1. Agricultural & Food Cooperatives in Rural Development: Implications of Business Dynamics for Public Policy Company Overview June 16-17, 2004 Agricultural & Food Cooperatives in Rural Development: Implications of Business Dynamics for Public Policy Company Overview June 16-17, 2004

2. Mission Statement “The mission of United Producers is to provide necessary livestock services on a cooperative basis to its members in a business-like manner that will improve their income and be competitive in the industry.”

3. Our Heritage Producers Livestock Association Formed in 1934 - Ohio Farm Bureau affiliate Livestock marketing & financing

4. Corporate Overview Formed October 1, 1999 Merger of PLA & MFA Livestock 521 Co-op Parent Coop – 25-member board  16 Delegate System 70,000+ Patrons Non-stock Coop

5. Corporate Overview Acquired IPLA (IL) – 12/2000 Transaction with Southern States for MLE in March-May of 2001 Agreement with DFA to manage Dairy Financing Services (Texas) 50 livestock facilities Do business in 15 states 205 full time employees

7. United Producers, Inc. Livestock Marketing Member Relations & Government Affairs Board Relations Corporate “ash & trash”

8. Livestock Marketing 25 Weekly Auctions 24 additional collection points All species – except poultry! $1.2 B annual sales volume 3.9 M Head of livestock marketed

9. Livestock Marketing Procurement – feeder and breeding livestock Grazing and back-grounding program Production coordination Packer contracts, supply agreements, investments Parks Livestock - LLC

10. Producers Technologies, Inc. Corporation – for profit Non-traditional, non-member services, fee based 5 member board elected from UPI Board Formed 1998 Risk management & brokerage services with FC Stone Information management & record keeping Production management/coordination Managed Beef Alliance program – value added grant Access to vertical integration – farmers choice

11. Producers Credit Corporation Currently owned by UPI; stock corporation; SSC minority interest 5 member board – elected from parent 501C16 (IRS) – tax exempt $65m – notes/feeding agreements $40m – “California Connection” Ownership in other credit corps in OK & TX DFS Management Agreements - $40M Loan Participations

12. Producers Credit Corporation “ Relationship Lender” Short, intermediate & long term loans Variable & fixed rates Livestock & operating expenses Crops Buildings & equipment; real estate Farm Credit Leasing – origination ACH’s and drafts Differential Pricing NLPA Sheep & Goat Fund

13. Our Issues Net Farm Income Mechanisms to extract more of consumers’ dollar Banking environment Access to capital Livestock production shifts; vertical integration Pending legislation & regulation Packer & retailer consolidation /concentration Cooperative structural alternatives Access to Federal Programs e.g. FSA loan guarantees

14. www.uproducers.comwww.uproducers.com Thank you!