Bayer launches Barter+ to expand farmers' purchasing power under a new business model

Date:05-18-2023

Bayer will start using data and digital tools to make its barter operations viable, in line with its strategy to become an enabler of digital transformation in the field. While still in the pre-commercial phase, the company launched Barter+ powered by FieldView, a business model that aims to customize transactions made through this sales modality, according to the productivity of each farmer.

The project's pilot began in 2022 and was only available to a select group of customers who met certain prerequisites, such as being a FieldView Plus customer. "The focus of Barter+ powered by FieldView was the 22/23 crop and, for this year, it has become a company product targeting the 23/24 crop’s barter operations, keeping us in line with our mission to reach an ever-increasing number of rural producers, and offering solutions that facilitate and optimize day-to-day life in the field," said Carlos Branduliz (Head of Commodities and Customer Finance at Bayer's Agricultural Division).

Barter operations have gained significance in the Brazilian market, especially during periods of high interest rates and credit restrictions. It is a sales method between rural producers and agricultural input companies in which payments are made differently than conventional methods, with an agreement made before the harvest in which the producer acquires products and pays with the production of their current harvest in the subsequent harvest.

For the operations to be formalized, the producer delivers a certain quantity of cultivated products as a form of payment to be registered in the Rural Product Certificate (CPR), one of the documents requested for the transaction via barter. Calculating this amount is traditionally based on the productivity pf the relevant region obtained from averages calculated by the National Supply Company (Conab). With Barter+, the calculation is no longer based on averages and is based on the farmer's individual production data, through the productivity history recorded on the Climate FieldView platform.

According to Branduliz, carrying out a standard calculation for a group of producers places productions from different technological levels on the same level. ″That is when we felt the need to look at the producer in a customized way, so we could demonstrate their real level of productivity and, at the same time, show the benefits of adhering to the use of digital technologies, such as Climate FieldView,″ he said.

He added that, as as industry leader, Bayer also aims to be a player in the process of field digitizing, supporting farmers on their journey from start to finish. The program, which is still in the pre-commercial phase, is another step forward in the company's digital transformation strategy and new business models, which proves the company’s commitment to becoming a digital facilitator for producers rural.

With some initial tests already carried out on soybean, corn and cotton crops, it was already possible to notice its efficiency and precision during the first negotiations carried out in Mato Grosso and Bahia. Through data obtained with FieldView, it was possible to verify that a farm's production was superior to official CONAB standard estimates, resulting in a rise in the producer's purchasing power.

"Digital transformation is one of Bayer's strategic pillars and allows us to serve customers in an increasingly personalized way, improving the way we support them in solving problems and improving the efficiency of our own operations," said Branduliz. 

″The Barter+ Powered by Fieldview is another step enabling Bayer to generate value, improve the experience of rural producers and utilize digital data as an enabler of new business models,″ he added.

In addition to already starting data collection and processing through the Climate FieldView platform, interested parties will be able to seek more information from Bayer representatives in their region.