Graduation Year

2025

Date of Submission

12-2024

Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Florian Madison

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2024 Cyrus O Gaylord

Abstract

This study investigates the factors influencing the adoption of precision agriculture technologies (AgTech) by farmers across U.S. states. While venture capital (VC) has driven innovation in AgTech startups, the adoption of these technologies by farmers is shaped by a range of economic, demographic, and behavioral factors. My research primarily focuses on demand-side factors, analyzing the role of farm size, government subsidies, education levels, digital engagement, and economic conditions in farmers' decisions to adopt AgTech solutions. Through a random-effects regression model using state-level data from 2021 and 2023, I examine how these factors influence adoption rates, finding that larger farm size, higher labor costs, and increased use of agricultural industry reports are associated with higher adoption rates. My research highlights the complexity of adoption decision, with farmers' attitudes towards AgTech influenced by not only financial and technological factors, but also by social dynamics and local differences. Supply-side data, presented in the appendix, further explores the role of VC investment and startup activity, though the relationship between supply-side metrics and adoption remains weak as a result of data limitations. This research contributes to the literature by emphasizing the need for a deeper understanding of how supply-side innovation and demand-side adoption intersect and highlights the importance of regional- and state-level differences that affect AgTech adoption.

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Agribusiness Commons

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