On the Impacts of the Improvements of Smart Farming Technology Services on Famers' Learning by Doing

Abstract

This study constructs a microeconomic model to explain how farmers determine, in the long run, the labor input and efficiency related to agricultural information collecting and processing when their labor input has learning-by-doing effects. Using the model, we analyze how that labor input and efficiency change as the smart farming technology services used by farmers improve. We illustrate situations where farmers are likely to face a trade-off between saving labor input and maintaining the efficiency as the technology services improve. Based on the analysis, we discuss the forms of smart farming technology services to avoid the trade-off.