A Case for Rural Broadband: $47–$65 billion annually in additional gross benefit

The Benton Foundation does a nice summary of a recent report from the U.S. Department of Agriculture (A Case for Rural Broadband: Insights on Rural Broadband Infrastructure and Next Generation Precision Agriculture Technologies).

The give a high level Return on Investment…

This latest chapter in the Trump Administration’s American Broadband Initiative finds that the deployment of broadband networks and adoption of new agricultural technologies could result in approximately $47–$65 billion annually in additional gross benefit for the U.S. economy.

They also noted…

If broadband infrastructure and digital technologies at scale were available at a level that meets estimated producer demand, the U.S. economy could realize benefits equivalent to nearly 18 percent of total agriculture production. Of that 18 percent, more than one-third is dependent on broadband, equivalent to at least $18 billion in annual economic benefits that only high-speed, reliable Internet can provide.

They talk about farms without…

The report details how unreliable broadband service undermines scaling adoption of precision agriculture:

  • Some farmers dedicate significant time and effort to find workarounds to insufficient Internet service, which takes time away from managing their businesses and serving their customers.
  • Some precision agriculture technologies function with basic Internet connections, so even slow speeds are better than no connections at all. But many require a more reliable and high-speed Internet connection as a minimum requirement.
  • Without access to online learning and peer sharing platforms, farmers are less likely to succeed with technology implementation, having wasted money, time, and effort without realizing complete benefits.

And note next steps for the USDA…

This “coordinated action” must focus on six key priorities:

  1. Tailor deployment of Internet infrastructure to communities.
  2. Incentivize development of innovative technologies and solutions, both for scaling connectivity and improving agricultural production.
  3. Create the conditions that allow, encourage, and reward innovation, including identifying the statutory or regulatory obstacles that hinder new, innovative providers.
  4. Coordinate across public programs to effectively use taxpayer funds and develop new partnerships.
  5. Build capability to scale adoption and realize value.
  6. Clarify and emphasize the importance of rural connectivity to all consumers of agriculture commodities.
This entry was posted in economic development, Funding, Policy, Research, Rural by Ann Treacy. Bookmark the permalink.

About Ann Treacy

I have a Master’s Degree in Library and Information Science. I have been interested or involved in providing access to information through the Internet since 1994, when I worked for Minnesota’s first Internet service provider. I am pleased to be a part of the Blandin on Broadband Team. I also work with MN Coalition on Government Information, Minnesota Rural Partners, and the American Society for Information Science and Technology.

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