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Government Data and Agricultural Productivity: Evidence from the National Agriculture Imagery Program
2024-09-02 15:16:14
This paper examines whether and how government data can help tackle the lack of digital data in the agricultural sector. Specifically, we investigate the impact of adding near-infrared (NIR) band data to the National Agriculture Imagery Program on agricultural productivity. Following this addition, we observe a rise in productivity equivalent to a 2.6 million-ton increase in the US corn yield, valued at approximately $520 million. Our mechanism assessment, however, reveals that the positive effect exists only when data quality and human capital supply are sufficiently high. We further examine how NIR data inclusion affects farm profitability, efficient chemical and fertilizer use, and technological upgrades. Our research sheds new light on the importance of overcoming data availability challenges in foundational sectors that were not born digital.