portfolio - kaapa

PORTFOLIO of

Member

Opportunities

1996 through June, 2013

KAAPA’s mission is to seek and acquire opportunities that can

increase member profits and net worth while promoting agriculture

in general; which may be accomplished by its members producing

for, or investing in, value-added ag projects.

KAAPA’s vision is to be a highly successful farmer-based alliance

that is recognized throughout all of the grain belt, and beyond, as

being an innovative organization that seeks, creates, and promotes

value-added agricultural opportunities, both for its members and

for agriculture in general.

KAAPA Cooperative

P. O. Box 1301

Kearney, NE 68848 308-234-2712

[email protected] www.kaapacoop.com

BACKGROUND In 1994, Leadership Kearney, a volunteer group which seeks economic development opportunities

for the city of Kearney, Nebraska, identified a need for an agricultural based cooperative group. In part,

this came from the unsuccessful bid for the white corn Frito Lay plant to locate in the Kearney area. It was

recognized that it would have been beneficial to have a group that could ‘talk the talk and walk the walk’ of

agriculture and that having such a group may have led to Frito Lay deciding to locate in Buffalo County.

At the “Community Development Conference” held in April of 1994, the creation of an ag

development cooperative was one of the items identified as a priority for the community of Kearney and

the surrounding area. From that meeting an Ag Development Task Force was appointed. This Task Force

began its efforts with organizing a group to ’speak as one voice’ along with setting up test plots from which

quality data would be collected to promote the quality grains produced in the area. Also in the spring of

1995 the acronym ‘KAAPA’ was born when the group arrived at naming this Task Force the “Kearney Area

Ag Producers Alliance.”

Koch Industries provided the initial capital to launch KAAPA (over

$100,000), and with those funds the group organized a Board of Directors

and began recruiting members that paid dues of $100 per year. They

hired a General Manager in 1996, the year of KAAPA’s official creation,

and began to focus on “identity preserved” grain contracts. As well that

year, they began work with Heartland Fibers which was promoting a

technology that converted corn stover to paper pulp. KAAPA proceeded

to raise approx. $10MM for the project, acquire contracts for the stover

and seek a building site. What seemed at the time to be a failure because

the technology could never fulfill the initial objectives and the project was

scratched, turned into the creation of a solid foundation of experience for

KAAPA. What the group learned through the project provided it with the

confidence that it was on the right track with its mission and objectives.

In 2003, this confidence led KAAPA to create one of the most successful

businesses in Nebraska, KAAPA Ethanol.

In 1998, high oil corn was planted and a total of 750,000 bushels

were delivered to Japan in 1999. Soon thereafter, in early 2000, the

group started its first discussions about building and operating an ethanol

plant. From 2000 through 2003, the entire KAAPA Board led by a group

of approximately 6 individuals worked tenaciously on the planning,

engineering, and development of the project, including raising capital in

excess of $28MM for the plant. In November 2003, KAAPA Ethanol had

The KAAPA Logo At a quick glance the significance

of the KAAPA logo may not be

apparent. Yet, if you have ever

seen an aerial view of the corn belt,

its meaning will become very clear.

The superior quality and reliable

production of crops in Nebraska is

due in large part to irrigation, and

more specifically center pivot

irrigation. The logo represents

sections of farm ground, in greens

and golds for corn and other crops,

with the circles created by center

pivots. The blue is for the

reservoirs of water, which is the life

blood for crop production. The

winding “S” represents the Platte

River and Ogallala Aquifer — the

sources of that precious irrigation

water.

its Grand Opening and filled its first rail car with ethanol. Since then, it has repaid, many times over, its initial

investors their original investment. The plant operates successfully yet today and is recognized as a leader in

the ethanol industry.

During those same years, KAAPA supported efforts to attract dairies to central Nebraska and those

efforts resulted in three state-of-the art dairy facilities being started in and around Buffalo County.

Fast forward to 2012 and you can review this booklet to see the projects that were presented to

KAAPA for its consideration, projects in which it invested certain resources such as time, money and effort,

projects that were fully developed, and projects that are currently being considered for either managerial or

financial support. With nearly 450 members throughout Nebraska, KAAPA membership represents hundreds

of thousands of acres of farm ground, and it continues to fulfill its original mission of “enhancing the bottom

line” of those members through value-added ag opportunities. The “KAAPA” family now includes KAAPA

Ethanol, KAAPA Grains, KAAPA Country-Adventures, KAAPA-MEX, KAAPA Investments , KAAPA Investments II,

and KAAPA Aqua Ventures Alliance. Since inception, KAAPA has secured nearly $50,000,000 in capital.

It has often been said that KAAPA is ahead of its time as it has supported projects and concepts long

before they were even on the radar screen of the general public. Perhaps that statement is true . . . KAAPA’s

original project in 1996 was to add value to biomass (corn stover) and now, in 2013, biomass is being sought by

a large number of companies because the product is recognized to have a high value in a multitude of

applications.

Projects that KAAPA is reviewing and considering today

will shape the future of agriculture.

is the original “KAAPA”

organization and is

generally referred to as

KAAPA Cooperative

because it is owned by

members and operates for

its members, while all of

the entities it has created

operate as ‘for profit’

ventures. You can visit

www.kaapacoop.com to

read more up-to-date

information, learn the value

of becoming a member,

and how you can join

KAAPA.

KAAPA

Entities Under Consideration:

KAAPA Biomass

KAAPA Futures Fund

KAAPA Bio-based Plastics

KAAPA Investments III, LLC

TABLE OF CONTENTS

Membership Opportunities PURSUED . . . . . . . . . . . . . . . . . . .

KAAPA Fibers, LLC; Dairy Attraction/Expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Tofu Soybeans, High Oil Corn, Yellow Field Peas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

KAAPA Ethanol, KAAPA-Mex; Bakery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Lutein Extraction, KAAPA Country-Adventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

New Market Tax Credits, Bio-Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Rivas Technologies, Molecular Fuel Injection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Energy Grains Biomass, KAAPA Investments LLC, KAAPA Investments II, LLC . . . . . . . . . . . . . . . . . . 8

Furfural, DDG Range Cubes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Laurel BioComposite, Rare Earth Solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

KAAPA Aqua Ventures Alliance, LignoTech, LTD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Membership Opportunities CONSIDERED . . . . . . . . . . . . . . . . Access Venture Partners, Ag Development Center, Agristand, Alfalfa America, All

Fuels, Ammonia Project, Aratana Therapuetics, Aronia Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Area of WY Waste to Energy Plant, Biorefining, Blue Water Satelite, Central States

Marketing Group, Clean Flex, Cropmetrics, Eagle Technologies LLC, Fairbury Plastics . . . . . . . . . . 15 Feedlogic, Flour Mill Project, Food & Ag Discovery Center, Gryphon Wireless, IPC,

Krystal Planet, Machinerylink/FarmLink, Mexico Grain Export Project . . . . . . . . . . . . . . . . . . . . . . . 16 MFS, Natural Earth Solutions, Naturally Scientific, Nebraska Organic,

Oklahoma Hydrogen Gas Technologies, PEI, Peptide Production of Algae,

Power Energy Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Proman PTO LLC, RC Fuels Inc, Renew Source LLC, Responsible Transportation,

Rolling Plains Holding Company, Show Me Green Coal Coop, Southwest

Nebraska Dairy, Sparks Companies Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Thunderhead Brewing, Turkey Growers Project, Western Area Power Authority,

Westland Resources LLC, Wind Energy Project, WyoComposits LLC . . . . . . . . . . . . . . . . . . . . . . . . . 19

Membership Opportunities EMERGING . . . . . . . . . . . . . . . . . .

