BEATTIE FARMERS UNION COOPERATIVE ASSOCIATION Beattie ...

BEATTIE FARMERS UNION COOPERATIVE ASSOCIATION Beattie, Kansas NOTICE OF SPECIAL MEETING OF STOCKHOLDERS Beattie Farmers Union Cooperative Association, Beattie, Kansas (“Beattie”) and Farmers Cooperative, Dorchester, Nebraska (“FC”) have entered into a Merger Agreement through which the business operation of the two cooperatives will be combined as of September 1, 2016. FC will assume all assets and liabilities of Beattie in consideration for the issuance of its stock, certificate of participation and member’s equity credits to the respective equity holders of Beattie. In the event the agreement is approved by the Beattie stock holders, there will be a 20% loss adjustment write down of equity. The eligible equity credits redeemed to members of Beattie born prior to or in the year 1950 will then be paid out in five (5) equal payments with Beattie paying the first payment before August 31, 2016. The remaining four (4) installments will be paid on an annual basis during the month of January of each year commencing after the effective date. The equity of those members born in 1951 or later will merge into the FC equity revolving schedule. Beattie shall appoint one (1) person to serve as associate member of the FC Board of Directors. The FC Board also agrees to a proposal to create one or more districts in Kansas. FC intends to employ all Beattie employees that meet current qualifications as required of all FC employees, and all employees retained will participate in the benefit and compensation plan now offered current FC employees. The Board of Directors have unanimously approved the merger. The Boards of Directors of the cooperatives believe that Patrons and equity holders of Beattie will benefit with better pricing of fertilizer, chemicals, grain and upgrades to facilities, to keep up with a changing Agriculture Industry. FC is building a train load out north of Frankfort which will help with grain movement and pricing. Approval of the Transaction by the stockholders of Beattie is recommended without reservation by the Board of Directors of Beattie. INFORMATIONAL MEETINGS FOR THE STOCKHOLDERS OF BEATTIE will be held as follows: Wednesday, March 30, 2016 at 10:00 am at the Community Center, Beattie,KS Wednesday, March 30, 2016 at 2:00 pm at the Community Center, Blue Rapids, KS Wednesday, March 30. 2016 at 7:00 pm at the Frankfort High School SOUTH gym, Frankfort, KS A SPECIAL MEETING OF THE STOCKHOLDERS OF THE BEATTIE FARMERS UNION COOPERATIVE WILL BE HELD ON THURSDAY, APRIL 7, 2016 STARTING at 4:00 PM IN THE CIGNA CENTER AT 402 N. MAPLE IN FRANKFORT, KANSAS. VOTING FROM 4:00 PM TO 7:00 PM. The purpose of the Special Meeting is to vote on the proposed merger of Beattie Farmers Union Cooperative Association into Farmers Cooperative of Dorchester, NE. Copies of the Merger Agreement are available for review at the Beattie office located in Beattie, KS. You are urged to vote FOR the approval of the Merger. Only ballots received at the special meeting will be counted and tallied for the final vote. Dated: March 16, 2016

BOARD OF DIRECTORS BEATTIE FARMERS UNION COOPERATIVE ASSOCIATION Beattie, KS