US agri co-op CHS Inc has announced it intends to return US$600m in cash patronage and equity redemptions to its owners in 2025.
The co-op – America’s biggest in revenue terms – says the distribution is a “tangible demonstration of its commitment to sharing profits with its owners and strengthening rural communities”.
It board determines the total amount of cash to be returned to CHS owners at the close of each fiscal year in the form of cash patronage and redeemed equity.
Based on business done with CHS in fiscal year 2024, which ended on 31 August, 2024, the board has decided to return $300m in cash patronage and $300mthrough equity redemptions to the co-op’s owners.
This is the third highest amount of cash returns to owners in CHS history, the co-op adds.
CHS owners are member co-operatives and farmer-owners in communities across rural America. When the cash returns earmarked for distribution in 2025 are complete, CHS says it will have returned more than $2.3bn to owners over the past three years and nearly $3.5bn to owners over the past 10 years.
“The co-operative model is based on the concept of building strength by working together,” said board chair Dan Schurr. “As a leading cooperative, CHS is committed to sharing that financial strength with our owners, the farmers, ranchers and cooperatives who make up rural America.
“As CHS continues to build capabilities and efficiencies to better serve our owners, customers and communities, we are acting on our purpose of creating connections to empower agriculture.”
Final financial results for fiscal year 2024 are expected to be announced in November. Additional patronage-related details will be available at that time, including the amount of fiscal year 2024 patronage equity certificates that will be issued to CHS members.
