SOLID GROUND

AMERICAN CRYSTAL SUGAR COMPANY ANNUAL REPORT 2016

American Crystal Sugar Company is a world-class agricultural cooperative specializing in the production of sugar and related agri-products. American Crystal is owned by about 2,650 shareholders who raise approximately one-third of the nation’s sugarbeet acreage in the Red River Valley of Minnesota and North Dakota. Additional acres are contracted in eastern Montana and western North Dakota. As the largest beet sugar producer in the United States, the company utilizes innovative farming practices, low-cost production methods, and sales and marketing leadership to produce and sell about 15 percent of America’s finest quality sugar. American Crystal operates sugar factories in Crookston, East Grand Forks, and Moorhead, Minnesota; Drayton and Hillsboro, North Dakota; and Sidney, Montana, under the name Sidney Sugars Incorporated. The company’s technical services center and corporate headquarters are also located in Moorhead.

Located in Bloomington, Minnesota, United Sugars Corporation markets American Crystal’s sugar to retail and industrial customers throughout the nation. Midwest Agri-Commodities Company, based in San Rafael, California, globally markets American Crystal’s agri-products such as sugarbeet pulp, molasses, CSB, and betaine.

FINANCIAL

HIGHLIGHTS2016 2015

Tons of Sugarbeets Purchased 11,083 9,517

Sugar Content of Sugarbeets 17.8% 17.4%

Hundredweight of Sugar Produced 31,180 27,255

Gross Beet Payment $ 551,588 $ 418,868

Per Ton Purchased $ 49.77 $ 44.01

Per Acre Harvested $ 1,389 $ 1,019

Net Beet Payment $ 507,286 $ 399,847

Per Ton Purchased $ 45.77 $ 42.01

Per Acre Harvested $ 1,277 $ 972

This Annual Report may include certain forward-looking statements regarding, among other things, the Company’s strategies and anticipated trends in the Company’s business. These forward-looking statements are based largely on the Company’s expectations and the information available to the Company as of the date hereof, and are subject to a number of risks and uncertainties, certain of which are beyond the Company’s control. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this Annual Report will in fact transpire or prove to be accurate.

(Red River Valley Information Only, Amounts in Thousands, Except Percentages, Per-Ton-Purchased and Per-Acre-Harvested Amounts)

1

OUR LAND. OUR PEOPLE. OUR BUSINESS.

American Crystal Sugar Company was built on solid ground more than

125 years ago. We endure today thanks to a strong business model

that has guided our company though ever-shifting circumstances. And

we sustain success by embracing lessons that have stood the test of

time while continuing to evolve and improve the production of our land,

our people and our business. It’s how we ensure long-term prosperity

for our customers, shareholders, employees and communities.

TODGERMachinist East Grand Forks, Minn.

BARBPackaging Tech IV Moorhead, Minn.

SHERRYPackaging Tech IV Moorhead, Minn.

BRIANShareholder Moorhead District

3 2

650 2,600RAIL CARS BULK TRUCKS

OR

26,000 SQUARE-FOOT BULKSTORAGE DOME

SUGAR DOME CAPACITY EQUAL TO

WITH AT TENTION TO RESPONSIVE CUSTOMER SERVICE, AMERICAN CRYSTAL CONTINUES TO CHART A COURSE OF AGRICULTUR AL ADVANCEMENT AND OPER ATIONAL EXCELLENCE.

FINANCIAL RESULTS

American Crystal’s Fiscal Year 2016 gross beet payment to shareholders improved to $49.77 from our previous year performance of $44.01. Contributing to this result was a record yield averaging 27.9 tons per acre, a record average daily slice rate for our factories of 38,461 tons per day, and modestly improved sugar prices for our products. These positives were offset somewhat by higher than expected sugarbeet storage losses due to a warm 2015-2016 winter and the continuation of lower agri-product prices.

Bolstered by the support of our shareholders, investments to strengthen core functions remain at the forefront of American Crystal’s strategic options. Our financial position is solid with a strong balance sheet and workable debt-to-equity ratio as we calculate opportunities to advance results.

TRADE & POLICY

American Crystal had three main areas of focus in government affairs in 2016. First, we continued our ever-present work to defend U.S. sugar policy against legislative attacks in Washington, DC. While we were successful, we need to remain battle ready as opposition groups persist in their assaults using deceptive public relations, lobbying and political activity.

Our second focus was on legislation to create a nationwide biotech food labeling system. The legislation was a major victory for U.S. agriculture, including the sugarbeet industry. American Crystal joined with a large coalition of agriculture groups and food companies in this effort. The law is undergoing the regulation-writing process at the USDA.

Finally, American Crystal worked with the rest of the U.S. sugar industry, the USDA, and the Department of Commerce, in highlighting deficiencies in the suspension agreements that govern Mexican sugar exports to the U.S. market. The sugar industry is recommending that our government alter the suspension agreements to ensure that they meet their intended purpose of eliminating injury to the U.S. sugar industry.

MARKET IMPACTS

In 2016, demand growth for sugar in the U.S. was flat, coupled with an oversupplied market from increased production and additional USDA approved TRQ and Mexican imports. Net selling prices for our sugar sold through United Sugars remained higher in 2016 compared to 2015 as many of our customers entered into longer positions following the suspension agreement with Mexico. However, late year pricing moved lower as holes in the suspension agreement were exploited and excess inventories pressured the market.

2016 prices for American Crystal’s agri-products sold through Midwest Agri Commodities saw continued decline, in line with most other competing feed commodities. Demand for our beet pulp in North America was strong while our exports to Asia and Europe were under pressure from ample supplies coming out of Egypt and Russia, and a steadily shrinking Asian market. A significant development came with the signing of an agreement that allows the export of U.S. beet pulp pellets to China. Trade is expected to begin in 2017.

A visible example of our investment strategy is our sugar dome located in Montgomery, IL (45 miles west of Chicago). Financed by American Crystal and operated by our marketing entity, United Sugars, this is the largest sugar transfer facility in the U.S. and furthers our ability to readily service regional customers.

W O R L D - C L A S S S U G A R T R A N S L O A D IN G FA C IL I T Y

FORWARD

POSITIONING

54

FEET FEET150 240TO

FEET FEET140 225TO

LIME KILN HEIGHT ELEVATED FROM

PULP DRYER STACK ELEVATED FROM

OUR CORE ACTIVITIES YIELDED RESULTS, IN LARGE PART DUE TO CROP QUALIT Y, STORAGE ASSET UTILIZATION, MANUFACTURING EFFICIENCY, AND THE APPLIED SKILLS OF OUR EMPLOYEES.

2015 CROP, HARVEST & STORAGE

Planting of the 400,072-acre 2015 sugarbeet crop began the second week of April and ended May 8. In general, early seeding, good emergence and stand establishment followed by a long, warm growing season and timely rains progressed the 2015 crop toward impressive yields.

Pre-pile harvest started August 17, the second earliest date in company history. Full stockpile harvest began October 1. With cooperation from the weather, shareholders and piling site teams achieved a record performance by receiving over 1 million tons a day for seven consecutive days. Harvest concluded October 24. Total tons harvested were just over 11 million with an average per acre yield of 27.9 tons, 17.8 percent sugar content, and record low 1.73 percent dirt tare.

While the sugarbeets were piled in clean, dry condition, they developed storage challenges because of dehydration and above average temperatures from an El Nino winter. The proactive and innovative work by our storage experts helped minimize pile deterioration. They also used all available cold weather opportunities to deep freeze the piles. While discarded tonnage was held to about 37,000 tons, providing the factories with a good quality blend of sugarbeets proved challenging.

2015-2016 OPERATIONS

Our five Red River Valley factories ran well with very little mechanical downtime, only slowing throughput rates to manage sugar recovery as sugarbeet quality varied during the processing campaign. Our workforce kept their focus on steady-state operations throughout a 264-day processing campaign and set a valley-wide average daily slice rate record of 38,461 tons per day. Total production reached 31.2 million hundredweight of sugar and 808,000 tons of agri-products.

FOCUSED INVESTMENTS

We continue to invest in our factories by updating equipment and improving efficiency. This past year at our Hillsboro

factory, we installed new pulp handling equipment, a new stack on the pulp dryer, and replaced a molasses storage tank. A new beet washing roller spray table was installed at the Crookston factory. The East Grand Forks factory replaced the existing pulp pellet station. A new industrial brown sugar packaging line was installed at the Moorhead packaging and warehousing facility.

To ensure environmental compliance, we installed a new cover on a storm water pond at East Grand Forks, and installed powdered activated carbon addition capabilities to Moorhead, Crookston, East Grand Forks, and Drayton for mercury control from our boilers. We also continue to utilize existing odor reducing technologies at all our operating facilities.

To enhance our sugarbeet receiving and storage capabilities, we added 275,000 tons of deep freeze/ventilation assets to four sites: East Grand Forks yard, Drayton yard, Moorhead yard and Midway. In the East Grand Forks yard, we also added a new piler, extended a storage slab, and built another entrance and scale house to improve truck traffic and safety.

SIDNEY SUGARS

The Sidney area growers raised a record yielding 2015 crop that averaged 32.3 tons per acre with 18.73 percent sugar content on 30,940 acres. As a result, the Sidney Sugars factory produced 2.8 million hundredweight of sugar, up 16 percent from the previous year. Slightly increased sugar prices helped reverse the past two financially challenged years.

DELIVERING QUALITY

Furthering our work as the most trusted source of sugar for customers remains a top priority. This past year underscored our commitment with record low industrial sugar customer complaints. Acute attention to food quality and safety throughout production, handling, and shipping processes continues to set us apart.

DISTINCTIVE

PERFORMANCE

In its first full campaign of operation, the new lime kiln (right) at our Hillsboro, ND facility matches the factory’s slice rate and process improvements that have occurred since the plant’s origination in 1974. The factory’s pulp dryer stack (left) was raised above the lime kiln height to properly move the vapor plume away from the kiln’s exterior components and access points.

NE W O P E R AT IN G HE I G H T S

76

DURABLE

ADVANTAGESBUILDING A COMPANY THAT IS STRONG AT ITS CORE GIVES AMERICAN CRYSTAL THE ABILIT Y TO COMPETE AND DELIVER RESULTS IN EVER-CHANGING CIRCUMSTANCES.

INSPIRING SAFETY

We believe our H.E.L.P Safety Coaching program is proving effective as our Company-wide injury incident rate was reduced by 40 percent from the previous year. By empowering employees to speak up and watch out for their coworkers, our aim is to reduce unsafe acts through a culture of safety awareness.

COMMUNITY ROOTS IMPACTS

Through our Community Roots giving program, we actively support communities where our 4,000-plus employees and shareholders live and work to make a positive impact with scholarships, grants, sponsorships, in-kind donations, matching gifts, contributions, and volunteer efforts. This past year, we awarded 94 scholarships to area students, funded 21 grants to local schools and service providers, made numerous gifts to non-profit organizations where our employees volunteer, and impacted hundreds of organizations through our support and sponsorships.

CRYSTAL CAREERS

When employees advance, so does our company. To encourage career progression, we offer leadership development opportunities such as our Crystal College management essentials courses and one-on-one mentoring with American Crystal professionals. To attract talent to our workforce, we offer engineer and agriculture internships and have working relationships with the region’s technical/vocational colleges. To further our reach, we attend middle and high school events to let students know we offer rewarding, thriving careers that are close to, if not in, their hometowns.

2016 CROP & HARVEST

Spring planting started early in the Red River Valley, with 95 percent of the crop planted from mid-April through the first week of May. Wind, freeze, and soil crusting issues caused 6 percent of the total acreage to be replanted. The northern half of the growing region received higher than average rainfall throughout the growing season, initiating

more root disease and pressuring crop growth. In terms of heat and growth potential, the 2016 growing season outpaced the 2015 crop and the 10- and 30-year averages. This pushed yields in the southern region to record tonnage. Sugar content trended lower due to well-hydrated sugarbeets from frequent rains.

