Anyone can pull up data on how big the Latin American ag market is. You probably already know it by heart—even without a deep dive. Brazil and Argentina together make up over 60% of the region’s ag GDP. Chile and Peru dominate in fruit and berry exports. Brazil alone holds more than 240 million heads of cattle. The numbers are massive, and the potential is undeniable.

What’s maybe less obvious—but equally important—is that farmers in Latin America are highly efficient, and very mindful of risk. With limited access to credit, little to no government backing, and a constant exposure to market and climate volatility, they’ve learned to adapt quickly and operate lean. So, if you’re bringing in a technology or a solution that gives them even a slight edge—they’ll listen.

But here’s the real catch. What very few people talk about are the rules of engagement—the invisible dynamics that can turn a promising market into a frustrating, slow-moving challenge. It’s like chasing the gold chest at the end of the rainbow: everyone says it’s there, you can almost see it, but no matter how fast or how far you go, you never quite reach it. That’s been the story of several agtech and input companies that, after investing millions and years trying to crack the market, eventually pulled out.

So let me share a few lessons I’ve picked up over the past 17 years working in the ag sector across Latin America. I’m not claiming to have all the answers, and this list is far from complete—in fact, some of it may already be outdated. This is a fast-moving, evolving region. But what I can give you is a glimpse of how things actually work on the ground, and how it differs (sometimes dramatically) from what you might be used to.

Who is Alejo, **Our** **Ag Navigator**

Alejo is a seasoned business leader with extensive experience in the agricultural sector, having held key roles at Monsanto and Bayer across Latam. His deep understanding of the row crops market and stakeholders in the region has been pivotal in helping startups to **understand market needs**, **improve their business approach**, and develop their teams. As an advisor and leadership coach, he **bridges traditional agriculture with the digital landscape**, fostering collaboration and **developing solutions to tackle industry challenges** and **drive sustainable growth**.

What I’ve learned (and seen)

Before we go into the checklist, I want to share a few lessons from the ground. These are things I’ve seen over the years working with farmers, advisors, and ag companies across Brazil, Argentina, Uruguay, Peru and others. Some of this may sound obvious once you’re in the field, but if you miss it, it can cost you a lot of time and traction.

Farmer size, level of tech, access to financing, and operational structure vary a lot. Not only between countries, but within the same country. In Brazil, you can find soybean farmers with 50,000+ hectares in the Cerrado region, and others managing just 50 hectares in the southern states. Very different realities. Argentine corn and soy farmers are usually very tech-savy, but over 60% of the jobs on a farm are done by contractors. In Peru, you’ll find large-scale, high-tech avocado producers, and also traditional, low-tech farmers. So, you really need to take the time to understand who your target is, how they farm, and what barriers they have.
Distribution channels are very different across countries, and they shift fast. Every 4–5 years, the model can change. Brazil saw a big consolidation wave—local dealers becoming part of national chains over the last 7 years. But now that model is being questioned. Some of the expected synergies didn’t happen, and margins got tighter. If your go-to-market depends on channel partners, make sure you know how those dynamics are playing out now.
Timing is key, but calendars are different. This is agriculture, so of course, timing matters—but the crop cycles are not the same across countries, and they can vary from one year to the next. Rotations change depending on prices, margins, tech availability. How your solution plays into this calendar and timing in farm operations is paramount. Also, your window of opportunity to test, sell, support, etc. will be very different. Farmers don´t wait for anybody.
You need to understand the full value chain. It’s not just about the farmer. There are other players—dealers, logistics providers, farm contractors, co-ops, grain handlers. And their incentives may not align with what you’re offering. Sometimes, your solution looks like a threat to their current business. And if that happens, they can slow you down—or block you entirely. You need to understand how the system works, not just how the farmer thinks.

Eight pointers about doing business in Latam ag

These aren’t abstract principles. They’re patterns I’ve seen over and over again working with ag companies, tech startups, and farmers in Latin America. If you’re thinking about entering the region, these are some of the dynamics you’ll need to get comfortable with:

1. Relationships matter as much as your solution
Doing business in Latam is deeply relational, and establishing trust is the first step. People want to know who you are before they care about what you’re selling. If you show up only for the transaction, you'll be treated as temporary, and the best opportunities will be kept at arm’s length.

2. The ag sector is mostly family-owned and professionally run
Most farms and ag businesses in Latam are family-owned, but that doesn’t mean they’re informal or old-fashioned. Many are extremely professional in how they manage risk, adopt tech, and evaluate new opportunities, and decisions still often come down to a handful of people with strong personal ties.

3. There’s appetite for technology, as long as it proves real value
Latam farmers are pragmatic. They’ll test and adopt new tools, but only if there’s a clear business case. They’ve learned to be skeptical of buzzwords. What they want is better yield, lower risk, or operational simplicity—not fancy tech.

