LandX For Landowners

LandX provides funding based on the market value and production levels of the farmland used as collateral. By tapping into a broader, more sophisticated investor base LandX creates higher interest in agricultural derivative products which translates to higher valuations for the landowners.

The funding is structured so that the payments by the farmers are denominated in a fixed amount of crop share over a perpetual rolling 49-year period. This minimizes the financial impact on the landowner each year, ensuring the payments are fixed at a level that cannot exceed the MACS (Maximum Allowable Crop Share). This financing structure removes currency or commodity price risks.

Step 1

The landowner provides the validator with production yield data for five years, the cadastral records of the property, its geo coordinates, and ownership information.

Step 2

Validator verifies the data, models the crop share and payout, and presents the expected financing terms in USD.

Step 3

Property titles are pledged against the obligation to pay crop share for rolling 49-year periods. A legal contract known as a lien is registered with local authorities.

Step 4

An NFT is minted with the terms of the contract.

Step 5

Farmers deposit the NFT into the smart contract to receive the xTokens. Farmers can sell the xTokens on the market or create an OTC deal.

Step 6

At any time the farmer can buy back the xTokens at market price on decentralized exchanges or OTC which will end the crop-share obligation.

Landowners can use the LandX platform to hedge against future yields while receiving capital and flexibility to invest in the tools needed to maximize the harvesting seasons.

For non-technical landowners, LandX provides support and an OTC desk to ensure everyone is capable of understanding and accessing the capital.

LandX improves upon the existing financial products available to farmers.

  • There is no minimum amount of financing available. The amount of financing available is dependent on the productive area of the farmland pledged and its historical yield

  • Farmers can repurchase the xTokens and burn them on the LandX protocol at any time to clear their commodity obligation

  • LandX connects farmers to more sophisticated and efficient capital markets, increasing the valuation of their assets compared to traditional financing methods.

LandX provides farmers with the upfront capital required to grow their businesses, invest in equipment and modernize their production capabilities. It is more flexible, efficient and fair than the traditional financing that is currently available.

For landowners LandX provides more flexible timely financing at better valuations with more options.

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