Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024
Commission file number: 000-53957

Golden Growers Cooperative
(Exact name of registrant as specified in its charter)

Minnesota	27-1312571
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1002 Main Avenue West, Suite 5 West Fargo, ND 58078
(Address of principal executive offices)

Telephone Number 701-281-0468
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒

No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒

No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Act).

YES ☐

NO ☒

As of May 13, 2024 the Cooperative had 15,490,480 Units issued and outstanding.

GOLDEN GROWERS COOPERATIVE

FORM 10-Q

INDEX

PART I. FINANCIAL INFORMATION		1
	Item 1. Financial Statements	1
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	12
	Item 4. Controls and Procedures	12
PART II. OTHER INFORMATION		11
	Item 1.Legal Proceedings	11
	Item 1A.Risk Factors	11
	Item 2.Unregistered Sales of Equity Securities and Use of Proceeds	12
	Item 3. Defaults Upon Senior Securities	12
	Item 4. Mine Safety Disclosures	12
	Item 5.Other Information	12
	Item 6.Exhibits	13
SIGNATURES		14

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GROWERS COOPERATIVE
CONDENSED BALANCE SHEETS
(In Thousands)

		March 31, 2024			December 31, 2023
		(Unaudited)			(Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	904		$	2,097
Short-Term Investments		4,686			4,548
Other Current Assets		97			318
Total Current Assets		5,687			6,963

Long-Term Investments		2,731			2,788
Investment in ProGold LLC		16,676			17,073

Total Assets	$	25,094		$	26,824

LIABILITIES AND MEMBERS’ EQUITY

Current Liabilities
Accounts Payable	$	—		$	—
Accrued Liabilities		6			421
Commitments and Contingencies		—			—
Total Current Liabilities		6			421

Non-Current Liabilities		—			—

Total Liabilities	$	6		$	421

Commitments and contingencies (Note 9)

Members' Equity:
Members’ Equity Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of March 31, 2024 and December 31, 2023		25,124			26,436

Accumulated Other Comprehensive Income (Loss)		(36	)		(33	)

Total Members’ Equity		25,088			26,403

Total Liabilities and Members’ Equity	$	25,094		$	26,824

See Notes to Condensed Financial Statements

GOLDEN GROWERS COOPERATIVE

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In Thousands, Other Than Share and Per-Share Data) (Unaudited)


		Three Months Ended
		March 31, 2024			March 31, 2023
OPERATIONS
Corn Revenue	$	18,143		$	31,283
Corn Expense		(18,154	)		(31,297	)
Net Income from ProGold LLC		1,593			1,605
General & Administrative Expenses		(215	)		(210	)

Net Income from Operations		1,367			1,381

Other Income		109			92

Net Income Before Income Tax	$	1,476		$	1,473

Net Income	$	1,476		$	1,473


Weighted Average Shares/Units Outstanding		15,490,480			15,490,480

Earnings per Share/Membership Unit
Primary and Fully Diluted	$	0.10		$	0.10


		Three Months Ended
		March 31, 2024			March 31, 2023
COMPREHENSIVE INCOME
Net Income	$	1,476		$	1,473
Unrealized Gain (Loss) on Investments, Net		(3	)		5

Comprehensive Income	$	1,473		$	1,478

See Notes to Condensed Financial Statements

GOLDEN GROWERS COOPERATIVE

STATEMENTS OF CHANGES IN MEMBERS’ EQUITY
(In Thousands)
(Unaudited)

		Total
		Members'
		Equity
BALANCE December 31, 2022	$	27,654
Net income		1,473
Unrealized gain on investments		5
Distributions to Members		(2,478	)
BALANCE March 31, 2023	$	26,654

BALANCE December 31, 2023	$	26,403
Net income		1,476
Unrealized (loss) on investments		(3	)
Distributions to Members		(2,788	)
BALANCE March 31, 2024	$	25,088

See Notes to Condensed Financial Statements

GOLDEN GROWERS COOPERATIVE
CONDENSED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)


		Three Months Ended
		March 31, 2024			March 31, 2023

Cash Flows from Operating Activities
Net Income	$	1,476		$	1,473
Net (Income) from ProGold LLC		(1,593	)		(1,605	)
Changes in assets and liabilities
Other Current Assets		221			212
Accrued liabilities and payables		(415	)		(198	)
Net Cash Used in Operating Activities		(311	)		(118	)

Cash Flows from Investing Activities
(Purchase) of investments		(1,820	)		(58	)
Proceeds from investments		1,736			—
Distribution received from ProGold LLC		1,990			1,929

Net Cash Provided in Investing Activities		1,906			1,871

Cash Flows from Financing Activities
Member distributions paid		(2,788	)		(2,478	)
Net Cash Used by Financing Activities		(2,788	)		(2,478	)

Increase (Decrease) in Cash and Cash Equivalents		(1,193	)		(725	)

Cash and Cash Equivalents, Beginning of Period		2,097			2,146

Cash and Cash Equivalents, End of Period	$	904		$	1,421


Unrealized Gain (Loss) on Investments	$	(3	)	$	5

See Notes to Condensed Financial Statements

GOLDEN GROWERS COOPERATIVE
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

NOTE 1 – BASIS OF PRESENTATION

The condensed financial statements of Golden Growers Cooperative (the “Cooperative”) for the three-month periods ended March 31, 2024 and 2023 are unaudited and reflect all adjustments consisting of normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed financial statements should be read in conjunction with the financial statements and notes thereto, contained in the Cooperative’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The results of operations for the three-month period ended March 31, 2024 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2024.

NOTE 2 – EXPENSES

The Cooperative contracts with Cargill, Incorporated (“Cargill”) in connection with the procurement of corn and other agency services for an annual fee of $60,000, which is paid by the Cooperative to Cargill in quarterly 4 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold Limited Liability Company (“ProGold LLC”). Effective March 1, 2022, the term of the Facility Lease was extended through December 31, 2026.

NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY

Prior to March 1, 2022, the Cooperative and American Crystal Sugar Company (“American Crystal”) held a 49% and 51% interest in ProGold LLC, respectively. On March 1, 2022, pursuant to an Option Agreement by and between Cargill and American Crystal, and a Consent Agreement by and among the Cooperative, Cargill, and American Crystal, each effective January 1, 2018, Cargill purchased a 50% interest in ProGold LLC from American Crystal, while the Cooperative purchased the remaining 1% of ProGold LLC held by American Crystal. As a result of these transactions, the Cooperative and Cargill each hold a 50% interest in ProGold LLC. Please refer to Part I, Item 2 of this Quarterly Report on Form 10-Q for more information regarding the Cooperative’s ownership interest in ProGold LLC. Following is summary financial information for ProGold LLC, which was derived from the March 31st unaudited and December 31st audited financial statements of ProGold LLC: 0% 0%


		March 31,			December 31,
(In Thousands)		2024		2023		2023

Current Assets	$	197	$	209	$	201
Long-Term Assets		33,201		35,840		33,945
Total Assets	$	33,398	$	36,049	$	34,146

Current Liabilities	$	45	$	29	$	—
Long-Term Liabilities		—		—		—
Total Liabilities		45		29		0

Members’ Equity		33,353		36,020		34,146

Total Liabilities and Members’ Equity	$	33,398	$	36,049	$	34,146

Rent Revenue on Operating Lease	$	3,952	$	3,953	$	15,810
Expenses		766		743		3,641

Net Income	$	3,186	$	3,210	$	12,169

NOTE 4 – INVESTMENTS

The Cooperative has determined fair value of its investments based on Level 2 inputs (in thousands):

March 31, 2024:		Level 1		Level 2		Level 3		Total
Corporate Bonds - Held to Maturity	$	—	$	6,570	$	—	$	6,570
Fixed Income Funds - Available for Sale		—		691		—		691
Money Market & CD’s		—		128		—		128
	$	—	$	7,389	$	—	$	7,389

December 31, 2023:
Corporate Bonds - Held to Maturity	$	—	$	6,030	$	—	$	6,030
Fixed Income Funds - Available for Sale		—		685		—		685
Money Market & CD’s		—		601		—		601
	$	—	$	7,316	$	—	$	7,316

Maturities of corporate bonds are as follows as of March 31, 2024 (in thousands):

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,867	$	3,865
Due in 2 to 5 years		2,401		2,392
Greater than 5 years		330		313
	$	6,598	$	6,570

The Cooperative’s investments are as follows as of March 31, 2024 and December 31, 2023 (in thousands):

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2024:
Corporate Bonds - Held to Maturity	$	6,598	$	21	$	(49	)	$	6,570
Fixed Income Funds - Available for Sale		727		—		(36	)		691
Money Market & CD’s		128		—		—			128
	$	7,453	$	21	$	(85	)	$	7,389


December 31, 2023:
Corporate Bonds - Held to Maturity	$	6,050	$	30	$	(50	)	$	6,030
Fixed Income Funds - Available for Sale		718		—		(33	)		685
Money Market & CD’s		601		—		—			601
	$	7,369	$	30	$	(83	)	$	7,316

The following table shows the gross unrealized losses and fair value of the Cooperative’s securities with unrealized losses that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2024 and December 31, 2023.


		Less than 12 Months					More than 12 Months
				Unrealized					Unrealized
March 31, 2024:		Fair Value		Losses			Fair Value		Losses
Corporate Bonds - Held to Maturity	$	1,960	$	(12	)	$	1,073	$	(37	)
Fixed Income Funds		—		—			488		(36	)
	$	1,960	$	(12	)	$	1,561	$	(73	)

December 31, 2023:
Corporate Bonds - Held to Maturity	$	1,037	$	(18	)	$	1,433	$	(32	)
Fixed Income Funds		201		(1	)		484		(32	)
	$	1,238	$	(19	)	$	1,917	$	(64	)

The Cooperative establishes an allowance for credit losses on debt securities where the fair value is less than the amortized cost basis to the extent the unrealized loss is due to credit losses. The expected credit losses are presented as loss on investments in the accompanying statement of operations. The Cooperative’s process for establishing the allowance for credit losses considers the risk characteristics of the security class. To the extent possible, losses are estimated collectively for classes of securities with similar risk characteristics. For securities that do not share similar risk characteristics with others, the losses are estimated individually. For available-for-sale debt securities, losses are estimated at the individual security level. The Cooperative’s allowance for credit losses are influenced by a variety of factors, including portfolio credit quality and general economic conditions. General economic conditions are forecasted using economic variables which will create volatility as those variables change over time. The Cooperative’s allowance for credit losses on it’s held to maturity securities and its available for sale securities was not significant as of March 31, 2024 and December 31, 2023. The Cooperative did not recognize any credit losses on its held to maturity securities and available for sale securities for the periods ended March 31, 2024 and December 31, 2023.

NOTE 5 – EMPLOYEE BENEFIT PLANS

Pension Plan – In December 2012, the Cooperative approved a change to freeze the Cooperative’s defined benefit plan as of January 1, 2013. As a result, no additional benefits will accrue to participants in the plan and no new employees are eligible for the plan.

In December 2022, the Cooperative approved a resolution to terminate the plan on March 31, 2023. The process of terminating the plan includes the purchase of annuities from the assets of the plan to satisfy payment of vested benefits to participants as prescribed by the Pension Benefit Guarantee Corporation’s standard termination process. As of December 31, 2022, the pension plan was funded as required by the funding standards set forth by the Employee Retirement Income Security Act (“ERISA”). In February 2024, in connection with the termination process for the Cooperative’s pension plan, an annuity was purchased using plan assets at a cost of approximately $625,000.

The Cooperative anticipates that the process of terminating the plan will conclude in June 2024.

The plan’s fair value and benefit obligation will vary over time as a result of changes in market interest rates, the life expectancy of plan participants, and benefit payments. As of December 31, 2023, the plan had a total fair value of $694,000 and a benefit obligation of $680,000. As of December 31, 2022, the plan had a total fair value of $704,000 and a benefit obligation of $636,000.

NOTE 6 – REVENUE RECOGNITION

The Cooperative derives revenue from two sources: operations related to the marketing of members’ corn and income derived from the Cooperative’s membership interest in ProGold LLC. The Cooperative recognizes revenue from its corn marketing operations equal to the value of the corn that is delivered to Cargill and certain purchased corn and agency fees paid by members.

