10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

xQuarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

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)

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, and (2) has been subject to such filing requirements for the past 90 days. YES x NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).  YES  x  NO  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Act).  YES  o  NO  x

As of August 10, 2015 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	11
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	12
SIGNATURES	14

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

GOLDEN GROWERS COOPERATIVE

BALANCE SHEETS

(In Thousands)

	June 30, 2015 (Unaudited)		December 31, 2014 (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	785	$	2,483
Short-Term Investments	220		218
Prepaids and Other Current Assets	110		220
Total Current Assets	1,115		2,921
Property and Equipment, Net	3		4
Investment in ProGold Limited Liability Company	28,276		31,344
Total Assets	$	29,394	$	34,269
LIABILITIES AND MEMBERS’ EQUITY
Current Liabilities:
Accrued Liabilities	5		216
Total Current Liabilities	5		216
Members’ Equity
Members’ Equity	29,389		34,053
Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of June 30, 2015 and December 31, 2014
Total Members’ Equity	29,389		34,053
Total Liabilities and Members’ Equity	$	29,394	$	34,269

See Notes to Financial Statements

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GOLDEN GROWERS COOPERATIVE

STATEMENTS OF OPERATIONS

(In Thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
OPERATIONS
Corn Revenue	$	15,910		$	15,261		$	34,915		$	36,115
Corn Expense	(15,932		)	(15,281		)	(34,959		)	(36,157		)
Net Income from ProGold Limited Liability Company	1,066			1,832			2,390			3,187
General & Administrative Expenses	(139		)	(199		)	(352		)	(409		)
Net Income from Operations	905			1,613			1,994			2,736
Interest Income	2			3			4			6
Net Income Before Income Tax	907			1,616			1,998			2,742
Income Tax Provision	—			—			—			—
Net Income	$	907		$	1,616		$	1,998		$	2,742
Weighted Average Units Outstanding	15,490,480			15,490,480			15,490,480			15,490,480
Earnings per Membership Unit Primary and Fully Diluted	$	0.06		$	0.10		$	0.13		$	0.18

See Notes to Financial Statements

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GOLDEN GROWERS COOPERATIVE

STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six Months Ended
	June 30, 2015			June 30, 2014
Cash Flows from Operating Activities
Net Income	$	1,998		$	2,742
Net (Income) from ProGold Limited Liability Company	(2,390		)	(3,187		)
Depreciation	1			1
Changes in Assets and Liabilities
Short-Term Investments	(2		)	—
Prepaids and Other Current Assets	110			9
Accrued Liabilities	(211		)	1
Net Cash Used in Operating Activities	(494		)	(434		)
Cash Flows from Investing Activities
Distribution received from ProGold LLC	5,458			5,502
Net Cash Provided by Investing Activities	5,458			5,502
Cash Flows from Financing Activities
Member distributions paid	(6,662		)	(6,507		)
Net Cash Used by Financing Activities	(6,662		)	(6,507		)
Increase (Decrease) in Cash and Cash Equivalents	(1,698		)	(1,439		)
Cash and Cash Equivalents, Beginning of Period	2,483			3,154
Cash and Cash Equivalents, End of Period	$	785		$	1,715

See Notes to Financial Statements

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GOLDEN GROWERS COOPERATIVE

NOTES TO FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014

NOTE 1 — BASIS OF PRESENTATION

The financial statements of the Golden Growers Cooperative (the “Cooperative”) for the six-month periods ended June 30, 2015 and 2014 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, 2014. The results of operations for the six-month period ended June 30, 2015, are not necessarily indicative of the results for the entire fiscal year ending December 31, 2015.

NOTE 2 — EXPENSES

The Cooperative contracts with Cargill, Incorporated in connection with the procurement of corn and other agency services which include payments of $92,000 annually and terminates on December 31, 2017.

NOTE 3 — PROGOLD LIMITED LIABILITY COMPANY

The Cooperative has a 49% ownership interest in ProGold Limited Liability Company (“ProGold LLC”).  Following is summary financial information for ProGold LLC, which were derived from the monthly unaudited financial statements of ProGold LLC:

	June 30,				December 31,
(In Thousands)	2015		2014		2014
Current Assets	$	2,400	$	179	$	2,375
Long-Term Assets	58,538		68,418		65,019
Total Assets	$	60,938	$	68,597	$	67,394
Current Liabilities	$	2,633	$	827	$	2,627
Long-Term Liabilities	600		1,000		800
Total Liabilities	3,233		1,827		3,427
Members’ Equity	57,705		66,770		63,967
Total Liabilities and Members’ Equity	$	60,938	$	68,597	$	67,394
Rent Revenue on Operating Lease	$	11,415	$	12,484	$	24,125
Expenses	6,539		5,979		11,919
Net Income	$	4,876	$	6,505	$	12,206

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NOTE 4 — INVESTMENTS

Fair value is defined as the 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.  Quoted market prices are generally not available for the Cooperative’s financial instruments.  Fair values are based on judgments regarding anticipated cash flows, future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates involve uncertainties and matters of judgment, and therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.

