Farmers, ranchers and cooperatives across the United States will share in a record $421 million disbursement from CHS Inc., marking the largest cash return ever by a U.S. cooperative.
"This cash distribution represents the value of being a cooperative owner and customer," said Jerry Hasnedl, CHS board chairman and a St. Hilaire, Minn., farmer. "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."
The cash return to owners is based on record CHS net income of $961.4 million for the fiscal year ending Aug. 31, 2011.
The distribution beginning this month to 1,060 member cooperatives and 45,500 individual members and others includes cash patronage paid on their fiscal 2011 business with CHS. CHS is also distributing to member cooperatives cash as redemption of equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2012 and will also pay quarterly dividends to owners of CHS preferred stock.
Since its creation in 1998, CHS has returned more than $2.5 billion in cash to its agricultural producer and member cooperative owners.
Patronage is based on business done with CHS by member-owner cooperatives and individual farmers and ranchers during fiscal 2011, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years.
In Minnesota, 12,369 member-owners will receive $93.3 million.