Pre-pile harvest commenced August 16 with wet conditions and above average temperatures causing issues getting steady sugarbeet supplies into factories. Full stockpile harvest began on October 1. Rain and heat shutdowns interrupted harvest progress especially in the north. A total of 387,827 acres are available for harvest. Yield disparity ranges from below average yields in the north to unprecedented in the south, averaging above 30 tons per acre.

SOLID GROUND

As we look to the next fiscal year, we are confident American Crystal is operating from a solid competitive position. Our efforts to build the best beet sugar company in the world are ongoing. By working together, we can seize future opportunities to deliver the results our customers, shareholders, employees, and communities deserve.

ROBERT GREEN BOARD CHAIRMAN

THOMAS ASTRUP PRESIDENT AND CEO

Robotic and automated packaging investments are key to keeping pace with consumer demand. The robot pictured is for the new industrial brown sugar packaging line at our Moorhead, Minn. factory, which is delivering cost efficiencies.

IN T E R S E C T IN G HI G H S P E E D A ND Q U A L I T Y

62 MILLIONCONSUMER SUGAR BAGS

7 MILLIONINDUSTRIAL SUGAR BAGS

15,000RAIL AND TRUCK SUGAR SHIPMENTS

98

1 1

AMERICAN CRYSTAL HAS A HISTORY OF PRODUCING EXCELLENT LE ADERSHIP FROM WITHIN OUR COMPANY.

David Berg, our President and CEO for the past 9 years and employee for 29 years, retired at the close of Fiscal Year 2016. American Crystal expresses great gratitude to David for his exemplary service to our cooperative enterprise and we wish him well in retirement.

In March 2016, the Board of Directors elected Tom Astrup as President. He became President and CEO in September 2016. A 22 year employee of American Crystal, Tom has led nearly every functional area of the company. With his knowledge depth and keen business insights, we look forward to what the future holds for American Crystal.

INTERNAL

STRENGTHS

BRIAN ERICKSON Director

JIM NELSON Director

PAUL RUTHERFORD Director

EA

ST

GR

AN

D

FO

RK

S D

IST

RIC

T

CURT KNUTSON Vice Chairman

DONALD ANDRINGA Director

STEVE WILLIAMS Director

CR

OO

KS

TO

N D

IST

RIC

T

WILLIAM HEJL Director

KELLY BRANTNER Director

DALE FISCHER Director

MO

OR

HE

AD

DIS

TR

ICT

DAVID BRASETH Vice President Operations

LISA BORGEN Vice President Administration

DANIEL MOTT Secretary and General Counsel

KEVIN PRICE Vice President Government Relations

SE

NIO

R M

AN

AG

EM

EN

T

TERESA WARNE Vice President Finance

THOMAS ASTRUP President and Chief Executive Officer

BRIAN INGULSRUD Vice President Agriculture

SE

NIO

R M

AN

AG

EM

EN

T

JOHN BRAINARD Director

PERRY SKAURUD Director

DAVID MUELLER Director

HIL

LS

BO

RO

DIS

TR

ICT

ROBERT GREEN Chairman

WILLIAM “BUZZ” BALDWIN Director

KELLY ERICKSON Director

DR

AY

TO

N D

IST

RIC

T

Management’s Report on the Consolidated Financial Statements

The management of American Crystal Sugar Company is responsible for the preparation, integrity and fair presentation of the accompanying consolidated financial statements and related information contained in this Annual Report. The consolidated financial statements, which include amounts based on management’s estimates and judgments, have been prepared in conformity with accounting principles generally accepted in the United States of America.

The Company maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, that transactions are properly recorded and executed in accordance with management’s authorization, and that the financial records provide a solid foundation from which to prepare the consolidated financial statements. These systems are augmented by written policies, an organizational structure providing division of responsibilities and careful selection and training of qualified personnel.

The Company’s consolidated financial statements have been audited by independent auditors CliftonLarsonAllen LLP. The independent auditors were given unrestricted access to all financial records and related data.

The Audit Committee of the Board of Directors meets with the independent auditors and management periodically to review their respective responsibilities and activities and to provide oversight to the Company’s accounting policies, internal controls and the financial reporting process. The independent auditors have free access to the Board of Directors and its Audit Committee, with or without management present, to discuss the scope and results of their audits and the adequacy of the system of internal controls.

Thomas Astrup, President and Chief Executive Officer

Teresa Warne, Vice President – Finance

1 0

1 2 1 3

Independent Auditors’ Report

To the Audit Committee of American Crystal Sugar Company Moorhead, Minnesota

We have audited the accompanying consolidated financial statements of American Crystal Sugar Company and Subsidiaries, which comprise the consolidated balance sheets as of August 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, changes in members’ investments, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Crystal Sugar Company and Subsidiaries as of August 31, 2016 and 2015, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

CliftonLarsonAllen LLP Stevens Point, Wisconsin October 20, 2016

M A N A G E ME N T ’ S DI S C U S S IO N OF OP E R AT IO N SThe harvest of the Red River Valley and Sidney sugarbeet crops grown during 2015 and processed during fiscal 2016 produced a total of 12.1 million tons of sugarbeets, or approximately 28.2 tons of sugarbeets per acre from approximately 428,000 acres. This represents an increase in total tons harvested of approximately 16.1 percent compared to the 2014 crop. The sugar content of the 2015 crop was 17.9 percent as compared to 17.5 percent for the 2014 crop. The Company produced a total of approximately 33.9 million hundredweight of sugar from the 2015 crop, an increase of approximately 14.5 percent compared to the 2014 crop.

Revenue for the year ended August 31, 2016, was $1.3 billion, an increase of $69.7 million from the year ended August 31, 2015. The table below reflects the percentage changes in product revenues, prices and volumes for the year ended August 31, 2016, as compared to the year ended August 31, 2015.

The increase in the selling price of sugar reflects a decreased supply of sugar in the domestic sugar market. The lower pulp and molasses selling price is a result of a softening of the feed market. Despite the increase in sugar production, the sugar volume sold only increased slightly resulting in a higher sugar inventory level at August 31, 2016. The increased pulp and molasses volumes are due to a larger sugarbeet crop this year as compared to the previous year.

Cost of sales for the year ended August 31, 2016, exclusive of payments to members for sugarbeets, decreased $74.1 million as compared to the year ended August 31, 2015. This decrease was primarily related to product inventories that are recorded at their net realizable value, partially offset by increased operating costs due to processing 17.1 percent more tons of sugarbeets this year, increased purchased sugar costs, and increased costs associated with non-member sugarbeets. The change in the net realizable value of the product inventories from the beginning of the reporting period is recorded on the balance sheet as either an increase or decrease to inventories with a corresponding dollar for dollar adjustment to cost of sales on the statement of operations. The increase in the net realizable value of product inventories for the year ended August 31, 2016 was $74.5 million as compared to a decrease of $49.0 million for the year ended August 31, 2015, resulting in a $123.5 million favorable change in the cost of sales between the two years as shown in the table below:

¹The change is primarily due to a 34.7 percent decrease in the hundredweight of sugar inventory as of August 31, 2015, as compared to August 31, 2014, partially offset by a 5.6 percent increase in the per hundredweight net realizable value of sugar inventory as of August 31, 2015, as compared to August 31, 2014.

²The change is primarily due to a 61.5 percent increase in the hundredweight of sugar inventory as of August 31, 2016, as compared to August 31, 2015, and a 7.4 percent increase in the per hundredweight net realizable value of sugar inventory as of August 31, 2016, as compared to August 31, 2015.

Selling, general and administrative expenses increased $6.7 million for the year ended August 31, 2016, as compared to the year ended August 31, 2015. Selling expenses increased $4.1 million primarily due to expenses related to the increases in the volumes of sugar, pulp and molasses sold. General and administrative expenses increased $2.6 million due to general cost increases.

Interest expense increased $2.0 million for the year ended August 31, 2016, as compared to the year ended August 31, 2015. This reflects an increase in the average borrowing level of long-term debt, an increase in the average borrowing level of short-term debt and an increase in the average interest rate for short-term debt partially offset by a lower average interest rate for long-term debt.

Net proceeds attributable to American Crystal Sugar Company increased $134.7 million for the year ended August 31, 2016, as compared to the year ended August 31, 2015. This increase was primarily due to more tons of sugarbeets processed resulting in increased production of sugar and agri-products along with an increase in the selling price of sugar.

Product Revenue Selling Price Volume

Sugar 5.8% 4.3% 1.4%

Pulp -1.8% -19.9% 22.6%

Molasses 68.3% -5.6% 78.2%

CSB 9.9% 5.3% 4.4%

Betaine -1.5% 15.4% -14.6%

Change in the Net Realizable Value of Product Inventories

(In Millions)

For the Years Ended August 31

2016 2015 Change

Beginning Product Inventories at Net Realizable Value Ending Product Inventories at Net Realizable Value

$ 104.5 (179.0)

$ 153.5 (104.5)

$ (49.0)1

(74.5)2

(Increase) Decrease in the Net Realizable Value of Product Inventories $ (74.5) $ 49.0 $ (123.5)

1 4 1 5

For the Years Ended August 31 (In Thousands) 2016 2015

Non-Member Business Income $ 4,597 $ 2,603

Pension & Post-Retirement Gain/(Loss) (33,949) (22,188)

Pension & Post-Retirement Prior Service Credit/(Cost) (1,529) (1,544)

Equity Method Investees Other Comprehensive Income/(Loss) (4,065) 812

Foreign Currency Forward Contract Gain/(Loss) (2) 7

Derivative Interest Rate Contract Gain/(Loss) (1,250) (632)

Total Comprehensive Income (Loss) $ (36,198) $ (20,942)

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

For the Years Ended August 31 (In Thousands) 2016 2015

Net Revenue $ 1,290,800 $ 1,221,100

Cost of Sales 424,764 498,819

Gross Proceeds 866,036 722,281

Selling, General and Administrative Expenses 291,903 285,250

Operating Proceeds 574,133 437,031

Other Income (Expense):

Interest Income 824 226

Interest Expense, Net (10,492) (8,500)

Other, Net 131 87

Total Other Expense (9,537) (8,187)

Proceeds Before Income Tax 564,596 428,844

Income Tax Expense (2,860) (2,120)

Consolidated Net Proceeds 561,736 426,724

Less: Net Proceeds Attributable to Noncontrolling Interests (5,551) (5,253)

Net Proceeds Attributable to American Crystal Sugar Company $ 556,185 $ 421,471

Distributions of Net Proceeds Attributable to American Crystal Sugar Company: Credited to American Crystal Sugar Company’s Members’ Investments: Non-Member Business Income $ 4,597 $ 2,603 Unit Retains Withheld from Members 44,302 19,021

Net Credit to American Crystal Sugar Company’s Members’ Investments 48,899 21,624

Payments to Members for Sugarbeets, Net of Unit Retains Withheld 507,286 399,847

Total $ 556,185 $ 421,471

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

C O N S OL ID AT E D S TAT E ME N T S OF OP E R AT IO N S C O N S OL ID AT E D S TAT E ME N T S OF C OMP R E HE N S I V E IN C OME (L O S S)

1 6 1 7

AssetsAugust 31 (In Thousands) 2016 2015

Current Assets:

Cash and Cash Equivalents $ 97 $ 115

Receivables: Trade 58,731 57,270 Members 11,521 9,240 Other 6,545 4,947

Advances to Related Parties 28,022 23,859

Inventories 293,440 220,020

Prepaid Expenses 2,314 2,674

Total Current Assets 400,670 318,125

Property and Equipment:

Land and Land Improvements 120,742 114,796

Buildings 157,909 152,604

Equipment 1,203,856 1,169,359

Construction in Progress 34,954 4,738

Less Accumulated Depreciation (1,002,960) (958,209)

Net Property and Equipment 514,501 483,288

Net Property and Equipment Held for Lease 45,501 56,113

Other Assets:

Investments in CoBank, ACB 2,464 3,136

Investments in Marketing Cooperatives 5,642 5,646

Other Assets 10,366 9,876

Total Other Assets 18,472 18,658

Total Assets $ 979,144 $ 876,184

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

C O N S OL ID AT E D B A L A N C E S HE E T SLiabilities and Members’ InvestmentsAugust 31 (In Thousands) 2016 2015

