Making money out of farming without owning a farm

Maya Fisher wrote that investment is naturally an attractive opportunity as more attention is paid to protecting our environment
I\'m not always excited about a new investment opportunity, but I have to admit that I really like the concept of the impact of the Fedora Group on agriculture.
This is easy to understand and has the potential to have a real impact on agriculture in South Africa, while also giving investors a decent return.
As an investor, you will buy blueberry bushes, honeycomb or solar panels, and experts will make sure that your assets get the most possible benefits, not grow them yourself.
Fedgroup is a fully diversified financial services group with a department dedicated to generating revenue through real estate investment.
CEO Grant Field sees opportunities to provide alternative income for investors --
Create assets while bringing crowdfunding solutions to agriculture.
Fedgroup has invested in several farm and solar panel projects to learn how to use them to provide fixed income to investors.
After testing the return for a year, it has provided assets to the public through the Fedora Group app, which can be obtained through Google Play and the Apple App Store.
This may bring real momentum to agriculture in South Africa, as Field envisions the use of this model to encourage commercial farmers to work with smaller farmers to develop their technology.
At the same time, it also provides investors with income to choose from.
Generate asset categories.
Investors buy blueberry shrubs, solar panels or honeycomb directly and earn revenue from the products.
What you need to know is I spent 14-year-
The old son takes about five minutes to figure out how it works because the Fedgroup app is easy to use and explains the concept by providing the necessary details of the asset.
The chart on the app shows how the revenue is distributed.
Income intervals as income relates to harvest yield, blueberries and honey only earn twice a year.
Because solar is being farmed all year round, the income is monthly, although it depends on the number of sunny days.
Income varies. Income will be inconsistent during this period.
For example, in the case of blueberries, it takes time for the bush to bear fruit and reach its maximum yield-you can only get paid based on the number of berries harvested.
For example, you will only earn R12 in your first year (4%)
But in the eighth year you will get R72 (24%)per bush.
The Hive will give you R180 (4. 5%)
First year and R1 120 (28%)
In 10 years, solar energy will give you R400 (8%)
First year and R1 600 (32%)in year 20.
There is no capital gain, only final income, there is no value in your plant, hive or panel, so there is no capital payment.
The return shown on the app is an internal rate of return to account for the profitability of the investment.
Keep in mind that your actual Rand return will be higher as you will also have to pay for depreciation of your assets.
Real income is between 17% and 21% per year.
In the case of hive, you will invest R4 000 and receive R9 000 within 10 years, so, in theory, your return minus the capital of the investment is R5 000.
You can do it again if you don\'t need income
Put income into one
Buy more agricultural assets and build a portfolio.
This will increase your total return as it will have a compound effect. Long-
When you purchase an actual factory, hive, or panel, you are locked into the entire life cycle of that asset for eight, ten, or twenty years, respectively.
Fedgroup is creating a secondary market for those who need to withdraw from the investment, however, ideally, you should only invest if you can invest for a long time.
Taxable income this is not a fund but a direct ownership of the asset, and the income paid is the income of your asset, not the dividend.
Since investors have personal assets used to generate income, the income generated will be taxed as part of the income tax.
However, there are several tax breaks that can be applied for, such as section 11 (e)
Loss of income-
Generate assets.
You can also generate electricity from renewable energy and agriculture as required by Article 12B of the Income Tax Act.
While Fedgroup helps clients with the paperwork they need to submit these claims, they do not provide tax advice and asset owners need to state the best benefits available to their tax practitioners.
Currency wallet cash is stored in the influence agricultural wallet of each asset owner, where interest is earned at 4 points.
Linked to the repo rate, 5% per year.
The asset owners can put the money in their wallets as long as they want.
When the balance exceeds the R300, they have the option to pay them.
They can choose to automatically pay the money each time the wallet reaches R300 or later, or reinvest the money into the wallet and receive the payment upon request.
They can also use the money to buy additional assets.
Fefefedgroup charges a 1% platform fee, for example, R3 will be charged per year per blueberry bush.
The return shown is deducted.
Insurance assets are covered by insurance, so you won\'t lose money if hail destroys a hive or solar panel, or if your blueberry bush dies.
With the insurance of assets, the risk of losing your money is very low.
The risk depends on income generation, because it will depend on the output of the assets, which, although managed by experts, has never been guaranteed in terms of agriculture.
Also keep in mind that income will increase over time, so this is not for those who need maximum income in the first year.
Ideally, you should build a portfolio that provides a diversified revenue stream and then re-
Invest in part to maintain the value of capital.