Internet of Things (IoT) technology plays an important role in advancing the transformation of labor-intensive traditional agriculture into data-driven smart farming by providing technological and theoretical support to address the challenges of food shortages caused by rapid population growth, as well as the sustainable development challenges posed by the scarcity of natural resources due to climate warming. IoT smart farming is a multidisciplinary field encompassing agricultural knowledge, communication technologies, automation, artificial intelligence, and computing.

In this study, a novel government-backed agri-food supply chain model (GBASM) is introduced among farmers and agricultural enterprises in their respective market. In the GBASM, the government provides subsidies to each member of the supply chain to encourage them to collaborate on a common economic platform. A game-theoretic perspective is established among farmers and agricultural enterprises to determine whether or not they should participate in this new model for their economic benefits.