Description:Field of the Invention:
[0001] The invention relates to agriculture, specifically to a method for risk-free cultivation of farmers through blockchain based crowdfunding.
Background of the Invention:
[0002] Farming is a high-risk endeavor that is susceptible against different vulnerabilities, including eccentric weather patterns, fluctuating market prices, and increasing costs of inputs. These risks frequently bring about monetary strain for farmers and can prompt diminished efficiency and productivity.
[0003] Given that agriculture is the primary means of subsistence for over half of India's population, farmers play a crucial role in the economy. Agribusiness contributes fundamentally to India's Gross domestic product, with the area representing around 16% of the nation's all out Gross domestic product.
[0004] Indian farmers also make various contributions to the nation, such as-[0005] food security: Indian farmers are responsible for producing food for the nation's developing populace, and they assume a basic part in ensuring food security. India's food supply chain relies on agriculture, and farmers put in a lot of effort to grow rice, wheat, vegetables, fruits, and pulses.
[0006] Employment: Over half of India's population relies on agriculture for their livelihood, making it the country's largest employer. Farming isn't simply a kind of revenue yet additionally a lifestyle for the vast majority rural communities in India.
[0007] Revenue from exports: Agriculture is a critical supporter of India's commodity income. India is one of the biggest producers of rice, wheat, fruits, and vegetables in the world. These crops are sold to other countries, earning valuable foreign exchange.
[0008] Rural development: Agriculture contributes to the development of rural areas in India. Farmers invest resources into their communities by building foundations, schools, and emergency clinics, consequently working on improving the quality of life for themselves and their fellow citizens.
[0009] Indian farmers have faced a variety of challenges and losses in recent years due to a combination of factors, including – [0010] climate change: Crop yields and livestock production can be affected by changes in weather patterns like drought, flooding, and extreme temperatures, which can result in significant losses for farmers.
[0011] Pests and diseases: Outbreaks of pests and diseases can cause huge harm to crops and livestock, bringing about decreased yields and misfortunes for farmers.
[0012] Input costs: The increasing cost of inputs sources like seeds, composts, and pesticides can eat into farmers' benefits, especially for small scale farmers.
[0013] Market fluctuations: Changes in market prices can altogether affect farmers' earnings, especially in the event that they can't get steady costs for their produce.
[0014] Trade policies: Farmers can lose money if tariffs and trade policies change the demand for and prices of agricultural products.
[0015] Land degradation: Soil erosion, nutrient depletion, and different types of land corruption can lessen soil fertility and productivity, leading to lower crop yields and losses for farmers.
[0016] Lack of access to credit, the possibility of losing data, and other resources: Numerous farmers, especially those in developing countries, battle to get to credit, secure information trust, expansion administrations, and different resources that could end up being useful to them work on their cultivating practices and increase their yields.
Statistical Study:
[0017] As per the National Crime Records Bureau (NCRB), the number of farmer suicides in India was 10,281 in 2019. Nonetheless, it is vital to take note of that not all farmer suicides are straightforwardly connected with losses in farming, as there might be other underlying factors, for example, personal debt, mental health issues, and other socio-economic factors. Moreover, the Service of Ministry of Agriculture and Farmers Welfare, Government of India, has reported that the average income of a farming household in India is estimated to be Rs. 8,931 per month (around USD 121), which is beneath the national average.
[0018] There have likewise been reports of crop losses because of extreme weather events such as droughts, floods, and cyclones, which can have a significant impact on farmers' incomes. For instance, in 2019, over 3.3 million hectares of crops were damaged due to floods and heavy rains in India, bringing about an expected loss of over Rs. 10,000 crores (around USD 1.4 billion).
[0019] Overall, while there is limited statistical data on the specific losses faced by farmers in India, it is evident that a large number of them are having a difficult time making a living and are dealing with serious issues in the agricultural industry. There is an absence of right information because of political perspectives and this is a serious issue for farmers to cultivate crops. The government is making many strides for farmers however that isn't sufficient.
[0020] The revenue earned by farmers in India fluctuates broadly relying upon elements, for example, the type of crops grown, the size of the farm, the region where the farm is located, and the market demand for the produce.
