ProjectN: Don’t miss your tax break
A presentation made to Genesis Grain and Fertilizer meetings includes a progress report on ProjectN, the Farmers Fertilizer partnership. A video recording of the ProjectN part of the presentation is now available for Members to see. I think you’ll be pleasantly surprised to learn just how much progress has been made. Check it out on the ProjectN web site:
Development spending means tax write off for farmer partners
FNA FLP T5013 tax forms should come out some time in late March or April. These forms are produced by KPMG and basically allocate the spending we have incurred in ProjectN, providing those investors with a tax write-off. Because we are not making money in FNA FLP, the farmer-partners can use those expenses as write-offs in their operation. T5013 forms have nothing to do with the status of the project. They are just a way for us to pass the the tax benefit to the farmer partners.
As we spend money, they get to write it off against their taxes. That’s one of the benefits of the LP model, a modern strategy for farmer ownership in the value chain.
In other ProjectN news…
We had a very promising meeting last week with a technology provider and a EPC (Engineering, Procurement, and Construction) firm. They are interested in providing a Lump Sum Turn Key (LSTK) contract plus equity. A LSTK is very important for financial lenders because it reduces the risk of project price escalations.
We just received a another proposal from a technology provider to provide a FEED (Front End Engineering and Design) at a considerably reduced cost. This provider wants to do the FEED to determine; 1) a more accurate cost of the project; and 2) what their equity position would be in the project.
We are hoping to make a decision on which direction we will go between the two technology partners in the near future . Which ever way we choose, this will be a key milestone in moving ProjectN forward.
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