The New Model
“Tree Bonds” is an innovative financing product designed to address the worldwide demand for the long-term financing of perennial tree crops. The focus to start this financing product is the Caucasus, where for millenia, farmers and orchardists have been raising apples, peaches, apricots and other stone fruits for tables around the globe.
The idea is to raise capital from local countrymen, diaspora, community groups, pension funds, and others who believe that long-term solutions are needed to increase the capacity of the agricultural sector and the livelihood of dedicated rural farm families. These investors will become bondholders in an orchard crop such as apples, grapes, peaches, or other stone fruits; even nut, or poplar for plywood, will work as well.
How it Works:
We start by selecting dedicated smallholder families who have fallow land and are willing to join forces with investors in a long-term commitment.
Orchard Management – Extension Service
A local agricultural management and farm extension service will:
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, creating job and economic growth; and, the farm family will own a productive orchard with a useful life of fifteen plus years.