[Pilifinance Update on September 7, 2016:
Upon further investigation of the matter, Pilifinance found out that the owners of FarmOn have heeded the advisory of the SEC and sought to collaborate with the agency and get incorporated. That is a good sign and it shows their sincerity to get in order the legal structure of their business, and make sure that operations are legitimate. On July 18, 2016, two months after the advisory, FarmOn is officially incorporated as FarmOn Agri-Community Corporation. That is a good step forward, and it is especially reassuring that no complaints have been made (thay we know of) since it's inception.
Our stance remains the same: exercise caution in any investment dealing. Do yojr own due diligence, risk tolerance and never invest more than you are willing to lose.]
Below is a copy of their new Certificate of Incorporation:
[Pilifinance Update on September 6, 2016:
It has just come to our attention that the Securities and Exchange Commission (SEC) has issued an advisory dated May 17, 2016 regarding the legal status of FarmOn, confirming our suspicion and warning (as stated in this article's disclosure statement included when this article was originally written), that FarmOn is not a registered entity with the SEC. As such, FarmOn is not legally authorized to sell investments or securities to the public. The advisory also states that FarmOn does not even have a primary license which is to enable it to get authority to solicit investments. Meaning, it is not a registered corporation or as a partnership with the SEC. (See September 7 update, above)
To be fair, Pilifinance's experience in its continued transactions with FarmOn up to this day of writing, has been more than satisfactory. FarmOn has continually shown commitment in fulfilling its investment contracts as well as accountability and reliability in our transactions. We also have not heard of any customer or investor complaints with regards to FarmOn as of this date.
However, we continue to emphasize what we have originally stated in our perceived risks and disclosure, and the advice of the SEC in its advisory dated May 17, 2016:
That is to "exercise self-restraint from investing their money into such high-yield, high-risk investment scheme and to take the necessary precaution in dealing with individuals representing the above named entity."
This SEC advisory raises a red flag, and might affect the decisions of current and prospective investors, in turn affecting profitability of FarmOn. There is a risk that investors might pull-out their investments in fear of seeing this advisory, that could end up in the folding of the company.
In light of this, Pilifinance believes that it is wise to safeguard the investor's gains and capital, as with any investment operation. If despite these warnings, the investor wishes to proceed, he does so at his own risk, and our opinion in such cases, that such an investor will do well never to gamble more than he is willing to lose.]
Below is a copy of the advisory released by the SEC on May 17, 2016:
[You may skip to the HOW TO BEGIN section at the bottom of this article]
[images taken from FarmOn Facebook page]
Always wanted to invest in a FARM?
With record low interest rates for bank Savings Accounts (less than 1% per year) and world financial markets In turmoil, how do you make your money GROW? Affordably?
In this OPPORTUNITY You don't even have to get your hands dirty!! Your farmers will do it for you!!
Support Filipino farmers and help the local farming industry..
How do you earn?
Fund the seeds.....Split the profit with the farmer!!! That EASY!!
For as little as P100 FLAT (for one chicken) you can now invest your money and earn profits!!
As featured in the Philippine Daily Inquirer, Balitanghali and State of the Nation with Jessica Soho.
How to do it?
Anytime, Anywhere! Simply deposit your investment to their BDO bank account in any BDO Branch nationwide and email them the receipt and contract!!
[DISCLAIMER: This is not a buy/sell recommendation. The Author and Pilifinance Blog is not liable for any damages of any nature upon use of the information obtained herein.The investor assumes all risk and liability to their investment. Study carefully, weigh the risks and invest only what you can afford to lose.]
========Personal Experience of Pilifinance with FarmOn==========
In 2014, with record low interest rates on savings accounts, and uncertainty in the stock markets, I was looking for a new way to invest money.
Fortunately, I stumbled upon this OPPORTUNITY while browsing investment groups in a social networking site.
I was immediately interested, because UNLIKE other "income opportunities" and scams found all over the internet, this opportunity presented a sound and reasonable business model.
In any investment, I ask myself, "HOW this business will make the money to RETURN my investment."
And their business was so simple and easy to understand that I can explain it in a few words.
Local farmers are in NEED of money or capital to buy their starting SEEDS.
WE PROVIDE them the start up money or investment to buy the seeds or animals.
The farmers care and HARVEST for the plants and animals.
Once the FARM PRODUCTS/fruits of harvest are SOLD in a ready market,
you and the farmer can SPLIT your profits!
I was EXCITED to share this to my friends and family, but we had our DOUBTS and reservations.
What if it was a scam? What if they run away with my money?
Of course, there's only one way to know for sure, that is to TRY IT!
Invest only what you're willing to lose.
On September 2014, I invested in 2 chicken heads for a measly P225, just because I was trying it out, and that was what I was willing to lose.
