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Host Farmer™ Program

The Company offers partnerships to farmers through our proprietary Host Farmer™ program in selected states pursuant to which the Company owns and operates its own ethanol facilities on a farmer's land. Under the Host Farmer™ agreement, the farmer provides a site, grows and harvests the crops and delivers them to the on-site facility. The ethanol produced is owned by the Company.

The Host Farmer™ arrangement provides significant benefits to the farmer without their need to invest in plant equipment, technology, or the responsibility to operate and maintain the facility.

Under the Host Farmer™ Agreement, the farmer has the following responsibilities:

  • Provide cleared and level site for plant equipment and operations
  • Maintain a fire-break around the perimeter of the plant
  • Produce specified crops in accordance with processing schedule
  • Harvest and deliver crops to on-site plant for processing

In exchange, the farmer receives the following:

  • Payment for crops delivered
  • Tolling fee based on gallons of ethanol produced
  • Access to low cost for use on the farm

Host Farmer™ Program Locations

When a Host Farmer™ agreement is executed, the first step is to start the growing process. The Company helps the farmer plan the crop conversion and seed for the new crop. The farmer then clears a site for the plant. Just prior to the first harvest, the site will be set up by securing the perimeter with a fence and filling the area with a gravel bed. The Company will set foundations and secure water service to the production site. The plant equipment is then delivered, set-up and tested. The plant will be completely tested and ready for production soon after delivery to the site.

 

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