<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The challenges of new rural technological possibilities in the 21st century resonate with agriculture. These represent, in particularly the improving availability of ICT infrastructure and the digitisation of socioeconomic processes. This paper focuses on exploring issues related to the potential change in the business behaviour of agricultural holdings and farmers following digitization and the use of ICT. The empirical research was carried out in the territory of the Local Action Group (LAS) Železnohorský region, which is a typical inner rural periphery with a strong agricultural base. The paper presents both the results of an exploratory survey and also develops a specific empirical model according to the improved Cobb-Douglas production function with specifics of the agrarian sector (i.e., including the role of agricultural subsidies and also the application of advanced ICT). The results in the selected rural micro-region showed that the process of digitisation has been very marginal in the models of functioning of the relevant agricultural entities. The current prevailing “techno-optimist approach” in EU strategic planning needs to be overcome by more intensive and comprehensive support for the digitisation process in rural peripheral areas. Particularly, this involves a necessary combination of support for investment in ICT infrastructure and new technologies with more intensive support for digital literacy and knowledge empowerment, which will enable more intensive exploitation of the potential and possibilities of digital technologies and virtual environments.</p>
</abstract>

The challenges of new rural technological possibilities in the 21st century resonate with agriculture. These represent, in particularly the improving availability of ICT infrastructure and the digitisation of socioeconomic processes. This paper focuses on exploring issues related to the potential change in the business behaviour of agricultural holdings and farmers following digitization and the use of ICT. The empirical research was carried out in the territory of the Local Action Group (LAS) Železnohorský region, which is a typical inner rural periphery with a strong agricultural base. The paper presents both the results of an exploratory survey and also develops a specific empirical model according to the improved Cobb-Douglas production function with specifics of the agrarian sector (i.e., including the role of agricultural subsidies and also the application of advanced ICT). The results in the selected rural micro-region showed that the process of digitisation has been very marginal in the models of functioning of the relevant agricultural entities. The current prevailing “techno-optimist approach” in EU strategic planning needs to be overcome by more intensive and comprehensive support for the digitisation process in rural peripheral areas. Particularly, this involves a necessary combination of support for investment in ICT infrastructure and new technologies with more intensive support for digital literacy and knowledge empowerment, which will enable more intensive exploitation of the potential and possibilities of digital technologies and virtual environments.

Contesting the Role of Digitisation and ICT in the Business Model of Agricultural Holdings and Farmers: Micro-Study of the Inner Rural Periphery Region in the Czech Republic

Department of Regional Studies, Faculty of Economics

Prague University of Economics and Business

European Countryside

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The challenges of new rural technological possibilities in the 21st century resonate with agriculture. These represent, in particularly the improving...

Contesting the Role of Digitisation and ICT in the Business Model of Agricultural Holdings and Farmers: Micro-Study of the Inner Rural Periphery Region in the Czech Republic

Published Online: Apr 02, 2023

Page range: 99 - 123

Received: Jul 17, 2022

Accepted: Nov 22, 2022

DOI: https://doi.org/10.2478/euco-2023-0006

Keywords
digitisation, agriculture, inner rural periphery, rural development

© 2023 Martin Pělucha et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Contesting the Role of Digitisation and ICT in the Business Model of Agricultural Holdings and Farmers: Micro-Study of the Inner Rural Periphery Region in the Czech Republic

Published Online: Apr 02, 2023

Page range: 99 - 123

Received: Jul 17, 2022

Accepted: Nov 22, 2022

DOI: https://doi.org/10.2478/euco-2023-0006

Keywordsdigitisation, agriculture, inner rural periphery, rural development

© 2023 Martin Pělucha et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
digitisation, agriculture, inner rural periphery, rural development