4. Credit is expensive—and public support is limited
Unlike in the US or Europe, farmers in Latam operate with little or no government support. Access to credit is limited and costly. That makes any investment, even small ones, a serious decision. If your product needs upfront spending, you better show fast ROI or offer financing options.

5. The region is extremely diverse—don’t treat it as one market
Agriculture in Latam is not a monolith. You’ll find massive grain producers in Brazil’s Cerrado and 50-hectare family farms two states over. Business models, crop rotations, margins, and buying behavior vary wildly—even within the same country. Understanding these differences is not optional.

6. Trust takes time—and is non-transferable
You might have a great global brand, but that doesn’t automatically earn you trust in Latam. Relationships here are built slowly, over time, with presence and consistency. And trust sits with people, not companies. If your local team changes too often, don’t be surprised if doors start to close.

7. Not all decisions are made by the farmer
The farmer is central—but they’re not the only one you need to think about. Contractors, dealers, agronomists, co-ops, logistics partners—all influence what gets adopted and what doesn’t. If your solution disrupts their role or margin, you may find resistance you didn’t plan for.

8. Once you're in, you're in
Latam farmers value long-term relationships. Once you earn their trust, they’ll become loyal customers and even advocates. But getting there takes time, consistency, and a clear demonstration of value. Play the long game.

Is Latin America the right next step for your business? A few things to check before you jump in

Before you move into building a go-to-market strategy or hiring local teams, there are a few things worth checking. Not as a formality, but because this region operates under its own rules, and ignoring them will cost you time, money, and energy.

Here are five things I recommend working through before making any serious commitment:

1. Validate that the problem exists here and matters in this context
Even if you're addressing the same crop or practice, the challenges may not be the same. Different environment, different value chain, different business logic. So before anything else, take the time to validate whether the problem you solve today also exists here, and whether it's relevant.

It may be a known issue, but not a priority in the farmer’s mind. Or it might already be handled by someone else in the system—a dealer, a contractor, a co-op—and your solution could overlap or even clash with their role.

It’s not just about confirming the pain point. It’s about understanding the context around it, who’s affected, who benefits, and what dynamics you’ll be stepping into if you try to solve it.

2. Be honest about the level of effort this will require
Entering a new market like Latin America is not just about strategy slides and Zoom calls. It takes real dedication—in time, money, and leadership focus.

You’ll need to travel often. In many cases, you’ll need someone from your core team—ideally a trusted leader or even a founder—to relocate or spend extended time in the region. That’s important not only for accelerating the learning curve, but also as a message to the local ecosystem: you’re not just testing the waters, you’re here to build, invest and stay.

If you try to manage Latin America as a side project from HQ, with limited attention and rotating faces, you’ll likely miss the nuances and lose credibility fast. This is a market that rewards commitment and punishes hesitation.

3. Choose your entry point carefully
This is not a region you can approach with a blanket strategy. Each country—and even each region within a country—has its own dynamics when it comes to crops, business models, distribution, and timing.

Your first market and first user will speak loudly about how serious you are, and whether you actually bring value. It will also shape how you're perceived by local players, potential partners, and even competitors. If you get this wrong, it can be hard to recover. So don’t rush it.

Start by identifying where your solution has the best product–market fit, and which type of user will help you build early traction. That first user might not even be a client—it could be a local expert, distributor, or ag consultant who helps you learn the landscape and build the right relationships.

I’ve always liked Peter Thiel’s idea in Zero to One about building a small monopoly first: choose a narrow segment or geography where you can create real defensibility, then expand from there. That first foothold matters more than you think—it’s your foundation.

4. Don’t try to go it alone
No matter how much time you spend studying the market, talking to farmers, or flying in and out, you won’t catch up to the knowledge and instinct of someone local. There are layers of language, culture, unwritten business codes, and regional nuance that take years to fully understand. And then there’s trust, which takes even longer to build.

So don’t try to do it all yourself. You’ll need local help. Whether that means hiring someone from the region or building a partnership, invest early in finding someone who knows the terrain—and who is respected in it.

This isn’t just about being efficient. It’s about credibility. The right local contact can accelerate your learning, open doors that would otherwise stay closed, and make sure you don’t step on landmines you didn’t even know were there.

5. Treat this as what it is: a new market
It sounds simple, but it’s easy to forget: Latin America is not an extension of your existing market. It has its own logic, its own players, its own pace, and its own way of doing business.

Don’t fall into the trap of looking for information that confirms your existing thesis. Watch out for confirmation bias. You’ll always find someone who says, “yes, this could work here,” especially if that’s what you want to hear. But that doesn’t mean it will scale, or that it addresses a real need in the local context.

Take your time to understand the dynamics: how the value chain works, how decisions are made, who holds influence, and what the actual pain points are for the farmers or partners you want to work with. Ask more questions than you answer. You don’t need to rush—you need to learn fast, and learn the right things.

Approach the region not as a quick win, but as a serious market that deserves its own strategy, timing, and respect. That mindset makes all the difference.