US Farmers Take Cautious Approach to AgTech Adoption in 2024, Report Finds

6

• Many farmers prioritize reliability and known outcomes over new innovations—surveyed U.S. growers say they’re more likely to repurchase familiar technologies than invest in untested ones.
• Economic pressures such as tight margins, high interest rates, and volatile input-costs make large upfront investments in tech risky—more than half of farmers say they need clear ROI before adopting new solutions.
• The perceived complexity of new technologies (both in implementation and data-skills required) is a barrier—many farmers see tech that demands new infrastructure or training as less attractive.
• There’s a mismatch between the functional/emotional needs of farmers and how tech is marketed—farmers want solutions that save time, reduce risk, and feel controllable; if a tech doesn’t speak to those needs, adoption lags.

A new report by Boston Consulting Group (BCG) and Ag Access has revealed that many American farmers are taking a measured approach towards adopting new agricultural technologies in 2024. 

The study, which surveyed 1,000 growers managing at least 250 acres of corn, soybeans, wheat or cotton, found that most prefer to rely on tried-and-tested solutions rather than experiment with new innovations.

Economic uncertainty and disappointing past experiences appear to be the main reasons for this caution. With slim profit margins and the unpredictable nature of agriculture, financial risk remains a dominant concern. 

Rising interest rates and volatile commodity prices have only reinforced growers’ preference for technologies they already know and trust. While awareness of emerging AgTech solutions is widespread, actual adoption remains limited. 

Most respondents plan to reinvest in existing systems, with precision application equipment cited as the most likely new purchase this year. 

According to the report, farmers’ decision-making is shaped by both functional and emotional factors — a dual dynamic that plays a crucial role in the success of new technologies.

Using its Demand Centric Growth (DCG) framework, BCG identified three primary functional drivers for technology adoption: increasing revenue, ensuring reliability, and lowering operating costs. 

(Read Also: Lemken Smart Implements Set to Transform Autonomous Farming)

Yet emotional considerations also hold sway. Many farmers expressed a desire to save time on repetitive tasks, maintain soil health, and feel more in control of their operations. Technologies that address both sides of this equation tend to gain greater acceptance.

The research also segmented US farmers into seven distinct groups, each with its own values and motivations. These range from the forward-looking “Next-Generation Green” growers, who prioritise sustainability and innovation, to the “Legacy and Trust” group, who place greater emphasis on reliability and long-standing supplier relationships.

BCG suggests that agribusinesses can encourage adoption by tailoring their approach to these differing segments customising their marketing, messaging, and product design to align with growers’ specific motivations. 

Through recognising that decision-making in agriculture is as much about emotion and trust as it is about economics, the report argues, technology providers can build stronger relationships and foster more sustainable, long-term adoption.