Crowde Targets to Digitalize 100,000 Farmers by 2021
Crowde’s agro-fintech startup aims to digitize 100,000 farmers in running their agricultural businesses by 2021. During a pandemic, according to Crowde, is not an easy thing for farmers. The use of technology is expected to be a solution for them to survive and adapt.
The company said that sustainable agricultural technology from upstream to downstream relies heavily on technology so that farmers must master it. One of Crowde’s steps during a pandemic was to guarantee a fair selling price for each farmer’s produce.
Optionally, the company also buys the farmers’ crops if the crop is not absorbed maximally by 9 institutional off-takers who have worked with Crowde. Recorded from October to November 2020, Crowde claims to have distributed a total capital of IDR 22 billion.
Until now, there are at least 28,000 farmer partners who have joined and 3,215 farmer shop partners who channel capital on the non-cash system by providing all farmer partners needs to carry out cultivation projects. In addition, in 2020 Crowde also changed the investor contribution ratio to 8 : 92 (retail : institution) which is said to have an impact on farmer performance.
Extend the Project’s Reach
As many as 85 percent of farmer partners admit that the process of channeling capital is faster, more controlled, and their cultivation is more scheduled. Last year, Crowde signed cooperation agreements with several institutional lenders, such as Bank BJB and BPR Supra to fund farmer partners in the Cianjur, Sukabumi and Garut areas.
“In the midst of the pandemic, we have also expanded the reach of our capital cultivation projects to ten areas, namely Lampung, Sukabumi, Subang, Indramayu, Bogor, Garut, Madiun, Tulungagung, Kediri, and Tuban with a total of 1,802 projects,” said Afifa Urfani, Crowde’s Head of Funding & Impact.
The collaboration between CROWDE, a fintech startup in the agricultural sector, and BJB bank continues. This was marked by the ceremony of “Signing the Addendum to the Cooperation Agreement” both towards the end of 2020. The cooperation between the two continued with the transfer of working capital in the form of KUR (People’s Business Credit) for farmers in West Java.
Participate in Technical Guidance Activities in Bogor
In addition, Crowde also participated in technical guidance activities organized by the Bogor Regency Food Crops, Horticulture and Plantation Service at the end of 2020. This activity aims to attract young people to become millennial farmers.
“We believe that the problems faced by millennial farmers must have solutions and answers, one of which is through the GARAP program (Peasants’ Movement), which is a project financing product that focuses on rice, corn and chili commodities by involving Farmers Consultants and Field Agents as field assistants. who will always be close to Indonesian farmers,” added Rizky Andika Septiyanzar, Lead of Enterprise CROWDE who was present as a representative.
Rizky also added that millennial farmers are expected to be able to conduct SWOT analysis (Strength, Weakness, Opportunities, Threats) so that they can design the agriculture they aspire to and know what steps need to be taken to make it happen.
Targeting 100,000 Farmers to Transform to Digital
Crowde conducted a poll to find indicators of problems that millennial farmers might experience. Meanwhile, this year, Crowde wants 100,000 farmers to transform into digital channels in running agricultural businesses. That way, they can develop and improve the welfare of the farmers.
Moreover, the use of technology can be a solution for farmers to survive a pandemic. Sustainable agricultural ecosystems from upstream to downstream are very dependent on technology, so farmers have to master it.
“During the pandemic, Crowde tries to adjust itself by guaranteeing a fair selling price for each farmer’s product and optionally buying their crops if the harvest is not maximally absorbed by the 9 cooperating off-taker institutions,” added Afifa.