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.

1,051 Dairy Soy Juice Produce Egg Beef Pork Poultry Grower PRODUCER REGIONS Northwest California Mountain Midwest South Central Great Lakes Northeast Southeast AS OF 02/2009 1, FAMILY FARMS STRONG

Record Sales 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 Profits For the Year Ended December Projected Actual Sales $527,377,164 $527,831,009

Equity June Equity $59,699,486 $56,849,820 $43,772,546 Equity to Asset Ratio 46% 41% 39% Goal is 40%

CROPP Cooperative Stock Member 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 Mix June 30, 2009

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