According to the USDA, of every $1 spent by consumers on the agricultural value chain, only $.085 goes to the farmer. This is an issue that Producers Token is looking to change.
Helping lead the way is Producers Token Co-Founder and Executive Director, Keith Agoada, a graduate of the Wisconsin School of Business.
Decentralizing the agricultural value chain
By uniting producers on a smart value chain, and providing them with free digital technology and marketing tools Producers Token are digitizing, tokenizing and decentralizing the agricultural value chain.
Recently Crypto Disrupt had the chance to talk to Keith about his blockchain startup, and his plans moving forward.
CD: Can you tell us a little about your project, and what prompted you to get involved with blockchain technology?
KA: Producers Token has a vision to empower agriculture producers and end consumers. Our team is dedicated to supporting farmers and creating innovative systems to bring more profitability and support back to the source of production. We are disrupting the multi-trillion dollar agriculture value chain by integrating technologies around distributed ledgers (i.e., blockchain), smart contracts, cryptocurrency, and traceability into smartphone and web app formats to create greater levels of efficiency, transparency, and direct transaction.
Intermediaries thrive on communication, marketing, and finance barriers that exist between producers and the upstream supply chain to maximize profitability. Our first digital platform, Producers Market, is a business to business trading network where our agriculture producer members are able to connect directly with domestic and international wholesale buyers using our digital marketing funnel system. We support the platform transactions with distributed ledger (blockchain) technologies. Smart contracts and cryptocurrencies are being integrated to minimize transactional costs.
The smart value chain
CD: You’ve mentioned the smart value chain, can you explain a bit more about what this is and how it benefits what you’re doing?
KA: The smart value chain is our network of sales channels and the wholesale buyers within each channel. It is being developed for producer members to match their outputs with a diversity of buyers that meet producer requirements to increase profits and stability. Leveraging producer networks across product lines permits members to minimize waste streams and maximize their pricing on A, B and C grade outputs.
The “Smart Value Chain” is built on distributed ledger technologies (i.e., blockchain) which are being developed into easy-to-use smartphone and web app formats for agriculture producers to harvest, promote, and sell their outputs to a network of vetted buyers. The building of our smart value chain and the accompanying contextual database of producers and buyers is designed to consistently replace intermediaries with Producers-owned platforms or transform the role of the intermediary from a profit-maximizing center, to a transparent, cost-plus service provider to a united network of producers. We’ve attached two diagrams of our Smart Value Chain concept.
CD: Can you give us some details on FarmToken?
KA: Our second platform currently in development is FarmToken (to be launched in 2019.)
FarmToken is a platform for the tokenization of assets on the distributed ledger. It provides global crypto investors easy access to vetted agricultural and natural resource assets. Producers Token is building the leading platform for the tokenization and exchange of agricultural and natural resource assets.
Producers Token works with its Producers Market members to solicit and vet tokenization opportunities. FarmToken is currently focused on three categories of tokenized assets:
1. Tokenization of a farm and/or facility asset that is already in operation.
2. Tokenization of a new or expanding farm and/or facility development not currently in operation.
3. Tokenization of a natural resource asset for regeneration and/or conservation.
Once producer opportunities are selected, Producers Market works with the producer to determine the economic valuation and tokenholder dividend structure (as applicable) of the asset.
The asset is then tokenized into an exchangeable currency on the distributed ledger using smart contracts. Global investors will be able to purchase tokenized assets as FarmTokens and other marketed tokens on the FarmToken Exchange.
Asset-backed token investors can then sell or exchange their tokens exclusively on the FarmToken exchange.
There will be multiple token pools, and token portfolio projects on the FarmToken tokenized asset platform under two domain categories: FarmToken.io (liquidity for existing agriculture projects and financing for new developments) and ResourceToken.io (conservation and regeneration of natural resource assets.)
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.