Al-Corn Cooperative Benefits

Al-Corn Clean Fuel’s cooperative model raised the capital necessary to build a firm foundation for success and Al-Corn’s strong cash position has benefited members throughout its history. Among the cooperative benefits are:

• Beating Chicago Board of Trade corn prices — Al-Corn has returned 85 cents per bushel in earnings above the average local market value of corn. In fact, Al-Corn members have enjoyed better than Chicago Board of Trade average prices in 14 of the last 15 years. The only year Al-Corn came in lower than the Chicago Board of Trade, it was by less than a dime but was Al-Corn's highest net corn value ever posted.
• Opportunities to add value — A stronger cash position allows Al-Corn to invest in opportunities that increase the value of member investments and corn deliveries. For example, CO2 and corn oil captured are sold for higher profits. Reduced water and energy consumption saves costs and protects the environment. Investment in a delivery system for Al-Corn’s products allows for more effective marketing and sales of its products.
• Reduced concentration of risk — Volatility risk is spread among all members and allows individual members to manage their own risk. In addition, the guaranteed market created from members’ “corn commitments” and the capital infusion provided for in Al-Corn’s model keep the business financially strong and able to weather market fluctuations.
• Significant tax advantages — Al-Corn’s structure helps it deliver the full value of tax credits and self-employment tax savings to members.
• Benefits to local families and communities — Al-Corn is uniquely able to leverage local resources and markets to produce significant added value that not only is returned to members, but benefits their families and communities. This local connection and reinvestment strengthens the entire region.