CHS reports $69.7 million in first quarter fiscal 2021 net income

Farm equipment in field during harvest

On Jan., 6, 2021, CHS Inc., reported net income of $69.7 million for the first quarter of fiscal year 2021 that ended Nov. 30, 2020. This compares to net income of $177.9 million in the first quarter of fiscal year 2020.

The results for the first quarter of fiscal year 2021 reflect:

  • Revenues of $8.7 billion compared to revenues of $7.6 billion for the first quarter of fiscal year 2020.
  • Impacts in the CHS Energy segment that included:
    • Exceptionally low crack spreads and other unfavorable market conditions in our refined fuels business, driven primarily by the COVID-19 pandemic, resulted in volume and price declines that significantly reduced earnings in our Energy segment compared to the same period of the prior year.
    • Decreased propane demand that resulted from warmer and drier fall weather during the first quarter of fiscal 2021 compared to the same period of the prior year.
  • Impacts in the CHS Ag segment that included:
    • Improved relations between the United States and foreign trading partners that drove increased volumes and margins for grain and oilseed.
    • Favorable weather conditions during fall harvest compared to the prior year that drove increased volumes and margins across much of our Ag segment.

“Our employees’ commitment throughout the first quarter allowed us to consistently deliver products and services to our owners and customers around the world,” said Jay Debertin, president and CEO of CHS Inc. “A good growing season led to a good harvest season, and we saw commodity price rallies from spring and summer carry into fall. Those good weather conditions led to the highest volume fall fertilizer season we’ve seen since 2013 despite volatility in the nitrogen and phosphate markets.

“Improved trade opportunities with China and improved trade activity in Europe and Africa helped drive first quarter improvement in our global grain business. Our animal nutrition volumes also saw growth in the first quarter of fiscal year 2021,” Debertin said. “We saw year-over-year increases in premium diesel sales with rural America continuing to rely on us for their energy needs. However, our overall Energy segment experienced ongoing challenges on refined fuels margins as the pandemic continues to challenge the energy industry. Throughout the remainder of our fiscal year, we will remain focused on our key priorities including protecting the financial health of CHS, caring for those who depend on us and bringing efficiencies to how we run our businesses and deliver products.”

CHS Inc. FY2021 Q1 Earnings by Segment balance sheet

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in CHS filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended August 31, 2020. Any forward-looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise except as required by applicable law.

Chemical arrives via rail at the Holyoke Shuttle

Creating connections to empower agriculture – that’s the slogan at CHS and this statement drives our business decisions each day.  The CHS shuttle facility, located northeast of Holyoke, ties together agronomy, grain and rail in one location.  The availability of a facility like this provides CHS with the unique opportunity to capitalize on the marketplace and receive product in a better cost position.  This provides cost savings benefits to growers when they purchase their crop nutrients and crop protection products from CHS.

Two trains, which were booked up to six months ago, arrived at the Holyoke shuttle within a few weeks of each other in December 2020.  These trains contained urea ammonium nitrate (32-0-0), which will eventually be applied to fields across northeastern Colorado and southwestern Nebraska.  Additionally, CHS can receive base fertilizer products such as super phosphoric acid to make 10-34-0 and ammonium thiosulfate (12-0-0-26). A typical railcar unit will contain 110 cars and deliver 11,000 ton of product.

Once the product is unloaded, it is safely stored at a warehouse in Holyoke.  When spring rolls around, the product will be blended to the grower’s specifications at the newly constructed liquid plant, which sits at the same location as the shuttle.  CHS uses these base products and will blend according to each field’s requirements. 

Most of the liquid fertilizer used by CHS is domestic, but some of the dry fertilizer is imported from overseas.  While CHS may import some urea ammonium nitrate, the vast majority is domestically produced. 

When sprayers and planters begin covering fields again this-coming spring, think back to the long process to get product here and the careful planning that takes place to deliver a high-quality product to growers’ fields.  CHS works diligently to create connections of value for all growers and customers.

