| Agricultural loads involving machinery and other processing units are generally inductive in nature. The power required by agricultural industry is broadly categorized into shaft power and process heat power, and could be used for planting, cultivating, pumping, harvesting, drying, cooking, baking, woodworking, forging and smelting etc. This results in lagging Volt-Ampere-Reactive (VARs), which must be balanced by the same number of leading VARs in order to ensure unity power factor, thus avoiding penalties on agricultural industry. Switched Capacitors and Voltage Regulators are used to cope with such a situation. Regulators results in higher line currents thus resulting in excessive losses in addition to voltage sag problems. On the other hand, static capacitors can tackle the reactive VARs, but in steps only. Thus, a real time solution is required for sensing, controlling, and injection of VARs based on the actual requirement. Such a solution is proposed in this paper along with simulation results. This would help agriculture-based industries in avoiding paneities, which would in turn lower the production cost of agricultural products. Also, sensitive equipment would not be encountering voltage fluctuations anymore.