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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 10-Q

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended:   November 30, 2004

OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 AND 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission file: No. 33-94644

MINN-DAK FARMERS COOPERATIVE
(Exact named of registrant as specified in its charter)

North Dakota   23-7222188  
(State or other jurisdiction of  (I.R.S. Employer 
Incorporation or organization)  Identification No.) 

7525 Red River Road		 
Wahpeton, North Dakota  58075 
(Address of principal  (Zip Code) 
executive offices) 

  (701) 642-8411  
  (Registrant’s telephone number, including area code)  
 
Not Applicable		  
  (Former name, former address and former fiscal year,
if changed since last report)		  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

YES   ____X____                          NO   __________

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES   _________                          NO   ____X____

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

    Outstanding at  
Class of Common Stock   January 4, 2005  
$250 Par Value   488  



        Minn-Dak Farmers Cooperative has previously registered securities for offer and sale pursuant to the Securities Act of 1933, as amended (the “Securities Act”). As a result of that previous registration under the Securities Act, under Sections 15(d) and 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Cooperative is obligated to file quarterly reports on form 10-Q, annual reports on Form 10-K and supplemental reports on Form 8-K. However, the Cooperative has not registered any of its securities under Section 12(g) of the Exchange Act. The Cooperative is exempt from any obligation to register its securities under the Exchange Act due to the provisions of Section 12(g)(2)(E), which exempts from Exchange Act registration any security of an issuer, such as the Cooperative, which is a “cooperative association” as defined in the Agricultural Marketing Act of 1929. As a result, those provisions of the Exchange Act, which are applicable only to securities registered under Section 12 of that act, do not apply to shares issued by the Cooperative. The provisions, which do not apply to the Cooperative’s shares, include the regulation of proxies under Section 14 of the Exchange Act and the reporting and other obligations of directors, officers and principal stockholders under Section 16 of the Exchange Act.



CONSOLIDATED BALANCE SHEETS
ASSETS
(In Thousands)

ASSETS Nov 30, 2004
(Unaudited) 		Aug 31, 2004
(Audited)
CURRENT ASSETS:            
     Cash   $ 26   $ 270  
   
     Receivables:  
         Trade accounts    15,358    16,662  
         Growers    468    3,959  
         Other    108    632  
     15,934    21,252  
   
     Advances to affiliate    (836 )  (259 )
     Inventories:  
         Refined sugar, pulp and molasses to be sold
           on a pooled basis    34,263    19,338  
         Nonmember refined sugar    902    4  
         Yeast    96    94  
         Materials and supplies    6,301    6,625  
         Beet and Juice Inventory    63,268    —  
         Other    0    —  
     104,830    26,061  
     Deferred charges    57    1,252  
     Prepaid expenses    692    2,333  
     Other    1,282    —  
     Current deferred income tax asset    502    502  
   
            Total current assets    122,487    51,411  
   
PROPERTY, PLANT AND EQUIPMENT:  
     Land and land improvements    22,875    22,769  
     Buildings    37,115    37,115  
     Factory equipment    127,715    127,715  
     Other equipment    3,468    3,468  
     Construction in progress    1,192    1,096  
     192,365    192,163  
         Less accumulated depreciation    (91,718 )  (89,882 )
     100,647    102,281  
   
OTHER ASSETS:  
     Investments restricted for capital lease projects    2,483    2,472  
     Investment in stock of other corporations, unconsolidated  
       marketing subsidiaries and other cooperatives    10,074    10,074  
     Other    1,667    2,066  
     14,224    14,612  
    $ 237,358   $ 168,304  

See Notes to Consolidated Financial Statements.


MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
(In Thousands)

Nov 30, 2004
(Unaudited)		 Aug 31, 2004
(Audited)
LIABILITIES AND MEMBERS’ INVESTMENT            
   
CURRENT LIABILITIES:  
      Short-term notes payable   $ 42,175   $ 10,145  
   
      Current portion of long-term debt    3,600    3,600  
      Current portion of bonds payable    960    960  
     4,560    4,560  
      Accounts payable:  
           Trade    1,323    3,542  
           Growers    54,147    14,904  
     55,470    18,447  
   
