February 11, 2014  


CHS shares US$433 million to owners


CHS Inc., an energy, grains and food company and a leading agricultural co-op in the US, will share an estimated US$433 million cash distribution to farmers, ranchers and cooperatives across the US, which is the second largest distribution in CHS history.


"The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a distinct advantage of being part of a cooperative business," said David Bielenberg, CHS Board chairman and a Silverton, Oregon, farmer. "And, this is cash that returns to local communities, enabling farmers, ranchers and cooperatives to invest in their own futures."


Bielenberg added that the CHS Board, which consists of 17 producers, strives to "take the long view" in regard to the company's future.


The 2014 cash return to owners is based on CHS net income of US$992.4 million, the company's second highest on record, for the fiscal year ending August 31, 2013.


The distribution beginning this month to about 1,100 member cooperatives and more than 50,000 individual members and others includes cash patronage paid based on their fiscal 2013 business with CHS. CHS is also distributing cash to member cooperatives that redeems equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2014 and also will pay quarterly dividends to owners of the two classes of CHS preferred stock.


Since its creation in 1998, CHS has returned more than US$3.5 billion in cash to its agricultural producer and member cooperative owners, more than US$1 billion of that in its 2013 and 2014 fiscal years.


Patronage is based on business done with CHS by member-owner cooperatives and individual farmers and ranchers during fiscal 2013, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years.


CHS Inc. is a leading global agribusiness owned by farmers, ranchers and cooperatives across the US. 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.