UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended
Commission file number:
(Exact
name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices)
Telephone Number
(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.
| 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).
| 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 ☐ |
| 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 ☐ |
As of May 7, 2026 the Cooperative had Units issued and outstanding.
GOLDEN GROWERS COOPERATIVE
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
GOLDEN GROWERS COOPERATIVE
CONDENSED BALANCE
SHEETS
(In Thousands)
| March 31, 2026 | December 31, 2025 | |||||
| (Unaudited) | (Audited) | |||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and Cash Equivalents | $ | |
$ | |
||
| Short-Term Investments | ||||||
| Other Current Assets | ||||||
| Total Current Assets | ||||||
| Long-Term Investments | ||||||
| Investment in ProGold LLC | ||||||
| Total Assets | $ | |
$ | |
||
| LIABILITIES AND MEMBERS’ EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts Payable | $ | $ | ||||
| Accrued Liabilities | ||||||
| Total Current Liabilities | ||||||
| Commitments and contingencies (Note 9) | ||||||
| Members' Equity: | ||||||
| Members’ Equity | ||||||
|
Membership
Units, Authorized |
||||||
| Accumulated Other Comprehensive Income (Loss) | ( |
) | ( |
) | ||
| Total Members’ Equity | ||||||
| Total Liabilities and Members’ Equity | $ | |
$ | |
See Notes to Condensed Financial Statements
1
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, 2026 | March 31, 2025 | |||||
| OPERATIONS | ||||||
| Corn revenue | $ | |
$ | |
||
| Corn expense | ( |
) | ( |
) | ||
| Net income from ProGold LLC | ||||||
| General & administrative expenses | ( |
) | ( |
) | ||
| Net income from operations | ||||||
| Other income | ||||||
| Net income before income tax | $ | |
$ | |
||
| Net income | $ | |
$ | |
||
| Weighted average shares/units outstanding | ||||||
| Earnings per share/membership unit | ||||||
| Basic and fully diluted | $ | $ | ||||
| Three Months Ended | ||||||
| March 31, 2026 | March 31, 2025 | |||||
| COMPREHENSIVE INCOME | ||||||
| Net income | $ | |
$ | |
||
| Unrealized gain (loss) on investments, net | ( |
) | ||||
| Comprehensive income | $ | |
$ | |
||
See Notes to Condensed Financial Statements
2
GOLDEN GROWERS COOPERATIVE
STATEMENTS OF
CHANGES IN MEMBERS’ EQUITY
(In Thousands)
(Unaudited)
| Total | |||
| Members' Equity | |||
| BALANCE December 31, 2024 | $ | |
|
| Net income | |||
| Unrealized gain (loss) on investments | |||
| Distributions to members | ( |
) | |
| BALANCE March 31, 2025 | $ | |
|
| BALANCE December 31, 2025 | $ | |
|
| Net income | |||
| Unrealized gain (loss) on investments | ( |
) | |
| Distributions to members | ( |
) | |
| BALANCE March 31, 2026 | $ | |
GOLDEN GROWERS COOPERATIVE
CONDENSED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
| Three Months Ended | ||||||
| March 31, 2026 | March 31, 2025 | |||||
| Cash flows from operating activities | ||||||
| Net income | $ | |
$ | |
||
| Net (income) from ProGold LLC | ( |
) | ( |
) | ||
| Changes in assets and liabilities | ||||||
| Other current assets | ||||||
| Accrued liabilities and payables | ( |
) | ( |
) | ||
| Net cash provided by (used in) operating activities | ( |
) | ( |
) | ||
| Cash flows from investing activities | ||||||
| (Purchase) of investments | ( |
) | ( |
) | ||
| Proceeds from investments | ||||||
| Distribution received from ProGold LLC | ||||||
| Net cash provided by investing activities | ||||||
| Cash flows from financing activities | ||||||
| Member distributions paid | ( |
) | ( |
) | ||
| Net cash used by financing activities | ( |
) | ( |
) | ||
| Increase (decrease) in cash and cash equivalents | ( |
) | ( |
) | ||
| Cash and cash equivalents, beginning of period | ||||||
| Cash and cash equivalents, end of period | $ | |
$ | |
||
| Supplemental schedule of non-cash financing and investing activity | ||||||
| Unrealized gain (loss) on investments | $ | $ | ||||
See Notes to Condensed Financial Statements
3
GOLDEN GROWERS COOPERATIVE
NOTES TO CONDENSED
FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND
2025
NOTE 1 – BASIS OF PRESENTATION
The condensed financial statements of Golden Growers Cooperative (the “Cooperative”) for the three-month periods ended March 31, 2026 and 2025 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, 2025. The results of operations for the three-month period ended March 31, 2026 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2026.
