1. Executive Summary
Location:
Iowa Fresh Farms, LLC plans to locate in BUSINESS
North Central Iowa.
Iowa Fresh Farms, LLC will operate a sustainable bio-ag
campus comprised of a 5,000-cow dairy operation with
Type of Company: waste-to-fuel renewable energy facility and water
Iowa Fresh Farms, LLC will be an purification unit in north central Iowa that will supply milk,
investor owned producer of milk, heifers, heifers, beef, synthetic diesel fuel, bio-char, purified
meat, energy, synthetic diesel fuel, water, other value added by-products and carbon credits
purified water, bio-char and other value to area markets.
added by-products; developed by the
management company of Northern Bio-
Ag Systems, LLC, James and Marilyn Challenge
Merfeld, owners.
World population and demand for food and energy is
growing while at the same time scientists and consumers
Founding Date:
are increasingly concerned about sustainability. The
Iowa Fresh Farms, LLC expects to begin
International Dairy Federation, whose members represent
operations in 2013.
82% of the world’s total milk production, considers
climate change and greenhouse gas emissions to be the
Number of Employees:
biggest environmental challenges facing the global dairy
Iowa Fresh Farms, LLC expects to st
industry in the 21 century.
employ 56 full time persons.
Solution
Legal Representation:
Dylan J. Thomas The sustainable and integrated production methods
30 2nd StreetNE designed for Iowa Fresh Farms, LLC meet consumer
Mason City, IA50401 demands through environmentally responsible
641-424-8066 approaches that contribute to the economic and social
well-being of local communities. Waste-to- fuel manure
Accounting/Audit: handling systems are recognized as a carbon neutral
Renner &Birchem, PC approach that reduces methane emissions while
Dennis Renner, CPA achieving broad environmental benefits. These systems
109 2nd Street NE are recognized by AgSTAR, a program jointly sponsored
Mason City, IA50401 by the U.S. EPA, U.S. Dept. of Energy and USDA.
641-423-7155
MISSION
Key Investment Points: To create food and renewable energy today for a more
Leading edge sustainable food and sustainable future tomorrow through creation of a bio-ag
energy production system offers: campus that maintains harmony with the environment,
Economic benefits, enhances life-style satisfaction in rural Iowa, and
improves economic opportunity.
Environmental benefits,
Community benefits. MARKET DRIVERS
Waste-to-fuel technology designed by
team of industry leaders creates value. Sustainable System: Consumers, processors and
Dairy technology proven in the Midwest othersin the values chain are considering the carbon
supports production efficiencies. footprint and other sustainability measures of products
they buy.
Professional management provides
experienced leadership. Energy Demand: Synthetic diesel is a high
octane/low sulphur renewable fuel that meets EPA/DOT
Highly supportive feedback from State
th specs and has a -20 degree gelling temperature.
Senator Merlin Bartz(6 Distict of IA),
Scott Jones, R&D Engineer, Marion
Mixers and Spenser Rahm, financial
advisor, EdwardJones.
2. Dairy Demand:Worldwide demand for dairy will increase greatly in the Asian markets due to
population growth and increased standard of living.
Quality Products: Customers value high quality reliable suppliers of milk, beef, renewable
synthetic fuels, bio-char fertilizer and value added by-products.
COMPELLING BUSINESS OPPORTUNTIY
Modern Sustainability:The bio-ag campus systems are designed to reduce undesirable
environmental impacts while producing human benefits.
Efficiency Innovations: The bio-ag campus concept drives production and energy efficiency
through optimal scale and scope; along with recycling and full utilization of water, heat, manure
and other wastes.
Managed Economic Risks: Multiple streams of revenue, state of the art technology, and
professional management facilitates achievement of production goals and reduces the impacts of
price volatility.
Market Access: Nearby interstate, railroad, gas pipeline, and electrical grid provide access to
multiple milk, dairy heifer, energy, beef, and by-product markets.
Community Benefits: The business is aligned with local community goals to create good jobs,
attract young people, increase local investment, and enhance quality of life in rural areas.
Strategic Partnerships:Relationships have been established with technology providers such as
Marion Mixers, Renewable Energy Resources, Landmark Commercial Builders and product
buyers such as Swiss Valley Farms Company.
INVESTOR ADVANTAGES: The Business Case
Iowa Fresh Farms, LLC will deliver higher returns on investment than the competition through above
industry average efficiency and attention to economic, environmental and community sustainability. The
business will employ professional and experienced managers who will maximize use of technology and
facilities to become a reliable producer of milk, replacement heifers, beef, synthetic diesel fuel, bio-char,
purified water, other value added by-products and carbon credits.
Profitability and sustainability are highly influenced by milk quality and feed efficiency. The new bio-ag
campus will be built for modern cow comfort and allow for efficient milking, veterinary care and feed
handling processes. Iowa Fresh Farms, LLC will prioritize management of milk quality to generate quality
premiums, increase cow productivity/efficiency and reduce cost of production.
The bio-ag campus will include leading edge technology and systems approaches to enhance
environmental sustainability through biogas recovery systems, reduced energy use, and full utilization of
water, heat, compost and other wastes; while utilizing natural biological processes to produce a broad
scope of products. Iowa Fresh Farms, LLC will measure environmental impacts through Life Cycle
Assessment methods and prioritize management to reduce negative effects.
