The Effects of Digitalization on the Sustainability of Small Farms

Abstract

Digitalization of agriculture is one of the priorities of the EU’s rural development strategy “From Field to Table”, which promotes the creation of more added value and climate change mitigation in agriculture. A growing body of the literature argues that digitalization enables better information management, reduces production costs, and increases the potential for farm income growth, but only a few papers provide empirical studies on how digitalization improves the performance of small farms. To fill this gap in the literature, this paper presents a case study as empirical evidence of the impact of digital innovation on smallholder performance through a sustainable development lens. This paper reports research based on a pilot digitalization project implemented on a small organic farm. It examines the identification of logical links between the digitalization processes introduced and the impact of digitalization on the economic, social, and environmental performance of the small farm. The case study data were collected through semi-structured interviews and based on the results of a pilot project. The findings of this study provide evidence that the introduction of digital technologies has improved the economic performance of the farm, including a reduction in labor costs, improved customer relations, improvements in farmers’ investment planning, and process redesign. Based on this study, recommendations are made to policymakers on how to promote the uptake of digital technologies in smallholder farming.