Digital Agricultural Policy: Effects Of Digitalization In Agricultural Policy

Abstract

The agricultural sector is becoming more and more digitalized. At the same time, there are growing calls for agricultural policies that better support sustainability. It is unclear, meanwhile, how digitization can improve agricultural policy's ability to lessen undesirable effects and increase farming's advantages. The extent to which digital technology can lead to new design specifications and a variety of agricultural policy tools that more effectively and potentially more efficiently handle sustainability issues in farming is examined in this article. Using examples from practice and theoretical insights, it creates and implements an analytical framework that focuses on the effects of digitalization in several policy dimensions in a European setting. We demonstrate that traditional agricultural policy's use of analog technologies is not simply replaced by digital agricultural policy. It provides fresh ideas for agriculture policy, such as innovative ways to more successfully handle problems. It specifically presents chances for more efficient spatial targeting and instrument customization, including results-based subsidies. To facilitate policy learning and design adaptation, digital data can be strategically generated utilizing the appropriate instrument designs. Digitalization typically lowers transaction costs while benefiting information-intensive tools and designs the most. Additionally, information-based governance may replace direct action in agricultural policy as a result of digitalization. However, the analysis indicates that research and practice of digitalizing agricultural policy need to pay attention to institutional restrictions and interests as well as the skills of the individuals involved