United States, Mi... Piggot... "Dear, Investors: I hope to explain and go more into depth with answering any questions or doubts you may have or had. So Please enjoy and I hope to hear from you soon. I will be happy to answer any other questions or hear any comments you may have. What is the first words you think of when you hear the word farming? I bet your saying to your self ""broke"" and ""risk."" Well, this is not the case anymore. Those two words were very common before but it was due to lack of the farms marketing assets. Most farmers decide to do one end of the agriculture industry and they stick with that one end of it. Also most of the farms that don't make it are on average of 100 acres. Sure many have been supporting their families for centuries but this is no way to do things anymore in a money driven economy. Piggott Farms is an existing farm with 750 acres. The area that we are in links us to any and every market out there. We are in a key area being thirty minutes from Ontario and the seaports in Toledo. With land prices what they are in this area right now we could easily sell a few hundred and do this on our own but that would be a few hundred acres that would have produced more income. We currently are servicing the equine industry in California, Arizona, Florida and Michigan with Hay. We also are doing a few acres of cash crops. Our family has farmed in Ontario for many generations all the way back to the first ones that came off the boat. You can be assured that the risk factor in working if us is very minimal due to our experience and knowledge of the farming industry. We have done every aspect from dairy, beef, and cash crops to eggs, equine, and hog. The reasoning we our looking for a silent partner to team up with is to produce more and to be more labor efficient. This is a very wise investment opportunity for you. By buying your way into Piggott Farms you can expect a 100% guaranteed return within 3-4 years and after that a 10-15% cut of all year end profits depending on how long it takes for your return to come back. THE LAYOUT OF THE PLAN Right now the hay market is the strongest market in all of agriculture. In the South and south west parts of the country the demand for alfalfa hay from the North is very high. In the North you can expect to pay $2.50-$3.50 for a small 45lbs. square bale. In the other areas mentioned you can expect to pay anywhere from $6.80-$13.50 depending on the region. The cost per bale for processing is around $0.25 a bale for diesel and twine. If we can find an investor to help us get the equipment needed and buildings come the spring of 2002 we can take over a 2500 acre operation here in the are free of charge. That has to be the clincher on making this a low risk investment, for the reasoning of most areas you have to pay for rental land. But around this area most people would rather see someone farm it just to keep the grass and brush out of their land. We are able to have the opportunity to take over this land do to a farmer retiring. Paul Elkow has farmed in the area for 30 years and has assured us that this land will not be subdivide for at least 12 years due to property leans that have been put on this land. With 2500 acres to add to the 750 we currently own our marketing assets would be more valuable. This would allow us to grow 1000 acres of corn, 1000 soybeans, and over 1000 hay. Now when you get 120 bales an acre three times a year. your looking at 360'000 bales a year. When you multiply that number by $8.50 a bale for an average price after expenses your looking at a profit in excess of $3 million. The extra acreage can be used for large round bales which is also a big market. Large round bales are going anywhere from $60-$80 a bale depending on region again. On average you get four round bales an acre if you multiply that by 250 acres and the multiply that by 3 cuttings you'll have 3'000 bales a year at an average of $70.00 a bale giving you a profit of $200'000 after expenses. The hay markets would be our main concern for profit. But also adding to this operation would be an equine training facility that would house 50 horses that board and would produce $300'000 guaranteed every year for year end profit. Also we have the cash crops, Corn sells for $1.89 a bushel and with a 1000 acres when you get 128 bushels an acre your looking at a profit of $200'000.00 a year from corn. Soybeans sells for $4.54 a bushel with 172 bushel an acre multiplied by 1000 acres comes to $700'000 year end profit after expenses. SO far with what has been mentioned the total income for them farm would be $4'200'000.00. Now you take 10-15% out of that and you are looking at anywhere from $420'000.00-$630'000.00 a year in profit after your investment has been repaid. To ad more too the agri business. There is big demand for dairy goat milk these days with the health food industry. We would be milking a 200 milking goat herd that produces an average of 2.5 gallons a day. Now dairy goat milk sells for $1.89 a gallon. So take 200 goats multiply it by 2.5 gallons and 365 days a year, then take that number and multiply it by $1.89, then divide that by 2 because it is going to be half that number for your final profit after expenses. So an additional $172'462.50 to add to our year end income. Also with a new ethanol plant to be completed by October of 2002 corn prices will be driven up. So to make extra income besides our own crops we would plan on using the American dollar and buying corn and soybeans from Canada were prices are down only to bring it to Michigan and sell for a profit. Numbers are not final at the moment but have been projected to be anywhere from $230'000-$460'000. This sounds like a lot of work. You are very correct for thinking that. But the prices quoted to you have been rounded down since the $40'000-$80'000 that was part of the price is about what the cost to produce each income would be. Also note that taxes have not been taken out. Between my father, my brother in-law and I we would handle most of the crop work. It is not that hard of work these d...
Chief Executive Officer