Understanding barriers to agricultural technology adoption: Evidence from U.S. agribusiness firms

This study investigates how economic, environmental, technical, political, and socio-cultural barriers shape innovation outcomes of openness, effort and success among US agribusiness firms. Drawing from perception-based survey data from agribusiness employees, the analysis employs a sequential modeling strategy combining ordered probit and triple hurdle probit estimation, complemented by tests of heterogeneity based on firm size and industry. The results reveal that environmental barriers are the most significant obstacle to innovation across all innovation stages, indicating regulatory and sustainability pressures can stimulate adaptive innovation. Economic barriers exhibit dual effect, reducing openness and effort but positively influencing innovation success once firms commit to adoption. Technical barriers hinder progress in specific contexts, especially for smaller firms and food related enterprises. Findings reveal heterogeneity across subsectors and firm sizes, highlighting that innovation in agribusiness often emerges as a strategic adaptation to constraints. From a policy perspective, interventions such as innovation subsidies, tax incentives for green technology, and inclusive financing mechanisms are essential to enable equitable and sustainable innovation adoption among firms with characteristics similar to those represented in this sample. • Explores barriers to technology adoption in U.S. agribusiness firms through perception-based survey data. • Economic barriers are the most significant obstacle, highlighting adoption costs and expected returns. • Technical barriers limit innovation success, even with sufficient financial resources. • Environmental barriers shape firms' openness and effort toward innovation. • Firms in natural resources, forestry, and fishing show higher innovation effort and success than those in the food industry.