USDA Report Details Internet Use and Availability on America's Farms

With so much attention focused on rural broadband these last few months, it's difficult to imagine why last month's “Farm Computer Usage and Ownership” report by the U.S. Department of Agriculture went virtually unacknowledged among rural telecommunications analysts. And yet, the USDA's detailed findings reveal an as-yet unsaturated sector in wireless and broadband technology: the American farm. In the last decade, the number of farms with an internet connection rose by 20%, and more than half of American farms now have access to the internet. But a closer look at the numbers reveals that, of those connected farms, only 11% connect through cable, 38% use DSL, 15% use satellite, 20% use wireless, and 11% still turn to dial-up. Availability is not equal regionally, either, with the West and Northeast enjoying the best coverage and the South suffering from the least opportunity to connect (a little more than half of farms there have computers with internet access).

For the communications provider industry, these farms represent an important “vertical” market, where clever partnerships, federal funding, and local investment can come together to meet sector-specific needs. In the next few months, I'll be taking a closer look at the ways precision agricultural and farming communications technologies are affecting the telecommunications provider industry. I'll also profile companies who are servicing these farms or expanding to provide service there, as well as farmers and other industry insiders who understand the promise of a technologically-connected agriculture sector. Then there's also the recent battle between the widespread use of GPS technology on farms and the potential interruptions from cellular service—as evidenced by the recent Lightsquared uproar we've been following.

The bottom line is that, in communities where internet connections are possible and have even become essential for agriculture, farmers are prepared to make good use of fast, reliable broadband, and they are often frustrated when DSL or dial-up are their only options. In July, RUS Administrator Jonathan Adelstein acknowledged the need to connect rural areas—farms among them—and even gave his rousing speech from a family farm in rural Iowa. Our Cassandra Heyne remarked that Adelstein's sentiments were part of a growing chorus of governmental leaders who hailed broadband as beneficial and even necessary to what I call the Rural Triumvirate: Education, Health Care, and yes, Agriculture. But too few of us in the telecom industry understand how farming communities represent an important vertical market, what they do with internet connectivity, and how investments (public and private alike) are revolutionizing an industry that's as old as this nation.

According to Mike Smith, a farmer who operates a small 40-acre farm in California, “The internet means survival to a lot of small farmers.” Smith says that he and other farmers in his area sell crops directly to customers online, adding “If you don't have a Web site, nobody's going to know about you.” Similarly, Alec Smith (no relation) says that pest control is one of the most important uses for the internet on his farm. He's able to upload pictures of diseased plants to plant specialists across the country, who email him back with suggestions on how to combat the disease or pests. In recent weeks other farmers in Oregon, Iowa, and South Carolina have attested to seemingly immeasurable uses for wireless and broadband on their farms—everything from measuring rainfall and crop fertilizer needs, to checking crop prices and trading agricultural commodity futures.

In fact, the USDA's report underscores what many in the agricultural community take for granted: that one of the keys to more productive and more profitable farming (along with successful farming communities, more broadly) is better Web access. About 40% of smaller U.S. farms are online, with 72% of the largest farms using the internet for farming technologies and farm-related business. The gap in service is a telling one, as precision agriculture technologies—many of which use internet connectivity to store and access data—are becoming the new norm and even proving essential to maintaining profitability and viability. Just this month Purdue University and Crop Life magazine published a survey of 2,500 agricultural dealerships, concluding that precision agriculture is on the rise on United States farms and stating that, in some cases, precision ag resources are now “so common place that they aren't thought of as unique anymore.” As precision technologies become more advanced, better connectivity is crucial.

When it comes to wireless, farmers are beginning to turn to their smart phones and similar mobile devices to check weather forecasts, research farm equipment before buying, get advice on pest control, and communicate with other agriculture specialists. According to PrecisionAg Editor Eric Sfiligoj, “the increasing use of iPhones and Blackberries among agricultural experts [is] one of the up-and-coming trends.” He writes that, “Based upon the evidence, the popularity of smart phones and tablets has grown substantially during the past 12 months, with multiple apps now available covering everything from commodity prices to weather reports. And more are on the way.”

Technology specialist for Crop IMS Jeremy Wilson states that “One of the most significant trends I have seen in the precision ag industry is the increased use of tablets or mobile tools.” These mobile tools allow farmers to be connected globally, even while in the cab of their tractors, so that information can be communicated in a much more timely manner. According to Wilson, “Once the equipment is connected, the sky is the limit to the new functionality that a precision ag manufacturer can design to improve the user experience for the operators.” In other words, precision ag allows the farmer to take to the field what “was once limited to the office where he had an Internet connection.”

The question that remains is what platform will farmers rely on for internet connectivity and when will these services expand to cover underserved areas? The answer likely depends on the region, the cost, the available funding, and the infrastructure already in place, which is why it will be useful to look at examples from across the country and investigate Adelstein's claim that, in rural areas, “recovery is underway.”