Cooperative CHS returns $433 million to owners

ST. PAUL, Minn., Feb. 10, 2014 /PRNewswire/ -- Farmers, ranchers and cooperatives across the United States will share in an estimated $433 million cash distribution from CHS Inc. (NASDAQ: CHSCP), an energy, grains and foods company and the nation's leading agricultural co-op. The distribution is the second largest in CHS history.

"The ability of our owners, who are also our customers, to directly share in the financial success of CHS is a distinct advantage of being part of a cooperative business," said David Bielenberg, CHS Board chairman and a Silverton, Ore., farmer. "And, this is cash that returns to local communities, enabling farmers, ranchers and cooperatives to invest in their own futures."

Bielenberg added that the CHS Board, which consists of 17 producers, strives to "take the long view" in regard to the company's future.

"Our objective is to make sure we're not only providing the products, services and marketing opportunities they need today, but also investing in what they'll need tomorrow, all while maintaining a financially strong company," he said.

The 2014 cash return to owners is based on CHS net income of $992.4 million, the company's second highest on record, for the fiscal year ending Aug. 31, 2013.

The distribution beginning this month to about 1,100 member cooperatives and more than 50,000 individual members and others includes cash patronage paid based on their fiscal 2013 business with CHS. CHS is also distributing cash to member cooperatives that redeems equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2014 and also will pay quarterly dividends to owners of the two classes of CHS preferred stock.

Since its creation in 1998, CHS has returned more than $3.5 billion in cash to its agricultural producer and member cooperative owners, more than $1 billion of that in its 2013 and 2014 fiscal years.

Patronage is based on business done with CHS by member-owner cooperatives and individual farmers and ranchers during fiscal 2013, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years. Distributions by state were:

State

Number of checks to
member co-ops and individuals

Total cash patronage

and equity redemptions

Alabama

13

$333,000

Alaska

11

$3,400

Arizona

65

$32,000

Arkansas

43

$3.7 million

California

175

$63,000

Colorado

2,462

$9.4 million

Connecticut

4

$2,800

Delaware

2

$140

Florida

37

$14,000

Georgia

10

$11,000

Hawaii

5

$2,600

Idaho

1,641

$5.4 million

Illinois

491

$4.0 million

Indiana

130

$3.2 million

Iowa

1,196

$27.6 million

Kansas

1,449

$29.5 million

Kentucky

7

$711,000

Louisiana

28

$237,000

Maine

5

$1,200

Maryland

11

$2,700

Massachusetts

8

$26,000

Michigan

465

$1 million

Minnesota

11,999

$64.4 million

Mississippi

50

$734,000

Missouri

127

$8.3 million

Montana

5,874

$15.9 million

Nebraska

3,066

$28 million

Nevada

14

$3,100

New Hampshire

4

$1,100

New Jersey

3

$590

New Mexico

27

$37,000

New York

9

$71,000

North Carolina

13

$3,100

North Dakota

9,151

$63.6 million

Ohio

60

$1.7 million

Oklahoma

735

$6.1 million

Oregon

298

$4.7 million

Pennsylvania

6

$2,100

Rhode Island

1

$85

South Carolina

3

$376

South Dakota

7,155

$27 million

Tennessee

12

$510,000

Texas

940

$4.2 million

Utah

22

$64,000

Virginia

19

$39,000

Washington

2,261

$8.4 million

West Virginia

1

$730

Wisconsin

1,632

$35.7 million

Wyoming

51

$2.1 million

 

CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2013, which can be found on the Securities and Exchange Commission website (www.sec.gov) or on the CHS website www.chsinc.com.

SOURCE CHS Inc.



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