CHS reports fiscal year 2020 net income of $422.4 million

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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Jay Debertin: Update to CHS owners

Jay DebertinDear 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.

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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Warning signs your diesel is water-contaminated

By Chad Christiansen, Product Quality and Additives Manager in Agriculture and Farming, CHS from the Cenexperts blog

filling a tractor with diesel fuel

Farmers have enough on their plates without needing to deal with water in their diesel. Despite their best efforts, though, sometimes accidents happen. Luckily, there are ways to remove water from diesel and methods to prevent water contamination from happening again.

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CHS Pro Advantage

Join us to hear about market updates, CHS Pro Advantage

We may not be meeting in person right now, but we still want to bring you valuable information to navigate volatile and weak commodity markets. Please join us online to discuss the markets and learn more about CHS Pro Advantage for corn, soybeans and wheat on Tues., Aug. 4, 10 a.m. CST.

During this 30-minute broadcast, Preston Zacharias with CHS Hedging will talk about recent market trends and give a CHS Pro Advantage program update. There will be time for questions at the end.

CHS Pro Advantage is a simple way to take some of the stress and worry out of selling your crops.

Diversity your marketing

  • Take some of the emotion out of grain marketing
  • Turn decision-making over to experienced traders
  • Gain insights that help you when selling other bushels
  • Have benchmarks for evaluating your marketing plan
  • Save time so you can focus on the rest of your operation

Questions for Preston can be submitted ahead of the webinar. To do so or if you have any questions about this event, please contact your local grain team.

Please note that there is a login step for webinar participants.

LOGIN BEFORE JOINING THE WEBINAR!

CHS Market Update and Pro Advantage Broadcast
Tues., Aug. 4.
10 a.m. CST

Please click here to enter your name and location information shortly before the webinar starts.

The link will become active 15 minutes prior to the start. To allow time for the registration process, we ask that you plan to register at least five minutes before the webinar starts.

This communication is a solicitation and for informational purposes. There is a risk of loss when engaging in these kinds of transactions.

Bringing live market information directly to you

 

CHS will be bringing market information directly to its growers in a new way on Tuesday, July 14.

In light of current conditions with COVID-19 across the United States, we will be bringing market information to you virtually, rather than in-person meetings like we’ve done in the past.

On Tuesday, July 14, there will be two different live broadcasts to talk about corn, soybeans and wheat markets.

At 10am CST on Tuesday, July 14, Chris Stringer, global trade team lead, corn, CHS Global Grain Marketing, and Justin Friesz, global trade team lead, soybeans, CHS Global Grain Marketing, will be sharing their perspectives on the current markets, the July 10 USDA report, and more. At noon CST on the same day, Bruce Weber, director of risk management, wheat, CHS Global Grain Marketing, will be sharing insights on the current wheat market, the July 10 USDA report and more.

These sessions will be held on Skype Broadcast. Skype is a web-based meeting so it’s very user friendly for you to join in using your computer, tablet, or phone.

Please note that there is a login step for webinar participants, so please login before the webinar begins.

Corn and Beans (10 a.m. Central) : Please click here to enter your name and location information shortly before the webinar starts.

Wheat (noon Central): Please click here to enter your name and location information shortly before the webinar starts.

The links will become active 15 minutes prior to the start. To allow time for the registration process, we ask that you plan to register at least five minutes before the webinars start.

We hope you can join us for these Grain Market Updates and reach out to your local CHS Grain Origination team with questions.

Freeing phosphorus: New ways to add crop nutrient availability

An innovative option makes broadcast crop nutrient applications more available.

Farmers wouldn’t be satisfied with just 20 percent weed control from a herbicide application, but that’s typically the best nutrient availability they can expect from dry phosphate fertilizer applications.

“Under the best soil conditions, only one-fifth of applied phosphorus may be available to the crop throughout the season,” says Steve Carlsen, Levesol and crop enhancement manager, CHS Agronomy. “Availability is even less when soil pH levels are too high or too low or in soils that contain too little organic matter.”

The remaining 80 percent of unused phosphorus doesn’t help fuel yield and can be susceptible to loss through runoff or soil erosion, he says. Effects have been documented in lower Chesapeake Bay tributaries on the East Coast and in the Lake Erie watershed, which includes portions of Ohio, Indiana and Michigan.

In many of those areas, phosphorus application regulations and management strategies have been adopted or are being discussed and other states may join the list, says Carlsen.

Better Broadcast

“The good news is that growers have a new tool to help maximize phosphorus efficiency in their fields,” says Carlsen. “Trivar™ fertilizer additive was developed specifically for use on dry phosphate fertilizers for broadcast applications.”

