Source: McKinsey

Farmers likely to adopt sustainable farming practices linked to ROI

The ROI, however, depends on a combination of factors such as crop yield, and prices.

The adoption of sustainable farming practices is highly correlated with a farmer’s perceived return on investment, McKinsey reported. 

Among the practices with the highest perceived ROI are applying fertilizer based on soil sampling, reducing or eliminating, and implementing variable-rate fertilization. 

“Farmers expect many of the practices to have positive long-term benefits, such as a 3 to 5 percent yield rise and higher land value,” the report read. 

“However, farmers said they expect costs to remain 1 to 3 percent higher for most practices after more than five years of adoption.”

McKinsey noted that ROI depends on a combination of factors, such as crop yield, crop prices, land value, and input, labor, and equipment costs.

“Although farmers said they generally expect the use of sustainable-farming practices to raise their costs, they also expect this increase to pay dividends in higher crop yield, land value appreciation, and better crop pricing.”


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