Jeff Kistner, Business Development for CoBank, has dealt with the financial end of several value-added agricultural ventures. He offers these keys for attracting financial support and long-term success for a value-added business.

Here’s some of what you’ll need:

  • Leadership and local investors; JV partners; project managers.
  • Excellent management.
  • A sound business and marketing plan.
  • An excellent risk-man-agement plan and execu-table contracts.
  • A substantial percentage of capital to cushion unplanned adversity.
  • Communications with investors that are frequent, open and honest.
  • Remember to focus on the value of your stock, not just the return to the producers committed.
  • Remember you’re no longer a commodity or livestock producer, but a value-added processor.