Friday, October 13, is Global Fertilizer Day, established by the fertilizer industry as a way to help highlight the essential role fertilizers play in global food production. “About half of the world’s food production is attributable to the use of fertilizer, yet our industry commonly faces incorrect public perceptions about its importance,” says Michael Johnson, CHS Agronomy director of marketing.
CHS is proud to announce that October is National Cooperative Month. After all, what better time could there be than during harvest to reflect on everything cooperatives do for the farmers and ranchers who own them? As you’re busy bringing in your harvest, consider how rural co-ops, empowered by the combined strength of its owners, ensure the steady supply of affordable inputs that make your crop possible.
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.
There was a small uptick in phosphate sales ahead of Hurricane Irma’s arrival in Florida, where the bulk of North American phosphate production is located. Phosphate facilities there shut down as part of their hurricane preparedness plans.
Early reports from manufacturers are that damage at the facilities appears to be limited, but full assessment will take time. Some finished product has sustained water damage but no exact estimates have been released yet.
A major manufacturer expects to be able to resume production fairly soon, but says its third quarter production volumes could be impacted by the storm disruptions. It had stopped making price offers to either domestic or international customers until late Thursday, Sept. 14. The market has reacted and prices moved up significantly late last week.
Several import vessels of phosphates are arriving in the Gulf this month, including one vessel with CHS cargo, which arrived and was unloaded in between hurricanes. Most of that product is now making its way up the river system.
Staff at CHS terminals are busy filling orders and working with accounts to get product in position before the busy harvest season gets underway across the Cornbelt. CHS is working hard to make sure producers are being kept informed of any supply changes or concerns that might arise from the recent storm damage to production facilities or transportation infrastructure.
CHS has announced open enrollment for corn and soybean marketing contracts through CHS Pro Advantage now through December 13, 2017. New this year, contracts for spring wheat are also included in this enrollment period.
CHS Pro Advantage gives growers access to industry experts at Russell Consulting Group, a wholly-owned subsidiary of CHS, to price and sell their grain. This helps to manage risk while delivering superior profits even during a tough market.
“With wheat futures falling from three-year highs seen just a few months ago and volatility following USDA’s August report, now is the time to commit bushels for professional management and marketing by our hedging experts,” says Kent Beadle, director, Russell Consulting Group.
Growers can enroll 2018 and 2019 bushels. Bushels in the one-year program will be priced between December 18, 2017, and August 24, 2018. Bushels in the two-year program will be priced between December 18, 2017, and August 23, 2019.
If you’re interested in knowing more, contact your local grain team for more information or visit the CHS Pro Advantage website.
This satellite image shows the Pacific Northwest smoke and burning areas on September 5, 2017. SOURCE: NASA
Western wildfires have much of Washington, Oregon, Idaho and Montana under a thick blanket of smoke. And while the smoke is cancelling and rescheduling sports activities, it is also causing concern for the state’s ranchers.
Typical corn in Cuba is only used for local, domestic consumption.
CHS Prairie Lakes Sales Manager Erica Boyum recently joined a diverse delegation of state agricultural leaders on a trade mission to Cuba. The trip was led by Minnesota Lt. Gov. Tina Smith and included State Sen. Julie Rosen and Agricultural Commissioner Dave Frederickson.
The delegation visited Cuba at an interesting time, as President Trump revealed the administration’s new policies concerning Cuba days before they left. The group met with a variety of organizations during their time in Cuba including the Institute of Animal Sciences, the Ministry of Agriculture, and the Ministry of Foreign Affairs. U.S. policies towards the island, particularly those related to agriculture, were top of mind with Cuban leaders and organizations.
CHS has partnered with The American Society of Agronomy (ASA) to collaborate in creating a dynamic, online-learning program focused on improving sustainability practices and standards in production agriculture. The curriculum will be designed for agronomists and agribusiness professionals and will establish a recognized, industry-wide standard of education to help agronomists and other agriculture professionals truly implement sustainable practices in the field. (more…)
Underlying business performance stable, one-time events cause quarterly loss
PAUL, MINN. (July 14, 2017) – CHS Inc., the nation’s leading farmer-owned cooperative and a global energy, grains and foods company, announced a net loss of $45.2 million for the third quarter of its 2017 fiscal year (three-month period ended May 31, 2017), compared to net income of $190.3 million for the same period one year ago. Consolidated revenues for the third quarter were $8.6 billion, compared to $7.8 billion for the third quarter of 2016, representing a 10 percent increase.
“Despite the economic challenges in agriculture and energy, several of our underlying businesses are having a solid year,” said CHS President and Chief Executive Officer Jay Debertin. “Unfortunately, we’ve experienced three negative one-time events this fiscal year that have resulted in charges leading to a loss in the third quarter and a significant earnings decline for the year to date. In response to these events, we are implementing measures to better identify risk management gaps in some of our processes and when necessary enhance our ability to effectively manage our risks.”
There are several factors to consider before and during herbicide spray application. Taking the appropriate steps to prepare for a successful application can save time, money and effort. While spray requirements may vary based on crop, location and herbicide formulation, there are steps that should be taken to ensure the best protection against weeds during the current crop season and to protect the effectiveness of the herbicide long term.
Mother Nature plays an important role in the success of herbicide application. In addition to the preventive and arbitrary actions necessary to increase herbicide effectiveness, working with natural conditions is extremely beneficial and mandatory since we do not control the weather or other natural factors. (more…)