[0021] As per the Ministry of Agriculture and Farmers Welfare, Government of India, the average income of a farming household in India is estimated to be Rs. 8,931 per month (around USD 121). Nonetheless, this figure changes broadly relying upon the region, with farmers in some states earning significantly more than others.
[0022] For instance, as per the State of Indian Agriculture Report 2019-20, the average monthly income of farming households in Punjab was Rs. 23,133 (around USD 313), while in Bihar it was only Rs. 4,469 (around USD 60). Essentially, farmers developing high-esteem yields like organic products, vegetables, and spices might acquire fundamentally more than those growing staple crops like wheat and rice.
[0023] It is essential to take note that these figures just address the average income and don't consider the huge losses that numerous farmers might cause because of variables like crop failures, market fluctuations, and input costs.
[0024] Farming is a high-risk endeavor, as farmers face various vulnerabilities, for example, unfavorable weather patterns, fluctuating market prices, and rising costs of inputs. These dangers frequently bring about monetary strain for farmers, prompting diminished productivity and profitability. Traditional financing options, such as loans from banks or credit unions, may not generally be available or may worry about huge monetary concerns. There is a requirement for innovative solutions that can provide farmers with access to capital to mitigate risks and ensure sustainable cultivation practices.
[0025] Crowdfunding has arisen as a well-known method for raising funds from an enormous number of people or groups through online platforms. Crowdfunding efforts have been effective in different fields, arts, technology, and social causes. However, there is an absence of devoted crowdfunding platforms specifically tailored for agriculture and farming. The invention proposes a method that influences crowdfunding as a way to moderate these risks and provide farmers with admittance to much-required capital.
Summary of the Invention:
[0026] Crowd investing in farming can potentially help to lessen a portion of the risks faced by farmers by giving them admittance to capital and spreading the risk across a larger group of investors. This can be especially helpful for small-scale farmers who might struggle to access traditional sources of finance.
[0027] Crowd investing in agriculture entails pooling a large number of individuals' small investments into a farm or agricultural undertaking. This can outfit farmers with admittance to capital that they probably won't have had the choice to get regardless, and can help with decreasing the risk of a single investor losing a large amount of money.
[0028] Notwithstanding, it is critical to observe that investing in agriculture can still carry significant risks, including the risk of crop failure, weather events, pests and diseases, and market variances. Investors should carefully consider these risks prior to investing and ensure that they are alright with the potential losses that could result.
[0029] Moreover, it is imperative to ensure that the crowd investing platform and the farmers themselves are working in a transparent and responsible way. This can help make sure that the funds are being utilized successfully and that the farmers are sticking to feasible and socially responsible farming methods.
[0030] Overall, while crowd investing into cultivating could help with reducing a portion of the risks faced by farmers, it is vital to carefully consider the risks and to ensure that investments are being made in a responsible and transparent way.
[0031] Blockchain development can be an important innovation in working with crowdfunding among investors and farmers in light of the fact that blockchain has the characteristics of trustworthiness, decentralization, Unchanging nature, Security, and Obscurity.

Brief Description of Drawing:
[0032] Fig 1.is a Connection Model that creates the connection 102 between farmers 100 and Investors 106 through blockchain technology 104.
[0033] Fig 2. is a working model of connection network 212 between farmer 200 and Investor 214 with blockchain 226.
Detail Description of Invention:
[0034] The present invention related to risk-free cultivation of farmers through blockchain based crowdfunding. And more specifically to a system and method for the field of agriculture and addresses the issue of risk mitigation in farming through the use of crowdfunding with the help of blockchain technology. The method includes the connection and working model between farmers and Investors for the safe crowdfunding and yield information through blockchain technology.
[0035] The method connects the farmers with the investors for funds which will include donation, investment, and loan and the investor to farmers for return on funding. This connection will be trustworthy only when there is no discrepancy in any information between farmers and investors. Such transparency can only be achieved through blockchain technology. Fig 1. is a Connection Model that creates the connection 102 between farmers 100 and Investors 106 through blockchain technology 104.
