Assessing costs and benefits of agricultural digitalisation: the case of data collection support tools in agricultural-pastoral farms
Published 2025-03-18
Keywords
- digital technology,
- livestock farming,
- costs and benefits,
- sustainable digitalisation,
- living lab
How to Cite
Copyright (c) 2025 Fabio Lepore, Livia Ortolani, Constantine Iliopoulos, Daniele Vergamini, Gianluca Brunori

This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
The digitalisation of agriculture is transforming production models, offering advanced tools for data management and operational efficiency. This study examines the impact of digital technologies, focusing on agricultural-pastoral farms as a case study, with particular attention to the social, economic, and environmental costs and benefits perceived by stakeholders. A living lab approach was used, involving farmers, technicians, animal science and ICT experts, and supply chain representatives to make a participatory evaluation of a co-designed Farm Management Information System. This study contributes to the literature by offering an insightful analysis of stakeholder-driven digitalisation processes in the agricultural sector. Results indicate no negative social or environmental externalities. Costs are classified as transition for user training, transaction for collaboratively developing the data-sharing and governance infrastructure, and operational for maintenance expenses and return on the public investment that funded its development. Social benefits include improved farmer well-being, reduced administrative burdens, and greater appeal for young farmers. Economic benefits involve increased productivity, enhanced management efficiency, cost reductions, and a higher market value. Environmental benefits arise from optimised resource use, less waste, and reduced antibiotic resistance. These findings highlight the potential of digitalisation to enhance production quality, animal welfare, and farm management, laying the foundation for broader benefits along the supply chain, aligned with the principles of sustainable digitalisation.
Downloads
Metrics
No metrics found.
References
- Alm E., Colliander N., Lind F., Stohne V., Sundström O., Wilms M., Smits M. (2016). Digitising the Netherlands: How the Netherlands Can Drive and Benefit from an Accelerated Digitized Economy in Europe. Boston Consulting Group.
- Bacco F.M., Barsocchi P., Ferro E., Gotta A., Ruggeri M. (2019). The Digitisation of Agriculture: A Survey of Research Activities on Smart Farming. Array: 3-4, 100009. DOI: https://doi.org/10.1016/j.array.2019.100009.
- Ball J.A. (2020). Women farmers in developed countries: a literature review. Agriculture and Human Values, 37: 147-160. DOI: https://doi.org/10.1007/s10460-019-09978-3.
- Banhazi T.M., Lehr H., Black J.L., Crabtree H., Schofield P., Tscharke M., Berckmans D. (2012). Precision Livestock Farming: An international review of scientific and commercial aspects. International Journal of Agricultural and Biological Engineering, 5(3): 1-9. DOI: 10.3965/j.ijabe.20120503.001.
- Benjamin M., Yik S. (2019). Precision Livestock Farming in Swine Welfare: A Review for Swine Practitioners. Animals, 9(4), 133. DOI: https://doi.org/10.3390/ani9040133.
- Berckmans D. (2016). General introduction to precision livestock farming. Animal Frontiers, 7(1): 6-11. DOI: https://doi.org/10.2527/af.2017.0102.
- Bley K., Leyh C., Schäffer T. (2016). Digitization of German Enterprises in the Production Sector - Do they know how “digitised” they are? In: Proceedings of the 22nd Americas Conference on Information Systems (AMCIS 2016). august 11-13. San Diego, California, USA.
- Boardman A.E., Greenberg D.H., Vining A.R., Weimer D.L. (2018). Cost-benefit analysis: Concepts and practice. Cambridge University Press.
- Bockshecker A., Hackstein S., Baumöl U. (2018). Systematization of the term digital transformation and its phenomena from a socio-technical perspective – A literature review. Research Papers. 43. https://aisel.aisnet.org/ecis2018_rp/43.
- Bonari E., Mantino A. (2015). Sistemi foraggeri, ovinicoltura razionale e conservazione del territorio nelle aree interne della Toscana. In: La ricerca e l’innovazione nel Pecorino Toscano DOP: i risultati ottenuti e le sfide per il futuro, 65-82. I Georgofili, Quaderni 2015-I, Accademia dei Georgofili – Firenze.
- Brown M.G., Svenson R.A. (1988). Measuring R&D productivity. Research Technology Management, 31(4): 11-15. DOI: https://doi.org/10.1080/08956308.1988.11670531.
