Shariah Compliant Maize Farm
5% to 8%
Shariah Compliant Maize Farm
Maize is one of the most important food grains in the world as well as in developing countries like Bangladesh. The Government of Bangladesh is introducing maize cultivation in winter and summer seasons, and we started to actively expand maize production from 1996. It is a fast growing crop and a high energy food having highly digestible carbohydrates for human nutrition, cholesterol free oil, moderate levels of protein and a good quantity of trace minerals. Maize could be a good source of protein, carbohydrate and lipids for the under - and malnourished population of Bangladesh. Animal feed in the country is severely deficient due to the lack of an organized feed industry and non availability of grazing land. Thus, maize plays an important role as animal feed and fodder fed as stover, green fodder or as silage. Maize is also an excellent poultry feed. Maize can be grown all year round in Bangladesh and can therefore be fitted in the gap between the main cropping seasons without affecting the major crops.
It can be harvested as fodder within 50 days of planting, as green cobs within 60-80 days and as grain within 100-130 days of planting. This flexibility allows the crop to fit easily into the cropping pattern.
We will be focusing on both fodder and grain production to supply wholesale to Feed mills at a market going price at the time of the yield.
Project Duration = 06 months or 180 days. Financiers get investment capital and 50% of the profit or loss if made. iFarmer gets 50% of the profit or loss including profit or loss sharing with farmers.
For people who are interested to be part of this farm, they can purchase a value per unit of BDT 25,000 or equivalent to 1,350 kg of Maize. The duration of the project is 6 months or 180 days with a projected profit sharing of 5% (BDT 1,250) to 8% (BDT 2,000) which will be distributed at maturity.
The funder will be receiving a yielded return after 6 months (180 days), and at the end of the investment tenure, the funder will receive profit and actual funding amount.
iFarmer consists of sector experts who continuously monitor operations to minimize the risk of loss within their best capacity.
Shariah-Compliant Agriculture Financing through iFarmer:
- iFarmer follows the concept of Mudarabah for receiving and managing the fund for agriculture investment.
- 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.
- Profits arising from the project are distributed according to a predetermined ratio. Any losses accruing is borne by the provider of capital. The provider of capital has no control over the management of the project.
- The Mudarib (iFarmer) will invest the funds provided by the ‘Rabal-Maal’ (Financier) for agricultural ventures and return to the investor the principal and a pre-agreed share of the profit.
Mudarabah Implementation Guideline for iFarmer:
- Two parties (Financier and iFarmer) execute Mudarabah Agreement by way of which they decide that one party will provide Mudaraba capital and another party manages the capital for a particular period.
- The profit rate is to be pre-agreed between them.
- Mudarib (iFarmer) has management rights and, therefore, he will utilize the partnership capital in an agreed manner.
- At the end of the tenor, Mudarib (iFarmer) will return the principal and pre-agreed share of the profit to the Rabal-Maal (Financier).
- 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).
- Rabal-Maal (Financier) is not liable for the losses beyond the capital he has contributed.
Portfolio brief of iFarmer's Currently Active Shariah Farm:
Our Farmers will produce fodder and green crops. Within 182 days our farmers will cultivate 3 cycles(50 days each cycle) of fodder and 2 cycles(60-80 days each cycle) of green crops. iFarmer will supply all these maize products to animal feed mills at market rate. We will also provide input, pesticides, and seeds to the farmers. All the maize storages are managed by our iFarmer Team for a preset timeline that will sell to the market for a better price and share profit 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 maize production.
iFarmer provides required management support to the farmer.
Farmer gets pre-decided profit sharing for his service.
How It Works
What is iFarmer?
iFarmer is an impact tech startup that has developed an innovative online platform which enables anyone to be a funder in farming and livestock in Bangladesh.
How do I join iFarmer?
You as an individual or organization can join through an online registration using your Gmail/Facebook account or can register directly at iFarmer office.
What does iFarmer do?
iFarmer is an impact tech startup based in Bangladesh which aims to connect individuals willing to be a funder in agricultural and livestock farming with farmers seeking easy access to capital. Our idea is based on the asset-sharing model, which has been a very common practice in our rural landscape for ages. We want to portray ourselves as portfolio managers for our funder's agriculture and livestock shares.
What costs should be paid by the funder?
This depends on what you would like to fund. We have different portfolios with varying degrees of funding opportunity, return and maturity. To fund, you need to register through our website and make payment using your card or other available options of your choice. You can also issue a cheque in favor of iFarmer Limited.
Are funders given evidence on the units funded?
Each funder has evidence in the form of a Certificate of Ownership in their email, which also explains the ownership of the assets and iFarmer’s responsibility as an asset manager. In addition, an invoice will be issued right away in an individual’s/organization’s email after payment has been made. For every transaction through a cheque, a money receipt is provided to the issuer along with all other documents mentioned above.
How much will I get as my return on funds?
Return on fund is based on a profit-sharing criterion, where iFarmer receives 50% of the profit, the farm funder receives 50% of the profit. For example, if 1,350 kg of maize with a purchase price of 25,000 BDT is sold for 45,000 BDT, then farmer and iFarmer will get (20,000x50%) = 10,000 BDT, the farm funder will get (20,000x50%) = 10,000 BDT.
When will I get a return on my fund?
iFarmer sells the maize within 6 months or 180 days. Taking everything into consideration, the return is transferred into the funder's bank account in exactly 6 months or 180 days from the date of payment.
Who will take care of my funded farm?
An operator for the farm is appointed who will be looking after the storage under iFarmer’s supervision.
Can I contact the designated person taking care of the farm?
A manager will be assigned to you and you can reach out to the designated person through your manager.
How will I receive updates related to my farm?
We will be posting live updates about the goods in the farm from time to time.
What will happen if the potatoes are spoilt or are stolen?
iFarmer consists of sector experts who are dedicated to counter any unavoidable circumstances within their capacity. However, in any given situation where the risk cannot be mitigated, we will try our level best to compensate for your loss using the available benevolent fund.
How many units can I fund at once?
The quantity varies. Please check specific farms or contact with us.
Can I keep the funded units for myself?
No, you cannot. iFarmer works on ground level with bulk buyers only.
Where will my funded units be sold?
iFarmer has a dedicated supply chain division through which goods are sold in bulk in the local market or to institutional buyers.
What transaction mode does iFarmer use?
You can pay through our secure online system or issue cheque in favor of i-Farmer Limited.
Can I see my funded farm in person?
Yes, you may. You must inform us in advance to ensure that you get the best welcome possible.
Who will be storing the maizes?
iFarmer and the maize farmer both would be working together to store the maizes.
Where is the farm located?
The farm would be operating in Bogra.
Not convinced yet?
Team iFarmer understands the value of your time, faith and money. Our team continuously appraises your funding for something much greater than monetary return.
Refund your Funding
iFarmer allows you to take back your funding within 1 week with 100% refund.
iFarmer team consists of sector experts with professional experience working in various high valued national and international projects.
Certificate of Ownership
Each funder will be provided with a Certificate of Ownership Farm (COF), which also explains the ownership of the unit with complete details.