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 from 15 to 20 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. Its purpose is to help start new value-added agriculture businesses and assist existing value-added businesses expand. Once the business entity is created and operating, or has completed its expansion, the business relationship with Ag Ventures Alliance usually ends.
How is Ag Ventures Alliance funded?
Ag Ventures Alliance main source of funding comes from its subsidiary Rural Development Partners (RDP). RDP is a Community Development Entity that has received 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 State. A portion of these management fees are passed on to Ag Ventures Alliance. Ag Ventures Alliance is also funded by charging "development fees" for the business development services provided to start-up and expanding value-added businesses. It also receives funding from investments in start-up and expanding value-added businesses.
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. The value of being a member is the opportunity to participate in business ventures associated with Ag Ventures Alliance.
If I am involved in creating a value-added business through Ag Ventures Alliance, what do I get out of it?
New business ventures are usually structured to reward the individuals involved in creating the business by providing them “founder’s equity” in the new business.