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USDA study says broadband needed for rural economy

August 19, 2009

Rural communities with greater broadband internet access have greater economic growth than areas with less access, according to a new study released by the U.S. Department of Agriculture.

The study, Broadband Internet's Value for Rural America, found that rural counties with early adoption of broadband internet experienced higher employment growth and higher non-farm private earnings than counties with a shorter history of broadband availability.

There is still a big gap between urban and rural broadband use. Only 70 percent of rural households with in-home internet access had a broadband connection in 2007, compared with 84 percent of urban households, USDA reported.

Benefits of increasing broadband internet availability in rural areas include better access to education and training through online course offerings, improved access to medical treatment via telemedicine and telehealth and greater opportunity for jobs in the service sector, which is especially conducive for broadband applications.

Broadband allows rural areas to compete for low-and high-end service jobs, from call centers to software development. The farm sector is increasingly comprised of farm businesses that buy inputs and make sales online, the study found.

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