Ever heard of Farmon Philippines? It probably doesn't have a viral post shared on social media nor a get rich quick scheme for you to hate it for, but if you spare a few minutes to read this, you may end up either liking it or at least researching more about it before you decide whether or not to invest.
First of all, this is not a networking company nor am I promoting an MLM platform. ✌️
What is Farmon?
Farmon or FarmOn is a crowdsourcing platform where everyone can invest in farm products in order to help finance farmers as well as earn from their crops after harvest, without doing any actual farm work.
What happens if the crops are damaged?
Since climate related concerns such as typhoon or drought is sadly quite common in the Philippines, FarmOn will replant the products at no cost.
Does Farmon Work?
I don't have a lengthy history on the site but since I started, I've seen at least three cycles completed. A cycle may last for months, depending on the products chosen.
The process involves three periods:
- Investing --- this covers the time period when a cycle opens and investors are encouraged to choose a farm and crop/s, complete the paperwork (signed contract) and payment.
- Farming --- only the local farmers involved will take part here, while a FarmOner just waits.
- Harvesting --- crops are harvested, sold and the is profit distributed amongst members after all deductibles are removed from the revenue (I assume).
There are Farmoners who have shared more comprehensive product histories. You'll find those in blog posts and social media groups, Faceboook in particular.
How are you paid in Farmon?
I have actually not collected any funds yet. I intend to keep it on my vault and reinvest whenever a new cycle is available. But you can definitely withdraw if you want to collect earnings after each season is over.
After withdrawing the balance, it will be deposited to local banks such as Banco De Oro, Philippine National Bank and Security Bank. I'm not sure if other banks and options are available. You can always send a message to verify.
However, requests are only accepted from the first to the tenth of the month and will be processed at the end of that same month, so don't expect instant money. The interbank fees will also be deducted on the Farmoners' available funds.
What crops are profitable in Farmon?
I've read several posts with a calculation on potential ROI (Return on Investment). Some were based on their own experience on the site by testing several products at once. There are also those who have recommended crops based on what normally sells higher on the market or based on actual farmer's tips.
Some farm products sell well all year round but there are also those which are only profitable at specific seasons. It's why there is crop rotation. Rotating farm product types prevent soil erosion as well.
Personally, as well as based on comments from other community members, the profit seems to be declining for the same type of product. It could be because there are more members now, hence, the profit distribution is affected or they may have been a replant when some crops are damaged due to natural disasters. External factors are into play too, like the influx of imported goods; so, research well before deciding on a specific farm product.
Is it worth investing in Farmon?
I consider anything above 10% to be a profitable investment considering how it's only a passive stream of income. You're not physically involved in farm work. You also help finance farmers and ensure the continuation of farming in the Philippines. I have nothing against commercialization, industrialization and globalization or what not; but we still need to eat, and importing farm goods kills our local farming industry.
First Come First Served
Everything on the platform is on a first come, first served basis from replies to tickets or requests, profit distribution, withdrawal and also product funding.
So be on the loop though when a new cycle is open. One of the reasons why I missed cycles is because the crop I initially wanted was already fully funded so it's either I settle for something else or just wait for the next opening (which doesn't happen in months)!
The best way to be one of the first to fund your ideal crop is to follow Farmon's official Facebook page and be notified when they have a new post. It's where they announce a new cycle. Don't wait for the subscription email; it's normally sent when there's only a few farm locations left. I guess they want to have those funded too since everyone else has already chosen the other farms and products.
If the options left are just rice and banana, then you're already late. Most of the best crops are quite possibly already funded by that time. This is also one other way to find out which crops are potentially profitable. It's what other seasoned investors select.
Apart from the usual crops, other popular products on the platform include fish ponds and livestock (chicken or goat).
How to register for Farmon
Registration is actually easier now. You just fill up a form and attach proof of identification. However, there is a one-time fee of ₱300 which will be included on the contract.
Years back, it was on a referral basis. You'll need an existing member's information to signup. I actually just got mine from a forum. There used to be additional earnings from sign ups under your name too, similar to how downlines in networking companies work. But it's no longer needed to join the community now.
Farmon's Step by Step Process
So once you've decided to join and have completed the registration process, next comes funding actual products when a cycle is open.
From Farmon's FAQ page, this is the process:
Choosing a Product. The Farms page lists all farm locations, their size in hectares and a green menu below indicating whether or not it's available. If it is open, click the button to see crops available for funding and how much will it cost. There's a percentage to indicate the availability as well, i.e. 100% Funded and so on.
Contract. Select all crops you'd like to fund all at once so your contract is sent at the same time too. Only one contract is required per cycle, even for multiple product requests. The contract will be sent via email within 3-7 working days after requesting. Download and print the contract, sign it, scan it and send it back to Farmon using the message center. Attach the scanned contract through the same thread/ticket used by the site's Support so your documents are tracked properly.
In case you requested to have the contract notarized, there will be a fee of ₱250. The site will process it so you don't have to find a public notary office. I suggest you skip this to save on investment cost unless it's of a considerable amount invested.
Payment. Like the contract, payment needs to be settled within 6 days, otherwise it will be forfeited. Farmon will acknowledge and confirm within 7 business days.
Product History. The products will then reflect on your product history before the actual farming starts. The same applies with profit once harvest season is completed.
For all other questions, you can visit the FAQ page:
Farmon 2.0
To avoid a hit and miss situation in terms of profit earned, Farmon 2.0 was created. Here, funds are managed internally and will be allocated to products where there is potential better ROI. It will also include funding for other Farmon projects including irrigation, farming technology, facilities and distribution.
Farmon 3.0
There's not much info about Farmon 3.0 yet but based on community comments, it looks like an upgrade of the system following the Securities and Exchange Commission's updated rules and regulations regarding crowdfunding, SEC Memorandum Circular No. 14 (Series of 2019).
A Farmoner summarized the gist of the memo through this post:
Credit: Charles Soriano
Details are available through the expanded memo requested and published by Manila Bulletin.
Update (12/16/2019):
Farmon 3.0 details have been sent to registered users. Important changes which will affect both existing and upcoming members starting January 7, 2020 include the following:
*All Active accounts will be automatically moved to Farmon 3.0 for free. Inactive accounts will be deleted. They can be reactivated with a registration fee included.
Ongoing Farmon 1.0 and 2.0 projects will be completed first before the account gets moved. Accounts are considered Active only if there is an ongoing project or at least Php2000 balance on the vault. A maintaining fee of 50 pesos will be deducted every month once the balance fall below 2000 pesos and there is no active project.
*The previously optional notary fee will be required. 250 pesos is automatically collected as a Legal & Research fee for every project.
*Withdrawing funds will be allowed on any work day and will be processed within 3-5 banking days through the same merchants BDO, PNB, Security Bank and Western Union. User shoulders fees associated with the latter.
More information is available on the site's FAQ section. They can also be contacted through the usual channels listed below.
Report Amidst the Pandemic
Farmon has sent several reports from 2020 to this year (2021) amidst the COVID-19 pandemic. The reports are no longer on the Farmon site dashboard but copies of which may still be available in related social media groups which users have shared.
One notable update are the options available for those with pending balance amidst the pandemic. You can submit a cash withdrawal, convert the investment to rice, convert it to property, and delay withdrawal with the option to 4% annually.
Information
For more details that are not covered in this post, you may refer to Farmon's official pages:
Website - https://community.farmon.ph
Facebook - https://www.facebook.com/farmonph
Various Farmon related groups in Facebook are also awesome sources of information, inspiration, tips and more.
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