On Tuesday, the Federal Communications Commission (FCC) announced that its Office of Economics and Analytics released a paper entitled, “Impact of Broadband Penetration on U.S. Farm Productivity.” This report found that the available broadband had a noticeable positive impact on farm productivity, including crop yields and other production metrics.
“I’ve had the chance to visit many farms and ranches during my time as Chairman, from Renwood Farms in Charles City, Virginia to Crane Farms in King Hill, Idaho. A constant theme I’ve heard is the boost in productivity that comes with the use of precision agriculture and other broadband-based technologies,” FCC Chairman Ajit Pai said. “This paper confirms these anecdotes, and underscores the importance of the Commission’s top priority of expanding broadband access in rural and underserved areas. It shows how the Rural Digital Opportunity Fund and other universal service programs that help deliver broadband to rural America can benefit us all—in particular, helping America’s farmers produce more and better food for the rest of us.”
In particular, the paper examined the impact of the availability of more broadband in rural areas on farm productivity, specifically analyzing FCC data from Form 477 on broadband availability by census tract as well as data from the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service on agricultural productivity for important crops, such as corn, cotton, hay, soybeans, by county. Specifically, the paper noted “statistically significant effects on increased broadband service, both in terms of lower costs (fertilizer, fuel, seed, etc.) and higher production (yield).” For example, the paper found “that a 1% increase in the number of 25 Mbps/3 Mbps or better broadband connections per 1,000 households is associated with a 3.6% increase in corn yields, as measured in bushels per acre.”
Moreover, a 1% increase in the number of 10 Mbps/0.768 Mbps connections or better “is associated with a 2.4% decrease in operating expenses per farm operation.” The paper also explored “changes in the composition and speed thresholds of connectivity available for selected field crops over time.” The document specified that the goal of the paper “is to study the nexus between rural infrastructure development, digital technologies and agricultural practices, expanding the discussion and understanding of these interrelationships.”
The FCC stated that Katherine LoPiccalo, an economist formerly with the FCC, but now at the Consumer Financial Protection Bureau, wrote the working paper.
The working paper suggests the importance of FCC initiatives that Law Street has covered, such as the 5G Fund for Rural America, its Rural Digital Opportunity Fund for which it allocated $9.2 billion in its Phase I auction, as well as the need for action, such as when senators asked the USDA to remove requirements for communities who received FCC broadband funding.
