A few weeks ago, FarmOn sent a status update and report on their recovery efforts, withdrawal updates as well as properties for sale. Below is a copy of such email report, for those who were not able to receive or read it.
For those who still need to withdraw their investments, try sending them a direct message using the message center in the FarmOn website (you must be logged in to do this). I tried this and I got a response that my request has been queued. Better than nothing, I suppose.
One may do this even if the actual funds are not yet harvested (mine was invested in rice circa 2019, but there seems to be no harvest in sight). Ordinarily, once funds are available, there will be a withdrawal form in the website, where the user can fill up the details of withdrawal request. But since there is no available fund in my vault yet (not yet harvested), the form is not enabled. I opted to send them a message instead, and I got a reply after a few days. The funds are not yet credited to my bank account as of this writing (request was a few weeks ago), but at least, my request has been queued, as they told me.
FarmOn started strong, and gained popularity, giving out handsome returns to investors and funneling much-needed funds into our agricultural sector. Nonetheless, they suffered a liquidity squeeze (much like many other businesses) as operations were halted or slowed down, demand and revenues dropped, plus the increasing withdrawal demands and impatience from investors who need to pull out. Perfect storm.
In below report, FarmOn details their recovery efforts, even as the country and economy are still ravaged by this pandemic for more than 1 year now. Salient points are:
- FarmOn is operational, subject to IATF guidelines on level of manpower, social distancing, skeletal forces, etc
- They are trying to increase capacity and use technology to lower operating costs while increasing speed and efficiency
- Open other sources of income such as hardware store, and machinery rental
- They are disbursing withdrawals and investments at rate of 4-million per month (target is 8-million starting June 2021)
- They are selling real estate properties to increase their liquidity and cash position – to also service withdrawals
Below is a verbatim copy of their report.
Apr 2021: Report Amidst Pandemic
It’s been more than a year since the first lockdown was imposed due to COVID-19 and this pandemic has really affected us so much physically, emotionally, spiritually and mostly financially. Much has changed in our lives even from the way we do things. Difficult as it may seem but it is what it is and we have to move forward and adapt to the new normal.
Though we are still far from where we were before the pandemic, we are slowly getting there. On this update you will find a more detailed report on how we are doing so far.
Grains and Greens
As of this writing, we are milling rice at a rate of two hundred metric tons per month (200MT/mon) and from that we are earning two million pesos (Php 2,000,000) per month. To be able to give returns to FarmOners at a faster rate we would like to increase that by fifty percent (50%) or three hundred metric tons (300MT) per month. Consequently, we will also be earning three million pesos (Php 3,000,000) per month as a result.
Farm mechanization is one of the programs that we are pushing forward even prior to the pandemic and to date we have twenty (20) tractors, twenty (20) combined harvesters, five (5) drone sprayers and five (5) riding type transplanters. Because of these farm machines, we are able to farm a combined area of two thousand hectares (2,000 has). This setup is providing us with a profit of ten million pesos (Php 10,000,000) per cropping season.
FarmOn started it all with the Growership program and despite the pandemic we are still maintaining it. Due to restrictions and other concerns though, we have limited it to 1,000 hectares. Through this program we are expecting additional income of ten million pesos (Php 10,000,000) per cropping season.
Much as we would like to temporarily stop the program because we still have uncollected debts amounting to thirty million pesos (Php 30,000,000) but the farmers need the program now more than ever. What we did is just to make necessary adjustments such that this incident will not happen again. Besides, the reasons why the farmers were not able to pay are valid.
Under the growership program, we are also partnering with agriculture associations and cooperatives. Due to the pandemic, we have an undistributed farm input amounting to forty million pesos (Php 40,000,000). Through the partnership, we will supply the farm inputs of their members and we will be using the B2B approach.
Trading and Quarry
One of the Income Generating Programs that we have intensified during the pandemic is trading and quarry. We are happy to inform you that we have already established Mauban Hardware and Construction Supply. Though this project has just started, it is already generating a decent income of one million pesos (Php 1,000,000) per month. With the marketing approaches that we have just implemented, we are expecting to have a 50% increase in the coming months.
Heavy Equipment Services
As we are gearing towards full mechanization, we cannot avoid industrializing agriculture. To do this, infrastructures like warehouses, solar dryers, mechanical driers and land development has to be done. We have been doing this before the pandemic but we have to stop temporarily as a result of the economic restraints that we are now facing. In view of this, we started renting out our heavy equipment. The heavy equipment are earning five hundred thousand pesos (Php 500,000) per month. During the pandemic we are doing an extensive marketing campaign and we are planning to hit the goal of two million pesos (Php 2,000,000) per month.
We are currently developing the farm for hog and chicken production in San Antonio, Rosales, Pangasinan. The farm will be able to accommodate one hundred (100) sow and ten thousand (10,000) free range chicken hen. Land development and construction is on-going and it is expected to start earning by January 2022. At that time the project is expected to earn two million pesos (Php 2,000,000) per month.
COVID 19 has resulted in drastic changes in our lives and in our daily activities. Many establishments and companies have closed during the pandemic and we, on the other hand, have been struggling since the first lockdown started. Despite that, however, we were still able to return investments at a rate of four million (Php 4,000,000) per month. With the recovery plan kicking in, we are optimistic that we can reach eight million (Php 8,000,000) per month starting June 2021.
Properties for Sale
On the side note, we are announcing the sale of the following properties:
- Alicia Warehouse and Post Harvest Facility – The modern post harvest facility sits on a 3.3 hectare property that is located in Victoria, Alicia. The facility has an office in the front and a house behind it. The facility has 2 big warehouses and drying may be done via the traditional solar drier or mechanical drier. There are six (6) thirty-ton (30MT) capacity mechanical dryers. It also has a modern multi-pass rice mill that has a capacity of five metric tons (5MT) of rice per hour. The price for the Alicia Facility is one hundred eighty million pesos (Php 180,000,000).
- San Manuel, Echague Farm – This is a well developed 98-hectare farm. The farm is complete with a private road network, its own water impounding facility, office space, fish ponds and staff house. This integrated farm is currently planted with bananas, mangoes, ang paper trees. A new free range farm for chicken was also constructed. With all the developments, this farm is now on sale for one hundred (Php 100) per square meter. All of the facilities built on the farm will be given away for free.
- Bannawag Sur, Diffun, Quirino Office – This is where FarmOn started, the first building, first warehouse and the first ever farm. This two-hectare farm has its own office building and warehouse. It is now up for sale for a price of twenty million pesos (Php 20,000,000)
- Abullug, Cagayan Warehouse and Office – This property is located along the highway. It has a 2-storey building which can be used as a residence, office and warehouse at the same time. It is now up for sale at fourteen million pesos (Php 14,000,000).
- Lal-lo, Cagayan Mini Warehouse and Office – This property is located along the highway and is near Magapit bridge. The property is partially developed and it has an office and a small warehouse. It is for sale at the price of two million pesos (Php 2,000,000).
- Sanchez Mira, Cagayan Property – This property is supposedly for the expansion of FarmOn but due to the pandemic it is now for sale at five million pesos (Php 5,000,000). This property is also located along the highway.
The above mentioned properties are put on sale so that we can speed up the giving out of investments that is why we are not only letting you know about the plan but we are also encouraging you to help us sell the said properties.
Thank you for your continued support, keep safe and stay healthy.
FarmOn Agri-Community Corp.
(+63) 906 495 1856
(+63) 939 357 4209
#577 Batal, Santiago City, Isabela, Philippines 3311
Images from FarmOn email.