

We understand the complexity of agritech adoption and we’re here to help you navigate it. Speak to our team and turn your ambition into action.