FAQs

SPECCX is an electronic trading platform that serves as a spot and forward market for direct transactions between sellers and buyers, both domestic and international, of specialty crops, proteins, grains, eggs, and other agricultural commodities.

Although most recognize the meaning of “proteins”, “grains”, “eggs”, etc., the meaning of “specialty crops” is not as well known. 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, beef, grains, eggs, hay as well as other agricultural commodities, and their representatives may sell on SPECCX.

Any buyer of specialty crops, protein, grains and other agricultural commodities, including but not limited to groceries (retail or wholesale), restaurants, schools, hospitals, or their respective representatives, may buy on SPECCX.

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

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

In general, both buyers and sellers pay a small percentage of each transaction to SPECCX.

In the spirit of financial markets that enable double auctions where both buyer and seller submit bids at which to transact in standardized contracts, assets or commodities, SPECCX enables a participant to make a sequence of offers to transact. Specifically, a seller submits an offer to sell, and a buyer submits an offer to buy. Each offer is a non-binding signal of its desired terms, which SPECCX uses as inputs to a matching algorithm that presents pending agreements that like-minded parties can accept, cancel or counter through a series of binding offers and counter-offers.

In making a non-binding offer to buy, the buyer signals to SPECCX a desired unit price, maximum quantity demanded and delivery terms. Likewise, in making a non-binding offer to sell, the farmer signals to SPECCX a desired unit price, a desired quantity for sell, and desired delivery terms, including the maximum distance it is willing to travel in order to make a delivery. From here, the SPECCX Matching Mechanism and Price Mechanism take over.

The SPECCX Matching Mechanism automates the execution of pending agreement whose terms the parties finalize through binding offers, and the price mechanism automates the generation of market prices.

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 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.

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.

If the crop failure was due to an Act of God, then, in most circumstances, the farmer will likely be excused from delivery under the Act of God provision in the Uniform Commercial Code section 2-615, which is the law in Tennessee.  If the conditions of this rule are satisfied by the farmer, the farmer has the option to fulfil the terms of its contract or not.  If the crop-failure is not due to an Act of God, then the Act of God excuse is not available to the farmer and, in the absence of another valid excuse, the farmer remains obligated to fulfill his or her contractual duties.   

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.