Research on World Agricultural Economy

Technology Attributes and Preference Heterogeneity in IoT Adoption among Rice Farmers in IADA Barat Laut Selangor, Malaysia

NUR AZIERA RUSLAN

School of Economics, Finance and Banking, Universiti Utara Malaysia, Kedah 06010, Malaysia;Faculty of Plantation and Agrotechnology, Universiti Teknologi MARA Melaka Branch, Jasin Campus, Melaka 77300, Malaysia

Dr Roslina

School of Economics, Finance and Banking, Universiti Utara Malaysia, Kedah 06010, Malaysia

Dr Rozana

School of Economics, Finance and Banking, Universiti Utara Malaysia, Kedah 06010, Malaysia

DOI: https://doi.org/10.36956/rwae.v7i3.2979

Received: 8 December 2025; Published: 30 June 2026

Abstract

Rice is central to Malaysia’s food security and rural economy, yet stagnant yields and rising import reliance signal an urgent need for productivity-improving upgrading in the sector. This study examined how rice farmers value key attributes of Internet of Things (IoT) technologies and how preferences vary across farm sizes. A choice experiment (CE) was administered to 229 farmers in the Integrated Agricultural Development Area of Barat Laut Selangor (IADA BLS). Five attributes were evaluated, namely yield improvement, real-time data access, technical support, IoT system reliability, and subscription cost. The willingness to pay (WTP) was derived using a random parameters logit (RPL) model. Yield improvement emerged as the strongest driver of choice, indicating that productivity gains remain the primary motivation for WTP for IoT adoption. Farmers were willing to pay up to Malaysian ringgit (RM) 1,657 per hectare for high yield potential, RM 786 for moderate real-time information, RM 500 for advanced technical support, and RM 671 for a reliable no-risk IoT system. Preference heterogeneity was evident, since larger farms placed greater weight on productivity-related features and showed lower sensitivity to subscription costs. In contrast, smaller farms displayed stronger cost constraints. Policies that offer financial incentives, affordable subscription packages, and practical training are essential to encourage wider IoT adoption, improve rice self-sufficiency and support Malaysia’s digital transformation in agriculture.

Keywords: Choice Experiment; Internet of Things; Willingness to Pay; Preference Heterogeneity; Digital Technol‑ ogy; Rice Farming

References