Key Takeaways:
- Bushel’s 2024 State of the Farm Special Report highlights a 12% decrease in paper check payments to farmers over the past year.
- Digital payment platform adoption has surged from 39% to 76% in the past year, driven by younger farmers and those with growth-focused operations.
- Despite the shift, over 70% of grain settlements are still processed via paper checks, despite rising concerns about fraud risks.
- Bushel aims to simplify the transition to digital payments for farmers, lenders, and agribusinesses, improving efficiency and security.
Bushel, a leading software technology company dedicated to digital tools for the agricultural supply chain, has released a special report based on its 2024 State of the Farm survey. The report highlights significant changes in payment trends within the agricultural industry, revealing a clear shift from traditional paper check payments to digital solutions.
Key Findings on Digital Payment Trends
The report identifies a 12% decline in the use of paper check payments to farmers over the past year, as the industry increasingly embraces digital payment platforms. Despite this progress, over 70% of grain settlements are still processed using paper checks, even as the USPS warns of rising fraud risks associated with physical check transactions.
However, the adoption of digital payment platforms has seen a substantial rise, with 76% of farmers now using or planning to use these technologies, up from 39% last year. The report points to younger farmers and those with aggressive growth plans as the primary drivers behind this shift, with nearly 50% of these respondents adopting digital payment options.
“Farmers are embracing technology to simplify their operations and enhance financial security,” said Jake Joraanstad, CEO of Bushel. “The rise in digital payment adoption is promising, but there’s still a long way to go to reduce reliance on paper checks. Our goal at Bushel is to provide tools that make these transitions easier and more beneficial for everyone involved, including the farmer, lenders, and agribusinesses.”
Actionable Steps for Agribusinesses
To help agribusinesses navigate this shift toward digital payments, the report provides actionable recommendations for enhancing payment security and streamlining operations. Key steps include:
- Implementing digital payment platforms to enhance efficiency and security.
- Offering flexible payment options to farmers to accommodate diverse operational needs.
- Using integrated tools to automate payment reconciliation, simplifying the financial process for both farmers and agribusinesses.
As the agricultural industry continues to transition toward digital solutions, Bushel remains committed to providing the tools and support needed to ensure a seamless and secure shift away from traditional payment methods.
Read the complete report here.
Bushel Latest News
Annual State of the Farm Report (2024/02/29)
Bushel’s State of the Farm Report provides insights into the evolving landscape of farming in the US. The survey, based on one of the largest farmer surveys, reveals a trend towards aggressive technology adoption among younger and growth-oriented farmers. Economic concerns include equipment prices, profitability, and inflation impact. Management opportunities include increasing operational efficiencies, improving marketing strategies, and enhancing field performance tracking. Digital payments and sustainability are also highlighted, with younger farmers expressing growing interest in sustainability and modern payment solutions. The report also highlights the strategic approach to grain marketing, with local grain buyers emerging as pivotal resources. Technology adoption is also highlighted, with farmers increasingly using digital platforms for grain transactions. Payment trends are shifting towards ACH transactions and digital wallets, with sustainability practices gaining traction among the younger demographic. Younger farmers prioritize fast payments and marketing programs over traditional relationship-based factors.
Secures $26 Million Funding (2023/08/23)
Bushel closed a $26 million funding round, marking a significant milestone in its journey to revolutionize the agriculture industry. The round was led by The Banc Funds Company and included prominent investors like 50 South Capital, The Andersons, Inc., Cargill, Germin8, Lewis & Clark AgriFood, The Scoular Company, and Conti Ventures. Bushel’s core mission is to empower farmers and agribusinesses by digitizing and streamlining information, transactions, and payments. The company’s initiatives include accelerating digital payment adoption, introducing Bushel Farm, a next-generation farm management software, and introducing Bushel Wallet, a digital payments network. Bushel’s trajectory includes next-generation farm management, enhanced offer management, expansion of the customer base, and commitment to security. With the recent funding injection, Bushel is well-equipped to maximize growth and expand its product offerings. The company’s commitment to serving the entire supply chain positions it as a central player in the agricultural digital revolution.
Introduces Groundbreaking Automated Grain Contract Entry for Farm Management Software (2023/07/23)
Bushel has introduced automated grain contract entry to its Bushel Farm management software, aiming to improve the efficiency and transparency of the agricultural supply chain for farmers and grain businesses. The feature, which will be accessible to farmers with over 2,600 grain facilities, will reduce manual data entry, provide marketing insights, and provide a comprehensive financial overview. Farmers can link their Bushel Farm account to their accounts with grain buyers in the Bushel Network, allowing them to spend less time manually entering data and more time in the field. The automated feature also has the potential to improve grain origination and strengthen farmer relationships, encouraging farmers to conduct business with buyers in the Bushel Network. The integration of tools reduces paperwork, enhances communication, and allows for quicker decision-making.
Next-Gen Farm Management Software with Grain Marketing Insights (2023/03/03)
Bushel Inc. has launched Bushel Farm, a farm management software designed to provide farmers and agribusiness partners with valuable grain marketing insights while reducing the burden of manual data entry. This software is a game-changer in the agriculture industry as it offers mobile and desktop experiences, maintaining its easy-to-use design while providing a robust feature set. With Bushel Farm, farmers can import their grain sales data into the software by mid-2023 if they do business with any of the thousands of grain facilities that use Bushel solutions.
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