ST. PAUL, MINNESOTA, US — CHS Inc. reported net income soared to $1.7 billion for the fiscal year ended Aug. 31, due to higher refining margins as well as strong demand within the global grain and processing and wholesale agronomy businesses.

In fiscal year 2021, CHS reported net income of $554 million.

"We appreciate the support of our member cooperatives and farmer-owners, which enabled us to deliver a substantial increase in earnings for the fiscal year, while also helping feed people around the world," said Jay Debertin, president and chief executive officer of CHS. "Additionally, our employees demonstrated their dedication to helping our owners and customers succeed in a turbulent year for agriculture. As a result of these collective efforts, CHS intends to return $1 billion in cash patronage and equity redemptions to our member cooperatives and farmer-owners in fiscal year 2023, reflecting the company's financial strength and demonstrating the value of cooperative ownership.”

In the Ag segment, pretax earnings increased by $359.5 million to $657.6 million, reflecting increased margins across all product categories due to strong global market demand and global supply disruptions.

The segment also experienced continued favorable markets for oilseed processing, which were bolstered by robust meal and oil demand, CHS said.

Revenues from feed and farm supplies increased, despite less favorable weather during spring planting and application season.

In the Energy segment, pretax earnings were $616.6 million, and reflect higher refining margins and increased discounts on heavy Canadian crude oil processed by CHS refineries.

These increases were partially offset by higher renewable energy credit costs and higher natural gas costs, as well as lower margins in the propane business.

Nitrogen pretax earnings of $478 million represent a $357 million increase versus the prior year. It reflected increased earnings from investment in CF Nitrogen, primarily due to market conditions and strong demand for urea and UAN, factors that were partially offset by higher natural gas costs.

“Our investments in infrastructure, supply chain capabilities, people and innovation are driving operational and efficiency gains throughout our expansive network," Debertin said. "Although economic uncertainty, logistical challenges and inflationary pressures remain, CHS is well-positioned to maximize value for our member cooperatives and farmer-owners."