How is Ag Ventures legally organized?
Ag Ventures is organized as an Iowa Section 501 Cooperative (value-added cooperative).
How large is the Ag Ventures Alliance Board of Directors?
There are usually 13 members on the Board of Directors. Board members are elected to three-year terms at the Annual Meeting. However, the Board can elect “temporary” board members at any time during the year. These individuals can serve until the Annual Meeting when they must be elected by the membership.
As Ag Ventures Alliance expands geographically, will new members be represented on its Board of Directors?
There are no districts for Board member distribution. All Board members are elected “at large”. Any member interested in serving on the Board of Directors can be nominated and elected.
Does Ag Ventures Alliance want to own value-added agriculture businesses?
Ag Ventures does not plan to own and control the value-added businesses it helps create. However, it may have a minority ownership interest in these businesses.
How is Ag Ventures Alliance funded?
AgVA’s primary source of funding comes from its subsidiary Rural Development Partners (RDP). RDP is a Community Development Entity that receives allocations of federal tax credits through the New Markets Tax Credit program of the U.S. Treasury Department. In return for a management fee, RDP allocates these credits to agriculturally related businesses located in low income rural communities across the United States. A portion of these management fees are passed on to Ag Ventures Alliance.
Does Ag Ventures Alliance expect to distribute profits to its members?
In general, Ag Ventures does not expect to distribute profits to its members. Proceeds generated from investments and development fees are expected to be reinvested in creating and developing new value-added business ventures. However, this does not preclude the profit distributions.
AgVA is a “business development” company, not an “economic development” company.
AgVA’s primary purpose is not to create jobs and other economic activity for a geographic area but to create successful businesses for investors and locate them where they can be most successful
AgVA also has a mission aspect.
By creating successful businesses, AgVA also improves the rural economy. In a sense, it is a capitalistic approach to rural development.
AgVA is primarily a “business development” company, not a “passive investment” company.
Its primary purpose is to develop successful businesses of which capitalization is just one aspect.
AgVA is not organized to function in a traditional manner.
AgVA members (and many of the board members) primarily focus on developing businesses and the staff is involved in the smooth functioning of the organization.
AgVA also brings investment opportunities to its members.
AgVA does not endorse or encourage investment in these businesses. Rather it is up to the members to decide the viability and suitability of a business investment.
The “Alliance” portion of the Ag Ventures Alliance name signifies its desire to cooperate with others.
AgVA realizes that working with others generates a synergy in achieving its vision.