3 months later, on December 2014 my P225 had become P311!!! I was very happy not because of the amount, but the rate of return on investment!
In 3 months I had gained a profit of P86 or 38%!!!!
But I really had to invest 1 month in advance, and they deposited it in my bank account upon encashment 1 month later, so the entire duration my money was invested was around 5 months.
Still that was a return on investment of 7.6% PER MONTH compared to the measly 1% per year of a bank savings account!
And so in January 2015, I invested a bigger amount of P30,000 in Lettuce and Sitao crops, 8 months later, I had earned P9,000 profit on that alone! That's a whopping 30% in 8 months!
That's equivalent to a yield from a very good year in the stock market. A year, with enormous amount of risk.
Once you begin to browsing their catalogue of farm produce you can invest in, you have to split the indicated amount by two, because you will be sharing your profit with the farmer with a ratio of roughly 50/50.
In general, the return on your investment will be your original investment + around 5-8% PER MONTH, but will vary depending on what you choose.
A single investment in FARMON lasting a couple of MONTHS will usually yield you upwards 30% (based on my previous investments with them).
This is a reasonable rate of return, unlike what investment scams promise of doubling your money in a few months.
***IMPORTANT: RISKS PERCIEVED: Of course this review will not be complete without the RISKS.
1) We do not know the proprietors of FarmOn personally, but by reading their website, we can see that one of the reasons they put up FarmOn is to help poor farmers to obtain financing for their start up seeds, crops and livestock, which is a noble, and actually a mutually beneficial solution to the need of the farmers and investors. They have also been featured in Philippine Daily Inquirer, Jessica Soho, and Balitanghali but I am not sure if they are registered with the SEC (risk #5).
2) FarmOn is just a single business. There is always a risk that the business will fail, and your investment may not be returned. Faults in operations and management and even large scale natural calamities (see risk #4) can cause the enterprise to fail.
3) Being scammed or your money taken away. In my personal experience, FarmOn responds to every query and concern I had. The customer service was okay, and they deposited my investments back into my bank account without any problem. But past results may not guarantee future results. In the past, the author has heard of similar profit sharing schemes with farms where the investors have been duped and their investments gone.
4) Natural calamities, droughts and famine. Good news is that FarmOn guarantees to replace your investment of crops and livestock in case of natural calamity, a sort of insurance, for free.
However, in case of widespread natural calamity that destroys most of the farm's inventory, FarmOn may not have enough money to replace all produce and investments, and may even cause the business to fail, hence losing your investment entirely.
5) I am not sure what kind of business permit they have. I am also not sure if they are licensed by the Securities and Exchange Commission or SEC to sell securities or investments to the public. I tried searching the keywords "FarmOn" and "Sproads" on the SEC website but did not see them.
In my case, I tried it first with a small amount, and limited my investment to a certain percantage of my investible funds. My rule is: Always invest only what you are willing to lose.
HOW TO BEGIN??
1) Read the disclaimer and investment risks sections above this portion.
[DISCLAIMER: This is not a buy/sell recommendation. The Author and Pilifinance Blog is not liable for any damages of any nature upon use of the information obtained herein.The investor assumes all risk and liability to their investment. Study carefully, weigh the risks and invest only what you can afford to lose.]
2) Read the website completely and look at what current farming cycle is open for registration. The important information here is the deadline for registration and the start of farming date.
3) Select the crops or livestock you want to invest in, and calculate the return on investment.
4) Click JOIN NOW and
on the "Referred by:" field, kindly put
inogomez@ymail.com
to say thanks to Pilifinance!
FarmOn website: [www.farmon.ph]
5) You may opt to not pay the notarized contract if you think this will not impact the outcome of your investment.
6) Wait for their email confirmation for a few days.
7) Print and sign contract and invoice.
8) Deposit money investment to the FarmOn / Sproads account in any BDO Bank Branch nationwide according to instructions received in email. Keep your BANK DEPOSIT SLIP.
9) Screenshot or scan the forms and bank deposit slip and attach the image to the email and send to FarmOn. You may include an optional note regarding the details of your investment on the email.
10) Keep the signed contract, invoice and deposit slip for future reference.
11) Monitor your investment and know your harvest date. Wait for emails regarding your FarmOn investment, log in to your account in the FarmOn website and check out the FarmOn Facebook app.
12) Once the profit and investment appears on your account, fill up the online profit encashment form, and put your bank account details (Name, bank name, account opening bank branch, and bank account number, and amount to be deposited.) And wait for your investment to be deposited to your account!
Process may be subject to change without notice. For further inquiries, please contact FarmOn.
Please feel free to share, save and comment!! Let me know what you think!
