NOTICE: Golden Growers to hold ‘Virtual’ Annual Members Meeting

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The previously scheduled ‘in person’ meeting at the DoubleTree in West Fargo will not be held. 

Instead the Annual Meeting will be held through Remote Communication using GoToMeeting’s Conferencing Services starting at 9:45 am CDT on March 26th.  

This decision was not arrived at lightly because our Board values our annual face to face discussions. But they also fully understand concerns being raised by public health officials about COVID-19 and the risks associated with public gatherings. On Sunday evening, the CDC recommended that no gathering over 50 people should be held. We have decided to follow their guidance for the health of our communities and our members.
Note: Resources on COVID-19 are available at: www.health.nd.gov

Please join the meeting at 9:45 am (CDT) and contribute to a quorum for conducting our business:
• Dial-in number: (571)317-3112, Access code: 588-285-917
• Online Meeting: https://www.gotomeet.me/ScottStofferahn/annual-meeting-golden-growers-cooperative
• Install GoToMeeting App prior to the meeting: https://global.gotomeeting.com/install/588285917

We recommend that you call in on the dial-in number and watch the presentation online. Meeting links and Presentation slides will also be posted on the Golden Growers website for members to follow along.

If you are unable to see the presentation using GoToMeeting, you can follow along by clicking the link below.

Annual Meeting Presentation Slides

Your assistance is needed to meet our quorum. While we would prefer everyone join the meeting through the call, the simple act of voting as described below, will contribute to the quorum requirements of our bylaws.

Voting Option 1: Print the Ballot for your District in the links below, Mark the Ballot, and Mail it to:

Golden Growers Cooperative, 1002 Main Ave W, Suite 5, West Fargo, ND 58078

Voting Option 2: Review the ballot for your district in the links below and email your responses on the ballot questions to scotts@goldengrowers.com

Brian Jennings American Coalition for Ethanol CEO to Headline March 26th Annual Meeting

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Golden Growers is pleased to announce Brian Jennings as our annual meeting guest speaker.

Mr. Jennings has served as the top executive for the American Coalition for Ethanol (ACE) since 2004. Prior to serving in this position, he served as a U.S. Senate Agricultural Policy advisor and for a South Dakota farmers organization.

ACE promotes and defends the ethanol industry by representing over 120 organizations in 19 states.

Jennings will inform GGC members about status of the Ethanol Industry at a time when the future of the Renewable Fuels Standard has become one of the hottest topics for agriculture.

The annual meeting will be held on Thursday, March 26th at the DoubleTree Conference Center 825 E Beaton Dr, West Fargo, ND.

This year, Golden Growers will celebrate its 25th year since members first elected a Board of Directors.

The schedule is as  follows:

8:00 am – Registration Opens

9:00 am – Morning Short Courses

  • Research: 60″ Corn Rows, Surprising Results – Kelly Cooper, Agronomist NDSU Oakes Irrigation Research
  • The Natural Gas Capture and Distribution Challenge – Justin Kringstad, ND Pipeline Authority
  • Corn Market Outlook for the 2020 Crop Year – Pat Pithey, Cargill Corn Merchandising

10:00 am – Golden Growers Annual Meeting

  • Election of Directors
  • Review of Financial Statements
  • Reports by the Chairman and Executive Vice President

11:00 am Guest Speaker, Brian Jennings CEO of American Coalition for Ethanol

11:45 am – Lunch followed by Your Questions

In the Midst of Excess, Shortages Abound

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If you take a drive through oil country in western North Dakota at night, you will see hundreds of places where natural gas is being flared (or burned) off. This is because drilling activity continues to surpass the same industry’s ability to effectively capture, process, utilize, and export the gas. ND Pipeline Authority director Justin Kringstad recently reported that the state is falling short of its 88% goal by capturing only 83% of natural gas. Remaining gas is flared in order to allow continued oil production. While efforts are underway to meet the state goal through additional processing capacity and additional pipelines to transport natural gas liquids out of state. Still, to meet future goals, significant additiona investment in infrastructure will be required.

Meanwhile, many communities within North Dakota have no access to natural gas or suffer from shortages and farmers ran short of propane to dry their corn. In some circumstances, it may not be economically feasible to extend delivery infrastructure, but for other communities natural gas availability offers the potential for economic growth. Recently, State Legislators like Rep. Mike Brandenberg, Rep. Alisa Mitskog, Sen. Jim Dotzenrod, and Sen Terry Wanzek have discussed investing in distribution and delivery to meet farm and community needs. We are encouraged that state leaders are considering how to convert what is being wasted into a driving force to improve our state.

GGC Board Allocates 2019 Income – Announces Payment

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On February 4, 2020, after review of the 2019 end of year financial and income statements, the Board of Directors allocated income of $6,962,196 to the members of Golden Growers Cooperative. The Board also approved the retirement of a portion of allocated equity credit in an amount of $0.14 per patronized bushel for a total of $2,168,667.  This payment was issued on February 14, 2020.  70% of members received their payments through the use of Direct Deposit.

SAVE THE DATE: GGC Annual Meeting Set for THURSDAY, MARCH 26TH

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Golden Growers Cooperative will hold its Annual Members Meeting on Thursday, March 26th 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 are: Mark Harless, Borup, MN (N District); and Richard Bot, Minneota, MN (S District).

Directors Shaun Beauclair (N District); Chris Johnson (C District); and Glenn Johnson (N District) will reach their term limit and due to the change in Bylaws approved at the 2019 Annual Meeting, their director positions will not be filled and the total number of Directors will be reduced to twelve.

