FAQS AND ANSWERS
The National Hemp Growers Cooperative was created for one reason: to help our members build their wealth.
There is a reason the old saying rings true – there is strength in numbers. The National Hemp Growers Cooperative (NHGC) connects growers from across the United States to do together what they otherwise would have to do individually.
For example:
• Best practices in farming
• Seed Purchase
• Retirement Benefits
• Crop Insurance
• Selling bio-mass
• Drying Houses
• Purchasing equipment
• Legal representation
• Marketing crops
• Lab Testing
• Health and Property/Casualty Insurance
• Farm and Project Financing
The Co-Op members drive the policy and the focus of our activity. We are NOT beholden to any vendor or corporation. Our members decide how we do business, with whom we do business, and what our business focus will be.
Here are some Frequently Asked Questions that may help bring some insight to the development of the NHGC:
1. Is there currently a Co-Op in operation? No. There is a legal entity, the National Hemp Growers Cooperative, LLC, which is a management company headquartered in Jackson, Mississippi. The principals of the NHGC are getting all the “I’s dotted and T’s crossed” before Co-Op offering documents are distributed to potential members.
2. How will the Co-Op be governed? There will be two types of stock: common stock and preferred stock. Every grower, after being vetted, will be offered a share of common stock. This share guarantees her/him a voting member of the national organization. There will also be non-voting shares of preferred stock for those who see the value of the Co-Op and want to participate in our success. The enclosed chart gives a picture of how each common stock holder will have a voice in the national organization.
3. What will the cost of the shares be? That has not been determined because we are still gathering insight from potential Co-Op members on the complete scope of services that will be offered. We expect an initial purchase of stock and an annual fee.
4. How will the grower make money? There will be several ways.
First, when the Co-Op negotiates a national contract for some value-added process for our growers’ hemp, the grower will be paid, and the Co-Op will get a percentage of the transaction. As an example, say the Co-Op negotiates 10,000 pounds of industrial hemp fiber to be turned into polymers for an automotive manufacturer. The price to the automotive group would be $X, the grower will get $Y and the Co-Op will get $Z. At the end of the fiscal year the stockholders will get a percentage of the $Z – assuming there is a profit.
Secondly, the grower will save money – not necessarily making money – by purchasing agreements the Co-Op has negotiated with vendors for equipment and seed and any other number of services and pass the savings along to the member. Just like Sam’s and COSTCO.
Third, there will be opportunities for legal services, crop insurance, an in-house finance company, retirement benefits, etc. that are only offered to members.
The Co-Op will receive revenue on each activity the Co-Op undertakes.
5. Who will manage the Co-op? The Co-op’s day to day management will be done through a management agreement with the NHGC, LLC. The management company will have a 5-year automatic renewable contract with the Co-op but can be removed for cause.
6. Can state organizations undertake different scopes of work or benefits? Yes! The Co-op is specifically set up so each state’s members can add to the service offerings of the national Co-op. As an example, a group of growers may want to invest in a regional drying house and the national Co-op could assist the state members in site selection, economic development grants, etc. The state Co-op would own the drying facility (as well as the shared utility bills, insurance costs, etc.) because the members there wanted to pool their money for investment as compared to a sister state that does not care to do it.
7. How do the retirement programs work inside the Co-op? The Co-op will utilize a RIA Hybrid model of investing that allows your annual Co-op dividend to roll over into an investment account. Additionally, a grower could move her/his current investment portfolio into the Co-op Investment Services and use their retirement benefits to finance their growing or extracting operations.
8. How did the Co-op get founded? Please check the About Us section of the website and learn more about our three founders: Roger Ford, Coach Max Howell and Nick Walters. They bring decades of know-how and expertise as hemp investors, economic developers, project financiers and government insiders.
9. Will the NHGC add other services? We can. It is up to the voting members on how the Co-op works.
10. How is the Co-op different than a trade association? Trade associations are valuable to the success of the hemp industry and there is no need for another one. We are not lobbyists or public policy makers. NHGC’s focus is our member/growers and investors and how to increase their wealth.
11. Can you help new growers? Yes! We love helping new growers and have a list of services to assist with counsel and advice so you can learn from those who have blazed these trails before.
