By Kyle Peschler
From the November/December 2024 Issue
The state of agribusiness has been affected by numerous trends. Shifts and advancements in technology, sustainability goals, consumer preferences, and economic pressures have made a significant impact on agribusiness. Key factors include sustainable/regenerative farming, digital transformation and smart farming, climate resilience, urban/vertical farming, and shifting of consumer preferences.
A strong emphasis on sustainability is driving agribusinesses toward regenerative practices like crop rotation, cover cropping, and soil conservation. These techniques aim to improve soil health, sequester carbon, and reduce environmental impact.
Digital technologies such as AI, IoT, and blockchain are becoming more prevalent in the agribusiness sector. These tools help agribusiness companies and farmers make data-driven decisions, streamline operations, and enhance traceability in the supply chain.
The rise of urban farming is another significant trend, as cities increasingly invest in food production closer to consumers. Vertical farms and aquaponic systems are expanding, which helps enhance food security and reduce transportation costs, catering to urban populations and creating greener urban spaces.
Louisiana: Harvesting Growth And Innovation
Agribusiness has a long history as a staple of Louisiana’s economy, a tradition that continues today with innovation fueling the delivery of essential, high-quality goods to worldwide markets.
Louisiana’s favorable climate, rich soil, and access to water make it an ideal location for agricultural ventures. Staple goods such as cotton and soybeans, along with timber and livestock, drive north Louisiana’s ag economy, while harvests in the southern half of the state bring plentiful rice, sugarcane, and seafood hauls. And all across the state, agribusinesses are supporting the global energy addition by providing feedstocks—wood pellets, sugar cane bagasse and soybean—for renewable fuels and electricity.
No matter where you find yourself, there’s a universal spirit of embracing new practices to boost yields and profitability.
Louisiana State University AgCenter researchers are developing precision agriculture, crop modeling, and machine learning techniques to move beyond traditional applications of seeds, fertilizers, pesticides, and herbicides. Using drones, satellite imagery, AI-powered analytics, and smart sensors, researchers are:
- Monitoring crop health in real-time
- Optimizing irrigation and fertilizer use
- Predicting and mitigating pest infestations
- Increasing overall farm productivity
At Southern University, food and farm safety programs ensure Louisiana goods hit the supply chain without issue. The U.S. Department of Agriculture recently partnered with Southern University to create its first-ever USDA Nutrition Hub to coordinate and integrate the work of research, development, and education agencies addressing national food security.
Processing goods in Louisiana takes various forms, from bottling drinking water and soft drinks to providing mainstays such as gumbos, hot sauces, and crawfish. Once supply chain-ready, products move through the state’s superior transportation infrastructure and logistics systems.
The Mississippi River port system provides worldwide access through the Gulf of Mexico, positioning it as a pivotal commerce hub. It also provides direct access by barge to 17 states, including America’s Heartland, enabling transport of agricultural and manufactured goods, including crops like corn, soybeans, and wheat. In fact, 80% of the nation’s grain travels through Louisiana ports, and the system ranks second nationally in combined foreign and domestic annual waterborne tonnage handled.
With a prime south-central U.S. location, Louisiana has six interstate highways, six Class 1 railroads, six deepwater ports, and seven primary airports, providing a diverse range of options for efficient inbound and outbound logistics. Strengthening its trade capabilities, the USDA recently awarded Louisiana nearly $5 million to strengthen food supply chain infrastructure.
“Fertile soils, water access, the domestic and international gateways provided by the Mississippi River and Gulf of Mexico and a dedicated, skilled workforce are just a few of the competitive business advantages Louisiana brings to the table for the ag sector,” said Louisiana Economic Development Secretary Susan B. Bourgeois. “Other states would do anything to have just one of these things. Louisiana has them all.”
Visit www.opportunitylouisiana.gov for more information.
