New online payment system will unlock value for UK farmers
Staff Writer |
FarmPay, a farmer-to-farmer payment service launched last week will not only be the first electronic payment system specifically developed for farmers who are trading online, but has longer-term aspirations to unlock more value from the supply chain and support new entrants.
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Launched by Hectare Agritech, the company behind online trading platforms SellMyLivestock and Graindex, FarmPay guarantees funds by providing an ‘escrow’-type account which holds transaction monies securely until the deal is completed successfully.
Hectare has ambitious plans for its new service, which is designed to boost farmer-to-farmer livestock trading. Longer term goals are to use improved data to recoup millions of pounds of value farmers are currently losing from the supply chain.
As well as this, the service will support new entrants to farming and those wishing to expand by providing a unique livestock leasing facility.
Speaking at the launch of the service, Hectare founder Jamie McInnes explained that online livestock trading had seen considerable growth in the four years since
SellMyLivestock was launched. However, some buyers remained cautious about trading direct with farmers they didn’t know.
“We now have 30,000 farms registered on SellMyLivestock and its sister cereal-trading site Graindex. Together these farm businesses listed almost £40 million of livestock and cereals for sale on the platforms in 2017, up from £13m in 2016,†he explained.
“FarmPay removes an obstacle to those who feel more confident working through third parties rather than trading direct. The buyer’s money is held securely in the holding account until they can see the stock on-farm and finalise the purchase.
Equally, the seller knows the buyer is genuine once their funds have been received into FarmPay.â€
Fellow Hectare director Andrew Loftus explained that FarmPay’s guarantee payment service was just the first step in a bigger plan. ■