      Accrued liabilities    1,924    3,681  
   
                Total current liabilities    104,129    36,833  
   
LONG-TERM DEBT, NET OF CURRENT PORTION    23,500    24,700  
   
BONDS PAYABLE    20,955    20,955  
   
LONG TERM DEFERRED TAX LIABILITY    1,242    1,242  
   
OTHER    612    612  
   
COMMITMENTS AND CONTINGENCIES    —    0  
   
                Total liabilities    150,439    84,343  
   
MINORITY INTEREST IN EQUITY OF SUBSIDIARY    1,862    1,810  
   
MEMBERS’ INVESTMENT:  
      Preferred stock:  
           Class A – 100,000 shares authorized, $105 par value;
             72,200 shares issued and outstanding    7,581    7,581  
           Class B – 100,000 shares authorized, $75 par value;  
             72,200 shares issued and outstanding    5,415    5,415  
           Class C – 100,000 shares authorized, $76 par value;
             72,200 shares issued and outstanding    5,487    5,487  
     18,483    18,483  
      Common stock, 600 shares authorized, $250 par value;
        issued and outstanding, 488 shares at Nov 30,
        2004 and 488 shares at August 31, 2004    122    122  
      Paid in capital in excess of par value    32,094    32,094  
      Unit retention capital    3,049    3,049  
      Qualified allocated patronage    1,638    1,638  
      Nonqualified allocated patronage    23,211    20,510  
      Retained earnings (deficit)    6,461    6,254  
     85,058    82,150  
   
    $ 237,358   $ 168,304  

See Notes to Consolidated Financial Statements.


PART I.   FINANCIAL INFORMATION
ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS

MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands)
(Unaudited)

Three Months Ended
November 30,
2004 2003
REVENUE:            
      From sales of sugar, co-products, and
        yeast, net of discounts   $ 62,148   $ 61,562  
      Other income    65    183  
     62,213    61,745  
   
EXPENSES:  
      Production costs of sugar, co-products,  
        and yeast sold    15,786    14,718  
      Marketing (includes freight and storage)    12,217    7,099  
      General and administrative    1,524    1,451  
      Interest    712    718  
      (Gain) loss on disposition of property and equipment    0    0  
     30,239    23,986  
   
NET PROCEEDS RESULTING FROM MEMBER AND  
   NONMEMBER BUSINESS   $ 31,971   $ 37,758  
   
DISTRIBUTION OF NET PROCEEDS:  
      Credited to members’ investment:  
           Components of net income:  
                Income (loss) from non-member business   $ 207   $ 252  
                Patronage income    2,701    5,998  
                      Net income    2,908    6,250  
   
           Unit retention capital    0    0  
                Net credit to members’ investment    2,908    6,250  
   
      Payments to members for sugarbeets, net of unit  
       retention capital    29,062    31,508  
   
NET PROCEEDS RESULTING FROM MEMBER AND
   NONMEMBER BUSINESS   $ 31,971   $ 37,758  

See Notes to Consolidated Financial Statements.


MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)

Three Months Ended
November 30,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:            
      Income allocated to members’ investment   $ 2,908   $ 6,250  
      Add (deduct) noncash items:  
           Depreciation and amortization    1,927    1,796  
           Net income allocated from unconsolidated marketing subsidiaries    0    (4 )
           Minority interest in equity of subsidiaries    52    62  
           Changes in operating assets and liabilities:
                Accounts receivable and advances    5,895    5,892  
                Inventory and prepaid expenses    (78,411 )  (75,367 )
                Deferred charges and other assets    1,631    1,134  
                Accounts payable, accrued liabilities and other liabilities    35,267    28,740  
                      Net cash used in operating activities    (30,733 )  (31,496 )
   
CASH FLOWS FROM INVESTING ACTIVITIES:    
      Capital expenditures    (203 )  (384 )
      Net proceeds from patronage refunds and equity revolvements    0    214  
      Issuance of notes receivable    (128 )  0  
      Restricted bond/lease fund investment    (11 )  (14 )
                      Net cash (used in)/provided by investing activities    (342 )  (184 )
   
CASH FLOWS FROM FINANCING ACTIVITIES:    
      Net proceeds from issuance of short-term debt    32,030    31,423  
      Payment of long-term debt    (1,200 )  (1,200 )
      Payment of unit retains and allocated patronage    0    (10 )
      Sale and repurchase of common stock, net    0    1  
                      Net cash provided by financing activities    30,830    30,214  
   
NET DECREASE IN CASH    (245