The income of farmers is highly volatile and depends mainly on the weather conditions, market demand, and the variable market rates. The market rates are highly volatile and totally in control of the storeholders. There is a big chain of middlemen between the consumers and the producers. The farmers get a meager price for their goods and all the profits are made by the middlemen. Blockchain will remove the middlemen chain and will provide fair prices to farmers according to their quality. There are validators who are not controlled or influenced by anyone who will verify the farmers' data and upload it to the blockchain.
Blockchain-based smart contracts work by triggering payments automatically as soon as a specific, previously-specified condition has been fulfilled, and without charging excessive transaction fees. It means that farmers could theoretically receive payment for their goods as soon as they are delivered, without a significant portion of their income being taken away from them in the process. Many farmers also experience difficulty when they try to sell their products in the market at a fair price. Intermediaries enjoy most of the profits while doing a minimal amount of work in comparison.
The entire suite of technologies rests on a consensus-driven blockchain network. Farmers can use integrated platforms with no intermediaries and more transparency to create an international trade union and increase their profit margin. For developing countries, where a significant part of the population is engaged in agriculture, this will be a huge plus, saving many people from starvation. An example is such a country as Uganda, where in the 90s of the last century nine out of ten people lived in the countryside.
Smart contracts would eliminate the requirement for intermediaries, as it would allow farmers to connect directly with retailers. Therefore, they’d be able to receive a fairer price for their goods. Blockchain technology can act as a reliable source of truth about the state of farms, inventories, and contracts in agriculture. Blockchain technologies, such as those hosted on the Ethereum blockchain offer the possibility of improving the land registration process and ensuring tenure rights. Blockchain technology has also been recommended as a way of improving food security by ensuring increased transparency and improving efficiency.
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