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Landmark $9.2M State Investment in Merced AgTech Alliance Accelerates Central Valley Innovation and Economic Growth

By: News Direct

 

 

 

 

 

 

Largest State-Funded AgTech Project to Create Jobs in Rural California

 

 

Merced, Calif. — September 2, 2025 — A historically underserved region is set for transformation as Merced and California’s Central Valley secure a record $9.2 million California Jobs First investment—the state’s largest agtech award to date. The Merced AgTech Alliance, led by the Community Foundation of Merced County, Merced College, UC Merced, and the Reservoir, will launch immediate, shovel-ready projects to create more than 3,000 high-quality jobs, support over 100 agtech startups, and provide 250 internships for underserved populations. The sweeping initiative aims to make the Central Valley the global capital for agtech, modernizing food systems and driving economic growth across rural California.

Stephanie Dietz, executive director of the Community Foundation of Merced County, said, “This investment is a turning point for our region. For too long, the Central Valley has been overlooked, but now we are leading the charge to create opportunities not just for today but for generations to come. The Merced AgTech Alliance will bring good jobs, support new companies, and strengthen our rural communities—proving that innovation and equity can start right here.”

The Alliance’s three flagship, interconnected projects include: 

  • Merced College AgTech Innovation Center: Launching workforce development and training for careers in smart agriculture and farm technology.

  • UC Merced AgTech Barn: Advancing next-generation research, collaborative R&D, and advanced skills training for California agriculture.

  • Reservoir Farms: Anchoring startup incubation, real-world beta testing, and on-farm profitability for agtech entrepreneurs. 

“This unprecedented state support affirms what we know: the Central Valley is essential to California’s future,” said Chris Vitelli, president of Merced College. “We thank the Governor and GO-Biz for trusting Merced College and our Alliance to deliver on our region’s vast potential. By accelerating workforce development and transformative technology advances in agriculture, we are building a more equitable and prosperous future for the people of the Valley and beyond.”

Dr. Juan Sánchez Muñoz, Chancellor of UC Merced, said: “This investment positions UC Merced as a driver of research and real-world solutions for California agriculture. We’re excited to work alongside our partners to bring advanced research, collaborative innovation and workforce development to the heart of the Central Valley. Together, we’re building a resilient, technology-driven agricultural economy that will benefit communities, growers and the state for generations to come.”

California Jobs First, the state’s historic and community-driven approach to economic growth, empowers regional collaborations designed to deliver high-impact, “shovel-ready” projects that foster innovation and ensure local resilience. According to the California Economic Development Department, this award is among the largest single-capital investments in agtech infrastructure statewide, underscoring the state’s belief in the region’s potential to create jobs in agriculture, artificial intelligence and advanced technology. 

This investment comes at a critical time for the region, where unemployment is nearly double the state average. By creating thousands of new rural jobs, attracting and training top talent, and enabling entrepreneurs and new technology, the initiative aims to modernize food systems, strengthen economic resilience and boost on-farm profitability throughout the Central Valley—a region known as California’s permanent crop hub.

“Our state’s confidence in the Merced AgTech Alliance is a win for every grower, entrepreneur and worker who believes in the future of our region,” said Danny Bernstein, CEO of the Reservoir. “With this historic investment and deep public-private partnerships, we’re ready to make Merced the heart of global agtech innovation—much like Silicon Valley has done for technology. Governor Newsom and our partners are betting on the Central Valley as the next epicenter of breakthrough ideas, high-growth startups, and transformative economic impact.” 

Supported by a public-private partnership that includes more than 40 local and regional companies, including John Deere, Blue Diamond Almonds, Gallo, Western Growers and Merced County Farm Bureau among others, the Merced AgTech Alliance unites education, industry, research, and the community to modernize California’s food systems and scale new technologies for inclusive growth in agriculture. This ensures Merced and the Central Valley continue playing a leading role in sustaining California’s economic standing as the fourth-largest economy in the world.

About Merced AgTech Alliance: 

Merced AgTech Alliance is a groundbreaking public-private partnership dedicated to transforming California’s Central Valley into the global capital for agricultural technology. Created by the Community Foundation of Merced County, Merced College, UC Merced and the Reservoir, the Alliance accelerates innovation in food systems, workforce development, and rural economic growth to modernize and scale California agriculture for a sustainable future.

# # # 

Photo Caption: (from left to right)

  • Dr. Joshua Viers, Associate Vice Chancellor for Interdisciplinary Research and Strategic Initiative, UC Merced.

  • Cody Jacobsen, Dean of Agriculture and Industrial Technology, Merced College

  • Dr. Leigh Bernacchi, Executive Director Valley Institute for Sustainability, Technology & Agriculture (VISTA F3), UC Merced

  • Danny Bernstein, The Reservoir CEO

  • Stephanie Dietz, Executive Director, Community Foundation Merced County

  • Dr. Chris Vitelli, Superintendent/ President Merced College

 

Media Contacts: 

 

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