10-Q

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

FORM 10-Q

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

For the quarterly period ended March 31, 2021
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 [ X ] 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 [ X ] 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 [ X ]	Smaller reporting company [ X ]
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 [ X ]

As of May 07, 2021 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	7
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	10
Item 4.	Controls and Procedures	10
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	11
Item 3.	Defaults Upon Senior Securities	11
Item 4.	Mine Safety Disclosures	11
Item 5.	Other Information	11
Item 6.	Exhibits	11
SIGNATURES		12

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GOLDEN GROWERS COOPERATIVE
CONDENSED BALANCE SHEETS
(In Thousands)

		March 31, 2021		December 31, 2020
		(Unaudited)		(Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	2,974	$	3,547
Short-Term Investments		3,770		3,438
Other Current Assets		35		258
Total Current Assets		6,779		7,243
Long-Term Investments		1,440		1,743
Investment in ProGold Limited Liability Company		17,300		16,976
Total Assets	$	25,519	$	25,962
LIABILITIES AND MEMBERS’ EQUITY
Current Liabilities
Accounts Payable	$	—	$	2
Accrued Liabilities		1		202
Total Current Liabilities		1		204
Non-Current Liabilites		—		—
Members' Equity:
Members’ Equity      Membership Units, Authorized 60,000,000 Units, Issued and       Outstanding 15,490,480 as of March 31, 2021 and       December 31, 2020		25,518		25,758
Accumulated Other Comprehensive Income (Loss)		—		—
Total Members’ Equity		25,518		25,758
Total Liabilities and Members’ Equity	$	25,519	$	25,962

See Notes to Condensed Financial Statements

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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, 2021			March 31, 2020
OPERATIONS
Corn Revenue	$	23,501		$	14,743
Corn Expense		(23,515	)		(14,757	)
Net Income from ProGold Limited Liability Company		1,894			1,943
General & Administrative Expenses		(147	)		(171	)
Net Income from Operations		1,733			1,758
Other Income		41			50
Net Income Before Income Tax	$	1,774		$	1,808
Net Income	$	1,774		$	1,808
Weighted Average Shares/Units Outstanding		15,490,480			15,490,480
Earnings per Share/Membership Unit
Primary and Fully Diluted	$	0.11		$	0.12

		Three Months Ended
		March 31, 2021		March 31, 2020
COMPREHENSIVE INCOME
Net Income	$	1,774	$	1,808
Other Comprehensive Income (Loss), Net		—		(7	)
Comprehensive Income	$	1,774	$	1,801

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

See Notes to Condensed Financial Statements

		Three Months Ended
		March 31, 2021			March 31, 2020
Changes in Members' Equity
Balance, Beginning of the Period	$	25,758		$	26,379
Net Income		1,774			1,808
Pension Liability Adjustment		—			(7	)
Distributions to Members		(2,014	)		(2,168	)
Balance, End of the Period	$	25,518		$	26,012

See Notes to Condensed Financial Statements

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

		Three Months Ended
		March 31, 2021			March 31, 2020
Cash Flows from Operating Activities
Net Income	$	1,774		$	1,808
Net (Income) from ProGold Limited Liability Company		(1,894	)		(1,943	)
Changes in assets and liabilities
Other Current Assets		223			231
Accrued liabilities and payables		(203	)		(91	)
Net Cash Provided (Used) in Operating Activities		(100	)		5
Cash Flows from Investing Activities
(Purchase) Sale of investments		(29	)		(39	)
Distribution received from ProGold LLC		1,570			1,899
Net Cash Provided in Investing Activities		1,541			1,860
Cash Flows from Financing Activities
Member distributions paid		(2,014	)		(2,168	)
Net Cash Used by Financing Activities		(2,014	)		(2,168	)
Increase (Decrease) in Cash and Cash Equivalents		(573	)		(303	)
Cash and Cash Equivalents, Beginning of Year		3,547			3,228
Cash and Cash Equivalents, End of Year	$	2,974		$	2,925

See Notes to Condensed Financial Statements

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GOLDEN GROWERS COOPERATIVE
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

NOTE 1 – BASIS OF PRESENTATION

The condensed financial statements of Golden Growers Cooperative (the “Cooperative”) for the three-month period ended March 31, 2021 and 2020 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, 2020. The results of operations for the three-month period ended March 31, 2021 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2021.

