How a Persimmon Farm Investment Works

Investing in our persimmon farm in Paraguay and profiting from agriculture is straightforward, as the following steps demonstrate:

Step 1 – Buying your Lot

As an investor, you buy a specific lot of land with planted, fruit-producing persimmon trees, part of our 89 productive hectares on our farm in Paraguay. The investment starts at $39,347. The available lots have slightly different sizes, allowing you to choose one (or more) to match your preferred investment amount. Lot sizes range from 0.463 to 1.885 hectares (1.144 to 4.658 acres).

The lots are clearly marked, and your land will be registered with the land registry in your or your company's name. The title deeds, registry entry, and other ownership documents will be posted to you. The land titling process will begin once we receive the full payment and usually takes 18 to 24 months to complete.

When you purchase your lot, you'll sign two contracts:

A contract for the land purchase.
A renewable contract that authorizes the farm management company to manage and administer the land on your behalf, including harvesting and selling the fruit.

Step 2 - Cultivating your Trees

Over the next years, your farm management partner will tend to your persimmon trees and fruits. Any trees that die before they reach full maturity will be replaced at no cost to the investors.

With the purchase of the land, new owners also benefit from a list of assets needed to manage the farm and their trees, such as tractors, machinery, irrigation system, electrical installation, and other tools (full list in Brochure). Those assets need to be maintained and changed after a certain time. This is why 9% of the yearly net profit is added to a reserve fund, which will be used to renew those assets. The reserve fund will be held in an interest-bearing savings account.

Step 3 - Harvesting & Selling your Persimmon Fruits

The harvest will start in February when the ripe persimmon fruits will be picked and sold. While this year's crop was presold to Europe, we're open to other markets and will always look to secure the highest prices.

You receive your part of the "net income":
Net Income = Gross Harvest Income – Operating Costs – Management Fee (7%) – Paraguay Tax (15%) – Reserve Fund (9%)

We project an average return on investment (ROI) of 19% per year. You should receive your first returns payment within 14 months after funding.

The yield curve of a persimmon tree is a parabola. It rises from one year to the next until the tree reaches its maximum output, stabilizes for a few years, and then gradually declines.

After a lifetime of about 24 years, the trees become less productive and, hence less profitable. At that stage, they'll need to be replaced. This process will be done progressively, and the provision fund will service the cost.