Locals share $3.3M from CHS payoutPublished 10:25am Thursday, February 7, 2013
Local farmers and clients are sharing in the wealth and recent success of the nation’s leading agricultural co-op, CHS, which distributed a record $600 million to its customers.
About 300 southeastern Minnesotans who used CHS’s services for fiscal year 2012 will share a kickback of $3.3 million, according to local CHS General Manager Deke Stejskal, who oversees CHS’s seven area locations, including Grand Meadow, Elkton, Spring Valley, Wykoff, LeRoy, Ostrander and Chester, Iowa. However, CHS hadn’t even merged with LeRoy, Ostrander, Chester and Wykoff until September 2012.
“We feel like that gives us more stability here,” Stejskal said, who added those locations now employ a total of 67 people.
Stejskal said the payback shows the recent strength of agriculture.
“This is the record as far as paying out, and it’s likely got to do with how agriculture has been strong within the last three or four years,” he said.
Local CHS clients will receive their payments as 35 percent cash now and 65 percent equity when they retire.
Overall, the distribution beginning this month to nearly 1,200 member cooperatives and nearly 50,000 individual members and others includes cash patronage paid based on their fiscal 2012 business with CHS, according to the company. CHS is also distributing cash to member cooperatives to redeem equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2013 and will pay quarterly dividends to owners of CHS preferred stock.
“It’s always nice to have that money go back to people who are doing business with you,” Stejskal added.
Local CHS locations offer farmers services for grain, fertilizer, crop protection and soil sampling. CHS internationally serves in energy, industrial, animal nutrition and transportation sectors, as well. Minnesota received the largest portion of the $600 million kickback with $116.3 million. The overall cash return to owners is based on the record CHS net income of $1.26 billion for the fiscal year ending Aug. 31.