LINCOLN, Neb. (DTN) -- Plans for Golden Growers Cooperative and Cargill Inc. to form a long-term joint venture to operate a corn wet milling plant in Wahpeton, North Dakota, have been called off, the companies announced, as the ongoing downturn in the agriculture economy has led to a change of plans.
Cargill said in a joint news release that it intends to buy out Golden's 50% interest in ProGold LLC for about $81 million by sometime late in 2026.
Cargill has been leasing the ProGold corn wet milling plant since 1997. In 2022, Cargill purchased 50% interest in ProGold from American Crystal Sugar and became 50/50 owners with Golden Growers Cooperative. The current lease expires on Dec. 31, 2026.
"At the same time, Cargill and Golden Growers established certain conditions that would need to be met with an intention of forming a long-term joint venture," the companies said in a news release.
"Due to the economic environment in the past three years, it has become clear that those conditions are unable to be achieved. Cargill has informed Golden Growers that they will work with the cooperative on proceeding with the buyout of Golden Growers' interest in ProGold LLC at the end of the lease period."
Golden Growers Cooperative members will be asked to vote to approve a plan to dissolve the ProGold cooperative in the spring of 2027, according to a news release.
"Over the past 28 years, Cargill has been a trusted partner for Golden Growers and our farmer members," Golden Growers Chairman Brett Johnson said in a statement.
"While we would have preferred to maintain a long-term interest in the plant, we understand that circumstances beyond our control have limited our ability to accomplish that goal. Our cooperative and its members can be proud of what they accomplished by building the first major corn processing facility in the region. Cargill's continued capital investment in the facility shows their intent to maintain a continued presence in the region well into the future."
Andy Joehl, vice president of trading and risk management at Cargill, said in a statement the company plans to make no changes at ProGold once the mill is sold.
"Golden Growers has been a tremendous partner over the years," Joehl said.
"The facility in Wahpeton has been and will continue to be a leader in safety, a plant our customers value, and a strong demand center for corn in the area. While our partnership with Golden Growers Cooperative will come to an end, there will be no change in our operations at the facility and our partnership with farmers in the area will continue on. We look forward to the future, supporting North Dakota, South Dakota and Minnesota agriculture and are deeply thankful for the years of success with Golden Growers."
Todd Neeley can be reached at todd.neeley@dtn.com
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