[RECAP] Value of Investing in Agriculture Crowdfunding

by | Jan 28, 2018

Last Thursday, 25/01, ANGIN team attended Bizcom.id’s CEO Talks: Value of Investing in Agriculture Crowdfunding, held in Sapori Deli, Fairmont Jakarta.

The event starts with an opening speech by the chairman of Indonesia’s Farmers Association, followed by a moderated panel session attended by CEO of TaniFund/TaniHub, CEO Vestifarm, and a representative from Otoritas Jasa Keuangan (Financial Services Authority).

Here are the key takeaways:

There are five problems faced by farmers in Indonesia:
  1. Land issue. Farmers have too many small and problematic land to be tilled.
  2. Capital issue. Capital is needed in the process of farming, and the existence of loan sharks are still aplenty in Indonesia.
  3. Technology issue. Farmers are still not quite adapted to the current technology used in farming, both in farming technique and as an enabler.
  4. Managerial issue.
  5. Post-harvest issue, including pricing.

 

Crowdfunding is a solution made up of three variables: change, innovation, and social entrepreneurship.
  • Using technology as an enabler, crowdfunding provides a solution for the capital issue faced by the farmers, using the excess supply of small investments from individuals.
  • Built from the spirit of social entrepreneurship, crowdfunding create change for the better for the farmers, by providing an innovative platform bridging farmers with capital providers. In this case, capital providers can be anyone.

 

The panel session gave us a snapshot of what is it like to be farmers or cattlemen: they are underutilized due to the lack of working capital.

 

Investing in agriculture is a high gain, low risk one. The risk is calculable as the main risk comes from weather-related disaster.
  • One way to improve the risk of loss is transparency, and cashless payment, another technology aspect, plays a big role in this.
  • Risk analysis from farmers can be conducted through agents located in a cluster of villages.

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