Producers Cooperative Oil Mill And Plains Oilseed Products Coop

Producers Cooperative Oil Mill (PCOM) Organized in June of Coop Gins -3 Regional Coops -Original Investment $245,000 -Current Member Equity $15 million Today; owned by Cotton Producers through their Members Gins -22 Oklahoma Gins -10 Texas Gins -2 Kansas Gins -8 Arkansas Gins -2 Missouri Gins -14 Tennessee Gins

Producers Cooperative Oil Mill (PCOM) Oklahoma City, 2007 Oklahoma City, 2007

Producers Cooperative Oil Mill Over 64 years of progress Over 64 years of progress through producer ownership through producer ownership

Products  A ton of cottonseed will normally produce -320 lbs of oil -920 lbs of protein (meal or pellets) -550 lbs of hulls -160 lbs of linters -50 lb loss  Of the four primary products produced, oil is the most valuable  PCOM processes & sells PBSY oil, 41% protein meal & pellets, cottonseed hulls, linters, and whole cottonseed out of our Mid-South locations.

The Future Of Oil Seed Processing

Products  A ton of Canola Seed will normally produce -850 lbs of oil lbs of protein (meal or pellets) -50 lb loss  Of the two primary products produced, oil is the most valuable  PCOM will produce Crude Degummed Canola Oil or (CDC)

Nu Sun Sunflowers IN Oklahoma

Products  A ton of Sunflower Seed will normally produce lbs of oil lbs of protein (meal or pellets) - 0 – 400 Sunflower Hulls - 0 – 400 Sunflower Hulls -50 lb loss  Of the primary products produced, oil is the most valuable  PCOM will produce Super Crude Degummed Sunflower Oil or (SCDC), 28-35% protein meal & pellets.

Goal and Objective of Producers Cooperative Oil Mill To maintain a company with a strong balance sheet and to be pro-active in our long term decisions not reactive to the environment that we are exposed to ! A company not afraid to CHANGE ! Make decisions based on knowledge and the best professional information available (Informa Economics)

Adapting To Change Purchased Equipment, alternative crops Canola,Sunflowers,Peanuts,Crambe,Bean Qualified personal for chemical extraction Experienced sales department Established protein markets Established oil markets Contracts and delivery points established PCOM has purchased a new location for expansion.

Plains Oilseed Products (POP)  Is a Cooperative formed through Producer Membership  $100 Membership Fee  Allows Producers the ability to receive rebates through POP from PCOM  Controlled by an elected board of directors  FYE June 30

What Producers’ Needed. - The need for a rotational crop - Control weeds & insects - Improve quality of wheat - In need of a market for oilseed crops

Where does PCOM and POP fit in? (Continued) - Delivery Points - Added value to producers crop - Rural Development

Marketing Contract (Act of God) - Acres (Canola) - Acres (Sunflowers) - Delivery Points - Price Per Pound - Grade & Oil Content

Option to Price Later Contract: 1. Producer can contract pounds and price the oilseed at a later date and time agreed upon by both PCOM and the producer. 2. Upon signing of contract and delivery of commodity, then title of the commodity shall pass to the buyer. 3. PCOM agrees to allow the producer to price the commodity at a later date set forth by the terms on this contract. 4. Pricing of the commodity must be done during marketing hours only and agreed upon by both parties. 5. Producer must price the commodity NO LATER than 12:00 noon CST February 1 of that years commodity harvest. 6. Buyer will price the contract February 1 between 12:00 noon and 1:00 pm CST of the commodity harvested year. 7. Seller states that the commodity he/she is selling is free and clear of all liens and security interests. 8. All settlements will be made within ten days after contract is priced, and all discounts and premiums are applied.

2008 Nu-Sun Sunflowers $.146 per lb Marketing Contract

2009 Nu-Sun Sunflowers $.132 lbs 2009 Canola $.134 / lb. (6.70BU. ) 2009 Wheat $4.34/bushel Marketing Contract

Exhibit 1: US Planted Acreage (thousand acres) Highlights  CRP acres will slip to around 30 million.  2007 will represent peak corn and trough soybean plantings.  Wheat seedlings will slide lower.  Cotton acres will decline materially.  Canola and sunflower will both experience substantial growth.

Exhibit 5: US Soybean Complex Fundamentals Highlights  The US acreage matrix allows soybean plantings to move twoard the high 70 million acre level.  Soybean yields benefit from technology introduced and approach 55 bushels per acre.  Crush increases million bushels annually as US product needs grow.  Exportable supplies grow as production expansion exceeds crushing activity. Exports approach 1.8 billion bushels by 2016.

Exhibit 3: US Wheat Fundamentals Highlights  Food and export volumes experience little growth.  Wheat yields trend higher, registering annual increases of or the orderof 0.5% annually.  Seeded area slips lower as even modest yield increases satisfy anticipated usage volume.

Decisions to be Made!!!!! If I am going to plant Oilseed crops what do I need too do to be successful !!!!! Remember Crop Rotation is Important !!! Ask Questions. Be committed Fertilize-Plant correctly Apply pest and weed control timely Harvest by best method Market crop throughout year with AOG contract with PCOM and POP.

Questions! Thank You