In an era marked by technological advancements, Turkish farmers are embracing innovation like never before to enhance their agricultural practices.

From seed and harvest to irrigation and productivity, farmers in Türkiye and around the world are harnessing the power of technology to plan and monitor every aspect of their farming operations in real time.

This transformation is made possible through state-of-the-art agricultural applications that are revolutionizing the lives of farmers.

Türkiye’s digital agriculture platform, Tarfin, made a significant stride last year by linking farmers' agricultural input costs to the market value of their produce. This pioneering approach led to substantial savings for the farmers who adopted Tarfin's package.

It said farmers who opted for this package during the last season managed to achieve savings of over 20% through payments made in July and August.

Tarfin doesn't stop at helping farmers improve their profits. It has also conducted the issuance of asset-backed securities (ABS) under the Income Protection Package. The second and final payment of this issuance was announced as completed last week.

Over 500,000 mobile users

With over 500,000 mobile users and more than 1,200 sales points, Tarfin is off to a strong start in the new agricultural season, aiming to expand its Income Protection Package and provide sustainability to even more farmers.

In this context, the company plans to increase market penetration for the Income Protection Package and strives to further develop the scheme as it continues to act as a bridge between investors and agricultural production.

The last payment of the ABS issuance for the Income Protection Package, conducted last year, was completed on Sept. 15 with an annual yield rate of 84.66% on a term of 84 days.

This solidifies Tarfin's position as an attractive avenue for those looking to invest in agriculture and the future of Türkiye.

Predictable production

The issuance, prepared in collaboration with Pasha Investment Bank and OMG Capital Advisors, opens up new avenues for commodity-based investments.

Not only is this product a high-value investment for investors, but it also serves as a risk mitigation tool for production facilities in the wheat-dependent industries of flour, feed, pasta and biscuit manufacturing. Consequently, it ensures predictability in production for all stakeholders that are, among others, sensitive to price fluctuations.

Furthermore, it presents an opportunity for financial investors interested in agriculture by offering potential returns based on wheat price performance. Given its significance within the sector, the Income Protection Package's ABS issuance, with its commodity price-indexed structured securities, also stands out for its social impact.

Income protection package

Mehmet Memecan, CEO of Tarfin, said they successfully conducted the issuance to support farmers grappling with rising input costs and eliminate uncertainty in production.

"In the near future, we plan to increase the number of issuances by focusing on the value of the Income Protection Package," Memecan said.

The Income Protection Package offers farmers an alternative that allows them to align their expenses with their income, relieving them of cost uncertainties, he noted.

"During agricultural transactions, this package calculates payments based on the average prices of bread wheat on the Türkiye Product Specialized Exchange (TÜRİB). Farmers make payments indexed to the exchange's prices on the payment date," he explained.

"The ceiling price mechanism ensures that the cost of inputs does not exceed a certain amount for farmers. Thanks to the transparent pricing structure of the TÜRİB market, farmers can confidently track prices. With this package, Tarfin is pioneering a project that will lead the sector in the upcoming agricultural season."