Maria Gomez is an innovation manager at Mercy Corps Ventures, an active seed- and early-stage investor in emerging markets. Andrew Massaro is the CEO of Stable Foods, which offers smallholder farmers “irrigation-as-a-service” subscriptions.
This post is the first of a two-part series; the second blog will share key insights after the pilot is completed. The views expressed in this guest commentary are the authors’ own and do not necessarily reflect those of AgFunderNews.
Mercy Corps Ventures has partnered with Stable Foods to launch a pilot that will test IoT-based irrigation systems combined with regenerative agriculture training to improve soil quality and enhance the climate resilience of smallholder farmers in arid and semi-arid lands (ASAL).
In this pilot, Stable Foods will extend its services to regions beyond the water-rich areas around Lake Victoria; the company will use water from boreholes to test whether its model works in these other regions.
Additionally, the pilot will test IoT-based technology to monitor water use, helping Stable Foods better manage water resources, which is expected to reduce wastage and costs. Combined with end-to-end services offered by Stable Foods, including regenerative agriculture advice, this pilot has the potential to provide a comprehensive solution to support farmers in increasing their climate resilience.
Lack of irrigation driving low yields and incomes for African farmers
After speaking to over 500 farmers in Kenya, Stable Foods CEO Andrew Massaro found that the top issue shared among farmers — from small subsistence farmers to larger commercial farmers with three to four acres — is a lack of consistent access to water sources.
Farming in Kenya, particularly in its arid and semi-arid lands (ASAL), is challenging due to low rainfall and land degradation, leading to low productivity and poor quality products. Major issues include soil erosion, poor drainage, and low fertility of the soil.
Yet despite the critical need for water, irrigation remains minimal, with only 1% to 3% of arable land in Sub-Saharan Africa currently irrigated. Additionally, limited awareness of regenerative agricultural practices among smallholder farmers hinders their ability to reduce water and input needs, making it harder for them to adapt and mitigate the effects of climate change.
Image credit: Stable Foods
ASALs left out of most irrigation subscription models
Implementing appropriate irrigation and regenerative farming practices can improve soil quality in Kenya’s ASALs and enhance smallholder productivity. Irrigation helps farmers adapt to climate change, extend the growing season, and boost agricultural output.
However, traditional large-scale irrigation projects often fail due to high costs, unsuitable socio-ecological conditions, and lack of adaptability, leading to economic losses and system collapse when drought reserves are compromised.
Small-scale irrigation systems that use local water sources without major infrastructure can support diversified livelihoods, and have proven successful in other regions. However, in many instances they remain unaffordable for the poorest farmers. In Sub-Saharan Africa, for example, the International Water Management Institute found that farmer-led irrigation systems have benefited higher-income farmers, while the solutions remain unaffordable for the poorest farmers.
As a result, more affordable models offering irrigation-as-a-service have emerged around the world. For example, Mercy Corps Ventures’ portfolio company Stable Foods is building low-cost food production systems within smallholder farmer communities in Kenya.
Stable Foods offers smallholders an ultra-low-cost, climate resilient “irrigation-as-a-service” subscription that eliminates the need for upfront capital investments. To date, Stable Foods has successfully served over 100 smallholder farmers in the Lake Victoria region, achieving a 10x increase in production since the adoption of irrigation services. However, the model has not been tested yet in drier ASAL regions where water is scarcer and the main sources of it are boreholes.
For example, Brian, one of Stable’s clients, experienced a 6.4x increase in profits after the first season farming with access to irrigation and is expected to increase his profits by 10x by the end of the year.
Farmer-led irrigation services have increased access to water to smallholder farmers, yet in some instances have led to overuse of water. Finding innovative solutions to increase access to affordable irrigation for smallholder farmers, while ensuring responsible use of water, is crucial.
Image credit: Stable Foods
Our hypotheses
Our north star is to increase farmer profits. Other KPIs we will use to measure progress include:
Number and percentage of farmers accessing irrigation for the first time
Total number of farmers trained on regenerative agriculture practices
Adoption of regenerative agriculture practices (e.g., percentage of farmers adopting at least two soil health principles; number of acres transitioned to regenerative practices)
Yield per season
Input usage per season
Change in average revenue per acre, profit per acre (for farmer)
Borehole irrigation-as-a-service in ASAL is a viable business model for Stable Foods. Our north star is increased profits per acre. Other KPIs include:
Total number of farmers who purchase irrigation (% female farmers)
Cost of capex per installed acre
Average revenue per acre and average profit per acre (for the company) IoT powered irrigation leads to better environmental outcomes. Our north star is a reduction in water usage. Other metrics we will use to measure include:
Water usage per acre per kg produced
Crop growth
Irrigation failures and/or mistakes
Soil health metrics: water retention, organic matter, usage of pesticides
Through this pilot, we hope to show that appropriate irrigation coupled with adoption of regenerative agriculture practices can improve soil health and productivity of smallholder farmers — and therefore their climate resilience. From a business perspective, we hope to show that irrigation-as-a-service is a viable solution to increase access to irrigation for smallholder farmers.
If successful, this model could be scaled to other regions of Kenya and other emerging markets, where smallholder farmers currently cannot afford irrigation services.
