Question 1

Have you had any conversations with Reggie Knox of FarmLink? They are a CDFI (Community Development Finance Corporation) and have very flexible terms and a low cost of money. Given the amount of equity you have raised already and the urgency of the need (about which I was conc...

Accepted Answer

Thank you Samuel, I will pass this onto to the board member working on financing options!

Question 2

As a gentleman farmer with 5 head of grass fed and finished cattle in UT and as a CA resident, I know the struggles you all face in CA with processing and am thrilled to see your solution. I wonder how you plan to address the potential conflict of interest for pricing and thus...

Accepted Answer

Hi James! The co-op model takes care of that potential pricing conflict (assuming you mean the cost of slaughter) since the members are refunded the difference between what they paid for harvesting an animal and the actual cost at the end of the year. And, no you are not required to take your dividend in Co-Op Credit. Feel free to give me a call directly at 707-332-4605 if you would like to discuss further. Thanks!Adam ParksVP, Investor Relations

Question 3

Are you thinking about adding Santa Cruz County to the BAR-C "area of interest?"

Accepted Answer

Hi Art! It is definitely on the list. While our business plan has us moving around as little as possible, we are looking at areas like San Mateo and Santa Cruz as possible "stations" to go to on a regular basis. It all depends on the number of animals to harvest and the frequency that is needed in a given area. For this to work, it all has to pencil out financially and we have to identify a site that has sufficient corrals and staging area for the trailer. Feel free to reach out to membership...

Question 4

I'm not clear on what the return might be.   I see you estimate a dividend in 3 years.   Assuming at that time, you run at 80% capacity for a full year with one mobile processing unit, what would be the estimated sales and % return or dividen...

Accepted Answer

Hi Judd! For the Wefunder offering dividends are paid out as a percentage of your investment. For the first 5 years dividends are 2% annually paid in retail credit (Co-Op Credits to be used with member ranchers) and are cumulative in the event the board deems not to declare dividends in a given year. After the initial 5 year term, annual dividends are guaranteed at 4% and BAR-C has the option to pay up to 50% of that in Co-Op Credits. Feel free to give me a call if you want to discuss further...

Question 5

Hi there. If the return is 2% dividend for the first 5 years and then 4% thereafter, does this mean that I won't get a complete return on my investment until after 20+ years? Or does my percent ownership also allows me to earn back the difference of slaughter/op cost and what ...

Accepted Answer

Hi Hanson, The dividend is not part of the buy back. You could start a buyback process after year 5, and we are required to buy back at a minimum of 10% per year, although we can doo more as the Board authorizes. Please feel free to call me at 707-332-4605 if you have any other questions. Thanks for your interest!

Bay Area Ranchers’ Cooperative

Responsible Meat Processing — By Ranchers, For Ranchers

Bay Area Ranchers' Cooperative

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