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 June 30, 2015 and December 31, 2014 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2015:
Money Market & CD’s	$	220	$	—	$	—	$	220
December 31, 2014:
Money Market & CD’s	$	218	$	—	$	—	$	218

NOTE 5 — EMPLOYEE BENEFIT PLANS

Pension Plan — In December 2012, the Cooperative approved a change to freeze the Cooperative’s defined benefit plan. As a result, no additional benefits will accrue to participants in the plan and no new employees are eligible for the plan.

The following schedules provide the components of Net Periodic Benefit Cost for the six-months ended June 30, 2015 and June 30, 2014 (in thousands):

	June 30,			June 30,
	2015			2014
Service Cost	$	—		$	—
Interest Cost	40			40
Expected return on plan assets	(46		)	(46		)
Amortization of net (gain) loss	33			—
Net periodic pension cost	$	27		$	(6	)

Through the six-months ended June 30, 2015, the Cooperative has made $11,000 in contributions as compared to $48,000 through the six-months ended June 30, 2014.  The Cooperative anticipates making $25,000 in contributions in 2015.  Contributions in 2014 totaled $74,000.

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NOTE 6 — RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Cooperative has not been impacted by any new Accounting Pronouncements since the filing of its most recent Annual Report on Form 10-K.

NOTE 7 — CHANGE IN ACCOUNTING STANDARDS

The Cooperative has not been impacted by any changes in Accounting Standards since the filing of its most recent 10-K.

NOTE 8 — DISTRIBUTIONS TO MEMBERS

On February 23, 2015, the Cooperative made distributions to its members totaling $3,253,001 or $.21 per outstanding membership unit. On June 29, 2015, the Cooperative made distributions to its members totaling $3,407,906 or $0.22 per outstanding unit.

NOTE 9 — 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.

NOTE 10 — SUBSEQUENT EVENTS

The Cooperative has evaluated events through the date the financial statements were issued for potential recognition or disclosure in the June 30, 2015 financial statements.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

This report 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.  See the discussion of “Risk Factors” in the Cooperative’s Annual Report for the 2014 fiscal year on Form 10-K.

Overview

Golden Growers Cooperative is a value added agricultural cooperative association governed under Minnesota Statutes Chapter 308B owned by 1,562 members in the business of providing value to our members by facilitating their delivery of corn to the corn wet-milling facility owned by ProGold Limited Liability Company (“ProGold”), a Minnesota limited liability company in which the Cooperative owns a 49% membership interest.  ProGold leases its corn wet milling facility to Cargill Incorporated who uses the facility to process corn into high fructose corn syrup.  We accomplish our business on behalf of our members through our contract relationships with all of the parties involved in the ownership and operation of the facility.  From an income production perspective our membership interest in ProGold is our primary asset that, in addition to giving us the right to receive distributions from ProGold, also provides our members with additional value for the delivery of their corn for processing.  Annually we are required to deliver approximately 15,490,480 bushels of corn to Cargill for processing at the ProGold facility.

Any person residing in the United States can own our units as long as that person delivers or provides for the delivery of corn for processing at the ProGold facility. Ownership of our membership units requires our members to deliver corn to the Cooperative for processing in proportion to the number of units each member holds. Currently 15,490,480 of our units are issued and outstanding.  The Cooperative’s income and losses are allocated to our 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 our income (or loss).  In this way, we operate on a cooperative basis.

To hold our units a member is required to execute a Uniform Member Agreement that obligates the member to deliver corn to us and an Annual Delivery Agreement by which each member annually elects the method the member would like to use 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 us either at the facility or another location reasonably designated by us.  Under Method B, a member appoints us as its agent to arrange for the acquisition and delivery of the required bushels of corn on the member’s behalf.  We appoint Cargill as our agent to arrange for the delivery of the corn by our members who elect to deliver corn using Method A, and we appoint Cargill as our agent to acquire corn on our behalf for our members who elect to deliver corn using Method B.  If a member elects to deliver corn using Method B, the price per bushel paid to the member is equal to the price per bushel paid by Cargill to acquire the corn as our 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 us 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 our Board of Directors. While the Cooperative is financially responsible for the various payments to the

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members for corn, Cargill, serving as the Cooperative’s administrative agent, issues payments to members for corn on the Cooperative’s behalf.

