Penn State Extension explored whether business blockchain technology could be practically applied in agriculture to improve traceability, data control, automation, and trust across the food value chain.
Sheep in the hay; Credit: Jim Ladlee
Authors: James Ladlee, Terry Harrison, and Cristy Schmidt (Penn State University)
Partners:
- Henry Ines, CEO, Chainparency
- Daniel Dotterer, Owner, Daniel Dotterer Farms, LLC
What is the issue?
Penn State Extension explored whether business blockchain technology could be practically applied in agriculture to improve traceability, data control, automation, and trust across the food value chain. While blockchain is frequently discussed as a transformative digital tool in agricultural and food systems, the Thriving Ag effort focused on moving beyond conceptual and theoretical explanations to understand how the technology performs in real-world agricultural settings, particularly for small and mid-sized farms. This initiative sought to evaluate blockchain through applied research and on-farm testing to better understand where it adds value and where limitations exist, particularly for small and mid-sized farms.
A key challenge addressed by this work was the gap between technological capability and operational readiness. While blockchain platforms have transitioned from their roots with cryptocurrency to business logistics and become far more affordable, farms vary in their ability to support automation, connectivity, and system integration. Understanding these constraints is crucial for providing responsible guidance and facilitating the effective adoption of technology.
What did we find and why does it matter?
Blockchain is now widely available for agricultural uses like traceability, source verification, smart contracts, and data security. Differentiating blockchain for business from cryptocurrency also helps shift attention to blockchain's practical business logistics and data applications. While the same blockchain principles undergird both digital currency and business applications, the business use case offers far more control, certainty, transparency, and elimination of unforeseen volatility.
Survey findings from Pennsylvania wholesale growers revealed mixed readiness for technology adoption. Many producers continue to rely on informal sales agreements and face barriers related to pricing, labor, delivery costs, volume requirements, and regulatory compliance. Despite these challenges, more than half of the respondents expressed interest in learning more about blockchain, particularly in areas where it could improve traceability, information sharing, or market access. Figures 1 and 2 illustrate some of the survey results.
The applied on-farm work clearly demonstrated that readiness for automation, more than blockchain functionality, was a serious limiting factor for technology deployment. Blockchain costs have declined, usability has improved, and relevant business applications, such as traceability, smart contracts, and automated settlement, are now technically viable and cost-effective to implement.
The most significant constraints lie in automation readiness, including lack of access to reliable and cost-effective high-speed internet, legacy building design, and a general lack of equipment that can easily be integrated across related digital platforms. Environmental factors, like dust, water/moisture, high winds, temperature extremes, and wildlife, further challenge automation setups.
On livestock farms, livestock behavior also plays a critical role, as we found in an on-farm pilot at a commercial sheep operation. Adult ewes are far easier to train than young lambs. The safety of the younger lambs was also a primary concern, especially when large and small sheep are housed together shortly after lambing. Sheep are known to chew on exposed wiring, which proved to be another challenge in our pilot study. Finally, the team learned that automated vision systems to track sheep proved overly sensitive to certain light conditions and specific animal coloration or color patterns.
Knowledge generated through this work has led to several early outcomes, including the development of two forthcoming Extension publications focused on blockchain basics for agriculture and automation readiness for farmers. The project also strengthened dialogue with the Pennsylvania Department of Agriculture, growers, wholesalers, and Chainparency, our blockchain partner company, regarding potential applications for live animal and manure-derived bioproducts traceability, as well as new Food Safety Modernization Act traceability requirements, while developing awareness about key steps to successfully deploy automation and emerging technology on farms.
What did we do?
The effort integrated educational framing with applied research and education. A grower survey conducted between 2021-2022 examined perceptions, barriers, and interest in blockchain among Pennsylvania growers. In parallel, an on-farm pilot at a commercial sheep operation tested blockchain-enabled data flow and automation for animal health monitoring and traceability. Broadband connectivity, RFID systems, and data collection tools were deployed and evaluated under real operating conditions.
Figure 1: Helpful Improvements In Your Business
Figure 2: Barriers to Markets
Penn State Extension also delivered a national webinar as part of the Harvesting Innovation series to share foundational knowledge and applied insights related to blockchain in agriculture. The webinar attracted 191 registrants from 32 states, the District of Columbia, and two countries, appearing to confirm broad interest in digital innovation. The session facilitated active engagement and follow-up discussions among farmers, educators, researchers, and industry partners.
Publications completed for this work
McLaughlin, A. (2023, March 30). The future of farming: Harnessing emerging technologies for a new digital age. Penn State Ag Science Magazine.
Penn State Extension. (n.d.). Helping build farm success with tech. Penn State Extension.
