Starting in 2022, a $75 Printed Check Administrative Fee for Members NOT Enrolled in Direct Deposit.

Direct Deposit was first utilized in October of 2017 with 250 members participating (16%). Over the past four years, we have had steady growth in participation with 1,343 members enrolled (89.6%) for the October payment. Participants have been pleased with the timely, seamless, and secure process for receipt of distributions. They also receive a mailed letter explaining the payment for their records.  Due to the success of Direct Deposit and the reduced administrative costs associated with it, the Board determined that all members will need to participate by January 1 of 2023.

Golden Growers will be mailing an enrollment letter to non-participating members in December explaining the change in policy and encouraging participation prior to January Method A payment and the February distribution. You can enroll earlier by completing the reverse side of your distribution payment letter.

On September 16th, the Golden Growers Board of Directors approved a distribution of $2,013,762 to members of record as of October 1, 2021. This distribution retires a portion of 2019 allocated income. In combination with the February and June distributions, a total of $6,041,286 has been issued to members in 2021.

Over the past few years, the GGC Board built a reserve in preparation for capital expenditures at the plant. In anticipation of capital expenses for the pre-dryer repair and the first phase of the distributive control system (DCS), ProGold has reduced distributions to Golden Growers. Golden Growers is able to continue distributions because the GGC Board built a reserve during the course of this lease.

This distribution authorized by the Board will result in a remaining equity credit balance for 2019 of $117,283 and a 2020 equity credit balance of 3,634,526 totaling $0.24/bushel. (Note: This balance does not constitute an outstanding obligation for GGC.)

Montana Dakota Utilities (MDU) announced plans to increase the supply of natural gas to the Wahpeton Community. This comes after several years of advocacy for a solution by Wahpeton city leaders, legislators, and industrial partners.

Presently, Wahpeton-Breckenridge is supplied by Great Plains Natural Gas (GPNG) through a 6-inch, high pressure natural gas pipeline that originates in Vergas, MN as an 8-inch pipe. (GPNG is a subsidiary of MDU.) From Fergus Falls, it is reduced to a 6-inch pipe that serves the Fergus Falls Green Plains ethanol plant and the Wahpeton-Breckenridge area. During high demand circumstances, industrial users are often forced to reduce or shut down operations. This lack of natural gas capacity has resulted in missed opportunities for industrial expansion in the area.

MDU will split service at the state line with Breckenridge being served by the existing pipeline. A new 12 inch pipeline will be constructed from Mapleton, ND to Wahpeton and serve residential and industrial users on North Dakota side of the river. In addition, a new rate structure will offer firm gas to industrial users at an increased cost that appears to be reasonably priced. These users, including the ProGold Plant, have agreed to a ten-year contract at the proposed rate. The contract, however, will not result in an extended obligation if, for some reason, operations would cease.

MDU anticipates the new supply pipeline could begin operations in the fall of 2024.

The Golden Growers Board of Directors would like to thank the City of Wahpeton, community leaders, and MDU for their continued efforts. In particular, we would like to thank Mayor Steve Dale and State Representative Alisa Mitskog for their tireless advocacy for a solution. We also extend our appreciation for the work of former MDU employee and Wahpeton’s natural gas consultant, David Yexley, whose assistance was key. Unfortunately, Mr. Yexley passed away in March.

This new natural gas line is a  very positive step for the long-term viability of the ProGold plant and allows for future expansion at the site.

Brian Jennings discussed ethanol production, demand, and policy issues in his guest presentation.

In 2020, we lost 700 million bushels of corn use for ethanol due to the pandemic. Domestic use dropped from over 14 Billion gallons in 2019 to just over 12 Billion gallons in 2020. “We are seeing a recovery in 2021, but don’t anticipate getting back to the pre-COVID levels in 2021 or even 2022.” After the bottom fell out of the domestic fuel market in March of 2020, there was a quick rebound by July to a level around 15 to 20% below normal. “Domestic demand has continued run at about a 15-20% reduction when compared to prior years,” said Jennings.

A change in administrations will have an impact on the ethanol industry. The Trump EPA can be summed up in two policy issues, one good and one bad. Under Trump’s EPA, E15 was approved for sale year-round across the U.S. Unfortunately, the same EPA granted nearly 90 small refinery waivers of the renewable fuels standard and eroded about 4 billion gallons of demand from statutory levels.

Biden campaigned aggressively against those waivers and has indicated that they will reverse course. The Biden EPA is focused on net-zero emissions by 2050. The question is, ‘What role will Ag and ethanol play?’ “We intend to go on offense. There is an opportunity to increase ethanol demand because corn ethanol GHG emissions are 50% cleaner than gasoline.” Jennings cautioned that they have work to do to convince some Biden officials of the value of corn ethanol.

Jennings addressed recent auto manufacturer announcements on electric vehicles (EVs). “In terms of supply, 97% of vehicles are internal combustion. Even the most aggressive projections on future sale of EVs will mean ethanol will play a significant role in reducing GHG well into the century.”

Golden Growers members re-elected Larry Vipond (South District) and Scott Jetvig (At-Large Director) at the 2021 Annual Meeting. Pursuant to bylaw changes approved in 2019, the total number of Board members has now been reduced to nine.

At the 2022 Annual Meeting, there will be three vacancies to fill as three additional board members reach their term limits. Members who have an interest in serving on the Board should either visit with current or former Board members and/or contact our Executive Vice-President, Scott Stofferahn.

“In the next two years, we will have four vacancies to fill as current directors reach their term limits. I really encourage members who have an interest in serving on the Board to talk to one of our Directors or call the office.” Stofferahn specifically mentioned that women members should consider running for the Board. “Since 1995, we have had only one woman director.”