The agtech community often cites AI and digital tools as ways to help farmers cut costs, particularly around labor and inputs. But farmers surveyed by Purdue still express significant skepticism when it comes to implementing and using such tools, according to the most recent Purdue University/CME Group Ag Economy Barometer.
The Ag Economy Barometer calculates data from US agricultural producers that participate in a survey each month.
More than half (52%) of the 400 farmers surveyed said AI and data-driven tools provide “no meaningful benefit” to their operation currently.
Where farmers do see benefits, they aren’t necessarily in line with agtech’s frequent narrative around labor savings. Just 14% thought AI and/or data-driven tools would reduce labor needs and costs on the farm.
A slightly larger number (22.8%) believe these tools will increase production, while AI and digitization are seen as not having much benefit at all when it comes to reducing risk and uncertainty.
Michael Langemeier, director at the CCA and principle investigator for the Barometer, suggested in a recent video that this sentiment will likely change over time.
“I think there will be meaningful benefits, but at least at this point, the majority of respondents really haven’t figured out how the AI or data-driven tools [are] going to help their operation.”
He noted this is the first time the Barometer has asked questions around AI and digitization. In future, he said, “there will be a higher percent that believes these tools are going to benefit their operation.”
Whether farmers can actually follow recommendations made by AI and digital tools was another question, and one inherently connected to external forces, or as Langemeier puts it, “facts on the ground.” An AI-enabled tools could recommend planting corn on a certain day, but weather or broken equipment could make it impossible to follow that exact recommendation, for example.
“There’s going to be a learning tool curve with these data-driven tools, and it may be difficult to follow the prescription precisely,” he noted.
Elsewhere in the Barometer, 42% of farmers cited high input costs the biggest constraint to improving their farm’s financial health. Low output prices ranked second at 17%, followed by weather risk at 14%, policy uncertainty at 11%, labor and equipment concerns at 9%, and debt or financial pressure at 8%.
According to Langemeier, “While high input costs remain the primary constraint on farm financial performance, producers are continuing to make decisions in a broader environment shaped by technology adoption, trade expectations and long-term land value outlook.”