Stay tuned for updates, evidence, and insights on our other Mercy Corps Ventures pilots, responsibly testing technology solutions to increase climate resilience of vulnerable populations in emerging markets.
Guest article: Mercy Corps Ventures launches IoT-powered irrigation-as-a-service in rural Kenya
August 8, 2024
Maria Gomez & Andrew Massaro
Maria Gomez is an innovation manager at Mercy Corps Ventures, an active seed- and early-stage investor in emerging markets. Andrew Massaro is the CEO of Stable Foods, which offers smallholder farmers “irrigation-as-a-service” subscriptions.
This post is the first of a two-part series; the second blog will share key insights after the pilot is completed. The views expressed in this guest commentary are the authors’ own and do not necessarily reflect those of AgFunderNews.
Mercy Corps Ventures has partnered with Stable Foods to launch a pilot that will test IoT-based irrigation systems combined with regenerative agriculture training to improve soil quality and enhance the climate resilience of smallholder farmers in arid and semi-arid lands (ASAL).
In this pilot, Stable Foods will extend its services to regions beyond the water-rich areas around Lake Victoria; the company will use water from boreholes to test whether its model works in these other regions.
Additionally, the pilot will test IoT-based technology to monitor water use, helping Stable Foods better manage water resources, which is expected to reduce wastage and costs. Combined with end-to-end services offered by Stable Foods, including regenerative agriculture advice, this pilot has the potential to provide a comprehensive solution to support farmers in increasing their climate resilience.
Lack of irrigation driving low yields and incomes for African farmers
After speaking to over 500 farmers in Kenya, Stable Foods CEO Andrew Massaro found that the top issue shared among farmers — from small subsistence farmers to larger commercial farmers with three to four acres — is a lack of consistent access to water sources.
Farming in Kenya, particularly in its arid and semi-arid lands (ASAL), is challenging due to low rainfall and land degradation, leading to low productivity and poor quality products. Major issues include soil erosion, poor drainage, and low fertility of the soil.
Yet despite the critical need for water, irrigation remains minimal, with only 1% to 3% of arable land in Sub-Saharan Africa currently irrigated. Additionally, limited awareness of regenerative agricultural practices among smallholder farmers hinders their ability to reduce water and input needs, making it harder for them to adapt and mitigate the effects of climate change.
ASALs left out of most irrigation subscription models
Implementing appropriate irrigation and regenerative farming practices can improve soil quality in Kenya’s ASALs and enhance smallholder productivity. Irrigation helps farmers adapt to climate change, extend the growing season, and boost agricultural output.
However, traditional large-scale irrigation projects often fail due to high costs, unsuitable socio-ecological conditions, and lack of adaptability, leading to economic losses and system collapse when drought reserves are compromised.
Small-scale irrigation systems that use local water sources without major infrastructure can support diversified livelihoods, and have proven successful in other regions. However, in many instances they remain unaffordable for the poorest farmers. In Sub-Saharan Africa, for example, the International Water Management Institute found that farmer-led irrigation systems have benefited higher-income farmers, while the solutions remain unaffordable for the poorest farmers.
As a result, more affordable models offering irrigation-as-a-service have emerged around the world. For example, Mercy Corps Ventures’ portfolio company Stable Foods is building low-cost food production systems within smallholder farmer communities in Kenya.
Stable Foods offers smallholders an ultra-low-cost, climate resilient “irrigation-as-a-service” subscription that eliminates the need for upfront capital investments. To date, Stable Foods has successfully served over 100 smallholder farmers in the Lake Victoria region, achieving a 10x increase in production since the adoption of irrigation services. However, the model has not been tested yet in drier ASAL regions where water is scarcer and the main sources of it are boreholes.
For example, Brian, one of Stable’s clients, experienced a 6.4x increase in profits after the first season farming with access to irrigation and is expected to increase his profits by 10x by the end of the year.
Farmer-led irrigation services have increased access to water to smallholder farmers, yet in some instances have led to overuse of water. Finding innovative solutions to increase access to affordable irrigation for smallholder farmers, while ensuring responsible use of water, is crucial.
Our hypotheses
Our north star is to increase farmer profits. Other KPIs we will use to measure progress include:
Borehole irrigation-as-a-service in ASAL is a viable business model for Stable Foods. Our north star is increased profits per acre. Other KPIs include:
Average revenue per acre and average profit per acre (for the company) IoT powered irrigation leads to better environmental outcomes. Our north star is a reduction in water usage. Other metrics we will use to measure include:
Through this pilot, we hope to show that appropriate irrigation coupled with adoption of regenerative agriculture practices can improve soil health and productivity of smallholder farmers — and therefore their climate resilience. From a business perspective, we hope to show that irrigation-as-a-service is a viable solution to increase access to irrigation for smallholder farmers.
If successful, this model could be scaled to other regions of Kenya and other emerging markets, where smallholder farmers currently cannot afford irrigation services.
Stay tuned for updates, evidence, and insights on our other Mercy Corps Ventures pilots, responsibly testing technology solutions to increase climate resilience of vulnerable populations in emerging markets.
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