Identify Contracts with Customers

Annually, the Cooperative is required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold LLC wet-milling facility. To fulfill that requirement, the Cooperative’s members are contractually obligated to annually deliver corn to the Cooperative by either Method A or Method B or a combination of both. Under Method A, a member is required to physically deliver corn to the Cooperative and under Method B a member appoints the Cooperative as its agent to arrange for the acquisition and delivery of corn on the member’s behalf. The Cooperative contractually appoints Cargill as its agent to arrange for the delivery of the corn by its members who elect to deliver corn using Method A and to acquire corn on its behalf for its members who elect to deliver corn using Method B. In exchange for these services, the Cooperative pays an annual fee of $60,000, paid in quarterly installments. 4

Performance Obligations

Members who deliver corn under Method A are paid the market price or contracted price for their corn at the time of delivery, as well as an incentive payment of $.05 per bushel. Cargill pays the aggregate purchase price for corn purchased from the Cooperative’s members to the Cooperative and then, on the Cooperative’s behalf, makes individual payments for corn and incentive payments directly to the Cooperative’s members. In the event a member who has elected to deliver corn by Method A delivers to Cargill less than its committed amount of corn, the quantity of the shortfall is then purchased and delivered by Cargill on the Cooperative’s behalf. The purchase price is equal to the average price reported for Method A corn for the final month of the year. In addition, the Method A member with a shortfall will be charged a purchased corn fee and agency fee determined by the Cooperative’s Board of Directors. The aggregate purchase price for corn purchased from the Cooperative’s members, plus any applicable purchased corn fee and agency fee comprise Method A corn revenue. At the end of each month, Cargill reports the number of Method A bushels delivered and the average daily price paid for corn that Cargill purchased from Members on the Cooperative’s behalf. The product of the number of bushels delivered multiplied by the average monthly market price is reported as Method A corn expense. The incentive payment is also a component of Method A corn expense.

Members who elect Method B to deliver corn pay the Cooperative a $.02 per bushel agency fee for the cost of having the Cooperative deliver corn on their behalf. Cargill acquires the corn as the Cooperative’s agent. Method B corn revenue will be equal to the price paid by Cargill to acquire the corn from the Cooperative, plus the member agency fee. Corn expense for Method B deliveries will be the weighted average price for Method A corn during the quarter multiplied by the number of Method B bushels purchased during the quarter.

Variable Consideration

The Cooperative’s Board of Directors has the discretion to change the member incentive payment, purchased corn and agency fees based on the Cooperative’s corn delivery needs. The Cargill agency fee is also a component of corn expense.

Significant Judgments

The evaluation of contracts with customers, performance obligations, and variable consideration requires significant judgment. The decision to combine contracts or separate a combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period.

For the three-month periods ended March 31, 2024 and 2023, the Cooperative recognized corn revenue of $18.1 million and $31.3 million, respectively. Disaggregated revenue for the three-month periods ended March 31, 2024 and 2023 is as follows: revenue from Method A deliveries totaled $6.5 million and $12.8 million, respectively; and revenue from Method B deliveries totaled $11.6 million and $18.5 million, respectively.

NOTE 7 – DISTRIBUTIONS TO MEMBERS

On February 27, 2024, the Cooperative made distributions to its members totaling $2,788,286 or $0.18 per outstanding membership unit. On February 24, 2023, the Cooperative made distributions to its members totaling $2,478,477 or $0.16 per outstanding membership unit.

NOTE 8 – LINE OF CREDIT

The Cooperative has a $2,000,000 line of credit with a variable interest rate based on Prime minus 0.5%, which was 8.00% as of March 31, 2024. This line of credit matures on October 16, 2024. The line of credit is secured by the investment management agency account for the Cooperative maintained by Bell Bank. There was no outstanding balance as of March 31, 2024 or December 31, 2023.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Cooperative contracts with Cargill in connection with the procurement of corn and other agency services for an annual fee of $60,000, which is paid by the Cooperative to Cargill in quarterly 4 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold LLC, as amended, which terminates on December 31, 2026.

NOTE 10 – SUBSEQUENT EVENTS

The Cooperative has evaluated events through the date the financial statements were issued for potential recognition or disclosure in the March 31, 2024 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2024 financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

The following discussion and analysis should be read in conjunction with the financial statements and notes thereto included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited financial statements and related notes thereto and Item 7, Management’s Discussion and Analysis of Financial Conditions and Results of Operations, included in the Cooperative’s Annual Report Form on 10-K for the fiscal year ended December 31, 2023. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements include, among others, those statements including the words “expect”, “anticipate”, “believe”, “may” and similar expressions. The Cooperative’s actual results or actions could and likely will differ materially from those anticipated in the forward-looking statements for many reasons, including but not limited to: (i) the impact of the Cooperative’s joint ownership interest in ProGold LLC following Cargill’s acquisition of a 50% interest in ProGold LLC; (ii) fluctuations in the market price per bushel of corn, including as a result of global armed conflicts, severe weather events and other natural conditions, changes to supply and demand, or other factors; (iii) the impact of severe weather events and other natural conditions on ProGold LLC’s facility or operations and/or Members’ choice of delivery method; (iv) the effect of inflation as well as general economic conditions; (v) our expectations with respect to accessing our current debt facility or any other debt facility or other capital sources in the future; (vi) our beliefs regarding the adequacy of our cash on hand to fund working capital and other general corporate expenses; and (vii) other factors described from time to time in the Cooperative’s Securities and Exchange Commission filings. The Cooperative does not intend to update the forward-looking statements contained in this Quarterly Report on Form 10-Q other than as required by law and qualifies all of its forward-looking statements by these cautionary statements.

Overview

Golden Growers Cooperative is a value-added agricultural cooperative association governed under Minnesota Statutes Chapter 308B. The Cooperative is owned by 1,472 members and is in the business of providing value to its members by facilitating their delivery of corn to the corn wet-milling facility owned by ProGold Limited Liability Company (“ProGold LLC”), a Minnesota limited liability company in which the Cooperative and Cargill Incorporated (“Cargill”) each own a 50% membership interest. The Cooperative accomplishes its business on behalf of its members through its contractual relationships with all of the parties involved in the ownership and operation of the facility. Annually, the Cooperative is required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold LLC facility.

