Four keys to driving grain origination

Four keys to driving grain origination

As technology adoption by farmers continues to rise, a significant opportunity for agribusinesses is emerging. One simple technology offering can boost grain origination and strengthen relationships with farmers. Bushel’s 2024 State of the Farm Report highlights nearly 65% of surveyed farmers are now willing to submit grain offers or sell grain through digital platforms—an 18% increase from the previous year.

Most younger (under 40) and high-growth farmers lean heavily into technology, with many seeing the dual benefits of managing costs and increasing revenue. The report shows that large-scale farms are more likely to embrace multiple grain marketing practices, including making offers with price targets.

“I tell my farmers – you need to start using the app (to make trade offers). It’s not like old-school marketing. We don’t move 10 cents in a week. We’re moving 30 cents in a day sometimes. You’re missing huge opportunities. You need to use the app – it adds an extra layer of marketing capabilities for you.”

– Jeff Smale of Smale Farms

For agribusinesses, here are 4 keys to increasing origination of grain from farmers:

Enhance Digital Offer Management Systems

Integrate user-friendly digital platforms that allow farmers to easily place, manage, and view offers.
Ensure these platforms are accessible on mobile and desktop devices.

“Kind of funny to say that a lot of guys we’ve never talked to on the phone, are actually submitting offers. So, that’s kind of neat to see: communicating with people that haven’t necessarily called our office before.”

Adam Parker of Gateway FSA

Capitalize on Mobile Adoption

  • With a notable increase in the use of mobile devices, providing a robust mobile app that facilitates grain offers can increase origination.
  • Implement mobile app features that are most sought after by farmers, such as real-time pricing, notifications, and easy access to historical data.

Build Trust through Data Security

  • Emphasize security measures to protect farmer data, which can increase their comfort level in adopting digital solutions.
  • Transparency about data usage and benefits can help mitigate privacy concerns, which are more pronounced among large-scale farms

Optimize for Convenience and Efficiency

  • Focus on streamlining the user experience to make digital tools convenient and efficient.
  • Offer integrations with other farm management tools to create a seamless user experience.

“It seems like when the market is doing good things, it’s at night when we’re not available. With the app, it gives the farmers the options to put in those working orders on their own, on their own time.”

Rick Talbott of TriGen Ag

The shift toward digital platforms in grain origination is not just a trend but a significant movement toward more efficient agricultural practices. By embracing these changes, agribusinesses can enhance their relationships with farmers, streamline operations, and drive profitability. Both agribusinesses and farmers stand to benefit from this digital evolution, making it a win-win scenario for more efficient and effective agricultural commerce.

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