Smart Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

LignoTech, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

NU Bio-Fibers Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Misc. Project Ideas . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

KAAPA has nearly 450 members who represent hundreds of

thousands of acres of farm ground in both small and large farming

operations. As a member, you will be informed of the investment and

production opportunities such as those presented in this Portfolio.

You participate in the projects of your choice and at the investment

level with which you are comfortable, as there are no minimum

participation requirements. The annual membership dues are $250.

These dues provide for the overhead and operations of the office,

staff, and basic development efforts. Anyone can join KAAPA, either

as a “Producer Member” or as an “Associate Member.” Only Producer

Members are able to serve on the Board of Directors which assures

members that KAAPA projects are related to value-added agriculture

or in some manner benefit its members.

KAAPA Cooperative

P. O. Box 1301

Kearney, NE 68848 308-234-2712

[email protected]

Whereas it may be desirable for the reader to learn more about a project or the

names of the companies involved in some of the projects listed herein, Non-

Disclosure Agreements and other factors prevent us from providing all of the names

and details.

KAAPA Cooperative has been successful in attracting a number of grants from local,

state and federal agencies. These are not listed in the report. The total grant

awards received is nearly $1,000,000.

1. KAAPA Fibers, LLC was created in 1996 to become a strategic partner with Heartland Fibers, Inc. to produced paper pulp from agricultural residue. The LLC was later dissolved.

2. KAAPA was successful at raising nearly $10,000,000 from its members, and when it became known that the technology was not viable, all of the money, plus interest, was returned to the members.

3. It was planned to harvest between 25,000 to 50,000 tons of stover in 1997, with start up of the processing plant in spring of 1998. The plant would eventually process up to 300 tons of stover annually.

4. The pulp would be environmentally friendly that would be totally chlorine-free and tree-free. 5. The pulp had attributes as good as or better than a hardwood pulp, an acceptable whiteness, and would

be recyclable.

1996 – Technology Failed

1. Whereas the overall economic, social, and political environments have not been conducive to dairy development in Nebraska, the benefit that dairies can bring to the state will warrant further cooperation and efforts.

2. With an increase in the number of dairies comes an opportunity for milk processing and ancillary business development such as distribution and wholesaling of the products. This economic ripple effect is highly desirable for rural viability.

3. The dairy industry has seen major developments in the recent past, including robotics that increase

production and reduce man-hours and related costs.

Just as ethanol production is a premier example of “value-added” agriculture, so is dairy

development. Why? Because the cow becomes the “processing plant.” The conversion of

commodity crops and grains into milk is an efficient way to enhance traditional farm products and

increase consumer consumption.

KAAPA Coop partnered with efforts of the Buffalo County Development Council to attract

dairies to central Nebraska. The result of such efforts was the opening of three dairies in the State

and major expansion of another.

1998 – Joint Efforts Resulted in Three New Dairies in the Area

A Minnesota company proposed a partnership with KAAPA to design, construct and finance a

manufacturing plant in Buffalo County, Nebraska, that would use corn stover as the fiber source for

producing specialty pulp for making paper and paper products.

With corn stover—the raw product—readily available from the major corn growing area in

central Nebraska and the entire production—the finished product— of the first plant committed

under an allocation basis to a select group of paper mills, it seemed that the project was on the right

track for completion and success. Yet, in the middle was the technology proposed by the

Minnesota company and as the project progressed, it became obvious that the technology could

not deliver the product to the specs and profitability proposed.

2.

As another “enhanced crop” effort, KAAPA organized several producers (in significantly greater numbers than with the tofu soybeans) to raise high-oil corn for the specialty market.

The crop maintenance and harvest were successful, as well as the fact that the entire production was handled by two central Nebraska elevators and shipped to Japan.

Once again, however, the overall price premium received was not adequate to cover the increased administration associated with specialty crops, the marketing costs, and the lift and shipping costs. Another important learning experience for KAAPA—timing is everything. The consumer was not yet willing to pay a premium for the value of a specialty crop, limiting the profitability of these “enhanced” crop projects. Once the demand is great enough to support higher prices for these enhanced crops, the profit margins will warrant their production. KAAPA monitors such demand on a continual basis so as to be ready to transition some of its member’s production into such crops.

Recognizing that value-added can also mean enhancing the product to better meet the consumer’s use or perception of a product, KAAPA organized approximately 20 producers to grow tofu soybeans. The project was successful in creating a premium of approximately $1.00 per bushel for the beans. However, overall, the costs associated with a special variety of seed, and the shipping and lift costs, prevented the project from yielding a return significant enough to pursue the production in the following years.

In the spring of 2004, six KAAPA producer members planted and harvested test plots of yellow field peas. These peas are very similar to our garden peas and are raised for both human and livestock consumption.

Planted in early spring, around the 15th of March, this crop matures quickly and can be harvested in early June. This allows the producer to follow with a second crop of soybeans or sunflowers, or other similar crops.

The market for yellow field peas is both national and international. Those grown by the KAAPA producers were sold to a hog feeding operation in Indiana. However, had there been more acres planted so as to produce a greater number of total bushels, the crop could have been sold to several countries abroad as either yellow field pea flour or as crushed peas, thereby establishing a more profitable market to support future production.

The spring weather pattern in 2004 was not traditional, in that we experienced drier conditions early in the spring and wet conditions later in the spring. Thus, net yield was not as high as planned. Future endeavors may be pursued if a reliable source of quality pea seed can be secured and if the Federal Crop Insurance issue can be resolved. The Federal Crop Insurance plans do not allow for the coverage of both crops within a double crop rotation plan. Thus, the producers had to elect whether to insure the yellow field pea crop or the crop that followed. This uncovered risk is a major factor in being unable to further test new or emerging plant varieties.

