2025 global agribusiness trends

Agribusiness encompasses a range of activities associated with the production, processing and distribution of agricultural products, which are crucial for feeding the growing global population and supporting local economies. Understanding the evolving landscape of agribusiness is a key component as you seek to provide specialized protection to farmers, ranchers and agribusiness operators as they navigate new risks.

Challenges facing agribusiness

The agribusiness sector faces a multitude of challenges that could impact its performance. These challenges include increasing weather risk, volatile prices for agricultural products and high input costs.

Weather risk and agriculture

Growing weather risk is perhaps the greatest challenge confronting agribusiness. Recent data shows the number of billion-dollar weather disasters has increased dramatically, rising from an average of 8.5 events per year from 1980 – 2023 to an average of 20.4 per year from 2019 – 2023.¹ As extreme weather becomes more frequent, farms must adopt adaptive measures to sustain crop yields and livestock health.

Severe weather events also pose significant risks to property including on-farm residences, equipment, and outbuildings. The devastation from storms, high winds and flooding can lead to costly repairs and significant operational disruptions.

Global prices of agricultural products

According to the Food and Agriculture Organization (FAO), the Food Inflation Price Index (FFPI) decreased 3.1% from a year ago. Compared to its highest value in March 2022, it’s down 24.7%, as the global economy slowly recovers from lingering inflation brought on by the pandemic.²

Combined with still relatively high input costs like seeds, fertilizers and fuel, there’s pressure on net income. This can impact the ability to invest in new equipment or technology and ultimately earn a profit.

Agribusiness industry trends

Considering these challenges, several trends are emerging that will shape the agribusiness landscape. There’s a notable emphasis on technological advancements and farming practices that are transforming how agribusiness operates.

The rise of agriculture technology (agtech)

The integration of technology in agriculture is set to revolutionize operations. With advancements in agtech, operators are expected to increasingly leverage tools like drones, robotics, AI and IoT devices to maximize efficiency and profitability.³ Research by McKinsey & Company shows openness to such technology, with 81% of large farms and 76% of medium farms using or planning to use one or more agtech solution(s) in the near term.⁴

Nationwide offers customers access to preferred pricing on a range of agtech solutions designed to mitigate risk and enhance operations. Solutions include telematics, thermal imaging, fire prevention and electrical monitoring devices to help reduce losses and boost productivity.

Revolutionized farming methods

Innovative farming methods, such as vertical farming and regenerative agriculture, hold significant promise for maximizing output while minimizing impact on the environment. These practices not only enhance food production efficiency but also align with consumer interest in the impact of their food, driven by younger generations.⁵

While novel approaches can increase agricultural productivity, they can also introduce new risks. For example, the controlled environments of vertical farms can be more susceptible to pathogens like Listeria. In this case, robust biosecurity protocols and continuous monitoring are essential to ensure safe food production.

Sustainable agriculture

A survey conducted by Statista indicated that more than 40% of U.S. consumers are willing to pay a premium for grocery items that are sustainably sourced.⁶ As demand grows, more farmers are leaning into practices like conservation tillage and variable-rate fertilizer application.⁷

It’s worth noting that sustainability has become a buzzword, and its meaning can vary significantly depending on the perspective. For farmers, it often embodies the concept of land stewardship—a commitment to nurturing the land to ensure its long-term health and productivity. This philosophy has led some farmers to embrace these practices well before they started trending.

The future of agribusiness

In 2025, the agribusiness sector is poised for transformation driven by innovation, technological advancements and sustainable practices. As the industry navigates challenges like growing weather risk and volatile prices, it’s vital that you help equip your customers to handle these evolving challenges with the right protection. By staying informed, encouraging strategic investment in risk prevention and keeping an open line of communication, you can play a key role in protecting the future of agriculture.