Since converting to a Minnesota cooperative association under Minnesota Statute 308B on September 1, 2009, the corn delivery procedures have been simplified for most members.
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 your agent to acquire and deliver corn on your 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 make their annual choice on their Annual Delivery Agreement. These agreements are mailed to every member in October each year, and members have until December 15 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 you wish to change your delivery commitment from one year to the next, you may do so by returning a new Annual Delivery Agreement to Golden Growers on or before December 15 for the year beginning January 1. You cannot change your delivery commitment in mid-year.
If you choose Method A you are required to physically deliver the number of bushels you indicated you would on the Annual Delivery Agreement between January 1 and December 31. You 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 your October letter offering members the opportunity to change their corn delivery method (Annual Delivery Agreement) for the next fiscal year.
Deliveries in excess of your 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 member is unable to deliver his/her/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 your behalf in this case. Penalties for non-delivery include 10¢ per bushel plus any cost to Golden Growers created by the shortfall, and members will not receive partnership distributions or Incentive Payments for bushels committed to Method A but not delivered.
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.
If you choose Method B you are appointing Golden Growers Cooperative as your agent to acquire and deliver corn on your behalf. No advance payment for corn is required. You will be charged 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.