FarmLogs Is Going To Change The Way That Farmers Manage Their Business - Forbes

(Credit: FarmLogs.com)

The agriculture industry accounts for over 36% of the global workforce, yet most startups ignores the need of the market.  There is a lack of useful software platforms that is tailored towards farmers.  This is what makes FarmLogs, an Ann Arbor, Michigan based startup whose mission is to invent the future of farming, worth checking out.  I recently sat down with FarmLogs co-founder Jesse Vollmar to learn more about what the company’s goals are.  Jesse told me that he grew up on a mid-size family farm in Caro, Michigan, which gave him the opportunity to learn about the demands of the market.

When Jesse was in high school, he noticed that farmers around the area spent a good amount of money buying clunky desktop farm management software.  When the farmers were unable to figure out how to use the software, many of them ended up paying for classes that taught them how to use it.  Out of frustration, many of the farmers would abandon the desktop software and cram farm management details into their Google Calendar accounts.

When both FarmLogs co-founders Jesse Vollmar and Brad Koch graduated from Saginaw Valley State University in 2011, they were running a small IT consulting company.  The two decided to take a shot at designing a custom web application for farmers based on some of the feedback that they received from the community.  This led to the prototype of FarmLogs.  Once the prototype was complete, the two applied for Y Combinator for the winter 2012 program.  Y Combinator is an accelerator program that provides seed money, advice, and connections for three months.  After companies complete the Y Combinator program, they are provided with resources as necessary.

Jesse and Brad flew to California for a 10 minute pitch to the Y Combinator team after being accepted for an interview.  Jesse told me that he was surprised that FarmLogs was accepted into Y Combinator because the interviewers were asking some very tough questions.  As we were chatting at the Eastern Accents coffee shop in Ann Arbor, Jesse told me that during the Y Combinator program, “you’re surrounded by incredibly intelligent people and are part of a family with some of the brightest minds around the world.”

I asked Jesse whether there was any pressure from Y Combinator for FarmLogs to remain in Silicon Valley upon the completion of the program.  He said that Y Combinator was very supportive and helped their team come up with the pros and cons of staying in California instead of moving back to Michigan.  Ultimately, the decision came down to the customer.  “Being located in the Midwest, it gives us the opportunity to be within a day’s drive of the Corn Belt,” Jesse told me.  The company is also able to benefit from being close to the University of Michigan and a startup culture that is growing around Ann Arbor.

FarmLogs has seen different groups of farmers using their platform.  When you log in to FarmLogs, you will see a dashboard that was designed for row crop farms such as corn, wheat, and soybean fields.  However the company has seen that some of their customers run vineyards, orchards, and produce farms across multiple continents.

Farming is a seasonal business, but there is a lot that can be done through FarmLogs when farmers are not in the field.  “During the growing season, we are helping farmers monitor crop progress, track everything that they are putting in the crops, and find ways to optimize the process.”  Farmers can track inventory and grain sales through FarmLogs.

FarmLogs can geolocate farmers and display the market prices for crops in the area.  FarmLogs provides Chicago Commodities futures market information, video commentary, and related news.  ”When you have hundreds and thousands of bushels of corn at somewhere around $7 per bushel, finding ten cents more can make a huge difference,” Jesse told me.  “During the off-season, we can help them plan for the upcoming year like the crop rotation, what inputs are going to be needed, and what it is going to cost them.  We drill it down to a per-acre level so they know how much they will make during the planning phase.”

Aside from raising capital from Y Combinator, FarmLogs raised $1 million in funding led by two Midwest based venture capital companies, Hyde Park Ventures and Huron River Ventures.  Hyde Park is based in Chicago and Huron River Ventures is in Ann Arbor.  Jesse told me that some of the team members at Hyde Park have consulted in the agriculture industry.  He also pointed out that one of the offices for Huron River Ventures was just up the street from them.  Tim Streit, one of the Managing Directors for Huron Ventures, ”took a seat on our board and is helping us build our business.”

Jesse said that they are using the funding for building the team and accelerating the development of the product.  One of their most recent hires is based in Des Moines, Iowa and is focused on leading their online marketing growth.