Annual Report2009 - 2010

Agenda

Nineteenth Annual Meeti ng

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

Tuesday, July 20, 2010 - Meeti ng at 5:00 PM

Call to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Invocati on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PASTOR STEPHEN GOODWIN

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

Introducti on of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

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

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

Electi on Results, Chair of Nominati ons . . . . . . . . . . . . . . . DAVID MASCHING

Other Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Door Prizes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CURT MEINER

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

Dennis HelmersSecretary, District 9

Curt MeinerPresident, District 8

Bob ProvinDirector, District 1

Rick YoungDirector, District 2

Byron JonesDirector, District 3

Doug BruckerTreasurer, District 4

Wayne MorrisonVice-President, District 10

Phillip MoritzDirector, District 6

Bob CregoDirector, District 7

Mark KerberDirector, District 10

2009 -

2010

2

Rodney LandauDirector, District 5

About Us

3

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 19 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, 2010

ASSETS

CURRENT ASSETS Cash and Short Term Investments 292,224 Receivables 4,545,072 Inventories 34,975,534 Prepaid Expenses 347,877 Total Current Assets $ 40,160,717

Investments in other Corporati ons $ 4,083,508 Property, Plant & Equipment $ 14,473,915 TOTAL ASSETS $ 58,718,140

LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITITES Grain Payables 14,364,937 Other Payables 7,639,289 Notes Payable 1,673,539 Total Current Liabiliti es $ 23,677,765

LONG-TERM LIABILITIES Long Term Note Payable 6,975,000 Other Deferred Payables 1,856,911 Total Long-term Liabiliti es $ 8,831,911 TOTAL LIABILITIES $ 32,509,676

STOCKHOLDERS EQUITY Capital Stock & Credits $ 8,227,302 Retained Income $ 17,923,461 Equity For Investment $ 57,701 Total Stockholders Equity $ 26,208,464 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 58,718,140

Balance Sheet

4

Statement of Income (Loss)

ALLIANCE GRAIN CO.STATEMENT OF INCOME (LOSS)12 months ended May 31, 2010

Volume (Bushels Sold) 60,052,023

Sales $ 262,231,575 Gross Trading Income $ 6,067,828

Service Income Grain Drying 7,224,481 Grain Storage & PL Charges 3,821,149 Rental Income 57,000 Other Income 112,346 Total Service Income $ 11,214,976 TOTAL GROSS INCOME $ 17,282,804

Operati ng Expenses People & Related Expenses 3,760,891 Facility Expenses 6,270,855 Administrati ve Expenses 841,261 Interest - Seasonal 160,595 Total Operati ng Expenses $ 11,033,602 NET OPERATING INCOME $ 6,249,202

Other Income Patronage Dividend Income 158, 946 Income (Loss) from Subsidiaries (130,997) Total Other Income $ 27,949 NET INCOME (LOSS) BEFORE TAXES $ 6,277,151

Federal and State Tax (860,445)

NET INCOME (LOSS) AFTER TAXES $ 5,416,706

BU

5

Changes in Financial Position

ALLIANCE GRAIN CO.STATEMENT OF CHANGES IN FINANCIAL POSITION

12 months ended May 31, 2010

SOURCES OF WORKING CAPITAL Net Income for the Year 5,416,706 Add (Deduct) Items Not Aff ecti ng Working Capital: Depreciati on & Amorti zati on 1,758,496 Noncash Patronage Refund Received (54,058) Income Taxes Deferred 580,873 Joint Venture (Income) Loss _ 130,997 Working Capital Provided from Operati ons $ 7,833,014 Stock Redempti ons 19,917 Gain on Marketable Securiti es 9,932

TOTAL SOURCES $ 7,862,863

USES OF WORKING CAPITAL Purchase of Property, Plant & Equipment 3,243,203 Reti rement of Capital Stock 49,815 Reti rement of Long-Term Debt 4,595,000 Dividends on Preferred Stock 2,165 Cash Patronage Declared 1,205,027

TOTAL USES $ 9,095,210 INCREASE (DECREASE) IN WORKING CAPITAL $ (1,232,347)

WORKING CAPITAL - Begining of Year $ 17,715,299

WORKING CAPITAL - END OF YEAR $ 16,482,852

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.

6

LOCATIONS

Anchor

Anchor Branch2W East Street

PO Box 128Anchor, IL 61720-0128

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

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

8

Bellfl ower

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

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

9

Cabery

Cabery Branch305 East Main

PO Box 171Cabery, IL 60919

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

Billy Edwards, Locati on Supervisor

10

Campus

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

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

11

Charlotte

Charlott e Branch33573 East 1300 North Rd.

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

ABOVE: Jamie Stein, Assistant Operati ons Manager. RIGHT: Shane

Puls, Operati ons Support; Gloria Hitchens, Offi ce Manager; Jordan

Kintner, Operati ons Support

12

Colfax

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

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

13

Cropsey

Cropsey Branch103 South Main

PO Box 57Cropsey, IL 61731-0057

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

Bill Farmer, Locati on Supervisor; Bill Kemmber, Offi ce Manager and Branden Kruse, Operati ons Support.

14

Cullom

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

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

15

Gibson City - Middle & West

Gibson City - Middle220 West 8th Street

PO Box 546Gibson City, IL 60936

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

16

(Right) Dennis Angus, Middle Locati on Supervisor; Clint Pearson,

Operati ons Support

(Bott om) Ed Kirkpatrick, Locati on Support ; Brett Dunn,

West Locati on Supervisor;

Gibson City - Middle & West

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

17

GIBSON CITY WEST STAFF: Jeff Grider, Grain Originator and AgriVisor Coordinator; Joe Thompson, General Manager; Gary Allen, Operati ons Manager; J.B. Daughenbaugh, Grain Merchandiser; (Back) Angie Beach, Assistant Controller; Bonnie Voyles, Administrati ve Assistant; Sue Ann Har-sha, Administrati ve Assistant; Joy Boyce, Administrati ve Assistant; Teresa Steidinger, Grain Accounti ng Coordinator.

Adam Moritz, Grain Originator based at One Earth Energy

Melvin

Melvin Branch101 East Main Street

Melvin, IL 60952PH: 217-388-2261FX: 217-388-2855

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

18

Saybrook

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

Tom Williamson, Locati on Supervisor

19

Sibley

Sibley Branch312 West Ohio Street

RR 1 Box 101KSibley, IL 61773

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

20

Dan Farmer, Locati on Supervisor and

Bonnie Wurmnest, Offi ce Manager

Transportation

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

Aaron Rickett s Richard Hammond

Roger Ford Kevin Redeker

21

Maintenance

22

Chris Bach and Kevin Bazzell

The Bloomer Line

23

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.

Notes Location Map