Countdown, Our Final Two Years – Chairman Johnson
Chairman Brett Johnson’s report to members at the annual meeting centered on expectations for the cooperative’s final two years. Johnson explained how the Board concluded that Cargill would purchase Golden Growers interest in ProGold at the end of the current lease period in 2026.
“The decision to negotiate a long-term agreement depended on landing a co-located partner at the Wahpeton facility. And this partner would have to consume at least 30% of the facility’s grind capacity,” explained Johnson. Over the course of the past year and a half, it became clear that the potential to find that partner within the current lease period had vanished. “Golden Growers and Cargill had a discussion over the possibility of extending the lease.” According to Johnson, an extension needed to preserve the value of members’ financial interest plus a modest increase. “Ultimately, we were not able to come to an agreement.”
With this realization, Golden Growers and Cargill issued a joint statement that Cargill would purchase Golden Growers interest in ProGold at the end of the current lease. “After consulting with our legal counsel, we were informed that it would take a full two years to dissolve the Cooperative. Therefore, if we wanted to shut down Golden Growers shortly after Cargill’s purchase, we would need to start soon.” Referring to the apparent approval of the resolution submitted to members, Johnson stated, “Our Cooperative will begin the process to wrap up business.”
Johnson outlined what members can anticipate in the next two years. According to Johnson, Golden Growers will continue with normal operations to include: receipt of lease income from ProGold; member annual delivery obligations through the Method A and B pools; SEC reporting requirements; and member distributions three times each year for 2025 and 2026.
In early 2027, the board will establish a reserve while the bulk of the $81 million will be paid to members within a reasonable time period upon receipt of the payment from Cargill. “A final payment will be issued after all obligations are satisfied. We will then notify the Minnesota Secretary of State that Golden Growers has been dissolved.”
Johnson reassured members that their membership remains valuable citing the expected $81 million payment from Cargill and financial assets. “Our February payment began the orderly distribution of cash reserves no longer needed for a potential long-term joint venture.” Johnson also emphasized that the future of the ProGold facility is secure. “Experience informs us that companies investing significant amounts of capital in a facility show a commitment well into the future.” He explained that Cargill had invested millions to improve the plant in recent years. “While Wahpeton is not the largest facility they operate, it remains one of their best.”
In conclusion, Johnson reflected on Golden Growers thirty-year history with the ProGold plant. “In addition to providing income to our members, the plant has provided a critical market for our corn, raised the basis in the region and gave confidence for other processors to build and expand in the region. I think we all have some mixed emotions about the next two years. But I am reminded that the average age of our members was 46 in 1995. We are all 30 years older. Perhaps it is time to return the investment you trusted us with so long ago.” Johnson stated that before we close out 2026, Golden Growers will have distributed 300 percent of the original investment to members.
Johnson thanked members for supporting him as he departs after serving twelve years. “Now I look forward with confidence in our board as Golden Growers heads toward a golden sunset.”