Annually, the Cooperative notifies Cargill of the volume of Method A corn to be delivered by each Method A member.  Once we provide notification to Cargill of the volume 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.  That Method A member then directly contracts with Cargill for the contract price agreed upon for the corn or, in the absence of an agreed upon price, the market price per bushel for corn delivered on the day on which the corn is delivered and accepted at the facility.  With respect to all Method A corn that is delivered, Cargill pays to the Cooperative the aggregate purchase price for corn purchased from our members, and then, on our behalf, makes individual payments for corn directly to our members.  In the event a Method A member 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 and is priced at the current closing delivery corn price established by Cargill at the facility on the day it is unloaded.  In the event a Method A member 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, but this purchased corn is not credited to the Method A member’s account.  If a Method A member fails to fully satisfy the corn delivery requirement, Cargill purchases replacement corn for which we reimburse 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.  In addition, if a Method A member fails to deliver all of the corn it was obligated to deliver, that member’s allocation of our profit or losses and any cash distributions is proportionately reduced and we may terminate the member’s membership.

Our Bylaws establish a Method A delivery pool and a Method B delivery pool.  Generally, our income and/or losses are allocated annually based on the percentage of bushels of corn our members elect to deliver using either Method A or Method B.  Regardless of the actual percentage allocation between our members who deliver bushels of corn using Method A or Method B, our Bylaws require us to annually allocate at least 25% of our 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 our members using Method A.

For the 2015 fiscal year, 29% of members elected to deliver corn by Method A and 71% elected to deliver corn by Method B.  This election will result in 29% of the Cooperative’s income and/or losses and 29% of any cash distributions being allocated to the Method A pool in fiscal year 2015, which reflects the actual percentage of members who elected to deliver corn using Method A and does not result in reallocation to meet the 25% requirement set forth in our governing documents.

Results of Operations

Comparison of the Six Months Ended June 30, 2015 and 2014

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.  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, required licensing and bonding expenses, and the service fee paid to Cargill.

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For the six-months ended June 30 2015, the Cooperative sold approximately 8.1 million bushels of corn compared to 8.0 million bushels of corn sold during the six-months ended June 30, 2014.  For the six-months ended June 30, 2015 and 2014, the Cooperative recognized corn revenue of $34,915,000 and $36,115,000, respectively, a decrease of 3%, due primarily to a decrease in the selling price per bushel of corn sold in 2015 compared to 2014.  The Cooperative recognized corn expense of $34,959,000 and $36,157,000 in 2015 and 2014 respectively, a decrease of 3% due primarily to a decrease in the cost per bushel of corn purchased in 2015 compared to 2014.  For the six-months ended June 30, 2015 and 2014, its members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility 2,517,000 and 2,329,000, bushels of corn respectively using Method A, and 5,587,000 and 5,718,000 bushels of corn respectively, using Method B. For the six-months ended June 30, 2015 and 2014, the Cooperative recognized expense of $46,000 and $46,000, respectively, in connection with costs incurred to Cargill in connection with the Cooperative’s corn marketing operation.

The Cooperative derived income from ProGold for the six-months ended June 30, 2015, of $2,390,000 compared to $3,187,000 for the six-months ended June 30, 2014.

General and Administrative Expenses. The Cooperative’s general and administrative expenses include salaries and benefits, professional fees and fees paid to our board of directors. The general and administrative expenses for the six-months ended June 30, 2015, was $352,000 compared to $409,000 for the six-months ended June 30, 2014.

Interest Income. Interest income for the six-months ended June 30, 2015, was $4,000 compared to $6,000 for the six-months ended June 30, 2014.

