Close Menu
    Facebook X (Twitter) Instagram
    • Contact Us
    • About Us
    • Write For Us
    • Guest Post
    • Privacy Policy
    • Terms of Service
    Metapress
    • News
    • Technology
    • Business
    • Entertainment
    • Science / Health
    • Travel
    Metapress

    Is Farmers Edge (TSE: FDGE) an Innovative Agtech Startup or a Trap for Investors?

    Lakisha DavisBy Lakisha DavisJanuary 4, 2022
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Is Farmers Edge (TSE FDGE) an Innovative Agtech Startup or a Trap for Investors?
    Share
    Facebook Twitter LinkedIn Pinterest Email

     Wade Barnes launched an Agricultural Technology startup in Canada in 2005 named Farmers Edge (FE) as a platform for businesses and farmers to coordinate their operations using technology. Its primary focus was correct decisions based on data.

    What do We Know about Farmers Edge?

    FE is an Artificial Intelligence (AI) based digital research company that collects real-time Agridata through various sensors on the ground and in the air, processes these reams of data, and suggests to stakeholders on their palmtop how to improve yields and revenues. So, it is FE’s FarmCommand software that directly helps about 3000 growers in 23 million Agricultural Farms spanning over six counties, including Canada, the USA, Brazil, Russia, Ukraine, and Australia.

    Farmers Edge Data Streaming Sources:

    • Civilians use Drones of Green Aerospace Technology
    • Weather forecasting from the weather service station
    • Terrain imagery and mapping from Sentinel 2, Landsat 8, Landsat 8 satellites
    • Commercial Aircraft company data e.g. Airbus

    Financial Difficulties

    Using big data technology and AI in improving yields is music to investors’ ears and that’s why FE has repeatedly been able to mop up funds from financial markets since its inception in 2005. Until June 2017, they had raised $ 94 m in funding, mostly used to fund the costly expansion in far-off continents.

    Burdened with the need for more operational finances, FE went public in March 2021 with a 16% stake. Subsequently, Fairfax Financial Holdings (FFH) now owns 65% shares. Despite this infusion of cash, by November 2021, FDGE share had fallen from $20 to $2.75. 

    The bright side of Farmers Edge Finances

    In June 2021, FE still had the liquidity of CA $ 94 m, negligible debt, and revenues expected to grow 35.4% every year. Earnings had grown 4.35 for the past five years. Yet, the liquidity burn rate for the last FY was incredibly high at CA$63 m, just about enough for 18 months. 

    Simple mathematics states that a market cap of CA $225 m, and spending $63 m is 28% of the company’s value, which is unacceptably high. Now a market cap is even less than $143 m. This points to another round of share selling, thereby antagonizing shareholders further and endangering long-term sentiment.

    FE Financial Performance Issues

    To put it bluntly, FE is currently unprofitable and is forecasted to stay the same in the next three years. 

    Their partner company Fairfax Financial Holdings (FFH) lost $10.5 m in 2017 and $32.7 m in 2018 due to investments in FE. In 2018, FFH poured in $64 m and recorded more losses of $32.7 million. 

    The woes don’t end here. FE’s market capitalization has dropped precipitously from $612.54 m in March to $115.2 m in November 2021. 

    When the concept of technology in Agriculture is feasible, then management must take some of the blame for poor financial performance and there is evidence to support this claim.

    Lack of Professional Managers 

    Wade Barnes, is rumored to have appointed personal relations like school buddy Trevor Armitage as Chief Operating Officer (COO) and wife Marina Barnes as Chief Marketing Officer (CMO). Executive positions, out of necessity have to be dished out on merit, and this decision alone reflects in weak business judgment. 

    Then, the CMO Marina Barnes decided to enter Central Asian and US markets despite not having forecasted returns available in these areas.

    Marina Barnes’s official biography of 2009 to 2013, states that she managed the multimillion expansion of the company’s Eastern European business. However, FE’s Eastern European sector generates just around 2% of sales, and the company lost 1.6 m acres in the area.

    Marina Barnes was an interpreter when she met Wade and is now the CMO of a company.

    Naturally, such glaring unprofessionalism is reflected in former employees’ testimonials about the FE internal work.

    Employees reviews of Farmers Edge

    “Extremely toxic, depressing and stressful environment” – open source

    “No personal development or training budget” – open source

    “Senior management very far removed from technology and R&D” – open source

    “Your goal every week is to sign up 15000 acres, but they only care for their investors, not growers” – open source

    The worst review is of management not being focused on the people who matter – farmers. 

    Four Top Managers Left FE in 2021

    · Joel Duda, VP of Technology July, 2019-May 2021, 

    · Perry Liu, Board Observer March 2015 – March 2021

    · Lori Robidoux, CFO, 2005-202 (retired) His successor, CFO David Patrick, left in less than a year

    · Jorge Padua, VP of Latin America 2016-2021

    Perhaps the experienced CFO’s leaving could have triggered the exodus in 2021, but there is no evidence to suggest the same.

    The high rate of employee turnover is never healthy and that too in the executive echelon is suicidal. 

    Customers Reviews

    “After three years of that, I wasn’t’ 100% happy with the services we were getting versus what we were paying… I think our bill was going to be around $ 37000… and I decided to part ways” – open source

    “Having to hound them for six months before anything gets done” – open source

    Final Thoughts

    While Farmers Edge has a promising concept of green technology enabling food production, negative testimonies, and rumors on whimsical strategic management, liquidity crunch, and long-term losses does not bode well for investor confidence.

    Therefore, Farmers Edge gets thumbs down from an investment standpoint.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Lakisha Davis

      Lakisha Davis is a tech enthusiast with a passion for innovation and digital transformation. With her extensive knowledge in software development and a keen interest in emerging tech trends, Lakisha strives to make technology accessible and understandable to everyone.

      Follow Metapress on Google News
      The top engagement ring styles in 2025
      June 30, 2025
      Tips for Exploring the Caribbean by Water
      June 30, 2025
      Yachts, jewels, and passports: The luxury status symbols of 2025
      June 30, 2025
      The Network Architect’s Blueprint: Building Tomorrow’s Infrastructure Today
      June 30, 2025
      TM44 Air Conditioning Compliance: Converting Legal Requirements into Operational Excellence for Hospitality
      June 30, 2025
      Natural Ways to Soothe Anxiety and Reset Your Nervous System
      June 30, 2025
      How to File Your Income Tax Return in 2025 Using TaxBuddy’s DIY Platform
      June 30, 2025
      Received an Income Tax Notice? Here’s How TaxBuddy’s DIY Tool Helps You Respond
      June 30, 2025
      Biophotonic Glass: The Perfect Syrup Bottle for Natural Preservation
      June 30, 2025
      Boston Upgrades Its Locks: How Locals Are Strengthening Home, Car, and Business Security in 2025
      June 30, 2025
      Integrating Garage Door Systems into Contemporary Architectural Design
      June 30, 2025
      How You Can Help: Practical Ways to Support a Sick Friend
      June 30, 2025
      Metapress
      • Contact Us
      • About Us
      • Write For Us
      • Guest Post
      • Privacy Policy
      • Terms of Service
      © 2025 Metapress.

      Type above and press Enter to search. Press Esc to cancel.