Teucrium Commodity Trust 10-Q

Item 1. Financial Statements. Index to Financial Statements Documents Page TEUCRIUM COMMODITY TRUST Combined Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 4 Combined Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020 5 Combined Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 7 Combined Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 8 Combined Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 9 Notes to Combined Financial Statements 10 TEUCRIUM CORN FUND Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 23 Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020 24 Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 26 Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 27 Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 28 Notes to Financial Statements 29 TEUCRIUM SOYBEAN FUND Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 41 Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020 42 Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 44 Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 45 Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 46 Notes to Financial Statements 47 TEUCRIUM SUGAR FUND Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 59 Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020 60 Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 62 Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 63 Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 64 Notes to Financial Statements 65 TEUCRIUM WHEAT FUND Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 77 Schedule of Investments at June 30,, 2021 (Unaudited) and December 31, 2020 78 Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 80 Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 81 Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 82 Notes to Financial Statements 83 TEUCRIUM AGRICULTURAL FUND Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020 95 Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020 96 Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020 98 Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020 99 Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020 100 Notes to Financial Statements 101 3 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash and cash equivalents $ 312,645,391 $ 309,378,295 Interest receivable 20,991 16,982 Other assets 1,585 38 Capital shares receivable - 307,830 Equity in trading accounts: Commodity futures contracts 32,859,502 42,424,697 Due from broker 12,874,001 - Total equity in trading accounts 45,733,503 42,424,697 Total assets 358,401,470 352,127,842 Liabilities Management fee payable to Sponsor 303,870 264,709 Payable for purchases of commercial paper - 9,995,298 Other liabilities 56,740 71,568 Payable for shares redeemed - 4,404,915 Equity in trading accounts: Commodity futures contracts 1,343,610 - Due to broker 420,810 27,278,158 Total equity in trading accounts 1,764,420 27,278,158 Total liabilities 2,125,030 42,014,648 Net Assets $ 356,276,440 $ 310,113,194 The accompanying notes are an integral part of these financial statements. 4 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost: $26,479,756) $ 26,479,756 7.43 % 26,479,756 Goldman Sachs Financial Square Government Fund - Institutional Class (cost: $24,036,129) 24,036,129 6.75 24,036,129 Total money market funds (cost: $50,515,885) $ 50,515,885 14.18 % Principal Amount Commercial Paper Brookfield Infrastructure Holdings Inc. 0.213% (cost: $4,999,200 due: 07/21/2021) $ 4,999,408 1.40 % 5,000,000 Brookfield Infrastructure Holdings Inc. 0.240% (cost: $9,998,200 due: 07/21/2021) 9,998,667 2.81 10,000,000 Brookfield Infrastructure Holdings Inc. 0.216% (cost: $4,999,161 due: 07/21/2021) 4,999,401 1.40 5,000,000 Canadian Natural Resources Limited 0.140% (cost: $9,998,990 due: 07/26/2021) 9,999,028 2.81 10,000,000 FMC Corporation 0.200% (cost: $4,499,300 due: 07/12/2021) 4,499,725 1.26 4,500,000 General Motors Financial Company 0.230% (cost: $5,996,741 due: 07/06/2021) 5,999,808 1.68 6,000,000 General Motors Financial Company 0.230% (cost: $8,995,000 due: 07/08/2021) 8,999,598 2.53 9,000,000 General Motors Financial Company 0.170% (cost: $4,997,899 due: 09/13/2021) 4,998,252 1.40 5,000,000 Harley-Davidson Financial Services Inc 0.170% (cost: $9,995,751 due: 08/03/2021) 9,998,440 2.81 10,000,000 Harley-Davidson Financial Services Inc 0.160% (cost: $7,497,100 due: 08/06/2021) 7,498,800 2.10 7,500,000 Harley-Davidson Financial Services Inc 0.150% (cost: $2,499,136 due: 09/16/2021) 2,499,199 0.70 2,500,000 Humana Inc. 0.187% (cost: $14,993,453 due: 07/21/2021) 14,998,443 4.21 15,000,000 Humana Inc. 0.160% (cost: $4,998,044 due: 07/27/2021) 4,999,422 1.40 5,000,000 Jabil Inc. 0.210% (cost: $9,997,552 due: 07/16/2021) 9,999,125 2.81 10,000,000 Jabil Inc. 0.309% (cost: $4,996,353 due: 08/27/2021) 4,997,555 1.40 5,000,000 Jabil Inc. 0.300% (cost: $4,996,750 due: 08/27/2021) 4,997,626 1.40 5,000,000 Viatris Inc. 0.174% (cost: $9,998,984 due: 07/20/2021) 9,999,080 2.81 10,000,000 Viatris Inc. 0.200% (cost: $2,498,861 due: 09/13/2021) 2,498,972 0.70 2,500,000 Viatris Inc. 0.200% (cost: $2,498,764 due: 09/15/2021) 2,498,945 0.70 2,500,000 Total commercial paper (cost: $129,455,239) $ 129,479,494 36.33 % Total cash equivalents $ 179,995,379 50.51 % Notional Amount (Long Exposure) Commodity futures contracts United States corn futures contracts CBOT corn futures SEP21 (2,092 contracts) $ 7,311,611 2.05 % $ 63,073,800 CBOT corn futures DEC21 (1,823 contracts) 12,332,784 3.46 53,960,800 United States soybean futures contracts CBOT soybean futures NOV21 (359 contracts) 4,711,635 1.32 25,112,050 CBOT soybean futures JAN22 (307 contacts) 78,443 0.02 21,486,163 CBOT soybean futures NOV22 (381 contacts) 2,294,210 0.64 24,193,500 United States sugar futures contracts ICE sugar futures MAR22 (382 contracts) 1,444,358 0.41 7,735,347 ICE sugar futures MAY22 (344 contracts) 84,905 0.02 6,630,669 ICE sugar futures MAR23 (423 contracts) 435,557 0.12 7,698,600 United States wheat futures contracts CBOT wheat futures SEP21 (889 contracts) 845,125 0.24 30,203,775 CBOT wheat futures DEC21 (753 contracts) 3,320,874 0.93 25,790,250 Total commodity futures contracts $ 32,859,502 9.21 % $ 265,884,954 Percentage of Notional Amount Description: Liabilities Fair Value Net Assets (Long Exposure) Commodity futures contracts United States corn futures contracts CBOT corn futures DEC22 (2,383 contracts) $ 1,110,723 0.31 % $ 60,409,050 United States wheat futures contracts CBOT wheat futures DEC22 (861 contracts) 232,887 0.07 30,027,375 Total commodity futures contracts $ 1,343,610 0.38 % $ 90,436,425 Exchange-traded funds* Shares Teucrium Corn Fund $ 2,591,714 0.73 % 120,872 Teucrium Soybean Fund 2,552,729 0.72 107,299 Teucrium Sugar Fund 2,495,290 0.70 294,242 Teucrium Wheat Fund 2,457,086 0.69 364,207 Total exchange-traded funds (cost $8,960,682) $ 10,096,819 2.84 % _____________ *The Trust eliminates the shares owned by the Teucrium Agricultural Fund from its combined statements of assets and liabilities due to the fact that these represent holdings of the other four Funds (“Underlying Funds”) owned by the Teucrium Agricultural Fund, which are included as shares outstanding of the Underlying Funds. The accompanying notes are an integral part of these financial statements. 5 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X 0.04% (cost $56,055,737) $ 56,055,737 18.08 % 56,055,737 Blackrock Liquidity FedFund - Institutional Class 0.005% (cost $5,065,941) 5,065,941 1.63 5,065,941 Total money market funds (cost: $61,121,678) $ 61,121,678 19.71 % Principal Amount Commercial Paper Energy Transfer Operating, L.P. 0.501% (cost: $7,496,667 due 01/29/2021) $ 7,497,084 2.42 % 7,500,000 Energy Transfer Operating, L.P. 0.421% (cost: $4,997,725 due 01/29/2021) 4,998,366 1.61 5,000,000 Energy Transfer Operating, L.P. 0.501% (cost: $7,496,771 due 02/05/2021) 7,496,771 2.42 7,500,000 General Motors Financial Company, Inc. 0.400% (cost: $4,995,890 due 01/04/2021) 4,999,834 1.61 5,000,000 General Motors Financial Company, Inc. 0.411% (cost: $4,996,356 due 01/08/2021) 4,999,602 1.61 5,000,000 General Motors Financial Company, Inc. 0.471% (cost: $7,491,612 due 01/20/2021) 7,498,140 2.42 7,500,000 General Motors Financial Company, Inc. 0.471% (cost: $2,497,062 due 01/25/2021) 2,499,217 0.81 2,500,000 Harley-Davidson Financial Services, Inc. 0.310% (cost: $7,994,903 due 01/05/2021) 7,999,725 2.58 8,000,000 Harley-Davidson Financial Services, Inc. 0.250% (cost: $9,993,749 due 01/11/2021) 9,999,305 3.22 10,000,000 Harley-Davidson Financial Services, Inc. 0.270% (cost: $1,999,025 due 01/20/2021) 1,999,715 0.64 2,000,000 Hyundai Capital America, Inc. 0.150% (cost: $7,497,595 due 02/01/2021) 7,499,031 2.42 7,500,000 Hyundai Capital America, Inc. 0.170% (cost: $9,996,980 due 02/03/2021) 9,998,443 3.22 10,000,000 Jabil Inc. 0.430% (cost: $9,994,507 due 01/29/2021) 9,996,656 3.22 10,000,000 Jabil Inc. 0.501% (cost: $7,491,459 due 02/24/2021) 7,494,375 2.42 7,500,000 Jabil Inc. 0.401% (cost: $2,498,528 due 02/26/2021) 2,498,528 0.81 2,500,000 Marathon Petroleum Corporation 0.350% (cost: $7,496,063 due 02/01/2021) 7,497,739 2.42 7,500,000 Marathon Petroleum Corporation 0.381% (cost: $12,490,368 due 02/26/2021) 12,492,610 4.03 12,500,000 Viatris Inc. 0.372% (cost: $9,994,117 due 02/26/2021) 9,994,220 3.22 10,000,000 Viatris Inc. 0.451% (cost: $4,994,438 due 03/22/2021) 4,995,000 1.61 5,000,000 WGL Holdings, Inc. 0.200% (cost: $2,499,528 due 01/26/2021) 2,499,653 0.81 2,500,000 WGL Holdings, Inc. 0.200% (cost: $2,499,417 due 01/27/2021) 2,499,639 0.81 2,500,000 Walgreens Boots Alliance, Inc. 0.246% (cost: $14,993,143 due 03/05/2021) 14,993,553 4.83 15,000,000 Total commercial paper (total cost: $152,405,903) $ 152,447,206 49.16 % Total cash equivalents $ 213,568,884 68.87 % Notional Amount (Long Exposure) Commodity futures contracts CBOT corn futures MAY21 (2,004 contracts) $ 9,160,307 2.95 % $ 48,421,650 CBOT corn futures JUL21 (1,727 contracts) 4,516,403 1.46 41,469,588 CBOT corn futures DEC21 (2,226 contracts) 6,477,896 2.09 48,387,675 United States soybean futures contracts CBOT soybean futures MAR21 (479 contracts) 7,011,407 2.26 31,398,450 CBOT soybean futures MAY21 (411 contracts) 3,404,313 1.10 26,853,712 CBOT soybean futures NOV21 (557 contracts) 4,708,506 1.52 30,962,238 United States sugar futures contracts ICE sugar futures MAY21 (272 contracts) 550,868 0.18 4,472,115 ICE sugar futures JUL21 (241 contracts) 345,612 0.11 3,830,165 ICE sugar futures MAR22 (279 contracts) 511,223 0.16 4,459,090 United States wheat futures contracts CBOT wheat futures MAY21 (765 contracts) 2,297,658 0.74 24,460,875 CBOT wheat futures JUL21 (668 contracts) 687,506 0.22 20,983,550 CBOT wheat futures DEC21 (767 contracts) 2,752,998 0.89 24,419,363 Total commodity futures contracts $ 42,424,697 13.68 % $ 310,118,471 Exchange-traded funds* Shares Teucrium Corn Fund $ 401,787 0.13 % 25,858 Teucrium Soybean Fund 401,177 0.13 20,581 Teucrium Sugar Fund 383,816 0.12 57,124 Teucrium Wheat Fund 395,482 0.13 64,237 Total exchange-traded funds (cost $1,586,899) $ 1,582,262 0.51 % ________________ *The Trust eliminates the shares owned by the Teucrium Agricultural Fund from its combined statements of assets and liabilities due to the fact that these represent holdings of the Underlying Funds owned by the Teucrium Agricultural Fund, which are included as shares outstanding of the Underlying Funds. The accompanying notes are an integral part of these financial statements. 6 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of commodity futures contracts: Realized gain (loss) on commodity futures contracts $ 53,285,729 $ ( 7,587,383 ) $ 94,409,594 $ ( 9,277,336 ) Net change in unrealized appreciation (depreciation) on commodity futures contracts 2,156,491 1,512,207 ( 10,908,805 ) ( 10,953,308 ) Interest income 150,609 348,584 317,178 989,116 Total income (loss) 55,592,829 ( 5,726,592 ) 83,817,967 ( 19,241,528 ) Expenses Management fees 937,661 356,401 1,800,719 740,764 Professional fees 330,066 467,596 708,673 758,485 Distribution and marketing fees 833,633 624,765 1,588,276 1,278,946 Custodian fees and expenses 79,596 106,162 181,240 184,034 Business permits and licenses fees 20,253 67,067 96,354 108,944 General and administrative expenses 145,755 125,363 204,693 176,273 Other expenses - 6 - 25 Total expenses 2,346,964 1,747,360 4,579,955 3,247,471 Expenses waived by the Sponsor ( 713,878 ) ( 243,764 ) ( 966,062 ) ( 417,017 ) Total expenses, net 1,633,086 1,503,596 3,613,893 2,830,454 Net income (loss) $ 53,959,743 $ ( 7,230,188 ) $ 80,204,074 $ ( 22,071,982 ) The accompanying notes are an integral part of these financial statements. 7 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 80,204,074 $ ( 22,071,982 ) Capital transactions Issuance of Shares 116,881,776 85,735,034 Redemption of Shares ( 143,488,391 ) ( 32,294,893 ) Net change in the cost of the Underlying Funds ( 7,434,213 ) 211,920 Total capital transactions ( 34,040,828 ) 53,652,061 Net change in net assets 46,163,246 31,580,079 Net assets, beginning of period 310,113,194 167,906,597 Net assets, end of period $ 356,276,440 $ 199,486,676 The accompanying notes are an integral part of these financial statements. 8 Table of Contents TEUCRIUM COMMODITY TRUST COMBINED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 80,204,074 $ ( 22,071,982 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net change in unrealized depreciation on commodity futures contracts 10,908,805 10,953,308 Changes in operating assets and liabilities: Due from broker ( 12,874,001 ) ( 18,137,488 ) Interest receivable ( 4,009 ) ( 4,128 ) Receivable for investments sold - ( 211,145 ) Other assets ( 1,547 ) ( 62,135 ) Due to broker ( 26,857,348 ) ( 5,140,126 ) Management fee payable to Sponsor 39,161 ( 12,815 ) Payable for purchases of commercial paper ( 9,995,298 ) 7,495,500 Other liabilities ( 14,828 ) ( 5,906 ) Net cash provided by (used in) operating activities 41,405,009 ( 27,196,917 ) Cash flows from financing activities: Proceeds from sale of Shares 117,189,606 85,735,034 Redemption of Shares ( 147,893,306 ) ( 28,053,759 ) Net change in cost of the Underlying Funds ( 7,434,213 ) 211,920 Net cash (used in) provided by financing activities ( 38,137,913 ) 57,893,195 Net change in cash and cash equivalents 3,267,096 30,696,278 Cash and cash equivalents beginning of period 309,378,295 166,081,885 Cash and cash equivalents end of period $ 312,645,391 $ 196,778,163 The accompanying notes are an integral part of these financial statements. 9 Table of Contents NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Commodity Trust (“Trust”), a Delaware statutory trust organized on September 11, 2009, is a series trust consisting of five series: Teucrium Corn Fund (“CORN”), Teucrium Sugar Fund (“CANE”), Teucrium Soybean Fund (“SOYB”), Teucrium Wheat Fund (“WEAT”), and Teucrium Agricultural Fund (“TAGS”) . All of these series of the Trust are collectively referred to as the “Funds” and singularly as the “Fund.” Each Fund is a commodity pool that is a series of the Trust. The Funds issue common units, called the “Shares,” representing fractional undivided beneficial interests in a Fund. Effective as of April 29, 2019, the Trust and the Funds operate pursuant to the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). On June 7, 2010, the initial Form S-1 for CORN was declared effective by the U.S. Securities and Exchange Commission (“SEC”). On June 8, 2010, four Creation Baskets for CORN were issued representing 200,000 shares and $ 5,000,000 . CORN began trading on the New York Stock Exchange (“NYSE”) Arca on June 9, 2010. The current registration statement for CORN was declared effective by the SEC on October 2, 2020. The registration statement for CORN registered an additional 20,000,000 shares. On June 13, 2011, the initial Forms S-1 for CANE, SOYB, and WEAT were declared effective by the SEC. On September 16, 2011, two Creation Baskets were issued for each Fund, representing 100,000 shares and $ 2,500,000 , for CANE, SOYB, and WEAT. On September 19, 2011, CANE, SOYB, and WEAT started trading on the NYSE Arca. The current registration statements for CANE was declared effective on October 2, 2020 and the current registration statement for SOYB was declared effective by the SEC on August 24, 2020. The registration statements for SOYB and CANE registered an additional 15,000,000 shares each. The current registration statement for WEAT was declared effective on April 29, 2019. This registration statement for WEAT registered an additional 30,000,000 shares. On February 10, 2012, the Form S-1 for TAGS was declared effective by the SEC. On March 27, 2012, six Creation Baskets for TAGS were issued representing 300,000 shares and $ 15,000,000 . TAGS began trading on the NYSE Arca on March 28, 2012. The current registration statement for TAGS was declared effective by the SEC on April 30, 2021. Teucrium Trading, LLC is the sponsor (“Sponsor”) of the Trust. The Sponsor is a member of the National Futures Association (the "NFA") and became a commodity pool operator ("CPO") registered with the Commodity Futures Trading Commission (the "CFTC") effective November 10, 2009. The Sponsor registered as a Commodity Trading Advisor ("CTA") with the CFTC effective September 8, 2017. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Trust’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the audited financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC in its capacity as the Sponsor of the Trust may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $47,000 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the combined statements of operations. A summary of these expenses is included below. 10 Table of Contents The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the combined statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FINRA. ED & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the combined statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the combined statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the combined statements of operations when a contract is sold. A summary of these expenses is included below. The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the combined statements of operations. A summary of these expenses is included below. The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 79,596 $ 106,162 $ 181,240 $ 184,034 Amount of Custody Services Waived $ 26,078 $ 2,607 $ 26,809 $ 15,342 Amount Recognized for Distribution Services $ 43,666 $ 35,719 $ 91,315 $ 79,422 Amount of Distribution Services Waived $ 17,997 $ 1,005 $ 24,201 $ 2,475 Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 84,048 $ 22,500 $ 160,768 $ 45,000 Amount of Thales Waived $ 41,175 $ 1,647 $ 41,678 $ 1,777 11 Table of Contents Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared on a combined basis in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification and include the accounts of the Trust, CORN, CANE, SOYB, WEAT and TAGS. Refer to the accompanying separate financial statements for each Fund for more detailed information. The periods represented by the financial statements herein contain the results of CORN, SOYB, CANE, WEAT, and TAGS for the months during which each Fund was in operation, except for eliminations for TAGS as explained below. Given the investment objective of TAGS as described in Note 1 above, TAGS will buy, sell and hold, as part of its normal operations, shares of the four Underlying Funds. The Trust eliminates the shares of the other series of the Trust owned by TAGS from its combined statements of assets and liabilities. The Trust eliminates the net change in unrealized appreciation or depreciation on securities owned by TAGS from its combined statements of operations. The combined statements of changes in net assets and cash flows present a net presentation of the purchases and sales of the Underlying Funds by TAGS. Revenue Recognition Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the combined statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the combined statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the combined statements of operations when a contract is sold. Changes in the appreciation or depreciation between periods are reflected in the combined statements of operations. Interest on cash equivalents with financial institutions are recognized on the accrual basis. The Funds earn interest on funds held at the custodian and other financial institutions at prevailing market rates for such investments. The Sponsor invests a portion of cash in commercial paper, which is deemed a cash equivalent based on the rating and duration of contracts as described in the notes to the combined financial statements and reflected in cash and cash equivalents on the combined statements of assets and liabilities and on the combined statements of cash flows. Accretion on these investments is recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. The Sponsor invests a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts. Accretion on these investments is recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. Brokerage Commissions Beginning on August 21, 2019, the Sponsor began recognizing the expense for brokerage commissions for futures contract trades on a per-trade basis. Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis. The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021 and 2020. CORN SOYB CANE WEAT TAGS TRUST Three Months Ended June 30, 2021 $ 41,225 $ 6,543 $ 8,957 $ 11,048 $ - $ 67,772 Three Months Ended June 30, 2020 $ 25,268 $ 5,691 $ 5,168 $ 7,357 $ - $ 43,484 Six Months Ended June 30, 2021 $ 75,191 $ 21,735 $ 12,434 $ 22,523 $ - $ 131,883 Six Months Ended June 30, 2020 $ 40,422 $ 10,145 $ 8,243 $ 14,159 $ 1 $ 72,970 12 Table of Contents Income Taxes The Trust is organized and will be operated as a Delaware statutory trust. For federal income tax purposes, each Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. Each Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. Therefore, the Funds do not record a provision for income taxes because the shareholders report their share of a Fund’s income or loss on their income tax returns. The financial statements reflect the Funds’ transactions without adjustment, if any, required for income tax purposes. The Funds are required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Funds file income tax returns in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. For all tax years 2018 to 2020, the Funds remain subject to income tax examinations by major taxing authorities. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Funds recording a tax liability that reduces net assets. Based on their analysis, the Funds have determined that they have not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018. However, the Funds’ conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof. The Funds recognize interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020. The Funds may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creations and Redemptions Authorized Purchasers may purchase Creation Baskets from each Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. (EST) time on the day the order to create the basket is received in good order. Authorized Purchasers may redeem shares from each Fund only in blocks of shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is received in good order. Each Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption are reflected in the statements of assets and liabilities as payable for shares redeemed. There are a minimum number of baskets and associated Shares specified for each Fund in the Fund’s respective prospectus, as amended from time to time. If a Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. These minimum levels are as follows: CORN: 50,000 shares representing 2 baskets SOYB: 50,000 shares representing 2 baskets CANE: 50,000 shares representing 2 baskets WEAT: 50,000 shares representing 2 baskets TAGS: 50,000 shares representing 4 baskets 13 Table of Contents Cash and Cash Equivalents Cash equivalents are highly liquid investments with original maturity dates of 90 days or less when acquired. The Trust reported its cash equivalents in the combined statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short term maturities. Each Fund that is a series of the Trust has the balance of its cash equivalents on deposit with financial institutions. The Trust holds a balance in money market funds that is included in cash and cash equivalents on the combined statements of assets and liabilities. The Sponsor invests a portion of the available cash for the Funds in alternative demand deposit savings accounts, which are classified as cash and not as cash equivalents. Assets deposited with the bank may, at times, exceed federally insured limits. The Sponsor invests a portion of the available cash for the Funds in investment grade commercial paper with durations of 90 days or less, which is classified as a cash equivalent and is not FDIC insured. The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured. June 30, 2021 December 31, 2020 Money Market Funds $ 50,515,885 $ 61,121,678 Demand Deposit Savings Accounts 132,650,012 95,809,411 Commercial Paper 129,479,494 152,447,206 Total cash and cash equivalents as presented on the combined Statement of Assets and Liabilities $ 312,645,391 $ 309,378,295 Payable for Purchases of Commercial Paper The amount recorded by the Trust for commercial paper transactions awaiting settlement represents the amount payable for contracts purchased but not yet settled as of the reporting date. The value of the contract is included in cash and cash equivalents, and the payable amount is included as a liability. Due from/to Broker The amount recorded by the Trust for the amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing broker related to open transactions, payables for commodities futures accounts liquidating to an equity balance on the clearing broker’s records, and amounts of brokerage commissions paid and recognized as unrealized losses. Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Funds’ clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure. When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest. Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Funds’ trading, the Funds (and not their shareholders personally) are subject to margin calls. Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated, and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions. 14 Table of Contents Payable/Receivable for Securities Purchased/Sold Due from/to broker for investments in securities are securities transactions pending settlement. The Trust and the Funds are subject to credit risk to the extent any broker with whom it conducts business is unable to fulfill contractual obligations on its behalf. The management of the Trust and the Funds monitors the financial condition of such brokers and does not anticipate any losses from these counterparties. From inception through September 11, 2019, the principal broker through which the Trust and TAGS can execute securities transaction for TAGS was the Bank of New York Mellon Capital Markets. Effective September 11, 2019, the principal broker through which the Trust and TAGS can execute securities transactions for TAGS is U.S. Bank N.A. Sponsor Fee, Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Funds in accordance with the objectives and policies of each Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor has elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor performs itself. In addition, the Funds, except for TAGS which has no such fee, are contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00% per annum. The Funds pay for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA or any other regulatory agency in connection with the offer and sale of subsequent Shares, after its initial registration, and all legal, accounting, printing and other expenses associated therewith. The Funds also pay the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the combined statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Trust and the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Trust and the Funds. Such expenses are primarily included as distribution and marketing fees in the financial statements of each Fund. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 657,508 $ 481,113 $ 1,183,727 $ 1,072,237 Waived Related Party Transactions $ 331,101 $ 84,225 $ 450,842 $ 184,907 The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period. CORN SOYB CANE WEAT TAGS TRUST Three months ended June 30, 2021 $ 321,515 $ 243,419 $ 31,549 $ 95,936 $ 21,459 $ 713,878 Three months ended June 30, 2020 $ 108,468 $ 47,076 $ 76,539 $ - $ 11,681 $ 243,764 Six months ended June 30, 2021 $ 441,781 $ 305,996 $ 58,039 $ 124,651 $ 35,595 $ 966,062 Six months ended June 30, 2020 $ 195,575 $ 77,047 $ 113,892 $ - $ 30,503 $ 417,017 Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. 15 Table of Contents Fair Value - Definition and Hierarchy In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Trust uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 futures contracts held by CORN, SOYB, CANE and WEAT, the securities of the Underlying Funds held by TAGS, and any other securities held by any Fund, together referenced throughout this filing as “financial instruments.” Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Trust’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Trust uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This condition could cause a financial instrument to be reclassified to a lower level within the fair value hierarchy. For instance, when Corn Futures Contracts on the Chicago Board of Trade (“CBOT”) are not actively trading due to a “limit-up” or ‘limit-down” condition, meaning that the daily change in the Corn Futures Contracts has exceeded the limits established, the Trust and the Fund will revert to alternative verifiable sources of valuation of its assets. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports. On June 30, 2021 and December 31, 2020, in the opinion of the Trust, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, which settled in a “limit up” condition on June 30, 2021. Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021 and the financial statements of CORN and TAGS, due to the NAV adjustment for the Underlying Fund, have been adjusted accordingly. The adjustment in CORN has resulted in a $711,275 increase in the unrealized change in commodity futures contracts in excess of reported CBOT values and have classified these as a Level 2 asset for the period ended June 30, 2021. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. For the quarter ended March 31, 2021, Corn Futures Contracts for the Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition. Accordingly, the Trust, CORN, and SOYB classified these as Level 2 assets. The financial statements of these funds including TAGS, due to the NAV adjustment for each of these Underlying Funds, were adjusted accordingly. The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $3,371,513 for CORN and $279,750 for SOYB. The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sept21 and Dec21 corn futures contracts remained a Level 2 asset as described above. 16 Table of Contents For the quarter ended June 30, 2020, the Dec21 CBOT Wheat Futures Contracts traded on the CBOT did not, in the opinion of the Trust and WEAT, trade in an actively traded futures market as defined in the policy of the Trust and WEAT for the entire period during which they were held. Accordingly, the Trust and WEAT classified these as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract. These Wheat contracts transferred back to a Level 1 asset for the period ended September 30, 2020. The Funds and the Trust record their derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT and the ICE, or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts), which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy. Investments in the securities of the Underlying Funds are freely traded and listed on the NYSE Arca. These investments are valued at the NAV of the Underlying Fund as of the valuation date as calculated by the administrator based on the exchange-quoted prices of the commodity futures contracts held by the Underlying Fund. Expenses Expenses are recorded using the accrual method of accounting. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Funds. The FASB issued ASU 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds. The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds. The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds. The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds. The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 17 Table of Contents Note 4 – Fair Value Measurements The Trust’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Trust’s significant accounting policies in Note 3. The following table presents information about the Trust’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Cash Equivalents $ 179,995,379 $ - $ - $ 179,995,379 Commodity Futures Contracts Corn futures contracts - 19,644,395 - 19,644,395 Soybean futures contracts 7,084,288 - - 7,084,288 Sugar futures contracts 1,964,820 - - 1,964,820 Wheat futures contracts 4,165,999 - - 4,165,999 Total $ 193,210,486 $ 19,644,395 $ - $ 212,854,881 Liabilities Level 1 Level 2 Level 3 Balance as of June 30, 2021 Commodity Futures Contracts Corn futures contracts $ 1,110,723 $ - $ - $ 1,110,723 Wheat futures contracts 232,887 - - 232,887 Total $ 1,343,610 $ - $ - $ 1,343,610 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Cash Equivalents $ 213,568,884 $ - $ - $ 213,568,884 Commodity Futures Contracts Corn futures contracts 20,154,606 - - $ 20,154,606 Soybean futures contracts 15,124,226 - - $ 15,124,226 Sugar futures contracts 1,407,703 - - $ 1,407,703 Wheat futures contracts 5,738,162 - - $ 5,738,162 Total $ 255,993,581 $ - $ - $ 255,993,581 For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Funds did not have any significant transfers between any of the levels of the fair value hierarchy except for: the Sep21 CBOT corn futures and the Dec 21 CBOT corn futures which were reflected as a Level 2 investment for the period ended June 30, 2021 due to a “limit up” situation; the July21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, which were reflected as a Level 2 investment for the period ended March 31, 2021 due to a “limit up” situation. The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset. The Dec 21 CBOT Wheat contracts held by WEAT, which were reflected as a Level 2 investment for the period ended June 30, 2020 due to the quarterly average daily volume for the contract and which were transferred back to a Level 1 asset for the period ended September 30, 2020. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. 18 Table of Contents Note 5 – Derivative Instruments and Hedging Activities In the normal course of business, the Funds utilize derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Funds’ derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Funds are also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Funds invested only in commodity futures contracts specifically related to each Fund. Futures Contracts The Funds are subject to commodity price risk in the normal course of pursuing their investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. The purchase and sale of futures contracts requires margin deposits with a FCM. Subsequent payments (variation margin) are made or received by each Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by each Fund. Futures contracts may reduce the Funds’ exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to each Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited. The following table discloses information about offsetting assets and liabilities presented in the combined statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020. Offsetting of Financial Assets and Derivative Assets as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Corn futures contracts $ 19,644,395 $ - $ 19,644,395 $ 1,110,723 $ - $ 18,533,672 Soybean futures contracts $ 7,084,288 $ - $ 7,084,288 $ - $ - $ 7,084,288 Sugar futures contracts $ 1,964,820 $ - $ 1,964,820 $ - $ 420,810 $ 1,544,010 Wheat futures contracts $ 4,165,999 $ - $ 4,165,999 $ 232,887 $ - $ 3,933,112 19 Table of Contents Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Liabilities Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due from Broker Net Amount Commodity Price Corn futures contracts $ 1,110,723 $ - $ 1,110,723 $ 1,110,723 $ - $ - Wheat futures contracts $ 232,887 $ - $ 232,887 $ 232,887 $ - $ - Offsetting of Financial Assets and Derivative Assets as of December 31, 2020 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Corn futures contracts $ 20,154,606 $ - $ 20,154,606 $ - $ 12,973,828 $ 7,180,778 Soybean futures contracts $ 15,124,226 $ - $ 15,124,226 $ - $ 11,257,566 $ 3,866,660 Sugar futures contracts $ 1,407,703 $ - $ 1,407,703 $ - $ 475,661 $ 932,042 Wheat futures contracts $ 5,738,162 $ - $ 5,738,162 $ - $ 2,571,103 $ 3,167,059 The following is a summary of realized and unrealized gains (losses) of the derivative instruments utilized by the Trust: Three months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized (Depreciation) Appreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ 36,449,652 $ ( 2,942,665 ) Soybean futures contracts 7,663,258 684,574 Sugar futures contracts 2,012,151 1,163,959 Wheat futures contracts 7,160,668 3,250,623 Total commodity futures contracts $ 53,285,729 $ 2,156,491 Three months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Appreciation (Depreciation) on Commodity Futures Contracts Commodity Price Corn futures contracts $ ( 5,200,091 ) $ 4,223,848 Soybean futures contracts ( 861,903 ) 1,484,213 Sugar futures contracts ( 1,239,596 ) 1,689,036 Wheat futures contracts ( 285,793 ) ( 5,884,890 ) Total commodity futures contracts $ ( 7,587,383 ) $ 1,512,207 Six months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized (Depreciation) Appreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ 55,246,132 $ ( 1,620,934 ) Soybean futures contracts 25,817,715 ( 8,039,938 ) Sugar futures contracts 3,265,631 557,117 Wheat futures contracts 10,080,116 ( 1,805,050 ) Total commodity futures contracts $ 94,409,594 $ ( 10,908,805 ) 20 Table of Contents Six months ended June 30, 2020 Realized (Loss) Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ ( 6,779,194 ) $ ( 2,792,631 ) Soybean futures contracts ( 1,718,118 ) ( 809,552 ) Sugar futures contracts ( 947,538 ) ( 466,909 ) Wheat futures contracts 167,515 ( 6,884,216 ) Total commodity futures contracts $ (9,277,335 ) $ ( 10,953,308 ) Volume of Derivative Activities The average notional market value categorized by primary underlying risk for the futures contracts held was $ 376.9 million and $ 365.7 million for the three and six months ended June 30, 2021, respectively, and $ 161.5 million and $ 154.9 million for the three and six months ended June 30, 2020, respectively. Note 6 - Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the shares of the Funds, including applicable SEC registration fees, were borne directly by the Sponsor for the Funds and will be borne directly by the Sponsor for any series of the Trust which is not yet operating or will be issued in the future. The Trust will not be obligated to reimburse the Sponsor. Note 7 – Detail of the net assets and shares outstanding of the Funds that are a series of the Trust The following are the net assets and shares outstanding of each Fund that is a series of the Trust and, thus, in total, comprise the combined net assets of the Trust: June 30, 2021 Outstanding Shares Net Assets Teucrium Corn Fund 8,275,004 $ 177,431,275 Teucrium Soybean Fund 2,975,004 70,777,806 Teucrium Sugar Fund 2,600,004 22,049,153 Teucrium Wheat Fund 12,750,004 86,017,246 Teucrium Agricultural Fund: Net assets including the investment in the Underlying Funds 387,502 10,097,779 Less: Investment in the Underlying Funds ( 10,096,819 ) Net for the Fund in the combined net assets of the Trust 960 Total $ 356,276,440 December 31, 2020 Outstanding Shares Net Assets Teucrium Corn Fund 8,900,004 $ 138,289,537 Teucrium Soybean Fund 4,575,004 89,178,862 Teucrium Sugar Fund 1,900,004 12,766,091 Teucrium Wheat Fund 11,350,004 69,876,578 Teucrium Agricultural Fund: Net assets including the investment in the Underlying Funds 75,002 1,584,388 Less: Investment in the Underlying Funds ( 1,582,262 ) Net for the Fund in the combined net assets of the Trust 2,126 Total $ 310,113,194 The detailed information for the subscriptions and redemptions, and other financial information for each Fund that is a series of the Trust are included in the accompanying financial statements of each Fund. 21 Table of Contents Note 8 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Trust and Funds other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Trust and the Funds is described in more detail in Part II of this 10-Q. CORN: The total net assets of the Fund decreased by $ 38,633,498 , or 22 %, for the period June 30, 2021 to August 6, 2021. This was driven by a 3 % decrease in the NAV per share and a 19 % decrease in the shares outstanding. SOYB: Nothing to report. CANE: Nothing to report. WEAT: Nothing to report. TAGS: Nothing to report. 