Mild winter negatively impacts CHS bottom line

The mild winter negatively affected the bottom line of the nation’s largest agricultural cooperative.

CHS CEO Jay Debertin says margins declined in the company’s energy segment.

“With a winter that just never came (and) with a company that sells propane and heating oil and things like that, we definitely felt it that warm conditions, dry conditions in many parts just continued all winter long.”

He tells Brownfield reduced usage of propane and other refined fuels could result in lower input prices for farmers.

“We saw some decreases this last year, but we’ve kind of come through the winter a bit in a holding pattern. And that’s really impacting at least the beginning of farm income projections because commodity prices aren’t rallying today and input prices aren’t falling yet.”

Debertin says despite the decrease in energy earnings, the first half of fiscal 2024 has delivered overall good financial results for CHS.

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