Current Liabilities:

Short-Term Debt $ 98,291 $ 67,045

Current Maturities of Long-Term Debt 18,930 335

Accounts Payable 40,879 34,487

Advances Due to Related Parties 3,864 3,760

Other Current Liabilities 53,486 43,213

Amounts Due Growers 135,680 133,348

Total Current Liabilities 351,130 282,188

Long-Term Debt, Net of Current Maturities 203,087 166,613

Accrued Employee Benefits 66,911 43,334

Other Liabilities 7,625 5,499

Total Liabilities 628,753 497,634

Commitments and Contingencies

Members’ Investments:

Preferred Stock, Shares Outstanding: 498,570 and 498,570 38,275 38,275

Common Stock, Shares Outstanding: 2,647 and 2,667 26 27

Additional Paid-In Capital 152,261 152,261

Unit Retains 219,245 206,009

Accumulated Other Comprehensive (Loss) (103,241) (62,446)

Retained Earnings 21,563 16,966

Total American Crystal Sugar Company Members’ Investments 328,129 351,092

Noncontrolling Interests 22,262 27,458

Total Members’ Investments 350,391 378,550

Total Liabilities and Members’ Investments $ 979,144 $ 876,184

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

C O N S OL ID AT E D B A L A N C E S HE E T S

1 8 1 9

For the Years Ended August 31 (In Thousands)Preferred

StockCommon

StockAdditional

Paid-In Capital Unit Retains

Accumulated Other Comprehensive Income (Loss)

Retained Earnings

American Crystal Sugar Company Total

Noncontrolling Interests Total

Balance, August 31, 2014 $ 38,275 $ 27 $ 152,261 $ 210,231 $ (38,901) $ 14,363 $ 376,256 $ 31,839 $ 408,095

Comprehensive Income (Loss) — — — — (23,545) 2,603 (20,942) — (20,942)

Net Proceeds Noncontrolling Interests — — — — — — — 5,253 5,253

Distributions to Noncontrolling Interests — — — — — — — (9,634) (9,634)

Unit Retains Withheld from Members — — — 19,021 — — 19,021 — 19,021

Unit Retains Paid to Members — — — (23,243) — — (23,243) — (23,243)

Stock Issued/(Redeemed), Net — — — — — — — — —

Balance, August 31, 2015 38,275 27 152,261 206,009 (62,446) 16,966 351,092 27,458 378,550

Comprehensive Income (Loss) — — — — (40,795) 4,597 (36,198) — (36,198)

Net Proceeds Noncontrolling Interests — — — — — — — 5,551 5,551

Distributions to Noncontrolling Interests — — — — — — — (10,747) (10,747)

Unit Retains Withheld from Members — — — 44,302 — — 44,302 — 44,302

Unit Retains Paid to Members — — — (31,066) — — (31,066) — (31,066)

Stock Issued/(Redeemed), Net — (1) — — — — (1) — (1)

Balance, August 31, 2016 $ 38,275 $ 26 $ 152,261 $ 219,245 $ (103,241) $ 21,563 $ 328,129 $ 22,262 $ 350,391

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

C O N S OL ID AT E D S TAT E ME N T S OF C H A N G E S IN ME MB E R S ’ IN V E S T ME N T S

2 0 2 1

For the Years Ended August 31 (In Thousands) 2016 2015

Cash Provided By (Used In) Operating Activities:

Net Proceeds Attributable to American Crystal Sugar Company $ 556,185 $ 421,471

Payments To/Due Members for Sugarbeets, Net of Unit Retains Declared (507,286) (399,847)

Add (Deduct) Non-Cash Items: Depreciation and Amortization 63,298 61,085 Accretion Expense 177 122 (Income)/Loss from Equity Method Investees (3,753) 1,760 Loss on the Disposition of Property and Equipment 931 1,505 Loss on the Disposition of Property and Equipment Held for Lease 38 796 Non-Cash Portion of Patronage Dividend from CoBank, ACB (62) (18) Deferred Gain Recognition (63) (63) Noncontrolling Interests 5,551 5,253

Changes in Assets and Liabilities: Receivables (5,340) 9,393 Inventories (73,420) 1,966 Prepaid Expenses 359 27 Advances To/Due to Related Parties (4,059) (10,726) Accounts Payable 1,192 (9,645) Other Liabilities (2,004) (6,993) Amounts Due Growers 2,332 9,027

Net Cash Provided By Operating Activities 34,076 85,113

Cash Provided By (Used In) Investing Activities:

Purchases of Property and Equipment (77,034) (64,714)

Purchases of Property and Equipment Held for Lease (1,036) (3,480)

Proceeds from the Sale of Property and Equipment 127 9

Equity Distribution from CoBank, ACB 734 854

Investments in Marketing Cooperatives (309) (360)

Equity Distribution from Marketing Cooperatives — 591

Changes in Other Assets (511) (2,175)

Net Cash (Used In) Investing Activities (78,029) (69,275)

Cash Provided By (Used In) Financing Activities:

Net Proceeds from Short-Term Debt 31,246 6,446

Proceeds from Issuance of Long-Term Debt 55,671 47,000

Long-Term Debt Repayment (335) (36,065)

Debt Issuance Costs (833) (347)

Distributions to Noncontrolling Interests (10,747) (9,634)

Common Stock Issued/(Redeemed), Net (1) —

Payment of Unit Retains (31,066) (23,243)

Net Cash Provided By (Used In) Financing Activities 43,935 (15,843)

(Decrease) In Cash and Cash Equivalents (18) (5)

Cash and Cash Equivalents, Beginning of Year 115 120

Cash and Cash Equivalents, End of Year $ 97 $ 115

C O N S OL ID AT E D S TAT E ME N T S OF C A S H F L O W S(1) PRINCIPAL ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES:Organization

American Crystal Sugar Company (Company) is a Minnesota agricultural cooperative corporation which processes sugarbeets and markets sugar as well as sugarbeet pulp, molasses, concentrated separated by-product (CSB), betaine (collectively, agri-products) and sugarbeet seed. Business done with its shareholders (members) constitutes “patronage business” as defined by the Internal Revenue Code, and the net proceeds therefrom are credited to members’ investments in the form of unit retains or distributed to members in the form of payments for sugarbeets. Members are paid the net amounts realized from the current year’s production less member operating costs determined in conformity with accounting principles generally accepted in the United States of America.

Basis of Presentation

The Company’s consolidated financial statements are comprised of American Crystal Sugar Company, its wholly-owned subsidiaries Sidney Sugars Incorporated (Sidney Sugars) and Crab Creek Sugar Company (Crab Creek), and ProGold Limited Liability Company (ProGold), a limited liability company in which the Company holds a 51 percent ownership interest.

All material inter-company transactions have been eliminated.

Certain reclassifications have been made to the August 31, 2015 consolidated financial statements to conform with the August 31, 2016 presentation. These reclassifications had no effect on previously reported results of operations, cash flows or Members’ Investments.

Revenue Recognition

Revenue from the sale of sugar, agri-products and seed is recorded when the product is delivered to the customer. Operating lease revenue is recognized as earned ratably over the term of the lease.

Operating Lease

ProGold owns a corn wet milling facility which it leases to Cargill, Incorporated (Cargill) under an operating lease. Payments are to be received monthly under the lease, which runs through December 31, 2017. The operating lease revenue is recognized as earned ratably over the term of the lease and to the extent that amounts received exceed amounts earned, deferred revenue is recorded. Expenses (including depreciation and interest) are charged against such revenue as incurred. The lease does not contain a provision for the automatic renewal or extension of the lease terms. However, it does provide an option for Cargill to request exclusive negotiations with ProGold during a certain period of time prior to the expiration of the current lease. The lease also contains provisions for increased payments to be received during the lease period related to the plant’s capital additions.

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times, such investments may be in excess of the applicable insurance limit.

Accounts Receivable and Credit Policies

The Company grants credit, individually and through its marketing cooperatives, to its customers, which are primarily companies in the food processing industry located throughout the United States.

Trade receivables are uncollateralized customer obligations due under normal trade terms requiring payment within 15 to 90 days from the invoice date. The receivables are non-interest bearing. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

Ongoing credit evaluations of customers’ financial condition are performed and the Company maintains a reserve for potential credit losses. The carrying amount of trade receivables is reduced by a valuation allowance that reflects the Company’s best estimate of the amounts that will not be collected. The Company determines a receivable to be uncollectable and is written off against the reserve based on several criteria including such items as the credit evaluation of a customer’s financial condition, the aging of the receivable and previous unsuccessful collection efforts.

N O T E S T O T HE C O N S OL ID AT E D F IN A N C I A L S TAT E ME N T S

Non-Cash Investing Activities: Purchases of Property and Equipment include the changes in Accounts Payable related to these purchases of $5,199,000 and ($1,849,000) for the years ended August 31, 2016 and 2015, respectively and changes in Other Liabilities of $1,137,000 and ($163,000) for the years ended August 31, 2016 and 2015, respectively. Purchases of Equipment Held for Lease include the changes in Accounts Payable related to these purchases of $0 and ($990,000) for the years ended August 31, 2016 and 2015, respectively.

The Accompanying Notes are an Integral Part of These Consolidated Financial Statements.

2 2 2 3

Inventories

Sugar, pulp, molasses and other agri-products inventories are valued at estimated net realizable value. Operating supplies, maintenance parts, and sugarbeet seed inventories are valued at the lower of average cost or market. Sugarbeets are valued at the projected gross per-ton beet payment related to that year’s crop.

Net Property and Equipment

Property and equipment are recorded at cost less impairment. Indirect costs and construction period interest are capitalized as a component of the cost of qualified assets. Property and equipment are depreciated for financial reporting purposes principally using straight-line methods with estimated useful lives ranging from 3 to 33 years.

Net Property and Equipment Held for Lease

Net property and equipment held for lease are stated at cost, net of accumulated depreciation. Depreciation on assets placed in service is provided using the straight-line method with estimated useful lives ranging from 5 to 40 years.

Impairment of Long Lived Assets

The Company reviews its long lived assets for impairment whenever events indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recorded when the sum of the future cash flows is less than the carrying amount of the asset. An impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. The fair value of assets is a significant estimate and it is at least reasonably possible that a change in the estimate could occur in the near term. No impairment was recognized in 2016 or 2015.

Related Parties

The following organizations are considered related parties for financial reporting purposes: United Sugars Corporation (United), Midwest Agri-Commodities Company (Midwest) and West Coast Beet Seed Company.

The Company is constructing a bulk sugar storage and transload facility which will be completed in December 2016. The Company granted United an exclusive license for the purpose of operating and maintaining the facility for the storage and marketing of sugar produced by its members. Payments are to be received through a reimbursement of the Company’s capital investment. The license shall continue until the earliest of the dissolution of United or the Company, sale of the facility or a variety of other circumstances.

Investments

Investments in CoBank, ACB are stated at cost plus unredeemed patronage refunds received in the form of capital stock. Investments in Marketing Cooperatives include investments in United and Midwest, which are accounted for using the equity method. Investments in West Coast Beet Seed Company are stated at cost.

Members’ Investments

Preferred and Common Stock - The ownership of common stock is restricted to a “farm operator” as defined by the bylaws of the Company. Each shareholder may own only one share of common stock and is entitled to one vote in the affairs of the Company. Each common shareholder is required to purchase preferred stock in proportion to the acreage of sugarbeets which the common shareholder places under contract with the Company. The preferred shares are non-voting. All transfers of stock must be approved by the Company’s Board of Directors and any shareholder desiring to sell stock must first offer it to the Company for repurchase at its par value. The Company has never exercised this repurchase option for preferred stock. The Company’s articles of incorporation do not allow dividends to be paid on either the common or preferred stock.