- Brundtland, G.H. (1987). Our Common Future: Report of the World Commission on Environment and Development. Geneva, UN-Dokument A/42/427. http://www.un-documents.net/ocf-ov.htm
- Bumann J., Peter M.K. (2016). Action Fields of Digital Transformation - A Review and Comparative Analysis of Digital Transformation Maturity Models and Frameworks. Digitalisierung und andere Innovationsformen im Management. 2019; 2:13-40. Edition Gesowip, Basel/Schweiz.
- Causevic A., Avdic S., Padegimas B., Macura B. (2022). Analysis of international public funding flows for the environment, climate change, and sustainability: the case of Bosnia and Herzegovina. Energ Sustain Soc, 12, 34. DOI: https://doi.org/10.1186/s13705-022-00359-z.
- CODECS (2022). Maximising the CO-benefits of agricultural Digitalisation through conducive digital ECoSystems. Grant agreement ID: 101060179. DOI: https://doi.org/10.3030/101060179.
- Collarini C.R., Pettingill H.S., Stires J.L. (2021). Economic considerations and market condition effects in deepwater. Deepwater Sedimentary Systems, 693-722. DOI: https://doi.org/10.1016/B978-0-323-91918-0.00005-0.
- Dahlman C.J. (1979). The Problem of Externality. The Journal of Law & Economics, 22(1): 141-162. http://www.jstor.org/stable/725216.
- Dascalu C., Caraiani C., Iuliana Lungu C., Colceag F., Raluca Guse G. (2010). The externalities in social environmental accounting. International Journal of Accounting & Information Management, 18(1): 19-30. DOI: https://doi.org/10.1108/18347641011023252.
- Davis N. (2016). What is the fourth industrial revolution? World Economic Forum. Vol. 19. 2016. https://www.weforum.org/agenda/2016/01/what-is-the-fourth-industrial-revolution.
- De V. Graaff J. (2018). Social Cost. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. DOI: https://doi.org/10.1057/978-1-349-95189-5_1459.
- Edwards W., Duffy P. (2013). Farm Management. Encyclopedia of Agriculture and Food Systems, 100-112. DOI: https://doi.org/10.1016/B978-0-444-52512-3.00111-X.
- EEA (2023). Assessing the costs and benefits of climate change adaptation. European Environment Agency. Retrieved at: https://www.eea.europa.eu/publications/assesing-the-costs-and-benefits-of.
- FAO (2023). The status of women in agrifood systems. Rome. DOI: https://doi.org/10.4060/cc5343en.
- Fazeli S., Bozorg-Haddad O., Budds J., Berrens R.P. (2020). Water markets. Economical, Political, and Social Issues in Water Resources, 61-83. DOI: https://doi.org/10.1016/B978-0-323-90567-1.00003-6.
- Ferrari A., Bacco F.M., Gaber K., Jedlitschka A., Hess S., Kaipainen J., Koltsida P., Toli E., Brunori G. (2022). Drivers, barriers and impacts of digitalisation in rural areas from the viewpoint of experts. Information and Software Technology, 145, 106816. DOI: https://doi.org/10.1016/j.infsof.2021.106816.
- Fountas S., Carli G., Sørensen C.G., Tsiropoulos Z., Cavalaris C., Vatsanidou A., Liakos B., Canavari M., Wiebensohn J., Tisserye B. (2015). Farm management information systems: current situation and future perspectives. Computers and Electronics in Agriculture, 115: 40-50. DOI: https://doi.org/10.1016/j.compag.2015.05.011.
- García Robles A., Hirvikoski T., Schuurman D., Stokes L. (2015). Introducing ENoLL and its Living Lab community. European Network of Living Labs: Brussels, Belgium. https://issuu.com/enoll/docs/enoll-print?e=23453591/33195876.
- Georgofili (2015). La ricerca e l’innovazione nel Pecorino Toscano DOP: i risultati ottenuti e le sfide per il futuro. Vol. 12, No. Supplemento 1, 25. Accademia dei Georgofili - Firenze.
- Giua C., Materia V.C., Camanzi L. (2021). Management information system adoption at the farm level: evidence from the literature. British Food Journal, 123(3): 884-909. DOI: https://doi.org/10.1108/BFJ-05-2020-0420.
- Groher T., Heitkämper K., Umstätter C. (2019). Digital technology adoption in livestock production with a special focus on ruminant farming. Animal, 14(11): 2404-2413. DOI: https://doi.org/10.1017/S1751731120001391.
