FAQs

SPECCX is a farmer-requested electronic marketplace that facilitates direct transactions between sellers and buyers of specialty crops, eggs, and hay.

The USDA defines specialty crops as fruits and vegetables, tree nuts, dried fruits and nursery crops, including ornamental and garden crops.

Any producer of specialty crops and their representatives may sell on SPECCX.

Any buyer of specialty crops such as groceries (retail or wholesale), restaurants, schools, hospitals, etc., or their respective representatives may buy on SPECCX.

Buyers and sellers of specialty crops need SPECCX for several reasons.  First, SPECCX solves the coordination problem between buyers and farmers of specialty crops.  Second, the industry needs a well-functioning price discovery mechanism that automates the generation of well-informed and well-designed spot bulk prices at which a buyer and farmer may transact.  Third, the industry needs a forward market that enables hedging of price risk of specialty crops, hay and other agricultural commodities that are not served by existing futures exchanges.

Yes, one can list a variety of crops to sell without any limitations.

Buyers and sellers pay an annual membership and a small percentage of each transaction to SPECCX.

The buyer and seller will each pay a small percentage to SPECCX of each finalized transaction.

Like other financial markets, SPECCX includes a procedure for a participant to make an offer. A seller submits an offer to sell, and a buyer submits an offer to buy. In making the offer, the buyer lists a desired unit price and maximum distance radius from location seller must operate within. Likewise, in making an offer to sell, the farmer reveals to SPECCX the maximum distance willing to travel, the marginal cost, and desired price-cost multiple.

From here, the SPECCX matching mechanism and price mechanism take over. The matching mechanism automates the execution of contracts, and the price mechanism automates the generation of market prices.

The matching algorithm of SPECCX matches a buyer of a commodity with a like-minded seller of a commodity. A match results between a seller and a buyer when the bid offered by the buyer exceeds the ask offered by the seller and they are within each other’s maximum distance radius.

The SPECCX Price Mechanism is a mathematical framework derived from economic theory that implements an equilibrium outcome of a series of transactions whereby several profit-maximizing sellers, or farmers in our case, post non-linear, or bulk, prices to a buyer whose well-being depends positively upon two things: (1) consuming commodities and (2) having as much of its revenue, or ability to pay, as possible left over after having purchased commodities.

This all happens within fractions of a second, automating the execution and settlement of win-win transactions for both buyers and farmers of specialty crops.

SPECCX is set up on the PLU code system used by groceries.

It is not a requirement to be on SPECCX, but there are buyers that require it. We will ask for this information when onboarding your farm, so you match with the appropriate buyers.

A farm does not have to be GAP Certified to be on SPECCX, but there are buyers that require it. We will ask for this information when onboarding your farm, so you will match with the appropriate buyers.

There is not a farm size requirement to be on a SPECCX. We have both small and large production farms on our platform.

A farmer is not obligated to sell listed crops on SPECCX. They can cancel or allow the listing to expire. The only time a farmer is required to sell their crops is if they are in a contract.

The farmer will still be obligated to fulfill the contract. We encourage the farmers to reach out to Customer Support at SPECCX and they can assist you in finding product to purchase on the platform to honor the contract.

With SPECCX, you have a binding contract in hand when you deliver the product. If there is nothing wrong with the delivery, the farmer now has just cause in pursuing legal action.

A farmer makes an offer to sell a particular type of produce and a buyer makes an offer to buy. SPECCX algorithms suggest a price-quantity pair that benefits both sides, over and above their stated price-quantity preferences. The buyer and farmer can then decide to agree to terms, or negotiate, based on quantity, price and distance. If an agreement is reached, SPECCX generates a standard contract. This contract can be either spot or forward, depending on whether the delivery date is within 30 calendar days.

Once a buyer accepts the product and the contract is fulfilled, SPECCX invoices the buyer. The buyer pays SPECCX in a timely manner based on their contract and then SPECCX pays the farmer.