Unit Retains - The bylaws authorize the Company’s Board of Directors to require additional direct capital investments by members in the form of a variable unit retain per ton of up to a maximum of 10 percent of the weighted average gross per ton beet payment. All refunds and retirements of unit retains must be approved by the Board of Directors.

Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) represents the cumulative net increase (decrease) in equity related to the recording of the over-funded or under-funded status of defined benefit postretirement plans, the Company’s portion of the other comprehensive income (loss) of equity method investees and the gain or loss related to foreign currency forward contracts and interest rate swap contracts. Consistent with the Company’s treatment of income taxes related to member-source income and expenses, accumulated other comprehensive income (loss) does not include any adjustment for income taxes.

Retained Earnings - Retained earnings represents the cumulative net income (loss) resulting from non-member business, the 2009 pension measurement date adjustment and, for years prior to 1996, the difference between member income as determined for financial reporting purposes and for federal income tax reporting purposes.

Interest Expense, Net

The Company earns patronage dividends from CoBank, ACB based on the Company’s share of the net income earned by CoBank, ACB. These patronage dividends are applied against interest expense.

Income Taxes

The Company is a non-exempt cooperative for federal income tax purposes. As such, the Company is subject to corporate income taxes on its net income from non-member sources. The provision for income taxes relates to the results of operations from non-member business, state income taxes and certain other permanent differences between financial and income tax reporting. The Company also has various temporary differences between financial and income tax reporting, most notable of which is depreciation.

Deferred tax assets, less any applicable valuation allowance, and deferred tax liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

Accounting Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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.

Fair Value Measurements

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.

The fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Includes the following inputs:

• quoted prices in active markets for similar assets or liabilities, • quoted prices for identical or similar assets or liabilities in markets that are not active, • or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the

assets or liabilities.Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets

or liabilities.

Derivative Instruments and Hedging Activities

The Company recognizes all derivatives in its Consolidated Balance Sheet at fair value. On the date the derivative instrument is entered into, the Company designates the derivative as either (1) a hedge of the fair value of a recognized asset or liability, or of an unrecognized firm commitment (“fair value hedge”) or (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”). The Company has entered into foreign currency forward contracts and interest rate swaps, which have been designated as cash flow hedges. Changes in the fair value of a derivative designated as a cash flow hedge are recorded in accumulated other comprehensive income (loss) and are reclassified into earnings as the underlying hedged item affects earnings.

Business Risk

The financial results of the Company’s operations may be directly and materially affected by many factors, including prevailing prices of sugar and agri-products, the Company’s ability to market its sugar competitively, the weather, government programs and regulations, and operating costs.

2 4 2 5

Concentration and Sources of Labor

Substantially all of the hourly employees at the Company’s factories, including full-time and seasonal employees, are represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) AFL-CIO. The collective bargaining agreement for the Red River Valley factory employees expires on July 31, 2017. The collective bargaining agreement for the Sidney, Montana, factory employees expires on April 30, 2018. Office, clerical and management employees are not unionized, except for certain office employees at the Moorhead and Crookston, Minnesota, and Hillsboro, North Dakota, factories who are covered by the collective bargaining agreement with the BCTGM.

Shipping and Handling Costs

The costs incurred for the shipping and handling of products sold are classified in the consolidated financial statements as a selling expense on the Consolidated Statements of Operations. Shipping and handling costs were $199.9 million and $194.1 million for the years ended August 31, 2016 and 2015, respectively.

Deferred Costs and Product Values

All costs incurred prior to the end of the Company’s fiscal year that relate to receiving and processing the subsequent year’s sugarbeet crop are deferred. Similarly, the net realizable values of products produced prior to the end of the Company’s fiscal year that relate to the subsequent year’s sugarbeet crop are deferred. The net result of these deferred costs and product values are recorded in the Company’s consolidated balance sheet in “Other Current Liabilities.” Deferred costs and product values were $6.4 million and $3.7 million as of August 31, 2016 and 2015, respectively.

Recently Issued Accounting Pronouncements

In July 2013, the FASB issued an update to the authoritative guidance in regards to the presentation in the financial statements of an unrecognized tax benefit when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. The guidance provided by this update became effective for the Company and was adopted by the Company in fiscal 2016.

In May 2014, and updated through April 2016, the FASB issued an update to the authoritative guidance which establishes principles for reporting and disclosing useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The guidance provided by this update becomes effective for the Company in fiscal 2020. The Company has not evaluated the effect on the Company’s financial statements as of the issuance date.

In January 2015, the FASB issued an update to the authoritative guidance in regards to simplifying income statement presentation by eliminating the concept of extraordinary items. The guidance provided by this update becomes effective for the Company in fiscal 2017. The Company does not expect that the adoption of this guidance will have a material effect on the Company’s financial statements.

In November 2015, the FASB issued an update to the authoritative guidance in regards to simplifying the presentation of deferred income taxes. Upon adoption, deferred tax assets and liabilities will be classified as noncurrent on the balance sheet. The guidance provided by this update becomes effective for the Company in fiscal 2019. The Company does not expect that the adoption of this guidance will have a material effect on the Company’s financial statements.

In January 2016, the FASB issued an update to the authoritative guidance in regards to the recognition, measurement, presentation and disclosure of financial instruments. The guidance provided by this update becomes effective for the Company in fiscal 2020. The Company does not expect that the adoption of this guidance will have a material effect on the Company’s financial statements.

In February 2016, the FASB issued an update to the authoritative guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The guidance provided by this update becomes effective for the Company in fiscal 2021. The Company has not evaluated the effect on the Company’s financial statements as of the issuance date.

In March 2016, the FASB issued an update to the authoritative guidance in regards to the effect of derivative contract novations on existing hedge accounting relationships. The guidance provided by this update becomes effective for the Company in fiscal 2019. The Company does not expect that the adoption of this guidance will have a material effect on the Company’s financial statements.

(2) RECEIVABLES:There was no single customer attributable to the Company that accounted for 10 percent or more of the Company’s total receivables as of August 31, 2016 or 2015 or that accounted for 10 percent or more of the revenues of the Company for the years ended August 31, 2016 or 2015.

(3) INVENTORIES:The major components of inventories as of August 31, 2016 and 2015 are as follows:

(In Thousands) 2016 2015

Sugar, Agri-Products and Sugarbeet Seed $ 221,706 $ 139,859

Unprocessed Sugarbeets 8,098 6,819

Operating Supplies and Maintenance Parts 63,636 73,342

Total Inventories $ 293,440 $ 220,020 The Company’s reserve for inventory obsolescence was $7.9 million and $7.2 million as of August 31, 2016 and 2015, respectively.

(4) NET PROPERTY AND EQUIPMENT:Indirect costs capitalized were $1.7 million and $1.5 million, respectively in 2016 and 2015. Construction period interest capitalized was $ .6 million and $ .3 million in 2016 and 2015, respectively. Depreciation expense was $51.1 million and $49.0 million in 2016 and 2015, respectively. The Company had outstanding commitments totaling $23.3 million as of August 31, 2016, for equipment and construction contracts related to various capital projects.

As of August 31, 2016 and 2015, the Company had Land Improvement of $3.6 million and $2.5 million, respectively, associated with certain landfills at its factories. Depreciation expense associated with this obligation was $215,000 and $283,000 for the years ended August 31, 2016 and 2015, respectively. Accretion expense associated with this obligation was $177,000 and $122,000 for the years ended August 31, 2016 and 2015, respectively.

Property under capital lease was $11.2 million and $0 as of August 31, 2016 and 2015, respectively. Amortization expense was $66,000 and $0 for the years ended August 31, 2016 and 2015, respectively. Future minimum lease payments are $575,000 per year through 2036.

(5) NET PROPERTY AND EQUIPMENT HELD FOR LEASE:ProGold owns a corn wet-milling facility that it leases under an operating lease which runs through December 31, 2017. Under the terms of the operating lease, the lessee manages all aspects of the operations of the ProGold corn wet-milling facility.

Net Property and Equipment Held for Lease are stated at cost, net of accumulated depreciation. Depreciation expense was $11.6 million in 2016 and 2015. The components of Net Property and Equipment Held for Lease as of August 31, 2016 and 2015 are shown below:

(In Thousands) 2016 2015

Land and Land Improvements $ 8,790 $ 8,790

Buildings 43,026 42,804

Equipment 209,843 208,559

Construction in Progress 177 778

Less Accumulated Depreciation (216,335) (204,818)

Net Property and Equipment Held for Lease $ 45,501 $ 56,113 Future minimum payments to be received under the lease are as follows:

Fiscal year ending August 31, (In Thousands)

2017 $ 21,500

2018 7,167

Total $ 28,667

ProGold entered into a Capital Expenditures Agreement with Cargill, Incorporated during fiscal 2014 associated with a project to replace certain equipment at the corn wet-milling facility. During 2015, ProGold reimbursed Cargill, Incorporated $2.2 million for costs incurred for the project when it was completed. The agreement also provides that ProGold will receive monthly incremental lease payments from Cargill, Incorporated upon completion of the project equal to an amount necessary for the reimbursement amount together with interest to be fully amortized over a period of 12 years. The incremental lease payments total $229,000 per year and will continue during the term of the lease shown in the schedule above, including any extension(s) of the lease term but not to exceed 12 years. This incremental lease payment is not included in the amounts shown above for the original lease.

2 6 2 7

At August 31, 2015, the Company had a long-term debt line of credit through August 13, 2018 with CoBank, ACB of $60.8 million along with an additional $60.0 million which could be utilized for either short-term or long-term borrowing purposes. As of August 31, 2015, the Company had an outstanding loan with CoBank, ACB of $17.0 million and outstanding long-term letters of credit of $59.0 million. The unused long-term line of credit as of August 31, 2015 was $44.8 million which could also be utilized for short-term borrowing purposes.

The short-term debt outstanding as of August 31, 2016 and 2015 is summarized below:

(6) INVESTMENTS IN MARKETING COOPERATIVES:The Company has a 60 percent ownership interest and a 33 1/3 percent voting interest in United. The investment is accounted for using the equity method. As of August 31, 2016, the Company’s investment in United was approximately $5.6 million. Substantially all sugar products produced are sold by United as an agent for the Company. The amount of sales and related costs to be recognized by each owner of United is allocated based on its pro rata share of sugar production for the year. The owners provide United with cash advances on an ongoing basis for operating and marketing expenses incurred by United. The Company had outstanding advances due from United of $26.8 million and $22.5 million as of August 31, 2016 and 2015, respectively. The Company provides administrative services for United and is reimbursed for costs incurred. The Company was reimbursed approximately $1.0 million and $1.1 million for services provided during fiscal years 2016 and 2015, respectively.

The Company has a 41 percent ownership interest and a 25 percent voting interest in Midwest. The investment is accounted for using the equity method. As of August 31, 2016, the Company’s investment in Midwest was approximately $61,000. Substantially all sugarbeet pulp, molasses and other agri-products produced are sold by Midwest as an agent for the Company. The amount of sales and related costs to be recognized by each owner of Midwest is allocated based on its pro rata share of production for each product for the year. The owners provide Midwest with cash advances on an ongoing basis for operating and marketing expenses incurred by Midwest. The Company had outstanding advances due to Midwest of $3.9 million and $3.8 million as of August 31, 2016 and 2015, respectively. The Company provides administrative services for Midwest and is reimbursed for costs incurred. The Company was reimbursed $108,000 and $93,000 for services provided during 2016 and 2015, respectively. The owners of Midwest are guarantors of a $13.0 million short-term line of credit Midwest has with CoBank, ACB. As of August 31, 2016, Midwest had outstanding short-term debt with CoBank, ACB of $5.4 million, of which $3.2 million was the proportional amount guaranteed by the Company.

The Company has performed a complete analysis and has determined that its investments in United and Midwest do not meet the criteria of Variable Interest Entities and therefore such entities are not consolidated in the Company’s Consolidated Financial Statements.

