4,400 farmers shared their expectations for 2025 with McKinsey — read the analysis of key agricultural trends

In the dynamic world of agriculture, farmers globally are poised for various changes and challenges in 2025. A comprehensive survey by McKinsey, involving over 4,400 farmers across multiple continents, provides a detailed analysis of the trends and expectations shaping the agricultural sector in the upcoming years. This analysis explores key aspects such as productivity, technology adoption, and sustainability practices, offering a forward-looking perspective on farming.

Productivity and efficiency: Navigating economic and environmental challenges

Farmers are increasingly focusing on enhancing productivity and operational efficiency amidst fluctuating input costs and unpredictable weather patterns. The primary concerns highlighted include the rising cost of inputs, such as fertilizers and crop protection chemicals, and the impact of extreme weather events, which have grown in frequency and intensity. For instance, European and Latin American farmers have elevated these weather challenges as their foremost concern, overtaking input costs that dominated previous surveys.

The pursuit of productivity is primarily driven by the integration of advanced agricultural technologies (agtech) and sustainable practices. The adoption of digital agronomy, precision agriculture hardware, and remote-sensing technologies is becoming more prevalent, particularly in regions with larger farm sizes, such as North America and Brazil.

Technology and innovation: Slow but steady adoption

Despite the clear benefits of technology in agriculture, the adoption rate remains gradual, hindered by concerns over return on investment (ROI) and the scale of operations necessary to justify high initial costs. However, there is a notable increase in the willingness to embrace digital solutions, especially among farmers in North America and Latin America. These technologies, which include yield monitoring and disease management tools, are crucial for farmers aiming to optimize their production and mitigate risks associated with climate variability.

Sustainability and environmental stewardship

Sustainability continues to be a major focus area, with farmers showing a growing interest in practices that enhance yield and add revenue streams without compromising the environment. Sustainable practices such as crop rotation, reduced tillage, and the use of biocontrols and bionutrients are on the rise. These practices are not only environmentally beneficial but also economically viable, as they can lead to lower production costs and improved soil health, which is essential for long-term agricultural productivity.

The adoption of sustainability-oriented practices varies significantly by region, with North American and European farmers focusing more on generating additional revenue streams through these practices, while farmers in India and Latin America prioritize increased yield.

Economic outlook and regional variations

The economic outlook for farmers in 2025 appears mixed, with significant regional variations. North American and European farmers are generally more pessimistic about future profits due to declining commodity prices and increased production costs. Conversely, farmers in India and Latin America are more optimistic, driven by favorable market conditions and growing export opportunities.

Future strategies for farmer support

Looking ahead, it is crucial for organizations working with farmers to tailor their strategies to meet the diverse needs of the global farming community. This involves offering products and services that help manage volatility, improve productivity, and facilitate the adoption of sustainable practices. There is also a significant opportunity to deepen relationships with channel partners, such as input distributors, who play a critical role in influencing farmers’ decision-making processes.

In conclusion, the agricultural landscape in 2025 will be shaped by a complex interplay of factors, including economic conditions, technological advancements, and environmental considerations. Farmers worldwide are expected to continue adapting to these changes, striving for greater efficiency and sustainability in their operations.