Adoption of farm management information systems (FMIS): The case of Brazilian sugarcane farmers

Abstract

Farm Management Information Systems (FMIS) have been adopted by farmers for planning, monitoring, and controlling agricultural operations. These systems are at the core of the digital farming revolution and can improve the technical, economic, and environmental efficiency of farming. This study evaluates the factors that influence the decision to adopt FMIS by sugarcane farmers in the state of São Paulo, Brazil. A survey of 131 sugarcane farmers provided cross-sectional farm-level data for the 2018/19 crop year, which were analyzed by a logit regression model. The decision to adopt FMIS is positively affected by farmers’ level of education, private advisor, access to rural credit, off-farm income, farm size, and use of forward contracts. FMIS adoption is associated with risk-averse farmers as part of a risk management strategy. The results can help farmers in their decisions to adopt and both policymakers and FMIS suppliers in their strategies to foster FMIS diffusion. FMIS diffusion can increase sugarcane production efficiency resulting in positive shocks to sugar and ethanol production, which are key components of Brazil's rural development and energy strategies.