Lilac Agriculture’s $2.3m seed round targets fertilizer cost reduction for pulse crops

New agtech startup’s field trial results suggest potential for lower fertilizer costs and environmental impact in key food systems

Lilac Agriculture secured $2.3 million in an oversubscribed seed round on September 22, 2026, led by Innova and backed by seven climate-focused funds including North Dakota Development Fund and Pathway Ventures. Founded in 2024 by North Dakota State University researchers and agtech veterans, the company developed PL11—a naturally selected pulse crop strain that showed 11% yield gains over no inoculant and 6% over commercial inoculants in field trials across diverse soil types. Targeting pulse growers in the Northern Plains—where 90% use inoculants—PL11 is a shelf-stable powder with a six-month shelf life, positioning it for next-season expansion into pea, lentil, and dry bean production.

The mechanism hinges on PL11’s ability to improve nitrogen fixation without synthetic fertilizers, potentially reducing input costs for smallholder farmers. If scaled, this could lower fertilizer expenses for pulse crops—a critical protein source—while cutting environmental strain from nitrogen runoff. However, yield gains are difficult to isolate from other factors like soil conditions and weather, as field trials were conducted across multiple sites.

This progress matters for food security in regions where pulses are staple crops. If PL11 achieves regulatory approval in Canada—a major market—its cost-effective inoculant could make pulse production more accessible, easing pressure on fertilizer prices. But the strain’s natural selection (not gene editing) means adoption will require time to prove broader impact beyond trial conditions. What to watch: PL11’s registration progress in Canada and whether yield benefits translate to real-world farm conditions.

Source: AgFunder News