Fedgroup - Impact Farming Investment

Dimeon

Member
Joined
Jul 17, 2019
Messages
15
I doubt that...but if it is then it's actually worth it.

If that is yearly, you won't even make your money back on the solar panels before they are destroyed after 20 years.

Edit:

I see they predict 8% p.a. on 1 solar unit and with 10+ units...14% - 32% p.a.

Solar is obviously the way to go thanks to Eskom.
The payouts on solar are monthly and the payouts on blueberries and beehives are twice a year. The projections for solar are between 10% and 12% per year. This is based on an annual increase in the energy price of 8%. If it increases by more than this, as is currently the case, you stand to make more from your asset.
 

beefymoocow

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Jun 19, 2006
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1,083
The payouts on solar are monthly and the payouts on blueberries and beehives are twice a year. The projections for solar are between 10% and 12% per year. This is based on an annual increase in the energy price of 8%. If it increases by more than this, as is currently the case, you stand to make more from your asset.

Does the solar panel prices go down when the market price of solar panel goes down. I stand to be corrected but the solar panel prices has always remained the same.
 

Dimeon

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Jul 17, 2019
Messages
15
This actually looks quite interesting. I haven't had a chance to look at it properly but from a tax perspective if this isn't Divivideds or interest and is treated as income in its purest form the income would be taxed in full. The treatment of the berries or solar is more interesting though would it be treated as an expense for example section 11a or would it be an asset section 11e can't remember if solar had its own treatment. But are you the owner? As that would also impact if you are able to claim that allowance. Hell you might even bring in some of the stranger tax implication for farming tax if the bushes are seen as a plantation for example. This is definitely something to seriously consider as tax could have a serious impact on thie.
We send all our Impact Farmers a tax pack to help them claim tax back at the start of the individual tax season. You are able to claim back 100% of the purchase price in the first year of operation. So, in your first year, you will get a substantial amount back, but after that your income will attract smaller amounts of tax. If you are treating this as an investment, you should also keep in mind that you earn an income over the lifetime of your product, so if you reinvest all your income, you could boost your returns substantially.
 

Dimeon

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Jul 17, 2019
Messages
15
Just wondering those that bought solar panels, how is it going so far? Guessing 1 or 2 payments by now?

I see you can't buy honey or solar anymore :/

I also made a rookie error by buying the bushes when I did (April) , as harvest is only Q4... So they are going to sit 8 months or so before any funds reflect . At least funds sitting in my wallet are attracting interest.




PS : Oh and those that used my code (00WLGTW) when signing up - thanks :)
The interest was quite encouraging and stocks are currently running low. But we are working hard to bring new assets online in the near future. A couple of solar sites will be coming online soon.
 

Dimeon

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Jul 17, 2019
Messages
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Does the solar panel prices go down when the market price of solar panel goes down. I stand to be corrected but the solar panel prices has always remained the same.
Currently our prices are fixed. We have looked at introducing a fluctuating price linked to demand, e.g. the price of a blueberry bush would go up if it is purchased closer to harvest time. However, this would complicate calculating the returns on your investment, so the decision was made to keep it fixed for now.
 

MightyQuin

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Oct 6, 2010
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The payouts on solar are monthly and the payouts on blueberries and beehives are twice a year. The projections for solar are between 10% and 12% per year. This is based on an annual increase in the energy price of 8%. If it increases by more than this, as is currently the case, you stand to make more from your asset.

Monthly? Starting after 1 year I presume?
 

Dolby

Honorary Master
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Jan 31, 2005
Messages
27,797
currently own three solar panels, one beehive and 16 blueberry bushes

Did you use my code ? ;)

I'm kidding ...

So one thing I noted is that your referral is a bit iffy.

I had 3 or 4 friends purchase on the app using my code - and nothing was reflected. I had to mail in and do an 'audit' of who bought, in order to get referral. I'm unsure if you're fixed that issue?

I mailed this morning about this exact thing
 

TheAssister

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Joined
Mar 19, 2019
Messages
167
This seems like a good investment

Let's see how it turns out something really different.
 

Dimeon

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Jul 17, 2019
Messages
15
Monthly? Starting after 1 year I presume?
Generally you start seeing an income after three months. There were delays at the one site, so we decided to pay the solar panel owners a monthly interest on their initial amount until the site goes live.
 

Dimeon

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Jul 17, 2019
Messages
15
Did you use my code ? ;)

I'm kidding ...

So one thing I noted is that your referral is a bit iffy.

I had 3 or 4 friends purchase on the app using my code - and nothing was reflected. I had to mail in and do an 'audit' of who bought, in order to get referral. I'm unsure if you're fixed that issue?

I mailed this morning about this exact thing
Because people are able to reverse their purchase, or make use of the cooling-off period and sell their assets again, there is a 10 working days delay between the money reflecting in our bank accounts and us paying the referral fee into your wallet. If it takes longer than that, then there is an issue that we need to fix.
 

Dolby

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Because people are able to reverse their purchase, or make use of the cooling-off period and sell their assets again, there is a 10 working days delay between the money reflecting in our bank accounts and us paying the referral fee into your wallet. If it takes longer than that, then there is an issue that we need to fix.

It's taken longer than that.

Your system didn't automatically assign and when I contacted Fedgroup, was told it was an issue with the system (they informed the developers) and then they were manually assigned to me.
 

XPD

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Sep 3, 2014
Messages
220
When will the reseller option become available for secondary market sales?
 

Dimeon

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Jul 17, 2019
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It is one of the things on our to-do list, but it is not near the top of that list at the moment. Our devs are working on improving user experience and a number of other things at the moment. We do feel that a bit of investor education is also necessary. Buying your asset and then immediately selling it for less on the secondary platform will not be a great idea. But selling it at the right price after a couple of years once it has made some money for you could well be a good deal for both you and the new owner.
 

naasier

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Joined
Mar 1, 2009
Messages
213
I have an e-filing tax question with regards to Impact Farming. Firstly, I need to declare that I have no freaking clue about tax and related issues. Hopefully I get a decent return though.

On page 4 of the tax pack from Fedgroup, we can claim an allowance on the cost of the asset.
1) If I have bought 1x solar panel (R5000), 1x beehive (R4000), 2x blueberry bushes (R500 for both), is the total value (R9500) entered into the Capital Allowances on the e-filing website?
2) On TaxTim you are able to calculate the wear and tear/ depreciation I think on the solar panels under "solar units". What is the depreciation on the beehive and blueberry bushes?
 
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Dimeon

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Joined
Jul 17, 2019
Messages
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Firstly I should say that I am not a tax practitioner and nothing I say should be seen as tax advice. I am only sharing the tax opinion that we received and my own personal experience with claiming my tax allowance. With the Ts & Cs out of the way, here are the answers to your questions:
1) That is correct. You enter the total amount under Capital Allowances.
2) You can choose to write off the full purchase price as a capital allowance in the first year (called a section 12B allowance) or you can write off the purchase price over five years as a wear and tear allowance (section 11(e)). So, if you choose the capital allowance, you cannot also claim for wear and tear.
 

Hamster

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Aug 22, 2006
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35,689
Did anybody else get requested to complete the “Statement of Local Assets and Liabilities” section after adding the Fedgroup stuff?
 
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