Agriculture is changing rapidly, and becoming more of a full time business. People who would love to participate in agriculture are unable to do so due to other commitments. And at the same time, a lot of farmers are unable to produce to their maximum capacity due to limited funds. For both parties to benefit, it is crucial they come to some form of agreement.
Investors are usually unable to participate due to little farm experience, unavailability of time to farm, no land to farm e.t.c. While farmers are unable to expand their farming ventures due to lack of funds necessary for purchase of seedlings, purchase of better farm machinery, purchase of fertilizers and other farm input e.t.c
This has led to the introduction of farming by proxy. Here, individuals invests some amount of money in a farm venture, with hopes of getting profit from sale of the farm’s produce after harvest. Farming by proxy can be viewed as a partnership, where an investor contributes money in place of efforts so as to share in profits.
Farming is a lucrative venture that gives better profit when practiced in a large scale, for example farming cassava on a two hectare of land can make a farmer realize almost 1milllion naira after deduction of costs.
Some Farmers give investors a share of 50% on initial profits, meaning an investor can realize up to N150,000 on an initial investment of N300,000.
However, farming by proxy is hugely dependent on finding a farmer who has a good farming experience and is also trustworthy. The success of the partnership relies on the farmer carrying out his end of the bargain. Many investors live/work far away from where farms are usually located so it’s difficult to track and measure farms progress.
With transparency however it is easy to manage your investments even when you are away from the farm. ProbityFarms is a online farm management and accounting tool, that has features which can be used to track a farms progress from any location. Investors can take satellite images of farms, look at performing and underperforming regions, get to see uploaded images of farm’s activity and progress, and follow the farmer through the farm’s journey leading up to harvest.
Ensure your farmer has an account with ProbityFarms and uploads all relevant data to keep you abreast of the farm’s condition at any point in time. This would help ensure transparency and compliance on the side of the farmer. Farming is growing, you can be a part of it too, visit www.probityfarms.com for more details.