FarmOn 2.0 | What's it About?

Basically, FarmOn 2.0 is an improved version of FarmOn 1.0, but in a different level.

First thing though, even though they have introduced FarmOn 2.0, I haven't received any news that the old FarmOn investment process (or the now called FarmOn 1.0) will be removed. (Although I'm not sure when will they open the next cycle for it)

As I visited the FAQ section on FarmOn's website, it has now been divided between 1.0 and 2.0.

To distinguish the old and new FarmOn investment, I will call it 1.0 and 2.0 from here on.

So what is FarmOn 2.0 all about?

It is no secret to FarmOners (if you've been active in the support group or even in FarmOn's FB page), that there were lots of complaints for the past cycles because of the decreasing rate of return on investments, longer harvest time for crops, less choices of products, difficult access to website during investment season, etc.

In summary, Farmon 2.0 is now introduced to address issues encountered from 1.0.

As what FarmOn said:

"FarmOn 2.0 will serve as a solution to the issues and concerns that we have encountered in FarmOn 1.0. Some of the problems that FarmOn 2.0 will answer are the following:

1. Some FarmOners worry about having limited ROI or having their product being replanted. Their fund will now be managed by an in-house fund manager who knows what project is a potential high earner. FarmOners' fund will also be spread to the six (6) different projects of FarmOn, hence, the chances of earning is more imminent.

2. Many FarmOners keep an eye on the opening of products. Some go online most of the time just to make sure that they are able to register and fund a specific product. With FarmOn 2.0, registration and funding may be done at your most convenient time without worrying for any closure that may happen anytime soon.

3. Funding is done only during specific seasons in FarmOn 1.0. Until any product is open, your fund remains dormant. In FarmOn 2.0, you can let your fund grow as soon as you wanted to."

The six (6) projects they mentioned where the fund will be spread out are:

1. Irrigation System
2. Farm Mechanization
3. Agro-Chemical, Inputs and Fertilizer
4. Post Harvest Facility
5. Rice Processing & Warehousing
6. Logistics and Rice Distribution

To which they claimed: This will totally eradicate the hit and miss problem that some FarmOners have experienced before when they funded a product that did not provide them with good ROI.

How funds work with the six (6) projects, I am not sure yet as I haven't been able to attend their RSVP for FarmOn 2.0 Forum last 28 March at Ortigas. (Will let you keep posted as soon as I am able to attend to one in the future to understand it more.)

So how does 2.0 work?

Registration is basically the same with 1.0.

When you click on the Become a FarmOner 2.0! button, you will be redirected to the login page.

If you don't have an account yet, you can register by clicking on the Register here link. And this is the same registration page for 1.0.

But the investment is different.

For 2.0, FarmOners will no longer need to choose any.

FarmOn's in-house fund manager will handle the fund and he will spread it o the six (6) different projects of FarmOn. That way, as FarmOn stated in the FAQ, the probability of not earning or not being able to receive ROI on time will be limited tremendously. Participation will no longer be on rice farming per se.

As you can see in FarmOn's product page which is now called Our Projects, 2.0 is not about the lot/plots where farmers will be planting but instead it is described as "Technology and Mechanization".

It is also Open, because it will be an all-year round investment. Meaning you can invest anytime to it whenever you are ready and have the funds for it. It is virtually open all the time, as they said.

There is no lock-in period for the investment, but keep in mind that 2.0 is a long-term investment. Ideally, a 5-year one to enjoy the benefit of the program.

But just in case an emergency arises and FarmOners will need their funds, withdrawal can be requested six (6) months after funding the project.

For the existing FarmOners of 1.0, we have the option to transfer our funds to 2.0. The process is I think just like the reinvestment one where we go to the Our Projects (before was Product Page), choose 2.0 and follow the process as is.

If you happen to invest in this particular project, the ROI will be computed through the current value of your investment:

Current Value = Current Rate Per Unit x Total Units of Participation

(Investment in 2.0 will be measured by unit which makes sense because we are investing in technology. Not sure yet how or where will they get the Current Rate Per Unit (CRPU) though. I will clear this up if I gather more information about it)

So how much is this 2.0 project?

Great news for small time investors, the price per unit is Php 100.

Here's a sample of the ROI for the next 10 years (they used a large number of fund such as Php 100,000 for us to feel it 😆)

I will update this or make a new post in the future for additional information about their new project.