In the video game Farmville players tend crops on a virtual farm, increasingly digital tools help run real farms. Over the last few years, the cumulative increase in key inputs like fertilizer have risen more than 70% and crop protection costs rose 30% according to a McKinsey study published earlier this year. At the same time, new technologies like drones are facilitating automated pruning, and precision spraying, allowing farmers to reduce costs on labor and crop inputs. According to McKinsey, on large US corn farms, these solutions can reduce herbicide costs by 80 percent, and generate economic payback within two years. Furthermore, while the upfront costs of automation technologies have limited adoption, technology advancements are driving those costs down whilst also increasing their effectiveness.
Source: McKinsey, May 2023