CHS elects directors at 2017 CHS Annual Meeting

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. 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.

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.

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

Marketing 101: Back to the Basics

MARKETING 101: BACK TO THE BASICS

WHEN:
TUESDAY, DECEMBER 12

WHERE:
CHS
23142 HWY 74
ST. CHARLES, MN 55972

TIME:
2:00 PM

Join us for as we go back to the basics of grain marketing.  There will be a review of the basic terminology and key components of a successful risk management plan.  We will also dive into different contracting opportunities available to help achieve higher prices for the grain you work so hard to grow.

Space is limited, so please RSVP to your local grain merchandiser.

Aaron Ulland
Kasson, MN
507-634-7545 ext. 7

Jared Schaefer
Osterander, MN
507-657-2234

Ken Garness
Kasson, MN
507-634-7545 ext. 7

 

Unconscious Bias and the Role of Women in Agribusinesses

By Amy Piersak, market intelligence specialist with CHS

A farmer standing in their field surrounded by the sights and smells of a spring rain. An agronomist analyzing a seeding recommendation. The grain merchandizer settling into a Monday morning at your local cooperative. The animal nutrition specialist you trust to provide the right feed for your animals. Now pause and visualize these people. Who are you picturing?

If you are picturing men in these roles, you are likely experiencing unconscious bias. Humans are only able to consciously process a fraction of the information we receive every second, so out of necessity, our brains have developed the incredible ability to unconsciously process thousands of pieces of information in an instant. While this is invaluable when assessing the threat of a lion in the brush (spoiler: very high), it can cause us to fall prey to biases when envisioning tasks or roles such as those mentioned earlier.

Despite these perceptions, the role of women in agriculture has been steadily evolving. Much of the shift has come from the changing demographic landscape in education. Most colleges of agriculture are posting higher numbers of women seeking ag-related degrees. In the spring of this year, The College of Agriculture at Purdue University posted that 58% of their undergraduate students were women. This is a colossal change from the 1970s when women comprised only 2-5% of their undergraduate population. For comparison, women represented 43% of the total undergraduate students at Purdue University in spring of 2017. In 2017, the College of Agriculture and Life Sciences at Iowa State reported 52% of their undergraduates are women. Like Purdue University, Iowa State University reported that of their undergraduate students, 43% were women.

As women are obtaining more degrees in areas related to animals, animal behaviors, entomology, botany, plant sciences, and environmental sciences compared to men, the implications on the “typical candidate” will be significant. It is worth noting that these degrees are considered STEM (science, technology, engineering, and mathematics) degrees. Women have historically been underrepresented in STEM degrees, and agriculture is a leading area of growth on that front.

Unfortunately, the gains in education are not as well represented in the working world. The United States Department of Labor reports that women represented 47% of the workforce in 2016. Which remains relatively unchanged from the last 20 years. When we look at agribusinesses and local agricultural cooperatives, the percentage of women in the workforces drop to 32% and 22% respectively.

So where does that leave us? We have a growing number of qualified candidates, and yet a top 5 challenge identified by agribusiness leadership is the availability of qualified talent. How do we bridge this gap? A great place to start is for both sides to begin watching out for their biases, and working proactively to compensate for them. This simple change will help expand a talent pool that is perceived to be constrained, and increase career opportunities for members of your local community.

This article was originally published on AgCareers.com.

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

CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, today reported net income of $127.9 million for the fiscal year ended Aug. 31, 2017, compared to net income of $424.2 million for the fiscal year ended Aug. 31, 2016. Consolidated revenues totaled $31.9 billion for fiscal 2017, approximately a five percent increase over consolidated revenues of $30.3 billion for fiscal 2016. (more…)

The Fall Versus Spring Nitrogen Debate

Nitrogen management is critical for growing healthy corn and farmers are sensitive to their role in helping build a more sustainable world. They are faced with the often-daunting question of whether fertilizer applications can be both profitable and sustainable. Often, the delicate balancing act begins with the decision of whether to apply N in fall or hold off until spring.

BMPs and the 4Rs

Corn producers understand there is no blanket practice. There is, however, a disciplined application approach that has long proven effective.

