CHS Makes Largest Cash Return Ever by a U.S. Cooperative

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CHS Makes Largest Cash Return Ever by a U.S. Cooperative


ST. PAUL, Minn. -- Business is good at CHS Inc. The energy, grains and foods company, which today is the largest cooperative business in the United States, will return $600 million to its farmers, ranchers and cooperative owners -- the largest cash return ever made by a U.S. cooperative.

"One of the most important ways we help our producer and co-op owners is by delivering an economic return on the business they do with us," said David Bielenberg, CHS board chairman and a Silverton, Ore. farmer. "This, along with the quality energy and crop inputs, crop marketing and services we provide year-round, underscores the added value of being a cooperative system owner and customer."

According to a press release issued by CHS, the company had a record net income of $1.26 billion for the fiscal year ended Aug. 31, 2012. CHS will distribute the cash beginning this month to nearly 1,200 member cooperatives and nearly 50,000 individual members based on their fiscal 2012 business with CHS. Member cooperatives will also receive cash to redeem equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2013 and pay quarterly dividends to owners of CHS preferred stock.

Founded in 1998, CHS has returned more than $3.1 billion in cash to its agricultural producer and member cooperative owners; $1 billion of that was returned in the 2012 and 2013 fiscal years.

CHS is owned by farmers, ranchers and cooperatives across the country. The company supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, as well as business solutions including insurance, financial and risk management services. CHS also operates petroleum refineries and pipelines, and manufactures, markets and distributes the Cenex fuel brand.