90% of farmers to sustain or boost spending on bio-based crop protection, McKinsey Survey Finds

By Agroempresario.com

Concerns over input prices and extreme weather events are pushing farmers worldwide to adopt more sustainable practices, as revealed in McKinsey's Global Farmer Insights 2024 report. The survey indicates a growing interest in improving productivity through agricultural technology, biological inputs, and sustainable practices like crop rotation and no-till farming.

While the drive for efficiency is not new, the reasons behind it have evolved. In the 2022 survey, input prices and extreme weather were the main motivators, but recent data shows a significant shift, especially in Europe and Latin America, where extreme weather now outweighs input costs as the primary concern.

With these pressures affecting yield and production efficiency, farmers are exploring innovative ag technologies for potential revenue growth. McKinsey surveyed 4,400 farmers across Europe, India, Latin America, and North America, highlighting ag biologicals and carbon farming as two extremes in agtech adoption.

Currently, 31% of farmers use bionutrients, including biofertilizers and biostimulants, primarily to enhance yield and soil health. Additionally, 20% employ biocontrols, utilizing microorganisms and biochemicals for pest and weed management. Brazil leads in the adoption of these products, with 64% of farmers using bionutrients and 61% using biocontrols, thanks to strong government support and a favorable regulatory framework.

Globally, about 90% of farmers surveyed plan to maintain or increase their investment in bio-based products, with 63% stating they will do so regardless of fluctuations in crop protection and fertilizer prices, indicating a resilient market.

However, farmers are not replacing chemical crop protection products; instead, they are supplementing existing protocols with biologicals to enhance yield. The report notes that interviews with farmers reveal a preference for integrated approaches that combine traditional and biological methods.

Conversely, carbon program adoption remains low, with only 12% of farmers participating, although this is up from 5% in 2022. While 54% of farmers are aware of carbon programs, many are not engaging due to a lack of clear incentives and awareness. The low return on investment (ROI) is frequently cited as a barrier, with farmers expecting economic incentives of approximately $35 per acre, a figure often unmet by the costs associated with carbon farming.

A lack of knowledge about carbon programs is particularly evident in regions like India and Mexico, where 90% and 60% of farmers, respectively, had never heard of them. McKinsey recommends emphasizing ROI-focused solutions, including carbon farming, to address this gap.

According to the report, there remains a significant opportunity for input providers, digital solution vendors, and advisory services to better communicate the ROI of their products and solutions, thus facilitating greater adoption among farmers.