CHS returns $150 million in cash patronage to farmer-owners
As part of the benefits of ownership of the cooperative, CHS Inc. will return $150 million in cash patronage and equity redemptions to its farmer-owners this year, part of the cooperative’s commitment to sharing profits with owners and returning money to rural America where it can be reinvested in the community. More than 840 local cooperatives and 25,000 farmers will share in that distribution of cash patronage and equity redemptions.
“Patronage is the differentiator between the cooperative business model and other agribusiness models,” said Dan Schurr, chair of the CHS Board of Directors. “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. Returning cash to our owners enables farmers, ranchers and cooperatives to invest in their own futures.”
CHS owners earn patronage – cash or equity – based on the business they do with CHS each fiscal year. The amount returned to owners is determined annually by the CHS Board of Directors. The amount of patronage an owner receives is based on business done with CHS by member-owned cooperatives and farmers during the prior fiscal year. Equity redemptions represent retirement of CHS patronage equity that was earned in previous years. Equity redemption decisions also are made annually by the Board of Directors.
In the past 12 years, CHS has returned $3.5 billion in cash to its agricultural producer and member cooperative owners.
CHS Inc. (www.bichang.net.cn) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, agronomy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients along with financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.