The Hancock-Henderson Quill, Inc.
Dear Editor:
Big River Resources Cooperative has been involved in a capital fund drive for several months.
Many individuals interested in improving their financial condition have been encouraged to utilize venture capital by building an ethanol plant.
This plant will have a capacity of 40 million gallons per year and will be located near West Burlington, Iowa.
This plant will bring an investor financial returns by adding value to 15 million bushels of corn per year.
The process converts $2 worth of corn to $5-$6 worth of ethanol, distillers dried grain soluble and CO2.
Why build near West Burlington rather than somewhere else, somewhere that may be closer to your backyard?
There are several reasons. I would like to take a moment to explain a few.
The search process for a location was not an easy one and was not decided in one meeting.
It took over a year for the Board to narrow the possible sites to two locations: one in Illinois and one in Iowa.
Several professional consultants were used to advise the Board of their best options.
After surveying all the options, Big River Resources Cooperative Board concluded that the West Burlington site held the maximum potential net return to the investor, based on the availability and cost of gas and electricity.
The Board also considered road, rail, and water transportation convenience, government incentives, and usable infrastructure.
Once the decision was made, Christianson and Associates, PLLP Certified Public Accountants, and Consultants of Willmar, Minnesota compiled a forecasted analysis on operations specific to the plant.
This analysis helped determine feasibility and financing needs.
The forecasted statements of operation and retained earnings showed an average return over 5 years of 29.3% annually to investors. In addition, the value added to a bushel of corn will average $0.436 annually.
As with any venture capital investments, there are no assurances on returns.
Due to unknown events and circumstances, actual results are generally different from forecasted ones.
However, these estimated returns continue to merit worthy consideration by any investor, regardless of location or vocation.
It may help to view the project in a different way. Consider thinking of the ethanol project like a tool.
This tool will add value to corn, help the Federal budget, strengthen the rural economy, save our natural resources, reduce reliance on foreign oil, improve America's balance of trade, and has forecasted possibilities to provide a very high return to any investor.
As with most tools, we are generally not concerned with the location of its manufacture.
Our primary concern gravitates toward the performance for which it was made, whether it was made 5 miles from home or in another country.
A purchaser would be limited in tool selection if they steadfastly held to a philosophy of "homemade" tools only.
For example, many people buy tractors manufactured in Moline, a car or truck from Detroit, numerous items made in China, etc.
A reasonable person decides to buy a tool for the best price, produced with the most efficiency, constructed where it is most economical.
The benefits are then passed on to the investor through that tool and its utilization.
We have found the economical place to build the tool.
Come join over 400 members of Big River Resources Cooperative in their effort to secure an improvement for themselves and future generations.
You can be a part of this opportunity to invest - a chance to improve your own financial condition and the condition of the agricultural economy.
"Let's Add Value"
Raymond E. Defenbaugh
Co-Chairman, Big River
Resources Cooperative