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 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”), which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY

The Cooperative has a 49% ownership interest in ProGold LLC. Following is summary financial information for ProGold LLC, which was derived from the monthly unaudited financial statements of ProGold LLC:

		March 31,				December 31,
(In Thousands)		2021		2020		2020
Current Assets	$	241	$	211	$	216
Long-Term Assets		39,958		39,113		39,700
Total Assets	$	40,199	$	39,324	$	39,916
Current Liabilities	$	2,812	$	88	$	3,106
Long-Term Liabilities		2,083		2,292		2,167
Total Liabilities		4,895		2,380		5,273
Members’ Equity		35,304		36,944		34,643
Total Liabilities and Members’ Equity	$	40,199	$	39,324	$	39,916
Rent Revenue on Operating Lease	$	4,548	$	4,833	$	16,293
Expenses		682		867		4,179
Net Income	$	3,866	$	3,966	$	12,114

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NOTE 4 – INVESTMENTS

The Cooperative has determined fair value of its investments held to maturity based on Level 2 inputs.

March 31, 2021:		Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	5,275	$	—	$	5,275
Money Market & CD’s		—		15		—		15
	$	—	$	5,290	$	—	$	5,290
December 31, 2020:
Corporate Bonds	$	—	$	4,848	$	—	$	4,848
Money Market & CD’s		—		441		—		441
	$	—	$	5,289	$	—	$	5,289

Maturities are as follows as of March 31, 2021:

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,755	$	3,769
Due in 2 to 5 years		1,233		1,306
Greater than 5 years		207		200
	$	5,195	$	5,275

The Coopertive’s investments held to maturity are as follows as of March 31, 2021 and December 31, 2020:

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2021:
Corporate Bonds	$	5,195	$	88	$	(8	)	$	5,275
Money Market & CD’s		15		—		—			15
	$	5,210	$	88	$	(8	)	$	5,290
December 31, 2020:
Corporate Bonds	$	4,740	$	113	$	(5	)	$	4,848
Money Market & CD’s		441		—		—			441
	$	5,181	$	113	$	(5	)	$	5,289

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.

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, 2020, the plan had a total fair value of $935,000 and a benefit obligation of $752,000. For the same period in 2019, the plan had a total fair value of $844,000 and a benefit obligation of $784,000.

For the three month periods ended March 31, 2021 and 2020, the Cooperative made $0 in contributions. The Cooperative does not anticipate making a contribution in 2021. Contributions in 2020 totaled $1,000.

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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. 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.

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.

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. The price per bushel paid to such member is equal to the price per bushel paid by Cargill to acquire the corn as the Cooperative’s agent. Method B revenue will be equal to the price paid. The Cooperative has determined 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.

The incentive payment and agency fee are also a component of Corn Expense. The Cooperative’s Board of Directors has the discretion to change the incentive payment and the agency fee based on the Cooperative’s corn delivery needs.

For the three month periods ended March 31, 2021 and 2020, the Cooperative recognized corn revenue of $23.5 million and $14.7 million, respectively. Disaggregated revenue for the three month periods ended March 31, 2021 and 2020 is as follows: revenue from Method A deliveries totaled $9.0 million and $5.3 million, respectively; and revenue from Method B deliveries totaled $14.5 million and $9.4 million, respectively.

NOTE 7 – DISTRIBUTIONS TO MEMBERS

On February 26, 2021, the Cooperative made distributions to its members totaling $2,013,762, or $0.13 per outstanding membership unit. On February 14, 2020, the Cooperative made distributions to its members totaling $2,168,667 or $0.14 per outstanding membership unit.

