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

Author

Listed:
  • Kandilov, Amy M.G.
  • Kandilov, Ivan T.
  • Liu, Xiangping
  • Renkow, Mitch

Abstract

We evaluate the impact of USDA’s low-cost broadband loan programs 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 data from the 1997, 2002, and 2007 U.S. Census of Agriculture, we employ a panel difference-in-differences estimator, as well as a difference-in-differences propensity score matching estimator, to show that the two USDA broadband loan programs have positive impacts on farm sales, expenditure, and profits. The positive effects for crops are larger than those for livestock and animal products.

Suggested Citation

  • Kandilov, Amy M.G. & Kandilov, Ivan T. & Liu, Xiangping & Renkow, Mitch, 2011. "The Impact of Broadband on U.S. Agriculture: An Evaluation of the USDA Broadband Loan Program," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103634, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103634
    DOI: 10.22004/ag.econ.103634
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    Cited by:

    1. John Lai & Nicole O. Widmar & Courtney Bir, 2020. "Eliciting Consumer Willingness to Pay for Home Internet Service: Closing the Digital Divide in the State of Indiana," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 263-282, June.
    2. LoPiccalo, Katherine, 2022. "Impact of broadband penetration on U.S. Farm productivity: A panel approach," Telecommunications Policy, Elsevier, vol. 46(9).
    3. Manlove, Jacob & Whitacre, Brian, 2019. "An evaluation of the Connected Nation broadband adoption program," Telecommunications Policy, Elsevier, vol. 43(7), pages 1-1.
    4. Whitacre, Brian & Gallardo, Roberto, 2020. "State broadband policy: Impacts on availability," Telecommunications Policy, Elsevier, vol. 44(9).
    5. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    6. Bai, Yang & Wang, Ryan Yang & Jayakar, Krishna, 2022. "What $2.5 billion can buy: The effect of the Broadband Initiatives Program on farm productivity," Telecommunications Policy, Elsevier, vol. 46(7).
    7. Pender, John & Goldstein, Joshua & Mahoney-Nair, Devika, 2022. "Impacts of the Broadband Initiatives Program on broadband adoption and home telework," Telecommunications Policy, Elsevier, vol. 46(8).
    8. Jeffcoat, Chris & Davis, Alison F. & Hu, Wuyang, 2012. "Willingness to Pay for Broadband Access by Kentucky Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(3), pages 1-12, August.
    9. Tessa Conroy & Sarah A. Low, 2022. "Entrepreneurship, Broadband, and Gender: Evidence from Establishment Births in Rural America," International Regional Science Review, , vol. 45(1), pages 3-35, January.
    10. Schmit, Todd M. & Severson, Roberta M., 2021. "Exploring the feasibility of rural broadband cooperatives in the United States: The new New Deal?," Telecommunications Policy, Elsevier, vol. 45(4).
    11. John Lai & Nicole O. Widmar, 2021. "Revisiting the Digital Divide in the COVID‐19 Era," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(1), pages 458-464, March.
    12. Deller, Steven & Whitacre, Brian, 2018. "Broadband’s Relationship to Rural Housing Values," Staff Paper Series 591, University of Wisconsin, Agricultural and Applied Economics.

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    Keywords

    Agricultural and Food Policy; Farm Management; Marketing; Public Economics;
    All these keywords.

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