Author: Veronique Bellon-Maurel, INRAE
Over the last decade, digital technologies have been reshaping the agricultural landscape, presenting both challenges and opportunities. CODECS aims to analyse stakeholder perceptions of costs and benefits (C&B), develop methodologies to assess economic, environmental, and social impacts, and facilitate informed decision-making through a multicriteria approach. These efforts aim to balance trade-offs and synergies, ensuring that digital technologies are adopted effectively and equitably. As part of this activity, CODECS just released a report to evaluate the costs and benefits of digitalisation in agriculture, drawing insights from the project’s 20 Living Labs (LLs).
Stakeholders’ Perceptions: Key Insights
Researchers from Agricultural Economics Research Institute (AGRERI/ELGO-DIMITRA) have engaged with stakeholders through 18 focus group discussions across Europe, collecting valuable data on their views regarding digitalisation.
Stakeholders expressed concerns related to trust issues, changes in the allocation of time and resources on the farm, perceived risks, shifts in farmers’ roles and required skills, increased energy consumption, and governance challenges.
To mitigate these costs, stakeholders emphasised the importance of collaboration and cooperation to facilitate access to digital technologies, and state support in the form of training, infrastructure, subsidies, and regulations.
In addition, the study also highlighted perceived benefits of farm digitalisation, mainly time saving through automation and streamlined processes, emerging business models, and a sense of pride in adopting innovative technologies, enhancing their role as modern agricultural leaders.
Assessing the Impacts of Digitalisation
CODECS is also assessing the environmental, economic, and social impacts of digitalisation at farm and farmer level in CODECS Living Labs. In 2024, data from all Living Labs was collected, thus enriching the understanding of these dynamics, paving the way for tailored support measures. For each dimension, a comparative analysis (before and after digitalisation) is carried out based on quantitative and qualitative data.
Environmental Impact
Led by INRAE, the environmental assessment uses Life-Cycle Assessment (LCA) methods to quantify the ecological footprint of digital farming solutions. Despite limited prior research in this area, a literature review identified gaps and set the stage for improvement. For instance, an IoT-powered vineyard in Slovenia served as a pilot use case, illustrating how streamlined data collection methods can inform sustainable practices.
Economic Impact
AGRERI/ELGO-DIMITRA led the economic evaluation through a multi-step process. First, using concise questionnaires to capture essential data points, such as initial investment, operational costs and financial outcomes. Secondly, they used productivity indicators (e.g., labour efficiency) and financial metrics like Net Present Value (NPV) in digitised farms in order to provide insights into long-term economic benefits. A pilot study in Athens, Greece, showcased the effectiveness of these tools in real-world scenarios.
Social Impact
Digitalisation also introduces changes to farmers’ social and personal dynamics. INRAE, alongside multidisciplinary partners, developed a methodology addressing two critical questions, mainly: “How do digital technologies impact farmers’ practices and well-being?” and “How does the usage context shape these effects?”
Researchers identified five key clusters of social cost and benefits of digitalisations:
- Health and well-being: Positive effects on physical and mental health through reduced manual labour, but potential stress from technology management.
- Quality of life: Positive effects such as free time and pride to be a good farmer.
- Time management: Improvements in time management, versus risks of over-dependence on devices.
- Skills development: Opportunities for learning and skill enhancement.
- Collaboration: Enhanced networks and cooperative farming models, as well as relationships with consumers
Conclusion
Digitalisation offers a promising pathway to revolutionise agriculture, but its adoption must be carefully managed. The CODECS findings highlight the transformative potential of digital technologies in agriculture, and underscore the importance of collaborative efforts, evidence-based strategies, and proactive policies. By addressing stakeholder concerns and leveraging innovative methodologies, the agricultural sector can harness the full potential of digital technologies for a more sustainable and equitable future. However, ongoing research and refinement will be critical to ensure that benefits are maximised while minimising costs.
