2024 Incentive Payments and Agency Fees
For calendar year 2024, Golden Growers will pay $0.05 for Method A bushels delivered directly to the plant and will charge $0.02 for Method B bushels the Cooperative secures and delivers on a member’s behalf.
At $0.05/bushel, the Method A incentive for 2024 is a reduction from 2023 when the Board authorized an incentive payment of $0.10/bushel. The 2023 increase was to avoid dropping below the 25% threshold for Method A pool participation. Falling below the 25% threshold would have resulted in greater income being allocated to the Method A pool compared to the Method B pool.
The board believed that the $200,000 cost for increasing the Method A incentive payment in 2023 was a better option than potentially greater cost associated with the complex task of tracking uneven allocated income.
At our 2023 Annual meeting, members approved a bylaw change reducing the Method A delivery requirement to 15%. This bylaw change removed the concern of uneven allocated income between the Method A and Method B pools for the forseeable future. As a result, the Board has returned to a $0.05/bushel Method A incentive payment for 2023.
2024 ADA Pool Election Decision
Each year, Members have the opportunity to change their method of delivery by submitting a revised Annual Delivery Agreement (ADA). This is your only opportunity to change your method of delivery for the coming year.
You should have already received your Annual Delivery Election letter with the ADA form on the back page. If you intend to change your delivery method, return the form no later than December 10th.
Only members intending to change their delivery method need to respond. Members who deliver directly to the plant through the Method A pool have a $0.07/bushel advantage over members participating in the Method B pool.
In 2023, 27.5% of bushels are to be delivered directly to the plant through the Method A pool.
Method A Delivery Options to Consider
Method A Pool participants are permitted to complete their annual delivery requirements through ‘affiliated persons’. In these circumstances, Cargill may write the check for corn directly to the affiliated person.
Affiliated persons include producers who: 1) have a familial relationship to the Member; 2) Own or Control 50% or has management rights over the Member; 3) Shares farming resources with the Member; 4) Are an entity in which 50% ownership is by an immediate family member(s) of the Member; and 5) Rents land from the Member on which the crop is produced (Tenant).
