How Investing In Crop Farming Works

September 11, 2024

How Investing in Crop Farming Works

Investing in crop farming with Sigmar Farms offers a unique opportunity for individuals to own a portion of productive farmland, without needing to get their hands dirty. With the power of technology and our transparent platform, investors can buy sections of land, follow their crops’ progress, and profit from the harvest. Here’s how it all works.

Investing in Crops Per Square Meter

At Sigmar Farms, crop investments are made on a per square meter basis. This means that when you invest, you're purchasing a specific section of farmland, marked with an RFID tag to ensure your ownership is tracked accurately. You can invest in a variety of crops, from staple products like corn, potatoes, and tomatoes, to more specialized produce, depending on the location of the farm.

This model allows you to own and manage a portion of the land, even from a distance. You’ll receive updates through the Sigmar app, which tracks the progress of your crops, informs you of any potential issues, and provides a clear view of how your investment is performing.

Risks in Crop Farming

While crop farming can be a profitable venture, it also comes with certain risks, just like any other investment:

  1. Crop Failure: If any crops within your section fail, you will be notified through the app. Depending on the type of crop, dead plants will be marked as a loss and reflected in your account. For example, if a field section of tomatoes doesn’t produce the expected yield, the loss will be recorded, and your app will be updated with the specific details.
  2. Market Fluctuations: The market price for crops can vary based on supply and demand, weather conditions, and other economic factors. If the market price drops, your produce may sell for less than expected. However, the flexibility to sell at different times or hold on to your crops allows you to adapt to market conditions.
  3. Environmental Factors: Weather plays a huge role in crop farming. Droughts, floods, or pest infestations could damage the crops, resulting in lower yields or total crop failure in extreme cases. Sigmar Farms uses advanced farming techniques to reduce these risks, but investors must be aware of their potential impact.

Crop Monitoring and RFID Tracking

Each section of farmland you own is equipped with RFID tags, allowing you to monitor the exact status of your investment. These RFID tags track your specific square meters of land and ensure that everything happening in your section is logged and updated in the Sigmar app. If crops in your area experience any issues, such as damage or slow growth, you’ll be promptly notified.

Depending on the crop type, dead or unproductive crops will be marked as a loss in your account, and you'll be updated on the situation. For crops that are not countable individually, such as grains or leafy vegetables, the total produce from your section will be weighed before being sold.

Harvesting and Selling

When your crops are ready for harvest, the Sigmar Farms team will weigh the total yield from your section. All measurements are recorded and published in the app, allowing you to track the exact performance of your investment.

After weighing, the produce is sold to the market, and profits are shared with you based on your ownership stake. Whether your investment is in a high-demand crop like tomatoes or a staple like corn, the selling process is seamless, and your app will keep you updated on market prices and sales.

If you're happy with your crops’ performance, you can reinvest or transfer ownership of your section to another buyer at any time, just as with poultry investments. The RFID information will be updated accordingly to reflect the new owner.

Managing Your Investment

The Sigmar app gives you full control over your crop investments. You can track your crops' growth, see real-time updates, and monitor your produce’s weight after harvest. The app will also provide regular market updates, giving you insights into market conditions, supply, demand, and price trends.

Every week, you'll receive an invoice with a detailed breakdown of costs associated with managing your section of farmland. These costs include irrigation, fertilizer, pest control, and labor. You're required to pay these invoices within 7 days to continue managing your section. If payment isn’t received on time, a warning will be sent, and after 14 days, your section may be reassigned, resulting in the forfeiture of your crop.

In extreme cases where unpaid debts match your initial investment, your land section may be frozen and transferred to the Sigmar pool, and your account could be flagged. A flag on your account would make it difficult to reinvest, and a "flag 1" status would result in a ban from using the Sigmar platform.

Benefits of Investing in Crops

One of the key benefits of investing in crop farming through Sigmar Farms is diversification. You can spread your investments across different crops and locations, reducing your risk exposure. For example, if one crop experiences a lower yield due to unfavorable weather, another crop in a different region may thrive. This flexibility allows you to build a resilient and profitable portfolio.

Additionally, crop investments are a tangible way to see the results of your investment. You can track your crops' growth, weigh the harvest, and directly benefit from the produce. Whether you're a seasoned investor or new to farming, the Sigmar app makes it easy to manage your assets and earn returns from agriculture.

Summary

Investing in crop farming with Sigmar Farms is an exciting opportunity for anyone interested in agriculture. By purchasing sections of land and monitoring your crops through RFID technology and the Sigmar app, you have the ability to actively participate in the farming process. From crop growth to harvest, selling, and profit-sharing, every step is transparent and easy to manage. While there are risks involved, such as market fluctuations and environmental factors, the potential rewards make crop farming a valuable addition to your investment portfolio.

With Sigmar Farms, you can contribute to the future of sustainable farming while growing your wealth through a secure and innovative platform.

Written by

Tirelo Oabile

CIO Sigmar

Combining my academic achievements with practical experience in researching and coding enables me to offer a well-rounded and insightful perspective on finance. I can make complex concepts accessible and understandable to a broad audience.

View tirelo's Publications

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