Key Takeaways:
- BCG’s latest report highlights that US farm owners remain cautious about adopting new agricultural technologies, citing economic uncertainty and previous negative experiences.
- A survey conducted by BCG and Ag Access of 1,000 growers shows most prefer sticking with familiar solutions rather than exploring new technologies in 2024.
- The report finds that emotional factors, such as saving time and soil stewardship, play a critical role in purchasing decisions alongside profitability and reliability.
- BCG recommends that agribusinesses can increase adoption by segmenting growers based on values and motivations.
- The report outlines seven distinct grower profiles, each representing unique priorities and barriers to adopting new technology.
Why Are US Growers Wary of New Agricultural Technologies?
US farm managers often view new technologies with skepticism, largely because past solutions have not always met expectations. In an industry marked by thin profit margins and limited annual income cycles, financial risk becomes a central factor in decision-making.
With rising interest rates and fluctuating commodity prices, many growers prefer sticking to proven technologies rather than experimenting with newer, untested solutions. BCG’s research underscores this trend, reflecting widespread hesitancy to adopt emerging AgTech.
What Influences Growers’ Decisions on AgTech Purchases?
To gain deeper insights, a survey conducted with Ag Access engaged 1,000 farm operators managing over 250 acres, primarily cultivating corn, soybeans, wheat, or cotton. While awareness of agricultural technologies is widespread, adoption rates remain low.
Most growers indicated plans to repurchase existing technologies in 2024, with precision application equipment standing out as the most likely new investment.
How Do Functional and Emotional Needs Shape Technology Adoption?
Using the Demand Centric Growth (DCG) framework, the survey identified the top three functional needs influencing technology adoption:
- Boosting revenue
- Ensuring reliability
- Reducing operating costs
However, emotional factors also significantly impact purchasing choices. The most frequently cited emotional needs were:
- Minimizing time spent on repetitive tasks
- Maintaining soil health
- Feeling in control of operations
Technologies that cater to both functional and emotional needs generally achieve broader market acceptance, according to BCG’s findings.
How Can Agribusinesses Address the Diverse Needs of Growers?
The research identified seven distinct grower segments, each displaying unique preferences and decision-making criteria. Key segments include:
- Next-Generation Green: Focused on sustainability, return on investment, and environmentally friendly practices. These growers are typically under 65, plan to pass their farms to the next generation, and actively seek innovation.
- Legacy and Trust: This larger segment emphasizes established supplier relationships, product reliability, and operational efficiency. They are generally more conservative in adopting new technologies and rely heavily on recommendations from peers and family.
How Can Agribusinesses Use Segmentation to Drive Sales?
BCG recommends that understanding a grower’s segment allows agribusinesses to personalize marketing and tailor product offerings. Factors such as age, succession plans, and sustainable farming interests help pinpoint customer needs and motivations.
By addressing the specific functional and emotional needs of each segment, BCG suggests agribusinesses can increase trust, improve product-market fit, and drive stronger adoption rates.
Read the entire report here.
