From Fiber to Field: The Role of Rural Broadband in Emerging Agricultural Technology

Over the next several weeks, Smart Rural Community^SM will publish preview installments of an upcoming paper on agricultural technology and the role of broadband in supporting farming and farming communities. Readers are invited to submit comments to or request more information from [email protected].
 

ABSTRACT

The use of broadband and other communications technology in agriculture is increasing. These applications enable users to obtain greater input efficiencies and yields. Agricultural technology, or ag tech, can be deployed for crops and animal farming.¹ As technology advances and prices decrease, ag tech adoption is anticipated to increase. Cloud-based and other ag tech systems rely upon secure and robust fixed and mobile broadband connections. Broadband availability in rural agricultural regions will be necessary to maintain domestic and international competitiveness and production capabilities. This paper provides an overview of agricultural markets and technology in the United States and demonstrates the imperative to deploy, develop and maintain connectivity in rural U.S. agricultural regions.

INTRODUCTION

Broadband-enabled technology is becoming increasingly intertwined in agriculture. This development is important from a national policy perspective because it affects both food productivity and economic activity; agriculture is a renewable source of food, fiber, fuel, and fauna. Ag tech refers to the incorporation of technology, generally electronic and computer controlled as opposed to mechanical, in agricultural endeavors. It can be invoked to support crop efficiencies and block chain logistics.² Ag tech can play a decisive role in many farming sectors, including row crops, specialty crops, livestock, and dairy production.

Agriculture, food, and related industries represented approximately 5.2% of U.S. GDP in 2019. While U.S. farms alone contributed more than $136 billion, that amount represents merely the foundation of greater economic activity arising out of dependent sectors including food and beverage manufacturers, retailers, and food services industries.³ This paper will explore the increasing and evolving role of broadband in agriculture and present documented and anticipated positive impacts of ag tech. The analysis will address agricultural trends in the United States, ag tech development, and the role of rural broadband providers. The discussion will demonstrate the critical value of robust broadband deployments in rural agricultural regions.

II. OVERVIEW OF U.S. FARMING

The U.S. Department of Agriculture (USDA) estimates that there are about two million farms in the United States.⁴ While the number of operating farms is decreasing, farms are getting bigger. The average farm in 1935 was 135 acres, whereas the average farm in 2017 was 444 acres. From 1935 until the 1970s, as the number of U.S. farms declined, total farm acreage also decreased. However, overall cropland acreage did not decrease at the same rate as the decline in total number of farms; many farm acres were consolidated beneath common ownership. The result is fewer, but on average larger, farms. Approximately 15% of U.S. farms control about 80% of total farm acres. These trends are expected to continue, with expectations that by 2040, 5% of farms will account for 75% of farm production.⁵ Even as farmed acreage decreases, technological development, including advances in both plant and animal management, has enabled total farm output to nearly triple between 1948 and 2015.⁶

The USDA reports that agriculture and related industries support approximately 11% of total U.S. employment, while food represents nearly 13% of U.S. household expenditures.

The USDA reports that agriculture and related industries support approximately 11% of total U.S. employment, while food represents nearly 13% of U.S. household expenditures.⁷ In 2019, net farm income was projected to reach $69.4 billion, an increase of 10% from 2018.₈ In 2019, receipts for cash crops (crops grown for sale in the marketplace, as opposed to those intended to feed the farm’s animals or for personal subsistence) totaled $193.3 billion; corn and soybean crops accounted for 43.2% of that total, or $76 billion.⁹  Cash receipts for animals and animal products that year totaled $176 billion.¹⁰

Net farm income was projected to reach $69.4 billion

At the same time, U.S. farmers continue to face pressure from global competitors, highlighting the need to maximize operational and economical efficiencies.¹¹ While U.S. farm exports accounted for $139.6 billion in 2018, edging out imports by $10.9 billion (the U.S. imported $128.7 billion of food products), U.S. food imports have increased more rapidly and steadily since 2010.¹² However, export opportunities yet exist as it is anticipated that the world will need 70% more food from 2009 to 2050.¹³ These data indicate a fertile opportunity where ag tech enabled efficiencies can lower input costs and increase net revenues.