Impact of text messages on farmers' adoption of agriculture app and its effect on farm level outcomes

Abstract

Smartphones and Mobile phone applications (MPAs) are increasingly promoted as cost-effective tools to improve agricultural decision-making and farm outcomes in developing countries. However, adoption of such digital technologies remains limited. This study evaluates the behavioral impact of periodic text reminders on adoption of a smartphone-based MPA and assesses the MPA's subsequent effects on farm-level outcomes. We conducted a randomised controlled trial (RCT) with 1006 farmers in rural India, where half the participants received text message nudges encouraging them to use MPA. The reminders significantly increased adoption, as measured by app installation and login activity, though they did not affect the total time spent on MPA. Using an instrumental variable approach, we estimate the causal impact of MPA use on two farm outcomes: prices received for crop output and expenditure on inputs (pesticides and fertilisers). We find that greater engagement with MPA leads to higher output prices and lower input costs, suggesting improvements in market access and input-use efficiency. These results demonstrate how low-cost behavioral interventions, such as SMS nudges, can support diffusion and effective use of digital tools in agriculture. The findings offer actionable insights for policy initiatives aimed at enhancing agriculture productivity and efficiency through behavioural and technological innovations.