- Hanley N., Barbier E.B. (2009). Pricing Nature: Cost-Benefit Analysis and Environmental Policy. Edward Elgar Publishing.
- Hossain M., Leminen S., Westerlund M. (2019). A systematic review of living lab literature. Journal of Cleaner Production, 213: 976-988, ISSN 0959-6526. DOI: https://doi.org/10.1016/j.jclepro.2018.12.257.
- Iliopoulos C., Theodorakopoulou I., Giotis T. (2024). Stakeholder perceptions of cost and benefits of digitalisation in agriculture. In: D4.1 Synthesis report on Environmental, Economic, and Social C&B of farm digitalisation WP4 Deliverable. H.E. CODECS.
- IPCC (2007). Climate Change 2007: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, M.L. Parry, O.F. Canziani, J.P. Palutikof, P.J. van der Linden and C.E. Hanson (eds.), Cambridge University Press, Cambridge, UK, 976 pp.
- Islam S., Cullen J.M. (2021). Food traceability: A generic theoretical framework. Food Control, 123, 107848. DOI: https://doi.org/10.1016/j.foodcont.2020.107848.
- ISMEA (2023). Rapporto 2023 sull’agroalimentare italiano. Istituto di Servizi per il Mercato Agricolo Alimentare ISMEA. Roma, Italia.
- ISTAT (2020). La diffusione delle tecnologie nelle aziende zootecniche - Anno 2020. Istituto nazionale di statistica. Italia. Retrieved at: https://www.istat.it/it/files/2021/05/Report-tecnologie-aziende-zootecniche_2020.pdf.
- ISTAT (2021). Latte e prodotti lattiero caseari. Retrieved at: http://dati.istat.it/Index.aspx?DataSetCode=DCSP_CONSISTENZE#. Accessed 5th March 2024.
- Jiang W., Marggraf R. (2021). The origin of cost-benefit analysis: a comparative view of France and the United States. Cost Effectiveness and Resource Allocation, 19(1): 1-11. DOI: https://doi.org/10.1186/s12962-021-00330-3.
- Johnston P., Everard M., Santillo D., Robèrt K.H. (2007). Reclaiming the definition of sustainability. Environmental Science and Pollution Research International, 14(1): 60-66. DOI: 10.1065/espr2007.01.375.
- Kassahun A., Bloo R., Catal C., Mishra A. (2021). Dairy Farm Management Information Systems. Electronics, 11(2), 239. DOI: https://doi.org/10.3390/electronics11020239.
- Klerkx L., Jakku E., Labarthe P. (2019). A review of social science on digital agriculture, smart farming and agriculture 4.0: New contributions and a future research agenda. NJAS - Wageningen Journal of Life Sciences, 100315. DOI: https://doi.org/10.1016/j.njas.2019.100315.
- Krueger R.A., Casey M.A. (2000). Focus groups: A practical guide for applied research. 4th ed. Thousand Oaks, CA: Sage Publications Inc.
- Leminen S., Westerlund M., Nyström A.G. (2012). Living Labs as Open-Innovation Networks. Technology Innovation Management Review, 2(9): 6-11. DOI: http://doi.org/10.22215/timreview/602.
- Macciotta N.P.P., Barbari M., Tassinari P., Falsone G., Roggero P.P., Urgeghe P.P. (2020). Intensificazione sostenibile nella filiera ovina e caprina. In Atti del XVII Convegno AISSA (pp. 37-45). Italian Association of the Agricultural Science Societies.
- Mackey A., Petrucka P. (2021). Technology as the key to women’s empowerment: a scoping review. BMC Women's Health, 21, 78. DOI: https://doi.org/10.1186/s12905-021-01225-4.
- Mantino A., Volpi I., Cappucci A., Guidotti D., Ragaglini G., Santarelli C., Putgioni P., Nucci L., Lauri M., Bonari E., Righini A., Mele M. (2019). Precision Sheep: EIP-Agri Operational Group For Precision Farming In Semi-Intensive Dairy Sheep Farming Systems. In Proceedings of XLVIII Conference of Italian Society for Agronomy. Società Italiana di Agronomia.
- Millock K. (2012). Clean Development Mechanism. Encyclopedia of Energy, Natural Resource, and Environmental Economics, 15-21. DOI: https://doi.org/10.1016/B978-0-12-375067-9.00127-3.
