Bushel has completed a $26 million funding round to continue developing its digital platform that connects farmers and agribusinesses.
The investment will be used to accelerate the digitization of agriculture, streamline processes, and expand services to ag businesses, the Fargo-based software company said in a Tuesday (Aug. 22) press release.
The Bushel Network, which currently serves over 100,000 farmers and encompasses more than 2,600 grain and ag retail locations, will be a key focus of the investment, according to the press release. By leveraging secure mobile and desktop applications, Bushel aims to digitize and streamline information, transactions and payments, thereby improving efficiency within the agricultural industry.
One of the primary initiatives to be undertaken with the funding is the acceleration of digital payments adoption, the release said. Bushel also plans to eliminate manual data entry in their farm management software, Bushel Farm, and create value through integrations and connections within the Bushel Network. Currently, the platform manages account-related data for an estimated 10 billion bushels of farm-originated grain in the United States and Canada annually.
The funding round was led by The Banc Funds, per the release. Christopher Hopkins, Fintech Portfolio Manager at The Banc Funds, expressed confidence in the financial opportunities presented by Bushel’s connectivity with farmers, grain elevators and ag retailers.
Jake Joraanstad, CEO of Bushel, emphasized that the funding will be strategically allocated to maximize growth and success, further enhancing their product offerings and delivering greater value to customers, according to the press release.
Since its previous funding round in April 2021, Bushel has introduced several software products and services for the agricultural industry, the release said. Notable developments include the launch of Bushel Wallet, a digital payments network that facilitates fast and secure payments between agribusinesses and farmers.
Ryan Raguse, president of Bushel, emphasized the company’s dedication to serving the evolving needs of the entire supply chain as agriculture undergoes its digital revolution.
Many American farmers are sending money through Venmo today, yet await paper check payments for their grain, Joraanstad told PYMNTS’ Karen Webster in an interview posted in July 2022.
“It’s almost a $1 trillion industry in the U.S. broadly,” Joraanstad said at the time. “It’s incredible that we’re still 90% checks. In Australia, for example, at least 90% of the payments to farmers, maybe 99%, are electronic and settled in like 15 seconds. We’ve got some work to do here.”