Frequently Asked Questions

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1. GFA is Growers Freedom Alliance (Freedom from the evolved constraints that have entangled the agrichemical supply chain. The inability to source generic agrichemicals made in the USA.)

2. Please read these FAQ’s (Frequently Asked Questions). 

3. Email GFA for more information: info@gfatexas.com  

4 . Can a member be a non-person, such as an LLC, corporation, partnership, or joint venture? 

• Yes, an entity can be a member of the GFA Purchasing Group. 
• The entity could be a corporation, LLC, or a partnership.
• If a contact manages or participates in multiple entities, each entity can be a member.

1. Initial Membership cost: $25,000. 
2. The annual maintenance fee is $1,250 (5%), due by the end of each year.
3. What is the term of the buying group membership? Memberships expire on 1-1-2034.

1. Vulpes Corp's manufacturing location is at the Reese Technology Center, Building 930, at the former Reese Air Force Base. 
2. This three-story building (95,578 SF) has east and west wings, including a cargo elevator. Each wing contains office space and four flight simulator bays, which will be used for chemical manufacturing. There are eight bays total, and they are perfect for Vulpes production. 

1. GFA will stabilize our members' agrichemical supply chain. 
2. Vulpes will provide members with the highest-quality generic agrichemicals, surfactants, adjuvants, and plant growth regulator alternatives. 

1. A patented chemical active ingredient (AI) is protected from competition by the patent for 20 years. At the end of the patent term, it is off-patent, and that is when others can make the generic active ingredient of a previously patented agrichemical. 
2. Newly patented products and innovations are extremely limited in the current agricultural market for farmers. Most chemicals that are top sellers to farmers are no longer under patent protection (this represents 80% of Active Ingredients today).
3. The last decade’s consolidation of agricultural and seed companies was evangelized as supporting innovation and giving input companies broader capabilities. The truth has been that farmers and others (including antitrust regulators at Federal and State levels) have realized that greater market power has suppressed innovation.
4. Any chemical manufacturer can produce generic chemicals when the patent has expired with proper EPA registration. Based on sales volume in 2024, the world’s top 20 active ingredients will be off-patent.
5. The fact that patent protection has expired only allows others to produce the chemical, but they will need to develop a manufacturing process and be granted an EPA registration. Vulpes Corp is an expert in chemical processes, and they have created these processes for their company and others worldwide. GFA is a great partner in the chemical distribution space, and Vulpes is filing patents based on its currently developed processes.

1. GFA's structure is based on a “Buying Group Company” or “Group Purchasing Organization” model. 
2. Currently, most distribution groups bring the active ingredients from offshore (China and India) and formulate them into a final product. To our knowledge, no one is yet trying to re-shore manufacturing to take advantage of a shorter distribution chain in terms of the number of participants in the supply chain and the distance to the end customer. 

1. The off-shore supply chain is too reliant on Chinese active ingredients. It is not “if” but “when” we will have a problem with this supply chain.
2. The most significant suppliers engage in anti-competitive behavior toward generic chemicals sold at ag retailers. These big companies have a deep relationship with ag retail. Therefore, GFA will go directly to the buying group of customers and supportive ag retailers.

1. The U.S. Federal Trade Commission (FTC) suspects anticompetitive behavior in the current agrichemical supply chain and filed a lawsuit against Syngenta and Corteva in the fall of 2022 to address this issue. Several attorneys general from major agricultural states, including Texas, initially joined the lawsuit. 
2. Link to the Case Proceedings at the FTC:  https://www.ftc.gov/legal-library/browse/cases-proceedings/191-0031-syngenta-corteva-ftc-v 
3. On January 12th, 2024, a Judge denied the request for dismissal of the suit, and the action against these manufacturers is going forward. The Judge found sufficient evidence not to dismiss the suit.

1. GFA realizes that creating new proprietary patented products by our biggest companies brings innovation, and the agrichemical market is no exception. However, in the last 25 years, there has been a steady decline in new active ingredients discovered for crop protection, partially due to escalating costs of R&D (Research and Development). Higher regulatory and field-testing costs and increasing scientific complexity compound this difficulty in developing new agrichemicals. The history of herbicides helps us realize that the well-known active ingredients are almost ancient in their timelines. For example, glyphosate (a/k/a Roundup) was discovered in 1970 by John Frantz, a Monsanto chemist. That was 54 years ago, and that timeframe helps us understand that the possibility of finding a new innovative herbicide is slim. GFA’s goal is to produce high-quality generic products with high purity of active ingredients and to support a cost structure that can help farmers be profitable. The Vulpes brand of generic chemicals will increase confidence in using generic agrichemicals manufactured by Vulpes and distributed by GFA.
2. This leads to the realization that new patented products and innovations are extremely limited in the current agrichemical market for farmers. Most chemicals that are top sellers to farmers are no longer under patent protection (only 20% of Active Ingredients have current patent protection). 