Carlsen says broadcast application of phosphates is used on about 10 times more acres than in-furrow phosphorus applications are used. “CHS Agronomy created Trivar to be applied to dry phosphate forms used for fall or spring applications, including DAP, MAP, triple superphosphate and other sources.”

Soil pH, organic matter levels and cation exchange capacity are the three main factors that impact phosphorus availability, he says. “Those soil characteristics aren’t easily changed.”

Until now, three short-term solutions have been most effective for maximizing phosphorus availability to the crop while committing to improved fertility practices:

  • In-furrow applications that place fertilizer close to the seed and developing roots
  • Prescriptive applications that tailor rates to soil needs and yield potential
  • Applications based on the 4Rs: right source, right rate, right time and right place

“Using Trivar means one small change in the handling process at the retailer before application can significantly improve phosphorus efficiency,” Carlsen says.

Three-Way Action

Trivar uses three key modes of action to improve phosphorus availability for better plant nutrition.

1. The Levesol chelate prevents micronutrients from binding with phosphorus in the soil, making key micronutrients and phosphorus more available for plant uptake. It is an ortho-ortho EDDHA chelate known as one of the strongest and most effective chelating agents available. The chelate works with a wide range of soil pH levels, organic matter levels and cation exchange capacity levels, says Carlsen. “This allows Trivar to be effective across a wide variety of soil types and conditions.”

“Levesol is a proven technology that’s been used as an in-furrow application for more than 18 years,” he adds. “With Trivar, we are able to make its benefits available for more growers using broadcast applications.”

2. A nutrient-focused enzyme (phosphatase) converts plant-unavailable organic phosphorus to a readily plant-available inorganic form. The enzyme starts working immediately to free up unavailable phosphorus in the soil.

3. Zinc and boron in Trivar improve use of important micronutrients to boost overall plant nutrition. Zinc drives critical plant growth and development, while boron promotes root growth and helps regulate calcium, magnesium and potassium in the plants, Carlsen explains.

Trivar Gains Industry Recognition

Trivar™ fertilizer additive from CHS Agronomy is getting attention, including being named runner-up in the AgPro 2019 New Product of the Year award program.

Each year, AgPro readers — retailers, agronomists and crop consultants — vote for the product they think will have the most positive impact on agriculture.

“Response to Trivar has been positive. Most growers quickly recognize its agronomic and economic potential,” says Steve Carlsen, Levesol and crop enhancement manager, CHS Agronomy.

Compared to the great strides plant breeding and equipment technology have made in recent decades, changes in crop fertilization practices seem modest, he adds, but “Trivar represents a major advancement in improving phosphorus efficiency that is simple to use and affordable for growers.”

Bigger Yields

“Any yield increase beyond a few bushels per acre provided a positive return on investment, and most growers saw yield bumps well above that,” he says.

In northeast Nebraska, Jared Jessen, agronomy sales manager for CHS Wausa, reports growers using Trivar for the first time saw average yield increases of 6 bushels per acre, with some fields adding as much as 8 bushels per acre, depending on pH and other contributing factors.

Last season’s challenging growing conditions allowed the value of Trivar to shine, says Carlsen. In third-party and university replicated corn trials in Iowa, Ohio, South Dakota and Arkansas fields, when phosphate fertilizer treated with Trivar was broadcast before planting, yield increased by an average of 6 bushels per acre over fields that received the same phosphate application without Trivar.

corn yield increase with Trivar use graph

Jessen says there were other benefits as well. “Plants had deeper color throughout the growing season, which is typically a sign of good plant health, and we saw improved stalk strength at harvest.”

Wausa, Neb., farmer Neal Seagren used Trivar-treated MAP on all his corn acres in 2019 and saw a 5- to 6-bushels-per-acre yield increase. “We had noticeably better root development compared to plants of the same hybrid from a neighboring field that didn’t use Trivar.

“I think that was especially important in late-planted corn,” he adds. “Our last corn acres were planted the first week of June, but still yielded around 230 bushels per acre dryland.”

This season Seagren plans to use Trivar on his soybean acres, as well. “With current crop prices and tight margins, every bushel counts.”

Jessen recommends adding Trivar first for cornfields with the greatest variability. “I think at least 80 percent of acres where MAP is applied would see a good payback.”

Environmental benefits are definitely on growers’ minds, too, Jessen says. “There’s already a lot of scrutiny of nitrogen use, and phosphate use will be next here. This is a great tool for helping to reduce runoff, as well as making a farmer’s fertilizer investment more efficient.”

LEARN MORE: Get details at trivarfertilizer.com.

Check out the full C magazine with this article and more.

© 2020 CHS Inc.