22 Table of Contents TEUCRIUM CORN FUND STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash and cash equivalents $ 152,622,143 $ 138,181,061 Interest receivable 10,402 7,343 Other assets 1,153 - Equity in trading accounts: Commodity futures contracts 19,644,395 20,154,606 Due from broker 6,429,007 - Total equity in trading accounts 26,073,402 20,154,606 Total assets 178,707,100 158,343,010 Liabilities Management fee payable to Sponsor 148,220 117,864 Payable for purchases of commercial paper - 4,997,847 Other liabilities 16,882 21,659 Payable for shares redeemed - 1,942,275 Equity in trading accounts: Commodity futures contracts 1,110,723 - Due to broker - 12,973,828 Total equity in trading accounts 1,110,723 12,973,828 Total liabilities 1,275,825 20,053,473 Net assets $ 177,431,275 $ 138,289,537 Shares outstanding 8,275,004 8,900,004 Shares Authorized 24,050,000 27,450,000 Net asset value per share $ 21.44 $ 15.54 Market value per share $ 21.37 $ 15.58 The accompanying notes are an integral part of these financial statements. 23 Table of Contents TEUCRIUM CORN FUND SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost: $8,559,427) $ 8,559,427 4.82 % 8,559,427 Goldman Sachs Financial Square Government Fund - Institutional Class (cost: $16,509,476) 16,509,476 9.30 16,509,476 Total money market funds (cost: $25,068,903) $ 25,068,903 14.12 % Principal Amount Commercial Paper Brookfield Infrastructure Holdings (Canada) Inc. 0.240% (cost: $9,998,200 due 07/21/2021) $ 9,998,667 5.64 % 10,000,000 Brookfield Infrastructure Holdings (Canada) Inc. 0.216% (cost: $4,999,161 due 07/21/2021) 4,999,401 2.82 5,000,000 Canadian Natural Resources Limited 0.140% (cost: $4,999,495 due 07/26/2021) 4,999,514 2.82 5,000,000 FMC Corporation 0.200% (cost: $2,499,611 due 07/12/2021) 2,499,847 1.41 2,500,000 General Motors Financial Company, Inc. 0.230% (cost: $3,498,099 due 07/06/2021) 3,499,888 1.97 3,500,000 General Motors Financial Company, Inc. 0.230% (cost: $1,499,167 due 07/08/2021) 1,499,933 0.85 1,500,000 General Motors Financial Company, Inc. 0.170% (cost: $2,498,950 due 09/13/2021) 2,499,126 1.41 2,500,000 Harley-Davidson Financial Services, Inc. 0.170% (cost: $2,498,937 due 08/03/2021) 2,499,610 1.41 2,500,000 Harley-Davidson Financial Services, Inc. 0.160% (cost: $4,998,067 due 08/06/2021) 4,999,200 2.82 5,000,000 Harley-Davidson Financial Services, Inc. 0.150% (cost: $2,499,136 due 09/16/2021) 2,499,199 1.41 2,500,000 Humana Inc. 0.187% (cost: $4,997,818 due 07/21/2021) 4,999,481 2.82 5,000,000 Jabil Inc. 0.210% (cost: $2,499,388 due 07/16/2021) 2,499,781 1.41 2,500,000 Jabil Inc. 0.309% (cost: $4,996,353 due 08/27/2021) 4,997,555 2.82 5,000,000 Jabil Inc. 0.300% (cost: $2,498,375 due 08/27/2021) 2,498,813 1.41 2,500,000 Viatris Inc. 0.174% (cost: $7,499,238 due 07/20/2021) 7,499,310 4.23 7,500,000 Total commercial paper (cost: $62,479,995) $ 62,489,325 35.25 % Total cash equivalents $ 87,558,228 49.37 % Notional Amount (Long Exposure) Commodity futures contracts United States corn futures contracts CBOT corn futures SEP21 (2,092 contracts) $ 7,311,611 4.12 % $ 63,073,800 CBOT corn futures DEC21 (1,823 contracts) 12,332,784 6.95 53,960,800 Total commodity futures contracts $ 19,644,395 11.07 % $ 117,034,600 Percentage of Notional Amount Description: Liabilities Fair Value Net Assets (Long Exposure) Commodity futures contracts United States corn futures contracts CBOT corn futures DEC22 (2,383 contracts) $ 1,110,723 0.63 % $ 60,409,050 The accompanying notes are an integral part of these financial statements. 24 Table of Contents TEUCRIUM CORN FUND SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X 0.04% (cost $27,477,241) $ 27,477,241 19.87 % 27,477,241 Blackrock Liquidity FedFund - Institutional Class 0.005% (cost $19,076) 19,076 0.01 19,076 Total money market funds (cost: $27,496,317) $ 27,496,317 19.88 % Principal Amount Commercial Paper Energy Transfer Operating, L.P. 0.501% (cost: $2,498,889 due 01/29/2021) $ 2,499,028 1.81 % 2,500,000 Energy Transfer Operating, L.P. 0.501% (cost: $4,997,847 due 02/05/2021) 4,997,847 3.61 5,000,000 General Motors Financial Company, Inc. 0.411% (cost: $2,498,178 due 01/08/2021) 2,499,801 1.81 2,500,000 General Motors Financial Company, Inc. 0.471% (cost: $4,994,386 due 01/20/2021) 4,998,760 3.61 5,000,000 General Motors Financial Company, Inc. 0.471% (cost: $2,497,226 due 01/20/2021) 2,499,380 1.81 2,500,000 General Motors Financial Company, Inc. 0.471% (cost: $2,497,062 due 01/25/2021) 2,499,217 1.81 2,500,000 Harley-Davidson Financial Services, Inc. 0.310% (cost: $5,496,496 due 01/05/2021) 5,499,811 3.98 5,500,000 Harley-Davidson Financial Services, Inc. 0.250% (cost: $2,498,437 due 01/11/2021) 2,499,826 1.81 2,500,000 Hyundai Capital America, Inc. 0.150% (cost: $4,998,397 due 02/01/2021) 4,999,354 3.62 5,000,000 Hyundai Capital America, Inc. 0.170% (cost: $4,998,490 due 02/03/2021) 4,999,221 3.61 5,000,000 Jabil Inc. 0.430% (cost: $4,997,253 due 01/29/2021) 4,998,328 3.61 5,000,000 Jabil Inc. 0.501% (cost: $4,994,306 due 02/24/2021) 4,996,250 3.61 5,000,000 Marathon Petroleum Corporation 0.381% (cost: $4,996,147 due 02/26/2021) 4,997,044 3.61 5,000,000 Viatris Inc. 0.372% (cost: $7,495,588 due 02/26/2021) 7,495,665 5.42 7,500,000 Viatris Inc. 0.451% (cost: $2,497,219 due 03/22/2021) 2,497,500 1.81 2,500,000 WGL Holdings, Inc. 0.200% (cost: $2,499,528 due 01/26/2021) 2,499,653 1.81 2,500,000 Walgreens Boots Alliance, Inc. 0.246% (cost: $4,997,715 due 03/05/2021) 4,997,851 3.61 5,000,000 Total commercial paper (cost: $70,453,164) $ 70,474,536 50.96 % Total cash equivalents $ 97,970,853 70.84 % Notional Amount (Long Exposure) Commodity futures contracts United States corn futures contracts CBOT corn futures MAY21 (2,004 contracts) $ 9,160,307 6.62 % $ 48,421,650 CBOT corn futures JUL21 (1,727 contracts) 4,516,403 3.27 41,469,588 CBOT corn futures DEC21 (2,226 contracts) 6,477,896 4.68 48,387,675 Total commodity futures contracts $ 20,154,606 14.57 % $ 138,278,913 The accompanying notes are an integral part of these financial statements. 25 Table of Contents TEUCRIUM CORN FUND STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of commodity futures contracts: Realized gain (loss) on commodity futures contracts $ 36,449,652 $ ( 5,200,091 ) $ 55,246,132 $ ( 6,779,194 ) Net change in unrealized (depreciation) appreciation on commodity futures contracts ( 2,942,665 ) 4,223,848 ( 1,620,934 ) ( 2,792,631 ) Interest income 73,380 154,141 150,938 443,599 Total income (loss) 33,580,367 ( 822,102 ) 53,776,136 ( 9,128,226 ) Expenses Management fees 454,901 147,767 845,526 318,564 Professional fees 159,044 209,862 330,824 339,668 Distribution and marketing fees 396,619 291,920 747,224 620,098 Custodian fees and expenses 37,780 54,528 84,187 91,856 Business permits and licenses fees 7,600 29,554 24,274 32,969 General and administrative expenses 60,845 57,338 88,946 82,958 Total expenses 1,116,789 790,969 2,120,981 1,486,113 Expenses waived by the Sponsor ( 321,515 ) ( 108,468 ) ( 441,781 ) ( 195,575 ) Total expenses, net 795,274 682,501 1,679,200 1,290,538 Net income (loss) $ 32,785,093 $ ( 1,504,603 ) $ 52,096,936 $ ( 10,418,764 ) Net income (loss) per share $ 3.83 $ ( 0.55 ) $ 5.90 $ ( 2.42 ) Net income (loss) per weighted average share $ 3.61 $ ( 0.31 ) $ 5.62 $ ( 2.14 ) Weighted average shares outstanding 9,091,488 4,890,389 9,265,335 4,862,504 The accompanying notes are an integral part of these financial statements. 26 Table of Contents TEUCRIUM CORN FUND STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 52,096,936 $ ( 10,418,764 ) Capital transactions Issuance of Shares 62,460,815 42,543,773 Redemption of Shares ( 75,416,013 ) ( 18,967,528 ) Total capital transactions ( 12,955,198 ) 23,576,245 Net change in net assets 39,141,738 13,157,481 Net assets, beginning of period $ 138,289,537 $ 75,220,190 Net assets, end of period $ 177,431,275 $ 88,377,671 Net asset value per share at beginning of period $ 15.54 $ 14.82 Net asset value per share at end of period $ 21.44 $ 12.40 Creation of Shares 3,400,000 3,475,000 Redemption of Shares 4,025,000 1,425,000 The accompanying notes are an integral part of these financial statements. 27 Table of Contents TEUCRIUM CORN FUND STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 52,096,936 $ ( 10,418,764 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net change in unrealized depreciation on commodity futures contracts 1,620,934 2,792,631 Changes in operating assets and liabilities: Due from broker ( 6,429,007 ) ( 9,784,701 ) Interest receivable ( 3,059 ) ( 1,558 ) Other assets ( 1,153 ) ( 48,494 ) Due to broker ( 12,973,828 ) - Management fee payable to Sponsor 30,356 ( 11,690 ) Payable for purchases of commercial paper ( 4,997,847 ) 7,495,500 Other liabilities ( 4,777 ) ( 16,317 ) Net cash provided by (used in) operating activities 29,338,555 ( 9,993,393 ) Cash flows from financing activities: Proceeds from sale of Shares 62,460,815 42,543,773 Redemption of Shares ( 77,358,288 ) ( 14,936,195 ) Net cash (used in) provided by financing activities ( 14,897,473 ) 27,607,578 Net change in cash and cash equivalents 14,441,082 17,614,185 Cash and cash equivalents, beginning of period 138,181,061 74,521,123 Cash and cash equivalents, end of period $ 152,622,143 $ 92,135,308 The accompanying notes are an integral part of these financial statements. 28 Table of Contents NOTES TO FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Corn Fund (referred to herein as “CORN,” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “CORN,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for corn interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share. The investment objective of CORN is to have the daily changes in the NAV of the Fund’s Shares reflect the daily changes in the corn market for future delivery as measured by the Benchmark. The Benchmark is a weighted average of the closing settlement prices for three futures contracts for corn (“Corn Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”): CORN Benchmark CBOT Corn Futures Contract Weighting Second to expire 35 % Third to expire 30 % December following the third to expire 35 % The Fund commenced investment operations on June 9, 2010 and has a fiscal year ending on December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). On June 7, 2010, the initial Form S-1 for CORN was declared effective by the U.S. Securities and Exchange Commission (“SEC”). On June 8, 2010, four Creation Baskets for CORN were issued representing 200,000 shares and $ 5,000,000 . CORN began trading on the New York Stock Exchange (“NYSE”) Arca on June 9, 2010. The current registration statement for CORN was declared effective by the SEC on October 2, 2020. This registration statement for CORN registered an additional 20,000,000 shares. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. 29 Table of Contents Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $47,000 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the statements of operations. A summary of these expenses is included below. The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FINRA. E D & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. A summary of these expenses is included below. The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the statements of operations. A summary of these expenses is included below. 30 Table of Contents The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 37,780 $ 54,528 $ 84,187 $ 91,856 Amount of Custody Services Waived $ 14,932 $ - $ 14,932 $ 10,000 Amount Recognized for Distribution Services $ 20,915 $ 17,356 $ 42,577 $ 39,671 Amount of Distribution Services Waived $ - $ - $ - $ - Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 39,747 $ 11,375 $ 74,077 $ 22,759 Amount of Thales Waived $ 30,020 $ - $ 30,020 $ - Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. Revenue Recognition Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. The Fund seeks to earn interest on its assets denominated in U.S. dollars on deposits with the Futures Commission Merchant. In addition, the Fund earns interest on funds held at the custodian and at other financial institutions at prevailing market rates for such investments. The Sponsor invests a portion of cash in commercial paper, which is deemed a cash equivalent based on the rating and duration of contracts as described in the notes to the financial statements and reflected in cash and cash equivalents on the statements of assets and liabilities and statements of cash flows. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the statements of operations. The Sponsor invests a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. Brokerage Commissions Beginning on August 21, 2019, the Sponsor began recognizing the expense for brokerage commissions for futures contract trades on a per-trade basis. Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis. The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021. CORN Three Months Ended June 30, 2021 $ 41,225 Three Months Ended June 30, 2020 $ 25,268 Six Months Ended June 30, 2021 $ 75,191 Six Months Ended June 30, 2020 $ 40,422 31 Table of Contents Income Taxes For federal income tax purposes, the Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. The Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. The Fund does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. The Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. For all tax years 2018 to 2020, the Fund remains subject to income tax examinations by major taxing authorities. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof. The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020. The Fund may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creations and Redemptions Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from CORN. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. (EST) on the day the order to create the basket is received in good order. Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is received is good order. The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the Fund’s statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption are reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed. As outlined in the most recent Form S-1 filing, 50,000 shares represents two Redemption Baskets for the Fund and a minimum level of shares. If the Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. 32 Table of Contents Allocation of Shareholder Income and Losses Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month. Cash and Cash Equivalents Cash equivalents are highly liquid investments with maturity dates of 90 days or less when acquired. The Fund reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short term maturities. Each Fund that is a series of the Trust has the balance of its cash equivalents on deposit with financial institutions. The Fund holds a balance in money market funds that is included in cash and cash equivalents on the statements of assets and liabilities. The Sponsor invests a portion of the available cash for the Funds in alternative demand deposit savings accounts, which is classified as cash and not as cash equivalents. Assets deposited with the bank may, at times, exceed federally insured limits. The Sponsor invests a portion of the available cash for the Funds in investment grade commercial paper with durations of 90 days or less, which is classified as a cash equivalent and is not FDIC insured. The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured. June 30, 2021 December 31, 2020 Money Market Funds $ 25,068,903 $ 27,496,317 Demand Deposit Savings Accounts 65,063,915 40,210,208 Commercial Paper 62,489,325 70,474,536 Total cash and cash equivalents as presented on the Statement of Assets and Liabilities $ 152,622,143 $ 138,181,061 Payable for Purchases of Commercial Paper The amount recorded by the Fund for commercial paper transactions awaiting settlement, represents the amount payable for contracts purchased but not yet settled as of the reporting date. The value of the contract is included in cash and cash equivalents, and the payable amount is included as a liability. Due from/to Broker The amount recorded by the Fund for the amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing broker related to open transactions, payables for commodities futures accounts liquidating to an equity balance on the clearing broker’s records and amounts of brokerage commissions paid and recognized as unrealized losses. Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure. 33 Table of Contents When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest. Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls. Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions. Calculation of Net Asset Value The Fund’s NAV is calculated by: • Taking the current market value of its total assets and • Subtracting any liabilities. The administrator, Global Fund Services, calculates the NAV of the Fund once each trading day. It calculates the NAV as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The NAV for a particular trading day is released after 4:15 p.m. (EST). In determining the value of Corn Futures Contracts, the administrator uses the CBOT closing price. The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The value of over the counter corn interests is determined based on the value of the commodity or futures contract underlying such corn interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such corn interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Short term Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open corn interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund. Sponsor Fee, Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor has elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor performs itself. In addition, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00 % per annum. The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Fund. Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 313,998 $ 233,294 $ 555,085 $ 534,936 Waived Related Party Transactions $ 149,274 $ 50,000 $ 219,168 $ 127,107 34 Table of Contents The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period: CORN Three months ended June 30, 2021 $ 321,515 Three months ended June 30, 2020 $ 108,468 Six months ended June 30, 2021 $ 441,781 Six months ended June 30, 2020 $ 195,575 Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair Value - Definition and Hierarchy In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these financial instruments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. 35 Table of Contents Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a financial instrument to be reclassified to a lower level within the fair value hierarchy. For instance, when Corn Futures Contracts on the CBOT are not actively trading due to a “limit-up” or limit-down” condition, meaning that the daily change in the Corn Futures Contracts has exceeded the limits established, the Trust and the Fund will revert to alternative verifiable sources of valuation of its assets. When such a situation exists on a quarter close, the Sponsor will calculate the Net Asset Value (“NAV”) on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports. On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, which settled in a “limit up” condition on June 30, 2021. Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021 and the financial statements of CORN have been adjusted accordingly. The adjustment in CORN has resulted in a $711,275 increase in the unrealized change in commodity futures contracts in excess of reported CBOT values and have classified these as a Level 2 asset for the period ended June 30, 2021. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. For the quarter ended March 31, 2021, Corn Futures Contracts for the Jul21 CBOT corn futures, Sep21 CBOT corn futures, and Dec21 CBOT corn futures settled in a “limit up” condition. Accordingly, the Trust and CORN classified these as Level 2 assets. The financial statements of CORN were adjusted accordingly. The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $3,371,513. The Sep21 and Dec21 corn futures contracts remained a Level 2 asset for the period ended June 30, 2021 as described above. The Fund records its derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT and the ICE, or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy. Expenses Expenses are recorded using the accrual method of accounting. Net Income (Loss) per Share Net income (loss) per share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units created or redeemed based on the amount of time the units were outstanding during such period. