Agridime Investment Review: We Have Questions (2023)

There's no denying that American consumers love their beef products. at least highUS Department of Agriculture, livestock is consistently the country's most important agricultural product.

But what if the meat you buy could do more than just sizzle on the grill at your next backyard barbecue?

This is where companies like Agridime come in. With Agridime, investors can buy cattle and earn 20% or more profit on raising and selling that cattle. And Agridime's network of meat producers and buyers handles every step of the process, meaning it's a completely passive investment.

Our Agridime review covers how the process works, as well as the risks and benefits to consider.

for and against

About Agridim

Agridime is an animal supply chain management and meat distribution company based in Fort Worth, Texas. The company was founded in 2017 and specializes in the intermediation of wholesale meat.

And for investors, Agridime allows them to add cattle to their portfolio. The company allows investing in cattle and promises attractions,guaranteedIt returns through its profit-sharing model.

Agridime also has a consumer-facing store on its website where you can buy cases of farm-to-table beef, pork and chicken and have the meat delivered to your door.

Who is Agridime for?

if you would likeDiversify your portfolioand investing in cattle, Agridime is for you.Currently being promoted a guaranteed 15-20% return after 12 months for Q2 2022 cattle purchases. However, cattle cost $2,000 per head, so this is not a viable option forinvest little money.

How does Agridim work?

The idea behind Agridime is to allow investors to make money from raising livestock without having to do the work of raising livestock. As an investor, you help fund Agridime's meat supply chain. From there, Agridime uses its connections to deliver fresh meat to retailers, catering establishments and butchers.

Beef is $2,000 a head, and you're buying cows that are already in the 500-pound range. Agridime contracts all cows in its supply chain and the cattle are raised on partner farms in Kansas until they are ready for slaughter. After processing, Agridime sells beef to grocery and online store customers.

When writing,Agridime guarantees a profit of 15% to 20% after 12 months for cattle acquired in the second quarter of 2022. It also offers 20% profit on contracts of 50 head of cattle or more ($100,000+).

This may sound too good to be true or impossible, but that's how math fails.:

1. Your $2,000 investment covers the cost of purchasing, breeding and processing a male or heifer.
2. This process produces about 500 kilos of meat
3. Agridime can sell this product for about US$6 a kilo, which translates to a net income of US$3,000 per capita.
4. Investors make $300 to $400 in profits (15% to 20%) and Agridime is left with around $600

Again, Agridime says its investors averaged over 20% returns on over 5,000 head of cattle last year, which is certainly an impressive return.

Has any investor ever received payments from Agridime?

This is the question we are trying to answer, especially sinceA livestock Ponzi scheme was dismantled by the Department of Justice in August 2022. And we're not the only ones worried. Many people on Facebook have asked for payment confirmation, like this person:

But although the original Agridime outpost had2,100 comments(and we have painstakingly read most of them), we haven't found a person able to provide a simple,"Yes, I can confirm they paid me!"

...This is different from this person:

Unfortunately, when repeatedly asked to confirm her comment, Carol seemed to disappear.

There's someone else hereto begCarol, to provide some much-needed reassurance:

Again no response. Of all the other risks we've covered by investing in Agridime so far, this is the one we're most concerned about. In addition, we've received feedback from several real farmers who seem amazed at how Agridime can deliver the kind of profits it promises.

Some commentators say that Agridime's "vertical integration" — the fact that it raises cattle, processes meat and distributes it all internally to buyers — is the secret recipe. Still, the returns look high.

And we wonder: will it really come back?Sohnso high, why would Agridime offer to share 20% of profits with investors instead of taking commercial loans at a much lower interest rate?

In any case, we cannot recommend Agridime to our readers until we can confirm that at least one investor has recovered his capital (and hopefully the promised interest as well).

