Farmers Turn Cautious As Rising Costs Squeeze Investment: McKinsey
AI-summarised brief · reviewed before publication
A McKinsey Global Farmer Insights 2026 survey of 5,500 farmers in ten countries shows net spending expectations have dropped 24 percentage points since 2024, yet most still plan to raise outlays over the next 12‑18 months. Rising input costs—fertiliser, energy, labour, equipment and financing—combined with weaker commodity prices and economic uncertainty are forcing farmers to preserve cash, delay purchases and prioritize near‑term returns. Over 35 % say they will first cut nutrient spending, and European row‑crop growers are shifting toward generic crop‑protection products. Adoption of biological inputs remains strong, with 41 % using biocontrols and 48 % using biostimulants, especially in Latin America. Ag‑tech use rose to 50 % of respondents, driven by gains in India and France, while Canada saw a slight decline.
💡 Why It Matters
- · Tight margins are reshaping farm investment strategies, pushing producers toward cost‑effective inputs and accelerating the shift to biologics and region‑specific ag‑tech solutions.