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Share Farms

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SHARE farms are designed to generate a solid return on investment while boosting yields, extending the growing season, increasing the supply of locally grown fruits and vegetables, helping support ...

SHARE farms are designed to generate a solid return on investment while boosting yields, extending the growing season, increasing the supply of locally grown fruits and vegetables, helping support family farms, and creating quality jobs in rural communities.

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    Share Farms Share Farms Presentation Transcript

    • SHARE Farms: A Sound Local Investment
    • Sustainable Agriculture. Clean Energy. • Investor owned high tunnel greenhouse farms • Environmentally and financially sustainable • Increases yields and extends the growing season • Responds to growing demand for locally grown, organic produce • Synergizes the technologies to earn a solid return on investment
    • Sustainable High Tunnel Agriculture + Renewable Energy (SHARE) Farms
    • High Tunnel Agriculture• Hybrid of open field and greenhouse production• Non-permanent structures• Less expensive than greenhouses• Constructed with horizontally supported metal hoops, covered with heat retaining, light dispersing, anti-drip plastic• Plastic efficiently rolled up and down to manage air flow• Crops planted in ground• Drip irrigation optimizes water and natural fertilizer inputs.• Versatile in size and shape• Incentives available at Federal and State levels
    • Environmental Management System (EMS)• User manages high tunnel environment from any internet accessible device• Software automates high tunnel climate• Sensors connected to a Programmable Logic Controller (PLC)• PLC wirelessly connected to a PC or hand held device • SVF awarded approx. $100,000 USDA Small Business Innovation Research Grant to develop system • Testing occurring in high tunnels in both Minnesota and Wisconsin
    • Solar Thermal Heating • Federal Investment Tax Credit or Renewable Energy Grant (proposed) • USDA Renewable Energy for America Program (proposed)• EMS controlled circulation fan captures heated air from collectors during day• Solar thermal mass releases heated air at night when required• Extends growing season to allow for additional crops and harvests• Eliminates propane fuel and greenhouse gas emissions
    • Small Wind Energy Overview Incentives• Turbines of 100 kW or less • Federal Investment Tax in size Credit or Grant (30%)• Generates electricity for • USDA Rural Energy for SHARE farms America Program (25%)• Creates income from excess • Accelerated Depreciation electricity (30% for 30% tax bracket)• Solid, long-term investment • Wisconsin Small• Investors receive Renewable Energy System federal, state, and utility Grant (25%) grants • Electric Utility Grants• Offsets investors’ tax (varies) liabilities • Sale of excess electricity• Eliminates operational C02 (≤ 40 kW) emissions
    • Open Web-Based Exchange• Designed for wholesale buyers, regional producers, and shipping services• Provides up-to-date information on type, grade, quantity, availability and price (optional) of produce• Provides links to freight routes, schedules and common carriers• Open to registered users who complete a profile• Operates initially at a regional level before potentially expanding
    • SHARE Economic Benefits• Boost fruit and vegetable yields up to four fold compared to field grown produce• Generate jobs in rural economies • One acre share farm creates 15-20 jobs• Create a year round growing environment• Meet consumer demand on either end of the production curve when competition is lower and prices are higher• Generate income from wind energy• Produce higher percentage of grade A fruit and vegetables• Meet the increasing demand for locally grown produce• Grow healthier, safer produce with less risk of contamination• Cost effectively expand the scale of organic farming• Eliminate propane fuel and electricity expenses• Shorten shipping distances = lower freight costs• Create new regional produce
    • SHARE Environmental Benefits• Conserve water by employing drip irrigation• Diminish operational greenhouse gas emissions• Reduce soil erosion through organic mulching practices• Minimize or eliminate synthetic pesticides and fertilizers• Promote natural organic practices• Protect crops from climate and weather extremes• Reduce input levels for nutrient, disease, pest, and insect control• Respond to water shortages in other regions of the country
    • Boosting Produce Yields SVF Weekly Determinate Tomato Harvest (2011) • Yields typically 200- 4 300% higher 3.5 in high tunnels 3 • Our organicAverage marketable lbs per plant SVF High Tunnels 2.5 tomato yields in 2011 = 20 2 Total = 19.5 lbs per lbs per plant 1.5 plant • 20 lbs per plant X 540 1 plants per 0.5 tunnel X $2.00 per lb 0 7/15/2011 8/15/2011 9/15/2011 10/15/2011 (conservative) = $21,600 gross SVF high tunnels outperformed yields at revenues University of Minnesota Southwest Research and Outreach Center (SWROC)
    • Extending the Season Blackberries on November 14,2010 and Tomatoes on November 1, 2011 in Scenic Valley Farms owned high tunnels
    • Improves Produce Quality High Tunnel Grown Outdoor GrownTomatoes planted at same time in spring
    • Spur Job Creation
    • The Basic Structure of a SHARE Farm Scenic Valley Farms Accredited Investors Establishes each SHARE farm as an LLC Provides Start-up Capital (construction, supplies, payroll) Provides turnkey installation and maintenance services Not required to fund development of EMS (USDA Services Maintains overall management responsibility SBIR funded) Provided Hires and supervises Production Manager Handles Marketing and Distribution Design, Develop, Test EMS (USDA SBIR funded)Ownership 25 percent of LLC 75 percent of LLC Sale of organic produce and EMS Sale of organic produce and Revenue EMS Profit 25 percent of net profits 75 percent of net profitsDistribution Sale of membership units to Production 200 percent return on capital Manager contribution + Sale ofExit Strategy membership units to Production Manager
    • Crop Market Price ($/lb) $2.25Annual Market Price Inflation 3% Estimated Return on Investment (8 conventional and 2 solar thermal high tunnels)Total Annual Farm Yields (lbs) 110,000 Pre-Taxation Post-TaxationYear Minnesota Bonus Investor Financial Accumulated Investor Financial Accumulated Angel Tax Depreciation Share of Payback Return on Share of Payback Return on Credit (tax credit) Farm Investment Farm Investment (25%) Income Income (75%) (75%)0 546,425 546,4251 137,500 163,625 83,531 161,769 71% 54,295 191,005 65%2 86,037 75,732 86% 55,924 135,081 75%3 88,618 12,887 102% 57,602 77,479 86%4 91,277 104,164 119% 59,330 18,149 97%5 94,015 198,179 136% 61,110 42,961 108%6 96,836 295,014 154% 62,943 105,904 119%7 99,741 394,755 172% 64,831 170,736 131%8 Activation 102,733 497,488 190% 66,776 237,512 143% of Unit9 Option 105,815 603,303 210% 68,780 306,292 156% Agreement10 108,989 712,292 230% 70,843 377,135 169%Total 957,592 622,434
    • Contact Us Erik Gundacker (563) 650-3654 gun@usinternet.comscenicvalleyfarms.com svgreenenergy.com