This is just not true, or, at least, it's only true where inefficient farming practises are propped up by subsidies and protectionism.
A modern farm is a hot-bed of innovation and my initial thoughts about FarmLog is that they're far far too late to the game. This was already discussed at http://news.ycombinator.com/item?id=5118984 but I'll duplicate my comment here:
"So, the problem with the SaaS model is that selling to farmers is a lot like selling to a demanding enterprise customer. They know what they want, they have specific requirements and the benefits of a well-matched solution will pay for itself. That isn't, generally, where you want to be if you're looking to scale out a SaaS platform."
You're saying they are tech savvy, but not internet savvy. If you are right (and I disagree that they're 'not internet savvy') then you've identified an opportunity, not a blocker.
I know of multiple groups (usually extended families) that have microwave radio links between their farms. They use this to monitor each-other's grain bins, crops, and security cameras. Not to mention WiFi To The Tractor for monitoring, IM, etc. There's no cell coverage so they find a way to get connectivity. I'd call that pretty internet tech savvy.
This is a large enough market that there's a company that essentially rebrands Ubiquiti radios, marks them up 100%, and markets them through farm magazines. I suppose in a way that's arbitrage on ignorance BUT it shows that there's a need.
The biggest problem with this startup is that they are going to run into farmers who electronically sign their contracts on company websites that already have other value added services to attract the farmers in the first place. These companies also have local elevators and sales reps who sit in the cafe and have coffee with the farmers or visit them in their fields. Many are staffed by people who have done farm work (hired hand, kid not taking over for the parents).
I would, however, suggest that farmers tend to not care about implementations. The fact that FarmLogs uses the internet is irrelevant. As long as it solves the problem, whatever dependencies come along with that solution are just a fact of doing business.
I've worked with a lot of farmers on cutting edge R&D tech, in their experience the internet is just another point of failure that's more than likely to "down" at exactly the time you need it most. It follows that relying on anything that relies on internet access is lunacy, the same attitude that results in farms having on site power generation, on site water tanks, on site fuel & gas tanks, etc.
Now, a system that functions standalone and can get by with occasional internet access ... now you're talking.
That experience and my occasional trips to the Tulare farm show make me think farmers are generally pretty able to embrace new technology.
The one issue I can think of is that internet access in rural areas can really suck.