Does ICT adoption influences agricultural efficiency of Chinese farmers? Mechanism analysis based on agricultural insurance and credit

Abstract Improving total factor productivity (TFP) in agriculture is a crucial pathway to sustaining agricultural output growth in developing countries. The rapid development of information and communication technologies (ICT) has created new opportunities for enhancing agricultural efficiency. Based on survey data from 5,048 farm households in Jiangsu Province collected in 2020 and 2021, this study employs a Tobit model to empirically examine the impact of ICT adoption on agricultural efficiency. The results demonstrate that: (1) ICT adoption exerts a significant positive influence on the TFP of farm households; (2) ICT adoption stimulates land input, increases yield per unit area, and promotes total output, economic output, and labor productivity; (3) The mechanism analysis further reveals that ICT improves farmers’ understanding of credit and encourages participation in agricultural insurance, which strengthens their ability to manage risk and enhances production efficiency; and (4) Agricultural technology training and intensive farming practices both contribute significantly to higher levels of agricultural production efficiency. These findings suggest that expanding the use and application of ICT is vital for improving agricultural efficiency and advancing the development of the agricultural economy in the digital era.