Taking the Long View

How do cooperatives add value? Through an unwavering focus on opportunities to help their owners grow, not only on a daily basis but also for the long term. Carl Casale, who became president and chief executive officer of CHS in January 2011, shares his perspectives on cooperative value and what lies ahead.

Q. After five years with CHS, what’s the most significant thing you’ve learned about cooperatives?

A. I’ve been connected to cooperatives my entire life, starting with growing up on a farm that did business with both supply and marketing co-ops, so CHS wasn’t unknown territory. The last five years, however, have reinforced my belief in the value and competitive strength of the cooperative business model, especially when we take full advantage of opportunities to work together.

When your customers are also your owners, there’s a mutual commitment that extends beyond one season, one financial quarter or one economic cycle. That differs from most traditional publicly traded companies, whose stockholders and customers are two distinct groups. Their success is measured by quarterly results and decisions often are based on short-term earnings. As a cooperative system, we know we’re in this together for the long haul. That means we make decisions with not just years, but generations, in mind.

What I’ve learned about our history supports that. Time and again — amid challenging markets and global events — this company’s leaders have boldly taken the long view. Our first refining ownership came in the middle of World War II. We’ve invested in our energy and grain businesses during down cycles. We focus on achieving long-term dependable supply, market access and economic value. Those were the drivers behind our recently completed record investment in CF Nitrogen, a landmark step we believe will serve many future generations of cooperative owners.

Q. What role will CHS and the cooperative system play in this softer ag and energy marketplace?

A. There’s no question we’re dealing with challenging economic times on the farm, at the member-cooperative level and throughout the agriculture and energy sectors in which CHS operates. We’re certain to face challenges, choices and changes over the next few years. Times like these always call for keeping a sharp eye out for operational efficiencies and asking if what we’re doing today can be done better tomorrow.

But I’m also optimistic. An environment like this plays to our strengths as a cooperative system. We will find new ways to work together for mutual success. And we will continue to take the long view to benefit our member-owners today and tomorrow.

As I often say, an individual farmer can’t own a petroleum refinery. And one member cooperative probably can’t build an export terminal. But together, we can, we have and we will continue to do these things.

Q. What would you tell a next-generation farmer or rancher about the benefits of being a cooperative customer and member-owner?

A. To me, the equation is simple: People you trust, plus products and services you can count on, combined with a business you own, equals value. Add the opportunity for direct economic returns through patronage and you’ve got a competitive and winning combination.

That’s also what 20- and 30-something producers are telling us. I consistently heard those themes as I met recently with groups of next-generation farmers and ranchers. We see the same themes when we survey these groups. There’s no question that they value trusted relationships with a company they own. At the recent CHS New Leaders Forum, participants told us they expect their local cooperative businesses to add value with honest, reliable, knowledgeable teams with whom it’s easy to do business.

Those of us who’ve been around the cooperative system awhile have a responsibility to not only meet those expectations, but also to continually cultivate the next generation of co-op leaders. I’m encouraged that many at the CHS New Leaders Forum said they aspire to cooperative board service, although they want to learn more about what it means to be a director. We must work together to deliver that co-op leadership education.

If you’re a next-generation producer, step up and get involved when opportunities to learn and serve arise. Your perspective and voice will help ensure that your cooperative will evolve to serve your children and grandchildren.

A. We have a great story and we all need to tell it every day. At member-owner town hall meetings over the past year, many of you told us this must be a priority. This issue of C includes the first of a series on cooperative value. CHS is also wrapping up a major study on cooperative economic impact. In my mind, there’s no question we’ll learn that this system’s economic contributions to the vitality of rural America are more significant than we realize.

• Trusted local advisors • Quality products and services • Doing business with a company you own • Creating more together • Economic returns on your business