CHS Considers Merger With N.D. Agribusiness Co-op
CHS, Inc., recently announced that it is considering a merger with Dakota Plains Cooperative—a Valley City, North Dakota-based agribusiness company.
The merger would increase agronomy—a branch of agriculture that focuses on field-crop production and soil management—opportunities in the east-central area of North Dakota, the companies said.
“We are always interested in investments that align with the CHS commitment to helping our farmer-owners grow their businesses,” John McEnroe, the executive vice president of CHS’ Country Operations division, said in a statement.
Inver Grove Heights-based CHS is currently reviewing plans to construct three new fertilizer plants near to where Dakota Plains operates, as well as a fertilizer manufacturing facility in Spiritwood, North Dakota.
Dakota Plains Cooperative, which provides farmers and ranchers with agronomy, seed, feed, and energy services and products from 15 locations in North Dakota, said that the potential merger would connect its members with a well-known, farmer-owned cooperative.
“This merger will allow Dakota Plains to more fully align and partner our growers with the nation’s largest cooperative,” Dakota Plains Cooperative Board President Greg Svenningson said in a statement.
A series of informational meetings for Dakota Plains’ members are scheduled for September to bring more information to area farmers. CHS and Dakota Plains are currently seeking approval from the agribusiness co-op’s members and CHS’ board of directors.
Last month, CHS purchased a 50 percent stake in Agfarm, an Australian grain-marketing company, to enhance its grain-marketing strategy as well as to increase its influence in global agriculture markets.
CHS—a Fortune 100 company owned by farmers, ranchers, and cooperatives across the United States—supplies energy, crop nutrients, grain marketing services, insurance, and financial and risk management services to farmers. It employs approximately 10,000, 2,837 of whom work in Minnesota. For the fiscal year that ended August 31, 2012, CHS reported $40.6 billion in total revenue.