Cropital is an investing platform to help support poor Filipino farmers from being trapped in poverty and forced to use predatory lending. Rachel de Villa is the co-founder of Cropital. She is working hard to help the Filipino families not live in debt due to the high-interest rates and the traders taking advantage of the farmers. The traders will buy the crops from the farmers for one cent and turn around and sell the crops for $1. Therefore, the traders make all the profits on the sales of the crops and leave the farmers further in debt each year. Many of the farmers are forced to sell their lands because of the high investment rates and the traders stealing their profits. As an investor, you’ll not only be helping the farmers, but you’ll receive an ROI on your investment once the crops are sold at market.
How Does it Work?
- You’ll need to visit the website and sign up for an account.
- You’ll become an investor or make a pledge to help one of the local farmers. Currently, Cropital is helping 600 local farmers and the number is increasing all the time. You’ll have plenty of local farmers to select from and various crops you can invest in.
- You’ll need to add funds to your virtual wallet before you can make a direct investment with Cropital.
- The starting investment is P5,000.00, which is $100 USD. You can increase your investment by P5,000.00 each time. If you are unsure how the process works it is best to invest the minimum to start off with. You can always use the money you’ve earned when the crops are sold to increase the profits you make from your initial investment.
- If you haven’t yet added funds to your virtual wallet, you can still make a pledge to help one of the local farmers. If you decide to make a pledge, you’ll have 3 working days to add the funds to your virtual wallet.
- The company doesn’t limit the number of pledges a person can make. However, the pledges are only turned into an investment once the money is deposited to your virtual wallet. The investment is made once Cropital has verified the deposit to your virtual wallet. The deposit that you add to your virtual wallet should cover the amount of money you’ve pledged. If you add extra funds to your virtual wallet, the funds will remain in your wallet like a credit until you invest the funds or ask for a withdrawal of the money in your wallet.
- Once your investment is made, Cropital will send you a notification and invoice. This shows proof that your investment has been made with the company.
- Once the farm you’ve invested in has successfully completed the funding, the company sends you a memorandum of agreement.
- Once you’ve successfully funded your farm or farms, you’ll receive regular updates and progress on your farms. The harvest normally takes 3 to 6 months before the crops are sold at market and you’ll see an ROI on your initial investment.
- The profits are split between all the investors after the initial loan has been repaid.
How Does Cropital Manage the Risks?
- Each farmer in the program has to be verified and selected through the assistance of the local government unit.
- Farmers are required to submit an application and a barangay clearance before they can undergo an interview with Cropital. Only the farmers who pass this process are allowed to join Cropital.
- Each farmer in the Cropital program receives crop insurance. The crop insurance is provided by the Philippine Crop Insurance Corporation. The cost of paying the crop insurance is included in the capital loan given to each farmer. The crop insurance will cover weather, pests, and market risks.
- The company has provided each farmer the help they need to control pest damage to their crops. The farmers have access to agriculturist who will help them infuse best practices in pest control to prevent damage to their crops. Furthermore, the insurance the farmers receive will help pay for any pest damage to their crops.
- When crops are sold at the market there is always the risk of high-value crops may drop or spike depending on the supply and demand. Therefore, Cropital helps to manage diversification of crops for each farmer by clustering the different farmers together to distribute the risks.
- When investing in a farm there is a cap on how much money you can invest in a single farm. This helps to spread out your money to different farms and helps to lessen the risk to you in case of an unfortunate event.
How Does Capital Manage Farmers?
- Each farmer that has been approved by Cropital is grouped into a cluster.
- Capital has one local community partner who manages each cluster.
- The local community partner will visit each farm on a regular basis to monitor the progress and report back. They also monitor the progress according to the plan each farmer has submitted with Cropital.
- The plan each farmer has submitted describes the schedule of activities the farm will take, the resources needed for each activity, and the labor cost they need to pay out.
- When it is time to sell the crops, the community partner will work with the farmers to sell the crops to an authorized buyer who pays for the crops directly through Cropital.
- Cropital will also send out a report to each of the farm’s investors. In the report, it details the progress of the farm, if the farm is on schedule, and photos of the farm for you to see. You’ll receive these reports on a regular basis during the growing cycles. This helps you to see how the farm is being handled, how the crops are growing and the initial progress each farmer is making.
How Can You Add Money to Your Virtual Wallet?
- Currently, you can add funds to your virtual wallet through a bank deposit.
- However, as the project gets underway and more investors to participate in the project, Cropital will include online payments to help people fund their virtual wallets.
What Happens if the Farmer Can’t Payback the Initial Loan?
- If an unforeseen event occurs and the farmer is unable to pay back the full loan borrowed, Cropital will help the farmer for one more cycle. They will invest in the farmer for the next growing cycle.
- This will help the farmer recover the amount owed to Cropital from the previous cycle and the new cycle.
- Once the money has been recovered, the investor or a crowdfunder will receive their payment plus any profits from the sales of the crops at market.
How Are the Crops Sold?
- Cropital has arranged an end-to-end supply chain for each farmer. The company has partnered with buyers and each farmer has a buyer that will buy their crops.
- The buyer has to pay for the purchase of the crops directly to Cropital.
- Cropital can easily track the total revenue earned by each farmer.
- Afterward, Cropital will share the profits with each investor and the majority of the profits will be given to the farmers to help them and their families.
How Much Money Can I Make?
- Each farmer has a loan amount and a fixed percentage of the amount funded.
- The exact percentage that you’ll earn is shown on the profile page of each farm.
- The profit sharing or return on investment is a fixed percentage of the net profits earned by each farmer.
- The ROI is determined by the farm community, the level of risks involved, and the amount of the profits that are returned to the farmers.
- The company gives the majority of profits back to the farmers to help them and their families.
- Your exact profits from each crop sold are indicated on the profile page. This helps you to determine which farmer, crop, and livestock you wish to invest in.
- Once the crops are sold your profits from your investment are credited to your virtual wallet.
- You can either withdraw your funds or use your funds to reinvest in the next growing cycle.
How Can You Withdraw Your Funds?
- When you first set up your account, you’ll need to supply Cropital with a PayPal ID or your bank information.
- You have the options to use a bank transfer via BDO or BPI.
- Otherwise, you’ll need to withdraw your funds to your PayPal account.
- Once you request a withdrawal of funds it needs to be approved.
- Funds are processed each week on Monday and Thursday.
- If you request the funds transferred to your bank account, this normally takes 1 to 2 business days before you’ll see the funds in your account.
- You may encounter transactions fees from PayPal or any bank that is outside Metro Manila.
- You can always monitor your withdrawal request on your account. Just go to the withdraw page and check your status.
- When requesting a withdrawal, you can leave money in your virtual wallet to use for the next cycle investments or you can withdraw the entire amount from your wallet.
Cropital is a legitimate company that provides loans to farmers in the Philippines. The company is controlled and regulates all farmers, the amount of the funds loaned, and the sales of their crops. When the crops are sold, the funds are deposited directly to Cropital. The initials funds are used to pay back the loan and the investors. Afterward, the profits from the sales of the crops are distributed back to the farmers and all the investors who invested in this farmer. Many people are finding that crowdfunding brings a nice return on their investment. Working with Cropital you are not only earning money from your initial investment, but you are also helping local farmers and their families in the Philippines. This is a secure way to invest in a project and many people are finding this as a good alternative to investing in the stock market.