CHS Board announces patronage and equity distribution
Patronage and equity are key benefits for owners of CHS and the cooperative system. CHS is committed to distributing patronage and redeeming equity for its owners while maintaining a strong balance sheet so it can continue to provide owners with the goods, services and supply chain capabilities required for long-term success.
Following the close of fiscal 2018, the CHS Board of Directors has announced the following patronage and equity distribution decisions:
- As in previous years, 10 percent of fiscal 2018 patronage-based earnings will be designated to the unallocated reserve to continue building balance sheet strength.
- CHS will return $150 million to its owners in cash patronage and equity redemptions.
- Individual member equity redemptions will include all requests made in fiscal 2018 by estates and members age 70 and older, plus requests that are made during fiscal 2019. Requests made in fiscal 2018 will be paid in the first quarter of fiscal 2019, which ends Nov. 30.
- Cooperative association equity redemptions in fiscal 2019 will include historic qualified equity certificates and a portion of non-qualified equity certificates issued in fiscal 2018 related to fiscal 2017 patronage.
- Both cash patronage and non-qualified equity redemption are targeted for payment in February 2019.
- Additional fiscal 2018 patronage will be distributed as qualified cash patronage and non-qualified equity certificates. Those amounts will be set when year-end financial reports are filed in November.
- CHS will pass $150 million in DPAD (domestic production activities deduction) benefits to eligible owners before Dec. 31, 2018.