Golden Growers Cooperative Reports 11% Revenue Increase to $20.1 Million in Q1 2025

Golden Growers Cooperative reported its financial results for the first quarter of 2025, revealing a revenue increase of 11% to $20.1 million, compared to $18.1 million in the same period last year. The rise in revenue was primarily attributed to an increase in the price per bushel of corn sold. The cooperative's net income for the quarter was $1.6 million, up from $1.5 million in the prior year, maintaining earnings per share at $0.10. The cooperative's total assets decreased to $22.8 million from $24.9 million at the end of 2024, largely due to a reduction in cash and cash equivalents.

In terms of operational performance, the cooperative sold approximately 4.7 million bushels of corn during the quarter, an increase from 4.4 million bushels in the same quarter of 2024. Members delivered 1.8 million bushels using Method A and 2.9 million bushels using Method B, reflecting a slight increase in both delivery methods. The cooperative's expenses also rose by 11% to $20.1 million, driven by higher corn purchase prices. General and administrative expenses increased to $258,000 from $215,000, attributed to higher legal and consulting costs.

A significant development for Golden Growers Cooperative is the approval of a Plan of Liquidation and Dissolution by its members during the annual meeting in March 2025. This plan includes the sale of the cooperative's 50% interest in ProGold LLC to Cargill, which is expected to occur within 30 days following the expiration of the facility lease in December 2026. The cooperative has filed a Notice of Intent to Dissolve with the Minnesota Secretary of State, marking a strategic shift in its operational focus.

The cooperative's working capital improved to $6.9 million as of March 31, 2025, compared to $5.7 million a year earlier, primarily due to the maturity of corporate bonds. The cooperative also reported cash distributions to members totaling $3.6 million for the quarter, an increase from $2.8 million in the same period last year. The cooperative maintains a $2 million line of credit, which remains unused, ensuring liquidity for future operations.

Looking ahead, management expressed confidence in the cooperative's ability to fund its operations for the foreseeable future, supported by cash reserves and available credit. However, they acknowledged potential risks, including fluctuations in corn prices and the impact of market conditions on operations. The cooperative's strategic decisions, including the planned dissolution, are expected to shape its future direction as it navigates the evolving agricultural landscape.