1998 – Raised Soybeans; Sold for Premium

2000– Raised Corn; Sold for Premium in Japan

2005 – Yield Disappointing; No Crop Insurance

3.

Few projects could promote “value-added” as well as the production of ethanol from field corn. KAAPA started its efforts in 2001, well before most people or groups were even considering such a project.

As one of the first to pursue ethanol production, KAAPA found itself having to not only develop a business plan, but also work with the State Legislature on LB 536 to create a favorable environment for such a business.

Today, KAAPA Ethanol, located between Minden and Axtell in south-central Nebraska, is one of our nation’s most successful plants, and certainly KAAPA Coop’s most successful project.

1. Current production is approximately 55 million gallons annually, which equates to approximately 151,000 gallons per day.

2. The premium paid on a bushel of corn by the ethanol plant has averaged approximately 5 to 10 cents greater than the general market price.

3. The facility has been expanded from its original footprint, including a rail spur to accommodate unit trains. 4. Original investors have received their investment many times over due to the success of the project.

2003 – Highly Successful; In Operation

Through nearly four years of research, establishing relationships, and attending the Governor’s

Trade Mission to Mexico in 2004, KAAPA had found a project that gave clear indication of leading to

a successful relationship with Mexico — while providing traditional American bakery projects.

With the then upcoming sale of a distressed bakery in central Nebraska, KAAPA positioned itself

to start production of traditional baked goods to generate stable income for the business, while

developing specialty Hispanic products for both local markets and exportation to Mexico.

1. KAAPA established relationships with highly successful and expanding broad-line food distributors, as well as working on relationships with existing regional wholesalers and retailers.

2. The baked goods market has been transitioning from fresh baked goods to “freezer-to-oven”, par-baked or fully frozen baked items; the bakery would produce “freezer-to-oven” products.

3. The project would have insured the retention of approximately 14 employees in Central Nebraska, as well as the potential to expand to twice that number.

4. The Mexican demand of quality, and consistency in product, is growing. These features are a natural part of the United States production business.

2005 – Seller Refused KAAPA’s Offer

KAAPA Ethanol now operates entirely independent from KAAPA Cooperative. The relationship remains in

name only, and the two entities do not share staff, revenue, or any other operational elements. In 2010,

KAAPA Ethanol created KAAPA Grains to operate its newly-acquired grain elevator in Elm Creek, NE.

4.

A nutraceutical is defined as “any substance that is a dietary supplement, food or medical food, as defined by the FDA, and provides medical or health benefits, including the prevention and reduction of risk of a disease or health condition.”

The above is a lengthy definition but it adequately describes some of the compounds that can be extracted from alfalfa. With consumer demand for health products growing steadily, and with new research and technology, the ability to extract nutraceuticals for public consumption is a reality in the world of agriculture.

1. Lutein is one of two compounds found in the macular of the eye. Studies indicate that the higher the lever of Lutein, the less likely an individual is to contract age-related macular degeneration.

2. Macular degeneration is the number one reason for blindness for individuals over the age of sixty.

3. In 2004, a pilot plant actually operated and extracted Lutein. The plant was located in Cozad, Nebraska.

4. Nebraska alfalfa has been found superior compared to other state’s alfalfa — because Lutein oxidizes rapidly; thus the heat and sunlight hours of southern states deplete the Lutein and the shorter sunlight hours further north do not produce the quantity of Lutein required for profitable extraction.

5. Consumer demand for Lutein continues to increase at double-digit rates annually.

2005 – Owner of Technology Did Not Proceed

There are a number of agritourism efforts taking place throughout the United States. The value of capitalizing on the tourism industry can easily be understood given the current travel trends supporting more localized travel as a family, by car, and for shorter time periods.

KAAPA Country Adventures is a unique marketing format that would connect private resources with the public, and vice-versa. It has been referred to as the “eBay of agritourism” or the “clearing house for Nebraska agritourism.”

1. For KAAPA members, not recognizing the value of existing resources is the number one hurdle in the development of agritourism. Second, is the cost or limited coverage of liability insurance. Third, is the marketing of the resources. KAAPA Country Adventures was created to help its members (which can be any individual or business) a) identify resources and the revenue potential of such resources, b) seek new legislation or blanket-coverage for liability issues, and c) market the resources through a very sophisticated Internet site.

2. The J. D. Edwards Honors Program of the University of Nebraska—Lincoln, selected KAAPA Country Adventures as one of its “Design Studio” projects for 2005/2006.

3. Current KAAPA membership represents nearly a million acres of Nebraska land, which includes a vast amount of natural, ag, and human resources that could produce additional revenue for the resource owner.

4. KAAPA Country-Adventures filed for, and was successful at receiving, its “CDE” designation. This is a

Certified Development Entity and as such can apply for an allocation of federal New

Market Tax Credits.

2006 – Website Launched;

5.

The New Market Tax Credits (NMTC) is a program of the US Department of Treasury Community Development Financial Institutions Fund (CDFI). It provides an economic incentive for investment in Low Income Communities, which encompasses many Nebraska rural areas. A Tax Credit is awarded to an investor through the CDE (Certified Development Entity) equivalent to 39% of his/her investment. The credit is awarded over a 7-year period. The Federal Government established criteria for entities —called Certified Development Entities —to receive the tax credit allocations and then to award these to qualifying projects. Thus, the CDE has to perform the due diligence, provide oversight and reporting, and assure that the project continued to qualify for the tax credits. KAAPA sought, through its KAAPA Country-Adventures company to become a Certified Development Entity, which it was awarded. The next step was to request tax credit allocations, however due to the complexity and considerable expense of managing these allocations, an allocation has never been requested.

1. KAAPA Country-Adventures remains a CDE, and could be utilized as such if the situation warranted.

2. The minimum tax credit allocation awarded is $50 MM; the CDE would receive 5% of the allocation for its management of the program.

3. In 2012 it was rumored that the NMTC would not be funded in the future.

KAAPA Country-Adventures qualified as Certified Development Entity

Whereas there are several proposed and developing biodiesel projects throughout Nebraska and the Midwest, KAAPA has elected to pursue techniques associated with their ethanol production facility rather than begin a new project.

Heralded as a scientific breakthrough, the first process for extracting corn oil for use in biodiesel has been unveiled by a partnership of ethanol producers, including KAAPA Ethanol. This partnership has already been able to consistently use corn oil to produce biodiesel that meets fuel standards. The partnership includes VeraSun, Glacial Lakes Energy, KAAPA Ethanol, Golden Grain Energy, and Ethanol Oil Recovery Systems. A new $40 million plant in South Dakota could soon follow to clean and convert the extracted oil into biodiesel.

