Golden Growers Cooperative (GGROU) 10-Q 16 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 13, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-53957
Entity Registrant Name	Golden Growers Cooperative
Entity Central Index Key	0001489874
Entity Tax Identification Number	27-1312571
Entity Incorporation, State or Country Code	MN
Entity Address, Address Line One	1002 Main Avenue West
Entity Address, Address Line Two	Suite 5
Entity Address, City or Town	West Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58078
City Area Code	701
Local Phone Number	281-0468
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,490,480

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and Cash Equivalents	$ 4,092	$ 1,595
Short-Term Investments	3,716	4,290
Other Current Assets	29	255
Total Current Assets	7,837	6,140
Long-Term Investments	962	1,009
Investment in ProGold LLC	19,385	20,803
Total Assets	28,184	27,952
Current Liabilities
Accounts Payable		1
Accrued Liabilities	1	204
Total Current Liabilities	1	205
Non-Current Liabilites
Members' Equity:
Members’ Equity            Membership Units, Authorized 60,000,000 Units, Issued and            Outstanding 15,490,480 as of March 31, 2022 and            December 31, 2021	28,183	27,747
Accumulated Other Comprehensive Income (Loss)
Total Members’ Equity	28,183	27,747
Total Liabilities and Members’ Equity	$ 28,184	$ 27,952

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Membership Units, Authorized	60,000,000	60,000,000
Membership Units, Issued	15,490,480	15,490,480
Membership Units, Outstanding	15,490,480	15,490,480

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
OPERATIONS
Corn Revenue	$ 30,302	$ 23,501
Corn Expense	(30,317)	(23,515)
Net Income from ProGold LLC	2,796	1,894
General & Administrative Expenses	(202)	(147)
Net Income from Operations	2,579	1,733
Other Income	27	41
Net Income Before Income Tax	2,606	1,774
Net Income	$ 2,606	$ 1,774
Weighted Average Shares/Units Outstanding	15,490,480	15,490,480
Earnings per Share/Membership Unit
Earnings per Share/Membership Unit, Primary	$ 0.17	$ 0.11
Earnings per Share/Membership Unit, Fully Diluted	$ 0.17	$ 0.11

CONDENSED STATEMENTS OF COMPRE

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
COMPREHENSIVE INCOME
Net Income	$ 2,606	$ 1,774
Other Comprehensive Income (Loss), Net
Comprehensive Income	$ 2,606	$ 1,774

STATEMENTS OF CHANGES IN MEMBER

STATEMENTS OF CHANGES IN MEMBERS' EQUITY $ in Thousands	Common Stock [Member]USD ($)
Balance, Beginning of the Period at Dec. 31, 2020	$ 25,758
Changes in Members' Equity
Net Income	1,774
Pension Liability Adjustment
Distributions to Members	(2,014)
Balance, End of the Period at Mar. 31, 2021	25,518
Balance, Beginning of the Period at Dec. 31, 2021	27,747
Changes in Members' Equity
Net Income	2,606
Pension Liability Adjustment
Distributions to Members	(2,170)
Balance, End of the Period at Mar. 31, 2022	$ 28,183

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities
Net Income	$ 2,606	$ 1,774
Net (Income) from ProGold LLC	(2,796)	(1,894)
Changes in assets and liabilities
Other Current Assets	226	223
Accrued liabilities and payables	(204)	(203)
Net Cash Used in Operating Activities	(168)	(100)
Cash Flows from Investing Activities
(Purchase) Sale of investments	620	(29)
Investment in ProGold LLC	(89)
Distribution received from ProGold LLC	4,303	1,570
Net Cash Provided in Investing Activities	4,834	1,541
Cash Flows from Financing Activities
Member distributions paid	(2,169)	(2,014)
Net Cash Used by Financing Activities	(2,169)	(2,014)
Increase (Decrease) in Cash and Cash Equivalents	2,497	(573)
Cash and Cash Equivalents, Beginning of Year	1,595	3,547
Cash and Cash Equivalents, End of Period	$ 4,092	$ 2,974

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2022
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, 2022 and 2021 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, 2021. The results of operations for the three-month period ended March 31, 2022 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2022.

EXPENSES

EXPENSES	3 Months Ended
	Mar. 31, 2022
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 4 Effective March 1, 2022, the term of the Facility Lease was extended through December 31, 2026.

