Annual Report2008 - 2009

Agenda

Eighteenth Annual Meeti ng

Alliance Grain Co.North Park Pavilion - Gibson City, Illinois

Tuesday, July 28, 2009 - Meeti ng at 5:00 PM

Call to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBERT LANDAU

Invocati on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REV. STACY LANDRY

Meeti ng Noti ce & Certi fi cati on of Quorum . . . . . . . . . . . . .DENNIS HELMERS

Introducti on of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBERT LANDAU

Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JOE THOMPSON

Manager’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . JOE THOMPSON

Electi on Results, Chair of Nominati ons . . . . . . . . . . . . . . . . . .BRYAN SHIELDS

Other Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBERT LANDAU

Door Prizes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBERT LANDAU

Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROBERT LANDAU

Dinner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TOM YOUNG CATERING

Alliance Grain Co.Corporate Headquarters

1306 West 8th StreetPost Offi ce Box 546

Gibson City, Illinois 60936-0546PH: 800-222-2451 FX: 217-784-8949

www.Alliance-Grain.com

MISSION STATEMENT

Alliance Grain Co. is a farmer-owned cooperati ve providing grain marketi ng and handling services focused on enhancing the profi tability of its

farmer-owners while preserving the fi nancial integrity of the cooperati ve.

Board of Directors About Us

Robert LandauPresident, District 5

Dennis HelmersSecretary, District 9

Curt MeinerTreasurer, District 8

Bob ProvinDirector, District 1

Rick YoungDirector, District 2

Byron JonesDirector, District 3

Doug BruckerDirector, District 4

Wayne MorrisonVice-President, District 10

Phillip MoritzDirector, District 6

Bob CregoDirector, District 7

Mark KerberDirector, District 10

2008 -

2009

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Established in 1991, Alliance Grain Co. is a farmer-owned elevator system that includes thirteen elevators throughout East Central Illinois. Alliance Grain has operati ons in Anchor, Bellfl ower, Cabery, Campus, Charlott e, Colfax, Cropsey, Cullom, Gibson City (West and Middle), Melvin, Saybrook and Sibley. Eight of these elevators are rail load-out accessible via the Bloomer Line railroad. Approximately 22 million bushels of grain can be stored at the thirteen locati ons.

On a daily basis, the services of Alliance Grain include grain storage, marketi ng assistance and off -farm hauling, to name a few, all at competi ti ve prices. Being farmer-owned has helped us visualize all aspects of agricultural producti on. Shareholders (producers) elect board members from 10 districts. These 11 board members, with one at large, discuss the operati ons of the elevator and represent their district. This management system has kept Alliance Grain Cooperati ve thriving these last 18 years.

September 1991 - Alliance Grain Cooperati ve is formed with a consolidati on vote from the shareholders of Anchor Grain Co. and The Farmer’s Grain of Gibson City.

April 1992 - Foosland Grain is acquired by contract with faciliti es at Foosland & Bellfl ower.

August 1994 - Farmer’s Grain of Charlott e and shareholders voted to merge with Alliance Grain Co.

September 1997 - The Cullom elevator is acquired from Tri-Central Coop.

July 2002 - The shareholders of Sibley Grain Co. voted to merge with Alliance Grain Co.

September 2002 - Alliance Grain Co. purchased the Hamilton Elevator, with faciliti es in Campus, Cabery and Sunbury. Sunbury was later sold.

June 2006 - Alliance Grain Co. purchased Ford Grain of Melvin to be the 13th Alliance locati on.

With 13 locati ons, Alliance Grain’s total capacity stands at over 22 million bushels. We’re ready to serve you!

