High Cost Pressure Drives Farmers Towards Artificial Intelligence

September 10, 2026 · Bloomberg HT

According to a McKinsey study, 17% of global producers are turning to generative AI and biological inputs to counter high input costs and climate risks in their operations.

AI Support in Agricultural Production

According to the Global Farmer Insights 2026 report prepared by McKinsey & Co., 17% of farmers worldwide are benefiting from generative artificial intelligence in their agricultural activities. The research, conducted between April and June with the participation of 5,500 farmers from 10 countries, showed that producers are turning to technology in their planning processes. Producers in the Americas, in particular, are rapidly adopting AI for daily agricultural management decisions. In contrast, the adoption rates of robotic systems, electric agricultural machinery, and sustainability software in the fields remain quite limited.

Rising Costs and Fertilizer Cuts

The ongoing global cost pressure plays a decisive role in the increasing interest in artificial intelligence in agricultural production. Labor, equipment, land, financing, and fertilizer expenses have remained volatile and high since the peak profitability period of 2021-2022. The McKinsey study revealed that farmers' spending trend for this year has declined by 24 points. David Fiocco, a Senior Partner at McKinsey, stated that uncertainty in weather conditions and labor shortages increase risks, while more than a third of producers report that they will make their first savings from fertilizer expenditures.

Demand for Biological Inputs is Increasing

The cost-oriented management approach is bringing about new trends in agricultural input preferences. According to the prominent findings of the report, biological agricultural inputs are among the areas that producers show the most interest in. More than half of farmers, especially those engaged in specialty crop cultivation, use at least one biological product to support plant growth and protect against pests. Global producers are continuing their operations by blending biological solutions and AI-based management tools to combat high input costs while maintaining productivity.

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