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Assessing the Value of Broadband Connectivity for Big Data and Telematics: Technical Efficiency

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  • Mark, Tyler B.
  • Whitacre, Brian
  • Griffin, Terry

Abstract

Researchers and practitioners of precision agricultural technology have worked to overcome adoption, cost, and environmental obstacles since its introduction. The next gap in the adoption continuum of profitable precision agricultural technologies is data and data use, the so-called Big Data. Broadband connectivity could be the next hurdle affecting the precision agricultural technology chain and the employment of ‘big data’ and telematics services. Without adequate connectivity the transferring of ‘big data’ from machine-to-machine or to the cloud, inefficiencies are created. These inefficiencies come in the forms of machine downtime, increased human error, and lack of real-time information. We have addressed this issue in a conceptual framework by proposing a non-parametric data envelopment analysis. Simulation and Data Envelopment Analysis (DEA) are utilized to evaluate differing levels of data utilization made possible by broadband internet connectivity. The DEA methodology is useful to estimate the foregone societal value and farm-level profitability due to lack of broadband connectivity. In addition to constraining the profitability of agricultural firms; lack of broadband connectivity limits the adoption of precision agricultural technologies that make use of or relies upon near real time connectivity. The expected results are that producers that have adequate connectivity to employ ‘big data’ and telematics will be more efficient than producers without. Thus, the importance of adequate connectivity can be evaluated.

Suggested Citation

  • Mark, Tyler B. & Whitacre, Brian & Griffin, Terry, 2015. "Assessing the Value of Broadband Connectivity for Big Data and Telematics: Technical Efficiency," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196816, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea15:196816
    DOI: 10.22004/ag.econ.196816
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    References listed on IDEAS

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    1. Brian Whitacre & Roberto Gallardo & Sharon Strover, 2014. "Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 649-670, November.
    2. Yossi Hadad & Lea Friedman & Victoria Rybalkin & Zilla Sinuany-Stern, 2013. "The relationship between DEA efficiency and the type of production function, the degree of homogeneity, and error variability," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(3), pages 595-607, September.
    3. Peter Bogetoft & Lars Otto, 2011. "Benchmarking with DEA, SFA, and R," International Series in Operations Research and Management Science, Springer, number 978-1-4419-7961-2, September.
    4. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
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    Cited by:

    1. LoPiccalo, Katherine, 2022. "Impact of broadband penetration on U.S. Farm productivity: A panel approach," Telecommunications Policy, Elsevier, vol. 46(9).

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    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; Farm Management; Production Economics;
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