Chronology
How a value- added investment can grow

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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.

INVESTMENT: 1974 — Producer buys 125 shares in the Southern MN Sugar Co-op, Renville, MN, for $25,000.

VALUE: 1995 — The original investment of 125 shares has increased by an additional 93 shares because of stock splits and dividends. The total value of the 218 shares is worth $436,000.

INVESTMENT: 1980 — Producer buys an initial 10,000 shares in Minnesota Corn Processors, which makes ethanol, corn sweetener, and corn starch near Marshall, MN. The producer’s initial investment at $2.06/bu. of corn x 10,000 shares is $20,600.

1992 — Producer purchases 5,000 additional shares at $3/bu of corn., worth $15,000.

1995 — Producer purchases 3,000 additional shares at $4.50/bu. of corn, worth $13,500. The producer has invested a total of 18,000 bushels or shares in MCP, costing $49,100.

VALUE: 1995 — The producer’s investment has accumulated dividends worth an additional 62,000 bushels or shares, and the to

tal value of the 80,000 bushels/shares is $320,000. Plus, the producer has received additional patronage dividends since joining MCP, with payments varying from 40 cents to 70 cents/bu.

INVESTMENT: 1991 — Producer commits to 10,000 shares at $3.19/bu. of corn (total investment: $31,900) in ValAdCo, a hog production cooperative near Renville.

VALUE: 1995 — Shares are worth $4.80/bu., with a total value of $48,000.

INVESTMENT: 1994 — Producer buys 20,000 shares at $3.50/bu. of corn into Golden Oval, a division of Midwest Investors Inc., based in Renville. His total investment is $70,000.

1995 — Producer buys 5,000 more shares at $4/bu. of corn. This investment of $20,000 plus the initial investment of $70,000 the year before totals $90,000.

VALUE: 1996 — The value of the producer’s 25,000 shares is worth $5.25.bu., with a total value of $131,250.

BOTTOM LINE: The producer has invested a total of $196,000 to add value to his corn and sugarbeets. The value of those investments is now $935,250.

January 1997