REYHER FARM. Diverse Agricultural Business Located In Southeast Colorado For Sale. 7,000+/- ACRES OFFERED AT $19,500,000

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1 REYHER FARM BENT & PROWERS COUNTY, CO 7,000+/- ACRES ALFALFA PELLET MILL Capable of producing 6 tons of pellets per hour CATTLE FEEDING FACILITY 22,000 Head Capacity ALFALFA PRODUCTION approx. 4 Ton Per Acre OPERATION WILL SUPPORT APPROX. 150 BUSHEL CORN FARMS WITH FT. LYON, AMITY AND HYDE IRRIGATION SOLD AS A CORPORATION OFFERED AT $19,500,000 WORKING ALFALFA & CATTLE FARM FOR SALE Diverse Agricultural Business Located In Southeast Colorado For Sale.

2 THE OPERATION THE LAND: The irrigated farmland is located in Bent and Prowers counties in Southeastern Colorado. Available maps show the actual location of the base and outlying properties. The total deeded acreage including the 296 acres allocated to the Feed Yard is 7,510+/. Included in this acreage is 4,117+/- acres of land subject to irrigation. This farmland is irrigated with 3 different sources of water. The bulk of the land is watered from the Fort Lyon Canal. Other sources of irrigation water are delivered from the Amity Mutual Canal, The Hyde Ditch, and a small amount from shallow irrigation wells and holding ponds. The different water will be discussed later under WATER. Of the land that is not irrigated 2,348+/- is grassland and 383+/- is dry farmland. With the exception of one center pivot, all the land is flood irrigated from ditches and gated pipe. The main soil associated with the irrigated farmland is Rocky Ford clay loam, one of the most productive soils in the Arkansas River Valley. Numa clay loam, another productive soil, is also associated with the irrigated land. These two soils make up over 70% of the soils associated with the irrigated land. CROPS: The Arkansas Valley is known for the wide variety of crop that can be produced. This includes many produce crops including onions, cantaloupe, potatoes, peppers, watermelons, and others. The main crop production on the Rehyer Farm however, is quality alfalfa and corn. Alfalfa is consumed locally and shipped to the surrounding dairies. The crops raised are generally specific to the type of ownership and management. Area yields are also related to management decisions and style. While the current yield on the Rehyer Farm are Corn 150 bushel per acre and alfalfa is 4 ton per acre, yields of 250 bushel corn and 6 ton alfalfa are attainable in the area. THE WATER: The Fort Lyon Canal is the main source of irrigation water. This canal system is the largest diverting irrigation ditch in Southeast Colorado and one of the largest on the Arkansas River. It began in 1860 as a small ditch for use by the Cheyenne and Arapahoe Indians. Its expansion to the large ditch and storage system it is today began in Today the canal extends for approximately 110 miles. The first diversion decree is dated 04/15/1884 for cfs, and the next decree is dated 03/01/1887 for cfs. In addition to these rights, the Fort Lyon Canal Company has the right to store water in the Adobe and Horse Creek Reservoirs for use at their calling. In addition to the above, the Canal has the right to purchase water from the Trans Mountain Water Project. The Canal Company reports that there are 92,000 acres irrigated under the system and 93, shares in the canal. Starting at 1986 through 2016 the Fort Lyon Canal system has diverted 2.63 acre feet per share. In the area of the Reyher Enterprises land, a full water right is considered to be.9 shares per acre. Reyher Enterprises owns 2,694 shares. The Amity Mutual Irrigation Company is the second longest/largest irrigation canal associated with the Arkansas River in Southeast Colorado. The first decree for the Amity Canal is 02/21/1887 for cfs. Their second decree is 04/01/1893 for 500 cfs. The Amity Mutual Irrigation Company also has storage rights in the Great Plains Reservoirs and John Martin Reservoir. The annual diversion from 1986 through 2016 is approximately 90, acre feet per year with an approximate 35,000 acres under irrigation and 36,472 shares of Capital Stock issued. Using these numbers, the amity annual diversion is 2.48 acre feet per share. A full right in the Amity Canal system is one share per acre. Reyher Enterprises owns 420 shares. The Hyde Ditch is a much smaller ditch with only about 1,000 to 1,100 acres being irrigated with 1,000 shares being issued. Their Decree Date is 05/10/1897 for cfs. The average annual diversion from 1986 through 2016 is 2, acre feet. The Hyde like most ditches that divert below the John Martin Reservoir, also has a storage right in the dam. A full irrigation right under the Hyde Ditch is one share per acre this would make the average annual diversion per share equal 2.65 acre feet. Lower Arkansas Water Management Association (LAWMA) is a water augmentation organization that assists the Arkansas River well users return the required Consumptive Use Water to the river. Consumptive Use Ground Water is that water that is pumped and totally consumed by the growing plant or by livestock. In general, however pending on location, one share of Common Stock at a 100% river allocation represents one acre foot of Consumptive Use Water or approximately 4 acre feet of pumped water. This amount can vary annually depending on the Arkansas River allocation percentage allowed by the state DWR. The preferred LAWMA share guarantees the owner one acre foot of Consumptive Use Water for augmentation. Reyher Enterprises owns 276 Shares of Common Stock and 24 Preferred Shares. The primary use for the Preferred Shares is the Feed Yard. The Preferred Shares are those that regardless of the Arkansas River flow or the Mountain snowpack guarantees the owner a definite quantity of water.