NOTE 8 – LINE OF CREDIT

The Cooperative has a $2,000,000 line of credit with a variable interest rate. This line of credit matures October 16, 2022. The line of credit is secured by the investment management agency account for the Cooperative maintained by Bell Bank. There is no outstanding balance as of March 31, 2021 or December 31, 2020.

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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 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold LLC, which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

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, 2021 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2021 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 consolidated 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 on Form 10-K for the fiscal year ended December 31, 2020. 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 could differ materially from those indicated in the forward-looking statements for many reasons, including events beyond the Cooperative’s control and assumptions that prove to be inaccurate or unfounded. 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 minority ownership interest in ProGold; (ii) fluctuations in the market price per bushel of corn; (iii) the continued impact of the novel coronavirus (COVID-19); and (iv) 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 owned by 1,506 members 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 owns a 49% membership interest. ProGold LLC leases its corn wet milling facility to Cargill Incorporated (“Cargill”), which uses the facility to process corn into high fructose corn syrup. 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. From an income production perspective, the Cooperative’s 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. Annually, the Cooperative is required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold LLC facility.

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 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 corn equal to the number of Units 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 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.

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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 Second Amended and Restated Bylaws (“Bylaws”) establish a Method A delivery pool and a Method B delivery pool. Generally, The Cooprative’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 25% 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 25% or the actual percentage of bushels of corn delivered by members using Method A.

For fiscal year 2021, members elected to deliver 27% of their corn by Method A and members elected to deliver 73% of their corn by Method B. This election will result in 27% of the Cooperative’s income and/or losses and 27% of any cash distributions being allocated to the Method A pool in fiscal year 2021, which reflects the actual percentage of corn members elected to deliver using Method A and does not result in reallocation to meet the 25% requirement set forth in the Cooperative’s Bylaws.

Impact of COVID-19

The Cooperative continues to monitor the global outbreak of the novel coronavirus (COVID-19) and its impact on the Cooperative’s results of operations and financial condition. Demand for high fructose corn syrup in food service and entertainment sectors declined. Corn millers idled ethanol plants in response to a depressed demand for ethanol in 2020. Improved ethanol demand has resulted in increased production for 2021. With improving conditions for 2021, food service and entertainment sectors are likely to increase high fructose corn syrup demand as the year progresses. The ProGold facility currently continues to operate in the ordinary course and the Cooperative’s overall business has not been impacted; however, the Cooperative is unable to predict the long-term impact of COVID-19 on its business or the impact on the future operations of the ProGold facility.

8

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, 2021, the Cooperative sold approximately 4.6 million bushels of corn compared to approximately 4.4 million bushels of corn sold during the three-month period ended March 31, 2020. For the three-month period ended March 31, 2021, the members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility approximately 1.8 million bushels of corn using Method A and 2.8 million bushels of corn using Method B. In the same respective periods in 2020, its members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility 1.6 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, 2021, the Cooperative recognized corn revenue of $23,501,000 compared to $14,743,000 during the same period in 2020, an increase of 59% for the first quarter due primarily to an increase in the price per bushel of corn sold year to date in 2021 compared to 2020.

Expenses. The Cooperative recognized corn expense of $23,515,000 and $14,757,000 for the three-month period ended March 31, 2021 and 2020 respectively, an increase of 59% for the first quarter due primarily to an increase in the price per bushel of corn purchased in 2021 compared to 2020.

The Cooperative recognized expense of $15,000 for the three-month period ended March 31, 2021 and 2020 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 period ended March 31, 2021 and 2020 of $1,894,000 and $1,943,000, respectively, a decrease of 3% for the first quarter due primarily to an increase in ProGold LLC’s operating expenses in 2021 compared to 2020.

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, 2021 was $147,000, compared to $171,000 during the same respective period in 2020. The decrease in administrative expenses is primarily due to the timing of expenses.

Other Income. Interest income for the three-month period ended March 31, 2021 was $41,000 compared to $50,000 during the same period in 2020.

