This document describes SHARE Farms, a proposed investment in sustainable agriculture using high tunnel greenhouses and renewable energy. Investors would own shares of LLCs established for each farm. The farms would use high tunnels to increase yields, solar thermal heating to extend the season, and small wind turbines to generate income. This synergistic approach aims to provide solid returns through increased organic produce sales and government incentives while benefiting the environment.

1. SHARE Farms: A Sound Local Investment

2. 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

3. Sustainable High Tunnel Agriculture + Renewable
Energy (SHARE) Farms

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Boosting Produce Yields
SVF Weekly Determinate Tomato Harvest (2011)
• Yields
typically 200-
4
300% higher
3.5 in high
tunnels
3
• Our organic
Average 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)

12. Extending the Season
Blackberries on November 14,2010
and Tomatoes on November 1, 2011
in Scenic Valley Farms owned high
tunnels

13. Improves Produce Quality
High Tunnel Grown Outdoor Grown
Tomatoes planted at same time in spring

14. Spur Job Creation

15. 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 profits
Distribution
Sale of membership units to Production 200 percent return on capital
Manager contribution + Sale of
Exit Strategy
membership units to
Production Manager

16. Crop Market Price ($/lb) $2.25
Annual 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-Taxation
Year 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%)
0 546,425 546,425
1 137,500 163,625 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 Unit
9 Option 105,815 603,303 210% 68,780 306,292 156%
Agreement
10 108,989 712,292 230% 70,843 377,135 169%
Total 957,592 622,434

17. Contact Us
Erik Gundacker
(563) 650-3654
gun@usinternet.com
scenicvalleyfarms.com
svgreenenergy.com