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Farmers Embrace Generative AI as Costs Squeeze Margins, McKinsey Report Finds
Published : Sep 19, 2026, 2:01 pm IST
Updated : Sep 19, 2026, 2:01 pm IST
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Farmers Embrace Generative AI as Costs Squeeze Margins, McKinsey Report Finds
Farmers Embrace Generative AI as Costs Squeeze Margins, McKinsey Report Finds

About 17% of farmers worldwide now use generative AI, making it one of the fastest-growing technologies in agriculture.

Artificial intelligence is spreading quickly across farms as growers look for high-tech help with planning and managing their operations after several years of tighter spending, according to consulting firm McKinsey & Co., as reported by Bloomberg.

McKinsey's Global Farmer Insights 2026 report, published Tuesday, found that about 17% of farmers worldwide now use generative AI for farm-related tasks, making it one of the fastest-growing technologies in agriculture.

The rise follows a multiyear farm slump that forced many growers to cut back on spending. David Fiocco, a senior partner at McKinsey, said costs for labor, land, equipment, financing and fertilizer have stayed high and volatile since farm profitability peaked in 2021-22. Combined with policy uncertainty, unpredictable weather and labor shortages, these pressures are making decisions on the farm harder and riskier.

Fiocco said farmers, especially in the Americas, are quickly turning to AI to support their daily decisions, and that the technology has dramatically changed how quickly growers can get agronomic advice.

AgroLatam, which also reviewed the findings, pointed to a clear gap between trying AI and paying for it. Of the 17% of farmers using generative AI, only 4% pay for AI tools, while 12% rely on free versions (the totals differ slightly because of rounding).

The pattern suggests farmers are more willing to try technologies that need no major upfront investment in hardware.

Rapid adoption does not mean farmers are ready to replace human expertise. Only 6% named generative AI chatbots as a source of advice, compared with 56% who turn to technical agronomists and 56% who rely on sales representatives.

The influence of sales representatives has dropped sharply, from 67% in 2024 to 56% in 2026, while the share of farmers relying on technical agronomists edged up from 54% to 56%.

This points to a hybrid model of decision-making. Digital tools increasingly help producers find and compare information, while trusted technical experts remain central when growers must validate a decision before committing money.

A separate survey shows American farmers are finding similar uses for the technology. Michael Langemeier of Purdue University's Center for Commercial Agriculture told Brownfield Ag News that more farmers are using AI to support business decisions. In the latest Purdue University/CME Group Ag Economy Barometer, more than 30% of respondents named strategic planning as AI's biggest benefit.

Langemeier said farmers typically do not rate themselves highly on skills such as finance and strategy, and they see AI as a way to improve in those areas. He also sees opportunities to use the technology over the long term and expects adoption to grow as producers become more familiar with what it can do.

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