St. Louis agtech startup Benson Hill has created a new innovation program in which farmers will be early users of its technology, a move that comes as the company seeks to bolster its capabilities in the plant-based foods market.
Benson Hill this week said it launched its Food System Innovators (FSI) program, an initiative that partners with farmers in several states who will test the company's technologies in their commercial agriculture operations. The program features farmers in six states, with Benson Hill saying the initial participants “have a demonstrated track record as early innovation adopters” of agriculture technology. Benson Hill hosted participants of the program this week at its Creve Coeur headquarters.
“They were super real with us, gave us great feedback and really showed up as terrific collaborators and partners, which is exactly what we wanted. There’s a deep desire to have and expand and deepen these mutually beneficial partnerships,” said Benson Hill co-founder and CEO Matt Crisp.
Founded in 2012, Benson Hill, which describes itself as a "food tech company," has developed technology that uses data science, artificial intelligence and machine learning to help improve crop varieties with better accuracy, nutritional value and sustainability than traditional breeding methods. The company in May announced it has inked a deal to go public through a merger with Evanston, Illinois-based publicly traded special purpose acquisition company Star Peak Corp II (NYSE: STPC) in a $2 billion deal.
Crisp said Benson Hill’s FSI program provides real-time feedback that will help fine-tune the productivity and performance of its CropOS technology platform. Benson Hill said the farmers will have access to the company’s soybean varieties, with the innovation program maximizing the protein content of those seed products.
"Our farmer partners recognize the growing market demand for plant-based food solutions as an opportunity rooted in better seeds. They share our vision for a modern and more resilient food system that can deliver high-quality, high-protein, sustainable ingredients to meet this demand while supporting strong farmer ROI,” Crisp said.
The establishment of new FSI program coincides with Benson Hill's increased development of plant-based food ingredients. In March, it announced the launch of its ingredients business segment, which is targeting development of new varieties of the yellow pea, a popular ingredient in many plant-based foods, as well as production and commercialization of its proprietary soybean varieties. Benson Hill said last month it has contracted 70,000 acres in the 2021 crop year to grow its soybean varieties, up from 30,000 acres in the 2020 season. The company said the 2021 crop year will include the initial commercial plantings of its ultra-high protein soybeans, which Benson Hill contends will provide “scalable, less processed ingredient alternatives'' for the plant-based foods industry.
Crisp said the FSI program offers an outlet to partner with farmers on topics such as innovation and sustainability while also providing connections to farmers that could boost its acreage, which is key to its revenue growth.
“A big driver for us is to get acreage, which informs production. It’s not just about any acreage. We want to be working with farmers that are growing using more regenerative ag practices and who are engaged with data acquisition tools and on-farm testing that help maintain the product integrity of what it is we’re producing but also ensure the transparency and traceability through the food system,” Crisp said.
Benson Hill, which expects its merger with Star Peak Corp II to close in the third quarter, had 2020 revenue of $102 million and has said it estimates that figure to hit $127 million and $161 million in 2021 and 2022, respectively. It projects revenue of $1.5 billion in 2027.