Ownership in ProGold. From an income production perspective, the Cooperative’s membership interest inProGold LLC is its primary asset that, in addition to giving the Cooperative the right to receive distributions from ProGold LLC, also provides the Cooperative’s members with additional value for the delivery of their corn for processing. Prior to March 1, 2022, the Cooperative and American Crystal Sugary Company (“American Crystal”) owned a 49% and 51% interest in ProGold LLC, respectively. In connection with its interest in ProGold LLC, the Cooperative has the right and obligation to deliver corn for processing at the wet-milling facility. On April 4, 2017, the Cooperative, Cargill, and American Crystal entered into a Consent Agreement, effective on January 1, 2018 (the “Consent Agreement”), relating to the lease of ProGold LLC’s wet-milling facility to Cargill and the Cooperative’s interest in ProGold LLC. On the same day, Cargill and American Crystal entered into an Option Agreement, effective January 1, 2018 (the “Option Agreement”), detailing the price, term and other conditions under which American Crystal granted to Cargill an exclusive option (the “Option”) to purchase a 50% interest in ProGold LLC from American Crystal during the first four years of the lease. Under the Consent Agreement, the Cooperative approved and consented to the transfer of the 50% interest in ProGold LLC from American Crystal to Cargill in the event Cargill exercised its option. The Cooperative also secured the right to purchase American Crystal’s remaining 1% interest in ProGold LLC for a base price ranging from $1.3 million to $1.7 million, depending on when Cargill notified American Crystal of its intention to exercise the Option. The Cooperative would also be required to pay to American Crystal a capital adjustment in an amount equal to 1% of the portion of costs that had not been paid by Cargill to ProGold LLC through additional rent with respect to certain projects at the facility.

On February 25, 2022, Cargill exercised its Option under the Option Agreement to purchase a 50% interest in ProGold LLC from American Crystal. Simultaneously with the exercise of the Option, the Cooperative, pursuant to the Consent Agreement, elected to purchase American Crystal’s remaining 1% interest in ProGold LLC. As a result of these transactions, effective March 1, 2022, the Cooperative and Cargill each own a 50% interest in ProGold LLC.

In connection with the Option exercise, the Cooperative, Cargill and ProGold LLC entered into that certain ProGold Limited Liability Company Agreement (the “Operating Agreement”), effective March 1, 2022, in order to set forth the structure, governance and operation of ProGold LLC according to certain operational principles and other guidelines described in the Consent Agreement. Beginning March 1, 2022, the Cooperative is allocated 50% of the profits and losses of ProGold LLC and is entitled to receive 50% of any cash that is distributed to ProGold LLC’s members.

For more information relating to the Cooperative’s ownership interest in ProGold LLC, please refer to Part I, Item 1 of the Cooperative’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

ProGold Facility Lease. ProGold LLC leases its corn wet milling facility to Cargill, which uses the facility to process corn into high fructose corn syrup. In connection with the Option exercise, ProGold LLC and Cargill entered into that certain First Amendment to Second Amended and Restated Facility Lease, effective March 1, 2022, which extended the term of the Facility Lease through December 31, 2026.

Membership and Delivery Obligations. Any person residing in the United States can own membership units of the Cooperative (“Units”) as long as that person delivers or provides for the delivery of corn for processing at the ProGold LLC facility. Ownership of Units requires members to deliver bushels of corn to the Cooperative for processing in proportion to the number of Units each member holds. Currently, 15,490,480 Units are issued and outstanding. The Cooperative’s income and losses are allocated to its members based on the volume of corn they deliver. Subject to certain limitations, as long as a member patronizes the Cooperative by delivering one (1) bushel of corn for each Unit held by the member, the member will be allocated a corresponding portion of the Cooperative’s income (or loss). In this way, the Cooperative operates on a cooperative basis.

To hold Units, a member is required to execute a Uniform Member Agreement that obligates the member to deliver corn to the Cooperative and an Annual Delivery Agreement by which each member annually elects the member’s method to deliver corn - either Method A or Method B, or a combination of both. Under Method A, a member is required to physically deliver the required bushels of corn to the Cooperative either at the facility or another location designated by the Cooperative. Under Method B, a member appoints the Cooperative as its agent to arrange for the acquisition and delivery of the required bushels of corn on the member’s behalf. The Cooperative appoints Cargill as its agent to arrange for the delivery of the corn by members who elect to deliver corn using Method A, and the Cooperative appoints Cargill as its agent to acquire corn on the Cooperative’s behalf for members who elect to deliver corn using Method B. If a member elects to deliver corn using Method B, the price per bushel the Cooperative pays to the member is equal to the price per bushel paid by Cargill to acquire the corn as its agent. Members who deliver corn under Method A are paid the market price or contracted price for their corn at the time of delivery. Members who deliver corn under Method A also receive from the Cooperative an incentive payment of $.05 per bushel on the corn that they deliver while members who elect Method B to deliver corn pay to the Cooperative a $.02 per bushel agency fee for the cost of having the Cooperative deliver corn on their behalf. The incentive payment for Method A deliveries and the agency fee for Method B deliveries are subject to annual adjustment at the sole discretion of the Cooperative’s Board of Directors. While the Cooperative is financially responsible for the various payments to the members for corn, Cargill, serving as the Cooperative’s administrative agent, issues payments to members for corn on the Cooperative’s behalf.

Annually, the Cooperative notifies Cargill of the number of bushels of Method A corn to be delivered by each member who has elected to deliver corn by Method A. Once the Cooperative provides notification to Cargill of the number of bushels of corn, Cargill then confirms the amount of corn with each member and notifies that member with respect to quality specifications, allowances, deductions and premiums to be applicable to that corn. The member with a Method A corn commitment then directly contracts with Cargill for corn delivered by Method A. At the end of each month, Cargill reports the number of Method A bushels delivered and the average daily price paid for corn that Cargill purchased from members on the Cooperative’s behalf. The product of the number of bushels delivered multiplied by the average monthly market price is reported as Method A corn expense. In the event a member who has elected to deliver corn by Method A delivers to Cargill more than its delivery commitment, any corn delivered in excess of that commitment is handled as a direct sale of corn to Cargill. In the event a member who has elected to deliver corn by Method A delivers to Cargill less than its committed amount of corn, the quantity of the shortfall is then purchased and delivered by Cargill on our behalf. The purchase price is equal to the average price reported for Method A corn for the final month of the year. In addition, the Method A member with a shortfall will be charged a purchased corn fee and agency fee determined by the Cooperative’s Board of Directors.

Cargill then purchases the remainder of the corn to be delivered by the Cooperative on behalf of the Method B delivering members at such time and in such quantities as it deems appropriate and in the best interest of the Cooperative and Cargill. The Cooperative notifies Cargill of the number of Method B bushels to be purchased during the quarter. Cargill will certify to the Cooperative that it has purchased the necessary Method B bushels. The price paid will be the weighted average price for Method A corn during the quarter multiplied by the number of Method B bushels. Method B corn revenue will be equal to the price paid. The Cooperative’s Fourth Amended and Restated Bylaws (“Bylaws”) establish a Method A delivery pool and a Method B delivery pool. Generally, the Cooperative’s income and/or losses are allocated annually based on the percentage of bushels of corn the members elect to deliver using either Method A or Method B. Regardless of the actual percentage allocation between the members who deliver bushels of corn using Method A or Method B, the Bylaws require the Cooperative to annually allocate at least 15% of its income and/or losses to the Method A pool. The amount of our income and/or losses actually allocated to the Method A pool is a percentage equal to the greater of 15% or the actual percentage of bushels of corn delivered by members using Method A.

