The Midwest has long been the agricultural heartland of the US and the modern day is no exception. However, recent technological developments in agriculture (AgTech) are introducing a whole new dimension to farming, one driven by data with the potential to increase both efficiency and sustainability (Farmonaut, 2024). The market for these technologies was valued at $24.42 billion in 2024, and is projected to reach $48.98 billion by 2030 (Research and Markets, 2024). 

AgTech applications are widespread, but the most striking and prevalent in the Midwest are those pertaining to precision agriculture. This approach combines data management systems made up of drones and sensors with AI to guide a farmer’s decision-making (Grant & Zhang, 2019). From the amount of seeds and fertilizers that should be used, to the early identification of disease risks, the technology can both save costs and reduce the environmental impact of farming (Farmonaut, 2024). 

AgTech has seen great growth in the Midwest, with over 1,660 AgTech companies in Illinois alone (Intersect Illinois, 2023) and conferences like AgTech Connect promoting further collaboration and investment in the industry (AgTech Connect, 2025). Innovation and user experience are at the center of what companies aim to provide with their services and many of them are based in the Midwest for this reason. For example, Brazilian IoT precision agriculture company Solinftec has selected West Lafayette, Indiana for their US headquarters. The company has cited the Purdue Research Park and Wabash Heartland Innovation Network (WHIN) as ideal resources for expanding their offerings (Purdue University, 2019). Another prominent company is Minnesota-based smart drone imagery startup Sentera, which was recently acquired by John Deere (John Deere, 2025). This investment by an industry leader illustrates AgTech’s status as a critical sector, and one that will transform the agriculture industry.

Government and state programs have actively supported AgTech, encouraging the proliferation of the sector as well as attracting companies to their states. On a federal level, the USDA’s Agriculture Innovation Center Program (AIC) gives grants to support the creation of innovative agricultural products (USDA, 2019). The USDA has also funded a number of AgTech studies, including the University of Illinois’ I-FARM (Illinois Farming and Regenerative Management). Throughout the study, researchers have explored advanced precision farming with remote sensing, autonomous robotics, and AI animal health monitoring (University of Illinois Urbana-Champaign, 2024). The Illinois government has also taken steps to promote AgTech itself, with programs such as Ag Invest offering below market rate loans to agribusinesses and farmers, encouraging investment in AgTech adoption (Illinois State Treasurer, 2020). 

AgTech adoption does face challenges. An aging farmer population, lack of digital literacy in rural areas, and high initial investment costs are significant hurdles in implementing AgTech technologies (Research and Markets, 2024). Yet, the Midwest’s status as one of the most important agricultural regions in the country in combination with its established ecosystem of research institutions, startups, and industry leaders are surely a recipe for success and has already manifested in North America holding over 35% of the global AgTech market (Research and Markets, 2024).