Farmer
Insights
2022
By Nelson Ferreira, Senior Partner
David Fiocco, Partner
Vasanth Ganesan, Partner
Maria Garcia de la Serrana Lozano, Associate Partner
Ana Luiza Mokodsi, Engagement Manager
Otto Gryschek, Director of Strategy and Operations
Global Farmer Insights
2022
By Nelson Ferreira, Senior Partner
David Fiocco, Partner
Vasanth Ganesan, Partner
Maria Garcia de la Serrana Lozano, Associate Partner
Ana Luiza Mokodsi, Engagement Manager
Otto Gryschek, Director of Strategy and Operations
McKinsey has surveyed 5,500+ farmers across the globe to better understand their mindsets and behaviors towards key topics shaping the future of agriculture
Key stats
Global Coverage
7
Geographies
~5,500
Farmers
1.5M+
Datapoints from global farmers
Cerrado
Centro-Sul
MATOPIBA
Sul
Geographies covered and farmers surveyed
5 themes shaping farming globally
Farmers see high crop and input prices as the main tailwinds & headwinds respectively
Top 3 risks and opportunities to profits over the next 2 years
Q: What do you believe are the top 3 opportunities and risks to your profits over the next 2 years?; % of respondents (n=5,474)
Source: McKinsey’s Global Farmer Insights, May/2022
Farmers see high crop and input prices as main tailwinds & headwinds globally
Actions to capture profit opportunity
Q: What actions do you anticipate taking to profit the most from those opportunities?;
% of respondents (n=5,474)
Source: McKinsey’s Global Farmer Insights, May/2022
Farmers anticipate using new products focused on yield productivity and crop protection to capture the high crop price opportunity
~50% of farmers already purchase at least one product digitally, South America leading the trend
Current usage of digital channels for agricultural purchases
% of farmers who use digital for the purchase of at least 1 product
Q: How do you currently make your agricultural purchases? % of farmers who use digital for the purchase of at least 1 product; (n=5,474)
Equipment and technology are expected to be the main products to be purchased through online channels in the next 2 years
Top products expected to be purchased online:
Equipment and technology are the main products expected to be purchased through online channels in the next 2 years
50% of farmers already blend digital with in-person/voice based interactions in their purchasing journey
Equipment and technology are expected to be the main products to be purchased through online channels in the next 2 years
Preference for digital interactions
% of respondents who prefer digital interactions to in-person/voice interactions
Q: In an ideal world, how would you interact with companies for each type of activity listed below? (n=5,115)
Cash is the main payment method for agricultural purchases and digital payment is emerging as an important trend for farmers
Willingness to try digital payments
Q: What types of financial services would you like to try, given your needs?, Responses for Digital Payments; % of respondents; (n=5,474)
Western countries are leading ag tech adoption, with farm management software being the top technology
Farming technologies adoption and willingness to adopt
% respondents currently adopting or willing to adopt over the next 2 years
Q: What is your level of adoption regarding the following trends?; % respondents currently adopting or willing to adopt over next 2 years (n=5,474)
Brazilian farmers are leading biologicals adoption, driven by specific pests/disease difficulty to control with traditional chemicals CP (e.g. nematodes)
20%+ of global farmers are adopting / willing to adopt biologicals; Brazil is leading the way, followed by European countries
Sustainability practices adoption and willingness to adopt
% respondents currently adopting or willing to adopt over the next 2 years
Q: What is your level of adoption regarding the following sustainable farming practices?; % respondents currently adopting or willing to adopt over the next 2 years (n=5,474)
Carbon program adherence
Q: Have you participated or plan to participate in carbon programs?; % of respondents (n=5,221)
Top 3 challenges to participating in carbon programs
Q: What are the top reasons why you have not yet or will not participate in a carbon program? Rank top 3; % of respondents (n=2,014)
6
considerations for farmer-facing organizations
Consider omni-channel solutions
to engage more and earlier with farmers, enriching personalized offline and online experiences
Become the “innovator” and partner of choice
when farmers are looking to try new products and technologies to drive yield and reduce costs
Offer timely and personalized products and services to farmers
using in-season analyses to target the right customers at the right time and adapt their engagement model
Support farmers during these uncertain times
by helping them capture opportunities (e.g., offer products/services to capitalize on crop prices & yield)
Help farmers monetize the adoption of sustainable practices,
orchestrating the agri value system and finding ways to support implementation and expand penetration and adoption of new practices
Make sustainability programs accessible and simple
Rigor and traceability are key for linking actions to environmental impact and end consumers
Related links
Authors
Nelson Ferreira
Senior Partner
São Paulo
McKinsey & Company
David Fiocco
Partner
Minneapolis
McKinsey & Company
Vasanth Ganesan
Partner
New York
McKinsey & Company
Maria Garcia de la Serrana Lozano
Associate Partner
San Francisco
McKinsey & Company
Ana Luiza Mokodsi
Engagement Manager
São Paulo
McKinsey & Company
Otto Gryschek
Director of Strategy and Operations
Chicago
McKinsey & Company
