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Betting the farm on agtech?

Agriculture technology (agtech) can provide operational cost savings and boost growth that is less resource-intensive, note partner David Fiocco and coauthors. But their global survey of more than 5,500 farmers revealed that agtech adoption—for technologies including farm management software and remote sensing—varies widely depending on region, with some farmers concerned about ROI and high prices.

North America and Europe lead agtech adoption, with Asia lagging behind.

Image description:

A chart displays 5 circles, representing Asia, Europe, North America, South America, and the world. Each circle contains 100 dots, with each dot representing 1% of the circle. The 5 circles indicate the percentage share of farmers currently using, or planning to use, at least 1 agriculture technology system in the next 2 years, according to surveyed respondents. Europe and North America score highest, with approximately 62 and approximately 61%, respectively, followed by South America at approximately 50%. The global average is shown at approximately 39%, and Asia follows at approximately 9%.

Footnote 1: Asia includes China and India; Europe includes France, Germany, Netherlands, and Spain; North America includes Canada and the US; South America includes Argentina and Brazil.

Source: McKinsey Farmers’ Global Insights Survey, May 2022; McKinsey analysis

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To read the article, see “Agtech: Breaking down the farmer adoption dilemma,” February 7, 2023.