Ethanol prices, for instance, generally follow the price of gasoline, not other agricultural commodities. This tends to reduce the negative impact of farm price peaks and valleys. Co-ops have been successful in raising considerable equity capital for plant financing. Processing initiatives can be a safe and effective investment depending upon the structure of the co-op and the discipline exercised by members. A prudent investment of cash and crop by NGC members can provide staying power that will help the coop and its members survive fluctuations in commodity and processed product prices.
Members hold all voting stock and board positions.
Board members are well informed and committed to serving the interests of farmer members. Managers have the skill, experience and authority to do their jobs but answer to, and work strictly for, the board. The board controls all financial matters, including investment options and the distribution of assets. Stock splits can be a pleasant result of successful NGC operation but often require the delivery of additional bushels. Any subsequent increase in crop prices, or decrease in product prices, may expose members and the NGC to serious financial loss.