CHS owners elected three new board members and re-elected five others to the CHS Board at the 2017 CHS Annual Meeting Dec. 7-8. 

CHS elects directors at 2017 CHS Annual Meeting

With a pledge and priority to strengthen relationships in 2018, CHS kicked off its annual cooperative meeting in Minneapolis, Minn., on Dec. 7. The two-day annual meeting was filled with networking, educational sessions, board and management reports, and director elections.

“Strengthen and grow: These words represent so much more than an annual meeting theme. This is a priority that we have. It captures how we will operate our company moving forward,” said CHS Board Chairman Dan Schurr, an Iowa farmer, during the general session.

With approximately 2,200 owners in attendance, Jay Debertin, CHS president and CEO, promised that strengthen and grow, which has been a focus of CHS for 85 years, will continue to be the cooperative’s focus for a long time to come - just as it has been the driving force behind local cooperatives.

The business meeting featured regional caucuses; board, financial and management reports; and company governance with an open question-and-answer session.

In conjunction with the 2017 CHS Annual Meeting, 110 young producers, nominated by cooperative partners in 11 states, attended the CHS New Leaders Forum. Both crop and livestock operations were represented with nearly half (44 percent) managing more than 2,000 acres. Two participants already serve on local cooperative boards and 85 percent of the others expressed interest in serving on a local board in the future.

CHS New Leader Forum participants had the opportunity to network with other future ag leaders, learn about and practice strategies for effective leadership and communication, and learn more about CHS and related businesses.

Find pictures from the 2017 CHS Annual Meeting on the CHS Flickr page, watch video featuring local cooperatives, and read the 2017 CHS Annual Report here.

2017 officer slate elected

CHS owners elected farmers from Illinois, Minnesota and Washington, and re-elected five other farmers to serve terms as directors of the CHS Board. CHS directors must be full-time farmers or ranchers to be eligible for election to the 17-member board.

Newly elected Director Scott Cordes of Wanamingo, Minn., succeeds Curt Eischens of Minneota, Minn., who had served on the board since 1990. With his brother and nephew, Cordes operates a 1,000-acre corn and soybean farm. He received his bachelor's degree in agricultural economics from the University of Minnesota and previously served as the president of CHS Hedging.

Newly elected Director Tracy Jones of Kirkland, Ill., succeeds Greg Kruger of Eleva, Wis., who had served on the board since 2008. Jones, who operates a corn, soybean and wheat farm, and also finishes 1,400 head of feedlot cattle annually, has been chairman of the CHS Elburn Producer Board since 2011.

Newly elected Director Russ Kehl of Quincy, Wash., fills the final year of a three-year term previously held by David Bielenberg, who resigned in June 2017. Kehl raises potatoes, dry beans and other crops on a 12,000-acre farm. A director for CHS Connell Grain (now CHS SunBasin Growers) since 2004, Kehl also operates a dry bean processing facility and cow-calf operation.

Re-elected were C.J. Blew, Castleton, Kan.; Jon Erickson, Minot, N.D.; Edward Malesich, Dillon, Mont.; Perry Meyer, New Ulm, Minn., and Dan Schurr, LeClaire, Iowa.

Following the annual meeting, the CHS Board re-elected Schurr to a one-year term as chairman. Other directors selected as officers for 2018 were:

  • J. Blew, first vice chairman
  • David Johnsrud, Starbuck, Minn., secretary-treasurer
  • Jon Erickson, second vice chairman
  • Steve Riegel, Ford, Kan., assistant secretary-treasurer

 

The three new board members were (l. to r.): front - Scott Cordes, Wanamingo, Minn., Tracy Jones, Kirkland, Ill., and Russ Kehl, Quincy, Wash.; back – Perry Meyer, New Ulm, Minn., Edward Malesich, Dillon, Mont., Jon Erickson, Minot, N.D., Dan Schurr, LeClaire, Iowa, and C.J. Blew, Castleton, Kan.

