Episode 16: Interview with Scott Sexton CEO of Ever.ag

July 11th, 2024: My latest Ag Uncensored Podcast with Overview

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Opening Thoughts:

This was another great talk and with whom I can call a new colleague as this was the first time Scott and I met and talked actually. His early days in the Ag industry are actually very reminiscent of mine as he grew up close to his dad’s business and that helped propel him where he’s at today. Of course his world of tech and mine where quite different, the early days of the internet in Agriculture were way different than you see today and it was a lot more complex compared to the ease of many things today.

Overall, I think anyone that works in Ag Business to whatever extent around the industry will learn some great things to take home from Scott in this interview. I hope you’ll enjoy it as much as I did!

Here is the Summary:

Scott's journey into AgTech is a testament to patience and perseverance in Agriculture. Growing up around his dad's large baking operation to spearheading innovations at EverAg, he's seen and done it all. Our conversation ranged from the gritty realities of tech adoption in Ag to the broader strokes of how the industry is (slowly) evolving. We covered several key topics, including Scott's early days in AgTech, the challenges of tech adoption, the importance of core systems, the role of trusted providers, and the future of Ag tech with AI. Let's dive into our chat and uncover some key takeaways.

Early Days in Ag Tech (02:18)

Scott's story begins in the early '90s when he graduated from Baylor University. “I really felt like [the internet] was going to dramatically change how supply chain participants interacted with one another,” he shared. Growing up, Scott's dad managed a large baking company with 50 to 60 bakeries across the country. This exposure to the food manufacturing environment laid the foundation for his future ventures.

As the internet began to emerge, Scott saw an opportunity. “It really appeared to me that the internet as a backbone of data was going to be a movement. I feel like I was maybe 30 years early to the movement,” he noted with a chuckle. This foresight led to the creation of Dairy.com, which later evolved into EverAg.

Reflecting on those early days, Scott elaborated, “It was internet-based software, then it became application service providers, and then vertical marketplaces. Now, magically, it’s cloud.” It’s a journey that many in tech can relate to—the constant rebranding of core concepts to keep up with the times. Scott’s early realization of the internet's potential in ag laid the groundwork for his future successes.

Challenges of Tech Adoption (10:35)

One of the main themes we discussed was the challenges of tech adoption in agriculture. Scott highlighted the complexities involved, saying, “Capital comes in, it came in cheap. It's expecting a return. The pace at which you can find product market fit scale... creates a very interesting challenge.”

It's no secret that ag tech faces a slower adoption curve compared to other industries. Scott emphasized the importance of understanding the true pace of adoption and the compelling events that drive it. “We've seen a lot of pitch books, and the allure is the size of the space. Translating that to ground game is, to me, one of the harder parts,” he explained.

The capital influx in the last decade brought both opportunities and challenges. Scott noted, “The food and agriculture space is very attractive—it's large and recession-proof. But the reality is the pace of adoption and willingness to invest in innovation in a low-margin, commodity-centric value chain is slow.” This slow pace often clashes with the high expectations of investors seeking quick returns.

The Importance of Core Systems (23:18)

EverAg's strategy revolves around building a comprehensive suite of solutions that unify and unlock data across the value chain. “We've built out the family of solutions across the end-to-end value chain that unifies and unlocks data, makes it frictionless, interwoven where it's needed,” Scott said. This approach has allowed EverAg to scale effectively and meet the diverse needs of the agriculture industry.

Scott’s team has expanded their capabilities from dairy to other sectors like animal protein and row crops, always focusing on creating value and simplifying processes. He mentioned, “We have a grain hauling platform called Roger, used by some of the largest grain players in the country, and feed mill operations in the swine sector.”

The strategy is simple yet complex—create an interconnected ecosystem that provides value at every point. Scott explained, “We’ve refined that playbook in dairy. Now, with our growth partner, we’re looking at what’s one step before and after dairy, like the seed to feed value chain and animal protein.” By zooming out and looking at the broader agri-food ecosystem, EverAg has made strategic acquisitions and assimilated capabilities under their banner.

The Role of Trusted Providers (39:11)

When it comes to bringing tech to the farm, Scott believes in the power of trusted providers. “We've been very focused on enterprises that envelop the farm or serve the farm,” he explained. These providers play a crucial role in bridging the gap between innovative technologies and their practical applications on the ground.