ALLIANCE GRAIN CO.BALANCE SHEET

as of May 31, 2009

ASSETS

CURRENT ASSETS Cash and Short Term Investments 176,484 Receivables 9,495,471 Inventories 49,647,189 Prepaid Expenses 90,641 Total Current Assets $ 59,409,785

Investments in other Corporati ons $ 4,164,841 Property, Plant & Equipment $ 12,989,209 TOTAL ASSETS $ 76,563,835

LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITITES Grain Payables 10,049,644 Other Payables 9,421,667 Notes Payable 22,223,175 Total Current Liabiliti es $ 41,694,486

LONG-TERM LIABILITIES Long Term Note Payable 11,570,000 Other Deferred Payables 1,276,038 Total Long-term Liabiliti es $ 12,846,038 TOTAL LIABILITIES $ 54,540,524

STOCKHOLDERS EQUITY Capital Stock & Credits $ 6,492,863 Retained Income $ 15,482,679 Equity For Investment $ 47,769 Total Stockholders Equity $ 22,023,311 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 76,563,835

Balance Sheet Statement of Income (Loss)

ALLIANCE GRAIN CO.STATEMENT OF INCOME (LOSS)12 months ended May 31, 2009

Volume (Bushels Sold) 40,330,920

Sales $ 236,006,606 Gross Trading Income $ 10,702,768

Service Income Grain Drying 4,498,656 Grain Storage 4,532,860 Rental Income 64,400 Other Income 81,797 Total Service Income $ 9,177,713 TOTAL GROSS INCOME $ 19,880,481

Operati ng Expenses People & Related Expenses 3,239,468 Facility Expenses 5,163,108 Administrati ve Expenses 763,954 Interest - Seasonal 1,273,428 Total Operati ng Expenses $ 10,439,958 NET OPERATING INCOME $ 9,440,523

Other Income Patronage Dividend Income 710, 416 Income (Loss) from Subsidiaries (68,148) Total Other Income $ 642,268 NET INCOME (LOSS) BEFORE TAXES $ 10, 082,791

Federal and State Tax (1,942,856)

NET INCOME (LOSS) AFTER TAXES $ 8,139,935

BU

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Changes in Financial Position

ALLIANCE GRAIN CO.STATEMENT OF CHANGES IN FINANCIAL POSITION

12 months ended May 31, 2009

SOURCES OF WORKING CAPITAL Net Income for the Year 8,139,935 Add (Deduct) Items Not Aff ecti ng Working Capital: Depreciati on & Amorti zati on 1,644,836 Noncash Patronage Refund Received (235,690) Income Taxes Deferred 356,863 Joint Venture (Income) Loss 68,148 Working Capital Provided from Operati ons $ 9,974, 092 Proceeds from Sale of Fixed Asset 10, 832 Increase in Long-Term Notes Payable 4,000,000

TOTAL SOURCES $ 13,984,924

USES OF WORKING CAPITAL Purchase of Property, Plant & Equipment 2,471,174 Reti rement of Capital Stock 445,173 Reti rement of Long-Term Debt 595,000 Dividends on Preferred Stock 7,107 Cast Patronage Declared 1, 573,995 Decrease in Value of Marketable Securiti es 466, 778

TOTAL USES $ 5,559,227 INCREASE (DECREASE) IN WORKING CAPITAL $ 8,425,697

WORKING CAPITAL - Begining of Year $ 9,289,602

WORKING CAPITAL - END OF YEAR $ 17,715,299

This report is a condensati on of our auditors long form report which is available for your inspecti on at our Corporate Offi ce, in Gibson City, or from any of our Directors. If you have any questi ons about this statement or our fi nancial conditi on, any director or the manager would be happy to discuss them with you.

LOCATIONS

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Anchor Bellfl ower

Anchor Branch2W East Street

PO Box 128Anchor, IL 61720-0128

PH: 309-723-2091FX: 309-723-2011

Bellfl ower Branch305 East Melvin StreetPO Box 167Bellfl ower, IL 61724PH: 309-722-3216FX: 309-722-3335

Garry Cole, Locati on Supervisor and Terry Benway, Operati ons Support

Chare Robinson, Offi ce Manager; Myron Shelton, Operati ons Support; Tristan Johnson, Locati on Supervisor

8 9

Cabery Campus

Cabery Branch305 East Main

PO Box 171Cabery, IL 60919

PH: 815-949-1672FX: 815-949-1661

Campus Branch27896 N. 3300 East Rd.PO Box 118Campus, IL 60920PH: 815-567-3311FX: 815-567-3430

Billy Edwards, Locati on Supervisor Matt Dunn, Northern Area Manager; Shaun Edwards, Locati on Supervisor; Christi ne Graveson, Offi ce Manager

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Charlotte Colfax

Charlott e Branch33573 E. 1300 North Rd.