(7) INVESTMENTS IN WEST COAST BEET SEED COMPANY:The Company has a 15 percent ownership interest in West Coast Beet Seed Company (WCBS). The investment is accounted for on a cost basis. As of August 31, 2016, the Company’s investment in WCBS was approximately $1,000 and is included in Other Assets on the Consolidated Balance Sheets. WCBS contracts with growers for the production of sugarbeet seed per the requirements of the owners of WCBS. The owners provide WCBS with cash advances on an ongoing basis for operating expenses incurred by WCBS. The Company had outstanding advances to WCBS of $1.2 million and $1.4 million as of August 31, 2016 and 2015, respectively.

(8) LONG-TERM AND SHORT-TERM DEBT:The long-term debt outstanding as of August 31, 2016 and 2015 is summarized below:

(In Thousands) 2016 2015

Term Loan from CoBank, ACB, due in varying amounts through August 2027, with interest at a variable rate of 2.26% as of August 31, 2016, with senior lien on substantially all non-current assets. $ 20,000 $ 20,000Term Loan from CoBank, ACB, due November 2025, with interest at a fixed rate of 4.32%, with senior lien on substantially all non-current assets. 17,000 17,000Term Loan with CoBank, ACB, due in varying amounts through August 2026, with interest at a fixed rate of 3.41%, with senior lien on substantially all non-current assets. 35,000 —Term Loans from Insurance Companies, due in varying amounts through fiscal 2036, interest at fixed rates of 4.93% to 7.42%, with senior lien on substantially all non-current assets. 70,000 60,000Solid Waste Disposal Revenue Bond, due in varying amounts through July 2036 (subject to the terms of the mandatory purchase date as defined in the agreement), interest at a variable rate of 2.59% as of August 31, 2016, secured by lien on leased assets and revenues of the Company. 10,671 —Pollution Control and Industrial Development Revenue Bonds, due in varying amounts through fiscal 2027, interest at fixed rates of 5.35% to 6.00% and varying rates of .60% and .62% as of August 31, 2016, substantially secured by letters of credit. 71,660 71,995Unamortized Bond Costs (2,314) (2,047)Total Long-Term Debt 222,017 166,948Less Current Maturities (18,930) (335)Long-Term Debt, Net of Current Maturities $ 203,087 $ 166,613

Minimum annual principal payments for the next five years are as follows:

(In Thousands)

2017 $ 18,9302018 $ 19,2002019 $ 5752020 $ 10,6552021 $ 13,825 The Company has a long-term debt line of credit through August 13, 2018 with CoBank, ACB of $60.8 million along with an additional $75.0 million which can be utilized for either short-term or long-term borrowing purposes. As of August 31, 2016, the Company had no outstanding amounts under these lines of credit with CoBank, ACB and outstanding long-term letters of credit of $58.2 million. The unused long-term line of credit as of August 31, 2016 was $77.6 million of which $75.0 million can also be utilized for short-term borrowing purposes.

(In Thousands) 2016 2015

Commercial Paper, at fixed interest rates of .65% and .87%, due 9/9/16. $ 98,291 $ 67,045

During the year ended August 31, 2016, the Company issued commercial paper to meet its short-term borrowing requirements. As of August 31, 2016, the Company had a seasonal line of credit through August 13, 2018, with a consortium of lenders led by CoBank, ACB of $400.0 million along with an additional $75.0 million which can be utilized for either short-term or long-term borrowing purposes. As of August 31, 2016, none of the $75.0 million was utilized for long-term borrowing purposes. There was no outstanding balance with CoBank, ACB as of August 31, 2016. The Company also has a line of credit with Wells Fargo Bank for $1.0 million, against which there was no outstanding balance as of August 31, 2016. The Company’s commercial paper program provides short-term borrowings up to the amount of the CoBank, ACB seasonal line of credit of which approximately $98.3 million was outstanding as of August 31, 2016. The Company had $3.8 million in short-term letters of credit outstanding as of August 31, 2016. Any borrowings under the commercial paper program along with outstanding short-term letters of credit will act to reduce the available credit under the CoBank, ACB seasonal line of credit by a commensurate amount. The unused line of credit as of August 31, 2016 was $373.9 million which includes $75.0 million that can also be utilized for long-term borrowing purposes.

The Company can borrow funds on a non-recourse basis from the CCC, with repayment of such funds secured by sugar. The limitations on such borrowings are based on the amount of the Company’s sugar inventory and certain loan covenant restrictions by CoBank, ACB. As of August 31, 2016, the Company had no outstanding loans with the CCC and had the capacity to obtain non-recourse loans from the CCC of approximately $120.3 million.

During the year ended August 31, 2015, the Company issued commercial paper to meet its short-term borrowing requirements. As of August 31, 2015, the Company had a seasonal line of credit through August 13, 2018, with a consortium of lenders led by CoBank, ACB of $350.0 million along with an additional $60.0 million which could be utilized for either short-term or long-term borrowing purposes. As of August 31, 2015, $15.2 million of the $60.0 million was utilized for long-term borrowing purposes. There was no outstanding balance with CoBank, ACB as of August 31, 2015. The Company also had a line of credit with Wells Fargo Bank for $1.0 million, against which there was no outstanding balance as of August 31, 2015. The Company’s commercial paper program provided short-term borrowings up to the amount of the CoBank, ACB seasonal line of credit of which approximately $67.0 million was outstanding as of August 31, 2015. The Company had $3.8 million in short-term letters of credit outstanding as of August 31, 2015. Any borrowings under the commercial paper program along with outstanding short-term letters of credit act to reduce the available credit under the CoBank, ACB seasonal line of credit by a commensurate amount. The unused line of credit as of August 31, 2015 was $325.0 million which included $44.8 million that could also be utilized for long-term borrowing purposes. As of August 31, 2015, the Company had no outstanding loans with the CCC and had the capacity to obtain non-recourse loans from the CCC of approximately $65.8 million.

Maximum borrowings, average borrowing levels and average interest rates for short-term debt for the years ended August 31, 2016 and 2015, follow:

(In Thousands, Except Interest Rates) 2016 2015

Maximum Borrowings $ 360,125 $ 244,425Average Borrowing Levels $ 226,682 $ 141,302Average Interest Rates 1.01% 0.83% The terms of the loan agreements contain prepayment penalties along with certain covenants related to, among other matters, the: level of working capital; ratio of term liabilities to members’ investments; current ratio; interest coverage ratio; and investment in CoBank, ACB stock in amounts prescribed by the bank. Substantially all non-current assets are pledged to the senior lenders to provide security to support the Company’s seasonal and long-term financing. As of August 31, 2016 and 2015, the Company was in compliance with the terms of the loan agreements.

Interest paid, net of amounts capitalized, was $10.6 million and $8.3 million for the years ended August 31, 2016 and 2015, respectively.

(9) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:The Company, as a result of its operating and financing activities, is exposed to changes in foreign currency exchange rates and interest rates which may adversely affect its results of operations and financial position. In seeking to minimize the risks and/or costs associated with such activities, the Company may enter into derivative contracts.

The Company manages its foreign currency related risks primarily through the use of foreign currency forward contracts. The contracts held by the Company are denominated in Euros. The Company has entered into foreign currency forward contracts that are designated as cash flow hedges of exchange rate risk related to foreign currency-denominated purchases of equipment. Inputs used to measure the fair value of the foreign currency forward contracts are contained within level 1 of the fair value hierarchy. The fair value of the open contracts is recorded in accumulated other comprehensive income (loss) in members’ investments. Amounts deferred to accumulated other comprehensive income (loss) are reclassified into the cost of the equipment when the actual purchase takes place.

The Company is exposed to interest risk primarily through its borrowing activities. On December 24, 2009, the Company entered into an interest rate swap contract associated with a $27.3 million Industrial Development Revenue Bond issue that matures on September 1, 2019. The interest rate swap contract requires payment of a fixed interest rate of 2.827% and the receipt of a variable rate of interest based on the Securities Industry and Financial Market Association (SIFMA) index of .433% as of August 31, 2016, on $27.3 million of indebtedness. The Company has designated this interest rate swap contract as a cash flow hedge. Inputs used to measure the fair value of the interest rate swap contracts are contained within level 2 of the fair value hierarchy. The fair value of the cash flow hedge is recorded in accumulated other comprehensive income (loss) and will be reclassified to interest expense over the life of the swap contract. No material ineffectiveness was recognized in earnings during the years ended August 31, 2016 and 2015. The current year’s loss of $721,000 is classified as interest expense on the statements of operations.

2 8 2 9

On October 1, 2014, the Company entered into an interest rate swap contract with CoBank, ACB associated with $20.0 million of long-term debt with CoBank, ACB that matures from 2024 through 2027. The interest rate swap contract requires payment of a fixed interest rate of 2.71% and the receipt of a variable rate of interest based on the USD-Libor BBA index of .512% as of August 31, 2016 on $20.0 million of indebtedness. The Company has designated this interest rate swap contract as a cash flow hedge. Inputs used to measure the fair value of the interest rate swap contracts are contained within level 2 of the fair value hierarchy. The fair value of the cash flow hedge is recorded in accumulated other comprehensive income (loss) and will be reclassified to interest expense over the life of the swap contract. No material ineffectiveness was recognized in earnings during the year ended August 31, 2016. The current year’s loss of $476,000 is classified as interest expense on the statements of operations.

On June 30, 2016, the Company entered into an interest rate swap contract with Wells Fargo Bank, associated with $11.5 million of long-term debt with Wells Fargo Bank that matures from 2017 through 2036. The interest rate swap contract requires payment of a fixed interest rate of 1.25% and the receipt of a variable rate of interest based on the USD-Libor BBA index of .331% as of August 31, 2016 on $11.5 million of indebtedness. The Company has designated this interest rate swap contract as a cash flow hedge. Inputs used to measure the fair value of the interest rate swap contracts are contained within level 2 of the fair value hierarchy. The fair value of the cash flow hedge is recorded in accumulated other comprehensive income (loss) and will be reclassified to interest expense over the life of the swap contract. No material ineffectiveness was recognized in earnings during the year ended August 31, 2016. The current year’s loss of $45,000 is classified as interest expense on the statements of operations.

The following tables present the fair value of the Company’s derivatives and their Consolidated Balance Sheet location:

(In Thousands) Fair Value of Asset Derivatives as of August 31

Balance Sheet Classification 2016 2015

Derivatives Designated as Hedging Instruments: Foreign Currency Forward Contracts Prepaid Expenses $ — $ 2Total Asset Derivatives $ — $ 2 (In Thousands) Fair Value of Liability Derivatives as of August 31

Balance Sheet Classification 2016 2015

Derivatives Designated as Hedging Instruments: Interest Rate Contracts Other Current Liabilities $ 778 $ 1,163 Interest Rate Contracts Other Long-Term Liabilities 2,682 1,047Total Liability Derivatives $ 3,460 $ 2,210

(10) OPERATING LEASES:The Company is party to operating leases for such items as rail cars, computer hardware and vehicles. Cargill, Incorporated has assumed responsibility for the payments on a rail car lease for the duration of that lease and accordingly, the lease payments are not included in the table below. Operating lease expense was $1.7 million and $1.8 million respectively, for the years ended August 31, 2016 and 2015. Future minimum payments under these obligations are as follows:

Fiscal year ending August 31, (In Thousands)

2017 $ 1,572

2018 1,399

2019 1,334

2020 1,155

2021 895

Thereafter 4

Total $ 6,359

(11) EMPLOYEE BENEFIT PLANS:Company-Sponsored Defined Benefit Pension and Other Post-Retirement Benefit Plans

Substantially all employees who meet eligibility requirements of age, date of hire and length of service are covered by a Company-sponsored retirement plan. As of August 31, 2016, the pension plans were funded as required by the funding standards set forth by the Employee Retirement Income Security Act (ERISA). The Company also has non-qualified supplemental executive retirement plans for certain employees.

Employees of the Company who are not members of a collective bargaining unit and who are newly hired, or re-hired, and employees who transfer from a union position to a non-union position on or after September 1, 2007, are not eligible for participation in the defined benefit pension plan. These employees participate in a defined contribution plan as described later in this note.

