Golden Growers Cooperative (GGROU) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 24, 2016
Document and Entity Information
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	1,489,874
Document Type	10-K
Entity Public Float	$ 0
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,490,480
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and Cash Equivalents	$ 2,272	$ 2,483
Short-Term Investment	220	218
Prepaid Expenses	287	220
Total Current Assets	2,779	2,921
Property and Equipment, Net	3	4
Investment in ProGold Limited Liability Company	25,831	31,344
Total Assets	28,613	34,269
Current Liabilities:
Accounts Payable	23
Accrued Liabilities	229	216
Total Current Liabilities	252	216
Non-Current Liability	48
Members' Equity
Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of December 31, 2015 and December 31, 2014	28,361	34,053
Accumulated Other comprehensive Income (Loss)	(48)
Total Members' Equity	28,313	34,053
Total Liabilities and Members' Equity	$ 28,613	$ 34,269

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - shares	Dec. 31, 2015	Dec. 31, 2014
BALANCE SHEETS
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

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATIONS
Corn Revenue	$ 56,370,000	$ 61,130,000	$ 82,925,000
Corn Expense	(56,475,000)	(61,219,000)	(83,016,000)
Net Income from ProGold Limited Liability Company	5,250,000	5,981,000	5,746,000
General & Administrative Expenses	(620,000)	(660,000)	(869,000)
Net Income from Operations	4,525,000	5,232,000	4,786,000
Interest Income	8,000	10,000	11,000
Net Income Before Income Tax	4,533,000	5,242,000	4,797,000
Income Tax Provision	0	0	0
Net Income	$ 4,533,000	$ 5,242,000	$ 4,797,000
Weighted Average Units Outstanding	15,490,480	15,490,480	15,490,480
Earnings per Membership Unit
Primary and Fully Diluted (in dollars per share)	$ 0.29	$ 0.34	$ 0.31
COMPREHENSIVE INCOME
Net Income	$ 4,533,000	$ 5,242,000	$ 4,797,000
Other Comprehensive Income, Net	(48,000)		179,000
Comprehensive Income	$ 4,485,000	$ 5,242,000	$ 4,976,000

STATEMENT OF CHANGES IN MEMBERS

STATEMENT OF CHANGES IN MEMBERS' EQUITY - USD ($) $ in Thousands	Accumulated Other Comprehensive Income	Members' Equity	Total
BALANCE at Dec. 31, 2012	$ (179)	$ 42,923	$ 42,744
Net Income		4,797	4,797
Member distributions		(9,304)	(9,304)
Pension liability adjustment	179		179
BALANCE at Dec. 31, 2013		38,416	38,416
Net Income		5,242	5,242
Member distributions		(9,605)	(9,605)
BALANCE at Dec. 31, 2014		34,053	34,053
Net Income		4,533	4,533
Member distributions		(10,225)	(10,225)
Pension liability adjustment	(48)		(48)
BALANCE at Dec. 31, 2015	$ (48)	$ 28,361	$ 28,313

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net Income	$ 4,533	$ 5,242	$ 4,797
Net (Income) from ProGold Limited Liability Company	(5,250)	(5,981)	(5,746)
Depreciation	1	2	2
Changes in Assets and Liabilities
Prepaid expenses	(67)	(210)	(9)
Accounts payable	23		(67)
Accrued liabilities	13	212	(1)
Net cash used by operating activities	(747)	(735)	(1,024)
Cash Flows from Investing Activities
Purchase of investments available for sale	(2)
Distribution received from ProGold LLC	10,763	9,669	10,784
Net Cash Provided by Investing Activities	10,761	9,669	10,784
Cash Flows from Financing Activities
Member distributions paid	(10,225)	(9,605)	(9,304)
Net cash Used by Financing Activities	(10,225)	(9,605)	(9,304)
Increase in Cash and Cash Equivalents	(211)	(671)	456
Cash and Cash Equivalents, Beginning of Period	2,483	3,154	2,698
Cash and Cash Equivalents, End of Period	$ 2,272	$ 2,483	$ 3,154

