ST. PAUL, MINNESOTA, US — CHS Inc., a leading US agribusiness cooperative, announced on Sept. 14 that it intends to return a total of $1 billion in cash patronage and equity redemptions to its owners in calendar year 2023, “delivering on its objectives to share profits with owners and contribute to building strength in rural America.”
The amount of cash to be returned to owners is a decision made by the CHS board of directors at the close of each fiscal year. The CHS board has elected to return $500 million in cash patronage based on business done with CHS in fiscal year 2022, which ended on Aug. 31, 2022. Additionally, the CHS board has elected to return $500 million in cash to its owners through equity redemptions.
The total of $1 billion distributed in cash would be the largest annual distribution to owners in CHS history and would bring the total amount returned to owners over the last 10 years to more than $3.1 billion, CHS said.
“The opportunity for owners to receive cash patronage and equity is a fundamental difference between the cooperative model and other businesses,” said Dan Schurr, chair of the CHS board of directors. “This critical difference means CHS owners share in the financial success of the company and can leverage that success to fuel strength and growth for their own businesses, their families and the communities we share.”
Final financial results for fiscal year 2022 are expected to be announced in November 2022. Additional patronage-related details will be available at that time, including the amount of fiscal year 2022 patronage equity certificates that will be distributed, CHS said.