The Impact of Broadband on U.S. Agriculture: An Evaluation of the USDA Broadband Loan Program

Abstract

We evaluate the impact that the USDA’s low‐cost broadband loan programs have on the U.S. agricultural sector. The broadband loan programs increase access to high‐speed Internet in recipient communities, which can raise farm sales by increasing both farm output and prices received by producers. Further, high‐speed Internet may drive down costs by providing information on cheaper inputs and better management practices, leading to an overall improvement in farm profits. Using U.S. county‐level data on farm sales and expenditures in 2000 and 2007, we employ an inverse probability weighting technique to control for endogenous selection in an econometric model that also accounts for spatial dependence. We find that the two USDA broadband loan programs have had positive causal impacts on farm sales, expenditures, and profits in a subset of rural counties—those adjacent to metropolitan counties—but not in other types of counties.

Broadband's relationship to rural housing values

“…It is also consistent with anecdotal evidence from county extension educators and those familiar with the real estate environment in the more remote regions of the country. Previous research has found that broadband contributes to a wide variety of rural quality‐of‐life factors, such as business location decisions, income growth, agricultural sector profits, and migration decisions (Kandilov et al, ; Kim & Orazem, ; Mahasuweerachai et al, ; Whitacre et al, ). In extending the property value findings to rural locations, this study continues to make the case that “broadband matters” for remote areas.…”

Online Sales: A Direct Marketing Opportunity for Rural Farms?

“…The percentage of farms with internet access increased from 57% in 2007 to 70% in 2012, and further increased to 75% in 2017 (USDA NASS, 2019; Whitacre, Mark, and Griffin, 2014). Broadband availability has increased farm sales and attracted new firms to rural areas (Kandilov et al, 2017;Kim and Orazem, 2017). However, despite improvements, high-speed internet deficiencies remain in rural areas (FCC, 2018).…”

Digital inclusion and parity: Implications for community development

“…In regards to the connectivity component of digital inclusion, research has found that a divide exists between urban and rural areas (Good, 2017;Perrin, 2017;Prieger, 2013) and within urban areas (Graham, 2002;National Digital Inclusion Alliance, 2017;Wamuyu, 2017;Wheeler & Clyburn, 2015) hampering the technology's potential benefits for community and economic development, human development, resilience, and sustainability (Atasoy, 2013;Devaraj, Sharma, Wornell, & Hicks, 2017;Hayashi & Minhas, 2018;Kandilov, Kandilov, Liu, & Renkow, 2017;Kim & Orazem, 2017;Lobo, Alam, & Whitacre, 2019;Pant & Odame, 2017;Shideler & Badasyan, 2012;Stenberg et al, 2009). In addition to broadband access disparities, inequity regarding speeds is found among different economic and demographic groups (Riddlesden & Singleton, 2014).…”