CHS Board announces patronage and equity distribution

Patronage and equity are key benefits for owners of CHS and the cooperative system. CHS is committed to distributing patronage and redeeming equity for its owners while maintaining a strong balance sheet so it can continue to provide owners with the goods, services and supply chain capabilities required for long-term success.

Following the close of fiscal 2018, the CHS Board of Directors has announced the following patronage and equity distribution decisions:
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CHS Fertilizer Plant Project in Fergus Falls, MN

Get the Project Details Here!

What will the new facility include?

When completed, CHS will have a state of the art fertilizer facility at our French location!  This facility will include the following components:

  • Faster fertilizer load out, which means we can get product to your fields over twice as fast as our current systems in both our French and Fergus East sites. This process will go from around 30 minutes currently to between 8-10 minutes with the new site.
  • Ability to impregnate 6+ products with automated impregnation system.
  • A significant increase in fertilizer storage! We’ll be moving from a combined 5,000 tons of storage between French and Fergus East to 10,890 tons of storage in the new facility, with more (and bigger) bins for individual products.
  • We’re really excited about the addition of a Sackett Waconia High Intensity Mixer. With this system, you can be confident that every blend is as uniform as possible – see what all the excitement is about by checking out their YouTube product video (if you want to skip to the good stuff, start watching at 0:50).
  • This facility will also include an 86×86’ chemical shed, with 8 bulk tanks.
  • The capacity of the tower will triple – going from 90 ton to 300 ton.
  • As with any new facility, this will be built to the latest OSHA & industry safety standards to ensure the safety of our employees, customers, and community members.

Below are a few photos of a facility that is built similarly to ours, to give an example of what it will look like:

 

When will the new facility be functional?

The site will be functional for spring fertilizer next year.

What should I do for fall fertilizer in 2018?

While the fall fertilizer process will change a little on our end as this facility is built, you shouldn’t see any changes.  Please continue to call your agronomy contact to place your fertilizer orders for fall as you have in past years.

Where will my agronomy team be located this fall?

Nothing will change for this fall – you can still contact your agronomy team in either the French or Underwood offices this fall and into this winter.

 

Interested in keeping up to date on the construction progress with the plant?  Sign up for email updates here!

Two CHS businesses unify on Sept. 1 for greater patron benefit

HERMAN, Minn. (Sept. 4, 2018) –  On Sept. 1, two locally governed CHS ag retailers, CHS Border States and CHS New Horizons, began operating as one unified business unit under the name of CHS.

The two producer boards of CHS Border States and CHS New Horizons voted unanimously in March to unify their operations and create one new business unit within CHS. The two boards came to this decision after much thoughtful discussion about how best to serve the farmers, ranchers and other customers in South Dakota and Minnesota as the agriculture industry continues to evolve.

“Our board room discussions revealed much greater advantages to our patrons with a full unification,” said Dana Stapleton, former board president, CHS Border States. “Both of our operations were already strong financially, but combining these two business units allows us to put the appropriate levels of resources into services and programs while strengthening our risk management and leverage with suppliers.”

“The conversation about unification has been ongoing for some time,” said Steven Deal, former board president, CHS New Horizons. “But when Dean Longnecker, general manager, CHS Border States, announced his retirement plans earlier this year, this decision caused both boards to look at the idea more closely.”

Longnecker retired on March 2, 2018, and at that time, Jerry Kramer, general manager for CHS New Horizons, was chosen to lead the new operation. The two business units have been working together operationally since then, but the full unification did not occur until Sept. 1, the start of the new CHS fiscal year.

The two producer boards have merged into one board to oversee the new operation, with Steven Deal as president and Dana Stapleton as vice president. The two business units have spent the summer bringing operations together so that, starting Sept. 1, the change should be seamless for customers and business partners. The main administrative office will be in Herman, Minn. A new website is being developed (chs-herman.com) and will be live in mid-September.

The new business unit is part of CHS Inc. (www.chsinc.com), a leading U.S. farmer-owned cooperative. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward–looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward–looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward–looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward–looking statements. Therefore, you should not rely on any of these forward–looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward–looking statements are discussed or identified in CHS public filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10–K for the fiscal year ended August 31, 2017. Any forward–looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to publicly update any forward–looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

 

Discussing potential trade policy impacts

trade policy
Trade is a critically important part of business for CHS and for our farmer-owners, yet U.S. trade policy remains uncertain and dynamic. Tariffs being applied to imports from China and other important international markets – and resulting retaliatory measures from our trading partners – could have an impact across the entire CHS enterprise. This could offer significant challenges as our owners move toward harvest this fall. (more…)

August 2018 Sealed Bid Equipment Auction

Sealed bids for auction equipment will be accepted until 5PM on Friday, August 31, 2018 at CHS New Horizons in Chokio, MN.  Bids received after this time will not be considered and we reserve the right to refuse any bids.  

Equipment is sold as-is, no warranty.  Any and all information is shared to the best of our knowledge and is not necessarily an all-inclusive description of the equipment; it is up to each bidder to verify the accuracy of these statements and the condition of the items before bidding.  

Bid Process:
Your bid must include your name, address, phone number, bid amount & unit number of equipment.  Submit your sealed bid to the CHS New Horizons office in Chokio by either mail (CHS New Horizons, Attn: Equipment Sealed Bid Auction, PO Box 126, Chokio MN 56221) or drop off at the front office in a sealed envelope, marked ‘Equipment Sealed Bid Auction’.

