CHS to build new elevator facility in Herman, Minnesota

Pictured: Members of the local CHS board and staff members pose during a ceremonial groundbreaking event at the site of the new facility

CHS recently announced the decision to build a new, state-of-the-art elevator facility at its Herman location. The build will supplement the current elevator in town and will sit at a site north of the CHS agronomy center. Construction is projected to start in August 2019 with the project finalized and ready to receive grain for harvest in September 2020. 

“CHS has been part of our community since 1909, when the Herman Market Company was founded,” says General Manager Jerry Kramer. “In building this new grain facility in our town, we look forward to supporting our community and area farmers for hopefully another 110 years.”

The new facility will add 1.4 million bushels of upright concrete storage with three dump pits and an RFID card system for quick and efficient grain delivery for farmers. Grain-receiving capacity at the site will be up to 75,000 bushels per hour. Kramer says that while the new site will have the size and scale to handle the majority of the cooperative’s bushel receipts, CHS will continue to operate the downtown grain elevator to create the quickest delivery experience for growers during the heat of harvest and other key delivery times. Combined storage with the two sites will reach 3.4 million bushels, with five dump pits with receiving capacity over 100,000 bushels per hour.

The Herman-based retail business delivers agronomy, energy and grain products and services to Minnesota and South Dakota ag producers and other customers from locations in 12 communities. It is part of CHS Inc., a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, 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 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, 2018. 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.

New app puts CHS activity at your fingertips

farmer loggin in to MyCHS

Time. We never seem to have enough of it.  And every new tech tool seems to just add another online destination with a singular purpose. But not for CHS patrons. With a simple single sign-on, producers can see their CHS business activity all in one place, even if they have multiple accounts. Contracts, bookings, prepays, scale tickets, payment history and more for agronomy, energy, grain and seed business can be viewed, sorted – even downloaded – from anywhere, anytime. All from one, web-based app: MyCHS.

The biggest advantage? Saving time. CHS transactions are a touch away – whether in front of a laptop in a farm office, on a tablet in the field or on a phone in the tractor cab.

“I can customize what I can see,” says Lucas Goodwin, Minnesota farmer and MyCHS user. “Filtering is easy. And navigating between all the separate components, like the contracts and the settlements, is logical and quick.”

Lucas was among a group of CHS customers picked to give app feedback in small focus groups and then as a beta user, comparing the new MyCHS with the former Customer Resources tool. Getting customer feedback early and ongoing during the development process was critical to making sure the web-based app fit the way today’s farmer wants to use technology.

“It’s a nice upgrade,” he concludes of MyCHS. He was a user of the former application. The recent upgrade provides all producers doing business with CHS with the data they need to make timely, information-rich decisions.

“Our CHS producers have continued to advance and look for ways to become the best they can be in some of the toughest markets they’ve experienced,” says Megan Schmit, director, Grain Procurement for CHS Country Operations division. “Even our producers who may not have called themselves tech savvy are using more and more tools to better their operation and MyCHS is giving them access to their total business with us, not just grain.”

Megan was part of the CHS team helping connect with farmers and finding out what would serve their information needs.

“I’m excited that we’re not stopping here,” she adds. “We’re going to continually take feedback from our producers and employees to keep improving and enhancing this tool for years to come.”

MyCHS is a free web-based app, available to any farmer or rancher doing business with CHS. It’s easy to register here and start seeing what MyCHS can do to help you.

CHS reports $54.6 million of net income for third quarter of fiscal 2019

Company reports net income of $650.9 million for first nine months of fiscal year

CHS Inc. today announced its financial results for the third quarter and the first nine months of fiscal year 2019.

CHS reported:

  • Net income of $54.6 million for the third quarter of fiscal 2019 compared to $181.8 million for the restated third quarter of fiscal 2018. One-time pre-tax gains of $124.1 million in the restated third quarter of fiscal year 2018 were not realized in the same time period in fiscal 2019. One-time pre-tax gains of $19.2 million related to the purchase of the remaining 75 percent share of West Central Distribution, LLC were realized in the third quarter of fiscal 2019.
  • Consolidated revenues of $8.5 billion for the third quarter of fiscal 2019 compared to $9.1 billion for the restated third quarter of fiscal 2018.
  • Net income of $650.9 million for the first nine months of fiscal 2019 compared to $535.5 million for the restated first nine months of fiscal 2018, an increase of 21.5 percent.
(more…)

Top way to keep water out of your diesel

By Steve Hinds, Senior Business Development Manager, CHS Refined Fuels Marketing from the Cenexperts blog

diesel powered tractor in a corn field

Incompatible people are often said to mix like oil and water. But if you really want to talk about an unfortunate combination, look no further than fuel and water. Water in a machine’s fuel line can be a one-way ticket to trouble.

The good news about water damage is it’s preventable. Here’s what you need to know about diesel fuel water contamination and how to keep it from sinking your operation.

(more…)

Ready for Change

By Annette Bertelsen, from Spring 2019 C magazine

What happens when the world’s biggest buyer suddenly backs away from U.S. soybeans? That’s been a question on everyone’s mind since July 6, 2018, when the United States implemented China-specific tariffs. The move embroiled U.S. farmers and cooperatives in a trade war that hit the soybean world particularly hard. Spring USDA data shows 2018–2019 soybean export inspections down nearly 34 percent from the year before, with farms and cooperatives struggling to handle huge carryover and reduced cash flow.

(more…)

Use Three Points of Contact When Climbing Ladders

Safety for our staff and member-owners is of the utmost importance to the team at CHS Prairie Lakes. Read below to learn more about how to safely climb ladders and up equipment.

Three Points of Contact

The safest way to mount and dismount vehicles, equipment, and ladders is to maintain three points of constant contact. That means one hand and two feet, or two hands and one foot – at all times. Anything less and you’re risking a fall. 

Proper form for climbing up equipment.

Tips for Using the THREE POINT System:
– Always face towards the equipment.
– Get a firm grip on the rails or handles.
– Look for obstacles on the ground before exiting.
– Mount and dismount when the equipment is stopped.
– Break the three-point contact only when you reach the ground, cab, or platform.
– Slow down and take extra care in wet, snowy, or icy weather.
– Avoid wearing loose or torn clothing that can catch on the equipment.
– Wear shoes with good support.

Common Mistakes to Avoid:
– Never jump – you may land off balance or on an uneven surface and fall.
– Don’t climb down with something in your free hand – put it on the vehicle floor and reach up for it when you get to the ground.
– Don’t use tires or wheel hubs as a step surface.
– Don’t use the door frame or door edge as a handhold.

See this and other seasonally-relevant safety tips on our website!

Meet Our 2019 Interns

Get to know members of our 2019 summer intern team below. The group started mid-May and will be with us until August, where all are returning to college to pursue a degree in their selected fields. We wish them all the best this summer and hope they learn a lot to utilize in their future careers!

© 2019 CHS Inc.