Perceptions of costs and benefits of farm digitalization in Europe

Abstract

Farm digitalization is transforming agriculture by enhancing productivity, sustainability, and efficiency through advanced technologies like sensors, AI, and data platforms. However, its adoption generates both opportunities and challenges, shaped by stakeholders’ diverse perceptions of costs and benefits. This study explores these dynamics using insights from 18 living labs across Europe, where farmers, policymakers, and technology providers co-developed digital solutions. Findings reveal digitalization’s potential to optimize decision-making, promote sustainability, and foster innovative business models while also highlighting significant financial, social, and operational barriers. Economic concerns — such as high initial costs, unequal access, and fears of technological obsolescence — emerged as critical adoption barriers, particularly for small farms. Non-economic challenges include steep learning curves, trust deficits, and the risk of alienating farmers from hands-on practices. The study underscores the need for inclusive policies, targeted financial support, infrastructure development, and farmer-centred training programs to address these challenges. By fostering trust, collaboration, and equitable access, stakeholders can ensure that farm digitalization benefits all, aligning with European sustainability goals. This paper offers actionable insights for policymakers, agribusiness leaders, and researchers seeking to navigate the complexities of digital transformation in agriculture.