A new app allows investors to buy farming assets, watch them grow, and make money.
Fedgroup’s Impact Farming application, which connects investors with farmers, is a disruptive force in the world of investment… and farming.
Fedgroup CEO Grant Field told CFOs at the Finance Indaba held at the Sandton Convention Centre last week that investors can purchase assets on the farms listed on the app and receive income from the commodities they produce. “You can own a solar panel, a blueberry bush or a beehive – as many as you like,” said Grant.
But how does it actually work? One has to sign up as a user, and then choose an asset to invest in. Once you have chosen an asset, the app makes it unavailable to other people on the platform and puts it in your purchase basket. The next step is to go to check out, where you choose whether you want to pay by EFT or debit order. The application will then contact the bank and verify your details. Then it will tell you if your transaction is successful.
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Assets produce commodities such as berries, honey or electricity. The commodities are then sold on to a contracted supplier on the investor's behalf. Fedgroup collects the money, and pays the investors their share. Berries and honey are harvested twice a year, meaning an investor will receive income twice a year. Solar electricity, on the other hand, is generated all year round, so an investor will receive income from that asset on a monthly basis.
The app itself has tight controls to prevent fraud. Due diligence of all assets on the app has been done and the team has carried out checks to see that its farmers actually produce the products they claim to.
