Farmer centricity in a time of change: 5 key lessons for agribusiness leaders

U.S. agriculture again faces a pivotal moment that will reshape how the industry contributes to the global food supply chain. By midcentury, farmers will need to boost food production by 60% in a world where the population is projected to approach 10 billion people. They also must adapt their practices to account for shrinking farmland, climate change, consumer demand for traceability and economic and regulatory pressures. More challenges, more problems. And more opportunities for the businesses that support farmers with essential equipment, supplies and innovative technology to fuel productivity, sustainability and resilience.

At the center of this change are farmers, who are charged with transforming their operations to be less resource intensive while also increasing yields. This is becoming more difficult in a market that has seen agricultural input costs rise by 28% in recent years, while prices for many commodities are expected to remain flat or see modest declines. Farmers are being bombarded with countless new products and services from traditional and nontraditional players with value propositions to increase productivity, enhance sustainability or add sources of income—or all three. Despite this attention from the industry, many farmers are unsure of where to turn for support. Many are looking for a partner to help cut through the noise and offer practical advice on how to navigate the change.

Cutting through the noise to reach farmers

Customer centricity is more important than ever in this period of rapid change and increasing competition for farmer mindshare. Tomorrow’s agriculture leaders must find ways to build stronger connections with farmers to help in the transition to a digital future. For individual companies, success depends on cutting through the noise to communicate a compelling and differentiated value proposition and brand identity. Other industries have undergone similar transformations driven by technological advancements and shifting buyer needs, offering some insights on the path forward.

• Integrated solutions that create value for farmers. Leaders in virtually every industry are integrating digital solutions into traditional products and services. IKEA, Sherwin-Williams and Herman Miller all have developed or integrated with digital tools to enable consumers and businesses to design their home and office spaces. HP’s automatic ink service ships customers new ink cartridges only when needed. Geico’s industry-leading mobile app now enables customers to execute most activities digitally, improving both the customer experience and cost to serve.
  
  While the agricultural industry has started to make headway in integrating digital solutions, there’s a huge opportunity to create value for farmers by generating descriptive, predictive and prescriptive insights. Helping farmers adopt new technology, overcome data collection challenges and generate operational insights will be critical. In most cases, no one company can do it alone. Partnerships or industrywide standards are needed to bring a holistic solution to the farm.
• Sophisticated go-to-market models for evolving farmer needs. In the 1980s, Microsoft sold predominantly through retail channels and launched its first sales team to serve business customers. It later started selling direct, began specializing its sales teams for large, midsize and small business customers and launched a channel partner program in 2001. Today, Microsoft has one of the most complex go-to-market models in the world, including 30,000 sellers and hundreds of different sales roles increasingly specialized around specific customer segments and technologies. It manages a large partner network that supports different customer segments and use cases. It has built a sophisticated digital customer engagement engine that helps attract customers to new Microsoft products. This proliferation of sales channels and roles has allowed Microsoft to effectively serve a diverse customer base while managing the complexity of its expanding product portfolio.
  
  As farmers’ needs evolve alongside their interaction preferences, agricultural companies must also innovate their go-to-market strategies to be more customer centric. This evolution may involve strengthening strategic or key account management and employing more technical sellers and agronomists working directly with farmers. The agricultural industry has lagged in digital customer engagement, so virtually every company will need to accelerate digital-first models to augment seller efforts and serve new customer segments effectively. Team selling will become increasingly vital to facilitate complex solutions and navigate multifaceted purchasing decisions with multiple stakeholders. Additionally, agricultural companies can design hyper-localized go-to-market models tailored to local farmer needs and distribution networks.
• New routes to market for better brand control. As consumer preferences have evolved, many leading consumer brands have looked to expand their routes to market beyond traditional retail channels. Apple and Nike have established large retail networks that shift much of their revenue toward direct models operating alongside existing channels. Companies such as Dyson and Arcteryx operate limited flagship stores alongside their own e-commerce platforms. The goal is to elevate the brand and benefit traditional retail partners.
  
