Bushel, a software technology company focused on digital solutions for the agricultural supply chain, has released a new report highlighting a significant trend in the way payments are processed within the agriculture industry. According to the 2024 State of the Farm Special Report: Payments in Agriculture, there has been a notable decrease in the use of paper checks, with more farmers opting for digital payment platforms.
The report reveals that while over 70% of grain settlements are still processed through paper checks, this represents a 12% decrease compared to the previous year. The adoption of digital payment options has surged, with 76% of farmers now using digital payment methods—up from just 39% in 2023. The shift is being driven primarily by younger farmers and those with more aggressive growth strategies, nearly half of whom reported using or planning to use digital payment solutions.
“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.”
Fraud concerns and changing preferences
The ongoing shift towards digital payments is occurring as the U.S. Postal Service (USPS) has issued warnings about increasing fraud risks associated with paper checks. The security concerns, along with the convenience offered by digital platforms, have contributed to the uptick in digital adoption. Bushel’s findings show that younger farmers are more likely to adopt new payment methods, signaling a generational change that could shape future payment preferences across the industry.
Recommendations for agribusinesses
To support agribusinesses during this transition, the report outlines several actionable steps to enhance payment security and streamline operations. These include:
- Implementing digital payment platforms: Offering secure and convenient digital options to reduce the risks associated with paper checks.
- Providing flexible payment options: Allowing farmers to choose between traditional and digital methods during the transition period.
- Automating payment reconciliation: Using integrated digital tools to save time and reduce errors in financial record-keeping.
The report also highlights the broader implications of this shift, noting that increased adoption of digital payment methods could significantly reduce administrative burdens and improve cash flow for farmers and agribusinesses alike.
Looking ahead: A digital future
While the trend towards digital payments is accelerating, the majority of grain settlements are still processed via traditional means. However, industry leaders are optimistic that with continued education and the development of user-friendly tools, the reliance on paper checks will decline even further.
“Digital payments represent the future of financial transactions in agriculture, offering greater efficiency and security,” added Joraanstad. “We’re committed to helping the industry embrace these changes and improve the payment experience for everyone.”
The full report, 2024 State of the Farm Special Report: Payments in Agriculture, is available for download on Bushel’s website at bushelwallet.com/sotf-payments.
With digital payments on the rise, Bushel’s findings underscore the ongoing transformation within the agricultural sector and the growing need for secure, modern financial solutions.