Liquidity and Capital Resources

The Cooperative’s working capital at March 31, 2021 was $6,778,000 compared to $5,232,000 at March 31, 2020. The increased working capital at the end of the first quarter of 2021 as compared to the same period in 2020 is primarily related to increased short-term investments as bonds no longer considered long term were reclassified as short term. The Cooperative received cash distributions from ProGold LLC totaling $1,570,000 for the three-month period ended March 31, 2021 compared to $1,899,000 for the three-month period ended March 31, 2020.

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, which line of credit terminates on October 16, 2022. 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, 2021 or December 31, 2020.

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The Cooperative had no long-term debt as of March 31, 2021 and March 31, 2020 and used operating cash flows of $100,000 for the three-month period ended March 31, 2021 compared to received operating cash flows of $5,000 for the three-month period ended March 31, 2020. The decrease in operating cash flows for the three-month period ended March 31, 2021 compared to the three-month period ended March 31, 2020 is primarily due to a change in timing of payments.

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, 2021. 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, 2020. 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, 2020. There have been no other significant changes in the Cooperative’s significant accounting policies or critical accounting estimates since December 31, 2020.

Off Balance Sheet Arrangements

None.

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, 2021. 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.

10

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.

None.

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 XBRL (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.

11

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 10, 2021	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President,
	Chief Financial Officer
	Duly Authorized Officer

12

EX-31.1

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 materially 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 10, 2021	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President, Chief Executive Officer and
	Chief Financial Officer

EX-32.1

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, 2021, 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 10, 2021	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President, Chief Executive Officer and
	Chief Financial Officer

XML

Cover - shares	3 Months Ended
	Mar. 31, 2021	May 07, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-53957
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	0001489874
Entity Incorporation, State or Country Code	MN
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

XML

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and Cash Equivalents	$ 2,974	$ 3,547
Short-Term Investments	3,770	3,438
Other Current Assets	35	258
Total Current Assets	6,779	7,243
Long-Term Investments	1,440	1,743
Investment in ProGold Limited Liability Company	17,300	16,976
Total Assets	25,519	25,962
Current Liabilities
Accounts Payable		2
Accrued Liabilities	1	202
Total Current Liabilities	1	204
Non-Current Liabilites
Members' Equity:
Members’ Equity Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of March 31, 2021 and December 31, 2020	25,518	25,758
Accumulated Other Comprehensive Income (Loss)
Total Members’ Equity	25,518	25,758
Total Liabilities and Members’ Equity	$ 25,519	$ 25,962

XML

CONDENSED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2021	Dec. 31, 2020
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

XML

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
OPERATIONS
Corn Revenue	$ 23,501	$ 14,743
Corn Expense	(23,515)	(14,757)
Net Income from ProGold Limited Liability Company	1,894	1,943
General & Administrative Expenses	(147)	(171)
Net Income from Operations	1,733	1,758
Other Income	41	50
Net Income Before Income Tax	1,774	1,808
Net Income	$ 1,774	$ 1,808
Weighted Average Shares/Units Outstanding	15,490,480	15,490,480
Earnings per Share/Membership Unit
Primary and Fully Diluted	$ 0.11	$ 0.12

XML

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
COMPREHENSIVE INCOME
Net Income	$ 1,774	$ 1,808
Other Comprehensive Income (Loss), Net		(7)
Comprehensive Income	$ 1,774	$ 1,801

XML

STATEMENTS OF CHANGES IN MEMBERS' EQUITY $ in Thousands	USD ($)
Beginning Balance at Dec. 31, 2019	$ 26,379
Increase (Decrease) in Stockholders' Equity
Net Income	1,808
Pension Liability Adjustment	(7)
Distributions to Members	(2,168)
Ending Balance at Mar. 31, 2020	26,012
Beginning Balance at Dec. 31, 2020	25,758
Increase (Decrease) in Stockholders' Equity
Net Income	1,774
Distributions to Members	(2,014)
Ending Balance at Mar. 31, 2021	$ 25,518

