In the Input Finance & Management Model a management agreement is established where the manager receives all finances, insurance and risk hedges in the name of the investor/bank. The investor/bank transmits all the risks on this to the intermediary or contract manager. Contract growing or the land is leased by the manager and the producers are employees of this company. Crops (silo certificate) are ‘owned’ by the manager. The manager gets inputs at lower cost thanks to reputation and economies of scale. Precision farming (satellite monitoring) is implemented. Geographical diversification framework serves to mitigate the risk.
INPUT FINANCE & MANAGEMENT
Our finance and production model conceptual framework is based on the comprehensive agricultural development finance value chain. The state and local governments are responsible for the enabling environment including policies, regulations, institutions and the overall business climate. This serves to support the financial and information flows needed to facilitate the inputs, production, processing, distribution and consumption along the agribusiness value chain. Farm Tressis takes responsiblilty for the finance and supporting services.
Other aspects of the framework include interdependence between the different segments of capital and information circulation along the value chain. Integration of primary production and finaince in an overall cycle. Spreading our the risk of the investment with insurances and collateral minimization. Implementation of new finance and productive mechanisms through this value chain integration.
PROJECT FEATURES
PROJECT INFORMATION
Date: 2022
Client: International Investors
Website: farmtrellis.com
Location: USA & Nigeria
Value: $1,000,000+
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