E-Commerce

Internet technology and electronic retail business-to-customer or business-to-business (e­commerce) is still developing. As the technology and business models for commerce on the internet become more sophisticated, the internet is evolving into a viable marketing and sales opportunity for agricultural products, despite some early retrenchment.

While the long term outlook for the future of e-commerce in agriculture remains positive, there is still uncertainty about the ability of the internet to consistently boost farm profits. Also, there is some reluctance among farmers and farm businesses to forsake tested methods of doing business, and embrace new technology that has yet to withstand the test of time. Specific concerns are internet security (privacy and financial), sharing price information, and investment of time and resources into the technology and training of employees. If these obstacles can be overcome, there is a tremendous opportunity for e-commerce to help small- and medium-sized agricultural businesses develop new products and markets, interact more quickly and efficiently with suppliers and customers, and improve productivity by increasing efficiency and reducing transaction costs and paperwork. These businesses can also take advantage of the technology by interacting with customers, suppliers, and the public, and for external support functions such as personnel services and employee training.

NASDA believes there needs to be structural and ‘social’ integrity for consumers and businesses to use the internet and wireless communication as a business tool. To this end, NASDA supports legislation that will protect the privacy of consumers who use the internet and wireless communication. The Federal Trade Commission should prescribe regulations to protect the privacy of personal information collected from and about individuals on the internet and to give individuals more control over their personal information.

NASDA suggests that Congress make it unlawful for a commercial website operator to collect personal information online from a website user unless the operator provides certain assurances, including notification of the information’s use and opportunity to limit the use of the information for marketing purposes or disclosure to third parties. To assist businesses, NASDA also recommends that the National Institute of Standards and Technology (NIST) focus on assisting agriculture to successfully integrate and utilize electronic commerce technologies and business practices. Further, NIST should be authorized to identify and assess critical enterprise integration standards and implementation activities for these businesses.