Center Cattle Report
technology-fueled changes brought about by the development of the internet,
bandwidth speeds, connected devices, and e-commerce are moving forward
at high velocity speed. Innovation will lead the change. Some will
embrace the change, others will be swept along, and still others will refuse
to follow, ignore the changes and slowly disappear.
new digital economy will manage the physical world with data driven transactions
and no industry will be more impacted than agriculture. Digitization of
all transactions involving the transfer of title and the exchange for money
following the buying and selling of agricultural products will undergo
a transformative overhaul. The new services will be the key to driving
productivity gains for the industry.
gains are not delivered by a faxed or scanned invoice any more than an
overnighted check for payment for cattle. Data driven transactions will
happen in real time and settlement and clearing will be triggered by electronic
notices either email or text followed by electronic money transfers called
ACH transactions to quickly settle the trade.
the physical world of agriculture, digitization is already occurring at
supersonic speed in farming. Farm tracts are being analyzed down to the
square foot to determine nutrient requirements that are applied in variable
levels to accommodate differences within the field. Precise plowing and
planting is digitized and mapped for tractor applications that will soon
be self-operated using accurate GPS coordinates. Seeds are genetically
designed to protect and enhance increasing yields free from chemical applications.
The results from each effort will be digitized into data to make the next
decision a better decision.
cattle for beef will mirror digital activity in all other sectors of agriculture.
Seedstock choices will be data driven. Individual animal ID will track
each health record, performance check points for weight, and finishing
performance. The tracking will continue in the beef plant with both in
live and carcass data allowing producers to let the information drive their
decisions at each fork in the road.
in all ag products will move to the web allowing best buyer to find best
sellers at every point of transfer. The internet provides transparency
and a centralized marketplace where both the buy side and the sell side
are always finding the best price for each. Block chains, created by each
transaction, will create the foundation for settling futures contracts
in a manner instilling confidence of more traders. That confidence will
translate into new liquidity in the futures contracts.
for cattle will be electronically settled to bank accounts immediately
on delivery with both buyer and seller protected against fraud and misrepresentation.
Smart contracts for the purchase and sale of cattle will include protocols
and standards to drive the transaction. This will include confirming the
transaction, identifying the parties to the transaction and spelling out
the terms governing the transaction and the steps necessary to consummate
delivery and cash settlement. These digital contracts will be available
for accounting purposes, audit control, fraud prevention, legal compliance
and finally banking authority.
the core of the digital revolution will be security. Transactions, blockchains,
and money transfers must be encrypted and verified on both sides of the
ledger. Breaches of computer networks are daily occurrences. Technologies
are available to prevent these breaches and data can and will be protected
within tolerable risk frameworks. Trust must be present for innovation
to move forward and it will be.