Investing with StockLyft

Updated 3/15/2020

Farm asset increases in value over time. The population is only increasing, and one study shows that the amount of food people takes in per day is steadily increasing. Choosing what to invest in as an early investor or a millennial can be intimidating. You can invest in the stock market or real estate or you grow wealth by investing in farming since no one ready to cut food from their budget.

Why should you invest In Sustainable Farming?

Sustainable Farming sustains farmers, resources, and communities. This is model isn’t only practical — it’s also profitable.

But the difficulty with funding in agriculture has been a major setback for farmers.

The requirements for securing a loan from a bank are too high for most farmers. About 80% of farmers who need financial assistance to survive do not access to loans.

When you invest in a sustainable farm with Stocklyft, you don’t only create a passive income you help consumers, yourself included get access to fresh, locally grown organic produce, help farmers have the freedom to make improvements to their operation and push back against conventional practices that harm the environment.

You can earn up to 35% returns on investment when you invest with Stocklyft. When you invest with StockLyft, you are helping improve social and environmental standards while generating profit.

What kind of farm assets am I investing in?

Assets are items owned by the farm business that has value. They include the items that the farm uses to produce the products they sell. Assets include, but are not limited to, cash, grain and feed inventories, prepaid expenses, market livestock, breeding livestock, machinery and equipment, buildings, and farmland.

All assets sold on StockLyft to funders are limited to Current Assets—Current assets are cash or items that can be easily converted to cash in one year or less. Common current assets include cash, prepaid expenses, growing crops, harvested crop inventories, market livestock, accounts receivable, seed, feed, and other supplies on hand.

Your investments with StockLyft do not include any Long-Term Assets—Long-term or fixed, assets are typically permanent items with an assumed useful life of more than 10 years and include farmland, improvements such as tile and fence, buildings, farmsteads, capital retains, or equity investments.

What type of crowdfunding is StockLyft offering?

Crowdfunding on Stocklyft is debt-based— capital is raised in the form of a loan or promissory note to be paid back at some point in the future, with a fixed interest rate. Debt-based crowdfunding offers great advantages with low entry levels, passive income, security, and tax savings. Depending on the deal structure, some debt crowdfunding deals can provide passive income for self-directed IRA investors without incurring Unrelated Business Income Tax (UBIT).

Crowdfunding - the practice of funding a project or venture by raising capital from a large number of investors through an online platform

Private Placement Memorandum - the legal document that describes the details of the offering such as objectives, terms, risks, etc.

Principal - the amount of capital originally invested in the project.

Interest Rate - the percentage rate, usually quoted annually, at which interest is paid by the borrower to the lending party (investor) while the loan is outstanding.

Interest - the cash paid to the investors by the borrower until loan maturity calculated as: Interest = [interest rate/ payment frequency] X [outstanding principal balance].

Maturity - the date at which the outstanding principal balance must be paid and returned to the investors in full.

Collateral - the property or other asset that the borrower offers as a way for the lender (investor) to secure the loan.

Default - failure to make timely payments of principal or interest.

Amortization - the act of paying the principal balance off overtime between the issuance of the loan and loan maturity.

What are the risks involved?

There risks involved with any form of investment and debt-based crowdfunding is no exception. Below are three of the top debt-based investment risks to consider.

Default Risk- The risk that a farmer may be unable to make the required payments of principal or interest and may result in the loss of some or all of the principal invested.

Inflation Risk - The chance that cash flow from an investment won’t be worth as much in the future because of changes in purchasing power due to inflation.

Interest Rate Risk- The risk that an investment’s value will change due to a change in the absolute level of interest rates. A potential increase in market interest rates is a risk to the value of fixed-income debt investment.

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List your farm today and expand your CSA Membership from the public through each farming season - Increase your yields, grow your business, ensure every season is better than the last.

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