 

Ag News

CHS reports fiscal year-end results, announces FY 2018 priorities

 CHS reports fiscal year-end results, announces FY 2018 priorities

CHS Ag Services Twitter

 
 Market Snapshot

CHS reports $180.1 million first quarter earnings for fiscal 2018

 CHS reported net income of $180.1 million for the first quarter of its 2018 fiscal year (three-month period ended Nov. 30, 2017), compared to net income of $209.2 million for the same period a year ago.

Consolidated revenues for the first quarter of fiscal 2018 were $8.0 billion, the same as fiscal 2017. Pretax income was $199.6 million and $225.6 million for the first quarter of fiscal 2018 and 2017, respectively.

“Despite challenging market conditions, CHS experienced a solid first quarter thanks to our continued focus on three key priorities: strengthening relationships, sharpening operational excellence and restoring financial flexibility,” said CHS President and Chief Executive Officer Jay Debertin. “In the first quarter, we recorded solid earnings from our businesses and reduced long-term debt. These actions are helping to strengthen and grow CHS.”

For the first quarter of fiscal 2018, reporting segment results were:

Energy

  • Energy generated pretax income of $113.1 million during the first quarter, compared to $70.0 million during the same period last year.
  • The $43.1 million increase was primarily driven by improved margins within refined fuels.

Ag

  • The Ag segment, which includes domestic and global grain marketing and crop nutrients businesses, renewable fuels, local retail operations, and processing and food ingredients, generated pretax income of $74.5 million for the three months ended Nov. 30, 2017, compared to $109.2 million for the same period the previous fiscal year. 
  • The $34.7 million decrease was primarily the result of lower margins in grain marketing, processing and food ingredients and renewable fuels. Lower volumes in grain marketing and processing and food ingredients also contributed to the decrease.
  • The decrease was partially offset by an increase in earnings in the crop nutrients and country operations businesses.

Nitrogen Production

  • This segment is comprised of the company’s investment in CF Industries Nitrogen, LLC (CF Nitrogen), and generated pretax income of $5.7 million during the first quarter of fiscal 2018, compared to $27.0 million during the same time in fiscal 2017.
  • The decrease in earnings was primarily due to a gain of $29.1 million from an embedded derivative associated with CF Nitrogen that was recognized in fiscal 2017. There was no comparable gain in the current fiscal year.
  • This decrease was partially offset by higher urea and urea ammonium nitrate prices.

Food

  • This segment is comprised of the company’s investment in Ventura Foods, LLC (Ventura Foods), and generated pretax income of $1.0 million in the first quarter of fiscal 2018, compared to $10.6 million during the same period of fiscal 2017.
  • The decrease in earnings was due to lower margins at Ventura Foods.

Corporate and Other

  • This category is primarily comprised of the company’s wheat milling joint venture and its financing, hedging and insurance operations, and generated pretax income of $5.3 million in the first quarter of 2018, compared to $8.7 for the same period of fiscal 2017.
  • The decrease in earnings was due to lower earnings from the wheat milling joint venture and less interest revenue due to amending a receivables securitization agreement in late FY17, pursuant to which we no longer receive interest income from those receivables.

CHS Inc. Earnings millions $

  For the THree Months Endeed Nov. 30,

  2018 (fiscal year) 2017 (fiscal year) 
Energy $113.1 $70.0
Ag 74.5 109.2
Nitrogen Production 5.7 27.0
Foods 1.0 10.6
Corporate and Others 5.3
8.8
Income before income taxes 199.6 225.6
Income Taxes (19.9)
(16.6)
Net income 179.7 209.0
Net income attributable to non-contorlling interests 0.4
.02
Net income attributable to CHS Inc. $180.1 $209.2

CHS announces equity management decisions 

At its September 2017 meeting, the CHS Board of Directors made a number of decisions regarding equity management. Read more about those decisions here.

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