CHS Inc. owners elect seven board members during CHS Annual Meeting

Officers of board also elected by board peers following annual meeting

CHS Inc. owners elected seven board members to three-year terms during the cooperative’s 2020 annual meeting held virtually Dec. 3 in Inver Grove Heights, Minnesota. CHS Inc. is the nation’s largest cooperative and a leading global agribusiness company owned by farmers, ranchers and cooperatives across the United States.

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CHS reports fiscal year 2020 net income of $422.4 million

CHS income

CHS reported net income of $422.4 million for the fiscal year that ended Aug. 31, 2020. This compares to fiscal year 2019 net income of $829.9 million.

Key financial drivers for fiscal year 2020 include:

  • Consolidated revenues of $28.4 billion for fiscal year 2020 compared to $31.9 billion for fiscal year 2019.
  • Strong supply chain performance in our propane business driven by efficiently sourced propane to customers to meet strong crop drying and home heating demand that contributed to improved results especially during the first half of fiscal year 2020.
  • Less advantageous market conditions in our refined fuels business, primarily driven by the COVID-19 pandemic, resulted in volume and price declines that significantly reduced earnings compared to the prior year.
  • Poor weather conditions negatively impacted our Ag segment’s operations during the first half of fiscal year 2020, resulting in lower crop yields and poor grain quality following a late harvest and lower crop nutrient sales during fall 2019.
  • Improved weather conditions during the 2020 spring planting season drove increased earnings across much of our Ag segment in the second half of fiscal year 2020.
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Grain Summary Report Launched in MyCHS

We’re launching another new feature available to our producers through the MyCHS app! The Grain Summary is a new report that totals a customer’s grain payments over a calendar year or any selected timeframe.  It can be found in the top left menu on the home page of MyCHS under the Reports drop-down section. 

Benefits of the Grain Summary:

  • Subtotals of dollars paid by commodity
  • Pull grain payment information easily by calendar year, or customize the date range
  • Data includes gross amounts, total charges and net paid amounts from grain sales
  • Easily print or save the report as a PDF for records or to send to key business partners
  • Updates several times per day and is available online 24/7

Log into MyCHS today to see the benefits of this new feature. If you have any questions, please contact mychs@chsinc.com.

Jay Debertin: Update to CHS owners

Dear CHS owners:

Corn and soybean harvest is well underway, and it’s been a good fall. We’re glad to see that progress, although this week’s weather has forced a pause in many areas. We hope you are enjoying a safe, productive season and look forward to speaking with you at the virtual 2020 CHS Annual Meeting on Dec. 3.

Thank you for your business. Please let us know how we can help you complete this season and move into 2021.

Click here to hear more from CHS President and CEO Jay Debertin.

Exciting new feature on MyCHS

Just in time for fall harvest, a helpful new feature is available to producers through the MyCHS app!  Proof of Yield, a report that totals a customer’s grain deliveries by bushels over any selected time frame, is now available in MyCHS.

With the Proof of Yield report, producers will be able to:

  • See subtotals per commodity
  • View simple summaries of total grain bushels by year and commodity
  • Pull historic data, as past years are often needed and MyCHS provides that data
  • Verify the details of grain deliveries including dates, bushel, weight, test weight and moisture
  • Easily print or save report as a PDF

Other benefits:

  • It’s useful for insurance and U.S. government for crop claims (determines APH history, too!)
  • It’s flexible to pull by month, calendar year, or a custom date range
  • Easy access to send to key business partners such as accountants, insurance agents or tax partners
  • No waiting for mail delivery

Click here to enroll in MyCHS today!

Control the chaos of harvest

corn harvest

The following information is provided by Nationwide, the #1 farm and ranch insurer in the U.S.1

During the busy harvest season, farms and grain-handling facilities are some of the most dangerous places to work. Slips and falls from ladders, entanglements from augers and PTOs, crushing injuries from grain truck and railroad traffic, grain bin entrapment and engulfment from grain bin entry, and fires and explosions from grain dust accumulation, are just some of the hazards.

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Please go to cash bids page for information regarding Act of God millet contracts and Average Price contracts for new crop corn and new crop wheat.