A G R I C U LT U R E
The Dawn of the Digital Farmer JOSH KATZ Partner, McKinsey & Company MADISON PEARSALL Associate Partner, McKinsey & Company FIRST AND FOREMOST, COVID-19
is a global humanitarian challenge, with thousands of professionals across industries heroically battling the virus, putting their own lives at risk to protect and serve the public. The agriculture industry is no different as many fight food insecurity. Traditionally, the agriculture industry has been somewhat safeguarded in times of crisis. To start, demand is durable and historically stable through economic cycles relative to other industries. When it comes to ensuring ongoing operations, food and agriculture is categorized as a critical infrastructure industry by the U.S. Department of Homeland Security, and the industry is relatively geared for uncertainty given its never-ending susceptibility to broad forces like weather and disease. However, COVID-19 brings new uncertainties, notably the health risk to our workforce, along with global trade challenges and a strained supply chain. Beyond our borders, the challenges are already more concerning and
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severe, given the economic impact on at-risk populations, existing ecological challenges such as locusts, and potentially greater risks in developing world supply chains. We cannot claim to know what the “next normal� will bring for the industry. China and others have taught us to not underestimate the magnitude of impact, but to respond with an abundance of caution, dedicated crisis response measures, and a broader demonstration of purpose. One area where we could see a fundamental shift is in the acceleration of digital adoption across the agriculture value chain. Digital solutions can support productivity and strengthen supply chains in these times of uncertainty. New channels are proving critical to ensure vital delivery. Moreover, with profits strained, any on-farm solution that enhances productivity and savings for producers will be particularly attractive. With farmers increasingly willing to engage with new tools and channels, this could mean the full awakening of the digital farmer.