Scott highlighted that the closer you get to the farm, the more critical it is to ensure that tech is simple, quick, and impactful. “It's got to be simple, quick. It's got to make sense. It's got to have high impact, easy to use,” he said. This philosophy has guided EverAg in developing solutions that truly resonate with their users.

We also touched on the importance of meeting organizations where they are in their maturity curve. “Many of our clients are still in the early stages of digitization. It's about starting where they are and moving them forward,” Scott said. He stressed that while innovation is crucial, the real challenge lies in the ground game—deploying these technologies in a way that makes sense for the user.

Future of Ag Tech and AI (55:05)

Looking ahead, Scott is optimistic about the role of AI and machine learning in agriculture. “We're certainly ear to the ground and making investments in many of those future initiatives,” he shared. While the path to full adoption may be slow, the potential for AI to transform how data is used and managed in agriculture is immense.

Scott acknowledged the challenges but remained hopeful. “We may still be in the very early innings of just core digitization of stuff that's still on paper or still manual,” he noted. However, the progress made so far and the ongoing innovation give him confidence in the future of ag tech.

Scott commented on the need for structured data to leverage AI effectively. “It's got to be in the context of some structured data set. The Achilles' heel is often the maturity of the entity—are they mature enough for AI to be applied?” he questioned. It’s a valid point—without a solid foundation of digital data, the potential of AI remains largely untapped.

The Human Element in Ag Tech (01:10:35)

Another critical aspect we discussed was the human element in ag tech. Scott emphasized the importance of bringing in passionate leaders and managing the emotional strain that comes with the territory. “We’ve put a premium on creating an environment where domain experts feel valued and can drive forward with more resources and horsepower,” he explained.

He shared insights on the challenges of integrating new teams and technologies. “It's not about over-rotating on the playbooks but valuing the people who know the sectors and have a vision for what the tools should be,” Scott said. This approach has helped EverAg maintain a strong, cohesive team despite the complexities of mergers and acquisitions.

The Global Perspective (01:16:17)

We also touched on the global perspective and how different regions are adopting ag tech. Scott noted the rapid industrialization of agriculture in regions like Brazil, Africa, and India. “These regions went from subsistence farming to industrial farming almost overnight,” he observed. This rapid change poses both opportunities and challenges for the global ag tech landscape.

Scott expressed cautious optimism about the U.S.'s position as a global supplier. “The U.S. is well-positioned to be a supplier to the world. We monitor the global environment closely to ensure our clients are responsive to changes,” he said. However, he acknowledged the slow pace of tech adoption and the need for a more coordinated effort to keep up with global competitors.

Conclusion

Scott Sexton's journey and insights offer a valuable perspective on the evolving landscape of ag technology. From the early days of Dairy.com to the comprehensive solutions offered by Ever.Ag today, his story is a testament to the importance of patience, innovation, and understanding the unique challenges of the agriculture sector.

As we wrapped up our conversation, Scott left us with a final thought: “Real-time digital transparent supply chains are going to be foundational to leaders and successful operators in food and agriculture. It's just a fact of the matter.” And with leaders like Scott at the helm, the future of ag tech certainly looks promising.

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Closing Thoughts:

One thing that stuck to me during this interview more than anything was Scott talking about taking it slow and steady. We all know multiple groups in AgTech and beyond that have rushed in to try and change things overnight. Some sort of can do it to a point, but really Ag runs at a snails pace in the grand scheme of things especially around adoption.

That seemed to be a big thing he’s pushing at Ever.ag and one that makes a lot of sense considering how complex connecting all of these things are. That also brings up another interesting point we both brought up. We know there are alot of legacy issues with software in Ag and we are all guilty at times of thinking we need to the latest and greatest look and feel UI to compete. The reality is most users don’t care and if anything changing to something new that likely overall is better can also hurt sales a lot if you’re not careful.

More or less, if it ain’t broke don’t fix it. With how he’s letting the other groups they’ve acquired stay semi independent of the others it just goes to show that while we want the one all software in Ag, we can’t really have it either. You can slowly connect certain things together, but also need to be aware of how that effects other items down the line.

It’s a tricky thing and I think Scott and his whole team are on a decent path. They’ll be around for awhile to say the least.

Thanks again everyone for watching, listening, and reading!