Lucas Simons

Location: Hilversum, Netherlands

Joined: 29/07/2009

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Currently 2.5/5 Stars.

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About: My name is Lucas Simons, founder of NewForesight™. My business is about mainstreaming of sustainability.
We have over 15 years of global experience and networks in the field of mainstream certification of agricultural commodities and we have a strong track record in developing new concepts and market transformation programs that reach large numbers of agricultural farmers in developing countries and help them become more sustainable.
My educational background is in environmental engineering and business administration.
Please read more on http://www.newforesight.nl or http://www.linkedin.com/in/lucassimons

ForeFinance™: Making financial markets work for farmers in developing countries

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The Pitch:

Do you know that globally, millions of coffee, cocoa, cotton and other agricultural commodity farmers don’t have access to credit? Making it hard for them to invest in their farms and fields, have a quality harvest and a profitable, sustainable business. The reason why these farmers can’t get a loan is because banks consider these farmers too much risk to lend them money.

But not all farmers are a high risk group. Many of them are eager and proud to show that they are professional and sustainable farmers and they want to proof their credit worthiness. They just need a credible opportunity to do so.

Through the concept called ForeFinance™, we can effectively organize this on a large scale and create a new market with significant business opportunities for farmers, traders and banks.

The ForeFinance™ organization does this as follows:
• The business performance of the farmer is checked annually by an independent local auditor against a ‘business management standard’. The standard covers topics that are important for banks to know in order to grant loans, e.g. does the farmer/cooperative has a well functioning financial administrative system? Are they able to grow and produce a quality harvest? What is the experience of the management? Are they implementing environmentally and socially responsible practices? Important to note here is that the ‘business management standard’ will as much as possible build on already existing and wide spread certification programs and standards that are out there to avoid duplication.
• The outcome of this inspection shows the farmer what he is already doing well and how he can improve his business even further. If needed, support programs from NGO’s can help the farmers with their continuous improvement.
• The information is disclosed to committed banks and based on this information they can decide to grant a loan. If a loan is granted the farmer can invest in his farm and fields.
• Much like on e-bay, a central database will keep record of the farmers paying back their loans in time, allowing the farmers to build up a trustworthy track record and solid reputation.

ForeFinance™ is not a product or an investment service, but instead an enabler for market transformation with the potential for large impact on system level. Simply by identifying and linking professional and sustainable farmers to committed banks, give them access to credit and give them the opportunity to proof their credit worthiness, ForeFinance™ becomes a major driver for sustainable change.

There are important benefits:
ForeFinance™ gives banks access to an attractive, fast growing market of committed, sustainable and professional farmers. And farmers are able to proof their professionalism and credit worthiness and get access to credit to invest their way out of poverty.

We have already started with developing the ForeFinance™ concept and building the organization. Several (International) banks, investment funds, NGO’s and business schools have shown strong interest in this concept and want to cooperate. The feedback so far is very positive.

Winning the ‘The GoodEntrepreneur’ contest and prize will help us develop the ForeFinance™ concept, organization and systems faster, it will create the much needed International awareness and link us to future partners to jump start this concept.

Thank you for helping us making financial markets work for farmers in developping countries.

Comments:

Karin Emsbroek says: wow mooie animatie! ;-)

rodney Nikkels says: Hi Lucas,

Super concept! It will allow many small holders to have access to finance, which to my knowlegde is critical for their production and thus income.

Best and wishing you all success for the contest,
Rodney Nikkels

marrit rooda says: Great animation for even a greater concept! I truely believe this is what (small-scale) famers need to create a sustainable business for themselves.

Sustainability as TRADE, as opposed to sustainability as AID. That's the future!

Albena Geleva says: Great idea, Lucas!
And a really good way to convey it with that movie :)

Good luck in creating a sustainable future!

Bas Geerts says: Dear Lucas,

Good ideas, like yours above, in the hands of true and dedicated entrepreneurs, like you, are a blessing to the world and society.

I wish you all the very best with this excellent concept!!

Warm regards,

Bas

Pauline Simons says: Imagine the huge impact of this idea if it comes true! Excellent idea presented in the most original way!

Pauline

Ludo van de Wiel says: Compelling pitch Lucas!
Your product will be a success and is going to improve the life of many people who deserve this.

Mark Sedney says: As the producer of the ForeFinance concept presentation I totally support Lucas on this endevour. I have known Lucas since high school and as a good friend, my vote might not be objective, nevertheless I'm convinced that Lucas has the ability to make this concept to a great success. He has done it in the past with the Utz Certified program which he started from scratch and is an international success and used by the largest multinationals in the field. I'm sure he's capable of doing it with ForeFinance as well. He has the right international network, the market knowledge, the business experience and the perseverance to succeed.

Lucas, all the best!

Guus Rozendaal says: This is the best idea I have seen so far.

