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E-sigs for Grain Contracts Cut Mailbox Clutter
February 13, 2009
NEOLA --- If a mailbox could talk, Kevin Gunderson’s might be saying “thank you.”
Since this fall, Gunderson has been able to view and sign his Cargill grain contracts electronically through a pilot project offered by the company. Gone are the days, he says, when the mailbox was stuffed with paperwork.
“I don’t know if anyone likes to deal with all that paperwork,” he says.
“I’m not real computer savvy, but this is just really easy to work with.”
Gunderson, who farms near here in PottawattamieCounty, is one of several Cargill growers who were part of a pilot project launched by Cargill this past June.
Offered by Cargill AgHorizons, the program is the first of its nature, allowing growers to sign grain contracts electronically.
Initially offered in Iowa, Nebraska and Illinois, the program has been approved in many other Cornbelt states.
The pilot project ended this week, says Jeff Klock, database marketing product manager for Cargill AgHorizons.
He says the impetus for the program came from farmers.
“We send out thousands and maybe millions of envelopes each year, and our customers told us to stop the madness,” Klock says.
“As a result, we’ve worked with every state to receive approval for this program, and it is now approved in all the Cornbelt states except Ohio and certain types of contracts in Illinois.”
After farmers set up an online account, they can view and sign all grain contracts. The initial sale still must be handled over the phone, Klock says, but just about everything else can be done via the Internet.
“About one-third of our customers in those states have signed up, and the majority has said they really like using the e-signature option,” he says. “It really cuts down on the paperwork for them and for us.”
When a farmer enters into a contract with Cargill, the company enters that contract into its system.
After viewing and approval, an e-mail is sent to the customer telling them it’s ready to be signed.
“This is all very secure, protected with a password,” Klock says. “We don’t use an “I accept” box because we want the farmer to take a look at the entire contract so there are no questions before they sign it.”
Farmers can view past and present contracts, scale tickets and settlements online. Cargill will keep the documents viewable for two years, and farmers also have the option of printing out contracts for their records.
Klock says the response has been favorable to the program, but adds farmers need to understand some things remain the same.
“We are not buying grain online. Farmers need to continue to work with their Cargill farm marketer to originate a new grain sale,” he says.
“They are much better equipped to assist producers in implementing their grain-marketing strategies and selecting the most appropriate grain contract. You still need to call the elevator and originate that sale.”
Farmers interested in the program may register through their local Cargill office.
Gunderson, who also feeds cattle and operates a purebred Angus and Gelbvieh operation, says the ease of the program appealed to him.
“I can go online when I have the chance and look at the contracts, to see about delivery dates, prices and other things,” he says. “There is just a lot less paperwork, and that’s nice.”
Gunderson sells most of his corn and soybeans to nearby Cargill plants in Council Bluffs and Blair, Neb. He says the company is good about communicating with him, including text messages throughout the day.
Staying in the loop, Gunderson says, helps make him a better marketer.
“With the price volatility for both grain and inputs, marketing is just so important today, maybe more than it’s been,” he says. “Having the ability to look at those contracts and talk to our Cargill rep helps me make better decisions.”
Gunderson practices what he preaches. He says most of his 2009 and 2010 crops have been sold.
And, he knows where he can find those contracts when he needs them.
“Really, the ease of this online program just makes my job easier,” Gunderson says. “There really weren’t any kinks in the system. It worked really well from the start.”
Source: The Iowa Farmer Today
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