- Mondejar M.E., Avtar R., Diaz H.L.B., Dubey R.K., Esteban J., Gómez-Morales A., Hallam B., Mbungu N.T., Okolo C.C., Prasad K.A., She Q., Garcia-Segura S. (2021). Digitalization to achieve sustainable development goals: Steps towards a Smart Green Planet. Science of The Total Environment, 794, 148539. DOI: https://doi.org/10.1016/j.scitotenv.2021.148539.
- Neethirajan S. (2023). The Significance and Ethics of Digital Livestock Farming. AgriEngineering, 5(1): 488-505. DOI: https://doi.org/10.3390/agriengineering5010032.
- Neethirajan S., Kemp B. (2021). Digital Livestock Farming. Sensing and Bio-Sensing Research, 32, 100408. DOI: https://doi.org/10.1016/j.sbsr.2021.100408.
- Neethirajan S., Ragavan K., Weng X. (2018). Agro-defense: Biosensors for food from healthy crops and animals. Trends in Food Science & Technology, 73: 25-44. DOI: https://doi.org/10.1016/j.tifs.2017.12.005.
- Nguyen-Phung H.T., Kohara M., Er S. (2024). The impact of ICT development on female employment and household’s well-being in Vietnam. JER, 75: 951-978. DOI: https://doi.org/10.1007/s42973-024-00180-7.
- Norton T., Chen C., Larsen M., Berckmans D. (2018). Review: Precision livestock farming: Building ‘digital representations’ to bring the animals closer to the farmer. Animal, 13(12): 3009-3017. DOI: https://doi.org/10.1017/S175173111900199X.
- OECD (2018). Bridging the digital gender divide: Include, upskill, innovate. Organisation for Economic Co-operation and Development. Retrieved at: https://www.oecd.org/digital/bridging-the-digital-gender-divide.pdf.
- Pham X., Stack M. (2017). How data analytics is transforming agriculture. Business Horizons, 61(1): 125-133. DOI: https://doi.org/10.1016/j.bushor.2017.09.011.
- Poppe K.J., Wolfert S., Verdouw C., Verwaart T. (2013). Information and Communication Technology as a Driver for Change in Agri-food Chains. EuroChoices, 12(1): 60-65. DOI: https://doi.org/10.1111/euch.2013.12.issue-1.
- Porter M.E., Heppelmann J.E. (2014). How Smart, Connected Products Are Transforming Competition. Harvard Business Review, 92(11): 64-88.
- Pulina G., Milán M., Lavín M., Theodoridis A., Morin E., Capote J., Thomas D., Francesconi A., Caja G. (2018). Invited review: Current production trends, farm structures, and economics of the dairy sheep and goat sectors. Journal of Dairy Science, 101(8): 6715-6729. DOI: https://doi.org/10.3168/jds.2017-14015.
- Rijswijk K., Klerkx L., Bacco F.M., Bartolini F., Bulten E., Debruyne L., Dessein J., Scotti I., Brunori G. (2021). Digital transformation of agriculture and rural areas: A socio-cyber-physical system framework to support responsibilisation. Journal of Rural Studies, 85: 79-90. DOI: https://doi.org/10.1016/j.jrurstud.2021.05.003.
- Rolandi S., Brunori G., Bacco M., Scotti I. (2021). The Digitalization of Agriculture and Rural Areas: Towards a Taxonomy of the Impacts. Sustainability, 13(9), 5172. DOI: https://doi.org/10.3390/su13095172.
- Rose D.C., Chilvers J. (2018). Agriculture 4.0: Broadening Responsible Innovation in an Era of Smart Farming. Frontiers in Sustainable Food Systems. 2, 87. DOI: https://doi.org/10.3389/fsufs.2018.00087
- Royakkers L., Timmer J., Kool L., Van Est R. (2018). Societal and ethical issues of digitisation. Ethics and Information Technology, 20: 127-142. DOI: https://doi.org/10.1007/s10676-018-9452-x.
- RRN-ISMEA (2018). La competitività della filiera ovina in Italia. Rete Rurale Nazionale RRN e Istituto di Servizi per il Mercato Agricolo Alimentare ISMEA. Roma, Italia.
