USDA’s Economic Research Service emails out a Chart of Note on a daily basis.
Today’s chart highlights the fact that
Farms with more production value are more likely to have broadband access
Here is what accompanied the chart:
One of the salient features of the Internet is its capacity to provide information quickly and cheaply compared to other dissemination methods, which may reduce the costs of communicating, transacting, and sourcing information. With improved information and knowledge, individuals’ perception of products and services provided by businesses would be more accurate. As a result, Internet use may lead to greater efficiency in the agricultural and other rural business sectors. With respect to broadband usage among farm businesses, respondents to the 2007 Agricultural Resources Management Survey (ARMS) were asked if they had Internet access and if it was “high-speed.” A majority of farms (63 percent) reported using the Internet in their farm business. Among those using the Internet, the predominant access method was broadband and this group of users accounted for over 60 percent of U.S. farm production. This chart appeared in the report, Broadband Internet’s Value for Rural America, ERR-78, August 2009.
I think there are two possible explanations of this chart, which may both be true. The first potential explantion is that it makes sense that the bigger producers find a way to get broadband because they put more effort into it since it is more important to their business success.
Although it cannot be determined from this chart, a second possible interpretation is that farms near metro areas have better broadband access, which is no surprise. I suggest this possible conclusion because the chart is based on “Value of Farm Production (percent)”. Since 2/3 of the value of farm production comes from metro and adjacent counties—generally higher value products like fruit and veggies—this chart may just illustrate that commodity farms in remote areas, which produce less value (remember this was 2007 before grain prices were just going up) have less access to broadband. Duh, that’s no surprise. I would strongly resist the temptation to interpret this as “big farmers have better access than small farmers”.
By: Gary Matteson on 07/19/2012
at 7:41 am
Why is farming any different than any other business? Can you imagine running a restaurant or retail store with no high speed internet connection, let alone no internet at all. You wouldn’t have a business!
Rural communities, where farming resides, are more often than not, trying to “hang on to yesterday,” and fight change at every turn. This attitude is exactly the forbearer of the demise of local privately owned farming.
My latest post examines this phenomena, “The Death of Small Town U.S.A.” … or maybe not? ~ http://bit.ly/MyPyFN I would love to hear what you people have to say about the future of rural America and what we can do to ensure its survival and prosperity.
By: Clay Forsberg on 07/18/2012
at 9:58 am