Golden Growers Cooperative reported significant financial developments in its 10-Q filing for the third quarter of 2024. As of September 30, 2024, the Cooperative's cash and cash equivalents stood at $2,157,000, a slight increase from $2,097,000 at the end of 2023. Short-term investments rose to $6,767,000 from $4,548,000, contributing to a total current assets increase to $9,034,000, up from $6,963,000. However, long-term investments decreased to $836,000 from $2,788,000, leading to a decline in total members' equity to $23,198,000 from $26,403,000.

Revenue from corn marketing operations for the nine-month period ended September 30, 2024, was $47,390,000, a 34% decrease from $71,781,000 in the same period of 2023. This decline was primarily attributed to a decrease in the price per bushel of corn sold. Revenue from Method A deliveries fell to $13.3 million from $21.4 million, while Method B deliveries decreased to $34.1 million from $50.4 million. In contrast, income from ProGold LLC increased to $4,715,000, up 5% from $4,511,000, driven by timing of expenses and increased lease revenue.

Net income for the Cooperative for the nine-month period was $4,533,000, compared to $4,033,000 in the previous year. Earnings per share improved to $0.29 from $0.26. The Cooperative's net cash provided by operating activities was $24,000, a recovery from negative cash flows of $242,000 in the same period of 2023. Additionally, cash distributions from ProGold LLC increased to $5,970,000 from $5,791,000.

The Cooperative's expenses mirrored revenue trends, with corn expenses for the nine-month period totaling $47,432,000, down 34% from $71,837,000. General and administrative expenses remained stable, slightly increasing to $483,000 from $479,000.

Strategically, the Cooperative continues to operate under a lease agreement with Cargill for corn processing at ProGold LLC, which is set to expire on December 31, 2026. The Cooperative has no long-term debt and maintains a $2,000,000 line of credit, which had no outstanding balance as of September 30, 2024. The pension plan was terminated in March 2023, with an annuity purchased in February 2024 to satisfy vested benefits.

Overall, while the Cooperative faced challenges in corn revenue, it demonstrated resilience through increased income from ProGold LLC and improved operational cash flows.

About Golden Growers Cooperative

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