Recently, the ProGold Board of Governors voted to resume monthly distributions to its members. The Golden Growers Board is now able to consider future obligations against revenue as they plan for member distributions.
On June 15th, the Golden Growers Board of Directors approved a distribution of $0.14/bushel or $2,168,667 to members of record as of June 1, 2017. This distribution is to be issued no later than June 30th. Total 2016 allocated income was $7,366,209. Along with the February distribution, a total of $4,383,806 of 2016 equity credit has been retired.
Your Golden Growers Board believes it is important to build a reserve during the course of this lease for several reasons. If Cargill chooses to exercise its option to purchase 50% interest in ProGold from American Crystal Sugar Company, Golden Growers will be obligated to buy American Crystal’s remaining 1% in ProGold. In addition, there are likely to be capital expenditures during the lease that are the obligation of ProGold while lease income declines. When capital exenditures occur, distributions from ProGold will be reduced. By building a reserve, Golden Growers Cooperative will be able to moderate the impact of those capital expenditures and declining lease revenue.
The distribution authorized by the Board will result in a remaining equity credit balance for 2016 of $2,982,403.
With this payment, Golden Growers has issued payments to members totaling $94,043,859. This represents 174% of members’ original equity investment in the ProGold plant.