1. Biodiesel: • can be used at 100% levels or mixed in any proportion with No. 2 diesel or No. 1 diesel • contains no nitrogen or aromatics • has characteristically low carbon monoxide, particulate, soot & hydrocarbon emissions

2. Biodiesel has the highest energy content (BTUs) of any alternative fuel and is comparable to No. 1 diesel.

3. Biodiesel is a high-lubricity, clean-burning fuel and fuel component for use in existing, unmodified diesel

engines. It is the only alternative fuel that offers such convenience.

2007 – Pursued by KAAPA Ethanol

6.

Rivas Technologies originated with Victor Rivas and his efforts with the University of Nebraska-Lincoln. The technologies included a biodegradable, conductive plastic that dissipated heat as well as providing EMI and EMD properties. EMI, electro-magnetic interference shielding along with protection from ESD, electro-static discharge, meant this bio-based plastic could be used in medical sensors, microchips, cell phones, computer cases and other applications requiring those characteristics. Another technology was to further enhance micro capacitors and super capacitors; again being applicable in the medical fields and specialty products. Mr. Rivas held four key patents relating to the technologies.

KAAPA was a strategic partner with Rivas Technologies in seeking further development and funding of the final stage research and development. Of specific interest to KAAPA was the opportunity to produce biodegradable plastics from corn that had conductive properties, which was not, at that time or currently, available in the marketplace.

1. One of the patents was for eyeglasses that contain a microchip that could monitor, and relay to a remote computer, the person’s heart rate, blood pressure and other critical data. Similar technology can be seen today in bracelets and other apparatuses.

2. The scope of this project would have been tremendous due to the breadth and depth of the technologies.

3. It remains unknown as to whether the technologies could have been developed to commercialization.

2008 – Loaned $145,000; co. defaulted, no resolution to date

Even without the recent extreme price increases in gasoline and diesel, fuel costs make a dramatic impact on an ag producer’s bottom line. Mitigating this input cost can significantly improve the net revenue for farmers. Also, to develop a project that would provide similar cost relief to the general public would truly be a “winner.”

Clean Motor Fuels (CMF), originating in Israel, and KAAPA conducted a cooperative trial of their injection system on turbo diesel irrigation wells and diesel combines. This injection system consists of utilizing methanol (and CMF has begun testing ethanol), castor oil, a secret ingredient, and a computer chip to regulate the system.

1. Clean Motor Fuels is incorporated in the State of New York with the research and development credited to Moshe Lerner of Israel. According to CMF, Mr. Lerner was the primary designer of the Blackhawk helicopter fuel system.

2. The engines that were tested all ran quieter, cooler, cleaner, and had an increase in power.

3. Upon receiving the field test results, further lab testing will be performed.

4. If all testing indicates an economical benefit for the producer, the project will grow to include a marketing business, distribution business, and installation business.

2008 – Owner of Technology Did Not Proceed

7.

With the advancement in technology, the ability to extract ethanol from cellulosic materials has greatly improved. With the Energy Independence and Security Act of 2007 being passed, several companies are seeking to meet the 1 billion gallons of cellulosic ethanol requirement established in the Act. All of these efforts depend on securing a reliable, price-stable supply of high quality cellulosic feedstocks. Energy Grains Biomass (EGB) sought long-term, mutually beneficial supply agreements with farmers for their corn stover.

KAAPA entered into a contractual arrangement with EGB to secure seven year corn stover contracts, and was successful at contracting over 100,000 tons within a few months. Parameters were established to assure that nutrients remained on the field as well as wind coverage and moisture retention capabilities. It was further planned to return the nutrient-rich ash from the processed cellulosic biofuel back to the farmers’ fields.

1. The Federal Government has recognized that correctly pursued, cellulosic ethanol and other biofuels can address many of the issues undermining our national security and environmental well-being.

2. To achieve the potential of cellulosic biofuels, a clean, affordable, and reliable supply of feedstock is required. Nebraska has huge quantities of qualifying biomass.

3. There has been a major shift away from thinking that biomass is agricultural ‘waste’ to it being a potentially profitable ancillary crop for farmers.

4. As of 2012, there are no full-scale cellulosic ethanol production facilities in Nebraska.

2009 – Secured contracts for over 100,000 tons of biomass; company elected not to proceed.

Late in 2009 and throughout 2010, KAAPA raised capital from its members for a specific project. That project was to ‘mature’ and utilize the funds in 2010. However, the project did not proceed as planned . At the same time, additional opportunities for KAAPA members had arisen. With the changes occurring in the initial project and other attractive opportunities being available, KAAPA recognized that the funds could be invested into a number of projects, thereby offering diversification to the investors. Therefore, members were given the opportunity to retain their investment, which would now be diversified into three or more investment opportunities, or to withdraw their investment. The net result was a total capital raise of $4MM, of which, at the time of this report, was invested in three projects with an additional two projects under consideration.

2009 & 2011 Raised $4MM / allocated to 3+ Projects

Each of the KAAPA Investment LLCs represent the type of entity that the SEC (Securities and Exchange

Commission) recognizes as an ‘investment fund.’ As such, the SEC has certain regulations and restrictions to

which these funds must adhere. One such restriction is that no such fund shall have more than 100

investors. Therefore, when a fund nears a total of 90 investors, KAAPA is required to create another fund.

Additional regulations apply that sometimes further restrict certain activities.

8.

This is an emerging technology that is providing breakthrough solutions in the cubing process of dried distillers grains (DDG) to facilitate ease of transportation and on site delivery into geographic areas where livestock require high protein and energy supplementation over a scattered topography. Using dried distiller grains as a protein supplement is not a new idea. Farmers and ranchers have been feeding DDGs to cattle for many years. The traditional methods of feeding cubes however was to add fillers to hold the cubes together, thereby reducing the nutritional value per weight/volume. This patented technology provides a solid cube, or feed tub, of 100% DDG that does not fall apart or require fillers. This provides more protein per pound to the animal and easy transportation and delivery.

1. The process can be applied to other feeds tocks as well, and allows for custom blending of grains to meet the needs of the feeder.

2. KAAPA continues to monitor the progress and retains an excellent relationship with the business.

2012 – Made offer of investment; declined

1. The primary goal was to develop a sustainable and economically viable biomass supply chain utilizing an existing agricultural waste stream to produce higher value products including chemicals, co-generation of power, and cellulosic ethanol.

2. It was recognized that to assure sustainability, the supply chain must present economic incentives and long term revenue potential significant enough for agricultural producers to learn new methodologies, invest in specialized equipment, and commit their agricultural residue within long term contracts.

3. Furfural production, its co-products and its downstream applications could have provided those economic incentives if the factory could be assured of an adequate supply of the biomass. Thus, the project was attempting to create both the “supply and demand” ends of the supply chain simultaneously.

