How does digital technology application empower specialty agricultural farmers? Evidence from Chinese litchi farmers

Abstract

IntroductionSpecialty agricultural farmers have widely adopted digital technologies in all aspects of their specialty agricultural operations. However, the effect of digital technology application (DTA) on specialty agricultural farmers’ income has not been fully evaluated. Moreover, it remains unclear whether DTA enhances farmers’ income (FI) by improving their varied capabilities. To fill this gap, we analyzed the intrinsic relationship and mechanism between DTA, farmers’ capability (FC), and specialty agricultural farmers’ income.MethodsUsing field survey data from 635 litchi farmers in China, we employed OLS regression models and mediation effect models to empirically investigate DTA’s direct and indirect impacts on litchi farmers’ income. Additionally, we examined the group heterogeneity and regional heterogeneity.Results and discussionThe empirical results show that DTA can promote specialty agricultural farmers’ income by enhancing their production capacity (PC) and transaction capacity (TC). Heterogeneity analysis showed that the empowering effect of DTA is especially significant for disadvantaged farmers, and farmers who are in specialty agricultural resources-rich regions.ConclusionThis study contributes to the body of research on the empowerment of specialty agricultural farmers by examining the effect of DTA from a capability perspective. Consequently, to better play the empowering effect of DTA for specialty agricultural farmers, policymakers should account for regional disparities in promoting digital agriculture, and enhance heterogeneous farmers’ DTA capability.