1. GFA has a partnership with Vulpes Corp and its leadership. The Vulpes team's CEO, Rick Shang, immigrated to the United States from China 18 years ago with his father and mother. His father, Dihu Yu, is a pioneer in chemical process engineering and lean manufacturing for agrichemicals and pharmaceuticals in China and will bring that experience to the partnership between Vulpes and GFA. The collaboration with GFA will allow Dihu to recreate a family business success on American soil. He is proud of his decision to immigrate because he loves the freedom of fully owning a business.
2. Vulpes Corp., a U.S. company founded in 2018, is dedicated to onshoring chemical production back to the United States. Vulpes will bring Chinese manufacturing talent and assets to the U.S. for production in this version of onshoring or reshoring from China. Vulpes will be a strategic supplier for global chemical corporations and a direct supplier of low-cost agrichemicals to its members. Rick, Dihu, and the Vulpes Team want to join GFA to create a competitive generic chemical supply chain for GFA members. 
3. Vulpes’s technology and R&D come from an experienced team led by Dihu Yu, its CTO. In the 1990s and early 2000s, Dihu Yu pioneered offshore manufacturing (from the U.S. to China) and built a team of researchers to support global corporations such as BASF, DuPont, GSK, and others. 
4. Dihu created the complete process for global manufacturers in China, including developing new methods, finding the supply chain of raw materials, and operating factories in China. He is excited to bring onshore manufacturing back to the U.S. and be part of GFA’s efforts to build cost-competitive and innovative manufacturing infrastructure in the U.S. 
5. Greg Shapiro, Vulpes COO, manages Vulpes' operations. Greg built his family manufacturing business, Shapiro Brothers, from $1 million to more than $90 million in annual revenue before selling the company to Icahn Enterprises. Greg is experienced in low-cost, large-scale operations and skilled in assembling and disassembling chemical plants. His knowledge of this industry subsection is critical to getting the facility up and running.

1. GFA leadership has almost three years of due diligence with Vulpes Corp. Billy Tiller, CEO of GFA, met Rick Shang and Greg Shapiro at the 2022 Ag Innovation Challenge sponsored by the American Farm Bureau. Vulpes was a Top 10 Finalist that year for its innovative new product, Carbon Black Acid (CBA). 
2. In developing CBA, Vulpes collaborated with 15 research and agricultural extension teams across 10 U.S. research institutions to develop its patented CBA. CBA is a fertilizer and seed coating that can improve a plant’s nutrient and water uptake by up to 200%, reduce fertilizer loss and its environmental impact, and reduce fertilizer expenditure by farmers. Vulpes CBA was in worldwide CBA trials in 2024 with a significant fertilizer manufacturer.
3. After the January 2022 meeting, Vulpes and GFA worked on understanding if Vulpes could use its manufacturing ability to commercialize novel agrichemical materials and onshore existing agrichemical production.

1. YES, and let me use this example to explain: In 2005, Dihu Yu helped FMC, an American company, industrialize AIM (also marketed as Affinity, or by the chemical name, Carfentrazone-ethyl) in China for the first time. The product was exported to the US but manufactured in China. 
2. His main improvement was replacing the raw materials. FMC initially used Phosgene as the starting material. This organic compound is highly toxic. Dihu used Potassium cyanate (low toxicity) (not to be confused with highly toxic Potassium cyanide) as the starting material for his reaction. In 2005, potassium cyanate was not industrialized in China. Dihu industrialized the production of potassium cyanate in China for the first time using processes his team had developed. 
3. An added improvement was replacing the catalyst. Dihu improved on the expensive, precious metal and Pd-based catalysts. He discovered an alternative, less expensive catalyst than the original Pd-based catalyst.
4. Also, he changed the process in this way. Dihu changed the diazotization process and the use of Azides. Diazotization is an extremely explosive manufacturing process that was eventually banned in China. Azides are also highly volatile chemicals used in the process. He further shortened the manufacturing process from 7 steps to 5 steps. 
5. Ultimately, he achieved a safer, higher quality, and cheaper manufacturing process for Aim herbicide. The cost of production dropped by 40% from the original cost calculated by FMC, and the new process massively reduced the release of waste.

1. Vulpes Corp will manufacture certain chemicals for GFA on a cost-plus basis. GFA will take on the risk of forecasting demand for certain chemicals, making orders from Vulpes Corp, receiving an inventory of agrichemicals, receiving payment from customers, paying Vulpes Corp for manufacturing, and distributing inventory to the members who want the agrichemicals. 
2. Vulpes can do “just-in-time” manufacturing in emergencies. If GFA has missed its forecast and a chemical is in short supply, Vulpes will run emergency batches. This will increase the costs, so it will not be relied upon as routine operations. Still, it would supply to GFA members that is nonexistent in the current agrichemical manufacturing scenarios. GFA has priority in manufacturing from Vulpes, but we want to do accurate forecasting. GFA wants to be a great partner to Vulpes.