The Company’s Investment Committee has the responsibility of managing the Company’s pension plans and trust. Investment allocation decisions are made by the Investment Committee, pursuant to an Investment Policy (Policy) that includes a target strategic asset allocation. The Investment Committee is committed to diversification to reduce the risk of large losses. The Policy allows some flexibility within the target asset allocation in recognition that market fluctuations may cause the allocation to a specific asset class to move up or down within a range. The Policy is reviewed periodically by the Investment Committee. The asset allocation targets within the Plan, include four areas; Domestic Equity, International Equity, Fixed Income and Cash & Other. Domestic and International Equity consists primarily of publicly traded U.S. and Non-U.S. equities, respectively. The Cash & Other allocation is allowed only as necessary for impending benefit payments, lump sum contributions made by the company, or as

authorized by the Investment Committee. The Policy does not allow direct use of derivatives, however, the Plan invests entirely in commingled or mutual funds, which may allow investment in derivatives. The stated goal is for each component of the plan to earn a rate of return greater than its corresponding benchmark. Progress of the plan against its return objectives will be measured over a full market cycle.

The following schedule reflects the percentage of pension plan assets by asset class as of the latest measurement date, August 31, 2016:

Percentage of Pension Plan Assets by Asset Class as of August 31, 2016

Asset Class Target Range Actual AllocationDomestic Equity 35.0%–55.0% 42.8%International Equity 15.0%–25.0% 22.3%Fixed Income 20.0%–40.0% 30.8%Cash & Other 0.0%–10.0% 4.2%

There have been no changes in the valuation methodologies used at August 31, 2016 and 2015. The Plan’s investment in the common/collective trust consists of investments in the WF/Blackrock S&P Index Fund (Fund) managed by Wells Fargo Bank NA. The net asset value of the Fund is determined daily. All earnings, gains and losses of the Fund are reflected in the computation of the daily unit value and are realized by the plan upon withdrawal from the Fund. The Fund has a daily redemption frequency and redemption notice period with no unfunded commitments. Registered investment companies are valued at the net asset value of shares held by the Plan at year end based on quoted market prices. The money market fund is valued at quoted market price, which is cost plus accrued interest.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

To develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as, the target asset allocation of the pension portfolio. This resulted in the selection of the 7.0% long-term rate of return on assets assumption.

The following schedules reflect the fair values of the pension plan assets by major category as of August 31, 2016 and 2015:

(In Thousands) Plan Assets at Fair Value August 31, 2016

Level 1 Level 2 Level 3 Total

Common/Collective Trusts Equity Index Fund $ — $ 59,414 $ — $ 59,414 Registered Investment Company Real Asset Fund 9,277 9,277 Fixed Income 75,118 — — 75,118 Domestic Equity 46,047 — — 46,047 International Equity 54,401 — — 54,401

Money Market Fund 7 — — 7

Total Plan Assets at Fair Value $ 184,850 $ 59,414 $ — $ 244,264

(In Thousands) Plan Assets at Fair Value August 31, 2015

Level 1 Level 2 Level 3 Total

Common/Collective Trusts Equity Index Fund $ — $ 57,885 $ — $ 57,885 Registered Investment Company Real Asset Fund 9,530 — — 9,530 Fixed Income 68,359 — — 68,359 Domestic Equity 46,440 — — 46,440 International Equity 46,206 — — 46,206

Money Market Fund 2,492 — — 2,492

Total Plan Assets at Fair Value $ 173,027 $ 57,885 $ — $ 230,912

The development of the discount rate was based on a bond matching model whereby a hypothetical portfolio of bonds with an “AA” or better rating by a nationally recognized debt rating agency was constructed to match the expected benefit payments under the Company’s pension plans through the year 2046. The reinvestment rate for benefit cash flow occurring after 2046 was discounted back to the year 2046 at a rate consistent with the yields on long-term zero-coupon bonds. The resulting present value was treated as additional benefit cash flow for the year 2046 and consistently applied as any other benefit cash flow during the bond matching process.

3 0 3 1

The Company has a medical plan and a Medicare supplement plan which are available to certain union and non-union retirees. The costs of these plans are shared by the Company and plan participants. The Company’s post-retirement plan for certain non-union employees currently coordinates with Medicare’s medical coverage and provides tiered prescription drug coverage. The Company also participates in the Federal Early Retiree Reinsurance Program which provides reimbursement of medical expenses for early and disability retirees between the ages of 55 and 65 who are not covered by Medicare.

Weighted Average Assumptions as of August 31 Pension Post-Retirement

2016 2015 2016 2015

Discount Rate 3.33% 4.30% 3.33% 4.30%

Expected Return on Plan Assets 7.00% 7.00% N/A N/A

Rate of Compensation Increase 3.50% 3.50% N/A N/A The following schedule reflects the expected pension and post-retirement benefit payments during each of the next five years and the aggregate for the following five years:

(In Thousands) Pension Post-Retirement

2017 $ 14,593 $ 1,243

2018 12,069 1,179

2019 12,992 1,244

2020 13,233 1,257

2021 13,794 1,317

2022-2026 76,745 6,357

Total $ 143,426 $ 12,597 The Company expects to make contributions of approximately $7.0 million to the defined benefit pension plans, approximately $2.8 million related to Supplemental Executive Retirement Plans and approximately $1.2 million to the post-retirement plans during the next fiscal year.

The following schedules provide the components of the Net Periodic Pension and Post-Retirement Costs for the years ended August 31, 2016 and 2015:

Components of Net Periodic Pension Cost (In Thousands) 2016 2015

The following schedules set forth a reconciliation of the changes in the plans’ benefit obligation and fair value of assets for the years ending August 31, 2016 and 2015, and a statement of the funded status and amounts recognized in the Balance Sheets and Accumulated Other Comprehensive Income as of August 31, 2016 and 2015:

Service Cost $ 4,437 $ 4,366

Interest Cost 10,477 9,488

Expected Return on Plan Assets (15,744) (16,266)

Amortization of Prior Service Costs 236 238

Amortization of Net (Gain) Loss 6,818 3,766

Net Periodic Pension Cost $ 6,224 $ 1,592

Components of Net Periodic Post-Retirement Cost (In Thousands) 2016 2015

Service Cost $ 282 $ 313

Interest Cost 761 736

Amortization of Prior Service Costs (1,765) (1,766)

Amortization of Net (Gain) Loss (1,530) (1,312)

Net Periodic Post-Retirement Cost $ (2,252) $ (2,029)

Prior service costs are amortized over the lesser of seven years or the length of the union contract that included the benefit change.

For measurement purposes, a 5.5 percent annual rate of increase in the per capita cost of covered healthcare benefits for participants under age 65 was assumed for 2016. The rate is assumed to decline to 4.5 percent over the next four years. For participants age 65 and older, a 4.5 percent annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2016. The rate is assumed to remain constant at 4.5 percent over the next four years.

Assumed healthcare trends can have a significant effect on the amounts reported for healthcare plans. A one percent change in the assumed healthcare trend rates would have the following effects:

(In Thousands) 1% Increase 1% Decrease

Effect on total service and interest cost components of net periodic post-retirement benefit costs. $ 181 $ (92)

Effect on the accumulated post-retirement benefit obligation. $ 2,558 $ (2,098)

(In Thousands) Pension Post-Retirement

2016 2015 2016 2015

Change in Benefit Obligation

Obligation at the Beginning of the Year $ 249,715 $ 242,932 $ 18,389 $ 19,025

Service Cost 4,437 4,366 282 313

Interest Cost 10,477 9,488 761 736

Plan Amendments — 16 — —

Plan Participant Contributions — — 577 568

Government Subsidies — — — 4

Actuarial (Gain) Loss 38,674 5,325 1,622 (873)

Benefits Paid (11,051) (12,412) (1,731) (1,384)

Obligation at the End of the Year $ 292,252 $ 249,715 $ 19,900 $ 18,389

Change in Plan Assets

Fair Value at the Beginning of the Year $ 230,912 $ 236,568 $ — $ —

Actual Return on Plan Assets 16,804 (3,924) — —

Plan Participant Contributions — — 577 568

Government Subsidies — — — 4

Employer Contributions 7,599 10,680 1,154 812

Benefits Paid (11,051) (12,412) (1,731) (1,384)

Fair Value at the End of the Year $ 244,264 $ 230,912 $ — $ —

Funded Status

Funded Status as of August 31 $ (47,988) $ (18,803) $ (19,900) $ (18,389)

Net Amount Recognized $ (47,988) $ (18,803) $ (19,900) $ (18,389)

Amounts Recognized in the Balance Sheets

Current Liabilities $ (14,593) $ (7,336) $ (1,243) $ (1,254)

Noncurrent Liabilities (33,395) (11,467) (18,657) (17,135)

Net Amount Recognized $ (47,988) $ (18,803) $ (19,900) $ (18,389)

Prior Service Cost Recognized in Accumulated Other Comprehensive Income

Prior Service Cost Beginning of the Year $ (536) $ (758) $ 9,136 $ 10,902

Recognized in Periodic Cost 236 238 (1,765) (1,766)

Amount Arising During the Year — (16) — —

Prior Service Cost End of the Year $ (300) $ (536) $ 7,371 $ 9,136

Accumulated Gain (Loss) Recognized in Accumulated Other Comprehensive Income

Accumulated Gain (Loss) Beginning of the Year $ (72,698) $ (50,949) $ 8,737 $ 9,176

Recognized in Periodic Cost 6,818 3,766 (1,530) (1,312)

Amount Arising During the Year (37,615) (25,515) (1,622) 873

Accumulated Gain (Loss) End of the Year $ (103,495) $ (72,698) $ 5,585 $ 8,737

The estimated amounts that will be amortized from Accumulated Other Comprehensive Income at August 31, 2016, into net periodic benefit cost in fiscal 2017 are as follows:

(In Thousands) Pension Post-Retirement

Prior Service Cost (Credit) $ 235 $ (1,766)

Accumulated (Gain) Loss 10,610 (1,458)

Total $ 10,845 $ (3,224)

The accumulated pension benefit obligation was $278.6 million and $238.5 million as of August 31, 2016 and 2015, respectively.

3 2 3 3

Defined Contribution Plan

The Company has a qualified 401(k) plan for all eligible employees. Participants may contribute a percentage of their gross earnings each pay period as provided in the participation agreement. The Company matches the non-union and eligible union year-round participants’ contributions up to 4 percent and 2 percent, respectively, of their gross earnings. The plan provides for immediate vesting of these benefits. The Company’s contributions for this element of the plan totaled $2.2 million and $1.9 million for the years ended August 31, 2016 and 2015, respectively.

Employees of the Company who are not members of a collective bargaining unit and who are newly hired, or rehired, and employees who transfer from a union position to a non-union position on or after September 1, 2007, are no longer eligible for participation in the defined benefit pension plan but receive a 4% non-elective Company contribution to the 401(k) plan. These Company contributions have a six year vesting schedule. The Company made contributions of $ .5 million and $ .3 million for the years ended August 31, 2016 and 2015, respectively.

Long-Term Incentive Plan

The Company’s Long-Term Incentive Plan provides deferred compensation to certain key executives of the Company. The plan creates financial incentives that are based upon contract rights which are available to the executive under the terms of the plan, the value of which is determined by the Board of Directors. During 2016, 10.00 vested contract rights were exercised. In 2016, 338.03 contract rights were granted at a stated value of $2,700 per contract right. As of August 31, 2016, there were 1,555.30 contract rights issued and outstanding at a stated value of $2,700 per contract right, of which 1104.34 were vested.

(12) MEMBERS’ INVESTMENTS:The following schedule details the Preferred Stock and Common Stock as of August 31, 2016 and 2015:

(13) SEGMENT REPORTING:The Company has identified two reportable segments: Sugar and Leasing. The sugar segment is engaged primarily in the production and marketing of sugar from sugarbeets. It also sells agri-products and sugarbeet seed. The leasing segment is engaged in the leasing of a corn wet-milling plant used in the production of high-fructose corn syrup. The segments are managed separately. There are no inter-segment sales. The leasing segment has a major customer that accounts for all of that segment’s revenue.