In 2010 and 2011, KAAPA found itself aligned with three companies, two large and major players in their industries and the other a startup in rural New York. Interestingly, they all sought biomass —primarily corn stalks and corn cobs—and more interestingly they could each process what they needed from the biomass in succession. KAAPA attempted to receive federal funding to put together this vertically integrated supply chain but was unsuccessful. Each of the companies are, however, proceeding on their own independently. (Non Disclosure Agreements prevent these companies from being named herein.) In essence, cobs could be processed to remove certain sugars, then further processed to remove furfural, with the remaining byproduct being incinerated to produce electrical power. It is easy to see the synergies that such a system of processes could create. KAAPA’s primary interest in this multi-process opportunity was that it meant that because of extracting three uses from the corn stover, farmers could possibly be paid, for the first time, the full value of their corn stover.

2011 – Submitted Grant Proposal for Multi-purpose Project/Grant not received

9.

1. Rare earth elements are actually not rare; they were just some of the last minerals and compounds to be identified and named on the periodic table. Few people recognize them by name: lanthanides, scandium, and yttrium (plus several more). Cerium is actually the 25th most abundant element at 68 part per million, similar to copper.

2. Despite bio-based fuels and wind energy development, solar holds greater promise in meeting global energy needs.

3. Rare Earth Solar would be one of the first “Silicon Prairie”, versus Silicon Valley, energy companies to be developed.

Utilizing bio-based materials in the production of plastics is an excellent way to reduce consumption of foreign oil as it is the primary ingredient in pure resins such as polypropylene and polyethylene. Utilizing an ag-based material, such as distillers grains (byproduct of ethanol production), is even better.

In recognition of the ‘added-value’ to an ag product, as well as the opportunity to participate in a multi-billion dollar industry such as plastics, KAAPA spent an extensive amount of resources in performing due diligence on the Laurel BioComposite project as well as providing initial management assistance to the project.

1. Trade name of bio-based resin filler is BioRes.

2. The production facility will be built in Laurel, NE, and at full capacity can produce 48 million pounds of resin filler annually.

3. Production is anticipated to commence in early 2013.

4. Over 200 KAAPA members invested in the project through two investment funds created by KAAPA

Coop.

At the peak of scandal surrounding solar energy companies (collapse of government funded Solyndra) KAAPA sought a relationship with an emerging Nebraska-based solar company that utilized a new technology that could substantially reduce the cost of solar energy. Cost is recognized as the leading reason that the industry has not expanded to fill unmet energy needs. This company, Rare Earth Solar, utilizes a method of processing the solar panels that is both more efficient and less expensive than current methods. KAAPA recognized that the project would take several years to develop, but was successful at negotiating an attractive position for its ‘early-in’ funding. As well, KAAPA owns units in the parent company, Rare Earth Holding Company, which is concurrently pursuing the development of additional technologies.

2012 – Invested $500,000

2012 – Invested $285,000

10.

In late 2011, Aqua Ventures Alliance, an Iowa company established by Iowa’s ag development cooperative, Ag Ventures Alliance, approached KAAPA about a possible investment in their project, an 814 acre shrimp and finfish production facility just north of South Padre Island in Texas. KAAPA was indeed interested and had planned to invest a limited amount of the dollars currently held in the KAAPA Investment, LLC funds. In very early 2012, Aqua Ventures Alliance informed KAAPA of their inability to meet the requirements to purchase the farm. Since KAAPA had collectively enough capital on hand through the two investment funds (KAAPA Investment and KAAPA Investments II) it was able to negotiate a new purchase agreement and pursue ownership of the farm.

Previously known as Harlingen Shrimp Farms, the shrimp farm had been in operation since 1982, making it the longest operating shrimp farm in the United States. The purchase included the 814 acres of ponds and canals, a 40,000 sq. ft. concrete hatchery building, and most of the equipment required to operate the farm, as well as staff and employees with years of experience in managing and operating the facility.

KAAPA proceeded to raise additional funds for working capital and for upgrades and improvements since the farm had been in disrepair for a number of years. The capital campaign resulted in KAAPA members investing $2,750,000 in less than 30 days allowing the purchase and start-up operations to proceed smoothly, which ultimately resulted in the farm producing 500,000 pounds of shrimp in 2012.

The hatchery produces millions of PLs (Post Larvae shrimp “babies”) which it utilizes both to stock the ponds on site and also to sell to other shrimp farms in the US.

It is the intent to continue to operate the farm as an aquaculture facility. However, a second bridge from the mainland to South Padre Island is under consideration and its proposed location is less than 3/4 mile from the farm. In time it may be prudent to develop the bayside acres for commercial use in anticipation of the potential profits that could be generated for the investors.

1. The “doing business as” name is KAAPA Aqua Farms. 2. The farm will produce both shrimp and redfish. 3. Improvements and upgrades will be required for a number of years to bring the farm into full

production.

2012 – Purchased Existing Shrimp & Finfish Aquaculture Farm

2013—Invested $500,000

11.

A relationship with LignoTech of New Zealand started in 2009 through the Laurel BioComposite project. In early 2013 KAAPA was given the opportunity to invest directly in this company, which it did. Since then, LignoTech’s plan to develop the business in the United States has expanded. Due in part to the work and influence of KAAPA, LignoTech is currently (June 2013) giving strong consideration to locating their IPF (Initial Production Facility) in Nebraska. Please see Page 23 for more details.

KAAPA Cooperative P. O. Box 1301

Kearney, NE 68848 308-234-2712


Presented in alphabetical order.

A technology based venture capital fund

whose investment activities focus on clean

technology; software as a service; data

integrity; and new media.

Ammonia

Convert biomass to hydrogen; convert

biochar to Ammonia.

Aratana Therapeutics

Develops innovative medical treatments for

companion animals such as dogs and cats.

Aronia

Aronia (Chokecherry) used extensively in

shelterbelts and for wildlife habitat, also

happens to contain 10X the antioxidants as

cranberry juice. Efforts are being made to

commercially grow and harvest aronia for

sales of the juice to the public.

Proceeds of the offering would be used to

acquire and operate an ethanol plant

located in Rosholt, South Dakota.

All Fuels

Access Venture Partners

Ag Development Center

Program designed to provide basic business

development assistance to agribusiness

ventures in order to promote growth,

expansion, innovation, increased

productivity and management

Agristrand

Manufacture “eco-friendly” soy Composite

Panel products which will enrich the global

environment by creating a unique “green”

value proposition for consumers while em-

ploying innovative manufacturing processes

that maximize the Company’s return on in-

vestment for its owners, employees and the

Alfalfa America

Value added nutraceuticals and proteins

from alfalfa.

14.

