How Do We Manage Risks?

It is a fact that there are risks involved in farming. This is where the core business of Cropital comes in, providing structures that reduces risks and increases profitability.

The risks in farming are faced and endured by our smallholder farmers everyday.
Their limited resources and financial debts hinder them from opportunities to enhance their lifestyle.

Cropital plays a part in reducing these risks, to protect both the users and the farmers.

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 Risks

Farmers are provided with access to crop insurance. The crop insurance under Philippine Crop Insurance Corporation has already been integrated in the amount of capital raised to these farmers.


Pests Risks

This usually occurs when farmers have very limited capital. With the access to capital, pests can be prevented. Farmers are also provided with access to agriculturist to infuse best practices in pest prevention/mitigation. Crop insurance also covers damages from pests.


Market Risks

For high value crops, prices are volatile and may drop and spike at different times, depending on the supply and demand in the market. This is managed by recommending diversification of crops for each farmer, and by clustering different farmers together to further distribute the risks.


Aside from this, Cropital sets a cap on the amount of money you can invest on a farm. This is to encourage spreading out your money to different farms so as to lessen the risk to the user in case of unfortunate events.