Summarized financial information concerning the Company’s reportable segments is shown below:

(In Thousands) For the Year Ended August 31, 2016

Sugar Leasing Consolidated

Net Revenue from External Customers $ 1,267,634 $ 23,166 $ 1,290,800

Gross Proceeds $ 854,518 $ 11,518 $ 866,036

Depreciation and Amortization $ 51,688 $ 11,610 $ 63,298

Interest Income $ 823 $ 1 $ 824

Interest Expense $ 10,490 $ 2 $ 10,492

Income from Equity Method Investees $ 3,753 $ — $ 3,753

Other Income/(Expense), Net $ 131 $ — $ 131

Consolidated Net Proceeds $ 550,406 $ 11,330 $ 561,736

Capital Additions $ 83,370 $ 1,036 $ 84,406

(In Thousands) For the Year Ended August 31, 2015

Sugar Leasing Consolidated

Net Revenue from External Customers $ 1,197,933 $ 23,167 $ 1,221,100

Gross Proceeds $ 711,466 $ 10,815 $ 722,281

Depreciation and Amortization $ 49,529 $ 11,556 $ 61,085

Interest Income $ 225 $ 1 $ 226

Interest Expense $ 8,498 $ 2 $ 8,500

Loss from Equity Method Investees $ (1,760) $ — $ (1,760)

Other Income/(Expense), Net $ 87 $ — $ 87

Consolidated Net Proceeds $ 416,003 $ 10,721 $ 426,724

Capital Additions $ 62,702 $ 2,490 $ 65,192

(In Thousands) As of August 31, 2016

Sugar Leasing Consolidated

Property and Equipment, Net $ 514,501 $ — $ 514,501

Assets Held for Lease, Net $ — $ 45,501 $ 45,501

Segment Assets $ 933,152 $ 45,992 $ 979,144

(In Thousands) As of August 31, 2015

Sugar Leasing Consolidated

Property and Equipment, Net $ 483,288 $ — $ 483,288

Assets Held for Lease, Net $ — $ 56,113 $ 56,113

Segment Assets $ 819,202 $ 56,982 $ 876,184

(14) FAIR VALUE OF FINANCIAL INSTRUMENTS:Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Quoted market prices are generally not available for the Company’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.

Long-Term Debt, Inclusive of Current Maturities – Based upon discounted cash flows and current borrowing rates with similar maturities, the fair value of the long-term debt as of August 31, 2016, was approximately $245.3 million in comparison to the carrying value of $224.3 million. The fair value of the long-term debt as of August 31, 2015, was approximately $176.0 million in comparison to the carrying value of $169.0 million.

Investments in CoBank, ACB and Investments in Marketing Cooperatives – The Company believes it is not practical to estimate the fair value of these investments without incurring excessive costs because there is no established market for these securities and equity interests, and it is inappropriate to estimate future cash flows which are largely dependent on future earnings of these organizations.

Par Value

Shares Authorized

Shares Issued & Outstanding

Preferred Stock: August 31, 2016 $ 76.77 600,000 498,570 August 31, 2015 $ 76.77 600,000 498,570

Common Stock: August 31, 2016 $ 10.00 4,000 2,647 August 31, 2015 $ 10.00 4,000 2,667

The components of Accumulated Other Comprehensive (Loss) (AOCL), before tax, by component consist of the following:

Year Ended August 31, 2016 (In Thousands)

Pension and Other Post-Retirement

BenefitsEquity Method

InvesteesInterest Rate

ContractsForeign Currency

Forward Contracts Total

Balance August 31, 2015 $ (55,361) $ (4,877) $ (2,210) $ 2 $ (62,446)

Other Comprehensive Income (Loss) Before Reclassifications (39,237) (4,449) (2,492) (135) (46,313)

Reclassifications to Consolidated Net Proceeds1 3,7592 384 1,242 133 5,518

Net Current-Period Other Comprehensive Income (Loss) (35,478) (4,065) (1,250) (2) (40,795)

Balance, August 31, 2016 $ (90,839) $ (8,942) $ (3,460) $ — $ (103,241)

Year Ended August 31, 2015 (In Thousands)

Pension and Other Post-Retirement

BenefitsEquity Method

InvesteesInterest Rate

ContractsForeign Currency

Forward Contracts Total

Balance August 31, 2014 $ (31,629) $ (5,689) $ (1,578) $ (5) $ (38,901)

Other Comprehensive Income (Loss) Before Reclassifications (24,658) 407 (1,869) (150) (26,270)

Reclassifications to Consolidated Net Proceeds1 9262 405 1,237 157 2,725

Net Current-Period Other Comprehensive Income (Loss) (23,732) 812 (632) 7 (23,545)

Balance, August 31, 2015 $ (55,361) $ (4,877) $ (2,210) $ 2 $ (62,446)

1Amounts reclassified from AOCL for pension and other post-retirement benefits are recorded in cost of sales on the Consolidated Statements of Operations. Amounts reclassified from AOCL for the equity method investees and interest rate contracts are recorded in selling, general and administrative expenses and interest expense, net, respectively on the Consolidated Statements of Operations. See note 9 on derivative instruments and hedging activities for reclassification of the foreign currency forward contracts.2Primarily related to amortization of actuarial gains/loss for the years ended August 31, 2016 and 2015 totaling ($5,288) and ($2,454), respectively, and amortization of prior service (cost)/credit of $1,529 and $1,528 for the years ended August 31, 2016 and 2015, respectively.

3 4 3 5

Foreign Currency Forward Contracts – Based on a variety of pricing factors, which include the market price of the foreign currency forward contract available in the dealer-market, the fair value of the open contracts as of August 31, 2016, was $0. The fair value of the open contracts as of August 31, 2015, was an asset of approximately $2,000. Inputs used to measure the fair value of the foreign currency forward contracts are quoted prices in active markets for identical assets or liabilities and therefore are contained within level 1 of the fair value hierarchy. See the tables below.

Interest Rate Contracts – Based on the zero coupon method in which the term, notional amount, and repricing date of the interest rate swap match the term, repricing date, and principal amount of the interest-bearing liability on which the hedging interest payments are due, the fair value of the interest rate contracts as of August 31, 2016, was a liability of approximately $3.5 million. The fair value of the interest rate contract as of August 31, 2015, was a liability of approximately $2.2 million. Inputs used to measure the fair value of the interest rate swap contracts are quoted prices in active markets for similar assets or liabilities and therefore are contained within level 2 of the fair value hierarchy. See the tables below.

The tables below reflect the assets and liabilities measured at fair value on a recurring basis as of August 31, 2016 and 2015.

(In Thousands) Fair Value of Liabilities as of August 31, 2016

Level 1 Level 2 Level 3 Total

Interest Rate Contracts $ — $ 3,460 $ — $ 3,460

Total $ — $ 3,460 $ — $ 3,460

(In Thousands) Fair Value of Assets as of August 31, 2015

Level 1 Level 2 Level 3 Total

Foreign Currency Forward Contracts $ 2 $ — $ — $ 2

Total $ 2 $ — $ — $ 2

(In Thousands) Fair Value of Liabilities as of August 31, 2015

Level 1 Level 2 Level 3 Total

Interest Rate Contracts $ — $ 2,210 $ — $ 2,210 Total $ — $ 2,210 $ — $ 2,210

(15) INCOME TAXES:As of August 31, 2016 and 2015, the Company had no unrecognized tax benefits. Any future accrued interest or penalties related to unrecognized tax benefits will be recognized in income tax expense if incurred. The Company is no longer subject to U.S. Federal income tax examinations by tax authorities for fiscal years 2012 and earlier. The Company is no longer subject to state income tax examinations by tax authorities for fiscal years 2012 and earlier.

Total income tax payments were $2.3 million and $3.4 million for the years ended August 31, 2016 and 2015, respectively.

The Company’s net deferred tax liability included in Other Liabilities on the Company’s Balance Sheets as of August 31, 2016 and 2015 is reflected below:

(In Thousands) 2016 2015

Deferred Tax Assets related to non-patronage source temporary differences $ 3,354 $ 4,242

Deferred Tax Liability related to non-patronage source temporary differences 4,992 6,240

Net Deferred Tax Liability $ 1,638 $ 1,998

Income tax expense for the years ended August 31, 2016 and 2015 is as follows:

(In Thousands) 2016 2015

Current Income Taxes $ 3,220 $ 725

Deferred Income Taxes (360) 1,395

Total Income Tax Expense $ 2,860 $ 2,120

A reconciliation of the Company’s effective tax rates for the years ended August 31, 2016 and 2015 is shown below:

2016 2015

Federal Tax Expense at Statutory Rate 34.0 % 34.0 %

State Tax Expense at Statutory Rate 2.0 2.0

Payments to Members (35.4) (35.4)

Other, Net (0.1) (0.1)

Effective Tax Rate 0.5 % 0.5 %

(16) ENVIRONMENTAL MATTERS:The Company is subject to extensive federal and state environmental laws and regulations with respect to water and air quality, solid waste disposal and odor and noise control. The Company conducts an ongoing compliance program designed to meet these environmental laws and regulations. The Company believes that it is in substantial compliance with applicable environmental laws and regulations. From time to time, however, the Company may be involved in investigations or determinations regarding matters that may arise in the ordinary course of business. The Company works closely with all affected government agencies to resolve environmental issues that have arisen and believes such issues will be resolved without any material adverse effect on the Company.

The Company’s sugar manufacturing process is energy intensive and generates carbon dioxide and other “Greenhouse Gases” (GHGs). The Company believes that industries generating GHGs, including the Company, could be subject to either federal or state regulation relating to climate change policies in the relatively near future. These policies, if adopted, will increase the Company’s energy and other operating costs. Depending on how these policies address imports, the domestic sugar market may have a competitive disadvantage compared with imported sugar. These policies could have a significant negative impact on the Company’s beet payment to shareholders if the Company is not able to pass the increased costs on to its customers.

On August 12, 2011, the Company received a Finding of Violation and Notice of Violation from the United States Environmental Protection Agency (EPA) for alleged violations of the Clean Air Act concerning certain air emissions at the Company’s three Minnesota factories. Although the Company has had some preliminary discussions with the EPA concerning possible settlement of the alleged violations, there are no such discussions currently active. The Company, at this time, cannot predict the outcome of these discussions or the financial impact, if any, resulting from the resolution of this matter.

On February 23, 2015, the Company received an Alleged Violation Letter from the Minnesota Pollution Control Agency (MPCA) regarding the industrial stormwater controls at several remote beet storage sites in Minnesota. The Company is currently investigating the alleged violations and working with the MPCA. The Company, at this time, cannot predict the outcome of these discussions or the financial impact, if any, resulting from the resolution of this matter.

On July 27, 2016, the Company received an Alleged Violation Letter from the Minnesota Pollution Control Agency (MPCA) regarding hydrogen sulfide (H2S) exceedances at the three Minnesota factories. The Company has responded to the MPCA, but cannot predict the outcome of these discussions or the financial impact, if any, resulting from the resolution of this matter.

Sidney Sugars’ waste water discharge is regulated by the Montana Department of Environmental Quality (MDEQ) under a Montana Pollutant Discharge Elimination System (MPDES) permit. Under the permit, effluent limitations at the facility were scheduled to become effective on August 1, 2014, but has been extended to September 1, 2017. Sidney Sugars has responded and continues to work with the MDEQ, but cannot predict the outcome of these discussions or the financial impact, if any, resulting from the resolution of this matter.

(17) LEGAL MATTERS:From time to time and in the ordinary course of its business, the Company is named as a defendant in legal proceedings related to various issues, including worker’s compensation claims, tort claims and contractual disputes. The Company is currently involved in certain legal proceedings which have arisen in the ordinary course of the Company’s business. The Company is also aware of certain other potential claims which could result in the commencement of legal proceedings. The Company carries insurance which provides protection against certain types of claims. With respect to current litigation and potential claims of which the Company is aware, the Company’s management believes that (i) the Company has insurance protection to cover all or a portion of any judgments which may be rendered against the Company with respect to certain claims or actions and (ii) any judgments which may be entered against the Company and which may exceed such insurance coverage or which may arise in actions involving potential liabilities not covered by insurance policies are not likely to have a material adverse effect upon the Company, or its assets or operations.