Comparison of the Three Months Ended June 30, 2015 and 2014

Revenues.  For the three-months ended June 30, 2015, the Cooperative sold approximately 3.7 million bushels of corn compared to 3.8 million bushels of corn sold during the three-months ended June 30, 2014.  For the three-months ended June 30, 2015 and 2014, the Cooperative recognized corn revenue of $15,910,000 and $15,261,000, respectively, an increase of 4%, due primarily to an increase in the selling price per bushel of corn sold in 2015 compared to 2014.  The Cooperative recognized corn expense of $15,932,000 and $15,281,000 in 2015 and 2014 respectively, an increase of 4% due primarily to an increase in the cost per bushel of corn purchased in 2015 compared to 2014.  For the three-months ended June 30, 2015 and 2014, its members, on the Cooperative’s behalf, delivered to Cargill for processing at the facility 979,000 and 959,000, bushels of corn respectively using Method A,  and 2,786,000 and 2,861,000 bushels of corn respectively, using Method B. For the three-months ended June 30, 2015 and 2014, the Cooperative recognized expense of $23,000 and $23,000, respectively, in connection with costs incurred to Cargill in connection with the Cooperative’s corn marketing operation.

The Cooperative derived income from ProGold for the three-months ended June 30, 2015, of $1,066,000 compared to $1,832,000 for the three-months ended June 30, 2014.

General and Administrative Expenses. The Cooperative’s general and administrative expenses include salaries and benefits, professional fees and fees paid to our board of directors. The general and administrative expenses for the three-months ended June 30, 2015, was $139,000 compared to $199,000 for the three-months ended June 30, 2014.

Interest Income. Interest income for the three-months ended June 30, 2015, was $2,000 compared to $3,000 for the three-months ended June 30, 2014.

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Liquidity and Capital Resources

The Cooperative’s working capital at June 30, 2015 was $1,110,000 compared to $1,929,000 at June 30, 2014.

The Cooperative had no long-term debt as of June 30, 2015 or June 30, 2014.

The Cooperative used operating cash flows of $494,000 for the six-month period ended June 30, 2015 compared to $434,000 for the six-month period ended June 30, 2014.

The Cooperative received cash distributions from ProGold totaling $5,458,000 for the six-month period ended June 30, 2015 compared to $5,502,000 for the six-month period ended June 30, 2014.

The Cooperative paid cash distributions to its members totaling $6,662,000 for the six-month period ended June 30, 2015 compared to $6,507,000 for the six-month period ended June 30, 2014.

Management believes that non-cash working capital levels 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.

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.  These amounts are accrued quarterly and then confirmed at the end of the fiscal year.  The total annual Method B agency fee was determinable once the members completed their delivery method determination prior to January 1, 2015.  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 remainder of the Cooperative’s significant accounting policies are described in Note 2, Summary of Significant Accounting Polices, of the Notes to the Financial Statements included in the Cooperative’s Annual Report on Form 10-K for the fiscal year ending December 31, 2014.  The Cooperative’s critical accounting estimates are discussed in Item 7, Management’s Discussion and Analysis of Financial Conditions and Results of Operations, included in the Cooperative’s Annual Report Form 10-K for the fiscal year ended December 31, 2014.  There has been no significant change in the Cooperative’s significant accounting policies or critical accounting estimates since the end of fiscal 2014.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss to future earnings, to fair values or to future cash flows that may result from changes in the price of a financial instrument.  The value of a financial instrument may change as a result of changes in the interest rates, exchange rates, commodity prices, equity prices and other market changes.  Market risk is attributed to all market-risk sensitive financial instruments, including long term debt.

Due to the pass through nature of the Cooperative’s marketing of its members’ corn, the Cooperative does not believe that it is subject to any material market risk exposure with respect to interest

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rates, exchange rates, commodity prices, equity prices and other market changes that would require disclosure under 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 June 30, 2015.  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 in ensuring 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.

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

None

Item 1A.  Risk Factors

For a detailed discussion of certain risk factors that could affect the Cooperative’s operations, financial condition or results for future periods, see Item 1A, Risk Factors, in the Cooperative’s Annual Report for the fiscal year ended December 31, 2014 on Form 10-K.

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.