XML

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net Income	$ 1,774,000	$ 1,808,000
Net (Income) from ProGold Limited Liability Company	(1,894,000)	(1,943,000)
Changes in assets and liabilities
Other Current Assets	223,000	231,000
Accrued liabilities and payables	(203,000)	(91,000)
Net Cash Provided (Used) in Operating Activities	(100,000)	5,000
Cash Flows from Investing Activities
(Purchase) Sale of investments	(29,000)	(39,000)
Distribution received from ProGold LLC	1,570,000	1,899,000
Net Cash Provided in Investing Activities	1,541,000	1,860,000
Cash Flows from Financing Activities
Member distributions paid	(2,014,000)	(2,168,000)
Net Cash Used by Financing Activities	(2,014,000)	(2,168,000)
Increase (Decrease) in Cash and Cash Equivalents	(573,000)	(303,000)
Cash and Cash Equivalents, Beginning of Year	3,547,000	3,228,000
Cash and Cash Equivalents, End of Year	$ 2,974,000	$ 2,925,000

XML

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

The condensed financial statements of Golden Growers Cooperative (the “Cooperative”) for the three-month period ended March 31, 2021 and 2020 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, 2020. The results of operations for the three-month period ended March 31, 2021 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2021.

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EXPENSES

3 Months Ended

Mar. 31, 2021

Other Income and Expenses [Abstract]

EXPENSES

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 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”), which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

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PROGOLD LIMITED LIABILITY COMPANY

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

PROGOLD LIMITED LIABILITY COMPANY

NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY

The Cooperative has a 49% ownership interest in ProGold LLC. Following is summary financial information for ProGold LLC, which was derived from the monthly unaudited financial statements of ProGold LLC:

		March 31,				December 31,
(In Thousands)		2021		2020		2020
Current Assets	$	241	$	211	$	216
Long-Term Assets		39,958		39,113		39,700
Total Assets	$	40,199	$	39,324	$	39,916
Current Liabilities	$	2,812	$	88	$	3,106
Long-Term Liabilities		2,083		2,292		2,167
Total Liabilities		4,895		2,380		5,273
Members’ Equity		35,304		36,944		34,643
Total Liabilities and Members’ Equity	$	40,199	$	39,324	$	39,916
Rent Revenue on Operating Lease	$	4,548	$	4,833	$	16,293
Expenses		682		867		4,179
Net Income	$	3,866	$	3,966	$	12,114

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INVESTMENTS

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

NOTE 4 – INVESTMENTS

The Cooperative has determined fair value of its investments held to maturity based on Level 2 inputs.

March 31, 2021:		Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	5,275	$	—	$	5,275
Money Market & CD’s		—		15		—		15
	$	—	$	5,290	$	—	$	5,290
December 31, 2020:
Corporate Bonds	$	—	$	4,848	$	—	$	4,848
Money Market & CD’s		—		441		—		441
	$	—	$	5,289	$	—	$	5,289

Maturities are as follows as of March 31, 2021:

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,755	$	3,769
Due in 2 to 5 years		1,233		1,306
Greater than 5 years		207		200
	$	5,195	$	5,275

The Coopertive’s investments held to maturity are as follows as of March 31, 2021 and December 31, 2020:

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2021:
Corporate Bonds	$	5,195	$	88	$	(8	)	$	5,275
Money Market & CD’s		15		—		—			15
	$	5,210	$	88	$	(8	)	$	5,290
December 31, 2020:
Corporate Bonds	$	4,740	$	113	$	(5	)	$	4,848
Money Market & CD’s		441		—		—			441
	$	5,181	$	113	$	(5	)	$	5,289

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EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

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.

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, 2020, the plan had a total fair value of $935,000 and a benefit obligation of $752,000. For the same period in 2019, the plan had a total fair value of $844,000 and a benefit obligation of $784,000.

For the three month periods ended March 31, 2021 and 2020, the Cooperative made $0 in contributions. The Cooperative does not anticipate making a contribution in 2021. Contributions in 2020 totaled $1,000.

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REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

REVENUE RECOGNITION

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. 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.