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund. The FASB issued Accounting Standards Update (“ASU”) 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 36 Table of Contents The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. Note 4 – Fair Value Measurements The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Cash Equivalents $ 87,558,228 $ - $ - $ 87,558,228 Commodity Futures Contracts Corn futures contracts - 19,644,395 - 19,644,395 Total $ 87,558,228 $ 19,644,395 $ - $ 107,202,623 Liabilities Level 1 Level 2 Level 3 Balance as of June 30, 2021 Commodity Futures Contracts Corn futures contracts $ 1,110,723 $ - $ - $ 1,110,723 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Cash Equivalents $ 97,970,853 $ - $ - $ 97,970,853 Commodity Futures Contracts Corn futures contracts 20,154,606 - - 20,154,606 Total $ 118,125,459 $ - $ - $ 118,125,459 For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the: Sep21 and Dec21 CBOT corn futures contracts were reflected as a Level 2 investment for the period ended June 30, 2021 due to a “limit up” condition; the July21 CBOT corn futures, Sep21 CBOT corn futures, and Dec21 CBOT corn futures, were reflected as a Level 2 investment for the period ended March 31, 2021 due to a “limit up” condition. The July21 corn futures transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset for the quarter ended June 30, 2021. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. 37 Table of Contents Note 5 – Derivative Instruments and Hedging Activities In the normal course of business, the Fund utilizes derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Fund’s derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts. Futures Contracts The Fund is subject to commodity price risk in the normal course of pursuing its investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. The purchase and sale of futures contracts requires margin deposits with a FCM. Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by the Fund. Futures contracts may reduce the Fund’s exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to the Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited. The following table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020. Offsetting of Financial Assets and Derivative Assets as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Corn futures contracts $ 19,644,395 $ - $ 19,644,395 $ 1,110,723 $ - $ 18,533,672 38 Table of Contents Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Liabilities Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due from Broker Net Amount Commodity Price Corn futures contracts $ 1,110,723 $ - $ 1,110,723 $ 1,110,723 $ - $ - Offsetting of Financial Assets and Derivative Assets as of December 31, 2020 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Corn futures contracts $ 20,154,606 $ - $ 20,154,606 $ - $ 12,973,828 $ 7,180,778 The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk: Three months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ 36,449,652 $ ( 2,942,665 ) Three months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ ( 5,200,091 ) $ 4,223,848 Six months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ 55,246,132 $ ( 1,620,934 ) Six months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Corn futures contracts $ ( 6,779,194 ) $ ( 2,792,631 ) Volume of Derivative Activities The average notional market value categorized by primary underlying risk for the futures contracts held was $ 185.5 million and $ 173.7 million, respectively, for the three and six months ended June 30, 2021, and $ 68.4 million and $ 66.9 million for the three and six months ended June 30, 2020, respectively. 39 Table of Contents Note 6 – Financial Highlights The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020. This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate. Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Per Share Operation Performance Net asset value at beginning of period $ 17.61 $ 12.95 $ 15.54 $ 14.82 Income from investment operations: Investment income 0.01 0.03 0.02 0.10 Net realized and unrealized gain (loss) on commodity futures contracts 3.91 ( 0.44 ) 6.06 ( 2.25 ) Total expenses, net ( 0.09 ) ( 0.14 ) ( 0.18 ) ( 0.27 ) Net increase (decrease) in net asset value 3.83 ( 0.55 ) 5.90 ( 2.42 ) Net asset value at end of period $ 21.44 $ 12.40 $ 21.44 $ 12.40 Total Return 21.75 % ( 4.19 )% 37.97 % ( 16.31 )% Ratios to Average Net Assets (Annualized) Total expenses 2.46 % 5.35 % 2.51 % 4.67 % Total expenses, net 1.75 % 4.62 % 1.99 % 4.05 % Net investment loss ( 1.59 )% ( 3.58 )% ( 1.81 )% ( 2.66 )% The financial highlights per share data are calculated consistent with the methodology used to calculate asset-based fees and expenses. Note 7 – Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor. Note 8 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q. The total net assets of the Fund decreased by $38,633,498 or 22% for the period June 30, 2021 to August 6, 2021. This was driven by a 3% decrease in the NAV per share and a 19% decrease in the shares outstanding. 40 Table of Contents TEUCRIUM SOYBEAN FUND STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash and cash equivalents $ 62,781,086 $ 90,398,391 Interest receivable 4,895 5,478 Other assets 200 37 Equity in trading accounts: Commodity futures contracts 7,084,288 15,124,226 Due from broker 991,595 - Total equity in trading accounts 8,075,883 15,124,226 Total assets 70,862,064 105,528,132 Liabilities Management fee payable to Sponsor 66,836 75,651 Other liabilities 17,422 18,602 Payable for purchases of commercial paper - 4,997,451 Equity in trading accounts: Due to broker - 11,257,566 Total liabilities 84,258 16,349,270 Net assets $ 70,777,806 $ 89,178,862 Shares outstanding 2,975,004 4,575,004 Shares authorized 16,200,000 17,100,000 Net asset value per share $ 23.79 $ 19.49 Market value per share $ 23.70 $ 19.47 The accompanying notes are an integral part of these financial statements. 41 Table of Contents TEUCRIUM SOYBEAN FUND SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost: $7,738,941) $ 7,738,941 10.94 % 7,738,941 Goldman Sachs Financial Square Government Fund - Institutional Class (cost: $1,052) 1,052 0.00 1,052 Total money market funds (cost: $7,739,993) $ 7,739,993 10.94 % Principal Amount Commercial Paper FMC Corporation 0.200% (cost: $1,999,689 due 07/12/2021) $ 1,999,878 2.83 % 2,000,000 General Motors Financial Company, Inc. 0.230% (cost: $4,997,222 due 07/08/2021) 4,999,777 7.06 5,000,000 General Motors Financial Company, Inc. 0.170% (cost: $2,498,949 due 09/13/2021) 2,499,126 3.53 2,500,000 Harley-Davidson Financial Services, Inc. 0.170% (cost: $2,498,938 due 08/03/2021) 2,499,610 3.53 2,500,000 Humana Inc. 0.187% (cost: $7,496,726 due 07/21/2021) 7,499,221 10.60 7,500,000 Humana Inc. 0.160% (cost: $4,998,044 due 07/27/2021) 4,999,422 7.06 5,000,000 Jabil Inc. 0.210% (cost: $2,499,388 due 07/16/2021) 2,499,781 3.53 2,500,000 Total commercial paper (cost: $26,988,956) $ 26,996,815 38.14 % Total cash equivalents $ 34,736,808 49.08 % Notional Amount (Long Exposure) Commodity futures contracts United States soybean futures contracts CBOT soybean futures NOV21 (359 contracts) $ 4,711,635 6.66 % $ 25,112,050 CBOT soybean futures JAN22 (307 contacts) 78,443 0.11 21,486,163 CBOT soybean futures NOV22 (381 contacts) 2,294,210 3.24 24,193,500 Total commodity futures contracts $ 7,084,288 10.01 % $ 70,791,713 The accompanying notes are an integral part of these financial statements. 42 Table of Contents TEUCRIUM SOYBEAN FUND SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X 0.04% (cost $8,227,242) $ 8,227,242 9.23 % 8,227,242 Blackrock Liquidity FedFund - Institutional Class 0.005% (cost $5,014,767) 5,014,767 5.62 5,014,767 Total money market funds (cost: $13,242,009) $ 13,242,009 14.85 % Principal Amount Commercial Paper Energy Transfer Operating, L.P. 0.421% (cost: $2,498,862 due 01/29/2021) $ 2,499,183 2.80 % 2,500,000 Energy Transfer Operating, L.P. 0.501% (cost: $2,498,924 due 02/05/2021) 2,498,924 2.80 2,500,000 General Motors Financial Company, Inc. 0.400% (cost: $2,497,945 due 01/04/2021) 2,499,917 2.81 2,500,000 Harley-Davidson Financial Services, Inc. 0.310% (cost: $2,498,407 due 01/05/2021) 2,499,914 2.81 2,500,000 Harley-Davidson Financial Services, Inc. 0.250% (cost: $4,996,875 due 01/11/2021) 4,999,653 5.61 5,000,000 Harley-Davidson Financial Services, Inc. 0.270% (cost: $1,999,025 due 01/20/2021) 1,999,715 2.24 2,000,000 Hyundai Capital America, Inc. 0.150% (cost: $2,499,198 due 02/01/2021) 2,499,677 2.80 2,500,000 Hyundai Capital America, Inc. 0.170% (cost: $2,499,245 due 02/03/2021) 2,499,611 2.80 2,500,000 Jabil Inc. 0.430% (cost: $2,498,627 due 01/29/2021) 2,499,164 2.80 2,500,000 Jabil Inc. 0.401% (cost: $2,498,528 due 02/26/2021) 2,498,528 2.80 2,500,000 Marathon Petroleum Corporation 0.350% (cost: $2,498,688 due 02/01/2021) 2,499,246 2.80 2,500,000 Marathon Petroleum Corporation 0.381% (cost: $2,498,074 due 02/26/2021) 2,498,522 2.80 2,500,000 Viatris Inc. 0.372% (cost: $2,498,529 due 02/26/2021) 2,498,555 2.80 2,500,000 Viatris Inc. 0.451% (cost: $2,497,219 due 03/22/2021) 2,497,500 2.80 2,500,000 Walgreens Boots Alliance, Inc. 0.246% (cost: $7,496,571 due 03/05/2021) 7,496,776 8.41 7,500,000 Total commercial paper (cost: $44,474,717) $ 44,484,885 49.88 % Total cash equivalents $ 57,726,894 64.73 % Notional Amount (Long Exposure) Commodity futures contracts United States soybean futures contracts CBOT soybean futures MAR21 (479 contracts) $ 7,011,407 7.86 % $ 31,398,450 CBOT soybean futures MAY21 (411 contracts) 3,404,313 3.82 26,853,712 CBOT soybean futures NOV21 (557 contracts) 4,708,506 5.28 30,962,238 Total commodity futures contracts $ 15,124,226 16.96 % $ 89,214,400 The accompanying notes are an integral part of these financial statements. 43 Table of Contents TEUCRIUM SOYBEAN FUND STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of commodity futures contracts: Realized gain (loss) on commodity futures contracts $ 7,663,258 $ ( 861,903 ) $ 25,817,715 $ ( 1,718,118 ) Net change in unrealized appreciation or (depreciation) on commodity futures contracts 684,574 1,484,213 ( 8,039,938 ) ( 809,552 ) Interest income 37,192 55,191 84,629 160,418 Total income (loss) 8,385,024 677,501 17,862,406 ( 2,367,252 ) Expenses Management fees 219,143 72,291 461,252 135,511 Professional fees 97,258 101,284 206,761 159,849 Distribution and marketing fees 234,930 135,606 459,947 227,765 Custodian fees and expenses 20,965 19,718 52,440 30,465 Business permits and licenses fees 5,838 8,675 20,364 12,468 General and administrative expenses 42,936 25,073 60,049 30,763 Total expenses 621,070 362,647 1,260,813 596,821 Expenses waived by the Sponsor ( 243,419 ) ( 47,076 ) ( 305,996 ) ( 77,047 ) Total expenses, net 377,651 315,571 954,817 519,774 Net income (loss) $ 8,007,373 $ 361,930 $ 16,907,589 $ ( 2,887,026 ) Net income (loss) per share $ 2.21 $ ( 0.02 ) $ 4.30 $ ( 1.87 ) Net income (loss) per weighted average share $ 2.08 $ 0.17 $ 3.93 $ ( 1.51 ) Weighted average shares outstanding 3,851,652 2,115,663 4,301,109 1,917,312 The accompanying notes are an integral part of these financial statements. 44 Table of Contents TEUCRIUM SOYBEAN FUND STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 16,907,589 $ ( 2,887,026 ) Capital transactions Issuance of Shares 18,716,075 34,981,703 Redemption of Shares ( 54,024,720 ) ( 3,943,558 ) Total capital transactions ( 35,308,645 ) 31,038,145 Net change in net assets ( 18,401,056 ) 28,151,119 Net assets, beginning of period $ 89,178,862 $ 28,135,131 Net assets, end of period $ 70,777,806 $ 56,286,250 Net asset value per share at beginning of period $ 19.49 $ 15.85 Net asset value per share at end of period $ 23.79 $ 13.98 Creation of Shares 900,000 2,525,000 Redemption of Shares 2,500,000 275,000 The accompanying notes are an integral part of these financial statements. 45 Table of Contents TEUCRIUM SOYBEAN FUND STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 16,907,589 $ ( 2,887,026 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net change in unrealized depreciation on commodity futures contracts 8,039,938 809,552 Changes in operating assets and liabilities: Due from broker ( 991,595 ) ( 2,707,585 ) Interest receivable 583 ( 1,209 ) Other assets ( 163 ) ( 14,060 ) Due to broker ( 11,257,566 ) ( 643,808 ) Management fee payable to Sponsor ( 8,815 ) 7,215 Payable for purchases of commercial paper ( 4,997,451 ) - Other liabilities ( 1,180 ) ( 5,058 ) Net cash provided by (used in) operating activities 7,691,340 ( 5,441,979 ) Cash flows from financing activities: Proceeds from sale of Shares 18,716,075 34,981,703 Redemption of Shares ( 54,024,720 ) ( 3,943,558 ) Net cash (used in) provided by financing activities ( 35,308,645 ) 31,038,145 Net change in cash and cash equivalents ( 27,617,305 ) 25,596,166 Cash and cash equivalents beginning of period 90,398,391 27,874,691 Cash and cash equivalents end of period $ 62,781,086 $ 53,470,857 The accompanying notes are an integral part of these financial statements. 46 Table of Contents NOTES TO FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Soybean Fund (referred to herein as “SOYB” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “SOYB,” to the public at per Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for soybean interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share. The investment objective of SOYB is to have the daily changes in the NAV of the Fund’s Shares reflect the daily changes in the soybean market for future delivery as measured by the Benchmark. The Benchmark is a weighted average of the closing settlement prices for three futures contracts for soybeans (“Soybean Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”): SOYB Benchmark CBOT Soybean Futures Contract Weighting Second to expire (excluding August & September) 35 % Third to expire (excluding August & September) 30 % Expiring in the November following the expiration of the third to expire contract 35 % The Fund commenced investment operations on September 19, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). On June 13, 2011, the initial Form S-1 for SOYB was declared effective by the SEC. On September 16, 2011, two Creation Baskets were issued representing 100,000 shares and $ 2,500,000 . On September 19, 2011, SOYB started trading on the NYSE Arca. The current registration statement for SOYB was declared effective by the SEC on August 24, 2020. This registration statement for SOYB registered an additional 15,000,000 shares. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. 47 Table of Contents Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $47,000 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the statements of operations. A summary of these expenses is included below. The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FINRA. E D & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. A summary of these expenses is included below. The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the statements of operations. A summary of these expenses is included below. 48 Table of Contents The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 20,965 $ 19,718 $ 52,440 $ 30,465 Amount of Custody Services Waived $ 7,817 $ - $ 7,817 $ - Amount Recognized for Distribution Services $ 12,074 $ 6,478 $ 26,687 $ 13,361 Amount of Distribution Services Waived $ 7,879 $ - $ 13,896 $ - Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 23,607 $ 3,600 $ 47,959 $ 7,101 Amount of Thales Waived $ 5,299 $ - $ 5,299 $ - Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. Revenue Recognition Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. The Fund seeks to earn interest on its assets denominated in U.S. dollars on deposits with the Futures Commission Merchant. In addition, the Fund seeks to earn interest on funds held at the custodian and other financial institutions at prevailing market rates for such investments. The Sponsor invests a portion of cash in commercial paper, which is deemed a cash equivalent based on the rating and duration of contracts as described in the notes to the financial statements and reflected in cash and cash equivalents on the statements of assets and liabilities and on the statements of cash flows. Accretion on these investments is recognized using the effective interest method in U.S. dollars and included in interest income on the statements of operations. The Sponsor invests a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts. Accretion on these investments is recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. Brokerage Commissions Beginning on August 21, 2019, the Sponsor began recognizing the expense for brokerage commissions for futures contract trades on a per-trade basis. Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis. The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021. SOYB Three Months Ended June 30, 2021 $ 6,543 Three Months Ended June 30, 2020 $ 5,691 Six Months Ended June 30, 2021 $ 21,735 Six Months Ended June 30, 2020 $ 10,145 49 Table of Contents Income Taxes The Trust is organized and will be operated as a Delaware statutory trust. For federal income tax purposes, each Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. The Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. The Fund does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. The Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. For all tax years 2018 to 2020, the Fund remains subject to income tax examinations by major taxing authorities. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof. The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020. The Fund may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creations and Redemptions Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. (EST) on the day the order to create the basket is received in good order. Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is received in good order. The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the Fund’s statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption are reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed. As outlined in the most recent Form S-1 filing, 50,000 shares represents two Redemption Baskets for the Fund and a minimum level of shares. If the Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. 50 Table of Contents Allocation of Shareholder Income and Losses Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month. Cash and Cash Equivalents Cash equivalents are highly liquid investments with maturity dates of 90 days or less when acquired. The Trust reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short term maturities. Each Fund that is a series of the Trust has the balance of its cash equivalents on deposit with financial institutions. The Fund holds a balance in money market funds that is included in cash and cash equivalents on the statements of assets and liabilities. The Sponsor invests a portion of the available cash for the Funds in alternative demand deposit savings accounts, which is classified as cash and not as cash equivalents. Assets deposited with the bank may, at times, exceed federally insured limits. The Sponsor invests a portion of the available cash for the Funds in investment grade commercial paper with durations of 90 days or less, which is classified as a cash equivalent and is not FDIC insured. The Sponsor may invest a portion of the cash held by the FCM in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured. June 30, 2021 December 31, 2020 Money Market Funds $ 7,739,993 $ 13,242,009 Demand Deposit Savings Accounts 28,044,278 32,671,497 Commercial Paper 26,996,815 44,484,885 Total cash and cash equivalents as presented on the Statement of Assets and Liabilities $ 62,781,086 $ 90,398,391 Due from/to Broker The amount recorded by the Fund for the amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing broker related to open transactions, payables for commodities futures accounts liquidating to an equity balance on the clearing broker’s records and amounts of brokerage commissions paid and recognized as unrealized losses. Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure. When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest. Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls. Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions. 51 Table of Contents Calculation of Net Asset Value The Fund’s NAV is calculated by: • Taking the current market value of its total assets and • Subtracting any liabilities. The administrator, Global Fund Services, calculates the NAV of the Fund once each trading day. It calculates the NAV as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The NAV for a particular trading day is released after 4:15 p.m. (EST). In determining the value of Soybean Futures Contracts, the administrator uses the CBOT closing price. The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The value of over the counter soybean interests is determined based on the value of the commodity or futures contract underlying such soybean interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such soybean interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Short term Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open soybean interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund. Sponsor Fee, Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor has elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor performs itself. In addition, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00 % per annum. The Fund pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Fund. Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 179,176 $ 94,179 $ 339,297 $ 186,829 Waived Related Party Transactions $ 113,219 $ 22,076 $ 137,564 $ 32,047 The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period: SOYB Three months ended June 30, 2021 $ 243,419 Three months ended June 30, 2020 $ 47,076 Six months ended June 30, 2021 $ 305,996 Six months ended June 30, 2020 $ 77,047 52 Table of Contents Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair Value - Definition and Hierarchy In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these financial instruments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This condition could cause a financial instrument to be reclassified to a lower level within the fair value hierarchy. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports. 53 Table of Contents On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported. For the quarter ended March 31, 2021, Soybean Futures Contracts for Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures settled in a “limit up” condition. Accordingly, the Trust and SOYB classified these as Level 2 assets. The adjustment in SOYB resulted in a $279,750 increase in the unrealized change in commodity futures contracts in excess of reported CBOT values. These contracts transferred back to a Level 1 asset for the quarter ended June 30, 2021. The Fund records its derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT and the ICE, or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy. Expenses Expenses are recorded using the accrual method of accounting. Net Income (Loss) per Share Net income (loss) per Share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of Shares outstanding was computed for purposes of disclosing net income (loss) per weighted average Share. The weighted average Shares are equal to the number of Shares outstanding at the end of the period, adjusted proportionately for Shares created or redeemed based on the amount of time the Shares were outstanding during such period. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund. The FASB issued Accounting Standards Update (“ASU”) 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 54 Table of Contents The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. Note 4 – Fair Value Measurements The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Cash Equivalents $ 34,736,808 $ - $ - $ 34,736,808 Commodity Futures Contracts Soybean futures contracts 7,084,288 - - 7,084,288 Total $ 41,821,096 $ - $ - $ 41,821,096 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Cash Equivalents $ 57,726,894 $ - $ - $ 57,726,894 Commodity Futures Contracts Soybean futures contracts 15,124,226 - - 15,124,226 Total $ 72,851,120 $ - $ - $ 72,851,120 For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, were reflected as a Level 2 asset for the period ended March 31, 2021 due to a “limit up” condition. These Soybean contracts transferred back to a Level 1 asset for the period ended June 30, 2021. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. Note 5 – Derivative Instruments and Hedging Activities In the normal course of business, the Fund utilizes derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Fund’s derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts. Futures Contracts The Fund is subject to commodity price risk in the normal course of pursuing its investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. 55 Table of Contents The purchase and sale of futures contracts requires margin deposits with a FCM. Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by the Fund. Futures contracts may reduce the Fund’s exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to the Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited. The following table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020. Offsetting of Financial Assets and Derivative Assets as of June 30, 2021 Assets (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Soybean futures contracts $ 7,084,288 $ - $ 7,084,288 $ - $ - $ 7,084,288 Offsetting of Financial Assets and Derivative Assets as of December 31, 2020 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Soybean futures contracts $ 15,124,226 $ - $ 15,124,226 $ - $ 11,257,566 $ 3,866,660 The following is a summary of realized and unrealized gains and losses of the derivative instruments utilized by the Fund: Three months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Soybean futures contracts $ 7,663,258 $ 684,574 Three months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Soybean futures contracts $ ( 861,903 ) $ 1,484,213 56 Table of Contents Six months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Soybean futures contracts $ 25,817,715 $ ( 8,039,938 ) 57 Table of Contents Six months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Soybean futures contracts $ ( 1,718,118 ) $ ( 809,552 ) Volume of Derivative Activities The average notional market value categorized by primary underlying risk for all futures contracts held was $ 83.6 million and $ 90.3 million, respectively for the three and six months ended June 30, 2021 and, and $ 37.9 million and $ 31.0 million for the three and six months ended June 30, 2020, respectively. Note 6 – Financial Highlights The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020. This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate. FINANCIAL HIGHLIGHTS - Unaudited Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Per Share Operation Performance Net asset value at beginning of period $ 21.58 $ 14.00 $ 19.49 $ 15.85 Income from investment operations: Investment income 0.01 0.03 0.02 0.08 Net realized and unrealized gain (loss) on commodity futures contracts 2.30 0.10 4.50 ( 1.68 ) Total expenses, net ( 0.10 ) ( 0.15 ) ( 0.22 ) ( 0.27 ) Net increase (decrease) in net asset value 2.21 ( 0.02 ) 4.30 ( 1.87 ) Net asset value at end of period $ 23.79 $ 13.98 $ 23.79 $ 13.98 Total Return 10.24 % ( 0.12 )% 22.05 % ( 11.78 )% Ratios to Average Net Assets (Annualized) Total expenses 2.83 % 5.02 % 2.73 % 4.40 % Total expenses, net 1.72 % 4.36 % 2.07 % 3.83 % Net investment loss ( 1.55 )% ( 3.60 )% ( 1.89 )% ( 2.65 )% The financial highlights per share data are calculated consistent with the methodology used to calculate asset-based fees and expenses. Note 7 – Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor. Note 8 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q. 58 Table of Contents TEUCRIUM SUGAR FUND STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash and cash equivalents $ 20,531,334 $ 11,849,332 Interest receivable 1,108 904 Equity in trading accounts: Commodity futures contracts 1,964,820 1,407,703 Total assets 22,497,262 13,257,939 Liabilities Management fee payable to Sponsor 17,678 10,292 Other liabilities 9,621 5,895 Equity in trading accounts: Due to broker 420,810 475,661 Total liabilities 448,109 491,848 Net assets $ 22,049,153 $ 12,766,091 Shares outstanding 2,600,004 1,900,004 Shares authorized 22,275,000 23,150,000 Net asset value per share $ 8.48 $ 6.72 Market value per share $ 8.49 $ 6.75 The accompanying notes are an integral part of these financial statements. 59 Table of Contents TEUCRIUM SUGAR FUND SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost $6,021,297) $ 6,021,297 27.31 % 6,021,297 Goldman Sachs Financial Square Government Fund (cost $1,800) 1,800 0.01 1,800 Total money market funds (cost: $6,023,097) $ 6,023,097 27.32 % Principal Amount Commercial Paper Jabil Inc. 0.210% (cost: $2,499,388 due 07/16/2021) $ 2,499,781 11.34 % 2,500,000 Brookfield Infrastructure Holdings Inc. 0.213% (cost: $4,999,200 due 07/21/2021) 4,999,408 22.67 5,000,000 Total commercial paper (cost: $7,498,588) $ 7,499,189 34.01 % Total cash equivalents $ 13,522,286 61.33 % Notional Amount (Long Exposure) Commodity futures contracts United States sugar futures contracts ICE sugar futures MAR22 (382 contracts) $ 1,444,358 6.55 % $ 7,735,347 ICE sugar futures MAY22 (344 contracts) 84,905 0.38 6,630,669 ICE sugar futures MAR23 (423 contracts) 435,557 1.98 7,698,600 Total commodity futures contracts $ 1,964,820 8.91 % $ 22,064,616 The accompanying notes are an integral part of these financial statements. 60 Table of Contents TEUCRIUM SUGAR FUND SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost $4,134,293) $ 4,134,293 32.38 % 4,134,293 Blackrock Liquidity FedFund - Institutional Class (cost: $18,871) 18,871 0.15 18,871 Total money market funds (cost: $4,153,164) 4,153,164 32.53 Principal Amount Commercial Paper Energy Transfer Operating, L.P. 0.501% (cost: $2,498,889 due 1/29/2021) 2,499,028 19.58 2,500,000 Total cash equivalents $ 6,652,192 52.11 % Notional Amount (Long Exposure) Commodity futures contracts United States sugar futures contracts ICE sugar futures MAY21 (272 contracts) $ 550,868 4.32 % $ 4,472,115 ICE sugar futures JUL21 (241 contracts) 345,612 2.71 3,830,165 ICE sugar futures MAR22 (279 contracts) 511,223 4.00 4,459,090 Total commodity futures contracts $ 1,407,703 11.03 % $ 12,761,370 The accompanying notes are an integral part of these financial statements. 61 Table of Contents TEUCRIUM SUGAR FUND STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of commodity futures contracts: Realized gain (loss) on commodity futures contracts $ 2,012,151 $ ( 1,239,596 ) $ 3,265,631 $ ( 947,539 ) Net change in unrealized appreciation or (depreciation) on commodity futures contracts 1,163,959 1,689,036 557,117 ( 466,909 ) Interest income 5,701 15,136 12,089 58,108 Total income (loss) 3,181,811 464,576 3,834,837 ( 1,356,340 ) Expenses Management fees 46,597 18,627 82,612 45,129 Professional fees 14,304 65,432 32,312 88,592 Distribution and marketing fees 29,264 45,172 62,339 90,505 Custodian fees and expenses 4,610 5,428 8,266 12,399 Business permits and licenses fees 2,851 10,074 21,196 28,664 General and administrative expenses 12,394 10,949 15,996 14,125 Other expenses - - - 15 Total expenses 110,020 155,682 222,721 279,429 Expenses waived by the Sponsor ( 31,549 ) ( 76,539 ) ( 58,039 ) ( 113,892 ) Total expenses, net 78,471 79,143 164,682 165,537 Net income (loss) $ 3,103,340 $ 385,433 $ 3,670,155 $ ( 1,521,877 ) Net income (loss) per share $ 1.45 $ 0.23 $ 1.76 $ ( 1.32 ) Net income (loss) per weighted average share $ 1.33 $ 0.28 $ 1.68 $ ( 1.05 ) Weighted average shares outstanding 2,329,674 1,360,718 2,182,739 1,442,999 The accompanying notes are an integral part of these financial statements. 62 Table of Contents TEUCRIUM SUGAR FUND STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 3,670,155 $ ( 1,521,877 ) Capital transactions Issuance of Shares 6,856,615 2,722,055 Redemption of Shares ( 1,243,708 ) ( 4,639,993 ) Total capital transactions 5,612,907 ( 1,917,938 ) Net change in net assets 9,283,062 ( 3,439,815 ) Net assets, beginning of period $ 12,766,091 $ 12,313,180 Net assets, end of period $ 22,049,153 $ 8,873,365 Net asset value per share at beginning of period $ 6.72 $ 7.04 Net asset value per share at end of period $ 8.48 $ 5.72 Creation of Shares 875,000 500,000 Redemption of Shares 175,000 700,000 The accompanying notes are an integral part of these financial statements. 63 Table of Contents TEUCRIUM SUGAR FUND STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 3,670,155 $ ( 1,521,877 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net change in unrealized (appreciation) depreciation on commodity futures contracts ( 557,117 ) 466,909 Changes in operating assets and liabilities: Due from broker - ( 858,685 ) Interest receivable ( 204 ) ( 309 ) Other assets - ( 701 ) Due to broker ( 54,851 ) ( 237,908 ) Management fee payable to Sponsor 7,386 ( 3,363 ) Other liabilities 3,726 4,044 Net cash provided by (used in) operating activities 3,069,095 ( 2,151,890 ) Cash flows from financing activities: Proceeds from sale of Shares 6,856,615 2,722,055 Redemption of Shares ( 1,243,708 ) ( 4,639,993 ) Net cash provided by (used in) financing activities 5,612,907 ( 1,917,938 ) Net change in cash and cash equivalents 8,682,002 ( 4,069,828 ) Cash and cash equivalents beginning of period 11,849,332 12,215,795 Cash and cash equivalents end of period $ 20,531,334 $ 8,145,967 The accompanying notes are an integral part of these financial statements. 64 Table of Contents NOTES TO FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Sugar Fund (referred to herein as “CANE” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “CANE,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for sugar interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share. The investment objective of CANE is to have the daily changes in the NAV of the Fund’s Shares reflect the daily changes in the sugar market for future delivery as measured by the Benchmark. The Benchmark is a weighted average of the closing settlement prices for three futures contracts for No. 11 sugar (“Sugar Futures Contracts”) that are traded on the ICE Futures US (“ICE”): CANE Benchmark ICE Sugar Futures Contract Weighting Second to expire 35 % Third to expire 30 % Expiring in the March following the expiration of the third to expire contract 35 % The Fund commenced investment operations on September 19, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). On June 13, 2011, the initial Form S-1 for CANE was declared effective by the SEC. On September 16, 2011, two Creation Baskets were issued representing 100,000 shares and $ 2,500,000 . On September 19, 2011, CANE started trading on the NYSE Arca. The current registration statement for CANE was declared effective by the SEC on October 2, 2020. This registration statement for CANE registered an additional 15,000,000 shares. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. 65 Table of Contents For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $47,000 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the statements of operations. A summary of these expenses is included below. The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FINRA. E D & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. A summary of these expenses is included below. The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the statements of operations. A summary of these expenses is included below. The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: 66 Table of Contents Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 4,610 $ 5,428 $ 8,266 $ 12,399 Amount of Custody Services Waived $ 2,280 $ 2,075 $ 2,335 $ 4,276 Amount Recognized for Distribution Services $ 1,755 $ 2,499 $ 3,608 $ 5,526 Amount of Distribution Services Waived $ 1,216 $ 798 $ 1,216 $ 2,011 Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 3,266 $ 1,513 $ 6,308 $ 3,107 Amount of Thales Waived $ 868 $ 1,513 $ 868 $ 1,513 Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. Revenue Recognition Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents with financial institutions are recognized on the accrual basis. The Fund seeks to earn interest on funds held at the custodian and other financial institutions at prevailing market rates for such investments. The Sponsor invests a portion of cash in commercial paper, which is deemed a cash equivalent based on the rating and duration of contracts as described in the notes to the financial statements and reflected in cash and cash equivalents on the statements of assets and liabilities and on the statements of cash flows. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the statements of operations. The Sponsor invests a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. Brokerage Commissions Beginning on August 21, 2019, the Sponsor began recognizing the expense for brokerage commissions for futures contract trades on a per-trade basis. Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis. The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021. CANE Three Months Ended June 30, 2021 $ 8,957 Three Months Ended June 30, 2020 $ 5,168 Six Months Ended June 30, 2021 $ 12,434 Six Months Ended June 30, 2020 $ 8,243 67 Table of Contents Income Taxes For federal income tax purposes, the Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. The Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. The Fund does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. Creations and Redemptions Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. (EST) on the day the order to create the basket is received in good order. Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is received in good order. The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the Fund’s statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption are reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed. 68 Table of Contents As outlined in the most recent Form S-1 filing, 50,000 shares represents two Redemption Baskets for the Fund and a minimum level of shares. If the Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. Allocation of Shareholder Income and Losses Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month. Cash and Cash Equivalents Cash equivalents are highly liquid investments with maturity dates of 90 days or less when acquired. The Trust reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short term maturities. Each Fund that is a series of the Trust has the balance of its cash equivalents on deposit with financial institutions. The Fund holds a balance in money market funds that is included in cash and cash equivalents on the statements of assets and liabilities. The Sponsor invests a portion of the available cash for the Funds in alternative demand deposit savings accounts, which is classified as cash and not as cash equivalents. Assets deposited with the bank may, at times, exceed federally insured limits. The Sponsor invests a portion of the available cash for the Funds in investment grade commercial paper with durations of 90 days or less, which is classified as a cash equivalent and is not FDIC insured. The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured. June 30, 2021 December 31, 2020 Money Market Funds $ 6,023,097 $ 4,153,164 Demand Deposit Savings Accounts 7,009,048 5,197,140 Commercial Paper 7,499,189 2,499,028 Total cash and cash equivalents as presented on the Statement of Assets and Liabilities $ 20,531,334 $ 11,849,332 Due from/to Broker The amount recorded by the Fund for the amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing broker related to open transactions, payables for commodities futures accounts liquidating to an equity balance on the clearing broker’s records, and amounts of brokerage commissions paid and recognized as unrealized losses. Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure. When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest. 69 Table of Contents Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls. Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions. Calculation of Net Asset Value The Fund’s NAV is calculated by: • Taking the current market value of its total assets and • Subtracting any liabilities. The administrator, Global Fund Services, calculates the NAV of the Fund once each trading day. It calculates the NAV as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The NAV for a particular trading day is released after 4:15 p.m. (EST). In determining the value of Sugar Futures Contracts, the administrator uses the ICE closing price. The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The value of over the counter sugar interests is determined based on the value of the commodity or futures contract underlying such sugar interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such sugar interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Short term Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open sugar interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund. Sponsor Fee, Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor has elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor performs itself. In addition, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00 % per annum. The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Fund. Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 27,519 $ 31,713 $ 47,769 $ 72,911 Waived Related Party Transactions $ 10,388 $ 9,834 $ 19,198 $ 19,973 70 Table of Contents The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period: CANE Three months ended June 30, 2021 $ 31,549 Three months ended June 30, 2020 $ 76,539 Six months ended June 30, 2021 $ 58,039 Six months ended June 30, 2020 $ 113,892 Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair Value - Definition and Hierarchy In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these financial instruments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. 71 Table of Contents Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This condition could cause a financial instrument to be reclassified to a lower level within the fair value hierarchy. