Unlocking farmers’ potential: the impact of ICT on farmers’ TFP in grain production

PurposeThis paper aims to estimate the total factor productivity (TFP) of grain production among Chinese farmers, investigate the mechanisms through which information and communication technology (ICT) affects their grain TFP and explore its impact on the TFP disparity among farmers.Design/methodology/approachThis study uses data on the cost-benefit of agricultural products for rural farmers (2004–2022) from the National Development and Reform Commission (NDRC) of China, along with supplementary survey data on farmers’ ICT usage in 2023. A fixed-effects model is employed to evaluate the impact of different types of ICT on farmers’ TFP in grain production as well as to explore the underlying mechanisms. Additionally, the paper investigates how information software applications affect the TFP gap among farmers and examines the differences in impact between elderly and younger farmers. To address potential endogeneity, the model is re-estimated using treatment effects and instrumental variables.FindingsThe results indicate that accessing information tools has a limited effect on farmers' grain TFP. In contrast, the use of information software has a substantial positive impact. Specifically, a 1% increase in the duration of information software usage corresponds to a 0.7% rise in grain TFP. A key mechanism driving this effect is the facilitation of online exchanges of farming experiences. Younger farmers are more adept at utilizing information software to access valuable insights and enhance productivity, whereas elderly farmers face challenges in leveraging such software to improve their efficiency. Consequently, the widespread use of information software has contributed to an expanding TFP gap between farmers.Originality/valueThis study develops a novel theoretical framework to examine the impact of informatization on farmers’ grain total factor productivity (TFP), providing a more accurate measurement by accounting for natural disasters and regional endowments. It makes a clear distinction between ICT access and ICT usage and further investigates the mechanism through which ICT software enhances grain TFP by promoting online communication among farmers. Moreover, the study explores the role of ICT in narrowing the TFP gap across different farmers, offering new insights into the equity implications of digital technology in agriculture.