NATURE OF OPERATIONS

NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2015
BASIS OF PRESENTATION
NATURE OF OPERATIONS	NOTE 1 — NATURE OF OPERATIONS Organization - Golden Growers Cooperative was initially organized as a North Dakota member-owned cooperative incorporated on January 19, 1994 (“GG-ND”). GG-ND and two other partners, one of whom was American Crystal Sugar Company (“ACSC”) entered into a joint venture that formed ProGold Limited Liability Company, a Minnesota limited liability company (“ProGold”) which designed and constructed a corn wet-milling facility in Wahpeton, North Dakota (the “Facility”). Under the joint venture, GG-ND (and indirectly its members) had the right and obligation to deliver corn to be processed at the Facility. After it was constructed and operated briefly by its members, the Facility was leased to Cargill Incorporated (“Cargill”) who continues to operate the Facility under a lease that runs through December 31, 2017. Golden Growers Cooperative and ACSC are the current members of ProGold, with Golden Growers Cooperative holding a 49% interest and ACSC holding the remaining 51% interest. On July 29, 2009 GG-ND formed a wholly owned cooperative subsidiary in the state of Minnesota (GG-MN), organized under Minnesota Statutes chapter 308A, solely for the purpose of reincorporating into the state of Minnesota. On September 1, 2009, GG-ND merged into GG-MN and reincorporated into the state of Minnesota. Immediately after the merger, GG-MN statutorily converted into a cooperative association governed under Minnesota Statutes 308B. As a result of its reincorporation and reorganization Golden Growers — North Dakota, a North Dakota cooperative association historically taxed as a tax-exempt cooperative under Subchapter T of the Internal Revenue Code, became Golden Growers Cooperative, a Minnesota cooperative association governed by Minnesota Statutes chapter 308B as a cooperative for state law purposes but taxed as a partnership under Subchapter K of the Internal Review Code for tax purposes. Golden Growers Cooperative succeeded to the business of Golden Growers — North Dakota and except for changes to the structure and operations as a result of the reincorporation and statutory conversion, continues to operate the business of Golden Growers — North Dakota. As part of the Conversion, GG-ND’s members exchanged their shares of Class A Common Voting Membership Stock and Class B Non-Voting Equity Stock for identical and equal shares of such stock in GG-MN. Each member’s single share of Class A Common Voting Membership Stock was redeemed for $150 and each member received membership units in GG-MN equal to the number of shares of Class B Non-Voting Equity Stock each member held in GG-ND prior to the Merger. Prior to September 1, 2009, ownership of membership stock, which signified membership in the Cooperative, was restricted to producers of agricultural products. The ownership of equity stock was restricted to members of the Cooperative. Preferred stock could be held by persons who were not members of the Cooperative. At August 31, 2009 and 2008, the Cooperative had 10,000 shares of non-voting, $1,000 par-value preferred stock authorized, of which none were issued or outstanding. Equity requirements, as determined by the board of directors, could be retained from amounts due to patrons and credited to members’ equity in the form of unit retains or allocated patronage. The Cooperative reserved the right to acquire any of its stock offered for sale and the right to recall the stock of any member. In the event this right was exercised, the consideration paid for such stock was 25% of its book value. Beginning September 1, 2009, ownership of membership units is available to any person or entity residing in the Unites States of America. Net proceeds or losses will be allocated to members on the basis of their patronage of the Cooperative. In connection with the Conversion, the Cooperative changed its fiscal year end to December 31.