ST. PAUL, MINNESOTA, U.S. — Farmers, ranchers and cooperatives across the U.S. will share in an estimated $433 million cash distribution from CHS Inc. The distribution is the second largest 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, U.S., 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.
"Our objective is to make sure we're not only providing the products, services and marketing opportunities they need today, but also investing in what they'll need tomorrow, all while maintaining a financially strong company," he said.
The 2014 cash return to owners is based on CHS net income of $992.4 million, the company's second highest on record, for the fiscal year ending Aug. 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 $3.5 billion in cash to its agricultural producer and member cooperative owners, more than $1 billion of that in its 2013 and 2014 fiscal years.
Sign up for our free newsletters From daily reports on breaking news to weekly updates, World Grain has the grain, flour and feed industries covered. |
Subscribe |