Center for Agriculture and the Economy

Leveraging expertise from the Kansas City Fed, the Center provides timely analysis of industry developments and conducts ongoing research on the agricultural economy.

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Credit Conditions Tighten Gradually

Weakness in the crop sector weighed further on farm finances, and credit conditions tightened gradually in the third quarter.

Artificial intelligence could be useful for increasing productivity and managing labor costs in the agricultural sector

January 13, 2026
By John McCoy

Like other industries, agricultural businesses employ individuals whose labor could be enhanced with artificial intelligence (AI). The share of current employment in agriculture exposed to AI varies across states and is influenced by differing labor requirements among farm products. In regions like the Midwest and Plains, agriculture concentrated in row crop production requires relatively few employees and a greater share of labor could be enhanced with the use of AI. Conversely, the prevalence of specialty crop production in California and Florida requires more in-field farm workers that could limit the benefits of AI.

Map of the U.S. showing the percentage of employment exposed to agriculture by state, color-coded from less than 20% to more than 50%, with most Midwest and Plains states showing the highest exposure.

Note: The map follows calculations described in the December 2025 Nebraska Economist (McCoy 2025). Employment includes agriculture, forestry, fishing, and hunting industries.

Sources: Eloundou et al (2024), Census Bureau (American Community Survey), author’s calculations.

Related Research: Artificial Intelligence Offers an Opportunity for Nebraska Firms


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