ST. PAUL, MINNESOTA, US — While earnings for its Ag segment dropped, CHS Inc. posted the “strongest earnings” in its history for the year ended Aug. 31 led by results in its Energy segment.

The agribusiness cooperative had net income of $1.9 billion for the fiscal year, up from $1.7 billion last fiscal year.

Consolidated revenues were $45.6 billion for fiscal year 2023, down from $47.8 billion the previous year.

The Energy segment had earnings of $1.075 billion, up from $616.5 million a year ago. CHS attributed the increase to favorable market conditions in its refined fuels business.

“The support of our member cooperatives and farmer-owners, dedication of our employees, exceptional operational performance and favorable market conditions enabled us to achieve the strongest earnings in our history during fiscal year 2023,” said Jay Debertin, president and chief executive officer of CHS Inc. “As a result, CHS intends to return $730 million in cash patronage and equity redemptions to our member cooperatives and farmer-owners in fiscal year 2024, demonstrating our commitment to sharing profits with the producers, local cooperatives and rural businesses that work with us to help feed people around the world.”

The Ag segment posted pretax earnings of $411.8 million, a drop of $245.8 million from the prior year.

Results reflected decreased margins for wholesale and retail agronomy products, which saw market-driven price declines. The segment also experienced lower margins for ethanol, the negative impact of mark-to-market adjustments on grain and oilseeds and margin increases in oilseed processing.

Robust meal and oil demand contributed to higher earnings in the soybean and canola processing business, CHS said.

“Our shared success showcases the unique power of the cooperative system to keep adapting and advancing through the uncertainties that can come with agriculture,” Debertin said. “We will continue to collaborate, innovate and invest to meet the growing global demand for agricultural products. A diversified portfolio, coupled with strategic investments in supply chain capabilities and emerging market opportunities, positions CHS to create a better company for the future and to maximize value for our owners and customers.”