For fiscal year 2024, members elected to deliver 26.6% of their corn by Method A and 73.4% of their corn by Method B. This election will result in 26.6% of the Cooperative’s income and/or losses and 26.6% of any cash distributions being allocated to the Method A pool in fiscal year 2024, which reflects the actual percentage of corn members elected to deliver using Method A and does not result in reallocation to meet the 15% requirement set forth in the Cooperative’s Bylaws.

Results of Operations

Revenues. The Cooperative derives revenue from two sources: operations related to the marketing of members’ corn and income derived from the Cooperative’s membership interest in ProGold LLC. The corn marketing operations generate revenue for the Cooperative equal to the value of the corn that is delivered to Cargill. The Cooperative recognizes expense equal to this same amount, which results in the corn marketing operations being revenue neutral to the Cooperative, except for revenue from the Method B agency fee and expenses related to the Method A incentive payments and the service fee paid to Cargill.

For the three-month period ended March 31, 2024, the Cooperative sold approximately 4.4 million bushels of corn compared to approximately 4.7 million bushels of corn sold during the three-month period ended March 31, 2023. For the three-month period ended March 31, 2024, the members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility approximately 1.6 million bushels of corn using Method A and 2.8 million bushels of corn using Method B. In the same period in 2023, its members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility 1.9 million bushels of corn using Method A and 2.8 million bushels of corn using Method B.

For the three-month period ended March 31, 2024, the Cooperative recognized corn revenue of $18,143,000 compared to $31,283,000 during the same period in 2023, a decrease of 42% for the first quarter due primarily to a decrease in the price per bushel of corn sold year to date in 2024 compared to 2023.

Expenses. The Cooperative recognized corn expense of $18,154,000 and $31,297,000 for the three-month period ended March 31, 2024 and 2023 respectively, a decrease of 42% for the first quarter due primarily to a decrease in the price per bushel of corn purchased in 2024 compared to 2023.

The Cooperative recognized expense of $15,000 for the three-month periods ended March 31, 2024 and 2023 in connection with costs incurred to Cargill related to the Cooperative’s corn marketing operation.

Income from ProGold LLC. The Cooperative derived income from ProGold LLC for the three-month periods ended March 31, 2024 and 2023 of $1,593,000 and $1,605,000, respectively, a decrease of 1% for the first quarter. The decrease is primarily due to an increase in ProGold’s administrative expenses in 2024 compared to 2023.

General and Administrative Expenses. The Cooperative’s general and administrative expenses include salaries and benefits, professional fees and fees paid to its Board of Directors. The general and administrative expenses for the three-month period ended March 31, 2024 was $215,000, compared to $210,000 during the same respective period in 2023.

Other Income. Interest income for the three-month period ended March 31, 2024 was $109,000 compared to $92,000 during the same period in 2023. The increase in other income relates to increased interest rate yields on corporate bonds.

Liquidity and Capital Resources

The Cooperative’s working capital at March 31, 2024 was $5,681,000 compared to $6,556,000 at March 31, 2023. The decreased working capital at the end of the first quarter of fiscal 2024 as compared to the end of the first quarter of 2023 is primarily related to increased cash distributed to members and more bonds classified as longer term investments. The Cooperative received cash distributions from ProGold LLC totaling $1,990,000 for the three-month period ended March 31, 2024 compared to $1,929,000 for the three-month period ended March 31, 2023. The increase in ProGold cash distributions is related to increased lease income.

In fiscal year 2018, the Cooperative invested a portion of its cash reserves in bonds. To ensure that the Cooperative would have access to cash if needed before the maturity of the bonds, the Cooperative also established a $2,000,000 line of credit at a variable interest rate based on the prime rate. The line of credit will terminate on October 16, 2024. The line of credit is secured by the investment management agency account for the Cooperative maintained by Bell Bank. There was no outstanding balance as of March 31, 2024 or December 31, 2023.

The Cooperative had no long-term debt as of March 31, 2024 and March 31, 2023 and used operating cash flows of $311,000 for the three-month period ended March 31, 2024 compared to used operating cash flows of $118,000 for the three-month period ended March 31, 2023. The increase in use of operating cash flows for the three-month period ended March 31, 2024 compared to the three-month period ended March 31, 2023 is primarily due to increased method A incentive fees paid in 2024 compared to 2023.

Management believes that non-cash working capital levels, together with the Cooperative’s cash and cash equivalents, are appropriate in the current business environment and does not expect a significant increase or reduction of non-cash working capital in the next 12 months. Management expects that the Cooperative’s cash and cash equivalents, together with available borrowings under the line of credit, will be sufficient to fund its operations for the foreseeable future, including at least the next twelve months.

Significant Accounting Estimates and Policies

The Cooperative generally does not pay out Method A incentive payments or collect Method B agency fees until the end of its fiscal year. The total annual Method B agency fee was determinable once the members completed their delivery method determination prior to January 1, 2024. The quarterly Method B bushel delivery and agency fee revenue is calculated by allocating the portion of the total annual agency fee for that particular quarter or cumulating it for the particular period. The Cooperative tracks Method A corn deliveries throughout the year so it can report the bushels of corn delivered by its members as well as the corresponding Method A incentive fees earned. The final amounts owed by or due to Cargill and/or the Cooperative’s members who elect to deliver using Method A is not calculated until after December 31 in order to account for any failures to deliver, or over-deliveries, of corn.

The Cooperative’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, of the Notes to the Financial Statements in the Cooperative’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Cooperative’s critical accounting estimates are discussed in Item 7, Management’s Discussion and Analysis of Financial Conditions and Results of Operations, in the Cooperative’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There have been no other significant changes in the Cooperative’s significant accounting policies or critical accounting estimates since December 31, 2023.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, the Cooperative is not required to provide disclosure pursuant to this item.