Provide a useful system for clean-up of

municipal and other solid waste and

produce clean energy in the form of

electrical power.

Cropmetrics

Develop and supply precision management

technology solutions that increase water,

nutrient and energy use efficiency while

fostering natural resources conservation.

Area of WY Waste to Biorefining

Develops and licenses proprietary

technologies for the extraction of value-

added products from plant-based material;

enhancing profitability through maximizing

the number and value of co-products

contained in a single raw material, while

Blue Water Satellite

BWSI uses satellite imagery and patented

image processing algorithms to measure

chemical and biological constituents in water

and on land around the world up to 40% less

than conventional sampling methods.

Central States

Provide end users with direct access to the US

producer so that they can secure a quality,

identity-preserved product, potentially grown

for their specific needs; and supportive to the

end goal that end users, as well as investors,

will have a unique opportunity to own US

.

Clean Flex

Clean-FLEX, situated in the heart of the

Nebraska corn belt, has spent 5 years of

research & development to commercialize a

corn based biofuel technology in which an

ethanol/water mix is injected as a fine mist into

the engine's intake air stream. Benefits are

significantly reduced emissions and up to a 30%

.

Eagle Technologies LLC

The oil business is booming in the US and low

impact, environmentally friendly drilling tech-

niques are in big demand. Eagle addresses all of

the concerns such as minimizing environmental

damage and contamination, avoiding water

pollution and improving water usage efficiency

through water recycling by utilizing

environmentally friendly drilling techniques.

Fairbury Plastics

Fairbury Plastics will use an incredibly strong, yet

inexpensive composite material developed by

Interfactial Solutions along with a unique manu-

facturing process to produce panels in a range of

gauges that will be a superior substitute for HDE,

MDO and marine-grade plywood.

15.

Gryphon Wireless

A wireless Internet Service Provider in Kearney

offering the community one of the most

advanced broadband technologies available.

Service is unique it its ability to be mobile,

portable, or fixed, non-line of sight, high-speed,

and wireless for data.

IPC

IPC prepared a feasibility study on the

development of a large scale milling/frozen

dough manufacturing facility.

Krystal Planet

The mission of Krystal Planet Corporation is to

convert one million households to clean,

renewable wind energy by 2010 using grass

roots marketing.

Machinerylink / FarmLink

MachineryLink, Inc. is the leading provider of combine leasing products to producers throughout North America. FarmLink is a MachineryLink company which provides a constant stream of harvest information from nearly 2 million acres of cash grains to provide unprecedented yield information that can be instantly compared to historical averages.

Mexico Grain

Origination of grain from Central Nebraska for

export to Mexico.

Food & Ag Discovery Center

Investigate the potential to develop the concept for a Food and Agricultural Discovery Center to be located near the proposed Great Platte River Archway near Kearney. The center will tell the story of our nation’s and world’s food supply and modern agriculture’s role in providing a safe, healthy, nutritious, plentiful, high quality supply of food and fiber.

Commercialized patented technology for livestock productions systems. New line of products developed in 2010 targeted at swine and poultry producers and feed manufactures designed to meet growing demand for simple, low cost technology to measure feed usage at production sites alter feed diets on-the-fly.

Feedlogic Flour Mill [Project]

Exploration of the potential to establish a flour

mill in Southern Nebraska.

16.

Naturally Scientific has developed and patented an engineering solution that processes and recycles waste CO2 to produce valuable sugar, pure vegetable oils, and their derivatives, for use in the pharmaceutical industry, food and beverage industries and as sustainable feedstock for bio-fuels.

Naturally Scientific

PEI Worldwide is the exclusive producer of Thura-Block panels, shingles and steel truss systems. They are the first LEED-certified structural products that are price competitive with 2"x4" stick-build construction and less expensive than 2"x6"; and are produced with a mixture of 15% cement, 85% recycled expanded polystyrene and a relatively limited amount of water.

PEI

Peptide Production

UNL has isolated a peptide, a protein, in colostrums that has tremendous application possibilities. This peptide can be grown in basic blue-green algae, which can be farmed and harvested in greenhouses. This peptide could be valuable for the military as it prevents dysentery and other intestinal problems associated with unfamiliar bacteria.

Oklahoma Hydrogen Gas

Builds, distributes, services and sells Hydrogen Fuel Generator Systems for certain models of gasoline and diesel engines, synthetic oil products, emission and tuning components, fuel enhancers, two-speed overdrive units, and other products which apply in the fuel economy improvement market.

Power Energy Fuels

Technology to produce Ecalene, an alcohol product that is the clean alternative fuel solution. Process uses the waste that contaminates our environment and turns it into the finest sustainable renewable energy product.

MFS

Clean Motors Corporation developed a

technology to permit the operation of diesel

motors and power units more economically

and efficiently, technology includes special

fuel, fuel additives and certain electronic

components.

Natural Earth Solutions

Promote the use of compost and compost extract by providing the equipment knowledge, and support necessary to utilize waste material in the production of compost extract resulting in enhanced nutritional value of agricultural products, and minimized use of environment damaging

chemicals in rural and urban areas.

Nebraska Organic

Produce organic fertilizer in dry and liquid forms; reduce dependency on chemical fertilizers that can be used for other purposes; provide an environmentally friendly alternative for fertilization of crops, gardens, lawns and house plants; reduce feedlot runoff, wastes, smells and disease at minimal cost and increased profit to the owner.

17.

Sparks Companies, Inc.

The study to examine the feasibility of a corn

and soybean processing operation in Kearney.

Study focuses upon assessing the viability of

constructing a soybean de-oiling and corn de

-germing/de-oiling operation in the area in

which the KAAPA membership is located.

Southwest Nebraska Dairy

Feasibility study conducted by Investment

Property Exchange, Inc. on the benefits of dairy

relocation to the Midwest.

Rolling Plains Holding

Company is raising money to acquire and

operate large-Scale feed yards, primarily in

the High Plains mainstream cattle-feeding

Show Me Green Coal Coop.

Missouri farm cooperative (or other eligible entity). The intended facility is projected to produce 100,000 tons of torrefied biomass pellets (Green Coal) annually which would have

a current estimated annual wholesale market value of $20-$30,000,000 and employ approximately 60-65 Missouri workers.

Proman PTO, LLC

Patented ProManPTO quick connect/

disconnect Hydraulic power take off

system for standard Utility Terrain

Vehicles (UTV’s) and All Terrain Vehicles

(ATV’s).

RC Fuels, Inc

Evolve and commercialize a micro-organism

based technology that will exhaustively

convert sugar into ethanol and later, other

organic fuels.

