The agricultural sector worldwide is changing. This is because it is affected by factors, such as advancements in technology, the ever-increasing population, and climate change. That is why businessman Roman Zenon Dawidowicz stated that the trading pattern of agricultural goods is also undergoing transformation. Roman Zenon Dawidowicz is an experienced oilseed and grain expert with more than 12 years of working in the physical markets. He speaks Mandarin and is at an intermediate level.
What Caused The Evolution?
One of the causes of agricultural evolution is Fintech, an initiative that proffers innovative solutions to problems. The aim of Fintech is to streamline and modernize the agro-industry and its trade strategies.
Fintech Trends In Agriculture
Using Fintech To Power Modern Financing Methods
The process of modern financing mostly meets the needs of small-scale farmers. These farmers don’t have access to loans.
Bridging Gaps
Fintech tries to bridge the gap between farmers and financial institutions by offering other alternatives. This includes blockchain-enabled small loans, peer-to-peer lending, and crowdfunding. As a result, small-scale farmers are empowered to get the funds needed to run their businesses. This will improve productivity and help their effective participation in the market globally.
Platforms Powered Blockchain
Blockchain has revolutionized transparency and traceability of supply channels in the agricultural sector. This is done by making distributed ledgers that are secured and safe. Thus, in blockchain systems, you can track goods from farm to fork. Therefore, it improves the efficiency and faith farmers have in Fintech.
Artificial Intelligence-Based Solutions
Roman Zenon Dawidowicz stated that AI is not only useful in I.T., educational, and medical sectors. It is also beneficial in the agricultural sectors, especially when it comes to trading in commodities. It has tools like algorithms that focus on analyzing a wide range of data used in identifying market trends. Other functions predicting future costs, and optimizing trading methods.
Applications of AI in the Agricultural Sector
Traders get to make more profits by using the informed knowledge gained to mitigate risks. In addition, Artificial Intelligence is used to make automated tools like chatbots that give relevant information to agriculturists. Furthermore, AI can seamlessly connect farmers to interested customers.
Advantages of Fintech In Agriculture
Easy Mode of Transaction
Roman Zenon Dawidowicz ascertained Fintech has really transformed how farmers trade their goods. They can buy and sell commodities to buyers easily, even to those living outside the community. And with more sales comes more capital to plant several crops. This also happens to other farmers that sell their agricultural products in other countries. The result of this is the increased development of agriculture in the global scene. Likewise, it has improved food production since farmers now have more funds to produce more goods.
More Modernized Method Of Farming
The normal method of planting crops and rearing animals has been changed to a more modernized process. It brings about new techniques that pave the way for an effective and inclusive trading platform. This also ensures transparency among traders and their buyers.
Increase in Market Accessibility
Fintech supports and encourages small-scale farmers and upcoming businesses to have an active participation in the worldwide market. Fintech provides them with accessible data, financial support, and marketing environments. Financial technology assists in balancing the trading field and generating more agricultural trading platforms.
Eradication of Middlemen
Financial technology eradicates middlemen. It limits dependency on normal financial institutions and minimizes the risk and costs. This leads to cheaper costs of transactions for farmers and traders. In addition, Fintech enables automated tools that help in risk mitigation, thereby ensuring a safer trading platform.
It Improves Clarity and Efficiency
Financial technology utilizes advanced digital tools to perform menial and difficult tasks. This makes work more efficient and reduces the time spent on performing the task. That is, a farmer will spend less time carrying out his business transactions with minimal cost. It also organized a trading process, which made transactions faster, enhanced accurate data, and improved business operations by the supplier.
Minimize the rate of poverty
Fintech has contributed more to the growth and development of the economy in recent years. A nation that employs the use of technology will have improved productivity. The time spent to farm will be less than before, there will be more capital and less room for errors.
How does fintech minimize poverty?
If there are more Fintech companies that aid farmers, they will have more loan opportunities to finance their enterprises. They can also gain useful knowledge tailored to their agricultural needs. The result is an increase in food production and a reduction of the poverty rate. Yet, farmers still face some obstacles despite the advance of technology.
The Difficulties Farmers Face
Farmers face other hardships that don’t stem from technology, so looking for alternate solutions is the best. For example, using investment and policies instead go a long way in solving the problem. At the end of the day, farmers will enjoy a more positive outcome from their business.
Conclusion
In conclusion, the application of Fintech in agriculture has led to the development of high-tech tools that solve problems for farmers. However, innovators and tech entrepreneurs don’t stop at creating better tools to rival previous ones. It is predicted that in more years to come, there will be more advanced automated agro-tools. According to Roman Zenon Dawidowicz, farmers can anticipate a future filled with more enhanced technology that will make lives easier.