(18) SUBSEQUENT EVENTS:The Company has evaluated events through the date that the financial statements were available to be issued, October 20, 2016, for potential recognition or disclosure in the August 31, 2016, financial statements.

These notes are an integral part of the accompanying Consolidated Financial Statements.

3 6 3 7

For the Years Ended August 31

(In Thousands, Except Per-Ton-Purchased and Per-Acre-Harvested Amounts) (Not Covered by Independent Auditors’ Report) 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Net Proceeds Attributable to American Crystal Sugar Company $ 556,185 $ 421,471 $ 501,316 $ 789,474 $ 548,253 $ 804,831 $ 526,112 $ 536,151 $ 542,693 $ 601,392 Non-Member (Income) Loss (4,597) (2,603) (4,586) (8,597) (10,895) (8,741) (5,426) (2,309) 4,787 (2,286)

Member Gross Beet Payment 551,588 418,868 496,730 780,877 537,358 796,090 520,686 533,842 547,480 599,106 Unit Retains (44,302) (19,021) (21,948) (34,221) (27,453) (43,574) (29,531) (31,024) (23,260) (35,705)

Member Net Beet Payment $ 507,286 $ 399,847 $ 474,782 $ 746,656 $ 509,905 $ 752,516 $ 491,155 $ 502,818 $ 524,220 $ 563,401

Per Ton Purchased:

Net Proceeds Attributable to American Crystal Sugar Company $ 50.18 $ 44.29 $ 45.65 $ 69.16 $ 59.86 $ 73.82 $ 53.42 $ 51.80 $ 46.63 $ 50.49

Non-Member (Income) Loss (0.41) (0.28) (0.42) (0.75) (1.19) (0.80) (0.55) (0.22) 0.41 (0.19)

Member Gross Beet Payment 49.77 44.01 45.23 68.41 58.67 73.02 52.87 51.58 47.04 50.30 Unit Retains (4.00) (2.00) (2.00) (3.00) (3.00) (4.00) (3.00) (3.00) (2.00) (3.00)

Member Net Beet Payment $ 45.77 $ 42.01 $ 43.23 $ 65.41 $ 55.67 $ 69.02 $ 49.87 $ 48.58 $ 45.04 $ 47.30

Member Tons Harvested 11,083 9,517 10,982 11,415 9,158 10,902 9,849 10,349 11,639 11,911

Member Gross Beet Payment Per Acre Harvested $ 1,389 $ 1,019 $ 1,140 $ 1,854 $ 1,212 $ 1,923 $ 1,177 $ 1,310 $ 1,107 $ 1,278

Member Net Beet Payment Per Acre Harvested $ 1,277 $ 972 $ 1,090 $ 1,773 $ 1,151 $ 1,818 $ 1,110 $ 1,234 $ 1,060 $ 1,201

DI S T R IB U T IO N OF NE T P R O C E E D S AT T R IB U TA B L E T O A ME R IC A N C R Y S TA L S U G A R C OMPA N Y

GROSS BEET PAYMENT PER AVERAGE TON

(DOLLARS per ton)

GROSS BEET PAYMENT(MILLIONS of dollars)

NET BEET PAYMENT(MILLIONS of dollars)

GROSS BEET PAYMENT PER AVERAGE ACRE

(DOLLARS per acre)

NET BEET PAYMENT PER AVERAGE TON (DOLLARS per ton)

NET BEET PAYMENT PER AVERAGE ACRE

(DOLLARS per acre)

$0

$200

$400

$1000

$600

$800

$1200

$1400

$1600

$1800

$2000

07 08 09 10 11 12 13 14 15 16$0

$10

$20

$30

$40

$50

$60

$70

$80

07 09 10 11 08 12 13 14 15 16$0

$100

$200

$300

$400

$500

$600

$700

$800

07 08 09 10 11 12 13 14 15 16$0

$200

$400

$600

$800

$1000

07 08 09 10 11

$1200

$1400

$1600

$1800

$2000

12 13 14 15 16$0

$10

$20

$30

$40

$50

$60

$70

07 08 09 10 11 12 13 14 15 16$0

$100

$200

$300

$400

$500

$600

$700

$800

07 09 10 1108 12 13 14 15 16

3 8 3 9

For the Years Ended August 31

(In Thousands, Except Ratios, Per-Acre-Harvested and Percentage Amounts) (Not Covered by Independent Auditors’ Report) 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Net Revenue $ 1,290,800 $ 1,221,100 $ 1,387,785 $ 1,603,404 $ 1,479,095 $ 1,542,777 $ 1,203,897 $ 1,200,229 $ 1,232,832 $ 1,222,857

Total Assets $ 979,144 $ 876,184 $ 880,598 $ 950,985 $ 899,480 $ 878,107 $ 788,743 $ 761,258 $ 813,299 $ 875,315

Total Members’ Investments $ 350,391 $ 378,550 $ 408,095 $ 417,208 $ 340,190 $ 361,499 $ 330,610 $ 339,528 $ 391,115 $ 395,620

Long-Term Debt, Net of Current Maturities $ 230,087 $ 166,613 $ 149,818 $ 128,060 $ 128,360 $ 128,640 $ 140,698 $ 143,073 $ 157,801 $ 157,974

Ratio of Debt to Total Members’ Investments .58:1 .44:1 .37:1 .31:1 .38:1 .36:1 .43:1 .42:1 .40:1 .40:1

Interest Expense, Net $ 10,492 $ 8,500 $ 6,818 $ 9,694 $ 8,165 $ 9,684 $ 9,012 $ 10,058 $ 14,750 $ 20,281

Property and Equipment Additions, Net of Retirements $ 83,311 $ 62,880 $ 79,336 $ 77,748 $ 52,080 $ 64,162 $ 73,512 $ 47,687 $ 45,188 $ 63,032

Depreciation and Amortization $ 63,298 $ 61,085 $ 57,099 $ 55,312 $ 54,072 $ 58,333 $ 55,580 $ 55,046 $ 58,197 $ 57,481

Working Capital $ 49,540 $ 35,937 $ 43,498 $ 55,799 $ 70,849 $ 53,110 $ 53,994 $ 50,482 $ 57,775 $ 36,929

Red River Valley Statistics — Member Business

Acres Harvested 397 411 436 421 443 414 442 408 494 469

Tons Purchased 11,083 9,517 10,982 11,415 9,158 10,902 9,849 10,349 11,639 11,911

Tons Purchased per Acre Harvested 27.9 23.1 25.2 27.1 20.7 26.3 22.3 25.4 23.5 25.4

Sugar Content of Sugarbeets 17.8% 17.4% 17.3% 19.1% 18.0% 18.1% 16.7% 17.6% 18.1% 18.2%

Sugar Hundredweight Produced 31,180 27,255 30,934 34,568 26,051 33,494 27,386 29,611 34,276 34,814

Pulp Tons Produced 464 378 417 450 334 493 436 460 519 556

Molasses Tons Produced 116 19 60 167 98 22 27 36 107 124

CSB Tons Produced 212 199 197 168 156 187 158 166 164 164

Betaine Tons Produced 16 14 19 19 14 20 16 19 19 22

S E L E C T E D F IN A N C I A L D ATA A ND C E R TA IN S TAT I S T IC S

NET REVENUE(MILLIONS of dollars)

MEMBERS’ INVESTMENTS(MILLIONS of dollars)

LONG-TERM DEBT AND DEBT/EQUITY (MILLIONS of dollars)

PROPERTY AND EQUIPMENT ADDITIONS, NET OF RETIREMENTS

(MILLIONS of dollars)

TONS PURCHASED PER ACRE HARVESTED

(TONS per acre)

SUGAR CONTENT OF SUGARBEETS (PERCENT)

07 09 10 110%

4%

8%

12%

16%

20%

08 12 13 14 15 160

5

10

15

20

25

30

07 08 09 10 11 12 13 14 15 16$0

$20

$40

$60

$80

$100

07 09 10 1108 12 13 14 15 16

1.50

1.25

1.00

0.75

0.50

0.25

0

$300

$250

$200

$150

$100

$50

$007 09 10 1108 12 13 14 15 16

$450

$400

$350

$300

$250

$200

$150

$100

$50

$007 09 10 1108 12 13 14 15 1607 09 10 1108 12 13 14 15 16

$1,600

$1,400

$1,200

$1,000

$800

$600

$400

$200

$0

4 0

EXECUTIVE PERSONNEL

Thomas Astrup President and Chief Executive Officer

Lisa Borgen Vice President Administration

Brian Ingulsrud Vice President Agriculture

Teresa Warne Vice President Finance

Kevin Price Vice President Government Affairs

David Braseth Vice President Operations

Daniel Mott Secretary and General Counsel

Steve Rosenau Treasurer Assistant Secretary

David Malmskog Assistant Treasurer Assistant Secretary

Lisa Maloy Assistant Treasurer Assistant Secretary

Lois Wood Assistant Treasurer Assistant Secretary

ANNUAL MEETING

The 2016 Annual Meeting of the members will be held December 1, 2016, at the Holiday Inn, Fargo, ND

AUDITORSCliftonLarsonAllen LLP Stevens Point, WI

LEGAL COUNSELFredrikson & Byron PA Minneapolis, MN

SHAREHOLDER INFORMATIONThe Treasury Department can help members with beet payments, transferring shares, changes of address, and similar matters. For assistance, contact:

Karen Brown Stockholder Accounting Supervisor (218) 236-4432

FINANCIAL INFORMATIONFor information regarding American Crystal business operations or financial reports, shareholders should contact:

Teresa WarneVice PresidentFinance(218) 236-4364

NEWS MEDIA INQUIRIESNews media representatives and others needing information about American Crystal corporate activities should contact:

Jeff Schweitzer Public Relations Manager (218) 236-4492

OPERATING FACILITIESCROOKSTON FACTORY 1201 U.S. 75 Crookston, MN 56716

Ryan Wall Factory Manager (218) 281-0142

Jerry Christenson Agronomy Manager (218) 281-0107

DRAYTON FACTORY 8152 Old Highway 44 Drayton, ND 58225

Al Zola Factory Manager (701) 454-3230

Tom Newcomb Agronomy Manager (701) 454-3238

EAST GRAND FORKS FACTORY1020 Business Hwy 2 East Grand Forks, MN 56721

Lloyd Kennedy Factory Manager (218) 773-5124

Jerry Christenson Agronomy Manager (218) 281-0107

HILLSBORO FACTORY121 Hwy 18 NE Hillsboro, ND 58045

Chris Patullo Factory Manager (701) 436-3103

Greg Richards Agronomy Manager (218) 291-5472

MOORHEAD FACTORY2500 North 11th Street Moorhead, MN 56560

Randy Axtman Factory Manager (218) 291-5431

Greg Richards Agronomy Manager (218) 291-5472

SIDNEY SUGARS FACTORY35140 County Road 125 Sidney, MT 59270

David Garland General Manager (406) 433-9333

Duane Peters Agricultural Manager (406) 433-9310

MARKETING

UNITED SUGARSCORPORATION HEADQUARTERS7803 Glenroy Road, Suite 300 Bloomington, MN 55439 (952) 896-0131

Mathew Wineinger President

David Susla Vice President Sales and Marketing Consumer

Steve Hines Vice President Supply and Operations Planning

Dirk Swart Executive Vice President Sales and Marketing Industrial

Kae Kaske Vice President Finance

MIDWEST AGRI-COMMODITIES COMPANY HEADQUARTERS999 Fifth Avenue, Suite 500 San Rafael, CA 94901 (415) 259-2720

Andy Ford President

Bryan Edwardson Vice President North American Operations

Kevin Christensen Vice President Finance

BU S INE S S INF OR M AT ION

101 NORTH THIRD STREET MOORHEAD, MN 56560 CRYSTALSUGAR.COM