Patronage and Equity Distribution Plan for
Cooperatives and Farmer-Owners Demonstrates Continued CHS Financial
Strength
ST.
PAUL, Minn., Sept. 12,
2023 /PRNewswire/ -- CHS Inc., the nation's
leading agribusiness cooperative, has announced it intends to
return $730 million in cash patronage
and equity redemptions to its owners in calendar year 2024. The
decision demonstrates the cooperative's ongoing commitment to
sharing profits with its owners and strengthening rural
communities.
The CHS Board of Directors determines the total amount of cash
to be returned to CHS owners at the close of each fiscal year.
Based on business done with CHS in fiscal year 2023, which ended on
Aug. 31, 2023, the CHS Board has
elected to return $365 million in
cash patronage and $365 million
through equity redemptions to CHS owners.
CHS owners are member cooperatives and farmer-owners in hundreds
of communities across rural America. The cash returns earmarked for
distribution in 2024 will combine with the previous year's cash
returns for more than $1.7 billion
shared with owners over two years and more than $3.2 billion returned to owners over the past 10
years.
"As a cooperative, CHS was founded in the commitment to share
financial strength with its owners while growing capabilities and
efficiency to help our owners, customers and business partners
succeed," said Dan Schurr, chair of
the CHS Board of Directors. "No other business model has this deep
connection with its owners and unrelenting focus on empowering our
stakeholders and building communities."
Final financial results for fiscal year 2023 are expected to be
announced in November 2023.
Additional patronage-related details will be available at that
time, including the amount of fiscal year 2023 patronage equity
certificates that will be issued to CHS members.
CHS Inc. (www.chsinc.com) creates connections to empower
agriculture. As a leading global agribusiness and the largest
farmer-owned cooperative in the United
States, CHS serves customers in 65 countries and employs
nearly 10,000 people worldwide. We provide critical crop inputs,
market access and risk management services that help farmers feed
the world. Our diversified agronomy, grains, foods and energy
businesses recorded revenues of $47.8
billion in fiscal year 2022. We advance sustainability
through our commitment to being stewards of the environment,
building economic viability and strengthening community and
employee well-being.
This document and other CHS Inc. publicly available documents
contain, and CHS officers and representatives may from time to time
make, "forward-looking statements" within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements can be identified by words
such as "anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
CHS current beliefs, expectations and assumptions regarding the
future of its businesses, financial condition and results of
operations, future plans and strategies, projections, anticipated
events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of CHS
control. CHS actual results and financial condition may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not place undue reliance on any of these
forward-looking statements. Important factors that could cause CHS
actual results and financial condition to differ materially from
those indicated in the forward-looking statements are discussed or
identified in CHS filings made with the U.S. Securities and
Exchange Commission, including in the "Risk Factors" discussion in
Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended
August 31, 2022, and in item 1A of
CHS Quarterly Report on Form 10-Q for the fiscal quarter ended
February 28, 2023. These factors may
include: changes in commodity prices; the impact of government
policies, mandates, regulations and trade agreements; global and
regional political, economic, legal and other risks of doing
business globally; the ongoing war between Russia and Ukraine; the impact of inflation; the impact
of epidemics, pandemics, outbreaks of disease and other adverse
public health developments, including COVID-19; the impact of
market acceptance of alternatives to refined petroleum products;
consolidation among our suppliers and customers; nonperformance by
contractual counterparties; changes in federal income tax laws or
our tax status; the impact of compliance or noncompliance with
applicable laws and regulations; the impact of any governmental
investigations; the impact of environmental liabilities and
litigation; actual or perceived quality, safety or health risks
associated with our products; the impact of seasonality; the
effectiveness of our risk management strategies; business
interruptions, casualty losses and supply chain issues; the impact
of workforce factors; our funding needs and financing sources;
financial institutions' and other capital sources' policies
concerning energy-related businesses; uncertainty regarding the
transition away from LIBOR and the replacement of LIBOR with an
alternative reference rate; technological improvements that
decrease the demand for our agronomy and energy products; our
ability to complete, integrate and benefit from acquisitions,
strategic alliances, joint ventures, divestitures and other
nonordinary course-of-business events; security breaches or other
disruptions to our information technology systems or assets; the
impact of our environmental, social and governance practices,
including failures or delays in achieving our strategies or
expectations related to climate change or other environmental
matters; the impairment of long-lived assets; the impact of bank
failures; and other factors affecting our businesses generally. Any
forward-looking statements made by CHS in this document are based
only on information currently available to CHS and speak only as of
the date on which the statement is made. CHS undertakes no
obligation to update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise except as
required by applicable law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/chs-intends-to-return-730-million-to-owners-301924615.html
SOURCE CHS Inc.