Farmers Business Network (FBN) and agribusiness giant ADM have joined forces to launch a new company, Gradable, aiming to revolutionize the grain supply chain by emphasizing sustainability and regenerative agriculture. The newly formed entity, in which both FBN and ADM hold a 50% stake, seeks to expand the existing Gradable platform both in the United States and globally.
The Gradable platform, initially launched in 2020 by FBN, serves as a comprehensive tool for tracking various aspects of grain production. It monitors environmental data, grain origination, trading, and customer management. More importantly, it helps farmers document their regenerative agriculture practices and outcomes. This data becomes increasingly valuable as consumer demand for sustainably produced food rises and new regulations necessitate detailed environmental reporting.
“To create access to environmental premiums at the size and scale of grain markets, you needed a system where growers and buyers could interact,” says Steele Lorenz, FBN’s newly appointed CEO, in an interview with AgFunderNews. “Gradable, the platform, accomplished that. Gradable, the company, was formed to ensure the platform is capitalized and positioned to meet the next step.”
Currently, over 20,000 farmers across more than 12 million acres in North America use the Gradable platform. Major partners include ADM, POET, and Attebury Grains. Grain buyers leverage Gradable to validate farmers’ sustainability claims by accessing farm-level data on crop production. The platform also offers International Certificate of Competence (ICC) credentials and supports Scope 3 scoring and biodiversity programs.
The regulatory landscape is poised for a significant shift, which Lorenz refers to as a “sea change.” Incoming regulations and new opportunities related to sustainable practices are set to reshape the agrifood industry. For instance, the Inflation Reduction Act in the U.S. introduces programs for sustainable aviation fuel and renewable diesel tax credits, potentially offering substantial benefits to farmers and processors. In Europe, the EU Deforestation Regulation mandates that all products placed on or exported from the European Union must be deforestation-free, requiring detailed documentation and data.
“These policies are large enough and have enough teeth to change grain markets, altering the flow of goods,” says Lorenz. “Building technology at the size and scale of entire markets is exactly what we’re positioned to do.”
At the end of 2023, FBN announced an expanded partnership with ADM to support farmers in transitioning to regenerative agriculture practices. Through this program, ADM customers can submit data to Gradable, which will validate their sustainability practices and calculate corresponding environmental outcomes. Farmers can access this service via the FBN app, linking their ADM account information to manage scale tickets, settlements, and contracts when selling grain. Since its inception, the program has enrolled over 1,500 growers and accounted for more than 1 million acres of farmland.
Lorenz emphasizes the importance of transparency for all Gradable users. “Gradable has only been successful as far as we could ensure growers and processors that their data was secure and that the use of the information was completely transparent,” he notes. “As farmers sign up for programs, they understand what data is being collected, why it’s being collected, and who it is going to explicitly.”
For FBN and ADM, establishing Gradable as an independent company was a natural progression. “While ownership is shared by the two companies, the venture is set up to be independent and to serve the entire industry,” says Lorenz. “We have proven our success so far, and greater independence will allow us to add more customers and expand beyond our current geographic footprint.”
Although the immediate focus is on North America, Lorenz suggests that global expansion is on the horizon. “Our ambitions are to be the global leader, and we need to achieve that quickly. I expect we will soon be discussing our international expansion plans.”
As the agrifood industry navigates new regulatory landscapes and rising consumer demand for sustainable products, Gradable stands poised to play a pivotal role in connecting grain buyers with farmers committed to regenerative practices.