Item 4. Controls and Procedures

The Cooperative’s Chief Executive Officer and Chief Financial Officer has reviewed and evaluated the effectiveness of the Cooperative’s disclosure controls and procedures (as defined in Rules 240.13a -15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934) as of March 31, 2024. Based on that review and evaluation, the Chief Executive Officer and Chief Financial Officer has concluded that the Cooperative’s current disclosure controls and procedures, as designed and implemented, are effective and provide reasonable assurance that information relating to the Cooperative required to be disclosed in the reports the Cooperative files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, including ensuring that such information is accumulated and communicated to the Cooperative’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There were no changes in the Cooperative’s internal controls over financial reporting that occurred during the Cooperative’s most recent fiscal quarter that may have materially affected, or are reasonably likely to materially affect, the Cooperative’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

As a smaller reporting company, the Cooperative is not required to provide disclosure pursuant to this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information.

During the three months ended March 31, 2024, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of

Regulation S-K.

Item 6. Exhibits

Exhibit No.		Exhibit Description

31.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act Rule 17 CFR 13a-14(a) – filed herewith.

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 – filed herewith.

101		The following materials from this report, formatted in iXBRL (Inline Extensible Business Reporting Language)are filed herewith: (i) balance sheets, (ii) statements of operations and comprehensive income, (iii) statements of cash flows, and (iv) the notes to the financial statements.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GOLDEN GROWERS COOPERATIVE
	(Registrant)

Date: May 14, 2024	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President,
	Chief Financial Officer
	Duly Authorized Officer

Exhibit 31.1

CERTIFICATION PURSUANT TO 17 CFR 240.13(a) -14(a)
(SECTION 302 CERTIFICATION)

I, Scott Stofferahn, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Golden Growers Cooperative (the registrant);

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a- 15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has mat erially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s audito rs and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	GOLDEN GROWERS COOPERATIVE


May 14, 2024	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President, Chief Executive Officer and
	Chief Financial Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Golden Growers Cooperative (the “Company”) for the fiscal quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott Stofferahn, Executive Vice President, serving as Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	GOLDEN GROWERS COOPERATIVE


May 14, 2024	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President, Chief Executive Officer and
	Chief Financial Officer

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 13, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-53957
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	0001489874
Entity Tax Identification Number	27-1312571
Entity Incorporation, State or Country Code	MN
Entity Address, Address Line One	1002 Main Avenue West
Entity Address, Address Line Two	Suite 5
Entity Address, City or Town	West Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58078
City Area Code	701
Local Phone Number	281-0468
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,490,480

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and Cash Equivalents	$ 904	$ 2,097
Short-Term Investments	4,686	4,548
Other Current Assets	97	318
Total Current Assets	5,687	6,963
Long-Term Investments	2,731	2,788
Investment in ProGold LLC	16,676	17,073
Total Assets	25,094	26,824
Current Liabilities
Accounts Payable
Accrued Liabilities	6	421
Commitments and Contingencies
Total Current Liabilities	6	421
Non-Current Liabilities
Total Liabilities	6	421
Members' Equity:
Members’ Equity Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of March 31, 2024 and December 31, 2023	25,124	26,436
Accumulated Other Comprehensive Income (Loss)	(36)	(33)
Total Members’ Equity	25,088	26,403
Total Liabilities and Members’ Equity	$ 25,094	$ 26,824

CONDENSED BALANCE SHEETS (Parenthetical) - shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Membership Units, Authorized	60,000,000	60,000,000
Membership Units, Issued	15,490,480	15,490,480
Membership Units, Outstanding	15,490,480	15,490,480

CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
OPERATIONS
Corn Revenue	$ 18,143	$ 31,283
Corn Expense	(18,154)	(31,297)
Net Income from ProGold LLC	1,593	1,605
General & Administrative Expenses	(215)	(210)
Net Income from Operations	1,367	1,381
Other Income	109	92
Net Income Before Income Tax	1,476	1,473
Net Income	$ 1,476	$ 1,473
Weighted Average Shares/Units Outstanding	15,490,480	15,490,480
Earnings per Share/Membership Unit
Primary and Fully Diluted	$ 0.10	$ 0.10

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
COMPREHENSIVE INCOME
Net Income	$ 1,476	$ 1,473
Unrealized Gain (Loss) on Investments, Net	(3)	5
Comprehensive Income	$ 1,473	$ 1,478

STATEMENTS OF CHANGES IN MEMBERS' EQUITY $ in Thousands	Common Stock [Member] USD ($)
Beginning balance, value at Dec. 31, 2022	$ 27,654
Net income	1,473
Unrealized (loss) on investments	5
Distributions to Members	(2,478)
Ending balance, value at Mar. 31, 2023	26,654
Beginning balance, value at Dec. 31, 2023	26,403
Net income	1,476
Unrealized (loss) on investments	(3)
Distributions to Members	(2,788)
Ending balance, value at Mar. 31, 2024	$ 25,088

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities
Net Income	$ 1,476	$ 1,473
Net (Income) from ProGold LLC	(1,593)	(1,605)
Changes in assets and liabilities
Other Current Assets	221	212
Accrued liabilities and payables	(415)	(198)
Net Cash Used in Operating Activities	(311)	(118)
Cash Flows from Investing Activities
(Purchase) of investments	(1,820)	(58)
Proceeds from investments	1,736
Distribution received from ProGold LLC	1,990	1,929
Net Cash Provided in Investing Activities	1,906	1,871
Cash Flows from Financing Activities
Member distributions paid	(2,788)	(2,478)
Net Cash Used by Financing Activities	(2,788)	(2,478)
Increase (Decrease) in Cash and Cash Equivalents	(1,193)	(725)
Cash and Cash Equivalents, Beginning of Period	2,097	2,146
Cash and Cash Equivalents, End of Period	904	1,421
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Unrealized Gain (Loss) on Investments	$ (3)	$ 5

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

EXPENSES

3 Months Ended

Mar. 31, 2024

Other Income and Expenses [Abstract]

EXPENSES

NOTE 2 – EXPENSES

PROGOLD LIMITED LIABILITY COMPANY

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

PROGOLD LIMITED LIABILITY COMPANY

NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY


		March 31,			December 31,
(In Thousands)		2024		2023		2023

Current Assets	$	197	$	209	$	201
Long-Term Assets		33,201		35,840		33,945
Total Assets	$	33,398	$	36,049	$	34,146

Current Liabilities	$	45	$	29	$	—
Long-Term Liabilities		—		—		—
Total Liabilities		45		29		0

