This article first appeared in the LIFT newsletter, a publication of CHS Agronomy. Read the entire article.
As growers finalize planting preparations and plan in-season fertilizer and sidedress applications, they may be looking for solutions for micronutrients deficiencies identified by soil or tissue sampling on their most productive acres. What are the most essential micronutrients and what products can help with yield and profitability?
The essential micronutrients include Zinc (Zn), Iron (Fe), Boron (B), Copper (Cu), Molybdenum (Mo) and Manganese (Mn).
They are considered micros because they are needed in smaller amounts compared to macronutrients by the plant.
Many micronutrients hold the key to how well the other nutrients are used; attribute to how well the plant develops and effects the total yield it will produce come harvest.
They also help feed the microorganisms in the soil to perform important steps in various nutrient cycles of the growing process.
We are limiting access at all locations and have eliminated walk-in traffic. Our staff members are available via phone (calls and texts) and email to fully serve your needs during this time.
We have restricted face-to-face meetings. Our sales staff will conduct business via phone, text or email. As a company that prides itself on the relationships we have built, this will be a difficult change. However, face-to-face meetings pose a greater risk for all parties. If you need to conduct critical business that requires an in-person meeting, please call for an appointment to confirm access to the facility and availability of staff. All visitors to our office will be required to complete a questionnaire before entering our facilities.
All grain checks and contracts and fertilizer booking contracts will be mailed out.
To price grain or talk about markets speak with:
Eric in the Sterling office at 701-387-4506 or cell at 308-222-0511
Ashley (working from home) on her cell at 701-301-2394
Direct deposit is an option for receiving payment for your grain. Talk to a member of our staff if you’d like to get set up.
Hours of operation: 7:00am to 5:00pm Monday through Friday.
Grain deliveries: Drivers will remain in their truck. We will communicate through a PA system as to which pit to go to (1 or 2) and to dump or wait. Drivers will dump themselves and staff will remain in the scale room.
We have signage on the doors to help guide everyone.
Sterling Agronomy Center:
Hours of operation: 8:00am to 5:00pm Monday through Friday (Will adjust once agronomy season begins)
For dry fertilizer loading: Drivers will remain in their truck. Call Tanner at the number above for loading instructions.
For chemical and seed pickup/delivery: Call ahead. We will get what you need put together and have it ready when you arrive. Please remain inside your truck and we will load your vehicle for you.
Hours of operation: 7:30am to 5:00pm Monday through Friday, Saturdays closed until necessary to be open, (ie busy feed season).
Elevator Office: 701-754-2573
Pat Peterson, Location Manager: 701-319-5266
Feed/livestock: Call ahead with orders so we can prepare them and deliver them curb side for pick up to limit your and our exposure points
Grain deliveries: Please stay in your truck. We will direct you using the PA and card system.
We will do everything we can to provide the customer service you are accustomed to but will be using a little different approach and communications with today’s environment.
Hours of operation: 8:00am to 5:00pm Monday through Friday
Grain deliveries: Drivers stay in truck. Stop at probe and an employee will communicate through the PA system with you. You will receive directions on where to dump and will remain in your vehicle while we unload your grain.
Feed/Livestock: Call ahead with orders. Drivers stay in your vehicle. We will load you with what you need. After loading we will print an invoice in the office and bring it to you for a signature before you leave.
We are pleased to share our second quarter results for fiscal year 2020. We reported net income of $125.4 million for the second quarter of fiscal year 2020, which ended Feb. 29, 2020. This compares to net income of $248.8 million in the second quarter of fiscal year 2019.
The company reported revenues of $6.6 billion for the second quarter of fiscal year 2020 compared to revenues of $6.5 billion for the second quarter of fiscal year 2019. In the first six months of fiscal year 2020, CHS reported net income of $303.3 million compared to net income of $596.3 million in the first six months of fiscal year 2019.
As our essential businesses work to meet spring season demands amid the COVID-19 pandemic, we continue to focus on the health and safety of every person and community connected to CHS and the cooperative system.
We want you to know that CHS remains fully operational and committed to providing the essential products and services you need. Our supply chain is prepared and moving into action as spring fieldwork begins. Grain is moving and the spring shipping season has begun. We are grateful for those positive signs.
