Under the “Old Model”, when a crop is sold to a buyer, a two party check is issued to the farmer and his lender. As of right now, there’s no universal tool that alerts or pings the lender to let them know that the crop that they have financed has been sold. This alert is also extremely valuable to crop insurers (who may be positioned to pay out partial settlements on farms that had crop damage, etc.) and landlords who operate on a percentage basis with their renters, for instance. A common practice for landowners is to arrange a 25% payment from the overall yields in their fields. This is still being handled on the honor code today.
With Grainster Accreditation, when the transaction is complete, an escrow agent alerts each of the related parties that the disbursement is being made in accordance with instructions to make the appropriate payments, as applicable, to the farmer’s bank and landowner. Grainster Accreditation also provides the farmer with simple access to a “star score” system that shows how the buyer has performed in the past, similar to what we see with Amazon, eBay and Uber. Additionally, Grainster’s credit department will analyze available financial and credit information about buyers as added protection.
Please contact us if you would like to hear more about the Grainster Ecosphere. We would love to hear from you.
Grainster’s aim is to provide simple, cost effective management of everything needed to transact grain sales between buyers and sellers. Grainster will provide seven principal products which collectively provide an ‘ecosphere’ in which buyers and sellers can safely and confidently conduct business.