[0036] The working model in Fig 2 includes farmers 200 and farmers will use help of help center 202. Help center 202 provides three types of services to farmers in block 204 viz online campaign create 206 for farmers related to crop, create request 208 for investment from investor, complete detailed summary of crop 210 will also provide to investors before investing. Farmers will easily understand the campaign interface by viewing only and for this help center will charge some very minimal specific fee for this service. 202 will finalize the campaign by 200 before launch into the market or for the 216. The complete information related to crop move to connection network 212 through 202 for investor 214 for crowdfunding. 212 stored all the information data in 226 in three blocks, block 1 - 230, block 2- 232 and block 3 -234 for safety and security.
[0037] 214 will receive complete information through 212 as project information. 214 will perform three responsibilities under window 216 as to contribute to project 218, approve payment 220, finalize request 222 and vote and decide 224. After the decision by 214 the fund will transfer in the form of donation, Investment and loan to 200 with the help of 212 and all data will also transfer to 226.
[0038] 200 will invest these funds in the farming project. When the crop is ready then 202 again helps to sell the crop and connect 200 to market. After complete sale of crop, the profit will be shared as one portion for farmer’s labor, second portion of profit to farmer as incentives and remaining portion will directly transfer to 214 as return on investment. The complete project will be insured and also secure through 226.
[0039] 212 will perform a very crucial role between the 200 and 214 through 226. All the data related to crop information, project information, donation, investment and loan, funding for transfer and return on fund will be directly connected to 226. The 226 will store and secure all data in block 228 through 230, 232, 234. 226 works are based on the Peer to Peer (P2P) system. The whole 226 is connected to all the nodes in the network. This means information stored on blockchain cannot be lost or destroyed, to do so you have to destroy every single node on the network and that is impossible.
[0040] The system may also incorporate risk assessment tools that help farmers identify and mitigate potential risks associated with their cultivation activities, thereby increasing the success rate of their campaigns and reducing the overall risk exposure.
Advantage of the Invention
[0041] The usage of crowdfunding in farmers' development provides several advantages. Essentially, it expands farmers' funding sources, diminishing their dependence on traditional funding choices like loans from banks or credit unions. This lessens the chance of financial failure or bankruptcy because of the inadequacy to reimburse credits. Second, farmers can raise funds from an enormous number of individuals or groups through crowdfunding, spreading the risk among a bigger number of allies. Because of this, particular risks such as crop failure are less likely to have an impact on the farm's overall financial health. Thirdly, Farmers can utilize crowdfunding as a marketing tool, interfacing with consumers and cultivating a devoted customer base who are worried about the farmer's prosperity and eventually the usage of blockchain development can give a secure, transparent, and efficient way of facilitating crowdfunding between investors and farmers. It can similarly help with democratizing the funding process by permitting anybody to take part in putting into farming ventures, regardless of the area they live or their monetary state.
[0042] This invention has the potential to revolutionize farmers' access to capital and risk management in agriculture, eventually leading to more strong and sustainable agriculture methods.
, Claims:1. A computer-based method is used for risk free cultivation for farmers with the help of crowdfunding on blockchain technology platform, containing the construction of a smart agreement that assurances a minimum return on investment, the use of a decentralized blockchain platform to provide transparency and security, and the tokenization of ownership to allow for trade and liquidity.
2. A system for risk-free cultivation for farmers through crowdfunding on blockchain technology, wherein farmers can access funding without risk, while investors can fund farming projects through a decentralized platform and receive a minimum return on investment.
3. An innovative use of blockchain technology provides a secure, transparent, and efficient way of funding farming projects without risk, while also democratizing the funding process and enabling investors from all over the world to participate.
4. A blockchain-based crowdfunding system utilizing smart contracts to guarantee a minimum return on investment, providing transparency and security through blockchain recording of transactions, and utilizing ownership tokens that can be traded on a cryptocurrency exchange to allow for liquidity and investment diversification.
5. A computer program product comprising computer-readable instructions for executing a computer-implemented method of facilitating risk-free cultivation for farmers through crowdfunding on blockchain technology, comprising the creation of a smart contract that guarantees a minimum return on investment, the use of a decentralized blockchain platform to provide transparency and security, and the tokenization of ownership to allow for trade and liquidity.