CHS Putting Future First For Its Cooperative Owners

CHS Inc., a global energy, grains and foods company, is committed to continued growth that will drive economic value to its farmer owners and the rural communities in which they live, its leaders told attendees at its recent annual meeting.

“Our ultimate responsibility is to invent the CHS of the future by making the decisions, executing the investments and managing the financial health of this company in a manner that not only adds value for you today, but continues to pay off 10 and 20 years down the road,” CHS President and CEO Carl Casale told attendees. “Ultimately, it’s about taking actions today that will benefit tomorrow’s owner, the generations that are now playing in farm yards or buying their first blue FFA jackets.”

The CHS Annual Meeting, held December 5-6 at the Minneapolis Convention Center, drew nearly 2,000 of the cooperative’s owners and other stakeholders. Included in the event was a special New Leaders Forum which drew nearly 175 promising young farmers and ranchers from across the U.S. for an exploration of issues facing agriculture and rural America.

In recent years, CHS has completed or committed to $4 billion in acquisitions, expansions and upgrades in its energy, grains, and processing and food ingredients businesses with a goal of adding long-term value for its farmer and cooperative owners, as well as customers worldwide. Casale said as CHS pursues its growth strategy, commitment to safety will be the company’s overriding priority.

CHS Board Chairman David Bielenberg, a Silverton, OR, farmer, said the board of directors’ primary goal is ensure the cooperative is appropriately capitalized to add value for its owners. In addition, he said, the 17-member farmer board must continue to expand its knowledge and ability to lead what is now one of the world’s major agribusinesses, as well as one of the largest companies owned by farmers.

“And closest to home we must drive the CHS commitment to agriculture and a vibrant rural America, especially for the next generations of farmers and ranchers who will be our owners and customers,” Bielenberg said.

Chief Financial Officer Tim Skidmore, who joined CHS in August 2013, told the company’s owners that his priority is to maintain the strong balance sheet, the financial flexibility and the liquidity that ensures that CHS has access to the capital it needs to fuel growth.

“Continuing to generate strong earnings as we have in recent years certainly helps, but we are in volatile commodity businesses and our strategic direction includes significant growth,” he said. “That means we must optimize our capital structure to manage both costs and the duration on our balance sheet of both assets and capitalization.”

In November, CHS reported its second-best earnings on record at $992.4 million for fiscal 2013 (September 1, 2013 – August 31, 2013), down from a record $1.26 for fiscal 2012. Earnings reached a record $44.5 billion. At number 69 in 2013, CHS is the only cooperative in the 2013 Fortune 100.The company is also ranked No. 5 on the CropLife 100 ranking of the largest ag retailers in the U.S.

Based on its fiscal 2013 earnings, CHS will return an estimated $433 million in cash to owners in fiscal 2014.

