FBN and ADM forge new company to advance sustainability in grain supply chain

Farmers Business Network (FBN) and Archer-Daniels-Midland Co. (ADM) have established a joint venture to create a standalone company for FBN’s sustainable grain platform, Gradable. The venture aims to scale up Gradable’s reach, facilitating the growing demand for grain produced using sustainable and regenerative agricultural practices.

Launched in 2020, Gradable tracks and scores sustainable farming practices, offering a transparent way for grain buyers to meet regulatory and consumer-driven sustainability demands. The platform, which has rapidly become one of North America’s leading grain procurement tools, has already scored more than 200 million bushels of corn and soybeans and analyzed 48 million acre-years of agronomic events. It is currently used by over 20,000 farmers across more than 12 million acres, facilitating $30 million in annual farm premiums for sustainable practices.

The newly formed joint venture will see ownership of Gradable split equally between ADM and FBN. ADM, a longtime customer of Gradable, plans to expand the platform across hundreds of its facilities in the United States and Canada, and to increase the number of commercial partners and countries served. This expansion is expected to help farmers and grain buyers alike to meet stringent regulatory requirements, such as the European Union’s new rules mandating that agricultural commodities, including soybeans, be deforestation-free.

Steele Lorenz, the newly appointed CEO of Gradable, explained that the platform is focused on building a robust market for sustainable grains. He stated that the platform was designed with regulatory markets in mind, as these would eventually drive and define the market at scale for the majority of growers. Lorenz also noted the potential for Gradable to support emerging markets, such as those requiring sustainable aviation fuel feedstock.

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The demand for sustainably produced crops is steadily increasing, driven by consumer preferences, corporate commitments, and public policy.

ADM’s president of Ag Services and Oilseeds, Greg Morris, highlighted the company’s regenerative agriculture efforts, which had already enrolled more than 2.8 million acres in the previous year. He indicated that the joint venture was a crucial step toward enabling more farmers to participate in regenerative practices and to meet the global demand for sustainably sourced products.

Gradable’s digital infrastructure aims to strengthen the relationship between grain buyers and farmers by offering a secure platform for grain transactions, laying the groundwork for increased farmer participation in sustainability-driven markets. This venture positions Gradable as a significant player in the agricultural industry’s shift toward sustainable production.