There are 4 identified risks in farming that can affect the return on investment (ROI) of the farm backers: Farmer Risks
(i.e. attitude and ability of the farmer), Weather Risks
, Pests Risks and Market Risks
(i.e. change in supply and demand of the crops in the market). Cropital has mitigated the following risks through the following actions:
• Farmer Risks.
All farmers have been verified and selected through the assistance of the local government unit. Farmers are required to submit an application form, and barangay clearance and has to undergo an interview with Cropital. Only those who will pass the process will be allowed to join the program.
• Weather and Pest Risks.
Cropital has applied for insurance for the farmers under PCIC (Philippine Crop Insurance Corporation). This covers all risks under these two categories. Learn more about the crop insurance here
The remaining risk which is uncontrollable would be the market
prices of the crops which can decrease the revenue yield of the harvested crops.
For more information, visit our Risk Assessment and Management