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports. On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Sugar Futures Contracts traded on the ICE fairly reflected the value of the Sugar Futures Contracts held by the Fund, and no adjustments were necessary. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported. For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy. The Fund records its derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT and the ICE, or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy. Expenses Expenses are recorded using the accrual method of accounting. Net Income (Loss) per Share Net income (loss) per share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units created or redeemed based on the amount of time the units were outstanding during such period. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund. The FASB issued Accounting Standards Update (“ASU”) 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 72 Table of Contents The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. Note 4 – Fair Value Measurements The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Cash Equivalents $ 13,522,286 $ - $ - $ 13,522,286 Commodity Futures Contracts Sugar futures contracts 1,964,820 - - 1,964,820 Total $ 15,487,106 $ - $ - $ 15,487,106 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Cash Equivalents $ 6,652,192 $ - $ - $ 6,652,192 Commodity Futures Contracts Sugar futures contracts 1,407,703 - - 1,407,703 Total $ 8,059,895 $ - $ - $ 8,059,895 For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. Note 5 – Derivative Instruments and Hedging Activities In the normal course of business, the Fund utilizes derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Fund’s derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts. 73 Table of Contents Futures Contracts The Fund is subject to commodity price risk in the normal course of pursuing its investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. The purchase and sale of futures contracts requires margin deposits with a FCM. Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by the Fund. Futures contracts may reduce the Fund’s exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to the Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited. The following table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020. Offsetting of Financial Assets and Derivative Assets as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Sugar futures contracts $ 1,964,820 $ - $ 1,964,820 $ - $ 420,810 $ 1,544,010 Offsetting of Financial Assets and Derivative Assets as of December 31, 2020 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Sugar futures contracts $ 1,407,703 $ - $ 1,407,703 $ - $ 475,661 $ 932,042 The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk: 74 Table of Contents Three months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Sugar futures contracts $ 2,012,151 $ 1,163,959 Three months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Sugar futures contracts $ ( 1,239,596 ) $ 1,689,036 Six months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Sugar futures contracts $ 3,265,631 $ 557,117 Six months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Sugar futures contracts $ ( 947,538 ) $ ( 466,909 ) Volume of Derivative Activities The average notional market value categorized by primary underlying risk for all futures contracts held were $ 19.9 million and $ 17.4 million, respectively, for the three and six months ended June 30, 2021, and $ 7.8 million and $ 8.7 million, respectively, for the three and six months ended June 30, 2020. Note 6 – Financial Highlights The following table presents per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020. This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate. Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Per Share Operation Performance Net asset value at beginning of period $ 7.03 $ 5.49 $ 6.72 $ 7.04 Income (loss) from investment operations: Investment income - 0.01 0.01 0.04 Net realized and unrealized gain (loss) on commodity futures contracts 1.48 0.28 1.83 ( 1.25 ) Total expenses, net ( 0.03 ) ( 0.06 ) ( 0.08 ) ( 0.11 ) Net increase (decrease) in net asset value 1.45 0.23 1.76 ( 1.32 ) Net asset value at end of period $ 8.48 $ 5.72 $ 8.48 $ 5.72 Total Return 20.67 % 4.19 % 26.22 % ( 18.64 )% Ratios to Average Net Assets (Annualized) Total expenses 2.36 % 8.36 % 2.70 % 6.19 % Total expenses, net 1.68 % 4.25 % 1.99 % 3.67 % Net investment loss ( 1.56 )% ( 3.44 )% ( 1.84 )% ( 2.38 )% The financial highlights per share data are calculated consistent with the methodology used to calculate asset-based fees and expenses. 75 Table of Contents Note 7 – Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees, were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor. Note 8 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q. 76 Table of Contents TEUCRIUM WHEAT FUND STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash and cash equivalents $ 76,708,882 $ 68,946,725 Interest receivable 4,586 3,257 Capital shares receivable - 307,830 Equity in trading accounts: Commodity futures contracts 4,165,999 5,738,162 Due from broker 5,453,399 - Total equity in trading accounts 9,619,398 5,738,162 Total assets 86,332,866 74,995,974 Liabilities Payable for shares redeemed - 2,462,640 Management fee payable to Sponsor 71,136 60,902 Other liabilities 11,597 24,751 Equity in trading accounts: Commodity futures contracts 232,887 - Due to broker - 2,571,103 Total equity in trading accounts 232,887 2,571,103 Total liabilities 315,620 5,119,396 Net assets $ 86,017,246 $ 69,876,578 Shares outstanding 12,750,004 11,350,004 Shares authorized 34,350,000 37,650,000 Net asset value per share $ 6.75 $ 6.16 Market value per share $ 6.77 $ 6.19 The accompanying notes are an integral part of these financial statements. 77 Table of Contents TEUCRIUM WHEAT FUND SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost: $4,158,145) $ 4,158,145 4.83 % 4,158,145 Goldman Sachs Financial Square Government Fund - Institutional Class (cost: $7,523,801) 7,523,801 8.75 7,523,801 Total money market funds (cost: $11,681,946) $ 11,681,946 13.58 % Principal Amount Commercial Paper Canadian Natural Resources Limited 0.140% (cost: $4,999,495 due 07/26/2021) $ 4,999,514 5.81 % 5,000,000 General Motors Financial Company, Inc. 0.230% (cost: $2,498,642 due 07/06/2021) 2,499,920 2.91 2,500,000 General Motors Financial Company, Inc. 0.230% (cost: $2,498,611 due 07/08/2021) 2,499,888 2.91 2,500,000 Harley-Davidson Financial Services, Inc. 0.170% (cost: $2,498,938 due 08/03/2021) 2,499,610 2.91 2,500,000 Harley-Davidson Financial Services, Inc. 0.170% (cost: $2,498,938 due 08/03/2021) 2,499,610 2.91 2,500,000 Harley-Davidson Financial Services, Inc. 0.160% (cost: $2,499,033 due 08/06/2021) 2,499,600 2.90 2,500,000 Humana Inc. 0.187% (cost: $2,498,909 due 07/21/2021) 2,499,741 2.91 2,500,000 Jabil Inc. 0.210% (cost: $2,499,388 due 07/16/2021) 2,499,782 2.91 2,500,000 Jabil Inc. 0.300% (cost: $2,498,375 due 08/27/2021) 2,498,813 2.90 2,500,000 Viatris Inc. 0.174% (cost: $2,499,746 due 07/20/2021) 2,499,770 2.91 2,500,000 Viatris Inc. 0.200% (cost: $2,498,861 due 09/13/2021) 2,498,972 2.90 2,500,000 Viatris Inc. 0.200% (cost: $2,498,764 due 09/15/2021) 2,498,945 2.90 2,500,000 Total commercial paper (cost: $32,487,700) $ 32,494,165 37.78 % Total cash equivalents $ 44,176,111 51.36 % Notional Amount (Long Exposure) Commodity futures contracts United States wheat futures contracts CBOT wheat futures SEP21 (889 contracts) $ 845,125 0.98 % $ 30,203,775 CBOT wheat futures DEC21 (753 contracts) 3,320,874 3.86 25,790,250 Total commodity futures contracts $ 4,165,999 4.84 % $ 55,994,025 Percentage of Notional Amount Description: Liabilities Fair Value Net Assets (Long Exposure) Commodity futures contracts United States wheat futures contracts CBOT wheat futures DEC22 (861 contracts) $ 232,887 0.27 % $ 30,027,375 The accompanying notes are an integral part of these financial statements. 78 Table of Contents TEUCRIUM WHEAT FUND SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost $16,214,175) $ 16,214,175 23.20 % 16,214,175 Blackrock Liquidity FedFund - Institutional Class (cost $13,227) 13,227 0.02 13,227 Total money market funds (cost: $16,227,402) $ 16,227,402 23.22 % Principal Amount Commercial Paper Energy Transfer Operating, L.P. 0.421% (cost: $2,498,863 due 01/29/2021) $ 2,499,183 3.58 % 2,500,000 Energy Transfer Operating, L.P. 0.501% (cost: $2,498,889 due 01/29/2021) 2,499,028 3.57 2,500,000 General Motors Financial Company, Inc. 0.400% (cost: $2,497,945 due 01/04/2021) 2,499,917 3.58 2,500,000 General Motors Financial Company, Inc. 0.411% (cost: $2,498,178 due 01/08/2021) 2,499,801 3.58 2,500,000 Harley-Davidson Financial Services, Inc. 0.250% (cost: $2,498,437 due 01/11/2021) 2,499,826 3.58 2,500,000 Hyundai Capital America, Inc. 0.170% (cost: $2,499,245 due 02/03/2021) 2,499,611 3.58 2,500,000 Jabil Inc. 0.430% (cost: $2,498,627 due 01/29/2021) 2,499,164 3.58 2,500,000 Jabil Inc. 0.501% (cost: $2,497,153 due 02/24/2021) 2,498,125 3.57 2,500,000 Marathon Petroleum Corporation 0.350% (cost: $4,997,375 due 02/01/2021) 4,998,493 7.15 5,000,000 Marathon Petroleum Corporation 0.381% (cost: $4,996,147 due 02/26/2021) 4,997,044 7.15 5,000,000 WGL Holdings, Inc. 0.200% (cost: $2,499,417 due 01/27/2021) 2,499,639 3.58 2,500,000 Walgreens Boots Alliance, Inc. 0.246% (cost: $2,498,857 due 03/05/2021) 2,498,926 3.58 2,500,000 Total commercial paper (cost: $34,979,133) $ 34,988,757 50.08 % Total cash equivalents $ 51,216,159 73.30 % Notional Amount (Long Exposure) Commodity futures contracts United States wheat futures contracts CBOT wheat futures MAY21 (765 contracts) $ 2,297,658 3.29 % $ 24,460,875 CBOT wheat futures JUL21 (668 contracts) 687,506 0.98 20,983,550 CBOT wheat futures DEC21 (767 contracts) 2,752,998 3.94 24,419,363 Total commodity futures contracts $ 5,738,162 8.21 % $ 69,863,788 The accompanying notes are an integral part of these financial statements. 79 Table of Contents TEUCRIUM WHEAT FUND STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of commodity futures contracts: Realized gain (loss) on commodity futures contracts $ 7,160,668 $ ( 285,793 ) $ 10,080,116 $ 167,515 Net change in unrealized appreciation (depreciation) on commodity futures contracts 3,250,623 ( 5,884,890 ) ( 1,805,050 ) ( 6,884,216 ) Interest income 34,335 124,115 69,517 326,980 Total income (loss) 10,445,626 ( 6,046,568 ) 8,344,583 ( 6,389,721 ) Expenses Management fees 217,020 117,716 411,329 241,560 Professional fees 53,676 86,409 130,073 163,193 Distribution and marketing fees 157,640 148,603 298,681 332,181 Custodian fees and expenses 15,192 25,956 34,622 48,248 Business permits and licenses fees 2,170 15,760 21,601 20,714 General and administrative expenses 27,963 31,326 37,642 47,426 Total expenses 473,661 425,770 933,948 853,322 Expenses waived by the Sponsor ( 95,936 ) - ( 124,651 ) - Total expenses, net 377,725 425,770 809,297 853,322 Net income (loss) $ 10,067,901 $ ( 6,472,338 ) $ 7,535,286 $ ( 7,243,043 ) Net income (loss) per share $ 0.76 $ ( 0.73 ) $ 0.59 $ ( 0.80 ) Net income (loss) per weighted average share $ 0.77 $ ( 0.73 ) $ 0.58 $ ( 0.82 ) Weighted average shares outstanding 13,111,817 8,886,542 12,898,761 8,832,009 The accompanying notes are an integral part of these financial statements. 80 Table of Contents TEUCRIUM WHEAT FUND STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 7,535,286 $ ( 7,243,043 ) Capital transactions Issuance of Shares 20,841,092 5,487,503 Redemption of Shares ( 12,235,710 ) ( 4,534,013 ) Total capital transactions 8,605,382 953,490 Net change in net assets 16,140,668 ( 6,289,553 ) Net assets, beginning of period $ 69,876,578 $ 52,236,196 Net assets, end of period $ 86,017,246 $ 45,946,643 Net asset value per share at beginning of period $ 6.16 $ 5.84 Net asset value per share at end of period $ 6.75 $ 5.04 Creation of Shares 3,300,000 1,000,000 Redemption of Shares 1,900,000 825,000 The accompanying notes are an integral part of these financial statements. 81 Table of Contents TEUCRIUM WHEAT FUND STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 7,535,286 $ ( 7,243,043 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Net change in unrealized depreciation on commodity futures contracts 1,805,050 6,884,216 Changes in operating assets and liabilities: Due from broker ( 5,453,399 ) ( 4,786,517 ) Interest receivable ( 1,329 ) ( 1,055 ) Other assets - 1,143 Due to broker ( 2,571,103 ) ( 4,258,410 ) Management fee payable to Sponsor 10,234 ( 4,977 ) Other liabilities ( 13,154 ) 11,006 Net cash provided by (used in) operating activities 1,311,585 ( 9,397,637 ) Cash flows from financing activities: Proceeds from sale of Shares 21,148,922 5,487,503 Redemption of Shares ( 14,698,350 ) ( 4,534,013 ) Net cash provided by financing activities 6,450,572 953,490 Net change in cash and cash equivalents 7,762,157 ( 8,444,147 ) Cash and cash equivalents, beginning of period 68,946,725 51,467,643 Cash and cash equivalents, end of period $ 76,708,882 $ 43,023,496 The accompanying notes are an integral part of these financial statements. 82 Table of Contents NOTES TO FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Wheat Fund (referred to herein as “WEAT” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “WEAT,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for wheat interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share. The investment objective of WEAT is to have the daily changes in the NAV of the Fund’s Shares reflect the daily changes in the wheat market for future delivery as measured by the Benchmark. The Benchmark is a weighted average of the closing settlement prices for three futures contracts for wheat (“Wheat Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”): WEAT Benchmark CBOT Wheat Futures Contract Weighting Second to expire 35 % Third to expire 30 % December following the third to expire 35 % The Fund commenced investment operations on September 19, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). On June 13, 2011, the Fund’s initial registration of 10,000,000 shares on Form S1 was declared effective by the SEC. On September 19, 2011, the Fund listed its shares on the NYSE Arca under the ticker symbol “WEAT.” On the business day prior to that, the Fund issued 100,000 shares in exchange for $ 2,500,000 at the Fund’s initial NAV of $ 25 per share. The Fund also commenced investment operations on September 19, 2011 by purchasing commodity futures contracts traded on the CBOT. On December 31, 2010, the Fund had four shares outstanding, which were owned by the Sponsor. The current registration statement for WEAT was declared effective on April 29, 2019. This registration statement for WEAT registered an additional 30,000,000 shares. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. 83 Table of Contents Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $64,500 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the statements of operations. A summary of these expenses is included below. The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FINRA. E D & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. A summary of these expenses is included below. The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the statements of operations. A summary of these expenses is included below. The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: 84 Table of Contents Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 15,192 $ 25,956 $ 34,622 $ 48,248 Amount of Custody Services Waived $ - $ - $ - $ - Amount Recognized for Distribution Services $ 8,240 $ 9,178 $ 17,416 $ 20,400 Amount of Distribution Services Waived $ 8,220 $ - $ 8,220 $ - Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 16,173 $ 5,878 $ 30,666 $ 11,769 Amount of Thales Waived $ 3,733 $ - $ 3,733 $ - Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. Revenue Recognition Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents with financial institutions are recognized on the accrual basis. The Fund seeks to earn interest on funds held at the custodian and other financial institutions at prevailing market rates for such investments. The Sponsor invests a portion of cash in commercial paper, which is deemed a cash equivalent based on the rating and duration of contracts as described in the notes to the financial statements and reflected in cash and cash equivalents on the statements of assets and liabilities and on the statements of cash flows. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the statements of operations. The Sponsor invests a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts. Accretion on these investments are recognized using the effective interest method in U.S. dollars and included in interest income on the combined statements of operations. Brokerage Commissions Beginning on August 21, 2019, the Sponsor began recognizing the expense for brokerage commissions for futures contract trades on a per-trade basis. Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis. The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021. WEAT Three Months Ended June 30, 2021 $ 11,048 Three Months Ended June 30, 2020 $ 7,357 Six Months Ended June 30, 2021 $ 22,523 Six Months Ended June 30, 2020 $ 14,159 85 Table of Contents Income Taxes For federal income tax purposes, the Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. The Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. The Fund does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. The Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. For all tax years 2018 to 2020, the Fund remains subject to income tax examinations by major taxing authorities. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019 and 2018. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof. The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020. The Fund may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creations and Redemptions Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m.(EST) on the day the order to create the basket is properly received. Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is properly received. The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the Fund’s statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption are reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed. As outlined in the most recent Form S-1 filing, 50,000 shares represents two Redemption Baskets for the Fund and a minimum level of shares. If the Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. 86 Table of Contents Allocation of Shareholder Income and Losses Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month. Cash and Cash Equivalents Cash equivalents are highly liquid investments with maturity dates of 90 days or less when acquired. The Trust reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly liquid nature and short term maturities. Each Fund that is a series of the Trust has the balance of its cash equivalents on deposit with financial institutions. The Fund holds a balance in money market funds that is included in cash and cash equivalents on the statements of assets and liabilities. The Sponsor invests a portion of the available cash for the Funds in alternative demand deposit savings accounts, which is classified as cash and not as cash equivalents. Assets deposited with the bank may, at times, exceed federally insured limits. The Sponsor invests a portion of the available cash for the Funds in investment grade commercial paper with durations of 90 days or less, which is classified as a cash equivalent and is not FDIC insured. The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured. June 30, 2021 December 31, 2020 Money Market Funds $ 11,681,946 $ 16,227,402 Demand Deposit Savings Accounts 32,532,771 17,730,566 Commercial Paper 32,494,165 34,988,757 Total cash and cash equivalents as presented on the Statement of Assets and Liabilities $ 76,708,882 $ 68,946,725 Due from/to Broker The amount recorded by the Fund for the amount due from and to the clearing broker includes, but is not limited to, cash held by the broker, amounts payable to the clearing broker related to open transactions, payables for commodities futures accounts liquidating to an equity balance on the clearing broker’s records and amounts of brokerage commissions paid and recognized as unrealized losses. Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over the counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure. When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest. Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls. 87 Table of Contents Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions. Calculation of Net Asset Value The Fund’s NAV is calculated by: • Taking the current market value of its total assets and • Subtracting any liabilities. The administrator, Global Fund Services, calculates the NAV of the Fund once each trading day. It calculates the NAV as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The NAV for a particular trading day is released after 4:15 p.m. (EST). In determining the value of Wheat Futures Contracts, the administrator uses the CBOT closing price. The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. (EST). The value of over the counter wheat interests is determined based on the value of the commodity or futures contract underlying such wheat interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such wheat interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Short term Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open wheat interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund. Sponsor Fee, Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities, which the Sponsor performs itself. In addition, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00 % per annum. The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Fund. Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 125,598 $ 119,191 $ 226,469 $ 271,360 Waived Related Party Transactions $ 49,160 $ - $ 63,859 $ - The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period: WEAT Three months ended June 30, 2021 $ 95,936 Three months ended June 30, 2020 $ - Six months ended June 30, 2021 $ 124,651 Six months ended June 30, 2020 $ - 88 Table of Contents Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. Fair Value - Definition and Hierarchy In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these financial instruments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial instruments. This condition could cause a financial instrument to be reclassified to a lower level within the fair value hierarchy. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports. 89 Table of Contents The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the three months being reported. On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Wheat Futures Contracts traded on the CBOT fairly reflected the value of the Wheat Futures Contracts held by the Fund, and no adjustments were necessary. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported. For the period ended June 30, 2020, the Dec 21 CBOT Wheat Futures Contracts traded on the CBOT did not, in the opinion of the Trust and WEAT, trade in an actively traded futures market as defined in the policy of the Trust and WEAT for the entire period during which they were held. Accordingly, the Trust and WEAT classified these as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract. These Wheat contracts transferred back to a Level 1 asset for the period ended September 30, 2020. The Fund records its derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT and the ICE, or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy. Expenses Expenses are recorded using the accrual method of accounting. Net Income (Loss) per Share Net income (loss) per share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units created or redeemed based on the amount of time the units were outstanding during such period. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund. The FASB issued Accounting Standards Update (“ASU”) 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 90 Table of Contents The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. Note 4 – Fair Value Measurements The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Cash Equivalents $ 44,176,111 $ - $ - $ 44,176,111 Commodity Futures Contracts Wheat futures contracts 4,165,999 - - 4,165,999 Total $ 48,342,110 $ - $ - $ 48,342,110 Liabilities Level 1 Level 2 Level 3 Balance as of June 30, 2021 Commodity Futures Contracts Wheat futures contracts $ 232,887 $ - $ - $ 232,887 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Cash Equivalents $ 51,216,159 $ - $ - $ 51,216,159 Commodity Futures Contracts Wheat futures contracts 5,738,162 - - 5,738,162 Total $ 56,954,321 $ - $ - $ 56,954,321 For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Dec 21 CBOT Wheat contracts held by WEAT, which were reflected as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract. These transferred back to a Level 1 asset for the period ended September 30, 2020. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. 91 Table of Contents Note 5 – Derivative Instruments and Hedging Activities In the normal course of business, the Fund utilizes derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Fund’s derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For the three and six months ended June 30, 2021 and for the year ended December 31, 2020, the Fund invested only in commodity futures contracts. Futures Contracts The Fund is subject to commodity price risk in the normal course of pursuing its investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. The purchase and sale of futures contracts requires margin deposits with a Futures Commission Merchant (“FCM”). Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by the Fund. Futures contracts may reduce the Fund’s exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to the Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited. The following table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020. Offsetting of Financial Assets and Derivative Assets as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Wheat futures contracts $ 4,165,999 $ - $ 4,165,999 $ 232,887 $ - $ 3,933,112 Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Liabilities Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due from Broker Net Amount Commodity Price Wheat futures contracts $ 232,887 $ - $ 232,887 $ 232,887 $ - $ - 92 Table of Contents Offsetting of Financial Assets and Derivative Assets as of December 31, 2020 (i) (ii) (iii) = (i)-(ii) (iv) (v)=(iii)-(iv) Gross Amount Not Offset in the Statement of Assets and Liabilities Description Gross Amount of Recognized Assets Gross Amount Offset in the Statement of Assets and Liabilities Net Amount Presented in the Statement of Assets and Liabilities Futures Contracts Available for Offset Collateral, Due to Broker Net Amount Commodity Price Wheat futures contracts $ 5,738,162 $ - $ 5,738,162 $ - $ 2,571,103 $ 3,167,059 The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk: Three months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Appreciation on Commodity Futures Contracts Commodity Price Wheat futures contracts $ 7,160,668 $ 3,250,623 Three months ended June 30, 2020 Realized Loss on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Wheat futures contracts $ ( 285,793 ) $ ( 5,884,890 ) Six months ended June 30, 2021 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Wheat futures contracts $ 10,080,116 $ ( 1,805,050 ) Six months ended June 30, 2020 Realized Gain on Commodity Futures Contracts Net Change in Unrealized Depreciation on Commodity Futures Contracts Commodity Price Wheat futures contracts $ 167,515 $ ( 6,884,216 ) Volume of Derivative Activities The average notional market value categorized by primary underlying risk for all futures contracts held was $ 87.9 million and $ 84.2 million, respectively, for the three and six months ended June 30, 2021, and $ 47.4 million and $ 48.3 million, respectively, for the three and six months ended and June 30, 2020. 93 Table of Contents Note 6 – Financial Highlights The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020. This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate. Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Per Share Operation Performance Net asset value at beginning of period $ 5.99 $ 5.77 $ 6.16 $ 5.84 Income (loss) from investment operations: Investment income - 0.01 0.01 0.04 Net realized and unrealized gain (loss) on commodity futures contracts 0.79 ( 0.69 ) 0.64 ( 0.74 ) Total expenses, net ( 0.03 ) ( 0.05 ) ( 0.06 ) ( 0.10 ) Net increase (decrease) in net asset value 0.76 ( 0.73 ) 0.59 ( 0.80 ) Net asset value at end of period $ 6.75 $ 5.04 $ 6.75 $ 5.04 Total Return 12.62 % ( 12.76 )% 9.58 % ( 13.73 )% Ratios to Average Net Assets (Annualized) Total expenses 2.18 % 3.62 % 2.27 % 3.53 % Total expenses, net 1.74 % 3.62 % 1.97 % 3.53 % Net investment loss ( 1.58 )% ( 2.56 )% ( 1.80 )% ( 2.18 )% The financial highlights per share data are calculated consistent with the methodology used to calculate asset-based fees and expenses. Note 7 – Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees, were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor. Note 8 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q. 94 Table of Contents TEUCRIUM AGRICULTURAL FUND STATEMENTS OF ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 (Unaudited) Assets Cash equivalents $ 1,946 $ 2,786 Other assets 232 1 Equity in trading accounts: Investments in securities, at fair value (cost $ 8,960,682 and $ 1,586,899 as of June 30, 2021 and December 31, 2020, respectively) 10,096,819 1,582,262 Total assets 10,098,997 1,585,049 Liabilities Other liabilities $ 1,218 $ 661 Net assets $ 10,097,779 $ 1,584,388 Shares outstanding 387,502 75,002 Shares authorized 4,275,000 4,612,500 Net asset value per share $ 26.06 $ 21.12 Market value per share $ 26.05 $ 21.21 The accompanying notes are an integral part of these financial statements. 95 Table of Contents TEUCRIUM AGRICULTURAL FUND SCHEDULE OF INVESTMENTS June 30, 2021 (Unaudited) Percentage of Description: Assets Fair Value Net Assets Shares Exchange-traded funds Teucrium Corn Fund $ 2,591,714 25.67 % 120,872 Teucrium Soybean Fund 2,552,729 25.28 107,299 Teucrium Sugar Fund 2,495,290 24.71 294,242 Teucrium Wheat Fund 2,457,086 24.33 364,207 Total exchange-traded funds (cost $8,960,682) $ 10,096,819 99.99 % Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost $1,946) $ 1,946 0.02 % 1,946 The accompanying notes are an integral part of these financial statements. 96 Table of Contents TEUCRIUM AGRICULTURAL FUND SCHEDULE OF INVESTMENTS December 31, 2020 Percentage of Description: Assets Fair Value Net Assets Shares Exchange-traded funds Teucrium Corn Fund $ 401,787 25.36 % 25,858 Teucrium Soybean Fund 401,177 25.32 20,581 Teucrium Sugar Fund 383,816 24.23 57,124 Teucrium Wheat Fund 395,482 24.96 64,237 Total exchange-traded funds (cost: $1,586,899) $ 1,582,262 99.87 % Cash equivalents Money market funds First American Government Obligations Fund - Class X (cost: $2,786) $ 2,786 0.18 % 2,786 The accompanying notes are an integral part of these financial statements. 97 Table of Contents TEUCRIUM AGRICULTURAL FUND STATEMENTS OF OPERATIONS (Unaudited) Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Income Realized and unrealized gain (loss) on trading of securities: Realized loss on securities $ ( 12,070 ) $ ( 240,268 ) $ ( 60,430 ) $ ( 311,685 ) Net change in unrealized appreciation on securities 1,027,924 196,238 1,140,774 91,954 Interest income 1 1 5 11 Total income (loss) 1,015,855 ( 44,029 ) 1,080,349 ( 219,720 ) Expenses Professional fees 5,784 4,609 8,703 7,183 Distribution and marketing fees 15,180 3,464 20,085 8,397 Custodian fees and expenses 1,049 532 1,725 1,066 Business permits and licenses fees 1,794 3,004 8,919 14,129 General and administrative expenses 1,617 677 2,060 1,001 Other expenses - 6 - 10 Total expenses 25,424 12,292 41,492 31,786 Expenses waived by the Sponsor ( 21,459 ) ( 11,681 ) ( 35,595 ) ( 30,503 ) Total expenses, net 3,965 611 5,897 1,283 Net income (loss) $ 1,011,890 $ ( 44,640 ) $ 1,074,452 $ ( 221,003 ) Net income (loss) per share $ 3.64 $ ( 0.60 ) $ 4.94 $ ( 2.95 ) Net income (loss) per weighted average share $ 2.98 $ ( 0.60 ) $ 4.24 $ ( 2.95 ) Weighted average shares outstanding 339,013 75,002 253,455 75,002 The accompanying notes are an integral part of these financial statements. 98 Table of Contents TEUCRIUM AGRICULTURAL FUND STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Operations Net income (loss) $ 1,074,452 $ ( 221,003 ) Capital transactions Issuance of Shares 8,007,179 - Redemption of Shares ( 568,240 ) ( 209,801 ) Total capital transactions 7,438,939 ( 209,801 ) Net change in net assets 8,513,391 ( 430,804 ) Net assets, beginning of period $ 1,584,388 $ 1,478,780 Net assets, end of period $ 10,097,779 $ 1,047,976 Net asset value per share at beginning of period $ 21.12 $ 19.72 Net asset value per share at end of period $ 26.06 $ 16.77 Creation of Shares 337,500 - Redemption of Shares 25,000 12,500 The accompanying notes are an integral part of these financial statements. 99 Table of Contents TEUCRIUM AGRICULTURAL FUND STATEMENTS OF CASH FLOWS (Unaudited) Six months ended Six months ended June 30, 2021 June 30, 2020 Cash flows from operating activities: Net income (loss) $ 1,074,452 $ ( 221,003 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Net change in unrealized appreciation on securities ( 1,140,774 ) ( 91,954 ) Changes in operating assets and liabilities: Net (purchase)/sale of investments in securities ( 7,373,783 ) 523,605 Interest receivable - 3 Receivable for investments sold - ( 211,145 ) Other assets ( 231 ) ( 23 ) Other liabilities 557 419 Net cash used in operating activities ( 7,439,779 ) ( 98 ) Cash flows from financing activities: Proceeds from sale of Shares 8,007,179 - Redemption of Shares ( 568,240 ) - Net cash provided by financing activities 7,438,939 - Net change in cash and cash equivalents ( 840 ) ( 98 ) Cash and cash equivalents, beginning of period 2,786 2,633 Cash and cash equivalents, end of period $ 1,946 $ 2,535 The accompanying notes are an integral part of these financial statements. 100 Table of Contents NOTES TO FINANCIAL STATEMENTS June 30, 2021 (Unaudited) Note 1 – Organization and Operation Teucrium Agricultural Fund (referred to herein as “TAGS” or the “Fund”) is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust organized on September 11, 2009. The Fund operates pursuant to the Trust’s Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Fund was formed on March 29, 2011 and is managed and controlled by Teucrium Trading, LLC (the “Sponsor”). The Sponsor is a limited liability company formed in Delaware on July 28, 2009. The Sponsor is registered as a commodity pool operator (“CPO”) and a commodity trading adviser (“CTA”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). On April 22, 2011, a registration statement was filed with the Securities and Exchange Commission (“SEC”). On February 10, 2012, the Fund’s initial registration of 5,000,000 shares on Form S-1 was declared effective by the SEC. On March 28, 2012, the Fund listed its shares on the NYSE Arca under the ticker symbol “TAGS.” On the business day prior to that, the Fund issued 300,000 shares in exchange for $ 15,000,000 at the Fund’s initial NAV of $ 50 per share. The Fund also commenced investment operations on March 28, 2012 by purchasing shares of the Underlying Funds. On December 31, 2011, the Fund had two shares outstanding, which were owned by the Sponsor. The current registration statement for TAGS was declared effective on April 30, 2021. The investment objective of the TAGS is to have the daily changes in percentage terms of the NAV of its Shares reflect the daily changes in percentage terms of a weighted average (the “Underlying Fund Average”) of the NAVs per share of four other commodity pools that are series of the Trust and are sponsored by the Sponsor: the Teucrium Corn Fund, the Teucrium Wheat Fund, the Teucrium Soybean Fund and the Teucrium Sugar Fund (collectively, the “Underlying Funds”). The Underlying Fund Average will have a weighting of 25% to each Underlying Fund, and the Fund’s assets will be rebalanced, generally on a daily basis, to maintain the approximate 25% allocation to each Underlying Fund: TAGS Benchmark Underlying Fund Weighting CORN 25 % SOYB 25 % CANE 25 % WEAT 25 % The Fund seeks to provide daily investment results that reflect the combined daily performance of the Underlying Funds. Under normal market conditions, the Fund seeks to achieve its investment objective generally by investing equally in shares of each Underlying Fund and, to a lesser extent, cash equivalents. The Fund’s investments in shares of the Underlying Funds is rebalanced, generally on a daily basis, in order to maintain approximately a 25% allocation of the Fund’s assets to each Underlying Fund. (This weighted average is referred to herein as the Underlying Fund’s “Benchmark,” the Futures Contracts that at any given time make up an Underlying Fund’s Benchmark are referred to herein as the Underlying Fund’s “Benchmark Component Futures Contracts,” and the commodity specified in the Underlying Fund’s name is referred to herein as its “Specified Commodity.”) Specifically, the Teucrium Corn Fund’s Benchmark is: (1) the second to expire Futures Contract for corn traded on the Chicago Board of Trade (“CBOT”), weighted 35%, (2) the third to expire CBOT corn Futures Contract, weighted 30%, and (3) the CBOT corn Futures Contract expiring in the December following the expiration month of the third to expire contract, weighted 35%. The Teucrium Wheat Fund’s Benchmark is: (1) the second to expire CBOT wheat Futures Contract, weighted 35%, (2) the third to expire CBOT wheat Futures Contract, weighted 30%, and (3) the CBOT wheat Futures Contract expiring in the December following the expiration month of the third to expire contract, weighted 35%. The Teucrium Soybean Fund’s Benchmark is: (1) the second to expire CBOT soybean Futures Contract, weighted 35%, (2) the third to expire CBOT soybean Futures Contract, weighted 30%, and (3) the CBOT soybean Futures Contract expiring in the November following the expiration month of the third to expire contract, weighted 35%, except that CBOT soybean Futures Contracts expiring in August and September will not be part of the Teucrium Soybean Fund’s Benchmark because of the less liquid market for these Futures Contracts. The Teucrium Sugar Fund’s Benchmark is: (1) the second to expire Sugar No. 11 Futures Contract traded on ICE Futures US (“ICE Futures”), weighted 35%, (2) the third to expire ICE Futures Sugar No. 11 Futures Contract, weighted 30%, and (3) the ICE Futures Sugar No. 11 Futures Contract expiring in the March following the expiration month of the third to expire contract, weighted 35%. 101 Table of Contents While the Fund expects to maintain substantially all of its assets in shares of the Underlying Funds at all times, the Fund may hold some residual amount of assets in obligations of the United States government (“Treasury Securities”) or cash equivalents, and/or merely hold such assets in cash (generally in interest-bearing accounts). The Underlying Funds invest in Commodity Interests to the fullest extent possible without being leveraged or unable to satisfy their expected current or potential margin or collateral obligations with respect to their investments in Commodity Interests. After fulfilling such margin and collateral requirements, the Underlying Funds will invest the remainder of the proceeds from the sale of baskets in short term Treasury Securities or cash equivalents, and/or merely hold such assets in cash. Therefore, the focus of the Sponsor in managing the Underlying Funds is investing in Commodity Interests and in cash and/or cash equivalents. The Fund and Underlying Funds will seek to earn interest income from the short term Treasury Securities and/or cash equivalents that it purchases and on the cash, it holds through the Fund’s custodian. The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable. The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent. However, no level of losses will require the Sponsor to terminate a Fund. Note 2 – Principal Contracts and Agreements The Sponsor employs U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("Global Fund Services"), for Transfer Agency, Fund Accounting and Fund Administration services. The principal address for Global Fund Services is 615 E. Michigan Street, Milwaukee, WI 53202. For custody services, the Funds will pay to U.S. Bank N.A. 0.0075% of average gross assets up to $1 billion, and .0050% of average gross assets over $1 billion, annually, plus certain per-transaction charges. For Transfer Agency, Fund Accounting and Fund Administration services, which are based on the total assets for all the Funds in the Trust, the Funds will pay to Global Fund Services 0.05% of average gross assets on the first $500 million, 0.04% on the next $500 million, 0.03% on the next $2 billion and 0.02% on the balance over $3 billion annually. A combined minimum annual fee of up to $47,000 for custody, transfer agency, accounting and administrative services is assessed per Fund. These services are recorded as custodian fees and expenses on the statements of operations. A summary of these expenses is included below. The Sponsor employs Foreside Fund Services, LLC (“Foreside” or the “Distributor”) as the Distributor for the Funds. The Distribution Services Agreement among the Distributor and the Sponsor calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising materials. The Distributor and the Sponsor have also entered into a Securities Activities and Service Agreement (the “SASA”) under which certain employees and officers of the Sponsor are licensed as registered representatives or registered principals of the Distributor, under Financial Industry Regulatory Authority (“FINRA”) rules. For its services as the Distributor, Foreside receives a fee of 0.01% of each Fund’s average daily net assets and an aggregate annual fee of $100,000 for all Funds, along with certain expense reimbursements. For its services under the SASA, Foreside receives a fee of $5,000 per registered representative and $1,000 per registered location. These services are recorded as distribution and marketing fees on the statements of operations. A summary of these expenses is included below. Pursuant to a Consulting Services Agreement, Foreside Consulting Services, LLC, performs certain consulting support services for the Trust's Sponsor. Additionally, Foreside Distributors, LLC performs certain distribution consulting services pursuant to a Distribution Consulting Agreement with the Sponsor. E D & F Man Capital Markets, Inc. (“E D & F Man”) serves as the Underlying Funds’ clearing broker to execute and clear the Underlying Funds’ futures and provide other brokerage-related services. E D & F Man is registered as a futures commission merchant (“FCM”) with the U.S. CFTC and is a member of the NFA. E D & F Man is also registered as a broker/dealer with the SEC and is a member of FNRA. E D & F Man is a clearing member of ICE Futures U.S., Inc., Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange, and all other major United States commodity exchanges. For Corn, Soybean, Sugar and Wheat Futures Contracts E D & F Man is paid $9.00 per round turn . Prior to August 21, 2019, these expenses were recorded in brokerage commissions on the statements of operations. Beginning on August 21, 2019, these expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. A summary of these expenses is included below. 