Archive for category: News

Executive VP Stofferahn outlined the anticipated schedule for 2026 and 2027 for members attending the annual meeting which included expected member distributions, legal planning, financial and tax planning, and equity distributions.

Member Distributions: In terms of member distributions, Stofferahn stated that members can anticipate distributions that follow a schedule similar to prior years. The expected schedule would be as follows:

• June 2026 – Member Distribution to retire equity credits for members of record June 1, 2026
• October 2026 – Member Distribution to retire equity credits for members of record October 1, 2026

Stofferahn anticipates June and October distributions to be of similar in terms of amounts when compared to the February distribution of $0.23/Unit which also provided for an orderly return of the reserve originally reserved for a long-term joint venture.

• January 2027 – The Method A delivery incentive payment (for members who delivered in 2026)
• February 2027 – Required member distribution with a minimum of 30% of 2026 allocated income for members of record February 1, 2027.

Golden Growers will withhold 2026 Method B Agency Fees and ND income tax withholding (for non-ND residents) from this payment. If allocated income is similar to 2026, this could be a little over $0.13/Unit. Here again, the Board has yet to determine an amount.

Equity Distributions: Stofferahn explained that while Golden Growers expects the $81 million dollar payment from Cargill in January, distributions of that equity will not occur until March of 2027. Equity would be issued in two separate payments with a large initial payment and a smaller equity retirement later in March or early April. Quick math ($81M/15,490,480 units) would suggest total equity of around $5.20/Unit. Again, the amount is not yet determined and will depend on operating expenses and any unanticipated claims that may occur.

Continuing Operations: Golden Growers will continue to file quarterly reports and a 2026 annual report with the SEC, General and Private Transfers of Units will continue through 2026, quarterly Board meetings will occur; and 2026 K-1 tax forms will be issued in February of 2027.

Non-Continuing Operations:

• Annual Delivery Elections – Members will not receive an annual delivery election mailing in October.
• 2027 Deliveries – There will be no delivery requirements for 2027
• General Transfers – There will be no future ‘general’ transfers (arms-length sales through FNC Securities) in 2027. Private Transfers (transfers to immediate family members, to include joint members, to trusts, or estates) will continue for a while in 2027.
• 2027 Annual Meeting/Director Elections – with a pending dissolution of the cooperative, no annual meeting or director elections will occur in 2027.

On June 11th, the Golden Growers Board of Directors approved a $0.23/Unit distribution of $3,562,810 to members of record as of June 1, 2026 with the payment to be issued no later than June 30th.

Aside from distributing lease income from ProGold LLC to Golden Growers members, this distribution includes a portion of the remaining reserve that was originally intended for a potential long-term joint venture with Cargill.

GGC has issued payments to members totaling $160,854,299 or 298% of members’ original investment in GGC.

Golden Growers Chairman Nick Pyle delivered a compelling reflection of the cooperative’s origins, early challenges, and long-term achievements. He honored the vision and dedication of the founding board members and measured the cooperative’s progress against the ambitious goals set at its inception.

Pyle recounted how ProGold and Golden Growers were born from the collaboration of farm leaders who shared a common dream: to build value-added opportunities for corn producers. Backed by the confidence and expertise of successful cooperatives such as American Crystal, Minn-Dak, and the North Dakota Rural Electric Cooperatives, their effort gained momentum. Following eleven regional meetings held in April 1994, more than 2,200 prospective members contributed seed money to advance the project. By November of that year, after reviewing the prospectus, the majority invested $52.5 million to establish the new cooperative.

Wahpeton, North Dakota, was ultimately selected as the site for the ProGold plant. Construction began in May 1995, and operations commenced in September 1996. Yet, as Pyle noted, “even as the plant rose from the ground, the corn sweetener market was shifting.” Industry capacity had grown by 38% while demand increased by only 4% annually. Prices fell sharply, leading to a $30 million loss in ProGold’s first year and even greater losses projected. To safeguard members’ equity, the board decided in 1997 to lease the plant to Cargill—a move that stabilized finances, retired debt, and eventually allowed member distributions to begin in 2008. As Pyle described it, “the fourteen-year drought since initial investment had finally ended.”

Reflecting on the cooperative’s enduring purpose, Pyle reaffirmed that the founders sought not only to solve a market problem through collective action, but also to create an enterprise that would make employees, farmers, and communities proud. The effort spurred local corn production and attracted additional processing investment across the region. “Because of the dream we planted, interest in producing corn blossomed,” he observed.

Pyle concluded, “We have much to be grateful for. Above all, we are thankful for the loyalty of our members who stood by their cooperative through triumphs and trials.”

Pyle’s entire presentation is available here.

Pat Kautzman, CPA and Tax Partner at Eide Bailly, gave a presentation to help members prepare for the anticipated sale of the Cooperative’s ownership interest in ProGold LLC, expected to take place on January 1, 2027. Because Golden Growers is taxed as a partnership, each member’s share of the taxable gain from the sale will appear on their 2027 Schedule K-1, which should be issued in early 2028.

Kautzman explained that the total gain from the sale will include several tax components, each subject to different tax rates. Portions of the gain will be treated as: Ordinary income; Section 1250 gain (taxed at 25%); and Capital gain (taxed at 0%, 15%, or 20%, depending on income level). The difference between the the final liquidation amount received and each member’s tax basis in their units will determine if they recognize a capital gain or loss.

On September 1, 2009, Golden Growers converted from ND cooperative to a Minnesota Section 308B cooperative. At the time, the tax basis of members’ units were reset to the fair market value, approximately $2.85 per unit. This was a taxable event that may have resulted in a tax gain or loss at that time. Since then, each member’s basis has changed annually, reflecting Golden Growers’ allocated income, losses, and distributions. “If you have not acquired units since the conversion of 2009, the capital account on your Schedule K-1 should be an accurate reflection of your tax basis,” stated Kautzman. “Members who purchased, inherited, or sold units since then will need additional information to calculate the tax basis of their units.”

Kautzman emphasized that each member is responsible for tracking their own tax basis. Neither Golden Growers nor Eide Bailly maintains those records. He advised members to assemble prior Schedule K-1 forms, records of unit purchases and sales, and documentation of any units acquired through gifts or inheritance. Inherited units generally receive a “step-up” in basis to fair market value, while gifted units carry over the donor’s basis.

Using several examples, Kautzman illustrated how members’ tax results could vary widely depending on when and how they acquired their units.

He concluded by encouraging all members to begin recordkeeping now to simplify tax reporting when the sale and liquidation occur. Early preparation, he said, will help ensure accurate filings and reduce surprises at tax time. Members should consult their own tax professionals with questions.

Kautzman’s slide presentation is available here.

On February 2, 2026, after a review of the 2025 end of year financial statements, the Board of Directors allocated income of $6,894,825 to the members of Golden Growers Cooperative. The Board also approved the retirement of a portion of allocated equity credit in an amount of $0.23 per patronized bushel for a total of $3,562,810.