Members’ Equity		33,353		36,020		34,146

Total Liabilities and Members’ Equity	$	33,398	$	36,049	$	34,146

Rent Revenue on Operating Lease	$	3,952	$	3,953	$	15,810
Expenses		766		743		3,641

Net Income	$	3,186	$	3,210	$	12,169

INVESTMENTS

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

NOTE 4 – INVESTMENTS

The Cooperative has determined fair value of its investments based on Level 2 inputs (in thousands):

March 31, 2024:		Level 1		Level 2		Level 3		Total
Corporate Bonds - Held to Maturity	$	—	$	6,570	$	—	$	6,570
Fixed Income Funds - Available for Sale		—		691		—		691
Money Market & CD’s		—		128		—		128
	$	—	$	7,389	$	—	$	7,389

December 31, 2023:
Corporate Bonds - Held to Maturity	$	—	$	6,030	$	—	$	6,030
Fixed Income Funds - Available for Sale		—		685		—		685
Money Market & CD’s		—		601		—		601
	$	—	$	7,316	$	—	$	7,316

Maturities of corporate bonds are as follows as of March 31, 2024 (in thousands):

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,867	$	3,865
Due in 2 to 5 years		2,401		2,392
Greater than 5 years		330		313
	$	6,598	$	6,570

The Cooperative’s investments are as follows as of March 31, 2024 and December 31, 2023 (in thousands):

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2024:
Corporate Bonds - Held to Maturity	$	6,598	$	21	$	(49	)	$	6,570
Fixed Income Funds - Available for Sale		727		—		(36	)		691
Money Market & CD’s		128		—		—			128
	$	7,453	$	21	$	(85	)	$	7,389


December 31, 2023:
Corporate Bonds - Held to Maturity	$	6,050	$	30	$	(50	)	$	6,030
Fixed Income Funds - Available for Sale		718		—		(33	)		685
Money Market & CD’s		601		—		—			601
	$	7,369	$	30	$	(83	)	$	7,316


		Less than 12 Months					More than 12 Months
				Unrealized					Unrealized
March 31, 2024:		Fair Value		Losses			Fair Value		Losses
Corporate Bonds - Held to Maturity	$	1,960	$	(12	)	$	1,073	$	(37	)
Fixed Income Funds		—		—			488		(36	)
	$	1,960	$	(12	)	$	1,561	$	(73	)

December 31, 2023:
Corporate Bonds - Held to Maturity	$	1,037	$	(18	)	$	1,433	$	(32	)
Fixed Income Funds		201		(1	)		484		(32	)
	$	1,238	$	(19	)	$	1,917	$	(64	)

EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 5 – EMPLOYEE BENEFIT PLANS

The Cooperative anticipates that the process of terminating the plan will conclude in June 2024.

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 6 – REVENUE RECOGNITION

Identify Contracts with Customers

Performance Obligations

Variable Consideration

Significant Judgments

DISTRIBUTIONS TO MEMBERS

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

DISTRIBUTIONS TO MEMBERS

NOTE 7 – DISTRIBUTIONS TO MEMBERS

LINE OF CREDIT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

LINE OF CREDIT

NOTE 8 – LINE OF CREDIT

COMMITMENTS AND CONTINGENCIE

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIE

NOTE 9 – COMMITMENTS AND CONTINGENCIES

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

PROGOLD LIMITED LIABILITY COMPANY (Tables)

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Financial Information for ProGold LLC


		March 31,			December 31,
(In Thousands)		2024		2023		2023

Current Assets	$	197	$	209	$	201
Long-Term Assets		33,201		35,840		33,945
Total Assets	$	33,398	$	36,049	$	34,146

Current Liabilities	$	45	$	29	$	—
Long-Term Liabilities		—		—		—
Total Liabilities		45		29		0

Members’ Equity		33,353		36,020		34,146

Total Liabilities and Members’ Equity	$	33,398	$	36,049	$	34,146

Rent Revenue on Operating Lease	$	3,952	$	3,953	$	15,810
Expenses		766		743		3,641

Net Income	$	3,186	$	3,210	$	12,169

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Fair Value of Investments Held to Maturity Based on Level 2 Inputs

March 31, 2024:		Level 1		Level 2		Level 3		Total
Corporate Bonds - Held to Maturity	$	—	$	6,570	$	—	$	6,570
Fixed Income Funds - Available for Sale		—		691		—		691
Money Market & CD’s		—		128		—		128
	$	—	$	7,389	$	—	$	7,389

December 31, 2023:
Corporate Bonds - Held to Maturity	$	—	$	6,030	$	—	$	6,030
Fixed Income Funds - Available for Sale		—		685		—		685
Money Market & CD’s		—		601		—		601
	$	—	$	7,316	$	—	$	7,316

Schedule of Bond Maturities

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,867	$	3,865
Due in 2 to 5 years		2,401		2,392
Greater than 5 years		330		313
	$	6,598	$	6,570

Schedule of Investments Held to Maturity

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2024:
Corporate Bonds - Held to Maturity	$	6,598	$	21	$	(49	)	$	6,570
Fixed Income Funds - Available for Sale		727		—		(36	)		691
Money Market & CD’s		128		—		—			128
	$	7,453	$	21	$	(85	)	$	7,389


December 31, 2023:
Corporate Bonds - Held to Maturity	$	6,050	$	30	$	(50	)	$	6,030
Fixed Income Funds - Available for Sale		718		—		(33	)		685
Money Market & CD’s		601		—		—			601
	$	7,369	$	30	$	(83	)	$	7,316

Schedule of Unrealized Loss on Investments


		Less than 12 Months					More than 12 Months
				Unrealized					Unrealized
March 31, 2024:		Fair Value		Losses			Fair Value		Losses
Corporate Bonds - Held to Maturity	$	1,960	$	(12	)	$	1,073	$	(37	)
Fixed Income Funds		—		—			488		(36	)
	$	1,960	$	(12	)	$	1,561	$	(73	)

December 31, 2023:
Corporate Bonds - Held to Maturity	$	1,037	$	(18	)	$	1,433	$	(32	)
Fixed Income Funds		201		(1	)		484		(32	)
	$	1,238	$	(19	)	$	1,917	$	(64	)

EXPENSES (Details Narrative)	3 Months Ended
EXPENSES (Details Narrative)	Mar. 31, 2024 USD ($) Installment
Other Income and Expenses [Abstract]
Annual Contractual Payments to Cargill to Arrange for Delivery of The Corn and Other Agency Services \| $	$ 60,000
Number Of Installments \| Installment	4
Service Contract Maturity Date	Dec. 31, 2026

