Farmnow is one of the newest Agri-tech Investment schemes making waves in Nigeria right now.
You might have heard about them and are looking to invest with them.
But how safe is your investment with Farmnow? Are they a legit or a scam company?
Well, in this review article, we’ll dissect the farmnow Investment opportunity to see if it is really worth our investment.
Note that this review is only for informational purposes only and does not serve as investment advice.
You have the prerogative to invest or not to invest with Farmnow.
So, what Is Farmnow All About?
Farmnow wants to provide the platform that connects investors with farming communities.
It essentially manages the contract and relationship between investors and smallholder farmers looking for funds to grow their farming capacity.
Farmnow provides everything from legal support and product-to-market, to insurance coverage, to ensure the smooth running of the agric venture and returns for investors.
How Does Farmnow Make Money?
Farmnow makes money by receiving a share in the proceeds as well as fees for services rendered.
Farmnow is acting like an enabler for what it calls the agricultural approach to socio-economic development.
And the company deservedly gets paid for the opportunities it creates and nurtures.
How to Invest in Farmnow
Farmnow offers different Investment Packages for different cash crops and agriculture services, such as:
Tomato Farming
Investors can find Tomato farm projects across Farmnow’s local partner farmers across the country.
Poultry Farming
Farmnow offers investors the opportunity to invest in the commercial production of healthy-sized broiler chickens.
Cassava Farming
Investors can invest in the farming of high-starch cassava tubers that are processed for commercial sales.
Garri Processing
Investors can invest in the food processing arm of Farmnow, where garri is processed and packaged for sale from the cassava yields.
Machinery
There are opportunities for investors to fund the equipping of partner farms with modern farm equipment and machinery.
Logistics
Farmnow handles the logistics of distributing products from farms and storage facilities to markets.
Investors can fund the purchase of logistics vehicles and earn returns on delivery fees.
How Much ROI Does Farmnow Offer?
The nature of Farmnow investment structure means that each farm investment is unique and comes with its own contract.
Hence, there is no flat ROI which investors can earn from investing in any of Farmnow’s investment packages.
Here’s how the investment process goes:
When an investor indicates interest to invest with Farmnow, the company would draw out a budget with any of the farms in their farm communities or partnerships.
This budget would include the cost of land, seedlings or starters, labour, insurance, management, logistics, etc.
Investors can fund these farm budgets alone or in collaboration with other investors.
Once the budget and farm project is determined, a contract would be drawn between the investors and the farmers.
On this contract, both parties would know how much ROI they would get at the maturity of the project, and the necessary timelines.
Is Farmnow Legit or Scam?
Farmnow looks like a good project, but I’m finding it hard to see the value they bring to the project.
Yes, they offer the platform to connect investors with local smallholder farmers, and provide other agro-allied services.
However, I believe their proposition isn’t unique, as Farmnow is only interested in being paid to do a job.
Without the investors, Farmnow has no business venture in place. So, they wait for investors to provide the fund before they offer anything.
Can You Lose Money With Farmnow?
It depends.
Since I don’t have the knowledge of the type of insurance Farmnow is proposing for its farm project, there is no way to know the level of insurance guarantee that investors would get for their farm projects.
Will the insurance cover only the farm assets? Or will it include investors’ funds?
I would like to think it is the former. In which case, investors may lose money if the investment contract does not provide any guarantee for the investors.
Should You Invest in Farmnow?
Well, we have to first see the contract before we make our decision.
Farmnow is smartly keeping their system of operations away from the public eye, so you wouldn’t know what you’d get from investing with them until you show some commitment.
So, for now, we can only wish Farmnow well and hope for the best for their investors.