It is also quite complementary to and will support the work of my organisation (Finance Alliance for Sustainable Trade; www.fastinternational.org), which is also working on reducing the finance gap between producers and banks.

We therefore wish Lucas the best of all success in this competition.

May he be the winner !

Guus Rozendaal,
EMEA Regional Director
Finance Alliance for Sustainable Trade
(Montreal/Quebec - Canada)

Jasper van Deurzen says: This idea is not only an idea, but also a dream. I also have known Lucas since our adolescent years and during this time he often dreamt of making the world a more honest place, a better place. This Idea most definetly will contribute to this dream.

Win this one man!

Dragan Yordanov says: Great concept! If realized it may help to millions of people. And the plan seems to be quite realistic.

Really clear and nice presented, the best one so far. I hope you sucsceed in this venture!

Volen Vashev says: The concept is very nice and useful. However, you will need the assistance of the farmers to develop user friendly system. Otherwise you will have a system, which the farmers don't want to use, just because they don't understand it and cannot (don't want) to spend so much time in learning it.

Lucas Simons says: Dear Volan, thank you for your remark. You are absolutly right. Farmers need to see the added value of the idea and the approach. This is critical. In the set up of ForeFinance we are taking great care of this.
Good remark!
Lucas

Britta Wyss Bisang says: Great idea - hope it gets all the support needed to become reality!!
all the best,
britta

Wouter Emsbroek says: This is really a great idea, like small scale financing. And the promotion of the project is also great, giving a young artist a possibility to show off in a wonderfull animation .

Richard Ferguson says: Hi Lucas, I love the film! And you concept is brilliant, but I'm curious what safeguards are in place to prevent your system over time creating an eventual oversupply of certain agri commodities in some of these regions. I have direct experience in supplying livestock software management and farm accounts systems for the largest supplier in Ireland with over 5000 customers and through my work I get a grass roots view from local producers. There is a real issue with over production of milk in the region right now, created by large scale supply development over recent years, encouraged and funded by banks. Only 12% of milk produced in some parts of Ireland/Northern Ireland is for liquid consumption, the rest is sold on the world powder market for less than cost of production. Many are facing financial ruin because overproduction of this commodity on a world scale has led to a major price drop in the powder market. Thus my concern is this: agricultral production must be balanced and the more entrants we encourage into the market, the harder it is to control that production balance, as everyone naturally wants to build and grow their business.
However, despite my concerns, I still like the idea!

On another note, if you are interested in systems to keep both financial and livestock records in these start-up farm businesses, we have been working on a concept which may provide access to these systems for very little (or even no ) cost.

Good luck with the competion btw, and I'd like to hear your comments on my idea and video (although my production is nowhere as polished as yours unfortunately!)

Regards,
Richard.

Lucas Simons says: Dear Richard, thank you for your compliments and question. I apprecitate it coming form a fellow contestor.

Living in the Netherlands Im very much aware of potential oversupply of agricultural products because of subsidies.

ForeFinance is not a subsidy system, but banks giving loans to profesional and sustainable farmers. banks will only do this if they know the business is well managed and that there is a future profit.

Moreover, in the case of coffee, cocoa, cotton, tea, farmers the fact is that we need more production. Much more if take the future growing population into account. There is a great need for more Food, Feed, Fuel and Fibre.
The main challenge is to do this not by land conversion but by increasing productivity per hectare, increase quality and produce them in a sustainable way.

Sustainability Certification is already wide spread. The next challenge is to give farmers access to credit on a large scale. This is the best way for farmers to become more profesional, more sustainable and get out of the poverty trap. Especially if the criteria for giving access to credit is being a profesional business but also a sustainable farmer.

I thank you for your question.

Good luck

Lucas

Marit Metz says: Hi Lucas,

great idea! Have you considered partnering with MyC4 who are making credit available through small and large private sector organisations and private individuals.

Good luck! Marit

Anita Aerni says: Hey Lucas, this is visionary thinking! Knowing you from our previous work I know that you are able to make a brilliant concept reality!
I am convinced that you will get the necessary support!
Good luck! Anita

Robert-Jan Simons says: Just as the animation, I believe this idea to be a very creative way of combining and further building on existing and proven concepts to help build a sustainable world. I really see it as a truly win-win for all stakeholders involved - banks get better information to manage their risks and grant loans, farmers get access to best-practices and credit which will benefit their local community as well, and last but certainly not least, consumers can rely on sustainable and high-quality products.

Good luck!! Robert-Jan

Mariah Howard says: An ex-colleague of mine forwarded this link to me.

Wonderful idea. I particularly liked the way the animation conveys the information in a clear and simple manner. As a pitch, I think it's a great way to create interest in the concept and does not overcomplicate with elaborate details.

I also want to note that the concept itself sounds well thought out and appears to be a great bridge between corporate thinking and social responsibility.

Good luck. Mariah Howard.