3 THE OPERATION THE FEED YARD: The Beef City Feed Yard is situated on 320 acres with paved access from Highway 196. The CAFO permit allows for a 25,000 head capacity. The current operation capacity is 22,000 head. This allows 200 square feet per animal. The total bunk length is approximately 28,356 feet The yard is in excellent condition, well drained, and livestock ready. Long time management and help is in place. There are 167 open pens and 18 pens with massive metal roofed three sided shelter. The pens have poured concrete feed bunks and concrete continuous flow watering system with 10 foot aprons. The pen roads are graveled and well kept. There is an indoor working facility centrally located for processing and doctoring convenience with 12 hospital pens associated with the facility. Water is supplied from 11 different wells, 3 being located within the yard and 8 outside the yard perimeter. IN ADDITION, THE FACILITY INCLUDES: OFFICE 100,000 lb Scales 12 X 70 2 Large Water Storage Tanks 5 stall horse barn with tack room Shop MILL & FEED STORAGE 2 Steam Flake systems 30,000# per hour 2 Boilers 1 Dry roller grinder 2 Dump pits with 2 Legs 2,000 bu/hour Allen Bradley Computer system 2-10,000 bushel grain bins 7 Soak tanks 85,000# 2-100,000# flaked grain storage bins 1-85,000# cracked grain bin 2 65,000# Pellet bins 1 125,000# Molasses tank 1 110,000# Fat tank Ground Hay Barn 240,000# The feed truck load out system is radio controlled to the central computer system. The feed truck load out building has 2 Fat, 1 Molasses, 1 Cracked grain, 1 Hay, 1 Supplement and 2 Flaked grain dispensers. All ingredients are weighed with truck scales. THE PELLET MILL: The Sun Cure alfalfa pellet operation has been the answer for replacing the old expensive alfalfa dehydrating operations. Instead of green chopping the alfalfa and drying through a large natural gas powered drying drum, the alfalfa is allowed to dry naturally in the field. The alfalfa is then baled and delivered to the plant for processing. The site consists of 5.48 acres located adjacent to the town of McClave along Highway 196. THE FUNCTIONING PART OF THE PROCESSING PLANT CONSISTS OF: X 250 open sided metal framed and roofed hay storage shed with concrete floor 1 permanently installed Tub hay grinder in hay storage building with 42 hammer mill drum and hp electric motors 1-60 X 120 pellet mill plant building 2 Sprout pellet mills at the rate of +/- 3 to 3.5 Ton per hour each 3/16 pellets Boiler Air system for pellet movement Overhead pellet load out bins 1 60 X 100 finished product metal storage building 1 24 X 40 storage metal building This well designed and efficient plant not only is used for processing the alfalfa raised on the farm, but is also a major alfalfa buyer in the area. The pellets can either be used in the Feed Yard or, as currently being done, used to fulfill several of the alfalfa pellet contracts with different feed companies and livestock producers in a large surrounding region. In the past years there has been over 17,000 ton of alfalfa pellets shipped per year from this plant.

4 FARM LOCATION The primary location of Reyher Enterprises is based around the vicinity of the rural agricultural community of McClave located in southeastern Colorado. This is the area that is home to the Feed Yard, Alfalfa Pellet Mill, and the majority of the Fort Lyon Canal Irrigated land. The balance of the irrigated land is situated at various locations in Prowers County, CO. Lamar, CO, located 16 miles east of McClave, is the major trade center for the area. AREA TRANSPORTATION AND ACCESS The feed yard and pellet mill, as well as the town of McClave, are accessed via State Highway 196 which within a few miles connects to two major US Highways. These Highways being US Highway 50 connecting to Pueblo, CO and I-25 to the west (100 miles) and east into Kansas to Wichita and beyond; and US Highway 287 connecting to I-70 and on to Denver, CO to the north (200 miles), and Amarillo, TX and points on further south. Another major area highway is US 385 which travels south of Lamar with US 287 but goes north to Nebraska and the Dakotas. All the farmland that is not accessed from Highway 196 is accessed via well maintained county-all weather graveled roads.

5 REYHER FARM

6 PROPERTY SUMMARY Deeded Acreage 7,510+/Irrigated Acreage 4,117+/Grassland Acreage 2,348+/Dryland Acreage 383+/2,694 Shares of The Fort Lyon Canal Company 420 Shares of The Amity Mutual Irrigation CO. 200 Shares of the Hyde Ditch 276 Common shares of Lower Arkansas Water Management Association (LAWMA) 24 Preferred Shares of Lower Arkansas Water Management Association (LAWMA) Efficient Water Delivery Productive Soils 22,000 Head Feed Yard with Mill 167 Open pens 18 Pens with Pole Shed Shelter 11 Wells Good drainage Pellet Mill Beautiful 6,582 sq. ft. Home Great Access Sold as a Corporation FOR A PERSONAL TOUR CONTACT dave@bmfrland.com gene@2cr2.com The information contained in this brochure has been obtained from sources believed to be reliable and is believed to be correct, but the owners and brokers do not guarantee its accuracy. Offering is subject to errors, omissions, prior sale, change or withdrawal without notice. All distances, sizes, capacities, and similar measurements and figures are approximate. All information about properties should be independently verified by interested purchasers. All Rights Reserved

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