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.

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. The price per bushel paid to such member is equal to the price per bushel paid by Cargill to acquire the corn as the Cooperative’s agent. Method B revenue will be equal to the price paid. The Cooperative has determined 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.

The incentive payment and agency fee are also a component of Corn Expense. The Cooperative’s Board of Directors has the discretion to change the incentive payment and the agency fee based on the Cooperative’s corn delivery needs.

For the three month periods ended March 31, 2021 and 2020, the Cooperative recognized corn revenue of $23.5 million and $14.7 million, respectively. Disaggregated revenue for the three month periods ended March 31, 2021 and 2020 is as follows: revenue from Method A deliveries totaled $9.0 million and $5.3 million, respectively; and revenue from Method B deliveries totaled $14.5 million and $9.4 million, respectively.

XML

DISTRIBUTIONS TO MEMBERS

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

DISTRIBUTIONS TO MEMBERS

NOTE 7 – DISTRIBUTIONS TO MEMBERS

On February 26, 2021, the Cooperative made distributions to its members totaling $2,013,762, or $0.13 per outstanding membership unit. On February 14, 2020, the Cooperative made distributions to its members totaling $2,168,667 or $0.14 per outstanding membership unit.

XML

LINE OF CREDIT

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

LINE OF CREDIT

NOTE 8 – LINE OF CREDIT

The Cooperative has a $2,000,000 line of credit with a variable interest rate. This line of credit matures October 16, 2022. The line of credit is secured by the investment management agency account for the Cooperative maintained by Bell Bank. There is no outstanding balance as of March 31, 2021 or December 31, 2020.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

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 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargill’s Second Amended and Restated Facility Lease with ProGold LLC, which terminates on December 31, 2022, but may be extended through 2023 under certain conditions.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

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, 2021 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2021 financial statements.

XML

PROGOLD LIMITED LIABILITY COMPANY (Tables)

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of financial information for ProGold LLC

		March 31,				December 31,
(In Thousands)		2021		2020		2020
Current Assets	$	241	$	211	$	216
Long-Term Assets		39,958		39,113		39,700
Total Assets	$	40,199	$	39,324	$	39,916
Current Liabilities	$	2,812	$	88	$	3,106
Long-Term Liabilities		2,083		2,292		2,167
Total Liabilities		4,895		2,380		5,273
Members’ Equity		35,304		36,944		34,643
Total Liabilities and Members’ Equity	$	40,199	$	39,324	$	39,916
Rent Revenue on Operating Lease	$	4,548	$	4,833	$	16,293
Expenses		682		867		4,179
Net Income	$	3,866	$	3,966	$	12,114

XML

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of fair value of investments held to maturity based on level 2 inputs

March 31, 2021:		Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	5,275	$	—	$	5,275
Money Market & CD’s		—		15		—		15
	$	—	$	5,290	$	—	$	5,290
December 31, 2020:
Corporate Bonds	$	—	$	4,848	$	—	$	4,848
Money Market & CD’s		—		441		—		441
	$	—	$	5,289	$	—	$	5,289

Schedule of investments held to maturity

		Net Carrying		Fair
		Amount		Value
Due in 1 year or less	$	3,755	$	3,769
Due in 2 to 5 years		1,233		1,306
Greater than 5 years		207		200
	$	5,195	$	5,275

Schedule of bond maturities

		Amortized		Unrealized		Unrealized
		Cost		Gains		Losses			Fair Value
March 31, 2021:
Corporate Bonds	$	5,195	$	88	$	(8	)	$	5,275
Money Market & CD’s		15		—		—			15
	$	5,210	$	88	$	(8	)	$	5,290
December 31, 2020:
Corporate Bonds	$	4,740	$	113	$	(5	)	$	4,848
Money Market & CD’s		441		—		—			441
	$	5,181	$	113	$	(5	)	$	5,289

