Browsing by Person "Munz, Johannes Christoph"

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Möglichkeiten und Grenzen digitaler Technologien in einer kleinstrukturierten Landwirtschaft: Eine quantitative Analyse ökonomischer Schlüsselfaktoren
(2024) Munz, Johannes Christoph; Doluschitz, Reiner
In view of the many challenges currently facing agriculture, digitalization offers solutions to counteract the shortage of skilled workers, changes in the legal framework and climatic adversities, for example, and to use production factors more efficiently and thus increasing productivity. Many of the digital technologies available for precision agriculture today, such as automatic steering systems and site-specific fertilization, achieved market maturity decades ago. This long-standing availability appears to be driving a global trend towards digitalization in agriculture, particularly in large-scale farming regions, where adoption rates are notably higher. However, efforts to promote widespread use of digital technologies in small-scale agriculture have been less successful. Given the extended availability of these technologies and persistently low adoption rates, it is crucial to examine whether previously overlooked factors may be at play. Furthermore, it seems possible that the current solutions are not sufficient and that the acceptance rates expected by society, politics and science need to be set lower. To address this research gap, this dissertation focuses on Baden-Württemberg, a region characterized by small-scale agriculture. It examines the economic factors influencing the adoption of commercially available precision farming technologies in arable farming, considering on-farm, technological, and off-farm factors. Additionally, the study explores how these factors impact the regional diffusion of these technologies. The research employs a mixed-methods approach, combining literature review, qualitative methods, and econometric analyses, to provide a comprehensive understanding of the adoption dynamics in this context. Data on the costs, benefits, and existing adoption rates of the technologies were gathered from literature reviews and crosschecked with practical experience. Additionally, undocumented values, such as the time required for familiarization with a technology, were collected using qualitative methods. This information was incorporated into specific calculation models in order to determine the economic applicability of the technologies under different operational and regional conditions by means of cost-benefit analyses. In small-scale farming, the extent of the area on which a technology is applied is the most significant factor influencing adoption within a farm, as it directly impacts the fixed costs per hectare. On the socio-economic side, this study quantifies the hesitancy of farmers, as described in the literature, due to the uncertainty associated with investing in digital technologies. Even with comprehensive data, reliably estimating the long-term profitability of such investments remains challenging, especially during the first two years of use, as insufficient data exist to perform a robust trend analysis.Technological differences become evident when comparing the ratio of investment costs to the additional benefits provided by the technologies, as well as in the certainty of achieving these benefits. Automatic guidance systems, for example, offer clear advantages by reliably realizing additional benefits, such as savings in inputs, with minimal risk due to their technical characteristics. Similarly, site-specific fertilization, which involves relatively low investment costs, has the potential to generate significant added value. The existing technology on farms plays a crucial role in determining the profitability of new investments over their useful life, as the level of sunk costs at the outset is heavily influenced by the current level of mechanization. Off-farm factors become particularly significant when the potential additional benefit of a technology is tied to yield increases. This uncertainty in achieving additional benefits often leads risk-averse users to adopt a wait-and-see approach, which plausibly explains the low adoption rates of site-specific technologies. Economic modeling of the adoption potential for the selected technologies in Baden-Württemberg corroborated the low adoption rates reported in previous studies, with median potentials of 4.6% for automated guidance systems and 17.7% for site-specific fertilization. To encourage widespread digitization, the potential user base could be expanded through various strategies. Private sector initiatives, such as those led by contractors, are particularly effective as they reduce scale dependencies and allow farms to trial the technology with minimal risk. Notably, promotional measures do not uniformly impact all technologies, highlighting the need for technology-specific interventions, especially for those technologies and farms that are currently at a disadvantage. For example, in the case of site-specific seeding, a significant increase in adoption potential could be most effectively achieved through regulatory measures, while for sitespecific spraying, the involvement of service providers would be most effective. Disadvantaged farms are to be found and supported above all where there are structural disadvantages, such as a low factor endowment. In conclusion, small-scale agricultural regions face distinct challenges in digitalization, particularly economic constraints and technological barriers. To prevent a digital divide between large and small farms, targeted, technology-specific measures are crucial, and disadvantaged farms require focused support. Additionally, the limitations of digitalization should be clearly communicated by policymakers, scientists, and business leaders, as not every farm can or wishes to digitalize. A key first step is a representative survey of the current digitalization status of farms in Baden-Württemberg, forming the basis for a state-wide digitalization strategy. This strategy should also incorporate private-sector initiatives, which are vital for advancing digitalization efforts in the region.