- Sacco P., Gargano E.R., Cornella A. (2021). Sustainable Digitalization: A Systematic Literature Review to Identify How to Make Digitalization More Sustainable. In: Borgianni Y., Brad S., Cavallucci D., Livotov P. (eds), Creative Solutions for a Sustainable Development. TFC 2021. IFIP Advances in Information and Communication Technology, vol 635. Springer, Cham. DOI: https://doi.org/10.1007/978-3-030-86614-3_2.
- Saldana J. (2013). The Coding Manual for Qualitative Researchers (2nd ed.). London: Sage.
- Shepherd M., Turner J.A., Small B., Wheeler D. (2020). Priorities for science to overcome hurdles thwarting the full promise of the ‘digital agriculture’ revolution. Journal of the Science of Food and Agriculture, 100(14): 5083-5092. DOI: https://doi.org/10.1002/jsfa.9346.
- Sørensen C.G., Fountas S., Nash E., Pesonen L., Bochtis D., Pedersen S.M., Basso B., Blackmore S.B. (2010). Conceptual model of a future farm management information system. Computers and Electronics in Agriculture, 72(1): 37-47. DOI: https://doi.org/10.1016/j.compag.2010.02.003.
- Tilson D., Lyytinen K., Sorensen C. (2010). Research Commentary - Digital Infrastructures: The Missing Is Research Agenda. Information Systems Research, 21: 748-759. https://doi.org/10.1287/isre.1100.0318.
- Torky M., Hassanein A.E. (2020). Integrating blockchain and the internet of things in precision agriculture: Analysis, opportunities, and challenges. Computers and Electronics in Agriculture, 178, 105476. DOI: https://doi.org/10.1016/j.compag.2020.105476.
- Trendov N.M., Varas S., Zeng M. (2019). Digital Technologies in Agriculture and Rural Areas - Status Report. Food and Agricultural Organization of the United Nations, Rome.
- Vaismoradi M., Turunen H., Bondas T. (2013). Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study. Nursing & Health Sciences, 15(3): 398-405. DOI: https://doi.org/10.1111/nhs.12048.
- Van der Burg S., Bogaardt M., Wolfert S. (2019). Ethics of smart farming: Current questions and directions for responsible innovation towards the future. NJAS - Wageningen Journal of Life Sciences, 90-91, 100289. DOI: https://doi.org/10.1016/j.njas.2019.01.001.
- Vemireddy V., Choudhary A. (2021). A systematic review of labor-saving technologies: Implications for women in agriculture. Global Food Security, 29, 100541. DOI: https://doi.org/10.1016/j.gfs.2021.100541.
- Wang D., Xiang Z., Fesenmaier D.R. (2016). Smartphone Use in Everyday Life and Travel. Journal of Travel Research, 55(1): 52-63. DOI: https://doi.org/10.1177/0047287514535847.
- Wathes C., Kristensen H., Aerts J., Berckmans D. (2008). Is precision livestock farming an engineer’s daydream or nightmare, an animal’s friend or foe, and a farmer’s panacea or pitfall? Computers and Electronics in Agriculture, 64(1): 2-10. DOI: https://doi.org/10.1016/j.compag.2008.05.005.
- Williamson O.E. (1975). Markets and hierarchies: analysis and antitrust implications: a study in the economics of internal organization. University of Illinois at Urbana-Champaign’s Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
- Wolfert S., Ge L., Verdouw C., Bogaardt M.J. (2017). Big Data in Smart Farming - A review. Agricultural Systems, 153: 69-80. DOI: https://doi.org/10.1016/j.agsy.2017.01.023.
- Wolfert S., Goense D., Sorensen C.A.G. (2014). A future internet collaboration platform for safe and healthy food from farm to fork. In 2014 Annual SRII Global Conference (pp. 266-273). (Annual SRII Global Conference, SRII). IEEE Xplore. DOI: https://doi.org/10.1109/SRII.2014.47.
- Yiannas F. (2018). A New Era of Food Transparency Powered by Blockchain. Innovations: Technology, Governance, Globalization, 12(1-2): 46-56. DOI: https://doi.org/10.1162/inov_a_00266.
- Zhao G., Liu S., Lopez C., Lu H., Elgueta S., Chen H., Boshkoska B.M. (2019). Blockchain technology in agri-food value chain management: A synthesis of applications, challenges and future research directions. Computers in Industry, 109: 83-99. DOI: https://doi.org/10.1016/j.compind.2019.04.002.