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments — The Cooperative’s investment securities are held to maturity and recorded at amortized cost. The Cooperative’s investment in ProGold is recorded at historical cost plus its pro-rata share of ProGold’s net income and additional paid-in capital less distributions received from ProGold. Unrealized gains or losses are recorded in accumulated other comprehensive income within members’ equity. Gains and losses are determined using the specific identification method. Cash and Cash Equivalents — The Cooperative considers all demand accounts to be cash equivalents and overnight sweep accounts. Cash equivalents do not include money market accounts maintained by the Cooperative’s investment managers. Cash equivalents do not include any investment with a stated maturity date, regardless of the term to maturity. Income Taxes — Beginning September 1, 2009, Golden Growers Cooperative is taxed as a limited liability company under Subchapter K of the Internal Revenue Code. As such, the Cooperative will generally not be subject to income taxes. Instead, net income will be reported by its members who will be responsible for any income taxes which may be due. Prior to September 1, 2009, Golden Growers Cooperative was an exempt cooperative for federal income tax purposes. As such, the cooperative was generally not subject to income taxes. Instead, net proceeds were allocated to the Cooperative’s patrons who were responsible for any income taxes which may have been due. The Cooperative’s net financial bases in its assets and liabilities exceeded its tax bases by approximately $11 million and $13 million as of December 31, 2015 and 2014, respectively. Property and Equipment — Property and equipment are stated at cost. Depreciation on assets placed in service is provided using the straight-line method over estimated useful lives ranging from 5 to 10 years. Accounting Estimates — The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition — 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. For an annual fee of $92,000 paid quarterly, 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. The price per bushel paid to the member who elects to deliver corn using Method B is equal to the price per bushel paid by Cargill to acquire the corn as the Cooperative’s agent. Members who deliver corn under Method A are paid the market price or contracted price for their corn at the time of delivery. The Cooperative pays members who deliver corn under Method A an incentive payment of $.05 per bushel while 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 board has the discretion to change the incentive fee and the agency fee based on the Cooperative’s corn delivery needs. The incentive fee and agency fee are a component of Corn Expense. With respect to all Method A corn that is delivered, 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 directly to its members. If a Method A member fails to fully satisfy the corn delivery requirement, Cargill purchases replacement corn for which the Cooperative reimburses Cargill the amount by which the underlying contracted corn price is less than the price of buying the replacement corn that was due on the delivery date. The Method A member who fails to deliver corn is then invoiced by the Cooperative for the price of the corn. Based on what is to be delivered by its members using Method A, Cargill then purchases the remainder of the corn to be delivered by the Cooperative on behalf of its Method B delivering members. Because Cargill purchases the corn on the Cooperative’s behalf of Method B delivering members, the purchase price for the corn that would be paid to the Cooperative’s members if they actually delivered the corn offsets against the payment to be made by the Cooperative to Cargill for the cost to purchase the corn, thus no payment is made from Cargill to the Cooperative for corn delivered using Method B. The Cooperative has determined Corn Expense for Method B deliveries based on the average quarterly cost per bushel paid by Cargill to the Cooperative’s members for Method A quarterly deliveries. Concentrations - Several times during the year, the Cooperative maintained a cash balance in excess of the Federal Deposit Insurance Corporation (“FDIC”) limits. At December 31, 2015, the Cooperative’s cash balance exceeded the FDIC insurance limits by approximately $2.2 million. Fair Value Measurements - The Cooperative has determined the fair value of certain assets and liabilities in accordance with the provisions of Accounting Standards Codification (“ASC”) 820-10, which provides a framework for measuring fair value under generally accepted accounting principles. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820-10 also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs related to the asset or liability.

