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.
30
1
1
2
25
1
13
5
3
1
1
17
1
1
1
2
1
34
2
1
1
26
5
3
88
2
1
71
3
1
4
1
3
1
12 Soy
1
12
2
STRONG
1,051 Dairy
7
86
1
6
94
3
3
1,332
FAMILY FARMS
124
270 109
1
108
7
44 3
48 8 11
12
27
9
2 21
4
1
2
2
103
6
2
14 Juice
1
126 Produce
5
1
80 Egg
14
87
127
PRODUCER REGIONS
179 Beef
27 Pork
Northwest
Midwest
California
Great Lakes
Mountain
Northeast
South Central
Southeast
2
Poultry
22 Grower
AS OF 02/2009
Historical Financials
Record Sales
2008
Sales
2007
2006
$527,831,009
$432,635,067
$ 333,573,018
Sales Increase $ 95,195,942
$99,062,049
$ 91,145,154
Growth
22%
30%
38%
2009 Financials
Projected Sales and Profits
For the Year Ended December 31
2009
Projected
Sales
$527,377,164
2008
Actual
$527,831,009
Equity
June 2009
Equity
$59,699,486 $56,849,820
Equity to Asset Ratio 46%
Goal is 40%
2008
41%
2007
$43,772,546
39%
CROPP Cooperative Stock
Member stock:
•Class A Common, one voting share for each member
•Class B Preferred – required equity of membershipCapital 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 Mix
June 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 = Independence
Independence = Farmer Control
Farmer Control=Following the
Mission