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 $
NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY
The Cooperative and Cargill each hold a
| March 31, | December 31, | ||||||||
| (In Thousands) | 2026 | 2025 | 2025 | ||||||
| Current assets | $ | |
$ | |
$ | |
|||
| Long-term assets | |||||||||
| Total assets | $ | |
$ | |
$ | |
|||
| Current liabilities | $ | — | $ | |
$ | |
|||
| Total liabilities | — | ||||||||
| Members’ equity | |||||||||
| Total liabilities and members’ equity | $ | |
$ | |
$ | |
|||
| Rent revenue on operating lease | $ | |
$ | |
$ | |
|||
| Expenses | |||||||||
| Net income | $ | |
$ | |
$ | |
|||
4
NOTE 4 – INVESTMENTS
The Cooperative has determined fair value of its investments based on Level 2 inputs (in thousands):
| March 31, 2026: | Level 1 | Level 2 | Level 3 | Total | ||||||||
| Corporate bonds - held to maturity | $ | — | $ | |
$ | — | $ | |
||||
| Fixed income funds - available for sale | — | — | ||||||||||
| Money market & CD’s | — | — | ||||||||||
| $ | — | $ | |
$ | — | $ | |
|||||
| December 31, 2025: | ||||||||||||
| Corporate bonds - held to maturity | $ | — | $ | |
$ | — | $ | |
||||
| Fixed income funds - available for sale | — | — | ||||||||||
| Money market & CD’s | — | — | ||||||||||
| $ | — | $ | |
$ | — | $ | |
Maturities of corporate bonds are as follows as of March 31, 2026 (in thousands):
| Net Carrying | Fair | |||||
| Amount | Value | |||||
| Due in 1 year or less | $ | |
$ | |
||
| Due in 2 to 5 years | - | - | ||||
| Greater than 5 years | ||||||
| $ | |
$ | |
The Cooperative’s investments are as follows as of March 31, 2026 and December 31, 2025 (in thousands):
| Amortized | Unrealized | Unrealized | ||||||||||
| Cost | Gains | Losses | Fair Value | |||||||||
| March 31, 2026: | ||||||||||||
| Corporate bonds - held to maturity | $ | |
$ | — | $ | ) | $ | |
||||
| Fixed income funds - available for sale | — | ) | ||||||||||
| Money market & CD’s | — | — | ||||||||||
| $ | |
$ | — | $ | ) | $ | |
|||||
| December 31, 2025: | ||||||||||||
| Corporate bonds - held to maturity | $ | |
$ | |
$ | ) | $ | |
||||
| Fixed income funds - available for sale | — | ) | ||||||||||
| Money market & CD’s | — | — | ||||||||||
| $ | |
$ | |
$ | ) | $ | |
5
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, 2026 and December 31, 2025.
| Less than 12 Months | More than 12 Months | |||||||||||
| Unrealized | Unrealized | |||||||||||
| March 31, 2026: | Fair Value | Losses | Fair Value | Losses | ||||||||
| Corporate bonds - held to maturity | $ | — | $ | — | $ | |
$ | ) | ||||
| Fixed income funds | |
) | — | |||||||||
| $ | |
$ | ) | $ | |
$ | ) | |||||
| December 31, 2025: | ||||||||||||
| Corporate bonds - held to maturity | $ | — | $ | — | $ | |
$ | ) | ||||
| Fixed income funds | ) | ) | ||||||||||
| $ | |
$ | ) | $ | |
$ | ) | |||||
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 its held to maturity securities and its available for sale securities was not significant as of March 31, 2026 and December 31, 2025. 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, 2026 and December 31, 2025.
