THE CO-OP MODEL
Cooperatives are not a new concept in the agricultural community. Our co-op model is an adaptation of this familiar idea to fit our investment needs and garner ample community buy-in.
Any individual can purchase up to 10 shares total of our stock. This means, for example, that a household of two adults can own up to 20 shares of stock in our cooperative. This also means that businesses and organizations cannot be owners of FarmFED. We are currently developing protocols for donation and sponsorship from such entities (see “Donate or Sponsor” for more information).
Each share of any kind of stock bears the equivalent of one vote in the cooperative. This means, for example, that if one person owns 5 Preferred Stock shares, they get 5 votes, and if another person owns 5 Common B Stock shares, they also get 5 votes.
Shareholders have the right but not the obligation to participate in the cooperative's decision making. This means they can take on as much responsibility as being a board member (which does bear specific obligations) or as little as never voting or attending meetings. You, as an owner of the cooperative, can make of it what you wish. All shareholders will be included in all shareholder communications and invited to all owner meetings.
Benefits of Ownership
PREFERRED STOCK: $1000 per share. Minimum purchase of 5 shares. Interest rate of 4% payable annually, beginning to accrue when the co-op commences business operations (likely summer/fall 2022). Principal payoffs are at the Board’s discretion (and with the intention of paying off within 5–10 years). After repayment of principal and accumulated interest, each share is converted to Common A stock.
COMMON A STOCK: $500 per share. Proportionate consideration for available dividends at the Board’s discretion. Common A shareholders would be considered first in line for any available dividend payments.
COMMON B STOCK: $100 per share. Proportionate consideration for available dividends at the Board’s discretion.
For more information and to become an owner, please see the “Become an Owner” page.