{"id":12409,"date":"2018-01-25t20:45:16","date_gmt":"2018-01-25t20:45:16","guid":{"rendered":"http:\/\/dpetrov.2create.studio\/planet\/wordpress\/crowdfunding-to-feed-the-impact-of-cropital-in-the-philippines\/"},"modified":"2023-02-28t18:35:55","modified_gmt":"2023-02-28t18:35:55","slug":"agriculture-crowdfunding-cropital","status":"publish","type":"post","link":"\/\/www.getitdoneaz.com\/story\/agriculture-crowdfunding-cropital\/","title":{"rendered":"crowdfunding to feed: the impact of cropital in the philippines"},"content":{"rendered":"
beyond the chaos of urban manila, agriculture remains the backbone of philippine society.<\/p>\n
one in three filipinos is directly employed in agriculture, but agriculture only contributes to 9% of gross domestic product (gdp).<\/p>\n
in the last few decades, rural communities have experienced cycles of poverty and indebtedness in which farmers find themselves trapped in cycles of loaning and insecurity. vulnerable to the effects of climate change and stuck without crop insurance, many filipino farmers perennially live in debt and at the mercy of traders. the philippines is hit by an average of 20 deadly typhoons per year<\/a>, which wipe out crops and perpetuate cycles of borrowing and debt. a farmer\u2019s average income is around 2,000 philippine pesos (about $40) per month. the philippines is an agricultural country, yet it is also one of the top rice importers in the world.<\/p>\n these problems and paradoxes have not been lost on urban millennials. cropital<\/a>, a crowdfunding platform for local farmers, was started by a group of filipino college students in 2015 with a simple philosophy: doing good comes with great rewards. low-cost, sustainable investments support farmers with the mission of improved productivity, reduced poverty, and food security. this is the first platform that allows individuals to finance filipino farmers.<\/p>\n for 24-year-old co-founder rachel de villa, cropital\u2019s objective stems from watching her own family become trapped in a cycle of oppressive debt. predatory lending forces farmers into a crippling cycle of debt passed down between generations. when her grandmother lost her pineapple farm, de villa became aware of the systemic injustices that farmers face.<\/p>\n \u201cwe had to sell it because we lacked money. and thinking about it now, if only i had the skills back then, i would have created cropital and helped my grandmother not sell her land,\u201d de villa says. she was listed in forbes’ 30 under 30 asia<\/a> list in 2016. cropital was awarded philippine social enterprise of the year at the philippine rice bowl startup awards 2016. the company has financed more than 600 farmers so far in six provinces<\/a>.<\/p>\n cropital works by allowing people to choose from a list of approved farms to invest in. cropital\u2019s team manages the funds, helping farmers get access to crop insurance and capital to protect against weather and pest risks, and then investors receive returns once the farm has been fully funded. the minimum amount of investment is php$5,000 (about $100) up to a maximum of php$50,000 (or $1,000), and the rate of return for users ranges from 3% to 30% in less than six months. the farmers have 100% repayment rates so far.<\/p>\n investors range from young professionals, older consumers, and overseas filipino workers (ofws)<\/a>.<\/p>\na bottom-up alternative<\/h2>\n