# Fedgroup - Impact Farming Investment

#### Kosmik

##### Honorary Master
I was looking through the app and the offerings, and something doesn't make sense to me.
If someone can explain, that would be awesome.

Let's use the Blueberries for example.
R300 of which you get an average of 12% per annum return for 8 years.
12% of 300 = 36
36 x 8 = 288.

So, on your R300 investment, you get R288 back, and you lost the R300. So, you lose R12 in the end?
I'm probably being a dummy here somewhere, so any help would be great!
The 12% avg is over and above. It works out to that with the loss of the bush.

#### Fcon_Vpro

##### Expert Member
I was looking through the app and the offerings, and something doesn't make sense to me.
If someone can explain, that would be awesome.

Let's use the Blueberries for example.
R300 of which you get an average of 12% per annum return for 8 years.
12% of 300 = 36
36 x 8 = 288.

So, on your R300 investment, you get R288 back, and you lost the R300. So, you lose R12 in the end?
I'm probably being a dummy here somewhere, so any help would be great!
You aren't compounding the values.
Year 1: 12% of R300 = R36
Year 2: 12% of R336 = R40
Year 3: 12% of R376 = R45
Etc
Or do this calc:
R300*1.12*1.12*1.12*1.12*1.12*1.12*1.12*1.12
This gives R748
Take off the R300 and you have R448 profit

#### Crossing_Swords

##### Senior Member
@Kosmik 's answer makes sense. Calculating the ROI based on what you will get above the R300. Which means, on average, you should get to ~R588 after 8 years.

@Fcon_Vpro I don't understand yours though. Why would you compound the interest? It's not an interest bearing account, right? So, if you buy more blueberry bushes, yes, but I'm referring to only buying one.

#### Kosmik

##### Honorary Master
@Kosmik 's answer makes sense. Calculating the ROI based on what you will get above the R300. Which means, on average, you should get to ~R588 after 8 years.

@Fcon_Vpro I don't understand yours though. Why would you compound the interest? It's not an interest bearing account, right? So, if you buy more blueberry bushes, yes, but I'm referring to only buying one.

#### Fcon_Vpro

##### Expert Member
@Kosmik 's answer makes sense. Calculating the ROI based on what you will get above the R300. Which means, on average, you should get to ~R588 after 8 years.

@Fcon_Vpro I don't understand yours though. Why would you compound the interest? It's not an interest bearing account, right? So, if you buy more blueberry bushes, yes, but I'm referring to only buying one.
Yeah sorry I'm wrong.
Kosmik is right.
I forgot it's 12% per annum average.

#### Crossing_Swords

##### Senior Member
@Kosmik Awesome, thank you so much for clearing it up.
@Fcon_Vpro No worries, thank you for your input regardless!

#### Kosmik

##### Honorary Master
@Kosmik Awesome, thank you so much for clearing it up.
@Fcon_Vpro No worries, thank you for your input regardless!
I got six.....thinking of grabbing two more this month.

#### mr_norris

##### Expert Member
Speaking of which, does anyone know when Fedgroup is doing Blueberry payments? I've had nothing show up on my app since March.
In my statement today, they mentioned that the next payment for blueberries will come in Jan. They only payout blueberry cash twice a year I'm afraid. It's pap, but oh well.

#### Kosmik

##### Honorary Master
In my statement today, they mentioned that the next payment for blueberries will come in Jan. They only payout blueberry cash twice a year I'm afraid. It's pap, but oh well.
Q1 and q4, last year was Dec and Mar.

#### Bilaal_H31

##### Active Member
Did they cancel the new product that was going to be launched?

#### HunterNW

##### Honorary Master
Did they cancel the new product that was going to be launched?
What new product ?

#### Bilaal_H31

##### Active Member
What new product ?
I'm not very sure
But they said a 4th investment was on its way.

In one of the statements few months back.

#### HunterNW

##### Honorary Master
I'm not very sure
But they said a 4th investment was on its way.

In one of the statements few months back.
Ah ok. Don't see anything new on the site.

#### mr_norris

##### Expert Member
I'm not very sure
But they said a 4th investment was on its way.

In one of the statements few months back.

Ah ok. Don't see anything new on the site.

Good news and bad. They still aren't saying what it is, but they hope to have it going either before the end of the year, but more than likely next year.

My source:

They don't really say much I haven't heard or read before, but it was nice to hear that something is coming.

#### mr_norris

##### Expert Member
No BF deals in the app this time, quite sad. But on the flip side, this was really the only thing I was hoping for, so not spending money is also a win?

#### richjdavies

##### Expert Member
@Kosmik 's answer makes sense. Calculating the ROI based on what you will get above the R300. Which means, on average, you should get to ~R588 after 8 years.

@Fcon_Vpro I don't understand yours though. Why would you compound the interest? It's not an interest bearing account, right? So, if you buy more blueberry bushes, yes, but I'm referring to only buying one.
Thats not great for no liquidity.

I just wonder how this is backed, yes you have a blueberry bush, but what if it dies, what if blueberry prices fall etc... I don't know the volatility of earnings here to know if 12% return (can others confirm this is in effect a 8 year pay down of your loan to them of R300/bush, (i.e. 588) rather than returning 12% each year and capital maintained

#### neoprema

##### Executive Member
Thats not great for no liquidity.

I just wonder how this is backed, yes you have a blueberry bush, but what if it dies, what if blueberry prices fall etc... I don't know the volatility of earnings here to know if 12% return (can others confirm this is in effect a 8 year pay down of your loan to them of R300/bush, (i.e. 588) rather than returning 12% each year and capital maintained
I'm not understanding this farming thing, my Blueberries so far are bringing in 5% after a year and half.
I just can't shake the feeling i've helped sponsor some Finco's yacht and strippers.

#### Kosmik

##### Honorary Master
Thats not great for no liquidity.

I just wonder how this is backed, yes you have a blueberry bush, but what if it dies, what if blueberry prices fall etc... I don't know the volatility of earnings here to know if 12% return (can others confirm this is in effect a 8 year pay down of your loan to them of R300/bush, (i.e. 588) rather than returning 12% each year and capital maintained
Insured and controlled environment.

#### richjdavies

##### Expert Member
I'm not understanding this farming thing, my Blueberries so far are bringing in 5% after a year and half.
I just can't shake the feeling i've helped sponsor some Finco's yacht and strippers.
What are the exact numbers then?
Paid xxx
Got yyy at date zzz etc...
Is 5% assuming you get your XXX back?

#### Kosmik

##### Honorary Master
What are the exact numbers then?
Paid xxx
Got yyy at date zzz etc...
Is 5% assuming you get your XXX back?
Did you read our investigate the investment material? Or even a post of mine a few back?