Schedule of Financial Information for ProGold LLC (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Current Assets	$ 197	$ 209	$ 201
Long-Term Assets	33,201	35,840	33,945
Total Assets	33,398	36,049	34,146
Current Liabilities	45	29
Total Liabilities	45	29	0
Members’ Equity	33,353	36,020	34,146
Total Liabilities and Members’ Equity	33,398	36,049	34,146
Rent Revenue on Operating Lease	3,952	3,953	15,810
Expenses	766	743	3,641
Net Income	$ 3,186	$ 3,210	$ 12,169

PROGOLD LIMITED LIABILITY COMPANY (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Long-Term Liabilities		$ 0
Cooperative
Equity Method Investment, Ownership Percentage Prior to Acquisition	49.00%
Equity Method Investment,Ownership Percentage After Acquisition	50.00%
Percentage of Ownership Acquired	1.00%
American Crystal Sugar Company
Equity Method Investment, Ownership Percentage Prior to Acquisition	51.00%
Equity Method Investment,Ownership Percentage After Acquisition	0.00%
Cargill
Equity Method Investment,Ownership Percentage After Acquisition	50.00%
Equity Method Investment, Ownership Percentage Prior to Acquisition	0.00%

Schedule of Fair Value of Investments Held to Maturity Based on Level 2 Inputs (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Fair Value	$ 7,389	$ 7,316
Corporate Bond Securities [Member]
Schedule of Investments [Line Items]
Fair Value	6,570	6,030
Fixed Income Funds [Member]
Schedule of Investments [Line Items]
Fair Value	691	685
Money Market Funds [Member]
Schedule of Investments [Line Items]
Fair Value	128	601
Fair Value, Inputs, Level 2 [Member]
Schedule of Investments [Line Items]
Fair Value	7,389	7,316
Fair Value, Inputs, Level 2 [Member] \| Corporate Bond Securities [Member]
Schedule of Investments [Line Items]
Fair Value	6,570	6,030
Fair Value, Inputs, Level 2 [Member] \| Fixed Income Funds [Member]
Schedule of Investments [Line Items]
Fair Value	691	685
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Schedule of Investments [Line Items]
Fair Value	$ 128	$ 601

Schedule of Bond Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract]
Due in 1 year or less	$ 3,867
Due in 2 to 5 years	2,401
Due in 6 to 10 years	330
Total	6,598
Debt Securities, Held-to-Maturity, Fair Value, Maturity [Abstract]
Due in 1 year or less	3,865
Due in 2 to 5 years	2,392
Due in 6 to 10 years	313
Total	$ 6,570

Schedule of Investments Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Amortized Cost	$ 7,453	$ 7,369
Unrealized Gains	21	30
Unrealized Losses	(85)	(83)
Fair Value	7,389	7,316
Corporate Bond Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	6,598	6,050
Unrealized Gains	21	30
Unrealized Losses	(49)	(50)
Fair Value	6,570	6,030
Fixed Income Funds [Member]
Schedule of Investments [Line Items]
Amortized Cost	727	718
Unrealized Losses	(36)	(33)
Fair Value	691	685
Money Market Funds [Member]
Schedule of Investments [Line Items]
Amortized Cost	128	601
Fair Value	$ 128	$ 601

Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Fair Value, Less than 12 Months	$ 1,960	$ 1,238
Unrealized Loss, Less than 12 Months	(12)	(19)
Fair Value,More than 12 Months	1,561	1,917
Unrealized Loss, More than 12 Months	(73)	(64)
Corporate Bond Securities [Member]
Schedule of Investments [Line Items]
Fair Value, Less than 12 Months	1,960	1,037
Unrealized Loss, Less than 12 Months	(12)	(18)
Fair Value,More than 12 Months	1,073	1,433
Unrealized Loss, More than 12 Months	(37)	(32)
Fixed Income Funds [Member]
Schedule of Investments [Line Items]
Fair Value, Less than 12 Months		201
Unrealized Loss, Less than 12 Months		(1)
Fair Value,More than 12 Months	488	484
Unrealized Loss, More than 12 Months	$ (36)	$ (32)

EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($)	3 Months Ended
EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Defined Benefit Plan, Plan Assets, Payment for Settlement	$ 625,000
Defined Benefit Plan, Plan Assets, Amount		$ 694,000	$ 704,000
Defined Benefit Plan, Benefit Obligation		$ 680,000	$ 636,000

REVENUE RECOGNITION (Details Narrative)	3 Months Ended
REVENUE RECOGNITION (Details Narrative)	Mar. 31, 2024 USD ($) Installment bu $ / bu	Mar. 31, 2023 USD ($)
Disaggregation of Revenue [Line Items]
Annual Delivery of Bushels of Corn \| bu	15,490,480
Annual Cooperative Fee for Corn Delivery	$ 60,000
Number Of Installments \| Installment	4
Incentive Payment Per Bushel To Members On Delivery Of Corn Under Method A \| $ / bu	0.05
Agency Fee Per Bushel for Corn Delivered Using Method B \| $ / bu	0.02
Revenues	$ 18,143,000	$ 31,283,000
Method A
Disaggregation of Revenue [Line Items]
Revenues	6,500,000	12,800,000
Method B
Disaggregation of Revenue [Line Items]
Revenues	$ 11,600,000	$ 18,500,000

DISTRIBUTIONS TO MEMBERS (Details Narrative) - USD ($)	Feb. 27, 2024	Feb. 24, 2023
Equity [Abstract]
Distributions to Members	$ 2,788,286	$ 2,478,477
Distribution To Members Per Outstanding Membership Unit	$ 0.18	$ 0.16

LINE OF CREDIT (Details Narrative) - USD ($)	3 Months Ended
LINE OF CREDIT (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000
Line of Credit Interest Rate Equals Prime Minus 0.50%	0.50%
Line of Credit Facility, Interest Rate During Period	8.00%
Long-Term Line of Credit	$ 0	$ 0

COMMITMENTS AND CONTINGENCIE (Details Narrative)	3 Months Ended
COMMITMENTS AND CONTINGENCIE (Details Narrative)	Mar. 31, 2024 USD ($) Installment
Commitments and Contingencies Disclosure [Abstract]
Annual Contractual Payments to Cargill to Arrange for Delivery of The Corn and Other Agency Services \| $	$ 60,000
Number Of Installments \| Installment	4
Significant Supply Contracts Termination	The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold LLC, as amended, which terminates on December 31, 2026.

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