Just over 3 weeks ago South Africa went into lockdown in order to slow down the spread of Covid-19. This lockdown was further extended until the end of April. Many industries have been affected, and many people are going to lose their livelihoods as a result. Agriculture has not been spared from this disaster.
When agriculture sneezes (excuse the metaphor), many industries catch a cold! For example fertilizer and input manufacturers, input suppliers, people in food processing and packaging, people in FMCG all the way down to tourism. The bottom line is that people need to eat.
In order for people to eat and for the downstream industries to survive we need to support our farmers. Farmers are at the frontline of production. Farmers will face several challenges some of which include access to finance, access to markets and loss of labour.
In order to help farmers YouFarm South Africa has stepped up to the challenge. Traditional financial institutions are not addressing the funding needs of farmers and finding safe, insured and profitable alternative investment options have always been a challenge for everyday individuals. YouFarm provides a solution to these 2 problems through the YouFarm Crowd Farming Platform.
YouFarm provides farmers with access to collateral-free finance by getting people to invest in crops and livestock and share the profits with the farmers when the produce goes to market. From as little as R200 you can partner a farmer and become a part of the agricultural value chain. The best part is that you get your returns as soon as the product goes to market. Some products can take 5 weeks to get to the market and some can take up to 6 months, so it really depends on you!
So how does the profit share work? Say for example a farmer needs R1000 to grow tomatoes and the tomatoes fetch R2000 at the market the first R1000 goes towards paying back what the partners put in and the remaining R1000 is the profit. The farmers take 40% of the profit, the partners take 40% and YouFarm takes the remaining 20%. So if you partnered with the farmer and put in the full R1000 you would walk away with your initial R1000 plus R400 after the time it takes for tomatoes to get to market. If you put in R200 you would walk away with your R200 plus a profit of R80. It’s a very simple yet powerful concept! Shared economies!
At YouFarm we realised that there are farmers all over South Africa who will need support post COVID-19. So in response, we are looking for passionate people who want to change the way agricultural finance is done in South Africa. We are looking for people who want to earn money and become a part of the agricultural value chain by becoming YouFarm franchisees!!
So whats does a YouFarm franchisee do? YouFarm franchisees are responsible for finding farmers in their communities, and working with them to make sure that they get funded and that their produce gets to market! YouFarm South Africa assists franchisees by providing them with training and linking their farmers to our global network of people who are looking to partner up with farmers by becoming micro impact investors.
The franchisees get to share the profits with the partners and the farmers. YouFarm South Africa takes care of everything else so that the YouFarm franchisees can focus on getting farmers funded and producing quality produce. Together we can ensure that our farmers get the support that they need.