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

Anticipate a Direct Deposit Mailing in January

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Over two thirds of Golden Growers members are participating in Direct Deposit of their Distribution payments. We have received numerous favorable comments about how well the system works. It is in the interest of members and Golden Growers to have our members participating in the electronic payment system. In early January, members who are not participating will receive a letter with a completed form and return envelope. Please consider enrolling to simplify your life, save time, and make your Cooperative more efficient.

Advantages include:

  • No Lost Checks – On an annual basis, Golden Growers spends a great deal of time tracking down checks that have been lost or not cashed. Direct Deposit eliminates this problem. Members ALWAYS receive their money and GGC saves time and expense.
  • Immediate Access to Payments – Direct Deposit participants have immediate access to their payments instead of waiting for the mail and the time needed to go to the bank to make a deposit. At the end of October, 23% of distribution checks worth over $220,000 remained uncashed AND 35 checks worth $28,000 from the June and February distribution were still outstanding. One month later, uncashed checks total exceed $119,000.
  • Confirmation of Deposit – Golden Growers mails out a confirmation letter identifying the purpose and amount of the payment for your records.

Cash Those Checks!

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Golden Growers members have the option to receive their distribution payments through Direct Deposit or by paper check. One third of members continue to receive payments by check. Unfortunately, several checks are never cashed because they are lost or misplaced.

Currently, there are numerous uncashed checks from 2018 and 2019.

We work hard to make sure our members receive the money due them and to avoid sending these funds to unclaimed property agencies of the member’s state of residence. That’s why we send letters to members who have outstanding checks, follow up with phone calls, and reprint checks if necessary.

If you receive payment by check, please review your deposits to verify that you have received your payments for February and June. If not, give us a call so we can help resolve the situation.

If you want to avoid lost check problems, please sign up for Direct Deposit.

Starting in 2020 – New Policy on Reprinted Checks

The Board of Directors has approved a new policy for 2020 that will result in a $25 charge for every check that is reprinted.

This fee will be waived if the member enrolls in Direct Deposit when the request to reprint a check is received.

Natural Gas Availability in Wahpeton is Vital

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Constraints on natural gas supplies in Wahpeton have caused concerns at the ProGold plant and for other major users of natural gas in the area. Whenever the temperature drops below 20 degrees on winter days it is common for Great Plains Natural Gas (local supplier) to notify Cargill and other major users to curtail use or dial back production.

This situation has been getting steadily worse and has the potential become critical in coming years.

Background: Natural gas is supplied to Wahpeton through a 60s era 8” pipe that originates in Vergas, MN, goes to Fergus Falls and then is reduced to a 6” pipe feeding the Wahpeton – Breckenridge community. As use of natural gas along the line expanded, pressures were increased to meet the growing demand. Presently, the line’s capacity is tapped out. And because of safety concerns, federal guidelines may cause pressure on the line to be reduced at a future date and dramatically exacerbate the situation.

Discussions within the community have been ongoing for several years, but no resolution is in sight. Several options have been considered – all of which would require a firm commitment over a period of years to guarantee the cost of construction of a new supply line. More importantly, any solution should have the capacity to serve future needs and growth (residential, commercial, and industrial) of the community. Additionally, any new supply for the area would serve as a backup supply for Fergus Falls should the existing pipeline go down.

As you can see, any solution provides a significant benefit to the area and other customers of Great Plains Natural Gas. Yet, proposals to pay for the majority of the project rely on guarantees of current major users at a significant increase to their current cost of natural gas.

Two scenarios are important to keep in mind. The first is simply to provide enough natural gas to maintain operations at the ProGold plant and meet the current needs of other major users with nearly all of the cost of increased supply shouldered by those users. The second scenario involves the addition of increased demand, whether it is another industrial user, processing plant, or an expansion of any of the existing plants currently served by Great Plains Natural Gas. In this situation, the cost of the supply project would be spread among existing and new users, but it would still result in a substantial increase for current users if the solution were to provide for future needs of the community.

To further complicate the situation, Cargill has less than four years remaining on their lease with ProGold. Any new pipeline would take approximately two years to build, which means Cargill could not and ProGold LLC would not guarantee payment for the cost of construction.

Meanwhile, we are all aware that over 20% of natural gas resulting from oil development in western ND is being flared. It would seem that the State of ND has an interest in the future of the ProGold plant, the community of Wahpeton and others like it. Hopefully, we can engage them in finding a solution to this dilemma.

2020 Annual Delivery Election Decision

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2020 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 second 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 2019, 27% of bushels were delivered by members directly to the plant.

2020 Incentive Payments and Agency Fees
Incentive Payments and Agency Fees for Method A and Method B Pool participation will remain the same for 2020. 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.

GGC Board Approves Distribution of $0.14/Unit

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On September 12th, the Golden Growers Board of Directors approved a distribution of $2,168,667 to members of record as of October 1, 2019. This distribution retires the remaining portion of 2017 allocated income and a portion of 2018 allocated income. Total 2018 allocated income was $7,811,471 or roughly $0.504/bushel. In combination with the February and June distributions, a total of $6,691,887 has been issued to members in 2019.

As previously mentioned, the GGC Board believes it is important to build a reserve during the course of this new lease for several reasons that include likely capital expenditures at the plant, and the potential for Cargill to exercise its option to purchase 50% interest in ProGold. This distribution authorized by the Board will result in a remaining equity credit balance for 2018 of $3,378,802.