FarmFunded Risk Mitigation Policy

Reducing the risk inherent in the agricultural space we operate is of high priority to us and so we take and make pragmatic steps and decisions to ensure that these risks are mitigated.

We at FarmFunded have adopted and implemented the following strategies to mitigate our risks.

1. Agricultural Insurance Services: At FarmFunded, we ensure that all farms that are being funded are adequately covered by the insurance organisations rendering agricultural insurance services. Insurance Services are obtained usually to mitigate the incidence of Climatic Risks. Presently, we have reputable insurance companies providing cover for the farms.

2. Leveraging on the Technical knowledge of the farmers we work with: At FarmFunded, we work with farm organisations, farm clusters and co-operatives that have had years of experience in the crop/animal they grow. This measure is being taken to ensure that the risk involved is being reduced to a minimal level.

3. Futures Contract: Futures are contracts to trade given amounts of products at a specified date. Futures options provide the holder with the right (but not the obligation) to buy or sell contracts of products at an agreed rate within a period of time, in return for a fee paid to the seller of the option. At FarmFunded, we have contract agreements with offtakers to purchase the farm produce at the end of the farmcycle. So there is an assured market for the farmer at the end of the farming season.

4. Hedging: Hedging the farm produces with the traders/offtakers we work enables us to mitigate the risk that we may face as a result of price fluctuations. This measure helps to mitigate the market risk that we are being faced with.

5. Verification of Inputs/Foundational Resources: At FarmFunded, we ensure that high quality agricultural inputs are purchased as this enables the crops/livestock to be of high yielding and also it enables FarmFunded to curtail inputs risks.

6. Access to Extension Services and other farm support services enables the farmers to acquire best agronomic practices in their work.