Economic Analysis of Smart Farm Investment Projects

Over the past decade, the government has actively supported smart farm investment projects, and with the implementation of the “Smart Agriculture Act” in 2024, further expansion of support for smart farms is anticipated. Despite the recognized need, there has been limited quantitative post-evaluation of these existing smart farm investment projects. This study employs propensity score matching to quantitatively estimate the impact of smart farm adoption on farm income. The analysis utilizes data from the Agricultural and Fisheries Census, spanning from 2011 to 2022, comparing the income differences between farms that have adopted smart farming technologies and those that have not. Following the estimation of the impact of smart farm adoption on farm income, the study projects future income effects and conducts a benefit-cost analysis, incorporating the government’s budget for smart farming. The findings indicate that the adoption of smart farming has significantly increased the income of farms engaged in horticulture and livestock production. Moreover, the benefit-cost analysis reveals that the accumulated benefits are projected to grow in the future, enhancing the economic viability of smart farming. This study contributes to the assessment of the economic viability of smart farm investment projects and is expected to serve as a valuable reference for the formulation of future smart farm policies.