perspectives in cooperative finance. cropp mission the purpose of the cooperative regions of organic...
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Perspectives in Cooperative Finance
CROPP Mission
The purpose of the Cooperative Regions of Organic Producer Pools is to create and operate a marketing cooperative that promotes regional farm diversity and economic stability by the means of organic agricultural methods and the sale of certified organic products
CROPP Goals
One: Cooperatively market certified organic products produced by our members.
Two: Market the best tasting, most nutritious and wholesome food as possible.
Three: Establish farmer determined food prices to reflect fair return and to use these prices to guide the cooperative marketing.
Four: Encourage a farming future emphasizing ecological and economic sustainability.
Five: Enable a healthy human livelihood by providing quality employment, cooperation, organic education, and community growth.
Six: Practice environmental awareness and cooperative principles in all aspects of production, handling, marketing, and operations.
Seven: Promote a respect for the diversity, dignity and interdependence of human, animal, plant, soil, and global life.
1,051Dairy
Soy
Juice
Produc
e
Egg
Beef
Pork
Poultry
Grower
127
87
PRODUCER REGIONS
Northwest
California
Mountain
Midwest
South Central
Great Lakes
Northeast
Southeast
AS OF 02/2009
1,332
12
14
126
80
179
27
2
FAMILY
FARMS STRONG
48 8 11
2 21 2712
270 109
7108
44
103 1
34 22
5 3 1
1
1 21 1
1
2
2
13
30
25 1
17
5
2
121
6
14
4
1
26
5
124
88
86 794 671 3
3
3
2
9
1
1
1
22
1
1
1
1
4
3
1
31
1
3
1
2
Record Sales
2008 2007 2006 Sales $527,831,009 $432,635,067 $ 333,573,018
Sales Increase $ 95,195,942 $99,062,049 $ 91,145,154
Growth 22% 30% 38%
Historical Financials
2009 Financials
Projected Sales and ProfitsFor the Year Ended December 31
2009 2008 Projected Actual
Sales $527,377,164 $527,831,009
Equity
June 2009 2008 2007
Equity $59,699,486 $56,849,820 $43,772,546
Equity to Asset Ratio 46% 41% 39%Goal is 40%
CROPP Cooperative StockMember stock:
•Class A Common, one voting share for each member
•Class B Preferred – required equity of membership- Capital Base Plan
Investor stock:
•Class E, Series 1 Preferred – available to anyone living in a state in which we are selling -pays 6% annual dividend
Farmer Capital Base Plan
Class B Preferred Stock
• Required investment by farmers.
• Equivalent to 5.5% of the value of their annual deliveries.
• May only be owned by members.
Class E Series 1 Preferred Stock
• Open to investors in 28 states and D.C.• Minimum Investment $5,000.• Senior equity instrument.• 6% annual dividend, fixed rate, paid quarterly.• Dividend payment can be reinvested or taken in
a cash payment.• Quarterly investment statement
Class E Series 1 Preferred Stock
• Over $25 million in sales
• 1,517 investors from 26 states and D.C.
• $40.0 million authorized thru December 2010
Equity MixJune 30, 2009
Unallocated Farmer, 19%
Farmer Capital Programs, 36%
Outside Equity, 45%
CROPP’s valuation?
• $500 million?
•$1 billion??
•$2 billion???
Who does CROPP serve?
• Professional farmers
• Today’s farmers
• Tomorrow’s farmers
Equity = IndependenceIndependence = Farmer
Control
Farmer Control=Following the Mission