INVER GROVE HEIGHTS, MINNESOTA, U.S. — CHS Inc. and Shipman Elevator Company have signed a letter of understanding to explore a formal business partnership, CHS said on Aug. 30.

If approved by the membership of both companies, the two would combine to enhance agricultural services to producers and consumers within the southwestern Illinois trade territory now served by Shipman.

A proposed business agreement will be discussed at Shipman member meetings and will be voted upon by its stockholders in October.

According to Bart Baker, Shipman general manager, "Enhancing our relationship with CHS offers Shipman Elevator Company and its producer/owners an opportunity to become part of a global company, while remaining focused on serving the needs of our members,"

“The business opportunity is a strategic move for both companies,” said John McEnroe, senior vice-president, CHS Country Operations division. “And it aligns well with the CHS commitment to return value to member-owners.”