Bids will be reviewed the week of September 4 and all winning bidders will be notified by Friday, September 7.  Equipment must be paid in full and picked up by Friday, September 14, 2018.  
Questions regarding the sealed bid equipment auction can be directed to Doug Olson at 320-324-2477.  Equipment is available for viewing in Chokio & Herman; check individual equipment photos on our Facebook link here for location information.

CHS reports net income of $229.3 million for the 3rd quarter of fiscal 2018

CHS income
CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, reported net income on July 11, 2018, of $229.3 million for the third quarter of its 2018 fiscal year (three-month period ended May 31, 2018), compared to a net loss of $45.2 million for the same time period a year ago.

Consolidated revenues for the third quarter of fiscal 2018 were $9.0 billion, up from $8.6 billion for the third quarter of fiscal 2017. Pretax income was $289.4 million for the third quarter of fiscal 2018, compared to a loss of $209.2 million for the same period the prior fiscal year.

“Thanks to the hard work of many throughout CHS, we’ve made great strides this year in strengthening relationships, optimizing operations and improving results from our core businesses,” said CHS President and CEO Jay Debertin. “The steps we’ve taken will better position us to navigate the inevitable cycles in agriculture and energy. I am proud of our team and their dedication and commitment to operating with excellence.” (more…)

The difference between drift and volatilization

herbicide application
Getting the most out of an herbicide application not only includes maximizing efficacy, but also minimizing damage caused by herbicides. Being aware of what can go wrong and how to avoid it can lead to effective, on-target herbicide applications and help growers have a successful growing season – without the distress and loss caused by applications gone awry.

Two threats to herbicide applications are drift and volatilization. While they may seem similar, they are quite unique and require different attention to ensure that neither occur. (more…)

CHS New Horizons supports hometown community safety initiative

Photo L to R: Scott Libbesmeier, Tanner Lehman, Deb Stoneburg (CHS New Horizons), and Todd Vipond (Fire Chief)

 

Herman, MN – This spring, CHS New Horizons announced a $5,000 grant to Herman Fire Department in Herman, MN. The funds supported the purchase of a Quick Rescue truck, which will be used to assist responders during rescue calls.

“We’re proud to support this project as a way to strengthen the community and see it thrive,” says Jerry Kramer, CHS New Horizons General Manager. “Projects like this are essential to enriching our rural area and the people who live here.”

The funds contributed by CHS New Horizons were matched dollar for dollar by a CHS Seeds for Stewardship grant, which helps cooperatives grow their impact locally. Together, $5,000 will benefit Herman Fire Department.

“Cooperatives were founded on the principles of education, community involvement and cooperation,” says Kramer. “By combining resources, we are providing double the impact to our area and demonstrating the cooperative spirit.”

Providing products and services in the agronomy, energy, and grain markets with locations in the communities of Chokio, Donnelly, Fergus Falls, Herman, Morris & Underwood, CHS New Horizons is here to supply for your needs. For more on what’s new, visit us at www.chsnewhorizons.com, like us on Facebook, and follow us on Twitter.

June 20th Scouting Report

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

 

Aaron Helbling Scouting Report
CHS New Horizons in French

Corn: A lot of corn fields are growing really fast, and early sprays have been keeping most fields really clean. Keep checking on fields as they get close to canopy, remembering that chemical options start to get fewer and fewer as your corn grows. We are also getting to the stages where tissue testing will show fertilizer needs.

Soybeans: Pre’s worked great this year but are breaking down fast. Throwing in some residual for late flushing weeds such as waterhemp on these passes should get you to canopy really clean. Be aware of dicamba deadlines, and have a backup plan ready. With a lot of moisture and beans getting close to flowering, remember last year’s issues with white mold and ask about fungicide timings.

Wheat: Wheat is approaching heading fast, we have seen great results with fungicide treatment at heading (especially in moist conditions).

Alfalfa: Seeing more alfalfa weevil this year, after first cutting is a prime time to be watching for weevils.

 

Sam Westby Scouting Report
CHS New Horizons in Chokio

In our area, corn is sitting around V5-V6, and spraying is going well so far.  Soybeans are all over the board as far as stages – averages are around V3-V4, and they are looking good.  The eastern part of our territory is looking a bit too wet, and around Chokio things are okay but still a little on the wet side.  looking forward, continue monitoring weeds and get them sprayed as needed, especially as things begin to dry up in the next week.

 

James Svendsgaard Scouting Report
CHS New Horizons in Fergus East

Our area is wet, with 2-3” of rain over the weekend.  On the plus side, we have enough moisture in the ground with a good number of GDUs already, so it’s a ‘good problem’ to have as the crops are growing well.  Beans are starting to get weedy, so now is the time to get them sprayed. Corn has been growing extremely fast and a lot is already canopied.  With this in mind, we are in our last push for corn topdressing.  Wheat is looking very good – the majority is finished with topdressing.  With wheat, think about fungicide as they move into heading to help prevent dockage at elevators in the fall.

June 8th Scouting Report

 

Curious what’s happening throughout our territory?  Members of our agronomy team weigh in below with what they’re seeing in fields so far this season.

Sam Westby Scouting Report
CHS New Horizons in Chokio

     Corn: Corn is anywhere from V3-V5 stage around here. We are starting to see more and more weeds poking through in fields that had pre-emergence chemistry applied. (more…)

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