US software company Bushel, which provides digital tools for the agricultural supply chain, has released a special report based on its 2024 State of the Farm survey data, highlighting significant changes in payment trends within agriculture.
The report reveals a notable 12% drop in paper check payments to farmers over the past year, reflecting a broader industry shift towards digital solutions.
Despite this shift, over 70% of grain settlements are still processed via paper checks, even as the US Postal Service warns of increasing fraud risks.
However, the use of digital payment platforms has surged, with adoption rates climbing from 39% last year to 76% this year.
Younger farmers driving adoption
The report identifies key demographics driving this change, including younger farmers and those with aggressive growth plans. Nearly 50% of respondents are now using or planning to use 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.”
To support agribusinesses in navigating this digital shift, the report includes actionable steps industry leaders can take to enhance payment security and streamline operations.
Key recommendations include implementing digital payment platforms, offering flexible payment options to farmers, and using integrated tools to automate payment reconciliation.
Takeaways:
- Price of equipment, profitability, and inflation are the top three concerns reported by farmers
- ‘Increasing operational efficiencies,’ ‘improving marketing strategy,’ and ‘tracking/improving field performance’ are the highest-rated management opportunities
- Weather, accounting, and financial record-keeping are the highest-ranked activities for which farmers use a farm-related app or software
- Farmers under 40 view software’s value beyond just convenience - with an even split between helping them manage costs and increasing revenue
The report shows a steady rise in the use of digital payment processors. Last year 61% of respondents selected ‘none of the above’ when asked if they use various popular digital payment platforms. This year’s showed 24%.
Sustainability perceptions
More farmers said they participated in carbon programme than in the previous year.
The 2024 report shows a nearly 10% increase from last year’s survey responses asking about carbon program participation. Younger farmers are much more likely to participate in these types of programmes with 50% of the 18-40 age group reporting participating in some kind of payment-based carbon programme.
Uncertainty and lack of information were key barriers for more than one-third of those not participating in a carbon programme.
Nutrient management is the most widely adopted practice by farms (57%) and more than 50% of larger farms report using no-till on some or all of their fields.
Cover crops are more popular with younger farmers with a little over 40% of farmers ages 18-40 reporting that they use cover crops as a farming practice.
Costs still a concern for younger tech adopters
The future of the marketplace looks buoyant. 50% of young and high-growth respondents say they are “likely” or “very likely” to submit offers or sell grain via app/website, compared to 33% of overall respondents.
What are common reasons for not adopting a potential farm management app or software? Among large-scale farms there is more emphasis on ‘unclear benefits’ and ‘privacy concerns.’ Cost and usability are more a more significant among smaller farms.
“Too costly” is a greater barrier for young producers.
