US Co-op CHS returns $600 Million

[TOM4CWB]

ST. PAUL, Minn., Feb. 4, 2013 /PRNewswire/ --
Farmers, ranchers and cooperatives across the United
States will share in a record estimated $600 million
disbursement from CHS Inc. (NASDAQ: CHSCP), an
energy, grains and foods company and the nation's
leading agricultural co-op. The payments mark the
largest cash return ever made by a U.S. cooperative.
"One of the most important ways we help our producer
and co-op owners grow is by delivering an economic
return on the business they do with us," said David
Bielenberg, CHS board chairman and a Silverton, Ore.,
farmer. "This – along with the quality energy and crop
inputs, crop marketing and services we provide year-
around – underscores the added value of being a
cooperative system owner and customer."
The cash return to owners is based on record CHS net
income of $1.26 billion for the fiscal year ending Aug.
31, 2012.
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. 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 also pay
quarterly dividends to owners of CHS preferred stock.
Since its creation in 1998, CHS has returned more than
$3.1 billion in cash to its agricultural producer and
member cooperative owners, $1 billion of that in the
2012 and 2013 fiscal years.
Patronage is based on business done with CHS by
member-owner cooperatives and individual farmers
and ranchers during fiscal 2012, while equity
redemptions and preferred stock distributions
represent retirement of ownership in CHS earned in
past years. Distributions by state were:
State
# Checks to member
co-ops and individuals

See list at:
http://www.feedandgrain.com/news/10874890/chs-
returns-record-600-million-to-cooperative-owners?
utm_source=Feed %26 Grain Industry Watch&utm_
medium=email&utm_campaign=FG130131002

[wilagro]

In Canada we have sold most of our farm grain handling and farm supply Co-ops because we want foreign interests to reap the profit.
I guess the American farmers are smarter than we are.

[TOM4CWB]

Willy, I respectfully disagree. We are in FACT
STRONGER ($827 million) than the US.

Federated Co-operatives Limited (FCL) is a multi-
faceted organization that is based on the principles of
co-operation. It is owned by approximately 235 retail
co-ops located throughout Western Canada. These co-
ops are the "member-owners" of FCL. FCL provides
central wholesaling, manufacturing, marketing and
administrative services to its member-owners.

FCL's Vision: "Federated Co-operatives Limited will set
the world standard in consumer co-operative
excellence."

FCL's Mission: "To provide responsible, innovative
leadership and support to the Co-operative Retailing
System, for the benefit of members, employees and
Canadian communities."

Sales and net earnings

FCL achieved record sales in 2012 of $8.8 billion. Net
earnings from operations were $827 million.

The Financial Post Magazine's listing of Canada’s top
500 corporations ranked FCL's 2011 sales 51st overall
and net earnings ranked 46th overall. FCL's sales of
$8.3 billion ranked it as the #1 wholesaler in the
country.
The Saskatchewan Business Magazine's listing of the
province's top 100 companies ranked FCL's 2011 sales
at number two.
The Government of Canada's list of the 'Top 50 Non-
Financial Co-operatives in Canada' put FCL's 2010
sales at number one.

Patronage refunds

FCL's net earnings are returned to its members as
patronage refunds. The amount of the refund is based
on each member's purchases from FCL during the year.
The refund is paid partly in equity and partly in cash.
In 2012, the patronage refund to members was $528
million. Of this, $425.6 million was paid in cash. Over
the last ten years, FCL has returned more than $3.2
billion in cash to its members.

Business units

FCL offers a wide variety of products and services to its
member-owners. There are ten business units:

Consumer Products
Corporate Affairs
Energy
Human Resources
Information Technology
Operational Support
Refinery Operations
Refinery Systems & Strategy
Retail Operations & Market Development
Treasury
Locations and subsidiaries

To serve its member-owners, FCL employs
approximately 3,000 people at these locations across
Western Canada:

a home office in Saskatoon, Saskatchewan
five region offices in Calgary and Edmonton (Alberta),
Regina and Saskatoon (Saskatchewan) and Winnipeg
(Manitoba)
four distribution centres (warehouses) in Calgary,
Edmonton, Saskatoon and Winnipeg (FCL’s fleet of
trucks ensures the flow of goods from suppliers to
retail co-ops. The highway trucking fleet consists of
232 merchandising trailers and 147 tankers.)
six feed plants
ten propane distribution branches
a number of corporate food stores and petroleum
operations
FCL also has two wholly-owned subsidiaries:
Consumers’ Co-operative Refineries Limited, a
petroleum refining/heavy oil upgrader facility in
Regina
The Grocery People Ltd. (TGP), an Edmonton-based
grocery wholesaler and fresh produce supplier that
serves independent food retailers in four western
provinces, the Yukon and Northwest Territories"

https://www.coopconnection.ca/wps/portal/fclretail/F
CLInternet/AboutUs/FCL/

[ColevilleH2S]

So Wil, what do you have to say to that?

[oneoff]

It would come as a big suprise if four farmers in a row agreed about Coops being acceptable businesses that they would deal with.

From that perspective I would hazard a guess that cole.. doesn't believe in patronizing Coops.

[Oliver88]

The Coop is another source of competition for
fuel, fertilizer, oil, etc so if they are cheaper offer
a dividend why not buy from them?

[wilagro]

ColevilleH2S: What am I supposed to say? I was referring to our collective Wheat Pools more than anything else.

Yes, I know all about Federated Co-operatives...in fact I attended Co-op College in Saskatoon at one time.

In Alberta we have the UFA outlets but have yet to collect much in the way of dividends and in the years I spent the most money with them they paid no dividend at all.

[ColevilleH2S]

Wilagro I just grow tied of the nay sayers that constantly run down the success of what we have built here in Western Canadian Agriculture. It could not have been done if it wasn't for the co-ops, along with the Monsantos/Bayers, etc.

Saying we are not as smart as the Americans is BS. The niche we have carved out for ourselves with a less than hospitable climate and tiny capital market is worth celebrating.

And yes all is not well, what business did UFA have getting into the Sporting goods racket? We all got punished for that one. But thankfully it is a free-market and you and I can shift purchases over to Federated and punish such stupidity.


PS(get it, "sporting goods racket") too funny couldn't help myself ;-)

[wilagro]

ColevilleH2S: Inhospitable climate...sometimes so. I have fed cattle at -43 for a week. Survived as did the cattle. My folks were pioneers, I guess I must have some of their spunk too.

I switched over to Co-op fuels a few years ago. It has payed to do so and the tractors worked just fine with the diesel. Gasoline seems okay too. Good equity payment also.

[DogPatch]

The 4 farmers on Coffee row likely don't deal with the co-op because they would have had to pay about the same price for their chemicals, and fertilizer as the smaller, more experienced (older) farmers that didn't waste their time on Coffee row, and sold their grain through the CWB (AND were happy).