Northern Iowa is an especially appropriate area to consider establishing a large dairy operation. People in
the region generally respond positively to economic development opportunities involving agricultural
production, processing and value-added activities. Iowa Fresh Farms, LLC will manage for favorable farm
and community cooperation as an integral part of a sustainable agricultural system.
3. BUYER ADVANTAGES: The Value Proposition
Iowa Fresh Farms, LLC will deliver higher value than the competition to processors, utilities, farmers and
other customers through above industry average quality, volume and sustainability.
MANAGEMENT TEAM / STATUS
Iowa Fresh Farms, LLC will be an investor owned Limited Liability Company owned by multiple investors
with representation on a Board of Directors. Northern Bio-Ag Systems, LLC, owned and operated by
James and Marilyn Merfeld, is a management company that is providing development and management
leadership and services to put together the management team, conduct the investment offering, and
oversee implementation of the Iowa Fresh Farms, LLC business plan.
Iowa Fresh Farms, LLC will be operated by professional and experienced management. The General
Manager will be assisted by five mid-level managers in the areas of: Finance, Marketing, Human
Resources, Dairy Production and Energy Production. The Dairy Production Manager will be assisted by
an additional four mid-level managers in the areas of: Veterinary Care, Dairy Herdsmanship, Nutrition,
and Maintenance. These ten professionals will serve as the management team of Iowa Fresh Farms,
LLC. They will be responsible for carrying out the strategy and operational goals of James and Marilyn
Merfeld and the investor owners as directed by the Board of Directors.
FINANCE
The bio-ag campus will require $42 M to locate, build and begin dairy operations, including $21 M (50%)
in owner equity. Total dairy sales revenue is projected at $17 M in Year 1, growing to $ 22 M in Year 3
when the business is fully operational. The waste-to-fuel portion of the campus will require $22M to
construct a closed-loop reactor system to process biomass into synthetic diesel fuel and bio char fertilizer.
This process will generate an additional $15M annually for the bio-ag campus.
4. PROJECT: 5,000-COW DAIRY w/ on-site WASTE-TO-FUEL
Goals: to form a business with Asian investors to produce milk, meat, fuel, soil amendment and various
by-products in Iowa for shipment by containers via rail and ship to Asia. Provide jobs in both Iowa and in
Asia. Provide food and energy to the rapidly growing Asian population.
Products (Dairy):
Whole Milk – dried here and shipped for further processing into fluid whole milk, cheese, yogurt,
ice cream – products of end-user choice.
Beef – Dairy Steers and culled Milk Cows slaughtered & quartered here then shipped in
refrigerated containers for further processing of meat & hides in Asia.
Manure- A constant, consistent supply of feedstock for “Waste-to-Fuel” production.
Dairy heifers-Use if sexed-semen enables birth to 80% heifer calves for replacement milkers in US
production and heifers sent to Asia Dairy project.
Products (Waste-to-Fuel):
Fuel- synthetic diesel fuel through microwave depolymerization. 1. Used for generation of
electricity for dairy. 2. Sell to local jobber. 3. Ship to Asia for use as is or for further refinement as
demand requires. Fuel is high octane, low sulphur, low gelling point and less than $1/gallon to produce.
12,000 gal/day
Bio-char- High quality soil amendment for commercial sale in the U.S. or overseas. 1. Quality
control retains N, P & K from feedstock. 2. Holds nutrients for plant use and does not leech from the soil.
3. Improves soil quality and production. Holds water, reduces chemical runoff, increases crop yields,
reduces fertilizer needs. Carbon is sequestered in the soil. Income potential of $500/ton.45 tons/day.
Distilled Water- for use in dairy reducing the need for excess groundwater.
End Results:
Job Creation-both direct and indirect jobs in Iowa(production) andin China(further processing).
Duplication- Multiple dairy/fuel projects in Iowa and in Asia.
Food Production- Milk & meat for an ever more rapidly expanding world population.
Reduce Waste -Organic waste products (manure, stover, grass, sawdust, hulls, waste paper, etc.)
Renewable Fuels & Bio-char- Energy from waste materials.
Transportation: Trucking, Rail Containers, Ocean liners.
5. NORTHERN BIO-AG SYSTEMS
jim.merf@hotmail.com
Inputs: Corn, corn silage, hay, distillers grains, hulls, stover, various dry matter.
5,000 COW WASTE-TO-
MANURE
DAIRY Consistent Feedstock FUEL
150Tons/day
Distilled Water
MILK MEAT
48,000 gal/day
JOBS 3 JOBS
30 permanent 10 SYNTHETIC DIESEL
Renwable
15 part-time 3
High Octane/Low Sulphur
Economically produced
Low temp gel properties
Use current infrastructure
Further refinement-jet fuel
Meets or exceeds EPA/DOT specs
bb 12,000 gal/day
BENEFITS:
New market for Iowa farm products
Reduce dependence on foreign oil
Food production for a growing world population
Reduce greenhouse gas emissions
Create permanent jobs
Economic multiplier effect
Increase soil fertility by retention of nutrients
BIOCHAR
Enriches Soil
Retains N-P-K from feedstock
All N-P-K available to plants
Holds N-P-K for plant absorbtion
Filters rain water
Figures are for a 2-module system Reduces leeching
Daily production per module: 75T of Lessens fertilizer costs
feedstock=6,000gal/fuel & 22.5 T/biochar
45Tons/day