CHS Returns Record $421M to Co-op Members
CHS, Inc., recently announced that it will distribute a record $421 million to farmers, ranchers, and cooperatives across the United States.
The Inver Grove Heights-based energy, grains, and foods co-op claims that the disbursement represents the largest cash return ever by a U.S. cooperative.
More than 12,000 Minnesota farmers, ranchers, and cooperatives will share a $93.3 million disbursement-the largest share of the cash distribution among all states.
The payout was based on CHS' record net income of $961.4 million for its 2011 fiscal year, which ended August 31.
The states that will receive the largest portion of the disbursement are all in the Midwest, where its members are most heavily concentrated. North Dakota will receive $72.3 million, the second-largest sum, followed by Wisconsin ($36.2 million), South Dakota ($32.4 million), and Iowa ($29.5 million).
The distribution began this month; the cash will go to 1,060 member cooperatives and 45,000 individual members of CHS. It includes cash patronage paid on their fiscal year 2011 business with CHS.
CHS is also distributing cash to member cooperatives to redeem equity in the company that they earned in prior years.
“This cash distribution represents the value of being a cooperative owner and customer,” CHS Chairman and St. Hilaire farmer Jerry Hasnedl said in a statement. “Not only do member cooperatives and producers have access to competitive CHS products, crop marketing, and business services throughout the year; they also share in our profits. This allows them to invest in the future of their local businesses, farms and ranches, and rural communities.”
CHS is the largest revenue-producing co-op in the nation. Revenue for its most recently completed fiscal year totaled $36.9 billion.