PROGOLD LIMITED LIABILITY COMPA

PROGOLD LIMITED LIABILITY COMPANY	3 Months Ended
	Mar. 31, 2022
Progold Limited Liability Company
PROGOLD LIMITED LIABILITY COMPANY	NOTE 3 – PROGOLD LIMITED LIABILITY COMPANY Prior to March 1, 2022, the Cooperative and American Crystal Sugar Company (“American Crystal”) held a 49% 51% 0% On March 1, 2022, pursuant to an Option Agreement by and between Cargill and American Crystal, and a Consent Agreement by and among the Cooperative, Cargill, and American Crystal, each effective January 1, 2018, Cargill purchased a 50% 1% 50% 0% March 31, December 31, (In Thousands) 2022 2021 2021 Current Assets $ 68 $ 241 $ 4,873 Long-Term Assets 39,317 39,958 43,320 Total Assets $ 39,385 $ 40,199 $ 48,193 Current Liabilities $ 45 $ 2,812 $ 3,903 Long-Term Liabilities — 2,083 1,833 Total Liabilities 45 4,895 5,736 Members’ Equity 39,340 35,304 42,457 Total Liabilities and Members’ Equity $ 39,385 $ 40,199 $ 48,193 Rent Revenue on Operating Lease $ 6,534 $ 4,548 $ 21,045 Expenses 895 682 3,865 Net Income $ 5,639 $ 3,866 $ 17,180

INVESTMENTS

INVESTMENTS	3 Months Ended
	Mar. 31, 2022
Investments
INVESTMENTS	NOTE 4 – INVESTMENTS The Cooperative has determined fair value of its investments based on Level 2 inputs (in thousands): March 31, 2022: Level 1 Level 2 Level 3 Total Corporate Bonds - Held to Maturity $ — $ 1,946 $ — $ 1,946 Fixed Income Funds - Available for Sale — 2,533 — 2,533 Money Market & CD’s — 98 — 98 $ — $ 4,577 $ — $ 4,577 December 31, 2021: Corporate Bonds - Held to Maturity $ $ $ $ Fixed Income Funds - Available for Sale — 2,619 — 2,619 Money Market & CD’s — 448 — 448 $ — $ 5,294 $ — $ 5,294 Maturities are as follows as of March 31, 2022 (in thousands): Net Carrying Fair Amount Value Due in 1 year or less $ 1,085 $ 982 Due in 2 to 5 years 847 857 Greater than 5 years 115 107 $ 2,047 $ 1,946 The Coopertive’s investments are as follows as of March 31, 2022 and December 31, 2021 (in thousands): Amortized Unrealized Unrealized Cost Gains Losses Fair Value March 31, 2022: Corporate Bonds - Held to Maturity $ $ $ ) $ Fixed Income Funds - Available for Sale 2,533 — — 2,533 Money Market & CD’s 98 — — 98 $ $ $ ) $ 4,577 December 31, 2021: Corporate Bonds - Held to Maturity $ $ $ ) $ Fixed Income Funds - Available for Sale 2,619 — — 2,619 Money Market & CD’s 448 — — 448 $ $ $ ) $ 5,294

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	3 Months Ended
	Mar. 31, 2022
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS	NOTE 5 – EMPLOYEE BENEFIT PLANS Pension 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, 2021, the plan had a total fair value of $910,000 $718,000 $935,000 $752,000 For the three month periods ended March 31, 2022 and 2021, the Cooperative made $0 $0

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [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 and certain purchased corn and agency fees paid by members. Annually, the Cooperative is required to deliver approximately 15,490,480 $60,000 4 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 Members who elect Method B to deliver corn pay the Cooperative a $.02 The Cooperative’s Board of Directors has the discretion to change the member incentive payment, purchased corn and agency fees based on the Cooperative’s corn delivery needs. The Cargill agency fee is also a component of corn expense. For the three month periods ended March 31, 2022 and 2021, the Cooperative recognized corn revenue of $30.3 $23.5 $11.8 $9 $18.5 $14.5

DISTRIBUTIONS TO MEMBERS

DISTRIBUTIONS TO MEMBERS	3 Months Ended
	Mar. 31, 2022
Distributions To Members
DISTRIBUTIONS TO MEMBERS	NOTE 7 – DISTRIBUTIONS TO MEMBERS On February 16, 2022, the Cooperative made distributions to its members totaling $2,168,667 $0.14 $2,013,762 $0.13

LINE OF CREDIT

LINE OF CREDIT	3 Months Ended
	Mar. 31, 2022
Line Of Credit
LINE OF CREDIT	NOTE 8 – LINE OF CREDIT The Cooperative has a $2,000,000 no

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies
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 4

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2022
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, 2022 financial statements and concluded that no subsequent events have occurred that would require recognition in the March 31, 2022 financial statements.