PROGOLD LIMITED LIABILITY COMPA

PROGOLD LIMITED LIABILITY COMPANY	12 Months Ended
	Dec. 31, 2015
PROGOLD LLC
PROGOLD LIMITED LIABILITY COMPANY	NOTE 3 — PROGOLD LIMITED LIABILITY COMPANY The Cooperative has a 49% ownership interest in ProGold Limited Liability Company. Following is summary financial information for ProGold Limited Liability Company: December 31, (In Thousands) 2015 2014 2013 Current Assets $ $ $ Long-Term Assets Total Assets $ $ $ Current Liabilities $ $ $ Long-Term Liabilities Total Liabilities Members’ Equity Total Liabilities and Members’ Equity $ $ $ Rent Revenue on Operating Lease $ $ $ Expenses Net Income $ $ $

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2015
INVESTMENTS
INVESTMENTS	NOTE 4 — INVESTMENTS The Cooperative has determined fair value of its investments held to maturity based on Level 1 inputs. The Cooperative’s investments held to maturity are as follows as of December 31, 2015 and 2014 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015: Money Market & CD’s $ — — $ December 31, 2014: Money Market & CD’s $ — — $

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES.
INCOME TAXES	NOTE 5 — INCOME TAXES The Cooperative follows the provisions of ASC 740-10 related to accounting for uncertainty in income taxes. The Cooperative had no unrecognized tax benefits on December 31, 2015 and 2014 . No interest or penalties are recognized in the statements of operations or in the balance sheets. The Cooperative is no longer subject to U.S. Federal and State income tax examinations by tax authorities for fiscal years 2012 and earlier. The Cooperative recognized no income tax expense for the years ended December 31, 2015, 2014 and 2013.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE 6 — EMPLOYEE BENEFIT PLANS Pension Plan — In December 2012, the Cooperative approved a change to freeze the Cooperative’s defined benefit pension plan. As a result, no additional benefits will accrue to participants in the plan and no new employees are eligible for the plan. During the year ended December 31, 2015, 2014 and 2013, the pension expenses were $25,000, $74,000, and $141,000, respectively. As of December 31, 2015 , the pension plans were funded as required by the funding standards set forth by the Employee Retirement Income Security Act (ERISA). The Cooperative’s Compensation Committee has the responsibility of managing the operations and administration of the Cooperative’s retirement plans. The Cooperative has an investment policy that establishes target asset allocations to reduce the risk of large losses. Asset classes are diversified to reduce risk, and equity exposure is limited to 75% of the total portfolio value. The stated goal is for each component of the plan to earn a rate of return greater than its corresponding benchmark. The return objective of the plan is to achieve a minimum average total rate of return of four percentage points (4.0%) above the rate of inflation as measured by the Consumer Price Index. The real rate of return goal assumes a real rate of return for equities of 10.0% and a real rate of return for fixed income of 4.0%. Substantially all of the Plan’s assets consist of BNY Mellon funds (Fund) and are valued based on Level II inputs, as determined from the Fund’s FAS 157 footnote included in the Fund’s audited financial statements. The Fund’s valuation techniques include market matrix pricing and market inputs, including bench mark yields, reported trades, broker/dealer quotes and others. There has been no changes in valuation techniques and inputs in 2015, 2014 and 2013. The assumptions used in the measurement of the Cooperative’s benefit obligations are shown below: 2015 2014 Discount Rate % % Expected Return on Plan Assets % % Rate of Compensation Increase % % The following schedule reflects the expected pension benefit payments during each of the next five years and the aggregate for the following five years (in thousands): Expected Benefit Payments 2016 $ 2017 2018 2019 2020 2021-2025 Total $ The Cooperative expects to make contributions of approximately $20,000 to the defined benefit pension plan during the next fiscal year. The following schedules provide the components of the Net Periodic Pension Costs for the periods ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Service Cost $ — $ — $ — Interest Cost Expected Return on Plan Assets ) ) ) Amortization of Net (Gain) Loss — Net Periodic Pension Cost $ $ $ ) The following schedules set forth a reconciliation of the changes in the plan’s benefit obligation and fair value of assets for the periods ending December 31, 2015 and 2014 and a statement of the funded status and amounts recognized in the Balance Sheets and Accumulated Other Comprehensive Income as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Change in Benefit Obligation Obligation at the Beginning of the Period $ $ Service Cost — — Interest Cost Actuarial (Gain) Loss Benefits Paid ) ) Obligation at the End of the Period $ $ Change in Plan Assets Fair Value at the Beginning of the Period $ $ Actual Returns on Plan Assets ) Employer Contributions Benefits Paid ) ) Fair Value at the End of the Period $ $ Funded Status Funded Status as of Period Ended $ ) $ Net Amount Recognized $ ) $ — December 31, 2014 December 31, 2013 Amounts Recognized in the Balance Sheets Noncurrent Assets $ — $ — Current Liabilities — — Noncurrent Liabilities ) — Net Amount Recognized $ ) $ — Accumulated Gain (Loss) Recognized in Accumulated Other Comprehensive Income Accumulated Gain (Loss) Beginning of the Period $ — $ — Recognized in Periodic Cost — — Amount Arising During the Period ) — Accumulated Gain (Loss) End of the Period $ ) $ — 401(k) Plan — The Cooperative has a 401(k) plan that covers employees that meet eligibility requirements. The Cooperative’s contributions to the plan totaled $7,123, $6,979 and $5,158 for the years ended December 31, 2015, 2014 and 2013, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 7 — COMMITMENTS AND CONTINGENCIES The Cooperative contracted with Cargill, Incorporated in connection with the procurement of corn which includes payments of $92,000 annually and terminates December 31, 2017. On July 10, 2012, the Cooperative entered into a Services Agreement with Mark C. Dillon (the “Agreement”), the Cooperative’s former Executive Vice President and Chief Executive Officer. The Agreement was entered into in anticipation of Mr. Dillon’s retirement effective September 30, 2012. Pursuant to the Agreement, Mr. Dillon provided enumerated transitional consulting services to the Cooperative until March 31, 2013. In exchange for such services, Mr. Dillon was paid $37,250 per month. Mr. Dillon retired effective September 30, 2012. During the years ended December 31, 2015 , 2014 and 2013, the Cooperative incurred $0, $0 and $111,750 expense in connection with the Services Agreement.