Development of a turnkey renewable energy facility in Sidney, NE. Project consists of the construction and operation of a dry mill process 40-million gallon per year ethanol plant, 50,000 head feedlot for beef cattle and a 15 MGY biodiesel facility.

Renew Source, LLC

Responsible Transportation will be a meat

processing and manufacturing company aimed at

adding value to the unwanted horse population.

Horses will be humanely processed and products

will be sold domestically and abroad for both

human and animal consumption.

Responsible Transportation

18.

Thunderhead Brewing

Proposal to expand into production brewing with Packaging. Great Nebraska beer with a convenient package will become available to the tri-cities and Lincoln with a future goal of beer state wide. Exporting nation wide will be covered in a future business plan.

Westland Resources, LLC

Provides a shared opportunity to own, protect,

conserve and enjoy the resources and

amenities of large ranches in proximity to prime

exclusive locations at an effectively lower price

than the stand-alone ranch offerings currently

on the market.

United States federal agency under the

Department of Energy assigned to transmit

and market federal hydropower in the Central

and Western United States.

Western Area

Power Authority

Turkey Growers [Project]

Assist with the sale of the Nebraska Turkey

Growers Cooperative (“NTG”) which

operated a turkey processing plant in

Gibbon, Nebraska.

Reviewed options presented by several wind energy companies and groups pursuing wind development in Nebraska. Particular interest has been the potential installation of smaller generators for on farm power generation.

Wind Energy [Project] WyoComposits, LLC

Design and manufacture eco-friendly, high performance composite building products that contribute to a low maintenance, healthy lifestyle while being committed to remain at the forefront of natural fiber-polymer composite technologies by bringing to market new and innovative products that benefit the environment and society.

19.

There is never a shortage of great ideas relating to value-added

agriculture. Ideas come from producers themselves as they see ways to

create new products or efficiencies in their operations, as well as from

national and international sources who understand that agriculture can

provide the world with new processes, new products, new ways to reduce

carbon output, and renewable inputs for a wide variety of products.

Every idea takes a variety of resources: hard work, dedicated

management, and considerable capital to get it developed. Deciding

which ideas warrant such resources from KAAPA is the difficult part.

KAAPA invites you to share your idea or discuss with its staff which of the

development resources your project may require.

KAAPA Cooperative

P. O. Box 1301

Kearney, NE 68848 308-234-2712


This section contains projects that have not yet been fully developed, thus the information

presented is limited and should not be considered as a solicitation for investment. You may

wish to discuss these projects directly with a KAAPA board or staff member.

Smart Yield is a guaranteed introducing broker (GIB) through R.J. O’Brien and Associates. They are a member of the National Futures Association and registered with the Commodity Futures Trading Commission, specializing in hedging, trading and/or investment strategies with the goal of enhancing our client’s portfolios.

Smart Yield is located in central Nebraska, and was established in 2004. They specialize in trading six different commodity classes including grains, meats, metals, energies, currencies and softs. Smart Yield uses state of the art, award winning trading software to help our clients with entry and exit strategies.

Smart Yield also implements strategies in the futures and options markets as a hedge tool for producers and end users. Smart Yield s strategies are backed by over 20 years of hedging experience. The Smart Yield Team utilizes the most current technical and fundamental analysis to help guide producers in hedging strategies.

OBJECTIVES • To create an opportunity, through Countryman Financial and presented by Smart Yield of

Kearney, for KAAPA members to learn more about futures trading, and to • Establish a “KAAPA Members Only” investment fund which will provide an opportunity for

greater diversification in futures trading, with such fund void of the 2% management fee for KAAPA members.

• For KAAPA Cooperative to pursue partial ownership (less than 20%) of the company Smart Yield, thereby consummating the opportunity for its members to have the opportunity to invest in a futures fund at a lower cost while providing net revenue from Smart Yield to the Cooperative (thus providing an ancillary income stream rather than all revenue from membership dues)

OTHER • Futures & options are performed with pre-approved marketing plan • Smart Yield effectively tracks cash sales and positions • Smart Yield team has been quite successful at generating positive returns for a number of

years • Would provide further investment diversification for KAAPA members. • Futures trading workshops will be hosted by KAAPA and presented by Smart Yield staff for

KAAPA members to better understand the opportunity and the products offered by Smart Yield

CAPITAL REQUIREMENTS • KAAPA Cooperative would secure approximately $100,000 to purchase a small percentage

of the Smart Yield company. • Initial “KAAPA Members Only” fund goal would be $1,000,000 with a potential expansion of

that goal in year two or as interest warranted; the fund itself may have a minimum requirement (anticipated to be approx. $10,000)

• This is NOT the purchase of units or shares in a KAAPA investment entity but rather a direct

purchase / deposit into a futures fund created specifically for KAAPA members with no

annual management fee (2%).

• Fund results vary but historically Smart Yield has met their target return of 8 to 10%. The

2013 yearly projections indicate a return (as of June 1, 2013) of approximately 9.8%.

22.

LignoTech of New Zealand was the company from which Laurel BioComposite initially licensed the technology for the production of the bio-based filler for plastics, Ligno-MAXX. In 2011, Laurel BioComposite opted to develop its own product and terminated its contract and relationship with LignoTech.

LignoTech utilizes a mechanical, chemical and technical process to alter the molecular structure of biomass in such a way as to make it a compatible additive, or filler, for traditional plastics such as polyethylene or polypropylene. (Laurel BioComposite utilizes a chemical process.) The mechanical system basically utilizes steam and pressure to break down the composition of the biomass. The end result is a black, wet, and almost clay-like substance that can be dried and ground into a fine powder or pelletized, depending on the final application of the product.

Since LignoTech was initially licensed with Laurel BioComposite and had a business plan established around that license agreement, they have now had to restructure their business plan and have done so with solid development opportunities identified. During late 2010 and continuing to the present, LignoTech contracted with Scion Laboratories of New Zealand to continue developing the product since it originally had a peculiar odor and unsatisfactory thermal stability (it smoked when it got too hot). Through Scion and efforts of their own technical staff, Ligno Tech has made substantial improvements to the product and believe that they have a marketable product at this time.

LignoTech has raised additional capital and has remained ‘in the driver’s seat’ of the project and has not sought a licensor of the technology. The last capital raise was started in the summer of 2012, and KAAAPA invested $500,000.

The product made by LignoTech has been commercially tested in a variety of end products and through different processes. It has, when replacing calcium carbonate (a resin filler), had excellent results indicating the final product to be 11% stronger and 11% lighter weight, with good dispersion capabilities. This ‘lighter and stronger’ characteristic makes it an attractive material for automotive parts as it reduces fuel consumption. Domestic sourcing and production versus dependency on foreign oil is also an advantage.

