1. Perspectives in Cooperative Finance

2. 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

3. 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.

4. 1,051 Dairy Soy Juice Produce 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 488 11 221 27 12 270 109 7 108 44 103 1 342 2 531 1 12 11 1 2 2 13 30 251 17 5 2 12 1 6 14 4 1 26 5 124 88 86 7 94 6 71 3 3 3 2 9 1 1 1 22 1 1 1 1 4 3 1 3 1 1 3 1 2

5. 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

6. 2009 Financials Projected Sales and Profits For the Year Ended December 31 2009 2008 Projected Actual Sales $527,377,164 $527,831,009

7. 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%

8. 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

9. 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.

10. 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

11. 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

12. Equity Mix June 30, 2009

13. CROPP’s valuation? $500 million? $1 billion?? $2 billion???

14. Who does CROPP serve? Professional farmers Today’s farmers Tomorrow’s farmers

16. Equity = Independence Independence = Farmer Control Farmer Control=Following the Mission