“When we talk about sustainability in agriculture, specifically as it relates to nutrient management, it really goes back to a foundation of best management practices (BMPs) in conjunction with the Fertilizer Institute’s 4R Program,” says Eric Scherder, field scientist, Ph.D., Dow AgroSciences, from Huxley, Iowa. “We can address some of the challenges we’re facing with nitrogen leaching and surface application runoff more effectively using this approach.”

As most growers are aware, the 4R program is a concept to help them select the right fertilizer source at the right rate, at the right time, with the right placement. While source, rate and placement are important, often the most scrutinized decision — both from an economic and sustainability standpoint — is timing. (more…)

CHS announces equity management decisions

At its September meeting, the CHS Board of Directors made a number of decisions regarding equity management. The following letter from CHS Board Chairman Dan Schurr outlines these decisions:

Dear Cooperative Owner,

CHS was built on the shared values of managing our business with the highest integrity, building lasting and mutually rewarding relationships, and partnering for our collective success.

These values guide every decision your CHS Board of Directors makes on your behalf. Thanks to the dedication and hard work of those owners and employees that came before us, CHS is a cooperative that’s been built for the long haul. Your Board of Directors will ensure that tradition continues. It’s with this spirit that we share recent Board decisions around equity management.

Despite solid performance in our core businesses, a few large events have resulted in substantial fiscal 2017 financial losses in certain patronage-based businesses. These events included a loss attributed to a large producer loan and business unit asset impairments in the United States.

It has been the Board’s practice to offset patronage-sourced operating losses against the income in patronage allocation units. This practice will continue for fiscal year 2017, with some modification due to the size of the operating losses. Specifically, some of these patronage-based business operating losses will be offset against patronage income from specific allocation units and some will be offset against the unallocated capital reserve. In addition, the CHS Board made the following patronage-related decisions at its September meeting:

  • The CHS Board will retain 10 percent of patronage-sourced earnings to the unallocated capital reserve, as in years past.
  • CHS will issue non-qualified equity certificates for FY17 patronage-based earnings. No cash patronage will be issued in 2018 based on FY17 performance.These non-qualified equity certificates will be included in the equity revolvement program and will be redeemed at the discretion of the CHS Board. Non-qualified equity certificates are generally not taxed until redeemed.
  • The CHS Board has designated a $10 million cap for individual member redemption for estates and age 70 retirements, per the established redemption policy. No member-cooperative equity will be redeemed in 2018. The Board will continue to review equity retirements on a quarterly basis.
  • Eligible CHS owners will share in the benefit of unused IRS Sec. 199/DPAD deductions. 

These decisions were not made lightly and came after much discussion and assessment about how best to serve CHS and all of our owners for the long term.

While CHS experienced a challenging year, we are taking necessary steps to restore financial flexibility and minimize operational risk to ensure a strong future for our owners.

Your CHS Board of Directors remains committed to serving you. Your continued business is vital to the strength and growth of CHS, and is greatly valued. If you have questions specific to your equity, please feel free to contact CHS Patron Equities at 800-328-6539, ext. 6124.

Sincerely,
Dan Schurr
Chairman, CHS Board of Directors

Local students receive CHS Foundation scholarships to pursue careers in agriculture

The CHS Foundation, funded by charitable gifts from CHS Inc., is committed to developing the next generation of leaders in agriculture. As part of the foundation’s work centered on advancing agriculture education, it has awarded scholarships to 14 Minnesota high school graduates. The Minnesota students are among 100 students representing 23 states and Canada. Each will receive a $1,000 scholarship to cover expenses associated with their freshman year of college.

“The success of our hometown communities and rural America depends on students with a strong interest in agriculture to pursue ag-focused degrees and be the innovators to feed the world into the future,” says Nanci Lilja, president, CHS Foundation. “We’re pleased to recognize these students with scholarships and join their communities in looking forward to the important contributions they’ll make to the ag industry.”

