ESOP/COOP partnerships, income equality and capital expansion for worker owners
- Coop/ESOP owns a farmer worker labor service.
Individual farmers form a farm labor LLC and sell the LLC to the COOP/ESOP
Farmers receive capital from the sale
Farmers pay the co-op/ESOP for the farm labor
Farm labor participates in the ESOP and looks to income equality and home ownership opportunity’s.
Co Op food processing labor also participates in the farmers coops ESOP along side farm labor; both groups recover the surplus value of labor through the ESOP and greater employee participation and innovation.
Coop acquisition strategy through the leveraged ESOP; expanding farm and food processing labor income equality
- Lets use Land O lakes farmers co op as an example, it has 3000 employees in its food processing plants and the coop has a value of $ 6,758,210,000
- So a leveraged ESOP purchases 49% for $3,379,105,000 and cash flows over time pay down this debt and this becomes employee owned equity.
- Land O Lakes a co op/ESOP partnership and flush with $ 3 Billion now goes and acquires another coop and that coop now becomes 49% employee owned.
- Most CO OP are non profits so the ESOP would have to own a corporation in a GP with the non-profit
- each individual farmer places his farm workers in to a farm worker leasing company(LLC) and sells the LLC to the CO-OP.
The Land O lakes and Ocean Spray both are farm labor intensive and its these farm workers most in need of income equality.The Proposed ESOP would leverage loaned equity through the ESOP to purchase 49% of the other CO-OP.Both co-ops are labor intensive in the processing of the products and these workers in the plants would own 49% after the leveraged ESOP loans were paid off
Cooperative Development Institute
seeking Mentor Protege
Veteran small business set aside
Steven Torry Rappolee
Terrestrial & Cislunar Exploration technologies
A Post 9/11 Veteran owned concern
810 334 4374
Fax 810 449 5484
UM Flint Student Business Incubator, #207
423 North Saginaw Street,Flint, Michigan, 48502
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