Despite tough year in ag, 2017 is financially strong at CHS Grainland

    This year’s CHS Grainland annual meeting, held March 8 at the Event Center, had some new faces. In his first year as chairman of the producer board, Chad Osborne welcomed producer-owners. Also new to his position, CHS Grainland general manager Evan Fust delivered a report of 2017.
    “The ag economy has been a challenging landscape for the past few years, but I believe we are nearing the bottom and are looking towards a brighter future,” Osborne said. In introducing Fust, Osborne explained that a national search for a new GM when Rick Unrein retired led to three candidates being interviewed. CHS Grainland was particularly impressed by Fust’s passion for the cooperative system.
    Fust, who wasn’t with CHS Grainland for any of the last fiscal year, took the reporting in stride. He reviewed highlights from the previous year but focused heavily on goals and priorities for the future. For starters, he wants to utilize and leverage the assets the co-op already has, including the shuttle loader, which has already been performing surprisingly well. There will also be an emphasis on talent development, using CHS training and education resources to keep local employees sharp.
    Foremost, CHS Grainland will strive to listen to owners. Fust said that’s the key to the co-op’s overall success.
    Noting he was impressed by the operation even before he applied for his position, Fust thanked the leadership team and all the employees, recognizing the sacrifices their families make as well. He went on to thank the board, customers and patron-owners, who are the co-op.
    Safety director Todd Workman also spoke to members about some of the company’s safety accomplishments in the last year. They are averaging 55 safety events per employer each year. Workman commended the employees for their efforts and said that safety ultimately puts money back into the bottom line.
    
Financial report given
    Fust also gave the CHS Grainland financial report for fiscal year 2017, which ended Aug. 31, 2017. Sales from grain and merchandise totalled $117,416,477. Decreased sales compared to 2016 were due mostly to lower grain prices rather than volume, a fact producers certainly felt.
    Gross savings were $17,684,003, down just slightly from 2016. 2017 personnel expenses totaled $6,723,024, and total expenses came in at $15,122,874, down almost $1.4 million from the previous year. Patronage dividends were $60,595.
    Total net savings for 2017 were $2,622,065, which was up 76 percent from last year’s $1,488,018. Fust noted it was a strong year financially for CHS Grainland. Of particular note, there was a 9 percent reduction in expenses. In an industry that is at the mercy of Mother Nature, Fust emphasized the importance of discipline and controlling expenses.
    
Agronomy report given
    Anthony Brass, general manager of the agronomy internal partnership, gave a report as well. Total margins for 2017 were 9,324,392. Expenses totaled $9,041,181. Local savings came in at $283,211, and patronage was $120,659. Total net savings was $403,870.
    Brass pointed out that AIP saw a nice turn around from the previous year. He also introduced Agellum, a farm planning and management technology platform offered by CHS.

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