We are basically farmers so we do our activities privately. Although we are open to partnering with trust worthy farmers and industrialists. Our concept of operation involves:
Raise Funds. We raise funds from the public through non-equity crowd funding. This implies that interested persons can fund our projects for profit sharing. We have several Agricultural projects that can be explored but may not get timely funding through financial institutions, therefore we seek funding from the public to run these projects for big returns.
Farming Operations We invest our sponsors’ funds directly into our diverse projects. We use multiple projects to mitigate risks and generate various sources of income. We have our farms in Minna, Niger State, Kaduna, Kaduna State, Yakoyo Osun State, Okemesi, Ekiti State, Ibadan, Oyo State, Ilorin, Kwara State.
Support Services. We ensure that we utilize several support services available in order to enhance our output and productivity. We also create solutions including Information Technology solutions for Agriculture. Some of our solutions include but not limited to Record keeping software, precision farming, farm management software, online Agricultural market place, directory of farmers and consultants, agric TV, online Agricultural library, Agricultural training portal, Agricultural forum, Distress call app for farmers to seek emergency help and the app to link up to consultants. Effort is also being put into other areas including the deployment of Artificial intelligence and Internet of things in Agriculture.
Postharvest Services and Sales. After production, it is important to have easy access to the market. FarmKonnect uses its network to facilitate easy and prompt sales of Agricultural products to reduce wastages.
Profit Sharing. After the operation, we share profit amongst the sponsors. However, based on history of performance, we are able to project and predetermine the profit margin. Additionally, we are also able to put lots of security in place to mitigate risks, we therefore offer a guaranteed return on investment based on the level of sponsorship provided to our project.
To make the crowdfunding easy, we break it down into subscription slots and sponsors can simply take as many slots as they deem enough for their risk appetites. We provide a high level of guarantee on funds, thus absolving the sponsors from the majority of the risk in the business. While we do not consider this a fund management system, we simply make estimates for our projects and sponsorship into a pool of fund that is used to finance our commercial scale Agricultural projects.
Our profit sharing policy stands that we give 76 to 80 percent net profit back to the sponsors. This is after we must have removed all the cost of production. It is on this basis that we can afford a robust reward for the sponsor’s funds. We thrive on numbers and volume; therefore we require numerous subscribers and sponsors for the Company to make sufficient profits to run its business. It is important to note that we only take on projects that can afford us sufficient return on investments to pay our sponsors their rewards as well as have both local and international market acceptance.
Since our projects are majorly financed by sponsors, we need to put adequate effort towards ensuring the success of the projects; consequently, we have four stages of our projects:
a. Testing: Before considering any project for funding, we first test the project on a very small scale to be sure that it can be supported locally and possibly result in profit. If we find a project feasible, we design a large scale concept around it.
b. Pilot: Before going full blown, we start off all large scale projects with a pilot phase which is usually 10 to 20 percent of the full scale. This allows us to mitigate risk and be assured of the smooth running of our projects when fully commenced.
c. Intermediate Scale: At the intermediate scale, we proceed from 10/20 percent towards 50/60 percent scale of the entire project, monitoring the metrics to be sure that the project remains feasible at the full scale.
d. Large Scale: At this stage, we go full out on our projects, which may transcend beyond production into processing and distribution.
Please note that regardless of the scale at any moment, we are highly focused on risk management and profitability of the projects.
The security of our sponsors’ fund is essential to us, and this is why we ensure that we explore the numerous opportunities offered by insurance companies. From the provision of life and hazard cover to our members of staff, to fidelity and cash-in-transit covers to our State and Business Representatives as well as Agricultural insurance covers for our important structures and projects, the risk associated to our work is greatly mitigated through insurance covers, so that our sponsors can be in safe hands.
For effectiveness and wide coverage, we create a web of representatives across Nigeria. With at least a Representative in a Senatorial district, supported by a minimum of 10 Business Representatives, we have a total of about 1,110 State and Business Representatives across Nigeria, and possibly growing beyond the borders in a short while. The essence of the Representatives Network is to take the products and services offered or marketed by FarmKonnect to consumers through direct and experiential marketing so that farmers have what they need from FarmKonnect close to them. The Network consists of freelance marketers and consultants in a Win/Win relationship with FarmKonnect Nigeria.
Although we are out for profit, we believe that if your business is just about making money, it is a bad business, therefore, we work tirelessly to add value to the society while we glamourize agriculture and create a new clime of proficiency and profitability. We implore well-meaning Nigerians to join in the fight against hunger. There is no other form of security that is more fundamental than food security. It is the basis of survival, and survival is the fundamental need of every living thing. If you think of business, think Agriculture, if you think of a partner, Think FarmKonnect.