In the 1990s, Harvest States Cooperatives, a predecessor to CHS Inc., offered Equity Participation Units in its wheat milling and oilseed processing and refining operations. The operations were designated as Defined Business Units, made up of Defined Members and governed by Defined Member Boards. Defined Members had the right and obligation to annually deliver the number of bushels of wheat or soybeans equal to the number of Equity Participation Units purchased.
In 1998, Harvest States and Cenex combined to form CHS. Three years later, in 2001, the CHS Board voted to end the oilseed and wheat milling Defined Business Units and “buy back” the Equity Participation Units owned by Defined Members. The decision was unanimously endorsed by the Defined Member Boards and was reviewed and unanimously endorsed by the CHS Board Capital Committee before approval by the CHS Board.