With regard to agriculture and the food industry, crowdfunding is an interesting alternative. Therefore, entrepreneurs and emerging companies in this area focus their attention on this method of financing. Today, we’ll take a look at the advances in agriculture and the food industry achieved thanks to crowdfunding.

Agriculture and the food industry in crowdfunding

Since crowdfunding has spread worldwide, many sectors of the business world know about it. Including of course the agricultural and food industries. Regarding agriculture, a new term has been coined for crowdfunding campaigns in this area: herdfunding. Which has become moderately popular on the Internet.

Now instead of resorting to traditional financing, farmers opt for crowdfunding. The same happens with those people passionate about gastronomy who want to create their own business. The private sector took notice of this interest on the public and from there crowdfunding platforms dedicated to these issues were born. One of them is PieShell, dedicated to the financing of food and beverage projects and businesses with crowdfunding.

Farmers also have crowdfunding platforms where they can publish campaigns. One of them is Barnraiser, a platform for both gastronomic and agricultural projects. And so we can continue listing various platforms for these causes. Hence, a question arises, how do these platforms and crowdfunding drive the food industry and agriculture?

A good answer can be found in an article in Forbes magazine. Where they talk about several food entrepreneurships that used crowdfunding and were successful. One of them was that of three American women who managed to finance their startup called Kitchen Witch Broth. Here it’s mentioned that most of the food campaigns rarely achieved success in traditional platforms.

food entrepreneurships crowdfunding
Like Kitchen Witch Broth, many food businesses seek funding in the world. And they usually look for it in specific crowdfunding platforms because in the traditional ones they have less chances of success. Source: Barnraiser

Crowdfunding to feed the world

In fact, crowdfunding has undoubtedly helped emerging food businesses get funded. Which is why crowdfunding is seen as an alternative for farmers and food entrepreneurs. Despite this, there’s another reason why this initiative has become popular. In some countries, this method of financing is used to protect agriculture and traditional farming.

An example of this is the Philippines, as shown in an article by Planet Forward. In this country, similar to India, rural areas are affected by poverty. Filipino farmers are affected by this and are immersed in debt. Despite this, the article reports the creation of a crowdfunding platform to help these farmers. It’s called Cropital and seeks to help protect Philippine agriculture.

filipino agriculture
The Philippines is affected by unstable climates every year. What forces farmers to borrow money and get indebted. However, many of them found an alternative in crowdfunding. Source: GMA Network

This shows us that collective financing not only allows the birth of businesses. But it also works to support agricultural labor in less developed countries. Mainly because farmers and growers usually live in rural areas far away from urban cities. For this reason, many individuals and entities bring crowdfunding to these agricultural workers to offer them help.

As in the Philippines, many other countries in the world benefit from crowdfunding. Among them Nigeria, where most of the farms are considered small properties. An article by Adama Global mentions that a crowdfunding platform called Farmcrowdy was created in this country. Whose objective is to connect farmers with financing sources that cannot be obtained by traditional means.

nigeria farmers crowdfunding
Crowdfunding has helped save the agricultural sector in danger of extinction in countries like Nigeria. Which therefore allows to maintain food production. Source: Agùntáṣǫólò Notes

Crowdfunding has allowed both the creation of food franchises and the improvement of agriculture. This sector was highly less successful in traditional crowdfunding platforms, so more specific alternatives emerged. Now it’s possible to have multiple platforms worldwide aimed at all these needs. Either allow entry to the food industry or boost agriculture.

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Related: Why Is Spain So Advanced In Terms Of Crowdfunding?

Crowdfunding makes food a business!