Grower Settlements is the accounting process involved in the profit & risk sharing between a grower and a supply chain partner that is selling the grower’s product.

In a standard agreement, the grower provides the inventory to the sales agency. The sales agency then sells the product and remits back to the grower the agreed upon amount based on the sale. Agreements may include cost sharing elements such as packing and transportation. Typically, the agreement is by product and season as these can vary greatly by year.

Typical accounting and sales order management systems are not build for this kind of risk and reward business arrangement. Therefore, agribusiness companies must either handle these calculations in spread sheet form or utilize industry focused software built for this kind of accounting.

The US Agri grower settlements capabilities include many options. Grower settlements can settle by pools or by transaction. They can settle by season or a combination of seasons. They can also settle by ranch or geography.

Pools can include the inclusion of standard or itemized overhead costs. Loans or advances can also be tracked, calculated and deducted as payments are made.

Final settlements include grower statements that are accessible on a secure site when published.

To receive a complimentary demo and learn how US Agri can help your business, please email us at [email protected].