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Changes in patronage pools for bulk fertilizer purchases will create potential value opportunities for eligible member cooperative crop nutrients customers.
The CHS Board of Directors recently approved the consolidation of patronage pools for bulk fertilizer (nitrogen, phosphates, potassium – NPK – and other bulk products) into a single dry bulk fertilizer rate. A separate rate will be retained for specialty products including starter fertilizers and nitrogen efficiency products which have significantly lower volumes, but typically higher rates. The revision is effective for products purchased during fiscal 2016 (Sept. 1, 2015 – Aug. 31, 2016) upon which any patronage distribution authorized by the CHS Board would be based for distribution in fiscal 2017.
“Given our recent connection to potentially enhanced patronage earnings stream created through the CHS investment in CF Industries Nitrogen, LLC, this change allows us to reward all eligible members who purchase any of our bulk crop nutrients product, even if they don’t have direct access to CF Nitrogen-sourced products,” says Rick Dusek, vice president, CHS Agronomy.
The ability to share in the economic success of a company with which you do business is a core benefit of being a cooperative owner, Dusek adds.
The program is consistent with that in place with many member cooperatives as well as that in place for individual producer-owners.