All of the details of the company development, especially in the U.S., and the investment parameters are not known at this time (June 2013). However, substantial influence, on behalf of KAAPA, has been exerted so as to encourage the construction of the first plant to be located in Nebraska. With it’s central location in the U.S., the ample supply of biomass, and supportive economic development climate, Nebraska is currently one of the States under consideration. KAAPA may be in a position to be a significant shareholder in the company.

OBJECTIVES

• To create an investment opportunity for KAAPA members to own a significant percentage of the LignoTech USA entity.

CAPITAL REQUIREMENTS

• KAAPA’s investment could range from $3 to $6 million.

23.

This initiative, which is currently seeking grant funding, proposes to capitalize on the sustainable bio-fibers work of Dr. Yigi Yang, recognized internationally for his research which focuses on the development of alternative fibers using agricultural by– and co-products. Specifically, a Bio-fiber Development Laboratory (BDL) is being established on East Campus with financial support from IANR, from the Office of Research and Economic Development and from ARD. The purpose of the BDL is to produce relatively large amounts of cornhusk fibers in order to supply testable quantities to industry, to evaluate the potential to process the fibers on a commercial scale, and to use them to develop various fiber/textile products in prototype form.

OBJECTIVES — from KAAPA’s perspective

• To support the grant efforts through a letter of endorsement (DONE)

• To monitor the results of the testing and lab, and to provide input regarding stover when requested

• To remain knowledgeable of the project and be able to respond to potential involvement if it appears beneficial to KAAPA

From UNL’s perspective:

The project’s long-term goal is to establish a robust bio-fibers production industry in Nebraska, first at the niche level, and ultimately at a national and international scale. They envision Nebraska as the bio-fibers production capital of the nation.

Their short-term objectives are:

• to supply fibers to companies interested in developing products from cornhusk fibers

• to educate young entrepreneurs and small business developers about the benefits of a

bio-fiber and bio-product industry in Nebraska

• to cultivate science, merchandising and textile product development education in TMFD

in such a way that students in the program participate in experiential learning embedded

in industry-oriented entrepreneurship activities and research based on bio-fiber innovation • to establish a large-scale pilot facility at Nebraska Innovation Campus that will attract industrial investment directed at establishing bio-fiber production facilities in key locations around the State

OTHER

Nathan Meyer approached KAAPA about two years ago to financially assist him in starting a

company to process the fibers; he is no longer involved and we are unaware of his results. He was

attempting to license the technology from the University at that time; no one has it licensed at

this time. Thus, we have some familiarity with the effort; John Willoughby and Marge Lauer

visited East Campus and discussed this project with UNL representatives.

24.

REGIONAL AG ALLIANCE 1. Recently conceived idea

2. Existing ag alliances (KAAPA, Ag Ventures, groups in KS, MO, etc.) would team up to create a regional alliance

• Would combine knowledge & strengths of existing alliances and coops

• Greater clout with ag policy due to large number of members

• Would probably have largest pool of qualified investors in the US

3. Purpose, mission, etc. would be jointly created

4. Plan would be to have this regional entity feed back projects to local alliances; attract more and larger grants that could benefit local alliances; be a ‘net’ benefit to groups such as KAAPA not a net drain.

RENTAL CABINS 1. Carryover idea from Country-Adventures; to provide cabins as nightly lodging for the

general public, generate revenue from rental income

2. Several development options

• Lease land /purchase cabins /share in revenue

• Purchase land and place cabins

• Work in partnership with NE Game & Parks Commission; we provide the cabins, they pay us through a lease/purchase agreement and they manage the reservations

3. One option is to use “moveable” cabins that could be sold & replaced every few years; or individuals could purchase cabin, lease it out for set number of years, and then own it at the conclusion of the contract.

“SAVING” MEMBERS MONEY

1. KAAPA continually looks for opportunities where a ‘cooperative’ approach could provide buying power or influence so as to decrease the price of a product or service for KAAPA members; for example, being able to purchase tires in bulk so as to get a reduced price.

2. KAAPA also monitors certain services such as accounting and estate planning to ascertain

if an opportunity for providing those services to our members at a discounted rate might

be available.

PURSUING NEW MARKET TAX CREDIT AWARDS

1. With KAAPA Country– Adventures being a CDE (Certified Development Entity) which can be awarded NMTC (New Market Tax Credits), there has been consideration of seeking such credits.

2. Credits awarded are issued to qualifying projects (KAAPA’s and others).

3. Process is complex and requires a considerable amount of upfront funding.

4. CDE’s earn 5% of the total credits awarded; this would provide substantial income to

KAAPA for project development as well as assure no additional increase in membership

dues for many years.

25.

Grady Koch

Darby Line

Jason Lavene

Scott McPheeters

Steve Mercer

Fred Meyer

Marlin Murdoch

Mark Oberg

Joe Roberts

Mick Ryan

Greg Smith

Lamoine Smith

Paul Stieb

Steve Stadler

Ray Ward

Craig Weber

Dave Westensen

Leon Wilson

Craig Wietjes

John Willoughby

Roger Wolford

Mike Wilkens

2007

Craig Wietjes, President

Wayne Anderbery, Vice-Pres.

John Willoughby, Secretary

Mike Boudreau, Treasurer

2008

Craig Wietjes, President



Mike Boudreau, Treasurer

2009

Mike Boudreau, President



Craig Wietjes, Treasurer

2010




Rod Gangwish, Treasurer

2011





2012



Rod Gangwish, Secretary/Treasurer

2013



Joe Roberts, Secretary

OFFICERS

KAAPA Cooperative

P.O. Box 1301 Kearney, NE 68847

308-234-2712 [email protected] www.kaapacoop.com

BOARD MEMBERS Covering All Terms: 1996—2013

1995-1996

Randy Cruise, President

Steve Mercer, Vice-Pres.

Lance Hehner, Secretary

Lance Hehner, Treasurer

1998

Phil High, President

Steve Mercer, Vice-Pres.


Lance Hehner, Treasurer

2000

Paul Kenney, President

LaMoine Smith, Vice-Pres.


Steve Mercer, Treasurer

2002


LaMoine Smith, Vice-Pres.

Craig Wietjes, Secretary


2005


Craig Wietjes, Vice-Pres.



2006


Craig Wietjes, Vice-Pres.



Wayne Anderbery

Bob Bendfeldt

Rick Bergman

Mike Boudreau

Terry Buettner

Matt Burkholder

Randy Cruise

Milt Dahlgren

Joe France

Paul Gangwish

Rod Gangwish

Craig Grams

Dan Grams

David Grams

Roger Gruwell

Lance Hehner

Phil High

Kent Hubbert

Blake Johnson

Paul Kenney

Dave Kirschner

Kristen Klein

Bryant Knoerzer

portfolio - kaapa

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