ProCot Cooperative is a non-profit agricultural cooperative organized pursuant to the Cooperative Marketing Law of Tennessee. It operates in most cotton producing states.

ProCot is certified by the Farm Service Agency of the USDA as a Cooperative Marketing Association.

ProCot files with the IRS on Form 1120-C, the tax return applicable to farming cooperatives.

ProCot has a Determination Letter dated Sept. 10, 2012 from the IRS recognizing ProCot as an exempt organization covered by Internal Revenue Code Section 521, the section applicable to farming cooperatives.

ProCot is solely owned by its producer members. It has an 11-member Board of Directors elected by the membership. All Directors and Officers of ProCot are producer members.

Each year at its annual meeting, the Board of Directors determines whether to contract with Allenberg Cotton Co. for another one-year term.

Allenberg has no membership in ProCot.

Because ProCot’s cotton production is substantial, the terms of the contract between ProCot and Allenberg are quite beneficial to ProCot. Under the terms of that contract Allenberg provides the administrative services that a cooperative needs to operate. Allenberg alone incurs the cost of those services and the expenses of necessary internal and external operations. Without that advantageous arrangement, ProCot would be required to retain income, and instead of annually paying its income to members, it would have to use its funds to pay for staff, for rent, and for all the many other overhead costs and expenses. Under this arrangement ProCot does not need to retain any of the members’ capital from year to year but it can and does distribute all its income each year to its members.

Allenberg Cotton Co. has an 18-year history of administering cooperatives.

In addition to the costs and expenses that ProCot saves under this arrangement, ProCot benefits from the marketing expertise of the world’s largest cotton merchant.