The Hamberg, North Dakota facility will have 28,000 tonnes of nitrogen, potassium, sulphate, phosphorus and micronutrients storage capacity and product blending capabilities.
The new warehouse will primarily serve farmer-owners of Fessenden Cooperative Association retail business, and CHS will also serve its nearby wholesale customers.
"Future market forces and trends for our region indicate we can expect more corn acres, CRP acres coming back into production, and overall increased fertiliser use to ensure healthy, profitable yields," said Mark Hovland, general manager, Fessenden Cooperative. "Our new, larger and more efficient facility will give area growers better overall fertiliser service and options."
Hovland said the fertiliser warehouse is the second major partnership with CHS. Last year, Fessenden Cooperative and CHS built a greenfield grain shuttle loading facility on the Burlington Northern rail line at Hamberg. "Long-range plans for improved fertiliser capacity and service have long been part of our growth strategy, and we look to CHS to provide global access to a wide array of markets as well as valuable marketing insights and expertise," he said.
Plant construction will begin this summer and is expected to be completed by fall of 2015.
Formed in 1943, Fessenden Cooperative is a farmer-owned grain and agronomy cooperative located in central North Dakota.