In a move aimed at tackling inefficiencies in nitrogen fertilizer use, global digital agronomic solutions provider CropX has acquired Ames (Iowa) based EnGeniousAg, a startup specializing in advanced nitrogen sensing technology.
Economic and Environmental Impact
Nitrogen fertilizers are essential for crop growth but represent a significant cost and environmental burden. Inefficient application results in substantial financial losses and environmental issues, including greenhouse gas emissions and water pollution. Approximately 70% of applied nitrogen does not benefit crops and contributes to pollution, costing up to $1 trillion annually.
CropX agronomic farm management system
EnGeniousAg offers a solution with its patented nitrogen sensing technology. This technology provides real-time, in-field measurements of nitrogen levels in plants, soil, and water. By integrating these sensors into CropX’s agronomic farm management system, farmers will gain precise, actionable data to optimize nitrogen fertilizer use, improving crop yields and reducing both financial and environmental impacts.
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Targeting a $100 Billion Market
The $100 billion annual nitrogen fertilizer market is a primary target for CropX’s acquisition. EnGeniousAg’s technology will enhance CropX’s ability to offer advanced nitrogen management solutions, aligning with CropX’s mission to increase nitrogen use efficiency and minimize its negative effects.
Tomer Tzach, CEO of CropX, emphasized the significance of this acquisition:
“Nitrogen management is a critical, unsolved challenge of modern farming. We are eager to provide a solution with such transformative potential.” He noted that EnGeniousAg’s technology perfectly complements CropX’s objective of improving agricultural sustainability and efficiency.
EnGeniousAg’s co-founder, Mike Castellano, highlighted the benefits of the partnership: “We have spent years optimizing and field testing our nitrogen sensor technology and are excited to work with CropX to bring these advancements to farmers globally.”
Co-founder James Schnable acknowledged the support from the Small Business Innovation Research (SBIR) programs, which facilitated the development and application of their technology.
Advanced Sensor Capabilities
The EnGeniousAg sensors, according to the company, offer real-time, 24-hour nitrogen measurements, and “are the first of their kind.” This capability will provide CropX users with unprecedented insights into nitrogen dynamics, enhancing the precision of fertilizer applications.
The technology, spun out from Iowa State University with support from the Department of Energy’s ARPA-E ROOTS program, brings unique intellectual property and deep expertise to CropX.
Broader Strategy and Impact
The integration of EnGeniousAg’s technology is expected to advance CropX’s capabilities in agricultural nutrient management, contributing to significant cost savings and operational efficiencies for farmers. This acquisition also supports CropX’s broader strategy to expand its agronomic solutions.
Since 2019, the company has completed six acquisitions, including its most recent purchase of Australia’s Green Brain. According to CropX, its agronomic farm management system, active in over 70 countries, leverages data from various sources to deliver comprehensive insights for optimizing farm operations.