NOTE 5 – EMPLOYEE BENEFIT PLANS
401(k) Plan — The Cooperative has a 401(k) plan that covers employees that meet eligibility requirements.
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 $
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 $
6
Members who elect Method B to deliver corn pay the Cooperative
a $
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, 2026 and 2025, the Cooperative recognized corn revenue of million and million, respectively. Disaggregated revenue for the three-month periods ended March 31, 2026 and 2025 is as follows: revenue from Method A deliveries totaled million and million, respectively; and revenue from Method B deliveries totaled million and million, respectively.
NOTE 7 – DISTRIBUTIONS TO MEMBERS
On February 20, 2026, the Cooperative made distributions to its
members totaling $
NOTE 8 – LINE OF CREDIT
The Cooperative has a $
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 $
At its annual meeting in March 2025, the Cooperative’s members approved a Plan of Liquidation and Dissolution of the Cooperative (the “Plan”) that approved (i) the sale of the Cooperative’s 50% interest in ProGold LLC to Cargill within 30 days following expiration of the Facility Lease pursuant to the terms of the ProGold LLC Operating Agreement; and (ii) distribution of the proceeds of such sale, along with all other assets of the Cooperative, to the members. The Plan also grants the Cooperative’s Board of Directors authority to negotiate, execute and file all agreements, documents or instruments necessary to effect such liquidation and dissolution of the Cooperative. Following the approval, on March 27, 2025, the Cooperative filed a Notice of Intent to Dissolve with the Minnesota Secretary of State.
7
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, 2026 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2026 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, 2025. 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) the impact of Cargill’s announced plans to purchase the Cooperative’s 50% interest in ProGold following expiration of Cargill’s lease of the ProGold facility; (iii) the impact of our membership’s approval of the Plan of Liquidation and Dissolution and management’s subsequent filing of the Notice of Intent to Dissolve; (iv) 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; (v) the impact of severe weather events and other natural conditions on ProGold LLC’s facility or operations and/or Members’ choice of delivery method; (vi) the effect of inflation as well as general economic conditions; (vii) our expectations with respect to accessing our current debt facility or any other debt facility or other capital sources in the future; (viii) our beliefs regarding the adequacy of our cash on hand to fund working capital and other general corporate expenses; and (ix) 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 1,444 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 50% membership interest in ProGold 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.
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. Under the terms of the Operating Agreement, 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. The Operating Agreement also sets forth certain triggers under which Cargill agrees to purchase the Cooperative’s 50% membership interest in ProGold LLC. On December 20, 2024, the Cooperative and Cargill issued a joint press release announcing that Cargill will purchase the Cooperative’s 50% interest in ProGold within 30 days following expiration of the Facility Lease pursuant to the terms of the Operating Agreement. At the Cooperative’s 2025 Annual Member Meeting, members approved a Plan of Liquidation and Dissolution of the Cooperative providing for approval of the sale pursuant to the terms of the Operating Agreement and distribution of the proceeds of such sale, along with all other assets of the Cooperative, to the members. The Plan also grants the Cooperative’s Board of Directors authority to negotiate, execute and file all agreements, documents or instruments necessary to effect such liquidation and dissolution of the Cooperative. Following the approval, on March 27, 2025, the Cooperative filed a Notice of Intent to Dissolve with the Minnesota Secretary of State.
8
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, 2025.
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. 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 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.
