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.
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.
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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Through regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on U.S. and global agriculture. Leveraging this expertise, the Center for Agriculture and the Economy serves as a resource within the Federal Reserve System by providing timely analysis of industry developments and conducting ongoing research on the agricultural economy. The Kansas City Fed is committed to understanding developments in the agricultural economy and gathering perspectives from rural America in order to include them in discussions on the national economy.
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Agriculture is central to the Kansas City Fed’s 10th District’s economy, from farm production and food manufacturing to agricultural banking and finance. Through its regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on the U.S. and global agricultural economy. At the same time, connecting with stakeholders and ag industry professionals through events, round tables and conversations is critical to the Bank’s work.