Bridging the rural divide: The impact of broadband grants on US agriculture

Abstract Since 2002, the Community Connect Grants (CCG) Program has provided financial assistance to provide broadband service in rural, economically challenged communities where service does not exist. We employ the event study model to show that a zip code receiving the grant experiences a 9.3 per cent increase in crop productivity after three years. This positive effect is predominantly driven by low-income areas that see a consistently positive increase in crop productivity, ranging from 6.3 to 13.8 per cent. Our findings conclude that policies designed to expand high-speed broadband infrastructure in rural areas can further develop the agricultural sector through gains in productivity.