Q: What is Genesis Grain & Fertilizer LP?
A: Genesis Grain & Fertilizer (Genesis) is an entity that has been established by FNA & AgraCity to allow farmers to capture margins and derive other benefits from ownership in the supply chain.
Q: Why was Genesis created?

A: Genesis was created to raise capital from farmers to provide them with an ownership position in a fertilizer sales and distribution business that will support ProjectN.

Genesis was also created in response to recent combinations of mergers and acquisitions among the traditional input companies that has left inefficiencies and confusion in some cases. Other considerations included:
• The need for a fertilizer supply and distribution system for ProjectN
• Substantial increases in the MPower product line from AgraCity
• The changes in grain transportation and handling, from the privatization of the CWB and issues related to shipment of grain by rail.

Q: What is the vision for Genesis?

To grow an integrated farm supply business with a farmer base, a management team, strategic partners and product offerings that are unmatched in the industry, leading Genesis and its farmer owners to succeed in the global agricultural market.

Q: How does Genesis fit in with ProjectN, AgraCity and FNA?

A: The plan for how the three entities fit together is to follow a very practical pragmatic approach with three components: i) (pre-Genesis) expanding the fertilizer procurement and sale by AgraCity to members; ii) (Genesis) fertilizer procurement and distribution through farmer-owned fertilizer storage and blending facilities (supercentres); iii) (post-Genesis, completion of ProjectN) procurement from farmer owned manufacturing (ProjectN) and distribution through farmer owned distribution system.

Q: Who can invest in Genesis?

A: Conditions on investment in Genesis LP are: 1) must be an FNA Member; 2) must be a farmer; and 3) must have accredited investor status.

Q: What is this initiative all about?

A: Since 2010, FNA has been working on a strategy to build ProjectN which includes a nitrogen fertilizer manufacturing facility in western Canada, and a fertilizer supply and distribution business. The main concept is for farmers to capture profitable fertilizer supply chain margin which they currently pay. The manufacturing facility is being built by the FNA Fertilizer Limited Partnership. The supply and distribution business is Genesis Grain and Fertilizer LP. Farmers who invest in the manufacturing facility, also sign on to a supply agreement agreeing to make purchases of fertilizer from the business once it is operational. This creates a closed-loop system with a large portion of the facility’s production sold in advance. This dramatically increases the likelihood of the business’ long-term success by connecting farmer demand directly to a farmer’s investment. The business plan for ProjectN has always included a separate business to provide for the sales & distribution network (“S&D Co.”) for fertilizer manufactured at the ProjectN plant. This current initiative is primarily to build out that network.

Q: What geographies do you intend to operate in?

A: The current Genesis offering is being made to FNA Members in western Canada. Depending on farmer participation, the initial plan allows for three SuperCenters in Alberta, three SuperCenters in Saskatchewan, and one SuperCenter in Manitoba. Alternate plans are being developed for Ontario and Quebec.

Q: How quickly can this be built?

A: The Belle Plaine SuperCenter can be operational within one year of beginning construction. In the meantime the Genesis team continues to select the next sites.

Q: Will the farmers who invested in the ProjectN fertilizer plant automatically be part of Genesis?

A: No. Investors in ProjectN’s manufacturing facility (through the FNA Fertilizer Limited Partnership – FNA FLP – or the U.S. arm of ProjectN) will not automatically become investors in this supply and distribution business, and will not be forced to invest in it. With or without grain handling, FNA’s plan has always recognized a need to develop a standalone supply and distribution business to market and deliver the products of the nitrogen fertilizer plant.

Q: Can current Seed Capital Unit holders in ProjectN also invest in this project?

A: Yes! FNA FLP investors have verified themselves as “accredited investors” and will be able to support that investment by participating independently in the investment in the integrated fertilizer supply & distribution business.

Q: Do I have to be an FNA Member to participate?

A: Yes.

Q: How much capital are you trying to raise?

A: To complete Genesis will require equity of $110 – $115 million.

Q: How many farmers need to get involved? How much of the new company do you want farmers to own?
A: We will need somewhere between 2,300 and 10,000 farmers to participate, depending on the average size of individual commitments. This is being offered to FNA Member farmers only. We want farmers to own the majority of the business.
Q: Where did you come up with the dollar amount that is required to execute this strategy?

A: FNA and AgraCity management, with support from MNP and a number of industry leaders have done all the modeling for Genesis.

What are my guarantees

A: All project development work to date has been funded by the promoters. Investor money is held in trust until we know the project is fully financed.

Q: I’d like to store my own fertilizer. Do you have a bin program
A: We will try to move as much fertilizer directly from plant to farm as possible. That may include developing a bin and liquid tank program. Those details will determined at a later date.
Q: What is the target market of Genesis and how does this differ from the manufacturing facility?

A: Genesis’s primary target is its farmer investors. It is Genesis’s mission to get the supply to the farmer, blended in the right proportions, in the most efficient manner possible. Genesis will likely have the ability, to sell fertilizer at market rates to non-investor producers after meeting its standing supply agreements. Priority will always be given to servicing investors. There will be an on-going marketing effort to continually increase the number of member supply agreements to strengthen returns for the manufacturing facility and the supply and distribution business investors.