To update: On September 8, 2022, someone else responded to Agridime's Facebook post stating that they had received payment as agreed. While this is somewhat encouraging, we haven't seen any verification documents yet. We will continue to monitor the Agridime website and Facebook page for more information.

there is a fee

Agridime does not charge commissions to investors. Instead, he makes most of his profits from meat sales, sharing 15% to 20% with investors.. In that sense, Agridime is basically a crowdfunding site, just for cattle.propertyor private equity.

Agridime Insurance Policy

You receive an Agridime contractafterinvests in cattle, which it certifies and describes how the payment of profits works. To be clear, we would like to make this agreement publicly available to you.BeforeThey invest, but we did a little research on the comments ofone of Agridime's posts on Facebookand one commenter posted this contract example:

While this contractaspectlegitimate, we didn't receive it ourselves, so we can't verify its authenticity.However, you will find that Agridime says this"All cattle are insured in case of death."If true, it would be significant investment protection.

In any case, there is no further information on the scope of these insurances. For example, what would happen if an entire herd of cattle got sick or died? We've reached out to Agridime for clarification and will update this review when we receive feedback.

To update: Agridime has confirmed that it has its own internal herd of cattle. If your cattle die, you can replace your loss with your own cows, protecting your investment and honoring the contract.

Historical profitability and performance

There is no historical performance data on the Agridime website other than to state that investors averaged over 20% profit on over 5,000 head of cattle in 2021. At $2,000 per capita, this means that Agridime investors contributed with over $10 million last year and made over $2 million in profits.

What are the risks?

Agridime is a newer company, founded in 2017, and their livestock investment side of the business is even newer. It is not known what might happen if Agridime goes bankrupt.

On the positive side, the risk of a meat price drop appears to be a low risk.According to the Bureau of Labor Statistics, the average price of beef in the United States has been rising steadily since around 2000.. Below you find theHistorical chart of ground beef pricesfollowed by the price list for meats.

These charts are encouraging, but it's also important to note that prices rose faster than normal in both 2020 and 2021. If that growth slows, again, it's not clear what might happen to Agridime's profit margins. Changes in the meat market are certainly an underlying risk for investors, but if the Agridime contract guarantees a profit, this is a form of protection.

best alternatives

There really is no other platform that allows you to invest in livestock as directly as Agridime.livestock wealthis the next alternative and this South African based crowdfunding platform allows you to invest in farm animals, macadamia trees and outbuildings. Currently announces up to 14% return on their livestock investments. And like Agridime, its website also guarantees profits, stating that if your investments fail, insurance will at least cover the original purchase price.

Out of these two alternative investment platforms, you can alsoinvest in farmlandthrough companies likeAcreTraderjfarm together. You must be an accredited investor, but each company offers access to income-generating farmland.

Finally, you can always invest directly in beef companies or farmland REITs with youronline stock broker. For example, BRF (BRFS), a global food processing company, has a market capitalization of over US$15 billion. American companies such as Tyson Foods (TSN) are also listed with a market cap of over $30 billion at the time of writing. And for a completely different view of this industry there's alwayslaboratory beef brothyou may think

That said, investing in beef certainly falls into the alternative asset class rather than a traditional investment. You should never invest more than you can afford to lose and always do due diligence when using an alternative investment platform.

final result

Whenever I see "guaranteed return" somewhere, I tend to run for the mountains. And in general, I think it's a good rule of thumb to follow.

But Agridime's business model is very interesting. He uses his wholesale capabilities to buy livestock at low prices. From there, there's a wide enough profit margin for early investors and Agridime to generate a return even if the price of beef falters downwards.

That said, I wish there was more information on the Agridime website about their contracts and how livestock insurance works. And more historical performance data in the future will be very helpful.Personally, I recommend contacting Agridime with any questions before investing.You can call the company at 888-664-6621 or use the contact page on their website to get in touch.

There certainly is the potential for some incredible (couldn't resist) returns based on what Agridime promises on its website. But personally I havemanyof questions I wish I had answered before I was willing to give Agridime $2,000 of my own money.