Impact Farming is a powerful and innovative concept. It is a strategic investment in businesses that directly benefit society or our environment. This could be an investment in renewable energy, sustainable farming or infrastructure which aims to have a real-world impact beyond that of an individual investor’s bank balance or wealth.
If you are looking for an investment that’s both socially responsible and environmentally sustainable then Fedgroup’s Impact Farming investment platform may be just what you’re looking for as it offers you the opportunity to invest in sustainable farming assets in South Africa such as blueberries, honey and solar farms.
Why was I so excited to hear about the Fedgroup’s Impact Farming?
Solar energy, in particular, is not only sustainable, but also renewable. By supporting the use of solar panels, and investing in this form of renewable energy, we are also helping to reduce carbon emissions generated by more conventional sources of electricity while at the same time, generating a profit for ourselves. It’s a win-win situation for both the investor and the environment.
Honey bees are an important source of pollination. Some experts say that one of every three mouthfuls we eat has directly or indirectly benefitted from honey bee pollination. Some parts of the world have seen a measurable decline in the numbers of honey bees in recent years due to pesticides and disease. Investing in beehives thus becomes our contribution, no matter how small, to continued balance in our eco-system, as well as the production of organic honey in the process and a return on our investment.
How does Impact Farming investment work?
If you invest in a beehive, you own the beehive and the swarm of bees that you purchase on the Fedgroup platform, as well as all the honey and wax that they produce. The beehives are housed on the farms of accredited bee farmers.
Fedgroup takes care of the insurance and maintenance of your beehives, as well as the harvest and sale of your honey, which are all included in the purchase price. You will earn an income twice a year (around March and October) from the sale of your honey.
If you invest in one or more blueberry bushes, you own the biannual blueberry harvest from the blueberry bushes that you purchase on the Fedgroup platform. These bushes are housed on the farms of accredited blueberry farmers.
The insurance, care, harvest and sale of your blueberries, are all included in your purchase price. You will earn an income twice a year (around February and December) from the sale of your blueberries.
If you invest in solar panels, you own the solar panels that you purchase on the Fedgroup platform. Fedgroup then installs your solar panels on the roofs of commercial, retail and industrial properties. Also included in the purchase price is the insurance, maintenance and collection of your income from the landlord.
You will earn a monthly income based on the energy generated by the panels. At the end of the 20-year period investment, you could take physical ownership of the panel, or take advantage of Fedgroup’s buy-back offer at a guaranteed residual value of R1 000.
How much does it cost to invest?
Solar panels: R5 000 per solar panel
Blueberries: R300 per blueberry bush
Beehives: R4 000 per beehive
What will your returns be?
As with any investment, your income depends on specific variables, in this case, it is dependent on production, and as such it will vary. The following projections, however, having taken a host of variables into account, determine your expected annual rate of return:
Solar panels: 10% to 12% per year.
Blueberries: 12% to 14% per year.
Beehives: 14% to 16% per year.
All in all, you can expect the following income from your Impact Farming investments with Fedgroup:
Solar panels: R15 000 per solar panel over 20 years
Blueberries: R700 per blueberry bush over 8 years
Beehives: R9 000 per beehive over 10 years
How do you receive investment pay outs?
This money is paid into your online Fedgroup Wallet. You can leave the money in your Fedgroup Wallet or contact Fedgroup to activate payment every time your balance exceeds R300. All the money in your account accrues interest of 4.5% p.a. until it is paid out.
How do you start?
Begin by downloading the Fedgroup Impact Farming app on your smart phone, and then selecting the assets or mix of assets that you want to own, and purchase them. You can start from as little as R300, depending on the product you buy.
There are also no brokers’ charges, and Fedgroup’s only income is a small margin on the monthly management of your assets. This fee is already included in Fedgroup’s projections for the performance of your asset.
Disclaimer: Financial compensation was not received for this post. Opinions expressed here are my own.
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