Thank you for your business. Please let us know how we can help you navigate through the days and weeks ahead.
As you are aware, the impact of the global pandemic caused by COVID-19 continues to rapidly evolve. Safety is a core value for CHS South Central and includes a focus on the health and wellbeing of our employees, families, customers and owners, and the communities in which we live and work.
We understand that spring is here, and I want to emphasize; we are operational for business. We are simply adjusting some protocols. CHS South Central has implemented the following changes effective Monday, March 23rd, until further notice:
We are limiting access at all locations. We respectfully ask you to contact us through phone or email whenever possible. Some of our locations have enacted split shift schedules; staff that can work remotely, have been asked to do so and will be available via phone or e-mail.
If you need a grain check, please contact us and we will mail it promptly, deliver it to local bank for deposit or setup a pickup location outside of the office.
All visitors to our office will be required to complete a questionnaire before entering our facilities. We are also asking all staff and visitors to adhere to the 6-foot distance recommended by the CDC to reduce virus spread.
We have restricted face-to-face meetings. Our staff will conduct business via phone, text or email. As a company that prides itself on the relationships we have built, this will be a difficult change. However, face-to-face meetings pose a greater risk for everyone involved. If you need to conduct critical business that requires an in-person meeting, please call for an appointment to confirm access to the facility and availability of staff.
We ask you to call ahead for product pickup whenever possible, our team will ensure that everything is ready to load upon your arrival.
For those customers or vendors delivering grain or picking up products, we ask that you limit your time in the office to essential business. At some locations, we are asking drivers to remain in their cab. Please check our location policies or watch for information and direction upon arrival.
We will adjust our practices as necessary in the coming days, weeks or months. Rest assured, it is our commitment that we will continue to provide excellent service and support throughout this unprecedented time, even if we must do it differently. We value your business, your trust in CHS South Central and appreciate your understanding during this time. We look forward to resuming normal interactions as soon as it is deemed safe to do so.
With the impact of the global pandemic caused by COVID-19 evolving rapidly, we want to reassure you that CHS is taking steps to protect the health and safety of our employees, our owners and customers, and the communities we serve.
We are developing plans with the goal of continuing to provide the highest possible level of service to our customers and owners. Specific measures include:
Close coordination and collaboration to ensure safety and wellbeing of employees, customers and communities
Cancelation of annual meetings and other meetings of large groups and limiting visits to CHS facilities
Additional use of voice, video and other technology to serve you, our customers and coordinate farm visits
Activating plans to flex employees between locations or business units to better serve you
New process and rigor for interactions with vendors, suppliers, contractors or other third parties to promote health and safety
Fully utilizing our powerful and flexible supply chain and asset base should it become necessary to deliver to or from alternate locations
As the busy spring season unfolds, we will continue to adjust as circumstances change. We don’t take this challenge lightly, but we’re committed to working through it with effective planning, communication and execution. With our talented and committed team, best-in-class assets and our values of safety and cooperative spirit, we are confident CHS will continue to deliver products and services for customers and value for owners.
Grain bins can be dangerous places. Purdue University researchers report that bin-related injuries such as entrapments, equipment entanglements and asphyxia are on the rise – more than 60 incidents occurred in the U.S. in 2018.
As part of our commitment to safety as a core value, CHS is partnering with other ag industry leaders to support Grain Bin Safety Week, Feb. 16-22. Here are the top three things you can do to promote safe practices around grain bins: (more…)
Decrease the risk of cold-weather downtime with the right diesel.
When temperatures drop, a farmer’s work doesn’t stop. Keeping equipment running at its peak during colder weather requires a watchful eye on what’s in your fuel tank.
Here’s the main problem that comes when temperatures drop: Diesel fuel hits its cloud point — the temperature at which wax crystals begin to appear in the fuel, also known as gelling. Cloud point is reached in #2 diesel fuel when fuel temperatures hit 4 to 14 degrees Fahrenheit, depending on where you buy your fuel, says Chad Christiansen, manager of product quality and additives for CHS. (more…)
Significant increase in fall propane demand helped balance difficult market conditions
CHS reported net income of $177.9 million for the first quarter of fiscal year 2020 that ended Nov. 30, 2019. This compares to net income of $347.5 million in the first quarter of fiscal year 2019.
