February 25, 2016

CHS returns US$519 million to owners

Farmers, ranchers and cooperatives across the US will share in an estimated US$519 million cash distribution from CHS Inc., the country's leading agricultural co-op and a global energy, grains and foods company.

The distribution ranks among the largest in CHS' history and extends a five-year record of significant cash returns to owners.

David Bielenberg, chairman of the CHS Board, said the 2016 cash returns to owners demonstrate the co-op's commitment to maintain a strong financial foundation, providing economic returns to its owners and continuing to invest in the company's future.

"The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a unique benefit of a cooperative business," said Bielenberg. "This cash return is added value that enables farmers, ranchers and member cooperatives to invest in their own futures and in the communities where they live."

The 2016 cash return to owners is based on CHS' net income of US$781 million for the fiscal year ending August 31, 2015. Between fiscal 2012 and 2016 (based on fiscal 2011 - 2015 earnings), CHS had distributed a total of US$2.7 billion in cash, a US$544 million annual average.

Beginning this month, the distribution will be directed to about 1,100 member cooperatives and approximately 50,000 individual members. It consists of patronage paid on business conducted with CHS in fiscal 2015.

During fiscal 2016, CHS will also redeem previously earned equity to eligible member cooperatives and individual members, as well as pay quarterly dividends on its five classes of CHS preferred stock.