On June 15th, the Golden Growers Board of Directors approved a $0.13/Unit distribution of $2,013,762 to members of record as of June 1, 2020.
A $0.13/Unit distribution is a penny lower than what the Golden Growers Board had been distributing more recently.
It has been the GGC Board’s goal to level out distributions through the current ProGold lease. They estimated capital expenses, the timing of payment for capital projects, and declining lease payments. Now that estimates have been replaced with updated financial information, it appears they may fall short of their projected reserve balance at the end of the lease period. Therefore, the GGC Board decided to make an adjustment in member distributions to avoid more significant adjustments in the future. Future distributions may be adjusted up or down as we receive more accurate financial information.
This distribution will retire a portion of remaining 2018 allocated income. With this distribution, the remaining equity credit balance of $6,158,568 or $0.40/bushel. This balance is useful in determining per Unit basis levels and does not constitute an outstanding obligation for GGC.
Golden Growers has issued payments to members totaling $193,918,145 or 211.7% of the original investment in the ProGold plant.