PROGOLD LIMITED LIABILITY COM_2

PROGOLD LIMITED LIABILITY COMPANY (Tables)	3 Months Ended
	Mar. 31, 2022
Progold Limited Liability Company
Schedule of Financial Information for ProGold LLC	March 31, December 31, (In Thousands) 2022 2021 2021 Current Assets $ 68 $ 241 $ 4,873 Long-Term Assets 39,317 39,958 43,320 Total Assets $ 39,385 $ 40,199 $ 48,193 Current Liabilities $ 45 $ 2,812 $ 3,903 Long-Term Liabilities — 2,083 1,833 Total Liabilities 45 4,895 5,736 Members’ Equity 39,340 35,304 42,457 Total Liabilities and Members’ Equity $ 39,385 $ 40,199 $ 48,193 Rent Revenue on Operating Lease $ 6,534 $ 4,548 $ 21,045 Expenses 895 682 3,865 Net Income $ 5,639 $ 3,866 $ 17,180

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2022
Investments
Schedule of Fair Value of Investments Held to Maturity Based on Level 2 Inputs	March 31, 2022: Level 1 Level 2 Level 3 Total Corporate Bonds - Held to Maturity $ — $ 1,946 $ — $ 1,946 Fixed Income Funds - Available for Sale — 2,533 — 2,533 Money Market & CD’s — 98 — 98 $ — $ 4,577 $ — $ 4,577 December 31, 2021: Corporate Bonds - Held to Maturity $ $ $ $ Fixed Income Funds - Available for Sale — 2,619 — 2,619 Money Market & CD’s — 448 — 448 $ — $ 5,294 $ — $ 5,294
Schedule of Investments Held to Maturity	Net Carrying Fair Amount Value Due in 1 year or less $ 1,085 $ 982 Due in 2 to 5 years 847 857 Greater than 5 years 115 107 $ 2,047 $ 1,946
Schedule of Bond Maturities	Amortized Unrealized Unrealized Cost Gains Losses Fair Value March 31, 2022: Corporate Bonds - Held to Maturity $ $ $ ) $ Fixed Income Funds - Available for Sale 2,533 — — 2,533 Money Market & CD’s 98 — — 98 $ $ $ ) $ 4,577 December 31, 2021: Corporate Bonds - Held to Maturity $ $ $ ) $ Fixed Income Funds - Available for Sale 2,619 — — 2,619 Money Market & CD’s 448 — — 448 $ $ $ ) $ 5,294

EXPENSES (Details Narrative)

EXPENSES (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)Installment
Other Income and Expenses [Abstract]
Annual Contractual Payments to Cargill to Arrange for Delivery of The Corn and Other Agency Services | $	$ 60,000
Number Of Installments | Installment	4
Service Contract Maturity Date Descripsion	Effective March 1, 2022, the term of the Facility Lease was extended through December 31, 2026.

Schedule of Financial Informati

Schedule of Financial Information for ProGold LLC (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Current Assets	$ 7,837		$ 6,140
Total Assets	28,184		27,952
Current Liabilities	1		205
Long-Term Liabilities
Total Liabilities and Members’ Equity	28,184		27,952
ProGold LLC
Current Assets	68	$ 241	4,873
Long-Term Assets	39,317	39,958	43,320
Total Assets	39,385	40,199	48,193
Current Liabilities	45	2,812	3,903
Long-Term Liabilities		2,083	1,833
Total Liabilities	45	4,895	5,736
Members’ Equity	39,340	35,304	42,457
Total Liabilities and Members’ Equity	39,385	40,199	48,193
Rent Revenue on Operating Lease	6,534	4,548	21,045
Expenses	895	682	3,865
Net Income	$ 5,639	$ 3,866	$ 17,180

PROGOLD LIMITED LIABILITY COM_3

PROGOLD LIMITED LIABILITY COMPANY (Details Narrative)	3 Months Ended
	Mar. 31, 2022
Equity Method Investment, Ownership Percentage Prior to Acquisition	49.00%
Option Agreement Description	On March 1, 2022, pursuant to an Option Agreement by and between Cargill and American Crystal, and a Consent Agreement by and among the Cooperative, Cargill, and American Crystal, each effective January 1, 2018, Cargill purchased a 50% interest in ProGold LLC from American Crystal, while the Cooperative purchased the remaining 1% of ProGold LLC held by American Crystal.
Equity Method Investment,Ownership Percentage After Acquisition	50.00%
Percentage of Ownership Acquired	1.00%
American Crystal Sugar Company
Equity Method Investment, Ownership Percentage Prior to Acquisition	51.00%
Equity Method Investment,Ownership Percentage After Acquisition	0.00%
Cargill, Inc.
Equity Method Investment, Ownership Percentage Prior to Acquisition	0.00%
Equity Method Investment,Ownership Percentage After Acquisition	50.00%

