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The Benefits

The Benefits

The Benefits

The advantage of this model is that all participants gain benefits from their involvement: the farmers become orchardists and learn new techniques and best practices; the investors (bondholders) make a good financial return on the investment and bring increased economic activity to the larger community with increased employment for auxiliary farm workers, increased produce varieties, quality and quantities of foods for consumers, and increased economic and social stability for community members.

Depending on the kind of fruit tree, a modest production can be expected in the third year. Thereafter, production increases year-over-year until the trees reach production capacity (about six years).

Farmer Benefits

  • Farmers are not required to make any financial investment and are paid (albeit modestly during the development years) for the use of their land and the orchard’s development.
  • Farmers learn modern farming practices (and some can become master farmers).
  • Once the orchard is fully sustainable, it is turned over to the farmer and the farmer’s household income increases substantially (roughly ten times current levels).

 Bondholder Benefits

  • After five to seven years, the bondholders recover their initial investment, plus a reasonable return.
  • Bondholders will have financed a productive orchard with a useful life of fifteen plus years.
  • Investors help their countrymen while earning a of return.

 Community Benefits

  • Seasonal employment is created for harvesting, spraying, pruning, and processing of products.
  • Fruit quality and production increase, thereby increasing export opportunities.
  • Food security improves through the increase of food availability and access.

The Results

In five to seven years, orchardists and farmers in Georgia and Armenia have hands on practical experience with best practices for their crops; bondholders will have recovered a healthy return on their investment; the community and neighbors will have successfully invested in their own country; and, the farm family will own a productive orchard with a useful life of fifteen plus years.