Posts By: CHS

3 equipment tips to get the most out of a short planting season

Planting Equipment Tips

By Mimi Falkman, senior marketing specialist, CHS Lubricants

Planting season is always a busy time of year on the farm, but it can be especially tight when winter overstays its welcome. A short spring means there’s even less time than usual for farmers to complete some of the most important work of the year.

During a condensed planting season, equipment is under added stress because it needs to work overtime to meet demands. To keep machines protected and operating at peak performance during a shorter spring, farmers can set themselves up for success by preparing their equipment and fluids while the fields are still wet.

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CHS reports $596.3 million of net income for first six months of fiscal 2019

CHS Income

CHS Inc. reported net income of $248.8 million for the second quarter of fiscal 2019 and $596.3 million for the first six months of fiscal 2019.

“Our strong performance in the second quarter reflects our hard work at serving our owners and other customers better. We’ve refocused on serving our customers and improving our operations, and that has shown positive results in our financials for the first half of fiscal 2019,” said Jay Debertin, CHS president and chief executive officer. “Our performance also reflects the benefit of a diverse platform across business units that serves our cooperative and farmer-owners.”

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Recognize, respect risks associated with grain handling

Grain powers American agriculture. During Stand-Up for Grain Safety Week, March 25 through 29, we want to remind everyone working on farms and in grain-handling facilities to respect and understand the risks associated with working with grain.

“It’s important to continue to work with the industry, our employees and our farmer-owners on the hazards in the grain industry, while stressing safe practices and controls to ensure their safety,” says Matt Surdick, manager, Country Operations Environment, Health and Safety, CHS.

Stand-Up for Grain Safety Week was organized by the National Grain and Feed Association (NGFA), the Occupational Safety and Health Administration (OSHA), the Grain Elevator and Processing Society, the American Feed Industry Association and the Grain Handling Safety Coalition.

The groups remind us to remember five steps to grain safety:

  • Never walk down grain
  • Guard elevated work surfaces
  • Watch for moving equipment
  • Safeguard moving equipment
  • Lock out equipment

Moving or flowing grain acts like quicksand and can bury a person in seconds. From the time an auger starts, a person has two to three seconds to react. In four to five seconds, a person is trapped. In 22 seconds or less, the person is completely covered by grain. Grain bin incidents often result in multiple fatalities because coworkers improperly attempt rescue procedures and become engulfed themselves.

“Following procedures, evaluating your surroundings, using proper equipment and ensuring constant communication are keys to entering and exiting a grain bin or silo safely,” Surdick says. “Do it the right way, every time.”

Be aware of bridging grain, which occurs when grain clumps together due to moisture or mold. These conditions can create an empty space beneath the grain as it is unloaded, which means it can collapse unexpectedly or under a person’s weight. Do not enter a bin when there is a bridging condition, or if grain is built up on the side of the bin.

Always monitor the atmosphere inside bins for dangerous changes. Make sure there two people are always present when working in bins and maintain communications between the attendant outside the bin and the person inside the bin.

Never move grain into or out of a bin while someone is inside. Lockout/tagout all mechanical, electrical, hydraulic and pneumatic equipment that presents a danger, particularly grain-moving equipment.

A bin of grain may seem harmless, but in just seconds, that harmless grain can claim a life. Please be safe and share these messages with anyone working with grain.

It Takes Talent to Feed the World

By Nanci Lilja, President, CHS Foundation

When most people think of agriculture, they wonder how we are going to feed the growing population of 9.6 billion by 2050. And while that’s an important question to consider, I find myself thinking more often about the individuals needed to fill the talent pipeline to feed that growing population.

With nearly 4 in 10 agriculture jobs going unfilled each year and the average-age of farmers ever increasing, it’s going to take a pragmatic, creative approach to encourage young people to pursue careers in agriculture.

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CHS adds crop protection distribution with acquisition of West Central

West Central Distribution

CHS has completed the acquisition of West Central Distribution, LLC, a full-service wholesale distributor of agronomy products headquartered in Willmar, Minnesota.

“Completing the acquisition of West Central demonstrates our commitment to provide more of the products, services and technologies cooperatives, retailers and our farmer-owners need to compete,” said Gary Halvorson, senior vice president, CHS Agronomy. “Ownership of West Central expands our agronomy platform, positions CHS as a leading supply partner to cooperatives and retailers serving growers throughout the United States and adds value for CHS owners.”

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Will 2019 be a disease year?

It may be impossible to tell with complete certainty where a disease will be an issue, but most people can agree on the conditions that can lead to disease. These conditions, otherwise known as the Disease Triangle, include a susceptible host, a conducive environment and a pathogen. When those three things collide, there will be a disease issue.

disease triangle

Though we can see the triangle forming, we can’t always predict how strong the pathogen will spread or how strong it will be. Because we are unable to make this prediction, prevention and planning are key to stopping the spread of diseases.

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CHS Drayton Morning Market Wire

All locations will be closing Wednesday January 30 at 11:00am for Safety Training.

We will be having Marketing Meetings on February 5th at 9:00am in Cavalier and 12:00pm in Drayton.

Market Summary

Corn closed unchanged this morning with the March contract trading a narrow one cent range overnight.  March corn is holding above most moving averages and 8 cents below its 200 day moving average of $3.88.  Support comes from adverse weather in South America and ideas of a smaller corn yield for the final production numbers.  Look for mostly steady trade today as the market awaits fresh supportive news.

