Fiji National Provident Fund and the Sugar Cane Growers Fund have revamped their Smart Retirement Plan for members interested in buying a cane farm.
This after FNPF and the Sugar Cane Growers Fund agreed to bring back the plan with a relaunch last Friday.
SCGF chief executive officer Raj Sharma said members could potentially earn more by investing in a cane farm.
“Sugarcane farming investment is considered to be a safe and sound investment for anyone as a good retirement plan,” he said.
“It may be difficult for those earning around $30,000 to buy a house worth $200,000, whereas a cane farm worth $80,000, producing 250 tonnes is worth investing.”
He said members could use the FNPF housing eligibility with the option to buy a farm, buy a farm and construct farm house, buy a farm with house or reduce a farm loan.
“This package is targeted to working class professionals and also to those who would be retiring in the next 10 to 15 years. You will never go wrong with cane farming as it withstands unfavourable weather conditions and you do not have to look for a market.”
He said the investment of $80,000 (house with 10 acres of cane) producing 250 tonnes, gave a net income of $6250 and a return on investment of 7.8 per cent .
“In addition to sugar cane, there is room for other crops for food security cash crops, vegetables and rice. You have to contribute 33 per cent of the cost that may come from FNPF and the rest is funded at six per cent interest rate, repayable over either 12 or 15-year term, provided the loan is paid off within five years before lease expiry date.” While welcoming the initiative, assistant Minister for Sugar George Vagnathan said the initiative allowed many Fijians to move into sugarcane farming.
“I am thankful that FNPF is onboard to assist our people in their times of need,” he said.
He added that investing in a sugarcane farm could ensure members would own a farm and grow their investing team.
