Farmsponsor is bringing a new voice to Agri-Tech in Nigeria; here’s how

Speaking in a brief interview with Farmsponsor’s Leadership, we dive deep into the company’s vision and what distinguishes it from its counterparts.

WHAT’S THE STORY BEHIND FARMSPONSOR?

Farmsponsor was born out of the zeal and passion for food security in Africa. As a child, I watched my mum give great care and attention to all her livestock. The dedication and time she put to make sure these livestock were well-taken care was intriguing to me, and it made me pick interest in livestock farming. Since then, it hasn’t changed.

In 2017, I decided the time was right to go big in agriculture, I began looking at ways to raise capital. Then the day came when I was surfing the internet and stumbled on the website of a company headquartered in Kenya. The company was focused on the rearing of cattle and raised capital for the business through crowdfunding with the agreement that proceeds from the farm are shared between the funders and the company.

I took my time to study their model as well as other foreign agri-tech companies and in 2018, we launched our very first crowdfund. In our first outing, we crowdfunded for two hundred and fifty thousand Naira, but we got just one sponsor who was a friend actually. She sponsored with a hundred thousand naira, and believe me, that was a huge breakthrough for us, it was more than half our target!

We then brought in 250 birds, raised them in 6 weeks, finished the sales in week 7 and paid our sponsors in week 8. The next thing we did was to crowdfundagain, this time for five hundred thousand and we got a little above three hundred thousand Naira - another success! We brought in 500 birds and sold them off in less than 8 weeks.

This was how we kept on increasing our capacity until it became so important that we started investing further down the value chain.Today, we have grown to have investment across the value chain of poultry farming, with our hatchery and feed mill kicking off operations in September and October respectively.

WHAT IS FARMSPONSOR’S MISSION?

Our mission is to drive the participation of everyone in agriculture using technology with a vision to ensure that food is available for everyone by getting everyone involved.

When you take a look at the history of agriculture in Nigeria, it dates far back to the pre-colonial rule in Nigeria. At that time, food production was a predominant occupation. There was self-sufficiency in our food supply, with a vast expanse of arable land and well-distributed rainfall. Agriculture played a progressive role in Nigeria's economy, serving as the major source of income for our country’s population.

However, over the years, agricultural activities not just in Nigeria but in Africa and around the world have drastically reduced. The global citizen reports that, as the human population continues to climb, food production is on a fast downward curve. The Humanitarian Organization (OXFAM) predicts that the world will run out of food by 2050. This is what drives us at Farmsponsor. We aim to return back to the glory days of agricultural prosperity in our country.

Farmsponsor is bringing a new voice to Agri-Tech in Nigeria; here’s how Pulse Nigeria

WHICH AGRICULTURAL SECTORS IS FARMSPONSOR FOCUSED ON?

Farmsponsor is focused on poultry production. We are also leveraging technology to provide agricultural financing to farmers.

WHAT MAKES FARMSPONSOR DIFFERENT FROM COUNTERPARTS?

Farmsponsor is unique for many reasons. One is our focus on the poultry business. We can say that we have mastered the act of poultry business in Nigeria. Another thing that distinguishes us is the sustainability value we give to our investors. This is because unlike some of our competitors, we have actual investment in the value chain of the poultry industry.

Also, what sets us apart is our multiple farm cycles that allowsinvestors to always have somewhere to put their money all year round while getting premium value and rest of mind.

WHAT ARE SPONSORSHIP OPTIONS DOES FARMSPONSOR OFFER?

Regular Sponsorship:

The regular sponsorship offers sponsors a sponsorship window that lasts for a period of 12 weeks. Here sponsors can invest a minimum of N100,000/unit with an ROI of 15% over the farming cycle.

Farmsponsor is bringing a new voice to Agri-Tech in Nigeria; here’s how Pulse Nigeria

VestBanking Wallet:

In a bid to keep delivering added value to our sponsors all year round, we introduced a VestBanking platform. With this option, sponsors can vest their funds with Farmsponsoruntil a new sponsorship window opens. The benefit of this option is quite enormous as it allows sponsors to participate in sponsorship windows in advance, on time and before the units are all sold out.

Equity Sponsorship:

Earlier, we spoke about our mission to drive the participation of everyone in agriculture using technology. The equity sponsorship option was created to speed things up for our farm expansion plan. We decided to source funding from private equity sponsors who are interested in a medium-term investment of five years with a minimum equity contribution of N1,000,000 per sponsor. This debt finance would be serviced by Farmsponsor for five years at the following rates:

First Year - 17% first six months & 20% second six months

Second Year - 22% first six months & 25% second six months

Third Year - 25% first six months & 25% second six months

Fourth Year - 28% first six months & 28% second six months

Fifth Year - 30% first six months & 30% second six months.

In the five-year period, our private sponsors receive a return of 250%. Also, at the end of this period, a debt-equity swap option is open to private sponsors to convert all debt to an equity stake, giving private sponsors ownership interest in Globetrot Farmsponsor Nigeria Limited.

Farmsponsor is bringing a new voice to Agri-Tech in Nigeria; here’s how Pulse Nigeria

WHY SHOULD ANYONE INVEST IN AGRICULTURE?

If the report of OXFAM is anything to go by, then that is enough reason for everyone to get involved. There really isn't any better asset to own than a farm whose value over a long term increases in value and keeps pace with inflation. Food is the one thing people are not willing to cut from their budget. When you invest in agriculture you are investing in an industry that is more sustainable than the stock market. This industry has enormous potential. And as an Agric-Tech company we know better than anyone because we witness its successes every day.

HOW IS FARMSPONSOR CONTRIBUTING TO FOOD SECURITY IN NIGERIA?

We have successfully empowered 2000+ local farmers with the capital and skill to ensure they have better returns. Also, in keeping to our word and getting everyone involved in agriculture we have created over 35+ farm cycles, with over 7000+ engaged sponsors. We are aggressively achieving milestones that will position us as the foremost player in agriculture production in Africa.

Want to take advantage of any of Farmsponsor’s investment options? Visit farmsponsor.com.ng to register.

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