Shariah-Compliant Agriculture Financing through iFarmer: 

iFarmer follows the concept of Mudrabah for receiving and managing the fund for agriculture purpose. 

The iFarmer Mudarabah Investment Guideline: 

This is an agreement made between two parties-Party A, 'Financier' is known as ‘Rabal-Maal’ the one who provides‘ 100 percent of the capital’ for the project and Party B, "iFarmer" is known as a ‘Mudarib’ who using his entrepreneurial skills, manages the project.

munafas arising from the project are distributed according to a predetermined ratio. Any losses accruing are borne by the provider of capital. The provider of capital has no control over the management of the project.

The Mudarib (iFarmer) will collect the funds provided by the ‘Rab-al-Maal’ (Financier) for agricultural ventures and returns to the fund provider the principal and a pre-agreed share of the munafa. 

Mudarabah Implementation Guideline for iFarmer:

1. Two parties (Financier and iFarmer) execute Mudaraba Agreement by way of which they decide that one party will provide Mudaraba capital and another party manages the capital for a particular period. 
2. The munafa rate is to be pre-agreed between them. 
3. Mudarib (iFarmer) has management rights and, therefore, he will utilize the partnership capital in an agreed manner. 
4. At the end of the tenor, Mudarib (iFarmer) will return the principal and pre-agreed share of the munafa to the Rabal-Maal (Financier). 
5. If the business incurs a loss, it will be borne by Rabal-Maal (Financier) if there happens no negligence on the part of Mudarib (iFarmer). 
6. Rabal-Maal (Financier) is not liable for the losses beyond the capital he has contributed.

Portfolio brief of iFarmer's Currently Active Shariah Farm:

• Each Farm contains 20 cattle. 
• All the cattle funding is received between a specific timeline.
• All the 20 cattle are sourced within one month and the farm funding gets live on a specific date. 
• All the cattle are managed by our iFarmer Team for preset timeline will sell to the market for a better price and share munafa with Financier (Within the contract timeline)
• All transactions for Shariah Farms are maintained separately through Shariah Compliant Banks.

Partnership with Farmer:

• A partnership agreement is signed between iFarmer and Farmer.
• Whereas, Farmers are responsible for rearing the cattle. 
• iFarmer provides required management support to the farmer. 
• Farmer gets pre-decided munafa sharing for his service.

Munafa Distribution:

• Maturity = 12 months
• Financiers get provided capital and 40% of the munafa if made. 
• iFarmer gets 60% of the munafa including munafa sharing with farmers. 

Our Shariah Farms are based on a portfolio model, where the funder gets a munafa or loss portion based on the earning of the overall portfolio of 20 cattle of each farm, not on specific cattle. From our previous experience, our expectation of the earnings would be between BDT 12,375 (16.5%) to BDT 19,125 (25.5%).

For this farm, iFarmer has a farmer capacity of, 66000+ skilled farmers who have experienced livestock farmers with adequate training. iFarmer consists of sector experts who continuously monitor operations to minimize the risk of loss within their best capacity.

What is iFarmer?

iFarmer is an award-winning agri-fintech business that enables small-scale

farmers and Agri Businesses to maximize their profit. iFarmer bundles everything that a farmer needs: Farm financing, agriculture inputs, advisory, insurance and access to markets.

How do I join iFarmer? 

You as an individual or organization can join by downloading our mobile application from the Google Playstore (https://rebrand.ly/iFarmerApp) or the Apple App Store (https://rebrand.ly/iFarmerIOS-App) and completing the registration. For any further assistance, please reach out to us directly by writing to us at hello@ifarmer.asia or calling our hotline number at +880 130 253 6026.

What does iFarmer do? 

iFarmer empowers farmers and small/micro agri entrepreneurs by providing access to capital through connecting them with farm financing, training on best farming techniques, sales of farm produce to boost the quality and quantity of their farm production and also provide a healthy earning after harvest for both farmer and funder.

Are buyers given evidence on the livestock they are buying?

Each successful funding is carried forward in the following way:

1. Payment made through electronic fund transfers or cheque
2. Payment verified by Team iFarmer
3. Invoice is issued
4. The 5 working day refund period begins where the funder is entitled to a full refund (After deducting 2.5% transaction fee) if he/she requests for it
5. Following the end of the refund period, the fund is transferred to the field operations team for further perusal
6. 15/16 days after the date mentioned on the invoice, the certificate of ownership is issued, stating that the farm is fully operational.

The Certificate of Ownership explains the ownership of the asset and iFarmer’s responsibilities in this regard.

For any further assistance, please reach out to us directly by writing to us at hello@ifarmer.asia or calling our hotline number at +880 130 253 6026.

How much will I get as my earnings? 

Earning on buy is based on a profit-sharing or loss-sharing criterion, where farmer receives 50% of the munafa, the farm funder receives 40% of the munafa and iFarmer receives 10% of the munafa as service revenue. For example, if a cow with a purchase price of 45,000 BDT is sold for 65,000 BDT, the farmer will get (20,000x50%) = 10,000 BDT, the farm funder will get (20,000x40%) = 8,000 BDT and iFarmer will get (20,000x10%) = 2,000 BDT.

When will I get earnings on the farm I purchased?

iFarmer sells the cattle within 12 months from the date of purchase. Taking everything into consideration, the return is transferred into the fund provider’s bank account in exactly 12 months from the date of payment.

Who will take care of the livestock I purchased?

We have enlisted 500 experienced and trained livestock farmers for cattle rearing who will look after your buyed livestock under iFarmer’s supervision.

Can I contact the farmer taking care of my cattle?

A farm manager will be assigned to you and you can reach out to your designated farmer through your farm manager.

What will happen if my cattle dies or is stolen?

iFarmer has a team combined with agriculture production, aquaculture, livestock, agriculture supply chain, and relevant industry experts who carefully select each farmer and are dedicated to addressing any unavoidable circumstances within their best capacity during the production tenure. iFarmer team works relentlessly to reduce the market risk (production quality, market access, price volatility).

However, for any such incidents which fall under the clauses of Force Majeures (ie. including but not restricted to acts of God, acts or omissions of any government, or agency thereof, rebellion, insurrection, riot, sabotage, invasion, quarantine, restrictions, strike, lockout, and transportation embargoes), iFarmer will give written notice to the customer for its inability to perform.

How will I be helping the farmer?

You contribute by eliminating the need for loans which come with interest. This is a burden our farmers have been carrying for ages and with your help through iFarmer, they can move towards a better standard of living.

Can I choose my farmer?

No, you cannot since we as your asset-manager are responsible to ensure the best for your bought livestock.

How many cattle can I buy at once?

The quantity varies. Please check specific farms or contact us.

Can I keep the bought cattle for myself?

No, you cannot. iFarmer works on ground level with bulk buyers only.

Where will my bought cattle be sold?

Cattle are sold either in the local market or to institutional buyers.

What transaction mode does iFarmer use?

Payments can be made through one of the following methods or a combination of all of them, depending on the fund size and access to such services by the funder:

1. Electronic funds transfers (BEFTN and RTGS. NPSB not allowed)
2. Cheque (Values equal and greater than BDT 50,000/= can be collected by iFarmer if the funder is within Dhaka Metropolitan)
3. Fund deposit to the iFarmer bank account

Can I see the farm I purchased?

Yes, you may. Please check the “Farm visit” criteria on our terms of services to learn more about this process: https://www.ifarmer.asia/en/terms_of_services