CHS: Using the cooperative model for lasting impact
As America’s largest farmer-owned cooperative, the cooperative model and the strength it brings to local communities is the backbone of CHS. Every
Every October, that model is celebrated as part of National Coop Month, which aims to spread awareness about the benefits of being part of the cooperative system and the important role cooperatives play in their communities.
The challenges of today’s society are not lost on cooperatives.
The 2021 National Coop Month theme, “Build Back for Impact,” recognizes issues such as a global pandemic, climate emergency and systemic racism and the role cooperatives can play in facing these issues.
“As part of the cooperative model, CHS is driven by our purpose of creating connections to empower agriculture,” says Jason Kroener, general manager of CHS ag retail locations across western Oklahoma and west Texas. “ W e
“ W e look to our guiding principles of inclusion, integrity, cooperative spirit and safety to help us strengthen our communities where we live and work.”
In keeping in line with these principles, CHS is committed to expanding a customer-focused retail solutions platform and continues to align the business, assets, products and services with the needs of area farmers and customers.
To optimize the footprint and assets of CHS, the Oklahoma business unit just completed a consoli-dation with a CHS business unit primarily focused on agronomy, with assets located in west Texas.
This consolidation brought in nine additional CHS locations to the existing six Oklahoma locations.
“We continue to leverage our agriculture assets to expand our business and support our farmer-owners,” said Kroener. “We are always looking for ways to enhance and grow our operational efficiency.”
In March 2020, CHS completed a merger with Tillman Producers Co-op in Frederick. Since the merger with Tillman, CHS continues to integrate these assets into the existing operation.
“Having the right assets in the right places to meet our customers’ needs while ensuring those assets perform efficiently is critical to ongoing success,” said Kroener.
As Kroener looks forward to 2022, his attention will be on navigating supply challenges, wide-swinging futures and cash markets and integrating the larger, newly consolidated team.
When thinking about the cooperative system and the value it provides to local farmers, focus continues to be placed on a high level of customer service.
Value also comes in the form of patronage paid to members who do business with the cooperative.
Based on FY20 earnings, in FY21 CHS returned $113 million: $30 million in cash patronage plus $83 million in equity redemptions.
Cooperative spirit enables us to work together for shared success. It’s visible in the fall when farmers deliver the grain that was grown through teamwork and perseverance.
You see it in the pride that teams on the farm and at the co-op feel when harvest is ended, the paperwork is wrapped up and everyone can celebrate another safe and successful growing season.
“We are proud to be a farmer-owned cooperative, powering communities, making connections, building relationships and helping farmers grow and succeed,” said Kroener.