Does the usage of online agricultural information reduce agrochemical expenses in China?

Motivated by growing concerns about excessive agrochemical use and the resulting environmental pollution in China, this study explores the importance of online agricultural information for chemical fertilizer and pesticide use decisions among grain farmers. In particular, we focus on the functional agricultural information used for productive purposes for smallholders. Based on a survey dataset of 1,833 family farms across five Chinese provinces, we employ a propensity score matching (PSM) approach to estimate treatment effects of online agricultural information. The results reveal that online acquisition of agricultural information does not reduce the expenses of chemical fertilizers and pesticides in our sample; rather, the opposite is true. The use of online agricultural information significantly increased agrochemical expenses, particularly among smallholders. Within our sample region, the limited evolution of online information content and the inherent challenges faced by smallholder farmers are the major barriers to the beneficial effects of online agricultural information in reducing agrochemical use. Our findings emphasize the need for targeted interventions and educational efforts to bridge the knowledge gaps of smallholders. Furthermore, there is a need to raise awareness among information providers to ensure that their recommendations avoid encouraging overdoses of agrochemicals. In addition, enhancing farmers’ digital literacy will be a future task of development policy.