Farmer’s
Mind
2022
By Nelson Ferreira, senior partner
Mikael Djanian, partner
Ana Luiza Mokodsi, engagement manager
Mente do agricultor brasileiro
2022
Nelson Ferreira,
sócio sênior da McKinsey
McKinsey has gone to field for the 3rd consecutive year to understand farmers’ mindsets in a rapidly-evolving world
2020 - 2022
Brazil
800k+
data points from Brazilian farmers collected cumulatively over the past 36 months
2000+
farmers
interviewed over the past 3 years across the main agricultural regions of the country
Cerrado
Centro-Sul
MATOPIBA
Sul
5
culturas
abordadas na nossa pesquisa:
Grains
Cotton
Sugarcane
Coffee
Vegetables
5
cultures
covered on our survey assessment
200+
questions
covering the full planting and harvesting season, with special focus on the evolution of farmers digital preferences for purchase of inputs and equipment and sale of productions as well as technology and sustainability adoption
2022
9 countries
+ 1,5M
data points from farmers in 10 different geographies collected in 2022
+5600
farmers
interviewed in 2022 across 10 of the most important ag producing countries in 4 regions of the world
3
cultivos
abordados em nossa pesquisa:
Row crops
Specialty crops
Livestock
3
crops
covered on our survey assessment
Survey
highlights
2022
Brazilian farmers’ preference for digital interactions dropped considerably after the pandemic, in line with the trend observed in the US
Farmers who prefer online channels for farm purchases;
% of respondents
Source: “The Brazilian Farmer’s Mind in the Digital Era – Pulse 2021”, McKinsey, February 2021 (n=564 respondents); McKinsey Chemical & Agriculture Digital Customer Decision Journey Survey in Europe (n=100); 2020 Digital Farmer Survey; McKinsey Digital Grower Survey, September 2020
71% of surveyed farmers use digital in their purchase journey
Usage of digital channels in the purchasing journey
Q: How do you currently make your agricultural purchases (multiple responses allowed) (N=761 respondents)
1. E-commerce and/or marketplaces
Source: McKinsey’s The Brazilian Farmer’s Mind in the Digital Era, 2022 Edition – May 2022
Online channels used most often
Q: What digital platform/e-commerce marketplace/website do you use most often for online purchases? % of respondents (N=96 respondents; 107 responses)
Fonte: The Brazilian Farmer’s Mind in the Digital Era da McKinsey, Edição 2022 – maio de 2022
Trust is the main barrier while using online platforms
Main challenges to adopt online channels
Q: What are the biggest challenges to purchase agricultural products online (vs in person/ voice based)?; % of respondents (n=761)
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022
Farmers are optimistic about the next 2 years:
80% expect profits to remain stable or increase
Profit expectation over next 2 crops
Q: How do you expect your profits to change in the next 2 years?; % of respondents
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022
Barter used
Q: Do you use barter?; % of respondents (n=761)
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022
High liquidity of the past 2-3 years has led farmers to decrease bartering
35% of farmers still use cash as main source of payment, and 32% in-store credit and bank financing
Working capital funding and farm equipment purchases are the top 2 reasons for obtaining financing
92%+ of farmers see interest rates as a main challenge to obtaining financing
About 50% of farmers already adopt or are willing to adopt farming technologies for their operations
Precision farming technologies adoption and willingness to adopt
% respondents currently adopting or willing to adopt over next 2 crops
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022
Yields benefits and lower production costs are the most important reasons that would promote adoption of sustainable practices
Sustainability practices adoption, % of respondents (N = 761)
Q: What is your level of adoption on the following sustainable farming practices and energy and water efficient operations?
1. N=564
Source: The Brazilian Farmer’s Mind in the Digital Era, McKinsey, 2022 edition – May 2022
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More active offering and clearer explanation can lead farmers to adopt carbon programs
Top 3 reasons to not adopt carbon programs
Q. What are the top reasons why you have not yet or will not participate in a carbon program? Rank top 3