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Item 6.  Exhibits

Exhibit No.	Exhibit Description
2.1	Articles of Merger of Golden Growers Cooperative and Golden Growers Cooperative is incorporated by reference to Exhibit 2.1 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
2.2	Certificate of Conversion of Golden Growers Cooperative is incorporated by reference to Exhibit 2.2 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
3.1	Amended and Restated Articles of Organization of Golden Growers Cooperative is incorporated by reference to Exhibit 3.1 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
3.2	Amended and Restated Bylaws of Golden Growers Cooperative dated September 1, 2009 is incorporated by reference to Exhibit 3.2 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.1	Form of Uniform Member Agreement is incorporated by reference to Exhibit 10.2 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.2	Form of Annual Delivery Agreement is incorporated by reference to Exhibit 10.3 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.3	Amended and Restated Member Control Agreement between Golden Growers Cooperative, Golden Growers Cooperative and ProGold Limited Liability Company dated September 1, 2009 is incorporated by reference to Exhibit 10.4 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.4	Operating Agreement between Golden Growers Cooperative, Golden Growers Cooperative and ProGold Limited Liability Company is incorporated by reference to Exhibit 10.5 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.5	Amended and Restated Grain Services Agreement between Golden Growers Cooperative and Cargill, Incorporated is incorporated by reference to Exhibit 10.6 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
10.6	Amended and Restated Corn Supply Agreement between Golden Growers Cooperative and Cargill, Incorporated is incorporated by reference to Exhibit 10.7 from the Cooperative’s Registration Statement on Form 10 (File No. 10783579) filed April 30, 2010.
99.1	Audited Financial Statements of ProGold Limited Liability Company for the years ended August 31, 2013 and August 31, 2014 is incorporated by reference to Exhibit 99.1 from the Cooperative’s Quarterly Report on Form 10-Q (File No. 131216599) filed on November 14, 2014.

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Exhibit No.	Exhibit Description
	Filed herewith electronically
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-15(e)/15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from Golden Growers Cooperative’s Quarterly Report on Form 10-Q for the period ended June 30, 2015, filed with the SEC on August 14, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) Balance Sheet for at June 30, 2015 and December 31, 2014, (ii) Statements of Operations and Comprehensive Income for the six-month periods ended June 30, 2015 and 2014, (iii) Statement of Cash Flows for the six-month periods ended June 30, 2015 and 2014, and (iv) Notes to Financial Statements.**

* A management contract or compensatory plan required to be filed with this report.

**Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act of the Exchange Act, except as shall be expressly set forth by specific reference to such filings.

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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: August 14, 2015	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President,
	Chief Financial Officer
	Duly Authorized Officer

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EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Scott Stofferahn, certify that:

1.I have reviewed this 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 our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us 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 our 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 our 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 auditors and the audit committee of the registrant’s board of directors (or person’s 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.

August 14, 2015	/s/ Scott Stofferahn
	Scott Stofferahn
	Executive Vice President, Chief Executive Officer and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATE PURSUANT TO SECTION 906

OF SARBANES — OXLEY ACT OF 2002

The undersigned, Scott Stofferahn, Executive Vice President, serving as Chief Executive Officer and Chief Financial Officer of Golden Growers Cooperative, (the “Company”), does hereby certify that to his knowledge:

1.             The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 (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.             Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed this 14th day of August, 2015.

By:	/s/ Scott Stofferahn
	Name:	Scott Stofferahn
	Title:	Executive Vice President, Chief Executive Officer and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	1 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES
Annual contractual payments to Cargill for procurement of corn	$ 92,000	$ 92,000

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INVESTMENTS

6 Months Ended

Jun. 30, 2015

INVESTMENTS

INVESTMENTS

NOTE 4 — INVESTMENTS

Fair value is defined as the 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.  Quoted market prices are generally not available for the Cooperative’s financial instruments.  Fair values are based on judgments regarding anticipated cash flows, future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates involve uncertainties and matters of judgment, and therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.

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 June 30, 2015 and December 31, 2014 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2015:
Money Market & CD’s	$	220	$	—	$	—	$	220
December 31, 2014:
Money Market & CD’s	$	218	$	—	$	—	$	218

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PROGOLD LIMITED LIABILITY COMPANY

6 Months Ended

Jun. 30, 2015

PROGOLD LIMITED LIABILITY COMPANY

PROGOLD LIMITED LIABILITY COMPANY

NOTE 3 — PROGOLD LIMITED LIABILITY COMPANY

The Cooperative has a 49% ownership interest in ProGold Limited Liability Company (“ProGold LLC”).  Following is summary financial information for ProGold LLC, which were derived from the monthly unaudited financial statements of ProGold LLC:

	June 30,				December 31,
(In Thousands)	2015		2014		2014
Current Assets	$	2,400	$	179	$	2,375
Long-Term Assets	58,538		68,418		65,019
Total Assets	$	60,938	$	68,597	$	67,394
Current Liabilities	$	2,633	$	827	$	2,627
Long-Term Liabilities	600		1,000		800
Total Liabilities	3,233		1,827		3,427
Members’ Equity	57,705		66,770		63,967
Total Liabilities and Members’ Equity	$	60,938	$	68,597	$	67,394
Rent Revenue on Operating Lease	$	11,415	$	12,484	$	24,125
Expenses	6,539		5,979		11,919
Net Income	$	4,876	$	6,505	$	12,206