CHS, Inc. to acquire West Central Ag Services, expanding global supply chain

USACHS, Inc., the largest farmer-owned cooperative in the United States, has announced the acquisition of West Central Ag Services, a cooperative based in Ulen, Minnesota.

Following a member vote approving the sale, the transaction is expected to close in the coming weeks. Financial details have not been disclosed.

The acquisition strengthens CHS’s footprint in the Upper Midwest, enhancing its ability to serve farmers in Minnesota and North Dakota while integrating West Central Ag Services’ operations into its global grain and agronomy supply chains.

CHS serves customers in 65 countries, providing crop inputs, market access, energy, and risk management solutions. With nearly 10,000 employees worldwide, CHS reported US$39 billion in revenues for fiscal year 2024, underlining its significant impact on the global agricultural industry.

Rick Dusek, CHS executive vice president of ag retail, distribution, and transportation, emphasized the strategic importance of the acquisition.

 “This is a major step forward for CHS as we continue to expand our reach and provide comprehensive services to our farmer-owners,” Dusek said.

Adding West Central Ag Services to our network enhances our ability to connect producers directly to global markets, offering both operational efficiency and broad market access,” he added.

West Central Ag Services was founded in 2000 and currently serves over 3,000 farmer-members.

Operating four grain facilities, nine agronomy centers, and one service location, the cooperative boasts a total licensed grain storage capacity of 22.5 million bushels.

Its 198 employees will join CHS as part of a new ag retail business unit named CHS West Central. This unit will continue to operate from Ulen, serving as a vital link in CHS’s global supply chain.

In 2023, West Central Ag Services recorded US$767 million in total grain and merchandise sales, with a net income of US$41.2 million, a significant increase from US$18.7 million in 2022. The cooperative’s strong financial performance underscores its value as a strategic addition to CHS.

The acquisition of West Central Ag Services is part of a broader strategy by CHS to invest in infrastructure and expand its global agricultural footprint.

Recent investments have included upgrades to grain export terminals, fertilizer plants, and transportation networks. These efforts aim to streamline supply chains, reduce costs for farmer-owners, and ensure competitive market access.

“CHS remains committed to delivering end-to-end value for our cooperative system and its owners. By integrating the expertise and resources of West Central Ag Services, we’re reinforcing our mission to create connections that empower agriculture,” Dusek added.

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