2018 Propane Contracts Coming Soon!
Propane contracting options will be hitting the mail soon! We've had to make an adjustment to our contracting process to abide by new requirements from our safety and legal teams. The new process requires us to generate your propane contract directly out of our accounting system, therefore we need to know your contract selection BEFORE we can have you sign it to agree to the terms and conditions. We apologize for the inconvenience, but hope with the many ways you can communicate your selection with our team, we can make it as easy as possible. Once you receive your contract offering and have made your selection, please complete the form return the form included and will get you your 'official' contract form in the mail! Thank you for your patience as we work together through this new process.CHS Board addresses 2016 equity management; delays individual equity redemption program changes
The CHS Board has delayed implementation of the company’s new individual equity redemption program, a decision made following its regular review of the CHS equity management program.
“This decision was made as we considered a number of factors, including our commitment to balance sheet management and the current economic cycle,” says CHS Board Chairman Dave Bielenberg. “CHS remains financially sound and profitable, but as we navigate this economic cycle, the board believes this delay was appropriate as we continue to take a long-term view in managing equity redemptions.”
When effective, the new program would add “age of equity” distribution like that now used for member cooperatives to the existing “age of producer” program. It had been set to take effect with redemptions made based on individuals’ fiscal 2016 (Sept. 1, 2015 – Aug. 31, 2016) business with CHS. It is now slated to take effect for fiscal 2017 (Sept. 1, 2016 – Aug. 31, 2017) business and will affect distributions taking place in fiscal 2018, although the board will continue to evaluate this timing as part of its overall equity management review.
In the meantime, CHS will continue to redeem 100 percent of individual equity upon request to producers age 70 or older and to estates. As previously announced, producers who have already received a full equity redemption at age 70 will receive any future patronage distributions as 40 percent cash and 60 percent equity.
While specific amounts of patronage distributions and equity redemptions will be reported after CHS reports fiscal 2016 results in November, Bielenberg adds that the company intends to return 40 percent of patronage earnings in cash. He also notes that CHS will not issue non-qualified equity for fiscal 2016 and will pass through unused portions of the company’s Section 199 domestic production deduction (DPAD) to eligible owners.
To date, CHS has redeemed previously earned member cooperative equity through a portion of 2006, well ahead of the CHS Board’s goal of maintaining age of equity at about 15 years and a significant improvement from age of equity at 40 years earlier this decade.
In addition, the CHS Board has also determined that the company will return 40 percent of fiscal 2016 patronage earnings to eligible member cooperatives in cash. The company will not issue non-qualified equity for fiscal 2016 and will pass through unused portions of its fiscal 2016 Section 199 domestic production deduction (DPAD) to eligible owners.
2016 Wheat Harvest News
- LDP - Producers, please make sure you get in touch with your local county FSA Office to get Page 1 filled out for your LDP Payments. Please click here to review today's LDP rates.
- New Field or Split Information - Please contact your local branch or the grain team in Yuma to notify us of any new field or split information, so that we can ensure we get your tickets properly identified and accurately applied to contracts.
- Protein Premium Scale- Please see below for the Premium Scale (effective 7/5/16). To view the complete Premium & Discount Schedule, please click here.