The month of June is coming to an end, but just before it does, Nairametrics is bringing you Agritech deals you should consider investing in. Ordinarily, this is not the best time for AgriTech investments, as the rains have started and most farmers are done planting.
However, there are still some late planting to be done, so this means there are some late deals you can take advantage of. From the details of these deals, you will discover those meant for funds you intend to keep long-term and those for the short-term.
These options were picked from firms known to insure their farms and farm produce. There are some AgriTech firms that should also be in this list, but this list only captured those which had deals open for sponsors and investors as at the time of writing.
Thrive Agric is quite popular in the Agritech space but as at the time of writing it, there was no farm deal open for sponsorship.
Wealth.ng also has a couple of agricultural investment options, but they have been completely subscribed by the start of June. Only real estate investments and stock options are open.
Farmcrowdy usually offers a variety of investment options, from maize farms to rice, potatoes, fish, cassava, poultry, cattle, but most of these options have been sold out and closed, after full subscription. Its farms located in Kaduna, Oyo, Ogun, Niger and Lagos states are all insured by Leadway Assurance.
Only one option is still available from Farmcrowdy as at the time of writing.
The Farmcrowdy food gives 10% Return on Investment (ROI) per annum with the minimum holding period of 7 months. The minimum investment is N20,000 being for the sponsorship of one farming unit.
At this rate, an investment of N100,000 would yield another N10,000 by the end of 7 months.
This investment funds covers the cost of production of several farm produce like potatoes, vegetables, and staple foods, and the farms are located in Lagos state.
Another deal you could consider is the Fish farm investment with Groupfarma. This investment gives 27% ROI. A unit of the fish farm investment can be sponsored at N52,000, and the Oyo based farm runs a nine-month farming cycle. The farm is insured with the Nigerian Agricultural Insurance Corporation (NAIC).
Farmkart also offers a fish farm option but with different terms. You need N100,000 to purchase a unit of this option, with 15% ROI over a period of a 6-month farm cycle. The investment funds cover the farm inputs, the pond rents, organic supplements, payment for the farm workers, insurance and the farm is located in Ijebu-Ode, Ogun state.
With the Groupfarma option, every N100,000 invested in the fish farm will yield N27,000 at the end of the 9-month cycle, while the same investment with Farmkart will give you a yield of N15,000 in 6 months.
The choice of investment here would be determined by how long you want the funds to be held.
The Federal Government had complained of the millions spent on importation of fish into the country. Worse still, Nigeria has been tagged the largest importer of fish and fishery products in Africa and the world’s fourth largest in volume terms (5.4% of global imports) after China, Japan and the US.
What these figures tell you is that any investment towards improving the aquaculture industry and fish production, has a profitable value chain. So, you might want to consider it among your options.
Payfarmer also offers a Catfish Farms investment where investors can sponsor a unit with N50,000 and expect 20% ROI after the farm cycle of 7 months. This means that N100,000 investment will grow to become N120,000 in 7 months. The farm is located in Epe, Lagos state.
Payfarmer has a couple other investment options still open as well.
The Payfarmer Pepper Farm investments opens at a unit entry of N25,000 investments and you get 12% returns with a minimum holding duration of 5 months. An investment of N100,000 here would give you additional N12,000, and if you are looking for an investment that frees up your funds just before the yuletide, then this would be a good option to consider. The pepper farm is located in Epe, Lagos.
Payfarmer also has several Pig farm options. The first requires a minimum investment of N5 million naira for a unit and gives you 34% returns with a minimum holding period of 10 months. This means one-unit investment here will yield of N1.7 million at the end of 10 months.
There is also another Pig farm option which allows an entry investment of N250,000 for a unit, giving you 28% ROI in 10 months. Every N1 million invested in this farm will earn a profit of N280,000 at the end of the cycle.
The third Pig farm option has a unit investment of N500,000 with a 30% return and a 10 months farm cycle. An investment of N1 million here earns N300,000 at the end of 10 months.
The fourth Pig Farm option allows a minimum of N1 million for a unit and gives you 32% returns in 10 months.
All of these pig farms are located in Epe Lagos. Again, it comes down to the investor’s choice and availability of funds.
Farmfunded is another popular name in the space and even though most of its plans are sold out, there is one still open.
The integrated rice mill financing offers impressive returns but, it is strictly for investors who have funds to hold in the long-term. Because the company is trying to increase rice production capacity in Nigeria all investments have to be held for a minimum period of 24 months at the end of which the investors get 80% returns.
To make things easier, the investor may or may not cash out his 10% returns every quarter (3 months) but will not have access to the capital until after 24 months. This ensures that the farms have a stable capital base to grow and expand over the next 2 years. The thousands of acres of land to be used for these are located in Kano State Nigeria.
If you have N100,000 to purchase a unit, and you decide to wait till the end of the 24 months period, you would be receiving a profit of N80,000 and a total of N180,000. The profit is not compound, so even if you don’t take your profit, it does not form a part of your investment.
The farm is located in Kano state and allows investors to provide funds which will be committed into the procurement of milling machine, and processing of paddy rice to premium parboiled rice. Considering the gap between local production and actual demand for rice, this looks like a solid investment plan.
The company has also sought to protect its base by ensuring that investors may cash out their profits, but not the base investment, so that it can be ploughed in again for the next cycle.
Note, however, that whatever your choice of investment, you should consider the holding period as against when you would need to liquidate your investments. The crux of the deals offered is to engage your idle funds and help them grow while you continue your hustle.
On SEC: Last May, The Securities and Exchange Commission (SEC) proposed a new set of rules that will regulate crowdfunding businesses and deepen the capital market in Nigeria. This includes AgriTech firms like those listed above. The commission plans to regulate the crowdfunding business in Nigeria in order to reduce the risks associated with it for investors and financiers.
Disclaimer: This is not an investment advice or guide as Nairametrics is not affiliated to and cannot vouch for any of the AgriTech firms listed above. Kindly do your due diligence before investing.