Image by Timur Kozmenko

Wealth Planned Farming

Methodology

Wealth Management is a proven strategy to build wealth through planning of finances, assets and investments.

 

Farms are assets into which farmers apply time and capital along with their effort. These are all financial metrics applied to wealth management planning.

If crops are considered to be the investment of the farmer, then clearly maximizing the investment returns and structuring them to build asset value of the farm will build wealth.

Extending this thinking beyond the farm into a number of farms and we can see economies of scale and protection of crop values through a number of farms being coordinated to cultivate crops or forestry to meet larger trade demands. 

Better crop cultivation standards will further build trade volume and value. This is a wealth management agenda. Raising farm production standards will further enhance the business value of the farm as a going concern as will protecting the soil health of the farm.

If more attention was applied to better crops for the farms aligned to larger trade demand, then the production value relative to land will increase, Balance this against maintaining the health of the soils which is the engine room for productivity, then the plan begins to take shape into a long term wealth generation and protection strategy for farmers and an economy. 

The crop mix relative to markets is then critical in the decision making process. 

Mono-culture cropping, one crop cultivation, is a dangerous yet common occurrence from many under-resourced farms. This single crop strategy literally puts all the commercial eggs in one basket, One infestation and the whole farm is at risk. 

A mixed crop strategy reduces crop risk and spreads commercial incomes for the farm. This is a portfolio risk management strategy. It is also beneficial to the farm to apply permaculture methodology which creates an ecosystem of crops that assist each other by jointly developing their environment in which they all co-exist.  This permaculture blend can add as much as 30% to the Land Equivalent Ration (LER) production rates compared with mono-culture cultivation. Applied in an alley-farming strategy, infestations, especially if they are carried by the wind. How many farmers know about these techniques or the soil health? How many even have access to these strategies? Already efficiencies in communication make these open source wealth management driven strategies productive for all farmers globally. 

At the heart of the Wealthy Farmer Program is the blend between forestry and agriculture.

 

Analysis of long term (Fixed Asset) crops such as forestry and agroforestry, especially under contract cultivation terms, evidences much higher returns than equivalent area short term agriculture. Short term agriculture provides cash flow for the farm to meet its operating costs, the forestry builds significant wealth from the lumber or contract values, in excess and with less time input than the shorter term agriculture. 

Examples of forestry are Teak, Mahogany, Rosewood and many many more. 

Examples of agriculture are tomatoes, Cabbages, potatoes, carrots and lettuce. 

Examples of Agroforestry, essentially trees that produce annual produce (current agriculture) and liumber (fixed Asset Value) are Rubber Trees producing latex and wood. Mango, Palm, Kratom and many more fit into this agroforestry class which is essentially a hybrid of both fixed asset and current asset crops. 

Contract farming is an important component for farmers if they are equitable. Contracts deliver floor price returns for efforts, develop minimum standards and protection for the  farmers and aggregate large production volumes into efficient coordinated cultivation allocations. 

Within the Wealthy Farmer Program, the crop mix, costs and outcomes can now easily be mapped and predicted, even updated relative to current market prices, on cloud based databases. The alignment of data from a number of farms would build the supply side of an ever growing trade. Now global demand for vegetable oil could be grown by these farmers simultaneously growing efficiently global supply to meet the vegetable oils demand that remains without supply in the bioplastics and food sectors,

 

Coordination and alignment to fulfill such large raw material demand for such items as bio-plastics (starches, cellulose and oils) or food (Oils, starch, Protein) could much more efficiently be produced with less environmental cost and greater reduction of rural poverty through such equitable coordinated contracts to individual farms who by their improvement, literally build uniform capacity of raw materials. 

 

Further analysis of bio-plastics where Greenpeace, in a very good research paper, identify that 54 million hectares of land cultivating 349 million tonnes of Corn for 146 million tonnes of PLA  bio-plastics. Sweet Sorghum could produce this same amount from 4 million hectares of cultivation as an example of value agriculture. These farms would then be above subsistence status and considerably valuable to the world economy and environment. The cost of this is transitory, in other words, simply by aligning market with production, the cost of development is returned many times over. 

This essentially forms a very large supply side producer for world markets with produce and harvest delivery all predictable and available in real time. 

Imagine the alignment of 13 million Thai Farmers under such a scheme? Imagine how many in Africa or Venezuela would have their lives improved by such simple alignment? Even the UK or Europe and the USA, this broader alignment and efficiency from the Wealthy Farmer Program builds in reduced costs (predominantly environmentally ironically) with better value cultivation and efficiencies to and for markets. All in the palm of the farmers hand through his smartphone to the world markets. 

Very few farmers have access to these resources, The Rewarding Planet Wealthy Farmer Team are developing the technology to deliver these advantages to all farmers through their smart phones while improving the farm access to contracted forestry and crop finance with reduced risk for farmers. 

Contact us for more information or to support the development of the technology.