CHS distributes lowest profit share since 2021 amid farm and energy headwinds

CHS, the largest agricultural cooperative in the United States, said it will return $120 million to its owners in 2026, the smallest profit distribution since 2021. The payout compares with $600 million this year and $730 million in 2024.

The Inver Grove Heights, Minnesota-based co-op cited weaker margins in both agriculture and energy, sectors where it is heavily invested. “The energy industry is experiencing compressed refinery margins at the same time that U.S. agriculture is seeing a weaker farm economy with a globally competitive marketplace for grains and oilseeds,” said CHS president and chief executive Jay Debertin in a January statement.

Analysts say the smaller payout reflects broader challenges in the farm economy. The U.S. Department of Agriculture is forecasting potential record crop yields this year, a factor pressuring prices. At the same time, the country faces a growing agricultural trade deficit.

China, traditionally the largest buyer of U.S. soybeans, has not placed orders for the upcoming marketing year. Instead, it has shifted purchases to South America in the wake of trade disputes, further straining demand. “If soybean exports are that important to the demand side of the equation, and China is the most important factor in that export demand, their decision to go to South America is going to have a big impact on prices here,” said Edward Usset, a grain marketing economist at the University of Minnesota.

CHS, which operates more than 500 grain silos across the country as well as oil refineries, will report its full-year financial results in November.