Chatsworth, IL 60921PH: 815-689-2673FX: 815-689-2525

Colfax Branch200 S. Brook StreetPO Box 236Colfax, IL 61728PH: 309-723-2611 FX: 309-723-6090

In 2008, Alliance Grain added a new grain bin to the Charlott e facil-

ity. The large bin (pictured above), adds 550,000 bushels to our storage

capabiliti es.

Jason Trumble, Operati ons Support; Jamie Wallrich, Locati on Supervisor;

Gloria Hitchens, Offi ce Manager; Jamie Stein, Assistant Operati ons

Manager

Sheryl Roelfs, Offi ce Manager; Dennis Farney, Locati on Supervisor; Brandon Bose, Operati ons Support

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Cropsey Cullom

Cropsey Branch103 South Main

PO Box 57Cropsey, IL 61731-0057

PH: 309-377-2141FX: 309-377-2018

Cullom Branch121 N. Maple StretPO Box 296Cullom, IL 60929PH: 815-689-2130FX: 815-689-2717

Bill Kemmer, Offi ce Manager and Bill Farmer, Locati on Supervisor

Brad Wallrich, Locati on Supervisor; Susan Deany, Offi ce Manager; Logan Spenard, Operati ons Support

In June of 2009, a new 150,000 bushel grain bin and 4,700 BPH dryer were added to the Cullom facility. (Pictured above)

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Gibson City - Middle & West Gibson City - Middle & West

Gibson City - Middle220 West 8th Street

PO Box 546Gibson City, IL 60936

PH: 217-784-5402FX: 217-784-5965

Corporate Offi ce, Gibson City - West1306 West 8th StreetPO Box 546Gibson City, IL 60936PH: 800-222-2451 / 217-784-4284FX: 217-784-8949

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ADMINISTRATIVE OFFICE STAFF: Joe Thompson, General Manager; Wade Romine, Grain Merchandiser; Angie Beach, Assistant Controller; Teresa Steidinger, Grain Accounti ng Coordinator; (Front) Sue Ann Harsha, Administrati ve Assistant; Joy Boyce, Administrati ve Assistant; Bonnie Voyles, Administrati ve Assistant; Jessica Henrichs, Customer Relati ons Coordinator.

(Right) Gary Allen, Operati ons Manager; Dennis Angus, Middle

Locati on Supervisor; Branden Kruse, Middle Locati on Support.

(Bott om) Brett Dunn, West Locati on Supervisor; Shane Puls,

West Locati on Support.

J.B. Daughenbaugh, Grain Originator based at One Earth Energy

Melvin Saybrook

Melvin Branch101 E. Main Street

Melvin, IL 60952PH: 217-784-5402FX: 217-784-5965

Saybrook Branch509 S. Washington StreetSaybrook, IL 61770PH: 309-475-3361FX: 217-388-2855

Roger Ford, Operati ons Support and Kevin Redeker, Locati on Supervisor

Tom Williamson, Locati on Supervisor

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Sibley Transportation

Sibley Branch312 West Ohio St.

RR 1 Box 101KSibley, IL 61773

PH: 217-745-2336FX: 217-745-2505

Aaron Rickett s, Richard Hammond, Roger Ford, Kevin Redeker

Aaron Rickett s Richard Hammond

Roger Ford Kevin Redeker

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Dan Farmer, Locati on Supervisor and

Bonnie Wurmnest, Offi ce Manager

Maintenance The Bloomer Line

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Derek Sutt er, Chris Bach and

Kevin Bazzell

The Bloomer Line, shown loading at our Charlott e, Gibson City and Cullom locati ons, hauled over 10,000 carloads of grain this past year.

This 148 ft . crane was recently added to our

maintenance fl eet. Locati on improvements

and equipment additi ons, such as this

crane, help our staff maintain smooth operati ons at our

13 faciliti es.

Notes Location Map