We will not own the land, but will manage the system.
Our Fund will manage 5 million hectares of land. To give you an idea of the scale, this is approximately 1.5 Switzerland, 2 Israel or 5 Qatar.
The main question is: Where will we find so much land?Due to overloans and low yields, many of our agricultural holdings went bankrupt and did not pay off loans. In case of hopelessness and bad loans, all these assets of agricultural holdings in the form of land are sent to a specific basket called "FPL-Fund for Problem Loans". It is a government agency under the Ministry of Finance. And there are already about a million hectares of land there. And during the year due to the coronavirus crisis and low yields, another 4 million hectares of land will be supplied.
But the main problem of these agricultural holdings is their huge uncontrollable size: 200 thousand hectares, 500 thousand hectares, million hectares.
To create our system, our team has traveled half the world and studied the world's best practices and technologies from the European Union, America, Canada and Argentina. And we came to one surprising conclusion: that land of up to 10 thousand hectares is effectively managed. More is the path to bankruptcy.
Accordingly, the question is: how to create the largest agricultural company in the world with 5 million hectares of land, if only 10 thousand are effectively managed.
We found the answer to this question in franchising technology. Companies such as KFC, McDonald's, Starbucks collectively effectively manage 100 thousand points, but do not own any of them.
And we also want to own the system, but not own land. And the land will be owned by 1000 effective managers, 5 thousand hectares of land each. They must be citizens of Kazakhstan between the ages of 21 and 35. And the equipment will be owned by 200 effective MTS managers. But more on that later.
Our effective managers shouldn't take land for free, and what will we do for this?We will sum up the entire debt from 5 million hectares of land, get a certain discount and di-vide this debt into a thousand parts. This debt will turn into the price of land. You buy this land in instalments from 3 to 7 years. The government will sign an agreement with our effective manager, according to which he must pay off within 5 years and subsequently become a full-fledged owner.
Probably, a question arises in everyone's head: Effective manager has not yet begun to work, and will someone else's debt be hanged on him?The answer is no. For him, this is not a debt, but the value of the land. You buy land in instal-ments from 3 to 7 years. If you work conscientiously, the model we have developed will allow you to buy land within 5 years on average and make good money on it
Another question: What if effective manager fails?If you fail, then you will be replaced by another effective manager without consequences for you.
Author of the project: Marat Abiyev