Area producers share in local CHS patronage distribution

HERMAN, MINNESOTA, April 8, 2019 – Eligible farmer-owners of CHS Border States and CHS New Horizons, two retail businesses that consolidated on Sept. 1, 2018, and now form the CHS retail business based out of Herman, Minnesota, shared in the recent distribution of cash patronage and equity based on business done with the co-op.

“We’re extremely proud to share this important cooperative membership benefit with our customers,” said Jerry Kramer, general manager. “Delivering an economic return to them on the business they do with CHS is one more way we help our owners grow.”

CHS Border States allocated a total of $1,515,071.64 in patronage dividends to its eligible members based on business done Sept. 1, 2017 – Aug. 31, 2018, of which $267,713.25 is being paid out in cash. CHS New Horizons allocated a total of $2,215,658.20 in patronage dividends to its eligible members during that same time period, of which $592,958.38 is being paid out in cash.

Overall, CHS Inc. will return $150 million in cash patronage and equity redemption to its owners in 2019, part of the cooperative’s commitment to sharing profits with our owners and returning money to rural America where it can be reinvested in the community. More than 840 local cooperatives and 25,000 farmers share in this distribution of cash patronage and equity redemptions.

The percentage returned to owners is determined annually by the CHS Board of Directors.  

“Returning cash to our owners enables farmers, ranchers and cooperatives to invest in their own futures,” said Dan Schurr, chairman of the CHS Board.

In the past 12 years, CHS has returned about $3.5 billion to its owners in the form of cash patronage.

The Herman-based retail business delivers agronomy, energy and grain products and services to Minnesota and South Dakota ag producers and other customers from 19 locations. 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.

CHS supports hometown community safety initiative through donation to Ortonville Fire Department


Chuck Henningson, Kirby Athey & Jared Nordly

Herman, MN (May 2, 2019) – CHS announced a $1,550 grant to Ortonville Fire Department in Ortonville, MN. The funds supported the purchase of a gas meter, which will be used to assist responders during rescue calls. The gas meter is a hand-held sensor that is used to alert if there is a propane or natural gas leak and to confirm safe oxygen levels.

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

The funds contributed by CHS were matched dollar for dollar by a CHS Seeds for Stewardship grant, which helps cooperatives grow their impact locally. Together, $1,550 will benefit Herman Fire Department.

“Cooperatives were founded on the principles of education, community involvement and cooperation,” says Nordly. “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 Browns Valley, Chokio, Clinton, Donnelly, Fergus Falls, Herman, Milbank, Morris, Ortonville, Sisseton, Underwood & Wilmot, CHS is here to supply for your needs. For more on what’s new and to learn more about how our company gives back, visit us at www.chs-herman.com, like us on Facebook and follow us on Twitter.

Check for underground utilities before digging

Whether your spring to-do list includes building a fence or planting trees – breaking ground should always be done with caution. April is National Safe Digging Month so remember, your best line of defense before digging is to call 811, a free service that marks underground utilities and pipelines. Many of these are less than a foot underground. 

The process is simple: Call 811 or visit clickbeforeyoudig.com three days before a digging project, wait for underground utilities to be marked and don’t dig within two feet of those markers.  

digging

It’s best to call 811 any time you break ground, even if you think you know where a utility line is located. “In the U.S., an underground utility is hit every nine minutes, causing dangerous consequences,” says Tina Beach, public awareness specialist for CHS. “It takes a lifetime to build a farm, and it takes just one free call to keep it safe.”  

Herman Fire Department Refreshes Propane Safety Training

Photo credit to Luke Christians, CHS employee

HERMAN, MINNESOTA, April 22, 2019 – Local firefighters in the Herman area will be best prepared to respond to a propane emergency following the propane safety training held last week.

Herman Fire and Rescue held a training on April 15th that included a hands-on propane burn, where members of the department practiced controlling and extinguishing a propane gas fire.  CHS supported the event by donating propane for the burn. 

“At CHS, we spend a significant amount of time and energy ensuring safety for our patrons,” says Dustin Umlauf, Energy Manager with CHS.  “Having the opportunity to support safety initiatives in the community, like this propane release training, is just another way we can ensure propane users in our community are in good hands.”

As a home heat, agricultural, and commercial propane supplier, CHS is proud to support trainings and events like this that bring a greater level of safety to our communities.  With locations in Browns Valley, Chokio, Clinton, Donnelly, Fergus Falls, Herman, Milbank, Morris, Ortonville, Sisseton, Underwood and Wilmot, CHS is here to supply for your needs. For more on what’s new at CHS, visit our website at www.chs-herman.com, find our page on Facebook, and follow us on Twitter.

3 equipment tips to get the most out of a short planting season

Planting Equipment Tips

By Mimi Falkman, senior marketing specialist, CHS Lubricants

Planting season is always a busy time of year on the farm, but it can be especially tight when winter overstays its welcome. A short spring means there’s even less time than usual for farmers to complete some of the most important work of the year.