These Minnesota high school students are among the 2017 CHS scholarship winners:

Erica Earley, Wykoff, Minn.; Northeast Iowa Community College; Agriculture Business and Beef Science

Jacey Edlin, Jackson, Minn.; South Dakota State University; Agricultural Education

Mikayla Erf, Oakdale, Minn.; University of Minnesota, Twin Cities; Animal Science

Dillon Gratz, Atwater, Minn.; South Dakota State University; Dairy Science

Kylee Kohls, Litchfield, Minn.; South Dakota State University; Agriculture Education, Communications & Leadership

Adam Kroll, Royalton, Minn.; North Dakota State University; Ag Economics

Holly Larson; Medford, Minn.; South Dakota State University; Agricultural Education

Madeline Patterson, Kenyon, Minn.; North Dakota State University; Agricultural Communication

Kourtney Pederson, Farmington, Minn.; Iowa State University; Agribusiness

Joshua Schlumpberger, Bowlus, Minn.; University of Minnesota, Twin Cities; Computer Science

John Toelle, Brown’s Valley, Minn.; North Dakota State College of Science; Farm Management

Jared Troendle, Lanesboro, Minn.; South Dakota State University; Agricultural Business

Madeline Weninger, Buffalo, Minn.; South Dakota State University; Agricultural Education

Sierra Williamson, Sherburn, Minn.; University of Minnesota, Twin Cities; Agricultural and Food Business Management

An independent, external committee selected recipients based on their career goals, essays, extracurricular involvement, transcripts and reference letters.  In addition to high school scholarships, the CHS Foundation funds an additional 200 scholarships for students enrolled in an agricultural-related program at colleges across the country.  These scholarships range from $1,000 to $2,000 and are directly administered by more than 30 CHS partner schools.  Click here for more information.

About the CHS Foundation

The CHS Foundation is funded by charitable gifts from CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company. As a part of the CHS stewardship focus, the CHS Foundation supports organizations that develop future leaders for agriculture through education and leadership programs, improve agricultural safety and enhance community vitality in rural America. Learn more at chsinc.com/stewardship.

Grain Market Update 9.13.17

Market Snapshot:

For those of you who haven’t seen the numbers, Tuesday’s USDA report was surprisingly bearish, yet again.  Yields and production for both corn and soybeans were raised again this month.  Just like last month, the market was expecting a friendly report with lower yields based on less than stellar crop conditions.  Unfortunately, with the market caught leaning the wrong way, we saw a rather dramatic collapse after the report.  At the end of the day, both commodities managed to recover some of the initial loses with corn closing down six and beans down nine.  One of the key points from the report yesterday, the USDA numbers may not be right now but the potential for corn yield to drop dramatically, is diminishing.  Until a new source or huge increase in demand shows up, corn prices are going to struggle.

Harvest is starting to progress through the corn belt with some local activity reported in isolated areas.  In our trade territory it seems beans are anywhere from 10 days to three weeks away from maturity.  Corn will need all the time it can have to finish.  This week’s heat should help the process immensely.  So far the end users have not shown any signs of being concerned over a late harvest start.  Bean plants are still showing a mild inverse for quick ship bushels, but nothing as dramatic as seen in years past.  The bigger carries are shown from October to November at the river terminals.  If you have the ability to hold beans for even a couple of weeks until corn harvest starts, at this point it appears the market will compensate you for the extra handle.  The ethanol plants are still showing significant carry from spot delivery to October.

  9/12/17 Pre-report range of estimates Previous Estimate Change Market Impact
Corn Production (bil bu.) 14.184 13.878 – 14.249 14.153 + 31 million BEARISH
Corn Yield (bu/ac) 169.9 166.7 – 170.9 169.5 + 0.04 BEARISH
Bean Production (bil bu.) 4.431 4.179 – 4.417 4.307 + 124 million BEARISH
Bean Yield (bu/ac) 49.9 47.1 – 49.8 49.4 + 0.05 BEARISH

Read Full Market Update

 

Aaron D. Ulland

 

Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234

This Material has been prepared by a sales or trading employee or agent of CHS and should be considered a solicitation.  The information contained in this presentation is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only.  There is a risk of loss when trading commodity futures and options.  CHS bases its recommendations solely on the judgment of CHS personnel.

