Willingness to Pay for Broadband Access by KentuckyFarmers

Abstract

Since the Internet's inception its impact has been felt across the UnitedStates, but the distribution and adoption of the Internet has notnecessarily been uniform geographically. As more consumers and businessesrely on the Internet to access information, the data transmissionrequirements have also increased. Consequently, access to broadband hasbecome increasingly more important since dial-up cannot realistically handlethe increased requirements. The use of broadband in agriculture can providebetter access to price, weather, and management information while alsoopening new markets. However, many rural communities lag behind urban areasin broadband access and adoption rates. This study evaluates, through theuse of a producer survey, the level of broadband Internet use, motivationsfor its use, degree of access to broadband, and willingness-to-pay (WTP) tofund broadband infrastructure investments. Results from the producer surveysuggested farmers utilize the Internet primarily for accessing weatherreports, e-mail, market reports, and agricultural news. Notably, thesurvey's WTP questions allowed for the use of an interval regression tocalculate producer WTP for varying demographics. The results suggested thatproducers who were younger, farmed larger farms, and those who currently usethe Internet but do not have broadband access were WTP more in propertytaxes to support broadband infrastructure investments than those of adiffering demographic. Because WTP levels varied drastically depending onthe underlying demographics, it becomes difficult to pinpoint a WTP levelfor a one-time payment in property taxes that would be acceptable from apolicy standpoint.