Leave a Reply

CropLife 100 Stories
CropLife 100CHS To Build $3 Billion Fertilizer Plant In North Dakota
September 5, 2014
The fertilizer plant in Spiritwood will be the single largest investment in CHS history, as well as the single largest private investment project ever undertaken in North Dakota. Read More
CropLife 100BRANDT Acquires Lemon Ag Services
August 4, 2014
The acquisition of Lemon Ag fits BRANDT’s aggressive corporate strategy of providing superior agronomic advice and services for customers in central Illinois. Read More
CropLife 100Wilbur-Ellis To Relocate Agribusiness Division To Denver
July 16, 2014
The move Eastward will allow Wilbur-Ellis’ Agribusiness Division to be more accessible to relevant geographies and is expected to enhance communication and collaboration among the division’s nearly 3,000 employees. Read More
CropLife 100CHS To Acquire Illinois River Energy Ethanol Plant
May 1, 2014
CHS has signed an agreement with Sinav Ltd. to acquire 100% of the company's stock, which includes Illinois River Energy, a 133-million-gallon-per-year ethanol plant at Rochelle, IL. Read More
Top 100 Articles
CropLife 100CHS Partners With Northern Partners Coop On Fertilizer Warehouse
January 21, 2015
In addition, the two companies will form a joint venture to build and operate a grain barge loading facility that will handle corn, soybeans and wheat for export through the CHS terminal at Myrtle Grove, LA. Read More
CropLife 100Wilbur-Ellis Move To Colorado Complete
January 20, 2015
Wilbur-Ellis Co. announces the opening of its new Agribusiness Division location in the Denver, CO, Metro Area. The new facility will host key personnel as the company shifts the base of its Agribusiness operations from California to Colorado. Read More
CropLife 100United Suppliers, McGregor Co., Five Others To Form Aligned Ag Distributors
January 20, 2015
These companies will continue to operate as independently owned and operated businesses, however, their crop protection divisions will now be formally aligned under the umbrella of Aligned Ag Distributors. Read More
CropLife 100Bozeman Named SEEDWAY Chief Operating Officer
January 16, 2015
He succeeds Donald Wertman, who will retire at the end of August 2015 after 40 years with the GROWMARK subsidiary. Read More
CropLife 100Wilbur-Ellis’ Craig Bair Honored For Safety Contributions To Ag Aviation
January 14, 2015
The William O. Marsh Safety Award recognizes significant achievements in safety, safety education or an outstanding operational safety program. Read More
CropLife 100BRANDT Gearing Up For Another NASCAR Season
January 13, 2015
BRANDT will return for its fifth year as a primary sponsor of the No. 51 driven by Justin Allgaier in the NASCAR Sprint Cup Series. Read More
Latest News
ManagementRetail Collaboration, Communicating Agriculture’s Good …
January 23, 2015
Editors Paul Schrimpf and Eric Sfliligoj discuss the recent creation of Aligned Ag Distributors, and the US Farmers and Ranchers Read More
FertilizerOSU Expert: Toledo Water Crisis A Turning Point For Ohi…
January 23, 2015
The August 2014 water crisis in Toledo, OH, impacted Ohioans’ views of Lake Erie algae problems by increasing the attribution of blame of algae growth on agriculture. Read More
FertilizerH.J. Baker Launching TIGER XP
January 22, 2015
Tiger-Sul introduces this next generation sulphur-bentonite product with a proprietary activator – ensuring farmers have a well-balanced nutrient replacement program. Read More
Crop InputsH.J. Baker Expands China Sales Force
January 21, 2015
Global Agricultural firm H.J. Baker announced that sales veteran Shi Dongshen has joined their Shanghai office in China. This newest hire follows the recent opening of their Lianyungang Sulphur Bentonite Plant. Read More
CropLife 100CHS Partners With Northern Partners Coop On Fertilizer …
January 21, 2015
In addition, the two companies will form a joint venture to build and operate a grain barge loading facility that will handle corn, soybeans and wheat for export through the CHS terminal at Myrtle Grove, LA. Read More
Matt Hopkins5 Bold Predictions For Ag Retail In 2015
January 21, 2015
This past year was filled with ups and downs for the nation’s top ag retailers, but what will 2015 have in store? Read More
SoftwareDeere Launches App Center
January 20, 2015
The John Deere App Center provides users the ability to search and find apps most useful to their business or operations. Read More
Crop InputsNew Syngenta Herbicide Approved In Soybeans, Sunflowers
January 20, 2015
Syngenta will sell BroadAxe XC herbicide in 2015 for use on soybeans, sunflowers and dry peas Read More
CropLife 100Wilbur-Ellis Move To Colorado Complete
January 20, 2015
Wilbur-Ellis Co. announces the opening of its new Agribusiness Division location in the Denver, CO, Metro Area. The new facility will host key personnel as the company shifts the base of its Agribusiness operations from California to Colorado. Read More
Crop InputsNovozymes Sales Figures Up For 2014
January 20, 2015
Novozymes announces its sales growth in 2014 was in line with expectations as sales grew by 7% compared with 2013. Read More
CropLife 100United Suppliers, McGregor Co., Five Others To Form Ali…
January 20, 2015
These companies will continue to operate as independently owned and operated businesses, however, their crop protection divisions will now be formally aligned under the umbrella of Aligned Ag Distributors. Read More
Eric SfiligojGMO Or DNA? LOL Or WTF?
January 19, 2015
A new survey finds the American public seems generally confused when it comes to any three-letter descriptor for their food. Read More
FertilizerAGROTAIN Wins No-Till Product Of The Year Again
January 19, 2015
This marks the 10th straight year AGROTAIN nitrogen stabilizer has been named the top product in this category; no other product has matched this honor Read More
FertilizerTFI President To Give Update On Nutrient Management Eff…
January 19, 2015
The Fertilizer Institute President Chris Jahn will give the keynote address at the 2015 Ohio AgriBusiness Association Industry Conference February 4. Read More
Seed/BiotechUnderstanding The Role Of Seed Enhancers In Seed Treame…
January 17, 2015
Seed enhancers such as polymer play a key part in helping to improve germination, seed growth or accuracy of planting. Read More
Crop InputsUSDA Signs Off On Dicamba-Tolerant Trait In Cotton, Soy…
January 16, 2015
A registration decision by EPA for BASF's Engenia herbicide is anticipated to follow the dicamba-tolerant trait deregulation milestone. Read More
CropLife 100Bozeman Named SEEDWAY Chief Operating Officer
January 16, 2015
He succeeds Donald Wertman, who will retire at the end of August 2015 after 40 years with the GROWMARK subsidiary. Read More
Crop InputsDan Clinker Joins Monty’s Sales Team
January 16, 2015
Monty's Plant Food Co. has hired Dan Clinker as a Product Consultant and Sales Support Representative for the Central Ohio region. Read More