  While many leading agricultural input suppliers could benefit from direct distribution models, building these strategies can take years or even decades. Not all farmers will have the need or desire to buy directly anytime soon. Companies should therefore prioritize customer segments where they can create superior experiences. Targeting large complex customers or identifying genuine partnership opportunities can yield significant benefits. Initiating progress now will help build necessary capabilities that can be scaled in the future and provide a defense against emerging direct-to-farmer market entrants.
• Investing in customer success through tailored programs. The financial services industry has long realized the importance of investing in customer success to enhance client satisfaction and retention. Wealth management firms developed numerous programs to support clients at various stages of their financial journeys—from robo-advisor services for new investors to personalized teams of experts for high-net-worth individuals. As clients’ assets grow over time, so too does the sophistication of services.
  
  In agriculture, a significant opportunity exists to rigorously design value-added services that bolster farmer success. Agronomic support programs represent an obvious avenue where structured initiatives can be tailored to specific farmer needs or jobs to be done. Although cost-to-serve challenges often limit agronomic support deployment beyond top-tier farmers, these programs can be scaled using tele-advisors and digital agronomic platforms, significantly enhancing reach. For high-value customers, integrating advanced services such as remote sensing or field services can further elevate support offerings.
  
  Flexibility remains crucial throughout this process. Companies should deploy programs only for customers who recognize their value and are likely to reciprocate with brand loyalty.
• Enhancing farmer loyalty through innovative programs. Modern loyalty programs began with American Airlines’ AAdvantage program in the early 1980s, an innovative points-based system that inspired countless companies across various industries. Initially focused on core offerings such as free flights or hotel stays, loyalty rewards have since diversified significantly into personalized experiences that enhance customer satisfaction.
  
  In agriculture today, loyalty programs exist but often lack the sophisticated features seen in other sectors that drive differentiation and value creation. Transitioning toward a digital currency presents an important opportunity for agricultural companies. Such systems offer flexibility in rewarding behaviors beyond mere product purchases and expand available rewards.
  
  Additionally, implementing tiered loyalty programs can amplify motivational impact while introducing new rewards that further enhance customer experiences. Forming partnerships within the industry can also help scale these initiatives by broadening earning opportunities for farmers. The ancillary benefit of enhanced customer data collection enables personalized experiences tailored to individual farmer needs. Innovating loyalty programs holds tremendous potential for improving farmer experiences while fostering greater loyalty, ultimately generating substantial returns on investment.

Driving agricultural innovation through farmer-centric strategies and technology

Accelerating change within the agriculture sector and making tangible gains in farmer engagement begins with a deep understanding of farmer needs. Continuously assessing evolving farmer requirements will define success metrics and ensure investments target critical moments in the agricultural process.

Equally important is establishing a strong digital foundation. This involves creating a robust data infrastructure alongside technology enablement, which will underpin successful implementations across all models. Such a foundation allows for better decision-making, improved efficiency and enhanced communication between agricultural ecosystem stakeholders.

Cultivating a culture of agility is another crucial element. By fostering an environment conducive to rapid innovation, organizations can swiftly develop new models and test their viability before scaling them. This approach allows for flexibility in responding to dynamic market conditions and farmer needs, ensuring agricultural practices remain relevant and effective.

Lastly, appointing a chief customer officer can significantly affect the success of transformation efforts. This leadership role can drive alignment across organizational silos and ensure strong execution across all aspects of the transformation process. By focusing on customer experience, agricultural organizations can better meet the needs of farmers and other stakeholders, ultimately leading to more successful and sustainable agricultural practices.

Sowing the seeds for future success starts now

The opportunity for agricultural input providers is significant. Research consistently indicates that companies excelling in customer experience enjoy competitive advantages, enhanced growth rates and increased market share. However, continual renewal remains essential amid periods of change. Innovation serves as one of the most critical success factors moving forward into this evolving landscape, where capturing opportunities will be a journey requiring proactive leadership today for tomorrow’s agricultural leaders.