1. Partnership Perils: A tale of two cities Troy Upah Ag Partners, LLC Albert City, IA

2. 7 th Annual Farmer Cooperatives Conference November 1, 2004

3.  September 1, 1997  2 Owners – 50% Private / 50% Co-op  13 Facilities in NW Iowa – 4 Rail Lines  Grain, Agronomy, and Feed  165 Employees  $150 Myn Business  LLC Structure A Unique Joint Venture

5. Albert City Elevator, An Iowa Co-op  Started 1905  900 Farmer Members  9 Member Board  9 Locations  100 Employees  Financial Strength

6. Cargill, Inc.  Started 1865  101,000 Employees – 59 Countries  Cargill Grain Division –Now Cargill Ag Producer Services  Northwest Iowa –4 Locations –65 Employees

7. Accomplishments 1997 - 2004 Completed 03/98 – 16,000 Tons

8. Accomplishments 1997 - 2004  New Culture  Improved Efficiencies  Company Investments  Positive Results  “Evergreen” Agreement Agreement 1 of 5 Bulk Seed Sites

9. Partnering with Investor Firms

10. The Value of An Investor- Owned Partner The Ag Partners’ Experience

11. Operating Independently Guidelines:  Safety Requirements  Spending Limits  Annual Budget –Profits and Capital Spending  Strategic Planning  Quarterly Board Meetings

12. A Stronger Board of Directors 3 Alceco - 3 Cargill  Years of Experience  Ag Industry Knowledge  New Challenges  Outside Perspective  Vision  Autonomy Phosphate Mine Tour

13. Shared Priorities  Safety  Communities - Image  Earnings  Knowledge Gain  Long-Term Vision  Strong Relationship

14. Decision-Making Process  Earnings Impact –Feasibility Studies  Business Centered  Sensitive to Local Concerns

15. Access to Resources  Capital  Risk Management Tools – Grain  Feed Systems  Benchmarking

16. Market Support  Rate Negotiations  Equipment Vendors  Suppliers –Feed Ingredients –Agronomy Products  Market Information

17. Community Support  Student Scholarships  Fire Departments  Libraries  Hospitals  Schools

18. Improved Market Access  Fertilizer Procurement –Phosphates –Nitrogen –Specialty Products  Grain Markets  Feed Ingredients

19. Capturing Efficiencies  Sharing Equipment –Conveyors –Terragators  Sharing People –Applicators, tender drivers, etc.  Sharing Ideas –Market Approach

20. Results  Financial Success  Growth  Safety Results  Employee Satisfaction

21. Challenges  Initial Customer Concerns  Market Perceptions  Supplier Misconceptions Alta, IA

22. An Albert City Elevator Perspective “There is no doubt that our partnership with Cargill has created increased value for our members and our cooperative.” Jim Franzmeier, Board Chairman

23. Thank You!