State Policy for Digitalization in Agriculture: Institutional Approach

Abstract:

Authors did a critical review of the publications on negative consequences of digitalization of agriculture. Such consequences (that could threaten the food security of the country) were outlined using the methodology of institutional theory research. This problem and the role of the state in its prevention is barely explored in modern publications. Authors emphasize that modern research does not take into account the opportunistic behavior of digital technology producers in agriculture, sellers-competitors in agricultural markets, as well as political rent seeking bureaucracy, scientists and agricultural advisory service workers, who are influenced by digital technology producers.

Authors claim that digital technologies in agriculture belong to Network goods and not to Public goods, so the main task of state policy for digitalization of agriculture is not to promote its spread over as large area as possible, but to protect farmers and the population from the negative consequences of its implementation. Effective digitalization of agriculture is possible only after the establishment of strong institutional environment, which would provide comprehensive and sustainable security for all businesses of the agricultural sector in conditions of the rapidly growing cyber-threats. Such environment should guarantee the country's food security. Authors also claim that the rapid digitalization of agricultural advisory services, which are funded by the state, lost their relevance and do not require further government funding.

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