102 Table of Contents The sole Trustee of the Trust is Wilmington Trust Company, a Delaware banking corporation. The Trustee will accept service of legal process on the Trust in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. For its services, the Trustee receives an annual fee of $ 3,300 from the Trust. These services are recorded in business permits and licenses fees on the statements of operations. A summary of these expenses is included below. The Sponsor employs Thales Capital Partners LLC (“Thales”) for distribution and solicitation-related services. Thales is registered as a Broker-Dealer with the SEC and a member of FINRA and the Securities Investor Protection Corporation (“SIPC”). Thales receives a quarterly fee of the higher of $18,750 or 0.10% of new assets raised in referred accounts for distribution and solicitation-related services. This fee based on new assets raised is determined by an agreed upon level of assets at the time of signing the contract. These services are recorded in distribution and marketing fees on the statements of operations. A summary of these expenses is included below: Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Amount Recognized for Custody Services $ 1,049 $ 532 $ 1,725 $ 1,066 Amount of Custody Services Waived $ 1,049 $ 532 $ 1,725 $ 1,066 Amount Recognized for Distribution Services $ 682 $ 206 $ 1,027 $ 463 Amount of Distribution Services Waived $ 682 $ 206 $ 869 $ 463 Amount Recognized for Wilmington Trust $ - $ - $ - $ - Amount of Wilmington Trust Waived $ - $ - $ - $ - Amount Recognized for Thales $ 1,255 $ 134 $ 1,758 $ 264 Amount of Thales Waived $ 1,255 $ 134 $ 1,758 $ 264 Note 3 – Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification. Revenue Recognition Investment transactions are accounted for on a trade-date basis. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on investments are reflected in the statements of assets and liabilities as the difference between the original amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis. The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Brokerage Commissions Brokerage commissions are accrued on the trade date and on a full-turn basis. 103 Table of Contents Income Taxes For federal income tax purposes, the Fund will be treated as a publicly traded partnership. A publicly traded partnership is generally treated as a corporation for federal income tax purposes unless 90% or more of the publicly traded partnership’s gross income for each taxable year of its existence consists of qualifying income as defined in section 7704(d) of the Internal Revenue Code of 1986, as amended. Qualifying income is defined as generally including, in pertinent part, interest (other than from a financial business), dividends, and gains from the sale or disposition of capital assets held for the production of interest or dividends. In the case of a partnership of which a principal activity is the buying and selling of commodities, other than as inventory, or of futures, forwards and options with respect to commodities, qualifying income also includes income and gains from commodities and from futures, forwards, options with respect to commodities and, provided the partnership is a trader or investor with respect to such assets, swaps and other notional principal contracts with respect to commodities. The Fund expects that at least 90% of the Fund’s gross income for each taxable year will consist of qualifying income and that the Fund will be taxed as a partnership for federal income tax purposes. The Fund does not record a provision for income taxes because the shareholders report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. The Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. For all tax years 2018 to 2020, the Fund remains subject to income tax examinations by major taxing authorities. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. This policy has been applied to all existing tax positions upon the Fund’s initial adoption. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019 and 2018. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof. The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020. The Fund may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. Creations and Redemptions Effective August 28, 2018, the Sponsor filed a prospectus supplement updating the Creation and Redemption Basket size to 12,500 shares. Prior to this prospectus supplement, the basket size for Creations and Redemptions was 25,000 shares. Authorized Purchasers may purchase Creation Baskets consisting of 12,500 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. (EST) on the day the order to create the basket is received in good order. Authorized Purchasers may redeem shares from the Fund only in blocks of 12,500 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. (EST) on the day the order to redeem the basket is received in good order. The Fund will receive the proceeds from shares sold or will pay for redeemed shares within three business days after the trade date of the purchase or redemption, respectively. The amounts due from Authorized Purchasers will be reflected in the Fund’s statements of assets and liabilities as capital shares receivable. Amounts payable to Authorized Purchasers upon redemption will be reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed. As outlined in the most recent Form S-1 filing, 50,000 shares represents four Redemption Baskets for the Fund and a minimum level of shares. If the Fund experienced redemptions that caused the number of Shares outstanding to decrease to the minimum level of Shares required to be outstanding, until the minimum number of Shares is again exceeded through the purchase of a new Creation Basket, there can be no more redemptions by an Authorized Purchaser. 104 Table of Contents Allocation of Shareholder Income and Losses Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month. Cash Equivalents Cash equivalents are highly liquid investments with maturity dates of 90 days or less when acquired. The Fund reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly-liquid nature and short term maturities. The Fund has these balances of its assets on deposit with banks. Assets deposited with a financial institution may, at times, exceed federally insured limits. TAGS had a balance of $1,946 and $2,786 in money market funds at June 30, 2021 and December 31, 2020, respectively; these balances are included in cash equivalents on the statements of assets and liabilities. Payable/Receivable for Securities Purchased/Sold Due from/to broker for investments in securities are securities transactions pending settlement. The Fund is subject to credit risk to the extent any broker with whom it conducts business is unable to fulfill contractual obligations on its behalf. The management of the Fund monitors the financial condition of such brokers and does not anticipate any losses from these counterparties. Calculation of Net Asset Value The Fund’s NAV is calculated by: • Taking the current market value of its total assets and • Subtracting any liabilities. The administrator, Global Fund Services, will calculate the NAV of the Fund once each trading day. It will calculate the NAV as of the earlier of the close of the New York Stock Exchange or 4:00 p.m. (EST). The NAV for a particular trading day will be released after 4:15 p.m. (EST). For purposes of determining the Fund’s NAV, the Fund’s investments in the Underlying Funds will be valued based on the Underlying Funds’ NAVs. In turn, in determining the value of the Futures Contracts held by the Underlying Funds, the Administrator will use the closing price on the exchange on which they are traded. The Administrator will determine the value of all other Funds and Underlying Fund investments as of the earlier of the close of the New York Stock Exchange or 4:00 p.m. (EST), in accordance with the current Services Agreement between the Administrator and the Trust. The value of over the counter Commodity Interests will be determined based on the value of the commodity or Futures Contract underlying such Commodity Interest, except that a fair value may be determined if the Sponsor believes that the Underlying Fund is subject to significant credit risk relating to the counterparty to such Commodity Interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV of an Underlying Fund where necessary to reflect the “fair value” of a Futures Contract held by an Underlying Fund when a Futures Contract held by an Underlying Fund closes at its price fluctuation limit for the day. Short term Treasury Securities held by the Fund or Underlying Funds will be valued by the Administrator using values received from recognized third-party vendors (such as Reuters) and dealer quotes. NAV will include any unrealized profit or loss on open Commodity Interests and any other credit or debit accruing to the Fund but unpaid or not received by the Fund. Sponsor Fee Allocation of Expenses and Related Party Transactions The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. In addition, the Sponsor elected not to outsource services directly attributable to the Trust and the Funds such as accounting, financial reporting, regulatory compliance and trading activities. In addition, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00 % per annum. The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, FINRA, formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds within the Trust are allocated by the Sponsor to the respective funds based on activity drivers deemed most appropriate by the Sponsor for such expenses, including but not limited to relative assets under management and creation order activity. 105 Table of Contents These aggregate common expenses include, but are not limited to, legal, auditing, accounting and financial reporting, tax-preparation, regulatory compliance, trading activities, and insurance costs, as well as fees paid to the Distributor, which are included in the related line item in the statements of operations. A portion of these aggregate common expenses are related to the Sponsor or related parties of principals of the Sponsor; these are necessary services to the Funds, which are primarily the cost of performing accounting and financial reporting, regulatory compliance, and trading activities that are directly attributable to the Fund. Such expenses are primarily recorded as distribution and marketing fees on the statement of operations. All asset-based fees and expenses for the Funds are calculated on the prior day’s net assets. Three months ended June 30, 2021 Three months ended June 30, 2020 Six months ended June 30, 2021 Six months ended June 30, 2020 Recognized Related Party Transactions $ 11,217 $ 2,736 $ 15,107 $ 6,201 Waived Related Party Transactions $ 9,060 $ 2,315 $ 11,053 $ 5,780 The Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee. This election is subject to change by the Sponsor, at its discretion. Expenses paid by the Sponsor and Management fees waived by the Sponsor are, if applicable, presented as waived expenses in the statements of operations for each Fund. The Sponsor has determined that there will be no recovery sought for the amounts below in any future period: TAGS Three months ended June 30, 2021 $ 21,459 Three months ended June 30, 2020 $ 11,681 Six months ended June 30, 2021 $ 35,595 Six months ended June 30, 2020 $ 30,503 Expenses Expenses are recorded using the accrual method of accounting. Use of Estimates The preparation of 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-10: “Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP. The amendment is effective for annual periods beginning after December 15, 2020. The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund. The FASB issued Accounting Standards Update (“ASU”) 2020-02: “Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). The amendment updates and adds language to ASU 2016-02. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2020-01: Investments Equity Securities (Topic 321), Investments Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting. The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. 106 Table of Contents The FASB issued ASU 2019-01: "Leases (Topic 842): Codification Improvements. These amendments align the guidance for fair value of underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2018-13: “Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement. These amendments modify public and private company fair value disclosure requirements. While some disclosures were removed or modified, others were added. The guidance is a result of the FASB’s test of the principals developed to improve the effectiveness of disclosures in the notes to the financial statements. The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. The FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments”. The amendment amends the early adoption date option for certain companies related to adoption of ASU No. 2014-09 and ASU No. 2016-02. The SEC staff stated the SEC would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC adopting ASC Topic 842 for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The amendments were adopted for the quarter ended September 30, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund. Fair Value - Definition and Hierarchy In accordance with GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Fund uses various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 financial instruments of the Underlying Funds and securities of the Fund, together the “financial instruments”. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these financial instruments does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the financial instruments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for financial instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. 107 Table of Contents On June 30, 2021 the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 and Dec21 CBOT corn futures contracts, which settled in a “limit up” condition on June 30, 2021. Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021, and the financial statements of these funds including TAGS, due to the NAV adjustments for the Underlying Fund, have been adjusted accordingly. The adjustment in CORN has resulted in a $10,393 increase in the investment in the Underlying Funds and have classified these as a Level 2 asset for the period ended June 30, 2021. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. For the quarter ended March 31, 2021 Corn Futures Contracts for Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, and Soybean Futures Contracts for Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition. Accordingly, the Trust, CORN, and SOYB classified these as Level 2 assets. The financial statements of these funds including TAGS, due to the NAV adjustment for each of these Underlying Funds, were adjusted accordingly. The adjustment in CORN and SOYB resulted in a $30,191 increase in the investment in the Underlying Funds, which were classified as a Level 2 asset for the period ended March 31, 2021. For the period ended June 30, 2021, the SOYB shares were classified as a Level 1 asset. The CORN shares remained a Level 2 asset as described above. Net Income (Loss) per Share Net income (loss) per share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units created or redeemed based on the amount of time the units were outstanding during such period. Note 4 – Fair Value Measurements The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020: June 30, 2021 Assets: Level 1 Level 2 Level 3 Balance as of June 30, 2021 Exchange Traded Funds $ 7,505,105 $ 2,591,714 $ - $ 10,096,819 Cash Equivalents 1,946 - - 1,946 Total $ 7,507,051 $ 2,591,714 $ - $ 10,098,765 December 31, 2020 Assets: Level 1 Level 2 Level 3 Balance as of December 31, 2020 Exchange Traded Funds $ 1,582,262 $ - $ - $ 1,582,262 Cash Equivalents 2,786 - - 2,786 Total $ 1,585,048 $ - $ - $ 1,585,048 On June 30, 2021 the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 and Dec21 CBOT corn futures contracts which settled in a “limit up” condition on June 30, 2021. Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021, and the financial statements of these funds including TAGS, due to the NAV adjustments for each of the impacted Underlying Funds have been adjusted accordingly. The adjustment in CORN has resulted in a $10,383 increase in the investment of the Underlying Funds due to the increase in unrealized gain in the Corn Fund, and have classified these Corn Fund shares as a Level 2 asset for the period ended June 30, 2021 due to the updated Corn Fund NAV. The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period. For the quarter ended March 31, 2021 Corn Futures Contracts for Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, and Soybean Futures Contracts for Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition. Accordingly, the Trust, CORN, and SOYB classified these as Level 2 assets. The financial statements of these funds including TAGS, due to the NAV adjustment for each of these Underlying Funds, were adjusted accordingly. The adjustment in CORN and SOYB resulted in a $30,191 increase in the investment in the Underlying Funds, which were classified as a Level 2 asset for the period ended March 31, 2021. For the period ended June 30, 2021, the SOYB shares were classified as a Level 1 asset. The CORN shares remained a Level 2 asset as described above. For the year ended December 31, 2020, the Fund did not have any transfers between any of the level of the fair value hierarchy. See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy. 108 Table of Contents Note 5 – Financial Highlights The following table presents per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020. This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate. Three months ended Three months ended Six months ended Six months ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Per Share Operation Performance Net asset value at beginning of period $ 22.42 $ 17.37 $ 21.12 $ 19.72 Income (loss) from investment operations: Net realized and unrealized gain (loss) on investment transactions 3.65 ( 0.59 ) 4.96 ( 2.93 ) Total expenses, net ( 0.01 ) ( 0.01 ) ( 0.02 ) ( 0.02 ) Net increase (decrease) in net asset value 3.64 ( 0.60 ) 4.94 ( 2.95 ) Net asset value at end of period $ 26.06 $ 16.77 $ 26.06 $ 16.77 Total Return 16.24 % ( 3.44 )% 23.39 % ( 14.96 )% Ratios to Average Net Assets (Annualized) Total expenses 1.20 % 3.95 % 1.37 % 4.78 % Total expenses, net 0.19 % 0.20 % 0.19 % 0.19 % Net investment loss ( 0.19 )% ( 0.20 )% ( 0.19 )% ( 0.19 )% The financial highlights per share data are calculated consistent with the methodology used to calculate asset-based fees and expenses. Note 6 – Organizational and Offering Costs Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees, were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor. Note 7 – Subsequent Events Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets. The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q. 109 Table of Contents