Every member has an annual delivery commitment of one bushel per ownership Unit.
Members may choose to deliver by Method A (physical delivery of corn to Cargill on behalf of Golden Growers) or Method B (appointing Golden Growers as their agent to acquire and deliver corn on their behalf). Members may also split their delivery commitment between Methods A and B, as long as their total commitment equals the number of Units in the cooperative they own.
Members may elect to change their delivery method on an annual basis. Annual Delivery Agreements are mailed to every member in October each year, and members have until December 15th to return them to the cooperative. Annual Delivery Agreements are effective from January 1 through December 31 each year. Your commitment to either Method A or B (or a combination of each) is binding on you for the calendar year, so it is important to mark your agreement carefully.
If a Member wishes to change their delivery commitment from one year to the next, they may do so by returning a new Annual Delivery Agreement to Golden Growers on or before December 15th for the year beginning January 1. Once a member’s delivery method has been determined, they may not change their delivery commitment in mid-year.
If a Member chooses Method A Pool Participation, they are required to physically deliver the number of bushels they indicated on the Annual Delivery Agreement between January 1 and December 31. Members are expected to contact Cargill at 1-800-266-6732 to arrange a delivery schedule and pricing. Bushels delivered by Method A are entitled to an Incentive Payment. The Incentive established by action of the Board of Directors is 5¢ per bushel. Incentive payment policies are determined annually by the Board of Directors. Members will be notified each year in the fall of the Incentive Payment amount for the next fiscal year. Generally, incentive payment policies will be outlined in an October letter offering members the opportunity to change their corn delivery method (Annual Delivery Agreement) for the next fiscal year.
Golden Growers Cooperative’s (GGC) Grain Services Agreement with Cargill includes the following provisions:
- Cargill is appointed by GGC as its grain buying agent to receive, make payments for, and report Method A corn deliveries. (Payments for delivered corn will be issued directly from Cargill.)
- ‘Affiliated Persons’ may deliver for a Method A Pool Participant. Affiliated Persons include 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; or 4) Are an entity in which 50% ownership is by an immediate family member(s) of the Member.
- Note: ‘Familial relationship’ and ‘immediate family member’ includes brothers, sisters, spouse, ancestors (parents, grandparents) and lineal descendants (children, grandchildren).
- Cargill may pay Affiliated Persons for corn delivered on behalf of the Method A Pool Participant.
- Note: If a person is not considered ‘affiliated’ delivers on behalf of a Member, Cargill will pay the Member directly.
Deliveries in excess of a Member’s Golden Growers bushel commitment (one bushel per ownership Unit) are NOT entitled to receive cash allocations or distributions, nor Incentive Payments. Incentive payments will be included in partnership distributions paid following the fiscal year to which they apply.
If a Method A Pool Participant is unable to deliver their own corn to fulfill the annual delivery commitment, that member is still expected to complete the delivery. It may be necessary to contact an elevator or another corn producer to deliver corn on their behalf. Delivery shortfalls will be subject to a $0.10/bushel Purchased Corn Fee; a $0.12/bushel agency fee; and the loss of the incentive payment on undelivered bushels.
Failure to complete an annual delivery commitment is a violation of the bylaws, the Uniform Member Agreement, and the Annual Delivery Agreement, and as such could result in the termination of a Member’s rights as a member of the cooperative.
Members who chose Method B Pool Participation are appointing Golden Growers Cooperative as their agent to acquire and deliver corn on their behalf. No advance payment for corn is required. Method B Pool Participants will be charged a 2¢ per bushel Agency Fee, which will be deducted from partnership distributions paid following the fiscal year to which they apply. Like the Incentive Payments for Method A deliveries, the Agency Fee amount is subject to change annually by board action.