The results for the first quarter of fiscal year 2020 reflect:
Revenues of $7.6 billion compared to revenues of $8.5 billion for the first quarter of fiscal year 2019.
Strong supply chain performance in our propane business that was a positive contributor resulting from efficient sourcing of propane during significantly increased fall demand – brought on by unseasonably early cold and wet weather during harvest – for crop drying and home heating.
Less advantageous market conditions in our refined fuels business compared to the first quarter of fiscal year 2019, during which the company experienced historically wide pricing spreads between Canadian crude oil and crude oil from the United States. CHS processes Canadian crude oil at its refineries in Laurel, Montana, and McPherson, Kansas.
Poor weather conditions that occurred in fiscal year 2019 and the first quarter of fiscal year 2020 continued to negatively impact our Ag segment’s operations, resulting in lower crop yields, poor grain quality in some areas and lower fall crop nutrients sales.
Pressure on grain volume and margins due to slow movement of grain associated with unresolved trade issues between the United States and foreign trading partners.
Decreased fertilizer volumes compared to the first quarter of fiscal year 2019 due to a slow harvest in the first quarter of fiscal year 2020.
“We are not immune to the challenges of our industry, and our first quarter results reflect the difficulties brought on by fall weather and ongoing trade tensions,” said Jay Debertin, president and CEO of CHS Inc. “The cooperative system, however, provides CHS and its owners stability to withstand these difficult times. Our focus remains on building efficiencies in our supply chain and on operating in this challenging agricultural environment.
“During a cold and wet harvest, we leveraged our supply chain to meet the significant increase in propane needs of our owners and customers,” Debertin continued. “Our focus on meeting the needs of our owners helped deliver the successful launch of two products – Acuvant™ and Trivar™ – that will be available for spring planting.
“We know the remainder of fiscal year 2020 will continue to present challenges, and we are confident in our ability to find opportunities in those challenges, to help our owners grow their businesses and to continue to strengthen our company,” he said. “No one feels those challenges more than our owners. We remain committed to supporting communities and experts as they address the stress felt across rural America.”
First Quarter Fiscal 2020 Business Segment Results
The following segment results were reported for the first quarter of fiscal year 2020 as compared to the first quarter of fiscal year 2019.
Pretax earnings of $162.2 million in the first quarter of fiscal year 2020 compared to $232.5 million for the first quarter of fiscal year 2019 reflect:
Significantly less advantageous market conditions, driven primarily by decreased crude oil spreads on heavy Canadian crude oil processed at our refineries and, to a lesser extent, decreased crack spreads in our refined fuels business compared to the same period during fiscal year 2019. The decreased crude oil differentials and lower crack spreads were partially offset by favorable hedging activity in refined fuels.
The decrease in pretax income for refined fuels was partially offset by significantly improved propane margins from a late, wet crop combined with unseasonably cold weather across much of CHS service area that led to increased fall demand for crop drying and home heating compared to the first quarter of fiscal year 2019.
Pretax loss of $13.9 million compared to pretax earnings of $80.3 million in the first quarter of fiscal year 2019 reflects:
Poor weather conditions in fiscal year 2019 that culminated in a late and smaller fall harvest, resulting in decreased demand for farm supplies and crop nutrient products.
Ongoing global trade tensions between the United States and foreign trading partners continued to negatively impact grain volumes and margins.
Lower margins in our processing and food ingredients business.
Pretax earnings of $16.5 million compared to pretax earnings of $23.7 million in the first quarter of fiscal year 2019 reflect:
Lower equity income from our investment in CF Nitrogen, of which CHS has partial ownership, attributable to decreased market pricing of urea and urea ammonium nitrate, which are produced and sold by CF Nitrogen.
Corporate and Other
Pretax earnings of $20.7 million compared to pretax earnings of $30.8 million in the first quarter of fiscal year 2019 reflect:
Results primarily from lower equity income from our investments in Ardent Mills and Ventura Foods and decreased income in our financing and hedging businesses due to market-driven interest rate reductions and lower trading activity, respectively.
AgPro magazine has nominated Trivar™ fertilizer additive from CHS Agronomy as one of 10 finalists for its 2019 New Product of the Year award!
The AgPro New Product of the Year competition puts the best new inputs, equipment, technologies and other products head-to-head against each other in a people’s choice contest.