Schedule of Fair Value of Inves

Schedule of Fair Value of Investments Held to Maturity Based on Level 2 Inputs (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Net Investment Income [Line Items]
Fair Value	$ 4,577	$ 5,294
Corporate Bond Securities [Member]
Net Investment Income [Line Items]
Fair Value	1,946	2,227
Fixed Income Funds [Member]
Net Investment Income [Line Items]
Fair Value	2,533	2,619
Money Market Funds [Member]
Net Investment Income [Line Items]
Fair Value	98	448
Fair Value, Inputs, Level 2 [Member]
Net Investment Income [Line Items]
Fair Value	4,577	5,294
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member]
Net Investment Income [Line Items]
Fair Value	1,946	2,227
Fair Value, Inputs, Level 2 [Member] | Fixed Income Funds [Member]
Net Investment Income [Line Items]
Fair Value	2,533	2,619
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Net Investment Income [Line Items]
Fair Value	$ 98	$ 448

Schedule of Investments Held to

Schedule of Investments Held to Maturity (Details) $ in Thousands	Mar. 31, 2022USD ($)
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract]
Due in 1 year or less	$ 1,085
Due in 2 to 5 years	847
Greater than 5 years	115
Total	2,047
Debt Securities, Held-to-Maturity, Fair Value, Maturity [Abstract]
Due in 1 year or less	982
Due in 2 to 5 years	857
Greater than 5 years	107
Total	$ 1,946

Schedule of Bond Maturities (De

Schedule of Bond Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Summary of Investment Holdings [Line Items]
Amortized Cost	$ 4,678	$ 5,299
Unrealized Gains	26	41
Unrealized Losses	(127)	(46)
Fair Value	4,577	5,294
Corporate Bond Securities [Member]
Summary of Investment Holdings [Line Items]
Amortized Cost	2,047	2,232
Unrealized Gains	26	41
Unrealized Losses	(127)	(46)
Fair Value	1,946	2,227
Fixed Income Funds [Member]
Summary of Investment Holdings [Line Items]
Amortized Cost	2,533	2,619
Fair Value	2,533	2,619
Money Market Funds [Member]
Summary of Investment Holdings [Line Items]
Amortized Cost	98	448
Fair Value	$ 98	$ 448

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Employee Benefit Plans
Fair Value of Plan			$ 910,000	$ 935,000
Amount of Benefit Obligation			718,000	$ 752,000
Employer Contributions	$ 0	$ 0	$ 0

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)buInstallment$ / bu	Mar. 31, 2021USD ($)
Disaggregation of Revenue [Line Items]
Annual Delivery of Bushels of Corn | bu	15,490,480
Annual Cooperative Fee for Corn Delivery	$ 60,000
Number Of Installments | Installment	4
Incentive Payment Per Bushel to Members on Delivery of Corn under Method A | $ / bu	0.05
Agency Fee Per Bushel for Corn Delivered Using Method B | $ / bu	0.02
Corn Revenue	$ 30,302,000	$ 23,501,000
Sales Channel, Directly to Consumer [Member]
Disaggregation of Revenue [Line Items]
Total	11,800,000	9,000,000
Sales Channel, Through Intermediary [Member]
Disaggregation of Revenue [Line Items]
Total	$ 18,500,000	$ 14,500,000

DISTRIBUTIONS TO MEMBERS (Detai

DISTRIBUTIONS TO MEMBERS (Details Narrative) - USD ($)	Feb. 16, 2022	Feb. 26, 2021
Distributions To Members
Distributions to Members	$ 2,168,667	$ 2,013,762
Distribution to members per outstanding membership unit	$ 0.14	$ 0.13

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Line Of Credit
Line Of Credit Maximum Borrowing Capacity	$ 2,000,000
Line Of Credit	$ 0	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	3 Months Ended
	Mar. 31, 2022USD ($)Installment
Commitments And Contingencies
Annual Contractual Payments to Cargill for Procurement of Corn | $	$ 60,000
Number Of Installments | Installment	4