Soybeans traded lower overnight as South America received some light, scattered precipitation.  The March contract is currently just below the 200 day moving average of $9.22.  Prices garnered support last week on ideas of sizeable reductions to the Brazilian soybean crop from continued dryness.  Look for lower trade on rains in Brazil and lack of Chinese interest in U.S soybeans.

Spring wheat traded higher overnight bouncing off the low of the recent trading range.  Ideas that Russian exports may slowdown also provided support.  U.S/China trade talks will also be focus; will they confirm the recent rumor that China will buy 3-7mmt of U.S wheat?  Look for higher trade today on hopes of improving demand of U.S supplies.

Compass contracts are a great way to market your new crop by pricing grain daily at a fixed higher futures price.  Below are today’s closing bids for two types of compass contracts we offer. If you would like to make an offer or would like more information please give me a call at the office. (All compass contracts have a 48 hour probation period.)

Price Builder BonusDaily Price PlusFutures at 8:00am
SX19 (Nov)$10.10$9.90$9.61
CZ19 (Dec)$4.25$4.21$4.02
MWZ19 (Dec)$6.28$6.15$6.02

Below is the third compass contract we offer which pays you a premium for your old crop for potentially selling the same amount of new crop.  You only sell the new crop if the futures is equal to or greater than the target price on the trigger date.  There are many different premiums and target prices available. Please call for more info!

Old Crop PremiumNew Crop TargetTrigger Date
0.166.40 MWZ1911/20/2019
0.2510.20 SX1910/23/2019
0.184.10 CZ1911/20/2019

Futures markets as of 8:30 AM

Minneapolis Wheat:MWEH195.77+0.02
Kansas City HRW:KWEH195.12+0.02
Soybeans:SH199.20-0.04
Corn:CH193.800.00

CHS Drayton Cash Prices

Spring Wheat:5.32-0.45 basisJanDelivered Drayton
Winter Wheat:4.32-0.80 basisJanDelivered Drayton
Corn:3.26-0.54 basisJanDelivered Drayton
Soybeans:7.90-1.30 basisJanDelivered Drayton

Spring Wheat Protein Scales

-.02 cents ea. 1/5 down from 14.0% to 13.0%
-.02 cents ea. 1/5 down from 13.0% to 12.0% (Max -0.20)
+.02 cents ea. 1/5 from 14.0% to 15.0%

Any information, materials and opinions (together, “CHS Materials”) presented by CHS to the recipient of such CHS Materials, whether in written or oral form, is for general information purposes only and does not constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. CHS makes no warranties, representations or undertakings, whether express or implied, about any CHS Materials (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of any CHS Materials). Recipient agrees that CHS shall not be liable to recipient relating to or resulting from the use of any CHS Materials or any inaccuracies or errors therein or omissions therefrom.

CHS reports $347 million first quarter fiscal 2019 net income

Winter scene

CHS Inc. has reported a net income of $347.1 million for the first quarter of fiscal 2019. “Our strong first quarter results position us well as we start our 2019 fiscal year,” said Jay Debertin, CHS president and chief executive officer. “We are focused on making CHS our customers’ first choice by advancing our technology solutions and equipping employees to meet the changing needs of our customers around the world. We will do this while maintaining financial discipline and rigor.”

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CHS owners elect five directors at CHS Annual Meeting

chs board of directors at CHS Annual Meeting
CHS elected five directors at the CHS Annual Meeting.
Pictured (left to right) are: David Beckman, David Johnsrud, David Kayser, Russ Kehl and Steve Fritel.

The 2018 CHS Annual Meeting wrapped up December 7 as more than 1,900 CHS member-owners took part in educational sessions, board elections and governance, and heard company updates in Minneapolis, Minnesota. A recap of the meeting, including the 2018 CHS Annual Report, videos and photos is ready to view.

During CHS Board elections Friday morning, CHS owners elected a farmer from Nebraska and re-elected four other farmers to serve three-year terms on the board. CHS Directors must be full-time farmers or ranchers to be eligible for election to the 17-member board.

Newly elected Director David Beckman of Elgin, Nebraska, succeeds Don Anthony of Lexington, Nebraska, who retired after serving on the board since 2006. Along with his wife, brother and their families, Beckman raises irrigated corn and soybeans and operates a custom hog-feeding operation. He received his bachelor’s degree in agronomy from the University of Nebraska-Lincoln, and he serves as board chairman for Central Valley Ag Cooperative, York, Nebraska, and secretary of the Nebraska Cooperative Council.

Re-elected were Steve Fritel, Rugby, North Dakota; David Johnsrud, Starbuck, Minnesota; David Kayser, Alexandria, South Dakota; and Russ Kehl, Quincy, Washington.

Following the annual meeting, the CHS Board re-elected Dan Schurr, LeClaire, Iowa, to a one-year term as chairman. Other directors selected as officers for 2019 were:

  • J. Blew, Castleton, Kansas, first vice chairman
  • David Johnsrud, Starbuck, Minnesota, secretary-treasurer
  • Jon Erickson, Minot, North Dakota, second vice chairman
  • Steve Riegel, Ford, Kansas, assistant secretary-treasurer

Learn more about the CHS Board of Directors.

© 2019 CHS Inc.