Blockchain‐Based Smart Contracts in US Specialty Crop Marketing: Grower Preferences and Adoption Potential

ABSTRACT

Using survey and discrete choice experiment data, we examined US specialty crop growers' preferences for marketing contract attributes in the context of emerging blockchain‐based technologies and expanding traceability initiatives. Results show that farmers preferred traditional written contracts but might be willing to accept digital blockchain‐based smart contracts if offered a price premium. Producers without prior experience with cryptocurrencies required a substantial premium to accept digital currency as payment instead of cash, and even those with experience demanded a higher price. However, if the digital currency was a Central Bank Digital Currency backed by the US Federal Reserve, farmers indicated they would be more willing to accept it. Farmers with traceability systems were indifferent to traceability lot code requirements, whereas those without such systems would require additional compensation. Growers of certified‑organic, sustainably grown, or naturally grown crops valued digital contracts and traceability requirements positively, likely because these tools help preserve product identity in differentiated supply chains. Farmers who typically receive fast payment required substantial compensation to accept delayed payment compared to those who already experience delays. As new contracting arrangements emerge, our findings provide insight into which contract attributes may encourage or discourage participation and can help inform the design of contracts that align with grower preferences while supporting technologies that may improve supply chain transparency and efficiency.