During a condensed planting season, equipment is under added stress because it needs to work overtime to meet demands. To keep machines protected and operating at peak performance during a shorter spring, farmers can set themselves up for success by preparing their equipment and fluids while the fields are still wet.

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CHS Lumen: Premium Starter Fertilizer

By Andy Clauson, CHS Key Agronomy Specialist

I’d like to introduce CHS Lumen as our newest premium starter fertilizer.  CHS Lumen brings the ideal nutrient ratios to in furrow technology.  With the ideal ratio of N: P being 1:3, CHS Lumen has an analysis of 5-15-3-0.1 Fe- 0.8 Zn.  Along with that ideal ratio of nutrients, CHS has also added in our patent pending Ortho-Ortho EDDHA chelate to make nutrients in the soil like phosphorus and zinc more available to the plant.  The combination of these nutrients and chelate is nothing new to the marketplace, but what makes CHS Lumen unique is the addition of the Hemicellulase enzyme.  Unlike adding microbial products to the tank which can be inconsistent and temperature dependent, the Hemicellulase enzyme is active at all temperatures above freezing.  This enzyme helps make nutrients more available to the plant as well as converting organic matter into simple sugars to kick start the microbial activity in the soil.  Standard use rates in corn and sugar beets are 3 gals/A, in soybeans 1.5 gal/A, and in potatoes 3-5 gals/A.  This is a low salt, seed safe product, but I would recommend mixing some water to get a mix of 5 gal/A or more for coverage.  Contact your local CHS agronomy sales representative with any questions about CHS Lumen.

Cenex Total Protection Plan® pays $23,000 for tractor repair

Herman, Minn farmer benefits from Cenex warranty program

Photo L to R: Mark Severance; Dustin Umlauf, CHS Energy Division Manager & Tyler Nordby

The Cenex Total Protection Plan has been in place for over 50 years. Mark Severance, Herman MN farmer, has been adding his eligible equipment to the program since 2001, around the time when the co-op in Herman began offering the program to its patrons.

Having enrolled nineteen pieces of equipment in the warranty program over the years, Severance is quick to say the program is well worth it.  “We’ve added every piece of equipment that we can [to the program],” says Severance, and over the years he’s filed a few claims.  In April 2019, Cenex Total Protection Program again proved its worth to Severance, when he was awarded a check for over $23,000 to cover the repair expense for the front planetary on one of his tractors. 

The Cenex Total Protection Plan provides peace of mind for farmers, especially during the busiest times of the year.  By using Cenex Ruby Fieldmaster Premium Diesel Fuels and Cenex lubricants, users can get up to 10 years or 10,000 hours of engine and transmission coverage for new equipment (8 years or 8,000 hours on used equipment) as an extension of the original equipment manufacturers’ warranties.  LubeScan® oil analysis fluid sample reports taken regularly through the program also identify internal equipment condition issues early to stay ahead of potential downtime. 

Enrollment in the program is simple, and at $299 for new equipment ($399 for used), the upfront cost is a small price to pay for the value the program provides.  Contact a member of the CHS Energy Department for additional information on this program and how to enroll today.

CHS reports $596.3 million of net income for first six months of fiscal 2019

CHS Income

CHS Inc. reported net income of $248.8 million for the second quarter of fiscal 2019 and $596.3 million for the first six months of fiscal 2019.

“Our strong performance in the second quarter reflects our hard work at serving our owners and other customers better. We’ve refocused on serving our customers and improving our operations, and that has shown positive results in our financials for the first half of fiscal 2019,” said Jay Debertin, CHS president and chief executive officer. “Our performance also reflects the benefit of a diverse platform across business units that serves our cooperative and farmer-owners.”

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Recognize, respect risks associated with grain handling

Grain powers American agriculture. During Stand-Up for Grain Safety Week, March 25 through 29, we want to remind everyone working on farms and in grain-handling facilities to respect and understand the risks associated with working with grain.

“It’s important to continue to work with the industry, our employees and our farmer-owners on the hazards in the grain industry, while stressing safe practices and controls to ensure their safety,” says Matt Surdick, manager, Country Operations Environment, Health and Safety, CHS.

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It Takes Talent to Feed the World

By Nanci Lilja, President, CHS Foundation

When most people think of agriculture, they wonder how we are going to feed the growing population of 9.6 billion by 2050. And while that’s an important question to consider, I find myself thinking more often about the individuals needed to fill the talent pipeline to feed that growing population.

With nearly 4 in 10 agriculture jobs going unfilled each year and the average-age of farmers ever increasing, it’s going to take a pragmatic, creative approach to encourage young people to pursue careers in agriculture.

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© 2019 CHS Inc.