For Ag Retailers, Ag Technology Goes Slowly … For Now
November 6, 2024 For the past two years now, new and increasingly sophisticated ag technology developments have created plenty of buzz with the agricultural world. But have these translated into sales/market adoption among participants? Furthermore, what promise of adoption do these new technologies hold for the future?
In an effort to discover answers to these questions, CropLife® magazine recently surveyed its readers to learn more about what ag technologies they had purchased during 2024, planned to look at purchasing in 2025, and what the future might hold for all these products. The answers to some of these were surprising, to say the least.
This past year, ag technology purchases among CropLife readers was fairly slow in its pace. According to the survey, slightly more than half of respondents (51%) purchased one to two such technology-based products for their businesses. Sixteen percent made three to five such purchases during the year, with 8% indicating their companies bought “six or more” of these products in 2024. Still, one quarter of respondents (25%) made no such ag technology buys during the year.
For the 75% of respondents who did purchase new ag technology in 2024, the most popular product to be bought was something rather familiar to users — software. According to the survey, 62% of respondents purchased new software technology this year. The only other ag technology category to finish with a double-digit percentage among respondents was drones, being purchased by 30% in 2024. The other two popular ag technology options on the survey — artificial intelligence (AI) spraying systems and autonomous vehicles — finished with 7% and 1% of the responses, respectively.
Looking to 2025, Beyond
Going into next year, market watchers can expect some pickup in the pace of new ag technology purchases by CropLife readers. According to the survey, the majority of respondents (44%) are still planning to make only one to two new ag technology purchases in 2025. However, those companies planning to make between three and five such buys will increase to 27%. Eight percent plan to buy six or more new ag technology products next year. The remaining 21% don’t plan any such purchases.
In terms of what new ag technology products CropLife readers are planning to buy in 2025, software-based systems will remain the most popular at 46%. However, the other three segments from 2024 will all see marginal increases in their sales expectations.
For drones, 36% of survey respondents are planning to purchase these systems for next year’s growing season. AI spraying systems will be purchased by 13% of respondents. Even autonomous vehicle buys should increase, from 1% in 2024 to 5% in 2025.
What was really interesting about the survey, however, was how CropLife readers believe new ag technology adoption will look like at their companies beyond 2025. When asked what technologies they anticipated utilizing in their operations over the next few years, three categories — drones, software systems, and AI spraying systems — showed almost identical percentages. These were 30% for drones, 29% for software systems, and 28% for AI spraying systems. Autonomous vehicles lagged behind somewhat, with 13% of respondents seeing these products becoming part of their businesses over the next few growing seasons.
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