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 8 - SUBSEQUENT EVENTS In February of 2016, the Cooperative declared a distribution of $3,098,096, or $.20 per outstanding membership unit. Management has reviewed subsequent events through March 2, 2016 the date to which the financial statements were available to be issued.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
Investments	Investments — The Cooperative’s investment securities are held to maturity and recorded at amortized cost. The Cooperative’s investment in ProGold is recorded at historical cost plus its pro-rata share of ProGold’s net income and additional paid-in capital less distributions received from ProGold. Unrealized gains or losses are recorded in accumulated other comprehensive income within members’ equity. Gains and losses are determined using the specific identification method.
Cash and Cash Equivalents	Cash and Cash Equivalents — The Cooperative considers all demand accounts to be cash equivalents and overnight sweep accounts. Cash equivalents do not include money market accounts maintained by the Cooperative’s investment managers. Cash equivalents do not include any investment with a stated maturity date, regardless of the term to maturity.
Income Taxes	Income Taxes — Beginning September 1, 2009, Golden Growers Cooperative is taxed as a limited liability company under Subchapter K of the Internal Revenue Code. As such, the Cooperative will generally not be subject to income taxes. Instead, net income will be reported by its members who will be responsible for any income taxes which may be due. Prior to September 1, 2009, Golden Growers Cooperative was an exempt cooperative for federal income tax purposes. As such, the cooperative was generally not subject to income taxes. Instead, net proceeds were allocated to the Cooperative’s patrons who were responsible for any income taxes which may have been due. The Cooperative’s net financial bases in its assets and liabilities exceeded its tax bases by approximately $11 million and $13 million as of December 31, 2015 and 2014, respectively.
Property and Equipment	Property and Equipment — Property and equipment are stated at cost. Depreciation on assets placed in service is provided using the straight-line method over estimated useful lives ranging from 5 to 10 years.
Accounting Estimates	Accounting Estimates — The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition — 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. For an annual fee of $92,000 paid quarterly, 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. The price per bushel paid to the member who elects to deliver corn using Method B is equal to the price per bushel paid by Cargill to acquire the corn as the Cooperative’s agent. Members who deliver corn under Method A are paid the market price or contracted price for their corn at the time of delivery. The Cooperative pays members who deliver corn under Method A an incentive payment of $.05 per bushel while 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 board has the discretion to change the incentive fee and the agency fee based on the Cooperative’s corn delivery needs. The incentive fee and agency fee are a component of Corn Expense. With respect to all Method A corn that is delivered, 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 directly to its members. If a Method A member fails to fully satisfy the corn delivery requirement, Cargill purchases replacement corn for which the Cooperative reimburses Cargill the amount by which the underlying contracted corn price is less than the price of buying the replacement corn that was due on the delivery date. The Method A member who fails to deliver corn is then invoiced by the Cooperative for the price of the corn. Based on what is to be delivered by its members using Method A, Cargill then purchases the remainder of the corn to be delivered by the Cooperative on behalf of its Method B delivering members. Because Cargill purchases the corn on the Cooperative’s behalf of Method B delivering members, the purchase price for the corn that would be paid to the Cooperative’s members if they actually delivered the corn offsets against the payment to be made by the Cooperative to Cargill for the cost to purchase the corn, thus no payment is made from Cargill to the Cooperative for corn delivered using Method B. The Cooperative has determined Corn Expense for Method B deliveries based on the average quarterly cost per bushel paid by Cargill to the Cooperative’s members for Method A quarterly deliveries.
Concentrations	Concentrations - Several times during the year, the Cooperative maintained a cash balance in excess of the Federal Deposit Insurance Corporation (“FDIC”) limits. At December 31, 2015, the Cooperative’s cash balance exceeded the FDIC insurance limits by approximately $2.2 million.
Fair Value Measurements	Fair Value Measurements - The Cooperative has determined the fair value of certain assets and liabilities in accordance with the provisions of Accounting Standards Codification (“ASC”) 820-10, which provides a framework for measuring fair value under generally accepted accounting principles. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820-10 also establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs related to the asset or liability.

