On June 15th, the Golden Growers Board of Directors approved a distribution of $2,168,667 to members of record as of June 1, 2018. This distribution is to be issued no later than June 30th. Total 2017 allocated income was $8,276,784 or roughly $0.53/bushel. In February, the Board issued a distribution to retire $2,493,967 of 2017 allocated income. This June distribution will retire $813,735 of remaining 2016 allocated income and $1,354,932 of 2017 allocated income for a combined total of $2,168,667 or $0.14/bushel.
As previously mentioned, the GGC Board believes it is important to build a reserve during the course of this new lease for several reasons that include likely capital expenditures at the plant, and the potential for Cargill to exercise its option to purchase 50% interest in ProGold. This distribution authorized by the Board will result in a remaining equity credit balance for 2017 of $4,427,885. With this payment, Golden Growers has issued payments to members totaling $100,875,160 or 186.9% of original investment in the ProGold plant.
Mark Dillon, GGC’s Executive VP during through 2012 said, “In 1996 the price for HFCS plummeted and we knew the losses could not be sustained for long. ProGold’s leadership found a solution by leasing the plant to Cargill on terms paid off the debt at the end of the 10 year lease. Some members wondered if they would ever see a return on their investment. But members who were patient have been rewarded for their confidence. For me, the best moment in our history was mailing that first cash distribution of more than 59 cents per share in August, 2008.” Dillon credited extraordinary leadership from the GGC and ProGold Boards during those challenging years.