Directors Elected, Amendment Approved, Retired Directors Honored

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GGC members approved a proposed bylaw amendment to change minimum income to be allocated to Method A pool members from 25% to 15%.

Golden Growers members also elected directors for three-year terms. They include: Brady Koehl, of Hancock, MN as At-Large Director; Nicolas Pyle of Casselton, ND for the Central District; and Richard Bot of Minneota, MN for the South District. David Kragnes of Felton, MN was elected for the North District for a two-year term.

At the 2024 Annual Meeting, directors will be elected for three-year terms for the At-Large, North, and South Director positions. If you have an interest, please contact Scott Stofferahn.

Harless & Johnson Honored

Mark Harless and Chris Johnson retired from the Golden Growers Board at the conclusion of the 2023 Annual Meeting. Harless was first elected in 2011 and served on the Board a total of 12 years. Johnson served twelve years from 2008-2020 and again in 2022 to fill a one-year term. Secretary Matt Hasbargen offered appreciation to both directors.

“Chris has the distinction of having served 13 years, tying the record set by Jason Medhaug,” commented Matt Hasbargen.

“Mark set the record as the longest serving Chair since our cooperative began. Mark dedicated a great deal of time and talent. He led us during two key negotiations including the change in ProGold ownership. Mark set the standard for leadership,” stated Hasbargen.

Guest Speaker, Matthew Jensen, BNSF

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Golden Growers is pleased to announce Matthew Jensen as our annual meeting guest speaker.

Mr. Jensen is BNSF Railway’s Manager for Agricultural Development within our region.

Changes in management within Class I railroads, effects of the COVID-19 pandemic, supply chain issues, and workforce have combined to cause serious challenges for railways and the industries that rely on them. Matt will address these issues in his presentation at the GGC Annual Meeting.

Golden Growers Annual Meeting, March 23rd

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PLEASE ATTEND the Golden Growers ANNUAL MEETING, Thursday, March 23rd at the DoubleTree Conference Center, 825 E. Beaton Drive, West Fargo, ND

The Agenda Includes:

  • 9:00 a.m. Short Courses
    – John Hejl, Casselton Fire District Chief
    – Angie Johnson. NDSU Ext, Grain Bin Safety
    – Pat Pithey, Cargill Corn Merchandising
  • 10:00 a.m. Annual Meeting:
    – 2023 Election Results
    – Review of the Financial Statements
    – Reports by the Chairman and Executive Vice President
  • 10:45 a.m. Guest Speaker Matthew Jensen, Manager Ag Development, BNSF Railway
  • 11:45 a.m. Lunch followed by our members only Q&A session

2023 Elections coincide with the March 23rd Annual Meeting

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Enclosed with the notice of Annual Meeting, members have the opportunity to re-elect and elect Directors to serve on the GGC Board of Directors.  Ballots may be mailed in the envelopes provided or submitted at the annual meeting.

Current directors up for re-election for 3-year terms are: Brady Koehl, Hancock, MN (At-Large Director) and Rick Bot, Minneota, MN (South District). Board Chair Mark Harless (North District) will reach his term limit and Chris Johnson (Central District) has decided not to run for re-election. We are so thankful for the leadership Mark and Chris have provided to our cooperative.

Due to Bylaw changes approved in 2019, the North District director position will be filled as a 2-year term. The Central district position is for a 3-year term.

David Kragnes submitted a petition to run for the 2-year term for the North District and Nicolas Pyle submitted a petition to run for the 3-year term for the Central District.

In addition to the election of Directors, Members will vote on an amendment to the Golden Growers Bylaws that would reduce the Method A income allocation threshold from 25% to 15%, effective as of January 1, 2023.

More information about candidates for Golden Growers Board of Directors candidates and the proposed Bylaw amendment can be found here:

(Click Link) 2023 GGC Candidate Profiles and Bylaw Amendment Summary

Our accounting firm, Eide Bailly LLC, has agreed to receive and tally the mailed ballots. Having an independent firm receive and count the ballots will give members assurance of election accuracy.

Method A Incentive Doubles to $0.10/bushel for 2023

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At their December Meeting, the Board of Directors decided to double the Method A Incentive payment for deliveries to the plant from $0.05 to $0.10/bushel for 2023.  This is the incentive provided to members who patronize the plant by delivering corn directly to the plant either by themselves or through an affiliated party.

As a result of this decision, GGC members will be given an extended period of time to change their pool election for 2023.

Given this new information, members who may want to change their delivery method may submit a new Annual Delivery Election form.  Members who no longer have their election form, may contact the office (701-281-0468 or scotts@goldengrowers.com) for a replacement or they may download a form from the GGC Website here.  Only members who intended to change their delivery method for 2023 needed to respond.

Because this information has come so late in the year, GGC will allow a member to change their election through the end of March 2023.  After that deadline, GGC will not able to change a member’s delivery obligation for the year.

Note: If a member changes from Method B to Method A from January through March, any corn delivered prior to the changes may not be able to be assigned to the delivery agreement.  Therefore, if a member would like to delivery Method A for 2023, it would be best to submit a new Annual Delivery Agreement prior to any deliveries.

A REMINDER: Method A Pool Participants have Delivery Choices
Provisions of GGC’s Grain Services agreement with Cargill allows members to complete their deliveries through affiliated persons who: 1) Have a familial relationship to the Member; 2) Own or control more than 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; OR Rents land from the Member on which the crop is produced (Tenant). Cargill may pay Affiliated Persons directly for corn delivered on behalf of the Method A member. Incentive payments will be issued to the Method A member, however.