PROGOLD LIMITED LIABILITY COM16

PROGOLD LIMITED LIABILITY COMPANY (Tables)	12 Months Ended
	Dec. 31, 2015
PROGOLD LLC
Schedule of financial information for ProGold LLC	December 31, (In Thousands) 2015 2014 2013 Current Assets $ $ $ Long-Term Assets Total Assets $ $ $ Current Liabilities $ $ $ Long-Term Liabilities Total Liabilities Members’ Equity Total Liabilities and Members’ Equity $ $ $ Rent Revenue on Operating Lease $ $ $ Expenses Net Income $ $ $

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
INVESTMENTS
Schedule of investments held to maturity	The Cooperative’s investments held to maturity are as follows as of December 31, 2015 and 2014 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015: Money Market & CD’s $ — — $ December 31, 2014: Money Market & CD’s $ — — $

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS
Schedule of assumptions used in the measurement of the entity's benefit obligations	2015 2014 Discount Rate % % Expected Return on Plan Assets % % Rate of Compensation Increase % %
Schedule of expected pension benefit payments	The following schedule reflects the expected pension benefit payments during each of the next five years and the aggregate for the following five years (in thousands): Expected Benefit Payments 2016 $ 2017 2018 2019 2020 2021-2025 Total $
Components of Net Periodic Benefit Cost	The following schedules provide the components of the Net Periodic Pension Costs for the periods ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Service Cost $ — $ — $ — Interest Cost Expected Return on Plan Assets ) ) ) Amortization of Net (Gain) Loss — Net Periodic Pension Cost $ $ $ )
Schedule of funded status and amount recognized in balance sheet and accumulated other comprehensive income	The following schedules set forth a reconciliation of the changes in the plan’s benefit obligation and fair value of assets for the periods ending December 31, 2015 and 2014 and a statement of the funded status and amounts recognized in the Balance Sheets and Accumulated Other Comprehensive Income as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Change in Benefit Obligation Obligation at the Beginning of the Period $ $ Service Cost — — Interest Cost Actuarial (Gain) Loss Benefits Paid ) ) Obligation at the End of the Period $ $ Change in Plan Assets Fair Value at the Beginning of the Period $ $ Actual Returns on Plan Assets ) Employer Contributions Benefits Paid ) ) Fair Value at the End of the Period $ $ Funded Status Funded Status as of Period Ended $ ) $ Net Amount Recognized $ ) $ — December 31, 2014 December 31, 2013 Amounts Recognized in the Balance Sheets Noncurrent Assets $ — $ — Current Liabilities — — Noncurrent Liabilities ) — Net Amount Recognized $ ) $ — Accumulated Gain (Loss) Recognized in Accumulated Other Comprehensive Income Accumulated Gain (Loss) Beginning of the Period $ — $ — Recognized in Periodic Cost — — Amount Arising During the Period ) — Accumulated Gain (Loss) End of the Period $ ) $ —

NATURE OF OPERATIONS ( Details)

NATURE OF OPERATIONS ( Details)	12 Months Ended
	Dec. 31, 2015item$ / shares	Aug. 31, 2009$ / sharesshares	Aug. 31, 2008$ / sharesshares
Nature of operations
Redemption price of Class A Common Voting Membership Stock (in dollars per share) | $ / shares	$ 150
Non-voting preferred stock, issued (in shares)		0	0
Non-voting preferred stock, outstanding (in shares)		0	0
Non-voting preferred stock, authorized (in shares)		10,000	10,000
Non-voting preferred stock, authorized, par value (in dollars per share) | $ / shares		$ 1,000	$ 1,000
Percentage of book value of stock, paid as a consideration, in the event of right to recall stock of any member was exercised	25.00%
ProGold Limited Liability Company Member
Nature of operations
Number of partners | item	2
Interest ownership (as a percent)	49.00%
ProGold Limited Liability Company Member | Co Venturer [Member]
Nature of operations
Interest ownership (as a percent)	51.00%

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)$ / bu
Revenue Recognition
Annual contractual payments to Cargill to arrange for the delivery of the corn by its members	$ 92,000
Incentive paid per bushel to members who deliver corn under Method A | $ / bu	0.05
Agency fee paid per bushel by the members who elect Method B | $ / bu	0.02
Payment made by Cargill for corn delivered using Method B	$ 0
Cash balance in excess of the FDIC insurance limits	$ 2,200,000
Minimum
Property and equipment
Estimated useful lives	5 years
Maximum
Property and equipment
Estimated useful lives	10 years

