Our businesses may have different names, CHS Drayton, Northwest Grain, Mid Valley Grain, AgriValley, Salol Elevators and CHS Ag Services, but our missions are the same; and that is to deliver the best products and services that farmers need to compete in these dynamic times. The business of agriculture seems to have undergone an evolution recently and “risk management” is the new buzz phrase. I am quite sure that if anyone in our business actually had a single bulletproof risk management tool they would use it to change the world. We all know the truth, that there is no single way to ensure a risk free environment. 

 

CHS Ag Services is the newest business within this geography. Our mission is quite simple. Combine the agronomy assets from the existing CHS locations, along with the recently purchased Agriliance facilities in NW Minnesota and St Thomas ND, to create a more efficient company to deliver more services and a better supply plan to our producers.

 

This supply plan is centered around the new 24,000-ton dry fertilizer plant in Warren, MN. We are all quite proud of this new plant and have been please with its operation thus far. Accepting 85 car trains of 11-52-0, 18-46-0 and urea change the way we move fertilizer locally. We will be moving this product out of Warren and to our plants in other locations. With ownership of more plant food centrally located to our outlying facilities, we will be in much better position to supply our territory. 

 

We see many changes globally that will have an impact on our businesses here. First is the globalization of fertilizer markets. The increased acres farmed worldwide coupled with a need for higher protein food, stuffs in developing countries has really pinched our ability to purchase plant food almost without concern of price. Second is the impact of a weak US dollar. This has had as much to do with our ability to compete for tons worldwide as any single thing. Countries with strong currency simply out bid our suppliers for tons.