UK farming and agritech: innovation, trends, and opportunities

Enter agritech: the use of technology to solve practical problems in food production. With the right support, agritech offers SMEs and farm-based innovators a chance to lead the transition towards smarter, more sustainable farming.

Overview of UK farming and agritech

The UK’s agritech sector is an engine of innovation. From robotics to remote sensing, agritech is revolutionising how we grow, manage and distribute food. This sector spans everything from machinery manufacturers to software developers, research labs to precision farming startups.

Importantly, it’s not just about technology for technology’s sake. Agritech innovations are increasingly focused on real-world outcomes: improving yields, reducing emissions, enhancing animal welfare, and securing the UK’s food supply.

The state of UK agriculture

UK farmers operate in one of the most advanced agricultural systems in the world. But recent years have brought seismic shifts:

• The phase-out of EU subsidies and move towards Environmental Land Management (ELM)
• Post-Brexit export challenges and trade pressures
• Rising fertiliser, fuel and feed prices
• Labour shortages, particularly in seasonal roles

Against this backdrop, there is growing urgency to invest in innovation to reduce costs, boost productivity, and adapt to regulatory and environmental demands.

Key challenges facing UK farmers

There are a number of pressures facing UK farmers, including:

• Economic pressure: Price volatility, rising costs and unpredictable returns
• Sustainability targets: The NFU aims for net-zero agriculture by 2040
• Regulatory uncertainty: Changing policies and incentives
• Data integration: Technologies exist, but farmers lack the tools or knowledge to use them effectively

Agritech offers potential solutions to all of the above, but adoption remains uneven.

The role of technology in modern farming

Modern farms are data-rich environments. From soil sensors to livestock trackers, there is no shortage of tech tools. What’s changing now is the accessibility and connectivity of these tools. Innovations in AI, robotics and data analytics are making it possible to work smarter, not just harder.

Examples include:

• Automated machinery that reduces manual labour
• Drones for surveying crops and assessing plant health
• IoT sensors that optimise water and nutrient use
• AI-driven forecasting to manage risk and plan harvests

Emerging agritech trends in the UK

1. Controlled Environment Agriculture (CEA) – e.g. vertical farming
2. Agri-robotics for harvesting and field management
3. Biological alternatives to synthetic fertilisers and pesticides
4. Blockchain and traceability tools
5. Precision livestock management and animal welfare monitoring

These trends are being shaped by both industry demand and public funding.

Precision agriculture and smart farming

Precision farming uses data and tech to apply inputs (like fertiliser, pesticides, or water) in exactly the right amounts, at the right time and in the right place. The benefits? Better yields, lower costs and reduced environmental impact.

Smart farming goes further: integrating automation, robotics and real-time analytics to streamline entire operations.

While adoption is growing, many smaller farms still face barriers such as cost, skills gaps and uncertain ROI.

Sustainable farming and low-carbon practices

Agritech is key to decarbonising agriculture. Innovations in low-emission fertilisers, methane reduction in livestock, regenerative soil management and renewable energy systems are helping farms reduce their carbon footprint.

Funding programmes like the Low Emissions Farming fund (closed 25 June 2025) are supporting this shift, alongside the UK’s broader net-zero goals. View current opportunities here.

Government support and funding for agritech

The UK government is backing agritech through Innovate UK grants, Farming Innovation Programme competitions, and support from agencies like DEFRA and UKRI.

Notably, Innovate UK’s Precision Breeding Competition (closed 25 June 2025) is enabling projects that improve productivity and sustainability through genetic innovation.

There are also a growing number of grant opportunities focused on agriculture and agritech innovation, from feasibility studies to commercial-scale trials. These funds are essential in helping SMEs bring their ideas to life and scale breakthrough technologies. You can explore current opportunities through our Grants Finder.

R&D tax credits for UK farmers and agritech businesses

R&D tax credits can provide vital support for agritech innovators. If you’re investing in new processes, developing prototypes, or tackling technical challenges on-farm, your work may qualify for tax relief.

To qualify, your project must aim to make an advance in science or technology and face a level of uncertainty. Agricultural R&D often includes:

• Testing new crop varieties
• Developing custom machinery
• Building or trialling new software systems
• Reducing emissions through novel techniques

Find out if your business could benefit by booking a free one-to-one consultation with one of our sector experts.

Breakthroughs in crop and livestock management

Recent UK-led innovations include:

• Breeding disease-resistant crop varieties using gene-editing
• Autonomous robots for weeding and harvesting
• Wearable tech to monitor livestock health and behaviour

These breakthroughs are not only improving productivity but also enhancing welfare and sustainability.

The future of UK agritech

Agritech will play a defining role in the UK’s transition to a more secure, sustainable food system. As technologies mature and costs fall, expect to see broader uptake across all types of farms.

However, success will depend on more than just tools. It requires collaboration, funding, and policy stability to build confidence and capability in the sector.

How we support agritech innovation

At Kene, we help agritech SMEs and farming businesses unlock funding for innovation. From identifying the right grant to strengthening R&D claims, we partner with you every step of the way.

If you’re working on new technologies, sustainability improvements or on-farm innovation, get in touch to see how we can help turn your investment into impact.