PROGOLD LIMITED LIABILITY COM21

PROGOLD LIMITED LIABILITY COMPANY (Details) - ProGold Limited Liability Company Member - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ProGold Limited Liability Company
Interest ownership (as a percent)	49.00%
Financial information for ProGold LLC
Current Assets	$ 133	$ 2,375	$ 151
Long-Term Assets	53,386	65,019	72,947
Total Assets	53,519	67,394	73,098
Current Liabilities	404	2,627	405
Long-Term Liabilities	400	800	1,200
Total Liabilities	804	3,427	1,605
Members' Equity	52,715	63,967	71,493
Total Liabilities and Members' Equity	53,519	67,394	73,098
Rent Revenue on Operating Lease	23,106	24,125	23,674
Expenses	12,392	11,919	11,948
Net Income	$ 10,714	$ 12,206	$ 11,726

INVESTMENTS (Details)

INVESTMENTS (Details) - Money Market & CD's - Level 1 inputs - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments held to maturity
Amortized Cost	$ 220	$ 218
Fair Value	$ 220	$ 218

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INCOME TAXES.
Unrecognized Tax Benefits	$ 0	$ 0
Income tax expense	0	0	$ 0
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	0	0
Interest or penalties related to unrecognized tax benefits	$ 0	$ 0

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details)	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
EMPLOYEE BENEFIT PLANS
Additional benefits accrued to participants under the plan	$ 0
Number of new employees eligible under the plan | item	0
Employer Contributions	$ 25,000	$ 74,000	$ 141,000
Employee Benefit Plans
Minimum average total rate of return above the rate of inflation (as a percent)	4.00%
Equity Securities [Member]
Employee Benefit Plans
Maximum equity exposure as a percentage of total portfolio value	75.00%
Actual rate of return assumed (as a percent)	10.00%
Fixed Income Securities [Member]
Employee Benefit Plans
Actual rate of return assumed (as a percent)	4.00%

EMPLOYEE BENEFIT PLANS (Detai25

EMPLOYEE BENEFIT PLANS (Details 2)	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Assumptions used in measurement of benefit obligations
Discount Rate (as a percent)	5.00%	5.00%
Expected Return on Plan Assets (as a percent)	6.25	6.25
Expected Return on Plan Assets (as a percent)	4.73%	4.73%
Expected pension benefit payments
2,014	$ 54,000
2,015	54,000
2,016	54,000
2,017	54,000
2,018	54,000
2019-2023	263,000
Total	533,000
Expected contributions to the defined benefit pension plan during the next fiscal year	20,000
Components of Net Periodic Benefit Cost
Interest Cost	37,000	$ 36,000	$ 40,000
Expected return on plan assets	(44,000)	(48,000)	(59,000)
Amortization of net (gain) loss	11,000	25,000
Net Periodic Pension Cost	4,000	13,000	(19,000)
Change in Benefit Obligation
Obligation at the Beginning of the Period	748,000	748,000	696,000
Interest Cost	36,000	40,000
Actuarial (Gain) Loss	45,000	67,000
Benefits Paid	(54,000)	(55,000)
Obligation at the End of the Period	775,000	748,000	748,000
Change in Plan Assets
Fair Value at the Beginning of the Period	777,000	777,000	714,000
Actual Returns on Plan Assets	(21,000)	44,000
Employer Contributions	25,000	74,000	141,000
Benefits Paid	(54,000)	(55,000)
Fair Value at the End of the Period	727,000	777,000	777,000
Funded Status
Funded Status as of Period Ended	(48,000)	29,000
Net Amount Recognized	(48,000)
Amounts Recognized in the Balance Sheets
Noncurrent Liabilities	48,000
Net Amount Recognized	(48,000)
Accumulated Gain (Loss) Recognized in Accumulated Other Comprehensive Income
Amount Arising During the Period	(48,000)
Accumulated Gain (Loss) End of the Period	(48,000)
Cooperative contributions	25,000	$ 74,000	$ 141,000
Cooperative anticipated contributions	0
Additional benefits accrued to participants under the plan	$ 0
Number of new employees eligible under the plan | item	0

EMPLOYEE BENEFIT PLANS (Detai26

EMPLOYEE BENEFIT PLANS (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
401(k) Plan
Contributions to the plan	$ 7,123	$ 6,979	$ 5,158

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES
Annual contractual payments to Cargill to arrange for the delivery of the corn by its members	$ 92,000
Amount paid to retired executive vice president and chief executive officer per month as per service agreement	37,250
Expense in connection with the Services Agreement	$ 0	$ 0	$ 111,750

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event	1 Months Ended
	Feb. 29, 2016USD ($)$ / shares
SUBSEQUENT EVENTS
Accrued Dividend Payable to Members | $	$ 3,098,096
Distribution declared (in dollars per unit) | $ / shares	$ 0.20