1. Vulpes will have other customers, which benefits GFA. GFA needs Vulpes to run profitably as soon as possible, and there must be other customers for stability. GFA also needs Vulpes to have stability from year to year, and the volatile weather and growing conditions around Lubbock are not conducive to stability. 
2. GFA will be a priority for Vulpes, and that will be assured. The agrichemicals sold through GFA will be some of Vulpes' most profitable production.

1. GFA Buying Group Members will have access to chemicals produced by Vulpes at a cost anticipated to be below other prices for a similar generic agrichemical. 
2. Vulpes will produce the active ingredients in the USA when technically, economically, and legally feasible. This is usually the case but will not include glyphosate or paraquat actives. The lawsuits surrounding these products put Vulpes on pause as a manufacturer of these active ingredients. However, Vulpes will formulate active ingredients from China for both products.
3. GFA Buying Group Members will receive rebates from GFA based on their membership status in a particular year. The rebates are based on GFA's profitable distribution division.
4. Members are at the end of the road in accepting continual chemical price and supply instability. The GFA and Vulpes partnership will drive lower costs for targeted products from generic agrichemicals Vulpes produces. Vulpes Corp can produce on US shores at the cost of manufacturing in China. There are times when China sells products in markets that are lower than the cost of production to keep its workers satisfied and to destroy other markets (Search China Dumping on the Internet). Vulpes will use those opportunities to utilize offshore active ingredients to formulate. This is an exciting time working with Vulpes, who can use a manufacturing or formulating strategy.
5. Grower Freedom Alliance (GFA) will focus on creating stability and sourcing options for agrichemicals. Currently, most agrichemical active ingredients are produced offshore in China or India, where transportation and world trade barriers impact their prices and availability. In addition, the agrichemical market is an oligopoly controlled by only a handful of suppliers. In the last ten years, there has been continued consolidation in the agricultural supply chain. Therefore, today, only four significant firms (Syngenta, Bayer, BASF, and Corteva) control over 62% of this market globally (2020 data).
6. The issue is further complicated because when you evaluate the largest 8 companies manufacturing agrichemicals, this group accounts for 90% of agrichemical sales worldwide (based on 2020 sales).

1. Any individual or entity classified as a farmer or an entity serving farmers and who will be buying agrichemicals. Individuals must be qualifying individuals 18 years of age or older. 
2. GFA reserves the right to refuse membership to any applicant. Membership is subject to all rules adopted by GFA, including our privacy policies and practices, and they may be amended from time to time.
3. GFA members cannot sell pesticides unless they hold a TDA Pesticide Dealer's License. The Texas Department of Agriculture (TDA) has strict rules regarding how GFA sells agrichemicals to its members, and we want to abide by them. We expect GFA agrichemicals to be priced the same for all members. 
4. Some entities serving farmers have joined GFA, and they currently have a pesticide dealer license. GFA will have written agreements allowing them to sell chemicals to others and provide last-mile distribution to other members linked to that specific ag retailer. This process is still evolving, but it is exciting, as many see the value of making chemicals in Texas. 
5. Memberships are transferable: The party receiving the membership must qualify and be accepted by GFA. 

1. GFA will annually rebate a percentage of the net profits from distribution. This will be the net profits after income taxes and all associated expenses, including amortization, depreciation, and interest expenses. The total rebate will be prorated back to members equally.
2. Net Profits from Distribution will not include income from membership fees or any revenue except sales of agrichemicals to members and non-members. Nonmember chemical sales could evolve as we increase the capacity at the plant and have chemicals outside of our allocations to members. These unallocated chemicals will be sold to nonmembers through ag retail, and those profits will also be part of the distributions to members. They would be sold at increased prices, and our members will always have preferential pricing.
3. Distribution Expenses include the total cost of products, storage, transportation, billing, and all costs associated directly with procurement and distribution. In addition, all indirect costs related to administration and overhead will be included in this calculation. 
4. Members are incentivized to use GFA chemicals whenever possible because of the lower prices and the rebates. This will grow the network beyond membership in the future and to nonmember farmers once we have the increased supply from Vulpes. The nonmember revenues and expenses will be included when calculating the net profits from distribution.
5. The member rebate percentage was initially 65% but is decreasing for the newest members. This is to reward those members who were critical to getting everything started. The early members will have a higher rebate. We will continue this practice over time, so join as soon as possible.