Grain Market Recap 9.11.17

Market Snapshot:

Mixed trade to start the week.  Corn was fractionally higher while beans settled down two cents.  The market is waiting with bated breath for tomorrow’s USDA monthly Crop Production and Supply & Demand reports.  The market is looking for lower yields in both corn and beans.  Traditionally the September report wouldn’t be considered a major report, however with the surprising yields reported in August, there may be more attention paid to the numbers tomorrow than normal.  Look for sideways trade until the numbers are released.  Post-report, the market will initially trade the number as printed, but it won’t take long for the market to realize we need more concert yield evidence to determine price direction going forward.  With the Corn Belt weather fairly conducive to finishing the crop, we may not have to wait long, combines are already rumored to be running in southern Illinois.  As the rigs, and yield reports, creep north, we will start to have a better handle on what we will have to work with for the next twelve months.

With harvest in sight, basis values are starting to trend toward new crop values.  In the case of corn, the trend is actually showing slightly firmer nearby bids in some areas.  Beans are showing the opposite, with stronger nearby bids weakening to eventually match new crop values.

Looking ahead, ProAdvantage contracts will be completed this Friday.  If you haven’t already locked a basis value for those futures, there is still time.  Depending on your cash needs, it may also be beneficial to roll the futures to July of next year while the carry is still at or near $0.26.  This roll can be locked in even before the Friday completion of the ProAdvantage contract.  Give us a call if you would like to set some price or roll targets.  We can also get started with bushels for next year as well.

Crop Production released 9/12/17 Average Guess Pre-report range of estimates Previous Estimate
Corn Production (bil bu.) 14.035 13.878 – 14.249 14.153
Corn Yield (bu/ac) 168.2 166.7 – 170.9 169.5
Bean Production (bil bu.) 4.328 4.179 – 4.417 4.381
Bean Yield (bu/ac) 48.8 47.1 – 49.8 49.4

 

Aaron D. Ulland

Read Full Market Update

Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234

This Material has been prepared by a sales or trading employee or agent of CHS and should be considered a solicitation.  The information contained in this presentation is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only.  There is a risk of loss when trading commodity futures and options.  CHS bases its recommendations solely on the judgment of CHS personnel.

Grain Market Recap 9.1.17

Market Snapshot:

Mixed markets to start the new month and new market year.  Corn had a solid performance on Thursday but failed to follow through today.  One year ago yesterday, 8/31/16 was the low for December corn which provided just enough chatter and just enough of a reason for a short-covering rally.  Whether or not the lows from yesterday hold remains to be seen.  There is a long way to go before we get deep into harvest and have a solid feel for production potential.  Beans were able to rally to end the week, closing higher for the third week in a row.  New export sales announced this helped support the market.

Going forward, the market is still trying to estimate production potential in the US for this year.  Some private analysts have started releasing their yield guesses this week, ahead of the USDA on September 12.  If you remember, the USDA last gave us a 169.5 corn yield but the market has generally been trading something closer to 166 to 167.  The first look this week showed a range of 166.7 to 169.2.  Some are starting to think the Feds might not be too far off which could limit the upside potential on corn.  Bean estimates have also slowly increased with some estimates coming in better than 49 bushels per acre.  While this would probably pressure the markets as well, demand has been steady enough to give the market some hope.

Further confounding the grain markets are some very early looks at the acreage mix for 2018.  Here in the US one survey shows intended corn acres to be up something close two million acres while bean acres are projected to drop roughly the same.  The first look at South American acreage shows bean acreage will likely drop as well.  Yes, these are very EARLY estimates and are very likely to change between now and then, but they are factors to keep in mind as we evaluate marketing opportunities for both old and new crop.

Beyond the board, basis values have continued to very slowly improve.  The dramatic drop in futures through the last half of August brought cash selling to a hard stop.  As a result end-users were forced to slowly improve basis to keep grain moving and maintain ownership for production.  Supplies are still are plentiful nearby, keeping a significant carry in the market from old crop to new crop.  This is something to keep in mind for those who still have old crop grain left to unpriced.  With our harvest seemingly two to three weeks behind normal, there could be opportunity to contract old crop grain for early October shipment at new crop prices.  Of course, this opportunity could be short lived, and some nearby bids could even improve enough eliminate that carry.  Be alert and ready to pull the trigger for the right opportunity.

 

Aaron D. Ulland

Read Full Market Update

Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234

This Material has been prepared by a sales or trading employee or agent of CHS and should be considered a solicitation.  The information contained in this presentation is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only.  There is a risk of loss when trading commodity futures and options.  CHS bases its recommendations solely on the judgment of CHS personnel.

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