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Internet Useage by Farmers
Still uncertain if your farm or agribusiness needs a web site?? Here are a few good reasons...
Farms with Internet access more than doubled to 29% between 1997 and 1999, according to USDA. More than 600,000 U.S. farms and ranches accessed the Internet in 1999, and 15% conducted e-commerce transactions, based on USDA's Agricultural Resource Management Study. This means that roughly one of every 25 farms and ranches bought or sold agricultural products on the Internet.
Almost three-quarters of e-commerce users were between 35 and 54 (over 70%), and just over a third had completed college. Only 46% in the farm population as a whole are between 35 and 54 years old, and 21% have completed college. More than half of 1999 agricultural e-commerce came from the Heartland, Prairie Gateway, and Fruitful Rim regions, which together account for 47% of total farms. Many farms that bought or sold online were small (gross sales below $250,000), although small farms accounted for only 60% of online ag business compared with 94% of all farms.
More than 42% of online market activity in 1999 involved purchasing crop inputs, and online buying was related to farm size. A higher share of larger small farms (sales of $100,000 or more) bought crop inputs over the Internet than smaller farms (17% vs. 4%). Crop-input purchases for these farms (all transaction methods) totaled $2.2 billion in 1999. Farm size showed no relation to transactions for purchasing livestock inputs and selling livestock (58% of online market activity).
Agricultural commerce sites on the Internet are betting that farmers will do business online in increasing numbers. Assuming reliable Internet service, the Net could provide the opportunity to buy and sell commodities efficiently and conveniently, according to this report.
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"Farming for Profit(r) newsletter is distributed exclusively by your local Farm Credit. The editorial material is produced by Doane Agricultural Services Company, 11701 Borman Drive, St. Louis, MO 63146. Copyright (c) 2000 by Doane Agricultural Services Company. All rights reserved. The views expressed and information contained in this publication is believed to be accurate but is not guaranteed by publisher or the local business who distributed the newsletter. The local business and the publisher assume no responsibility or liability for any action taken as a result of any information or advice contained in this newsletter, any action taken is solely at the liability of and responsibility of the user."
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