1. GFA will guarantee Vulpes the sale of a specific volume of chemicals they can produce for GFA based on the members' polling.
2. GFA will offer these chemicals to their membership based on directly allocating the produced volume across all members. All products are available equally to the membership. If the member agrees to their chemical allocation in volume, then payment is made to GFA, and delivery or pickup is scheduled. If the member does not desire an allocation of a particular agrichemical, then a portion of this unused allocation can become available to other members equally. This is at GFA's discretion. All payments are made to GFA before delivery or pickup by a customer/member.
3. GFA will have 400 members, and the modeling is based on approximately four to five thousand acres representing a membership. There is no one-size-fits-all, but we have done our best. The membership is allocated based on an assumption of 400 members. GFA will not take membership after 400 members.

1. GFA believes Lubbock is the perfect place to re-shore agrichemical manufacturing. The hub city has a solid agricultural base, a strong research university with Texas Tech, a great labor market, support from the city of Lubbock, and support from Reese Technology Center. 

1. Yes, it can be price-competitive with the current offshore manufacturing. The time is now, and let us explain why: Labor costs are increasing in China, and China is no longer considered the lowest-cost manufacturer.
2. This article describes the current cost of labor in China: https://www.logisticsmgmt.com/article/global_labor_rates_china_is_no_longer_a_low_cost_country#:~:text=China%20no%20longer%20low%2Dcost&text=The%20research%20concluded%20that%20China,India%2C%20Mexico%2C%20and%20Vietnam .
3. Chemical active ingredients (AI) arriving in the U.S. from China are subject to tariffs, a/k/a Trump Tariffs, of as much as 25%. There have been exceptions sometimes, but this policy seems to be here to stay, given the current tension with China. Another current fact is that former President Trump has boldly stated in recent speeches that he will get much more aggressive with China and expects to raise tariffs to 60% if elected.
4. Electricity costs are comparable in China, and natural gas is cheaper. Both of these factors make the USA a great place. 
5. During the recent pandemic, all agriculturalists realized that a global shutdown of trade could affect the price of critical farming inputs. The cost of agrichemicals escalated by 70% to 300% as demand remained constant, but access to supplies dwindled. A similar shutdown could come from pandemics or global conflicts in the future.
6. The food, feed, and fiber supply chains to major U.S. retailers are genuinely concerned about how the raw materials (our cotton and grains) are produced and the environmental impact of farmer’s production practices. GFA and its members are about to embark on an incredible journey that is a story for the ages. It is not to be organic but to farm responsibly and be concerned about when, how much, and the contents of all agrichemicals that we apply to our soils and plants.

1. GFA will focus on two product lines: Generic off patent agrichemicals and surfactants/adjuvants.
2. In 2025, we will expand our active ingredient production and formulations. Some examples will be formulations of Atrazine, S-Metolachlor, Paraquat, and Glyphosate. Vulpes will be making actives for Flumi, Trifluralin, and generic Finish. Please email us for a current list and expected prices.
3. Several more chemicals will be on the market in 2026, including Vulpes Glufosinate. Vulpes will have a better version known as L-glufosinate, and we are working on that for 2026. Three other generic products are also staged for 2026.

1. The current supply chain for generic agrichemicals is a race to the bottom as there is tremendous downward price pressure at chemical production facilities in India and China. The lowest-priced Active Ingredient (AI) is sold and consumed in the current agricultural market and then available to farmers. The low profitability of offshore manufacturing plants leaves little investment in R&D, quality control, or the discovery of safer and friendlier manufacturing processes. Therefore, offshore AI can have quality issues relating to purity. We are encouraged that state and federal regulators welcome bringing agrichemical production back to the U.S. shores where there can be more stringent monitoring.
2. GFA is currently working with ag commodity research groups to quantify the purity level issues of agrichemicals in the current market. GFA leadership has personally seen enough evidence in advance of a study to be highly suspicious of why various lot numbers of offshore manufactured generic chemicals all perform with differing levels of efficacy.
3. This article is beneficial in understanding purity issues. https://www.lawnandlandscape.com/article/special-section--pesticides--clarifying-common-misconceptions/
4. This is a transcript of an interview with Katherine Eban, who released in 2019 her book, "Bottle of Lies: The Inside Story of The Generic Drug Boom." It outlines the problems in the generic drug supply, especially for Indian producers. If this is a pharmaceutical problem, you can bet the farm that it is in generic agrichemicals from offshore. https://www.npr.org/transcripts/723545864
5. Also, onshoring will bring massive logistical changes that affect emissions. We will no longer be shipping AI from places such as China and formulating and packaging it for distribution all over the U.S. Vulpes is creating a chemical manufacturing facility within 250 miles of the farms GFA serves from the manufacturing site. Chinese manufacturing is estimated to be 7,500 miles from Lubbock, and India is 8,700 miles from Lubbock. What a tremendous change we can make by working together.

1. The Vulpes Corp Production Schedule is affected by the EPA's approval of its registrations. These registrations can take 18-24 months; these are our best estimates.
2. Email us for a current production timeline.