There are four main risks in farming that can affect the return on investment (ROI) of farm backers: farmer risks
(i.e. attitude and ability of the farmer), weather risks
, pest risks, and market risks
(i.e. change in supply and demand of crops in the market). Cropital has mitigated these risks through the following actions:
• Farmer risks
: all farmers are verified and selected through the assistance of local communities. Farmers are required to submit a comprehensive application form with supporting documents, and have to undergo an interview with Cropital's field officers. Only those who pass the process will be allowed to join the program.
• Weather and pest risks
: on behalf of the farmers, Cropital applies for insurance policies with the Philippine Crop Insurance Corporation. This covers all risks under these two categories. Learn more about PCIC through their website
• Market pricing risk
: Cropital has built, and continues to maintain, an extensive network of partnerships with various players in the agricultural value chain. This allows us to implement market-matching programs to alleviate the volatility of supply and demand for various crops.
For more information, visit our Risk Assessment and Management