Is this the space-aged future of Australian agriculture?

Agriculture might look different in the future as Australia turns to digitalisation, regenerative agriculture and renewable energies.

A crazy goat wearing sunglasses and playing the electric guitar, representing the unpredictable future of ASX agriculture shares

Image source: Getty Images

The impact of climate change on Australian agriculture could lessen in the future but the industry faces mass digital disruption.

That’s the forecast from AgriFutures’ Future Forces report, which considers what challenges Australia’s agriculture sector might face over the next 10 years.

In one scenario, the food sector may have to tackle viral disinformation campaigns and increasing digitalisation.

In another, farmers in the future might look to vertical farming, regenerative agriculture and renewable energies to mitigate the challenges climate change places on agriculture in Australia.

So, what might investors in ASX agriculture shares have to look forward to in the future? Let’s take a look.

What does the future of Australian agriculture look like?

Technological advances

The AgriFutures report examined multiple scenarios that could be a possible future for Australia’s agricultural industry.

One is that climate change will reach a peak and Australian agriculture will be forced to adapt or leave.

Vertical farming, automation, renewable energy, and carbon sequestration all come into play in this idea.

With such adaptation, comes a diversification of farmers’ income streams. Farmers might turn to the sale of excess renewable energy and carbon credits to fund their livelihoods.

The report also discussed the possibility of automated fishing operations.

 These could involve satellites with microchips planted into fish to track catches. They could also enable consumers to purchase wild fish before or during the catch, skipping the middleman entirely.

Both scenarios will see major disruptions to the Australian agriculture scene.

As such, we might begin to see some interesting announcements come from ASX-listed agriculture companies in the near future.

Digital interconnectedness

The report also discusses the likely power of disinformation in the future of Australian agriculture.

As brands become more active on social media, digital hit campaigns on companies could be the new norm.

Consumers might soon be able to trace their food from paddock to plate, right back to the genetic lines of their hamburgers.

While this sounds like exciting stuff, the report talks of the possibility of consumers investing in misinformation. Such misinformation could – for instance – claim that certain genetic lines of cattle are better for Australian’s diets and lifestyles.

This misinformation could mean ASX-listed agriculture and food companies need heavy media and marketing teams to tackle disinformation created by consumers and market competitors.

Further, future consumers may be able to play a more active role in the making of food. An example could be the potential to order products to be custom grown or produced.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares