Farmers and others interested in agriculture have no shortage of ideas when it comes to ways to improve the production and handling of food and fiber. The problem is translating those ideas into economically viable products or production systems. 

That’s why it’s important that AgLaunch Engine, LLC, a subsidiary of Memphis, Tenn.-based non-profit, AgLaunch Initiative, has been selected as a 2023 Regional Innovation Cluster awardee by the U.S. Small Business Administration Office of Investment and Innovation. 

The selection, which was announced by SBA Administrator Isabella Casillas Guzman, includes a five-year, $2.5-million commitment to build on the Regional Innovation Cluster operated by AgLaunch Engine LLC in the Mississippi Delta region since 2019. 

“Regional Innovation Clusters are funded by SBA to help deepen our geographical reach and support innovative companies that are building technologies critical to our national security and economic competitiveness,” said Guzman. “We are insuring we can lead the world in emerging technologies while creating great companies and jobs in all corners of the country.” 

“This federal award allows AgLaunch to bolster opportunities for startups and small businesses within the Mid-South Mississippi Delta RIC, the first SBA-designated national cluster for the agrifood sector,” said AgLaunch President Pete Nelson. 

18 startups

AgLaunch recently announced a new group of 18 startups that it is working with to help develop their ideas into viable business strategies. As part of that process, the entrepreneurs frequently meet with area farmers to discuss their concepts, and, in some cases, test them in the farmers’ operations. 

“The Mississippi Delta offers immense potential for transforming our food systems due to its abundant agricultural resources, diverse talent and institutional partnerships,” he said. “We’re grateful for SBA’s support, which validates our multi-state regional approach to growing investments in agtech startups and small businesses that are helping to bring about this transformation.” 

RICs typically are networks of small businesses, suppliers, service providers and institutions that collaborate to optimize resources, compete effectively and foster innovation and job creation, he noted. 

“This award builds from additional federal and state investment toward a regional innovation model, including the U.S. Economic Development Administration’s Build to Scale program, and the Tennessee Department of Agriculture and Launch Tennessee’s mentor and investment partnership,” Nelson said. 

The Mid-South Mississippi Delta RIC is comprised of 102 mostly rural counties across Arkansas, Kentucky, Missouri, Mississippi and Tennessee, representing ample production acreage, research institutions, and processing, storage and logistics infrastructure for growing successful agtech innovations and small businesses.  

Regional activities

AgLaunch, in collaboration with key partners, will lead regional activities, including cohort-based programs, business acceleration, commercialization support, mentorship, access to capital, market development, and other services.  

They will also expand their Farm-Centric Innovation Model, a unique approach for nurturing agriculture businesses, attracting investment, and involving farmers in the innovation process. 

“The RIC’s primary focus is creating and scaling rural small businesses that bridge urban food processing opportunities and emerging consumer trends,” Nelson said. “AgLaunch also manages SBA-funded RICs in the Pacific Northwest and Southern Appalachian regions, alongside regional initiatives with private sector partners in the Midwest and Southern Plains.” 

“Regional Innovation Clusters work directly with American innovators and entrepreneurs to forge connections, provide industry or technological subject matter experience, and assist with access to capital, customers, and contracts,” said Bailey DeVries, associate administrator for the SBA’s Office of Investment and Innovation. “We are incredibly excited to expand this important national innovation network and ensure innovative, high-growth businesses thrive in industries of national importance.” 

Nelson said congressional delegations. USDA Rural Development agencies and state leaders played a pivotal role in making the award possible. In particular, he noted the support of AgLaunch’s work by Tennessee Gov. Bill Lee and Agriculture Commissioner Charlie Hatcher, and the sustained effort by Tennessee Department of Agriculture and Launch Tennessee toward a regional open innovation model to benefit farmers and agtech startups.  

Nelson also cited the USDA’s Rural Business Investment Program and Farm Credit Mid-America, which along with other US Farm Credit Institutions, are providing capital towards the AgLaunch innovation model.