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 is the weighted average price for Method A corn during the quarter multiplied by the number of Method B bushels. Method B corn revenue is equal to the price paid.
9
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 2026, members elected to deliver 24.4% of their corn by Method A and 75.6% of their corn by Method B. This election will result in 24.4% of the Cooperative’s income and/or losses and 23.4% of any cash distributions being allocated to the Method A pool in fiscal year 2026, 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, 2026, the Cooperative sold approximately 4.6 million bushels of corn compared to approximately 4.7 million bushels of corn sold during the three-month period ended March 31, 2025. For the three-month period ended March 31, 2026, the members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility approximately 1.7 million bushels of corn using Method A and 2.9 million bushels of corn using Method B. In the same period in 2025, its members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility 1.8 million bushels of corn using Method A and 2.9 million bushels of corn using Method B.
For the three-month period ended March 31, 2026, the Cooperative recognized corn revenue of $17,902,000 compared to $20,088,000 during the same period in 2025, a decrease of 11% for the first quarter due primarily to a decrease in the price per bushel of corn sold year to date in 2026 compared to 2025.
Expenses. The Cooperative recognized corn expense of $17,918,000 and $20,105,000 for the three-month period ended March 31, 2026 and 2025 respectively, a decrease of 11% for the first quarter due primarily to a decrease in the price per bushel of corn purchased in 2026 compared to 2025.
The Cooperative recognized expense of $15,000 for the three-month periods ended March 31, 2026 and 2025 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, 2026 and 2025 of $1,630,000 and $1,788,000, respectively, a decrease of 9% for the first quarter. The decrease is primarily due to a gain on a sale of a capital asset in 2025 compared to 2026.
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, 2026 was $232,000, compared to $258,000 during the same respective period in 2025. The decrease in general and administrative expenses is due to decreased legal, consulting, and accounting expenses in 2026 compared to 2025.
Other Income. Interest income for the three-month period ended March 31, 2026 was $40,000 compared to $82,000 during the same period in 2025. The decrease in other income relates to a reduction in the Cooperative’s investments.
10
Liquidity and Capital Resources
The Cooperative’s working capital at March 31, 2026 was $4,132,000 compared to $6,855,000 at March 31, 2025. The decreased working capital at the end of the first quarter of fiscal 2026 as compared to the end of the first quarter of 2025 is primarily related to a reduction in the Cooperative’s investments. The Cooperative received cash distributions from ProGold LLC totaling $1,979,000 for the three-month period ended March 31, 2026 compared to $1,994,000 for the three-month period ended March 31, 2025.
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, 2026. 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, 2026 or December 31, 2025.
The Cooperative had no long-term debt as of March 31, 2026 and March 31, 2025 and used operating cash flows of $42,000 for the three-month period ended March 31, 2026 compared to used operating cash flows of $150,000 for the three-month period ended March 31, 2025. The decrease in use of operating cash flows for the three-month period ended March 31, 2026 compared to the three-month period ended March 31, 2025 is primarily due to decreased payments of payables in 2026 compared to 2025.
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, 2026. 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, 2025. 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, 2025. There have been no other significant changes in the Cooperative’s significant accounting policies or critical accounting estimates since December 31, 2025.
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, 2026. 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.
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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, 2026, none of our directors or officers or 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 | |
| 3.1 |
Amended and Restated Articles of Organization of Golden Growers Cooperative is incorporated by reference to Exhibit 3.1 from the Cooperative’s Registration Statement on Form 10 filed April 30, 2010. | |
| 3.2 | Fourth Amended and Restated Bylaws of Golden Growers Cooperative dated March 23, 2023 is incorporated by reference to Exhibit 3.2 from the Cooperative’s Form 8-K filed March 29, 2023. | |
| 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) |
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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 8, 2026 | /s/ Scott Stofferahn |
| Scott Stofferahn | |
| Executive Vice President, | |
| Chief Financial Officer | |
| Duly Authorized Officer |
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