RT Journal Article
SR Electronic
T1 Value of Farm Data in Farmland Rental Markets: Management versus Signaling Value
JF Land Economics
FD University of Wisconsin Press
SP 690
OP 708
DO 10.3368/le.100.4.041023-0032R1
VO 100
IS 4
A1 DeLay, Nathan D.
A1 Thompson, Nathanael M.
A1 Mintert, James R.
A1 Kuethe, Todd
A1 Lusk, Jayson L.
YR 2024
UL http://le.uwpress.org/content/100/4/690.abstract
AB Precision farming data enhance agricultural productivity by informing site-specific resource management. These benefits may be capitalized into the underlying value of the farmland, raising rental rates. This article uses a stated preference choice experiment to estimate farmers’ willingness to pay for farm data in farmland rental markets. Farmers are willing to pay a small premium to acquire data accrued by previous operators, depending on the field type and quality information provided by the landowner and farmers’ use of precision agriculture technology. We find evidence that farm data confer both a “management value” and a “signaling value” to prospective tenants.