Cooperative value
Discover the benefits of being part of a cooperative.
What is a cooperative?
Cooperatives are owned and governed by members who use their products, supplies or services. Co-op members find value in more buying power, better market access and having a voice in how the cooperative is managed. Working together for shared success, co-ops support their members and make communities stronger.
Benefits of cooperative ownership
Cooperative owners enjoy benefits that help them succeed:
- Gain market access
- Tap into global supply chains
- Leverage local expertise
- Earn patronage and equity
- Have a voice in co-op governance
- Benefit from long-term thinking
- Help communities thrive
Raise your voice
Being part of the cooperative system means your voice is heard as decisions are made. Co-ops like CHS represent farmers, ranchers and rural communities in Washington, D.C., and at the state and local levels.
Earn patronage and equity
Each cooperative creates its own patronage system, set by its board of directors and carried out by management. Regular review of patronage policies ensures they add value for owners and support the cooperative’s business strategies.
Patronage is based on three things:
- Adjusted earnings before taxes
- Owner business volume
- Cooperative patronage and equity policies
Cooperative decisions about patronage and equity deliver value for owners and fuel long-term cooperative growth. When a cooperative board calculates patronage, it also determines what portion will be retained as member equity in the organization. That equity is a key source of capital for cooperative maintenance and growth.
Cooperatives determine how to distribute patronage and/or equity to owners after the close of each fiscal year. When planned distributions of cash patronage and redeemed equity are complete in 2026, CHS will have returned nearly $2.6 billion to owners over the past five years.
Co-ops help communities thrive
Cooperatives provide jobs, build economic stability and support local services. Through the CHS Foundation and community giving programs, CHS helps develop the next generation of ag leaders.
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