New Briefs

On Feb. 1, 2016, CF Industries Holdings, Inc., and CHS commenced their previously announced nitrogen fertilizer strategic venture. CHS completed its $2.8 billion equity investment in CF Industries Nitrogen, LLC (CF Nitrogen), a CF Industries subsidiary, and began receiving delivery of urea and urea ammonium nitrate (UAN) from CF Industries under a longterm supply agreement.

“This is an important moment for CHS member-owners as we complete the single largest investment in our history and, more important, establish long-term dependable nitrogen fertilizer supply, supply chain efficiency and opportunity for economic value,” says Carl Casale, president and chief executive officer, CHS. “This is a strategic decision about adding value for our member cooperative- and producerowners on par with the significant investments made in our energy and grains businesses over 85 years of operation.”

Through its purchase of a minority equity interest in CF Nitrogen, CHS will be entitled to semiannual profit distributions from CF Nitrogen, based generally on the volume of granular urea and UAN purchased by CHS pursuant to the supply agreement.

CHS is entitled to purchase up to 1.1 million tons of granular urea and 580,000 tons of UAN annually from CF Nitrogen for ratable delivery. The 1.7 million product tons available under the supply agreement represent approximately 8.9 percent of CF’s total production capacity once capacity expansion projects are completed at Donaldsonville, La., and Port Neal, Iowa, which is expected in 2016.

CHS and CF Industries marked the start of the strategic relationship with an event for CHS fertilizer customers at CF’s Port Neal Nitrogen Complex.

CHS Inc. has reported net income of $266.5 million for the first quarter of its 2016 fiscal year.

Earnings for the period of Sept. 1 through Nov. 30, 2015, declined 30 percent from the same period in fiscal 2015. The decrease was primarily attributed to lower margins for much of the company’s energy and agricultural businesses.

Revenues for the quarter were $7.7 billion, down from $9.5 billion for the same period in fiscal 2015, largely due to lower selling prices for the energy and grain products, which make up a significant portion of CHS business.

Combined earnings for CHS Hedging, CHS Capital and CHS Insurance businesses increased slightly during the first quarter of fiscal 2016 compared with the first quarter of fiscal 2015. Earnings for the quarter also increased over the same period a year ago for the CHS share of food manufacturer and distributor Ventura Foods, LLC , but declined for its share of earnings from the Ardent Mills wheat milling joint venture.

Communities across America are better places because individuals help each other with random acts of kindness. Since 2012, more than 10,000 people in more than 3,000 communities have been nominated by their neighbors and awarded free fuel by the Cenex® Tanks of Thanks® program.

The Tanks of Thanks program is part of a commitment to celebrate local communities by Cenex, the CHS energy brand, which has a network of 1,450 retailers across the nation’s heartland and Pacific Northwest. Tanks of Thanks has awarded more than $500,000 in free fuel to selected honorees.

“Continuing the Cenex Tanks of Thanks program in its fifth year speaks to overwhelmingly positive response from people in thousands of U.S. communities,” says Akhtar Hussain, refined fuels brand marketing manager, CHS.

Nominate someone for Tanks of Thanks at tanksofthanks.com. There is no limit to the number of people you can nominate, and anyone can be nominated for any act of kindness — big or small.

CHS has assumed full ownership of the limited liability company it has operated with ADM in north-central Montana since 2001.

The LLC currently operates grain shuttle facilities in Havre and Big Sandy, Mont., which handle 9 to 11 million bushels of wheat annually.

The operation began as part of CHS Big Sky, based at Kershaw, Mont., on Jan. 1, 2016.

“We are excited to bring these additional services to our customers,” says Keith Schumacher, general manager, CHS Big Sky.

“We’ve been focused on how we can continue to add value for farmers and ranchers in central Montana. This expands our grain capabilities and brings better market opportunities — as well as full patronage — for current patrons of the LLC . It’s a great fit.”

CHS Big Sky is an integrated ag retailer serving Montana farmers and ranchers from 18 locations across 17 counties.