Joint Adoption of Microcomputer Technologies: An Analysis of Farmers' Decisions

This study presents an econometric examination of the joint decisions of farmers on the adoption of a microcomputer and (or) purchased computers services. The characteristics of a farmer-schooling, age, off-farm work-are shown to be important variables for explaining the odds of adopting purchased computers services only, a microcomputer only, and both computer technologies. Adoption of computer technologies seems to occur in farming operations where they can be expected to greatly enhance the efficiency. Recent advances in microcomputer technology and availability of low cost microcomputers have greatly increased the potential for information storage and analysis by small firms. The use of on-site microcomputers and of hired computer services can increase the profitability of farming operations (Sonka, 1983). The need for capability to utilize more sophisticated information and data storage and processing equipment has increased as U.S. farm businesses have become larger and more complex. This study examines the joint decisions by farmers for adopting microcomputers and computer services for their farm businesses. Purchased computer services are services acquired outside the farm, such as accounting or farm record analyses, that involve the use of a computer. These services do not generally require the use of a computer on the farm. A multivariate logit specification of this adoption model is fitted to data obtained from a survey on ownership and use of different computer-related technologies. The results show that a farmer's schooling and his farm's structure have Received for publication October 21, 1988. Revision accepted for publication August 21, 1990. * Iowa State University and USDA-ERS, respectively. The authors thank Peter Orazem, Wayne Fuller, and two anonymous referees for helpful comments, and Eric Abbott for making microcomputer survey data available. Journal Paper No. J-13318 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Iowa. Project No. 2738.