SAVE THE DATE: GGC Annual Meeting Set for THURSDAY, MARCH 23RD

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Golden Growers Cooperative will hold its Annual Members Meeting on Thursday, March 23rd at the Doubletree Conference Center, 825 E Beaton Drive, West Fargo, ND. Members will have the opportunity to elect Directors to serve on the Golden Growers Board. Current directors up for re-election for 3-year terms are: Richard Bot, Minneota, MN (South District) and Brady Koehl, Hancock, MN (At-Large Director). Chris Johnson, Wahpeton, ND who was elected in 2023 for a 1-year term has chosen not to run for re-election leaving an open seat in the Central District for a 3-year term.

Our Board Chair Mark Harless (North District) will reach his term limit. We offer our deepest appreciation to Mark for his dedication to Golden Growers Cooperative. We especially appreciate his steady leadership serving as Chairman for the past eight years!

Due to the change in Bylaws approved at the 2019 Annual Meeting, the North District director position, vacated by Mark Harless, will be filled as a 2-year term. If you have an interest in serving on the GGC Board, this is an excellent time to consider the idea!

Any member in good standing is eligible to be nominated as an At-Large Director or as a Director in the district where the member is registered. If you are interested and want more information about district elections, visit our website at www.goldengrowers.com or contact us at 701-281-0468 or scotts@goldengrowers.com.

Board Proposes to Amend Bylaws in 2023

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The GGC Board of Directors will propose an amendment to the GGC Bylaws which would change the allocation of income between Method A and Method B pools.

Presently, Section 8.2 (c) of the Bylaws requires the allocation of 25% of income to bushels delivered through the Method A pool even if Method A bushels delivered are less than 25%.  This situation would result in varying income allocations by year and by bushel for each member of the cooperative.  Tracking these varied allocations through distributions to members and through the member K-1 tax forms has been described as a ‘nightmare scenario’ that could cost in excess of $250,000 in increased administrative and accounting costs on an annual basis.

Historically, Method A pool bushels delivered have exceeded the 25% threshold so there was no cause for concern.  Lately, however, we have come dangerously close to dropping below the 25% threshold.  In response to this situation, the Board: a) increased the Method A incentive payment from $0.05 to $0.10/bushel for 2023; AND b) proposes to reduce the Method A income allocation requirement from 25% to 15%, effective as of January 1, 2023.

Given the change in the Method A Incentive for 2023 and in light of the proposed amendment to the Bylaws, GGC members will be given the opportunity to adjust their Annual Delivery Election for 2023 through the end of March of 2023.

The proposed amendment will be submitted to GGC members along with their ballots to elect Directors for the Board in advance of the 2023 Annual Meeting.

Rail Transportation Continues to Roil Ag Industry

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In March, the National Grain and Feed Association (NGFA) wrote the Surface Transportation Board (STB) to highlight “significant” service disruptions reported by their members.

Corn refiners also identified problems with ‘first mile’ and ‘last mile’ rail service – situations where product is not picked up to be shipped OR product has arrived in a nearby rail yard, but not delivered to its destination.

Roots of rail transportation problems are several. Beginning in 2003, Class I railroads (with the exception of BNSF) began adopting Precision Schedule Railroading (PSR) a operational method focused on maximum asset utilization and return on investment.

Critics (Shippers and Unions) insist that PSR puts investor interests ahead of customer service by slashing expenses for equipment and headcount. They say PSR leads to the loss of redundant capacity and service disruptions caused by severe weather and seasonal surges in shipping.

COVID also impacted the entire shipping industry. Supply chains were disrupted, shipments were dramatically decreased, and railroads parked assets and 12,500 employees were furloughed. When the economy began to improve, furloughed workers were not available making it difficult for railroads to re-deploy power and equipment.

Problems were further exacerbated by failed contract negotiations between Class I railroads and Unions. Salary increases aside, main sticking points focused on quality of life issues. This all came to a head when, with the intervention of the Biden Administration, an early morning tentative agreement averted a national rail strike.

Despite the apparent contract resolution, concerns persist. Customers wait for product to be delivered timely, processors wait for supplies to arrive and stranded cars to be returned, and shippers, in general, hope that we are not experiencing a ‘new normal’ for rail freight service.

2023 Incentives, & Fees Set, Pool Election Decision

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2023 Incentive Payments & Agency Fees

Incentive Payments and Agency Fees for Method A and Method B Pool participation will remain the same for 2023. That means 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.

2023 Annual Delivery Agreement Pool Election

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 2022, 27% of bushels were delivered by members directly to the plant.

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).

GGC Board Approves $0.14/bushel October Distribution

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On September 15th, the Golden Growers Board of Directors approved a distribution of $2,168,667 or $0.14/Unit to members of record as of October 1, 2022. This distribution retires remaining allocated income for 2021 and a portion of allocated income for 2022. In combination with the February and June distributions, a total of $6,041,286 has been issued to members in 2022.

As you are aware, as of March 1, 2022, Golden Growers Cooperative and Cargill are 50/50 owners of ProGold LLC and a new operating agreement was established. In addition, the lease agreement between ProGold and Cargill was amended to extend through calendar year 2026. The Board’s distribution determination is based on anticipated lease agreement revenue and potential capital investment requirements for Golden Growers should a long-term joint venture be established between Cargill and Golden Growers.GGC.)

With this payment, Golden Growers has issued payments to members totaling $138,479,196 or 238% of original investment in the ProGold plant.