XML

EXPENSES (Details)	Jan. 01, 2018 USD ($)	Mar. 31, 2021 Installments	Dec. 31, 2020 Installments
Other Income and Expenses [Abstract]
Annual contractual payments to Cargill to arrange for the delivery of the corn and other agency services | $	$ 60,000
Number Of Installments | Installments		4	4

XML

PROGOLD LIMITED LIABILITY COMPANY (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Ownership percentage in joint venture	49.00%	49.00%	49.00%
Financial information for ProGold LLC
Current Assets	$ 241	$ 211	$ 216
Long-Term Assets	39,958	39,113	39,700
Total Assets	40,199	39,324	39,916
Current Liabilities	2,812	88	3,106
Long-Term Liabilities	2,083	2,292	2,167
Total Liabilities	4,895	2,380	5,273
Members' Equity	35,304	36,944	34,643
Total Liabilities and Members' Equity	40,199	39,324	39,916
Rent Revenue on Operating Lease	4,548	4,833	16,293
Expenses	682	867	4,179
Net Income	$ 3,866	$ 3,966	$ 12,114

XML

INVESTMENTS - (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	$ 5,290	$ 5,289
All Other Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	5,275	4,848
Money Market Funds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	15	441
Fair Value Inputs Level2 [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	5,290	5,289
Fair Value Inputs Level2 [Member] | All Other Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	5,275	4,848
Fair Value Inputs Level2 [Member] | Money Market Funds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Fair Value	$ 15	$ 441

XML

INVESTMENTS - Net Carrying Amount (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Net Carrying Amount
Due in 1 year or less	$ 3,755
Due in 2 to 5 years	1,233
Due in 6 to 10 years	207
Total	5,195
Fair Value
Due in 1 year or less	3,769
Due in 2 to 5 years	1,306
Due in 6 to 10 years	200
Total	$ 5,275

XML

INVESTMENTS - Investments held to maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 5,210	$ 5,181
Unrealized Gains	88	113
Unrealized Losses	(8)	(5)
Fair Value	5,290	5,289
All Other Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,195	4,740
Unrealized Gains	88	113
Unrealized Losses	(8)	(5)
Fair Value	5,275	4,848
Money Market Funds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	15	441
Fair Value	$ 15	$ 441

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EMPLOYEE BENEFIT PLANS (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan			$ 935,000	$ 844,000
Amount of benefit obligation			752,000	$ 784,000
Employer contributions	$ 0	$ 0	$ 1,000

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REVENUE RECOGNITION (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) Installments $ / Bushel	Dec. 31, 2020 Installments
Revenue from Contract with Customer [Abstract]
Annual delivery of bushels of corn	15,490,480
Number Of Installments | Installments	4	4
Incentive Payment Per Bushel to Members on Delivery of Corn under Method A	0.05
Annual Cooperative fee for corn delivery | $	$ 60,000
Agency Free for Corn Delivered Using Method B	0.02

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REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Corn Revenue	$ 23,501	$ 14,743
Method A
Disaggregation of Revenue [Line Items]
Total	9,000	5,300
Method B
Disaggregation of Revenue [Line Items]
Total	$ 14,500	$ 9,400

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DISTRIBUTIONS TO MEMBERS (Details) - USD ($)			3 Months Ended
	Feb. 26, 2021	Feb. 14, 2020	Mar. 31, 2021	Mar. 31, 2020
Distributions Made to Members or Limited Partners [Abstract]
Member distributions paid	$ 2,013,762	$ 2,168,667	$ 2,014,000	$ 2,168,000
Distribution to members per outstanding membership unit (in dollars per unit)	$ 0.13	$ 0.14

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LINE OF CREDIT (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Line of credit maximum borrowing capacity	$ 2,000,000	$ 2,000,000
Line of credit	$ 0	$ 0

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COMMITMENTS AND CONTINGENCIES (Details)	Jan. 01, 2018 USD ($)	Mar. 31, 2021 Installments	Dec. 31, 2020 Installments
Commitments and Contingencies Disclosure [Abstract]
Annual contractual payments to Cargill for procurement of corn | $	$ 60,000
Number Of Installments | Installments		4	4