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Don Hofstrand

Ag Ventures Alliance facilitates the development of value-added agricultural business ventures by creating new opportunities and aiding existing businesses in growth. Membership involves an initial investment and nominal annual fee. Past projects like Golden Oval Eggs, Midwest Grain Processors, and Minnesota Soybean Processors showcase successful endeavors. Current projects include Northern Iowa Dairy Development Committee and New Markets Tax Credit Program. Benefits include easier access to equity capital and favorable loan terms. Join to access valuable information, opportunities, and build business skills.

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Don Hofstrand

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  1. Don Hofstrand

  2. Ag Ventures Alliance A Development Organization for Value-added Agricultural Ventures

  3. Ag Ventures Alliance Mission To facilitate the development of value-added agricultural business ventures

  4. Ag Ventures Alliance 1) Create new value-added business ventures. 2) Assist existing value-added businesses develop and expand.

  5. Ag Ventures Alliance MMembership ·$250 initial investment ·$0 to $50 per year thereafter ·Membership list is confidential

  6. Ag Ventures Alliance Current Membership 1,153 Accredited Investors 426

  7. Ag Ventures Alliance Membership Distribution 1 5 1 22 82 91 76 14 5 1 197 5 9 81 133 56 22 5 2 1 2 4 11 8 22 27 10 6 4 12 9 6 7 5 1 2 5 1 6 4 1 1 6 4 7 1 3 1 1 1 1 3 1 1 1 1 1

  8. Ag Ventures Alliance Type of Members Percent Farmers 91 Farm Mgmt. 1 Cooperatives 2 Lenders 1 Organization 1 Landowner 2 Other 3

  9. Ag Ventures Alliance • Past Projects • Golden Oval Eggs (1998-1999) • Midwest Grain Processors (2000-2001) • Golden Oval Eggs (2000-2001) • Minnesota Soybean Processors (2001-2002)

  10. Ag Ventures Alliance • Golden Oval Eggs • 2.7 million bird facility • Integrated layer and breaker • Thompson, Iowa • Permitted for 5.5 million birds • 700+ farmer members

  11. Ag Ventures Alliance • Midwest Grain Processors • Agricultural Industrial Park • Ethanol production facility • 45 million gallons • 16 million bushels of corn • 900+ farmer investors • Investigating additional corn processing • Lakota, Iowa

  12. Ag Ventures Alliance • Minnesota Soybean Processors • Soybean processing plant • 100,000 bu. per day • Brewster, Minnesota • 2000+ farmer members • Oil refinery

  13. Ag Ventures Alliance • Current Projects • Northern Iowa Dairy Development Committee • Aqua-Ventures • SoyEx • Brazil Ag Enterprises • Energy Committee • Other

  14. Ag Ventures Alliance New Markets Tax Credit Program (NMTC)

  15. Ag Ventures Alliance • New Markets Tax Credit Program • 39 percent Federal Tax Credit • Over seven years • 5% in each of years 1-3 • 6% in each of years 4-7 • Located in “low income communities”

  16. Ag Ventures Alliance • Benefits of the Tax Credit • Easier to attract equity capital • Lenders can provide loans with lower interest rates or more favorable terms.

  17. Ag Ventures Alliance • Rural Development Partners LLC • Subsidiary of Ag Ventures Alliance • Community Development Entity (CDE) • Applied for NMTC allocation • Received allocation of $44.7 million • Value-added businesses located in rural areas • National service area

  18. Ag Ventures Alliance Has it been successful? www.agventuresalliance.com

  19. Value of Business Development Producer Alliances(leaders) • Interact with others with similar interests • Idea synergies • Build leadership (champion) skills • Build business creation skills • Building relationships with other organizations, businesses

  20. Value of Business Development Producer Alliances(leaders continued) • Funds to investigate business ideas • Equity capital • Bull-pen business ideas until market and/or technology timing is right

  21. Value of Business Development Producer Alliances(Members) • Access to value-added information/education • Direct notification of value-added business opportunities. • Potentially better quality business ventures • Array of business opportunities • Build business evaluation skills

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