Bulk Fuel Storage Reminders

One important thing to remind all our customers to do during planting prep is to clean out dirt and other debris that has accumulated in your fuel tanks.  Debris can be pumped into equipment where it will cause build-up that leads to less-than-optimal performance and eventually can require expensive repairs. To reduce the risk, best practices call for fully cleaning out fuel tanks at least once per year and switching out filters each quarter.

Equally as important as getting rid of debris in tanks is keeping water out of the fuel supply. Fuel contaminated with water can cause decreased acceleration, loss of horsepower and, in some cases, engine damage that spells costly downtime. Water in the fuel also allows for microbial growth to form inside tanks that attack the fuel. Frosty springtime mornings add to risk with increased condensation.

Equipment today comes with water drain valves. As you prepare for a busy growing season, remember to use those valves to remove water from machinery, in addition to removing water from storage tanks regularly.

There is one extra-easy way to minimize water in equipment during the season, when you’re done working at the end of the day, take time to fill up the fuel tank. Condensation happens overnight — especially in spring weather — and reducing airspace by filling up tanks every day will reduce that risk.

For more information about bulk fuel storage or to learn more about the importance of Cenex premium diesel fuels, please contact your local sales representative. 

Nicolet Fire District Hosts Emergency Response Fire Training

The Nicolet Fire District, in partnership with the Wisconsin Propane Education & Research Council (WiPERC), is hosting an emergency response, live propane fire training on Wednesday, April 28, 2021 at 6:00 PM.   Approximately 50 fire fighters from the Nicolet Fire District, White Lake Fire Dept., Riverview Fire Dept. and the Doty Fire Dept. are expected to attend.  At times during the training, area residents may see flames shooting 20 feet or more into the air.  Local media and other observers are welcome to watch.

The training consists of classroom instruction on the physical properties of propane and a hands-on portion that includes five fire scenarios including a grill, forklift, bulk tank, and propane terminal piping props. All hands-on training is overseen by Wisconsin certified fire instructors, FIRE LLC and is conducted in accordance with NFPA 1403.The Doty Fire Dept. is providing local coordination and the location for the training.  WiPERC estimates the value of this training is $4,000 to $5,000 depending on the size of the group trained and the number of trainers required.  

Propane will be provided by CHS Larsen Cooperative, who is a WPGA member and participates in the propane industry check-off program, which provides the funding for this training.

The Wisconsin Propane Education & Research Council is the education foundation of the Wisconsin Propane Gas Association (WPGA). 

The training will be held at the Town of Doty Town Hall located at 14899 County Road T Mountain, WI  54149.

For more information on this program contact Emma Corning, WPGA/WiPERC Executive Director at emma@wipga.org or 608-210-3307.                

CHS Reports Fiscal 2021 Second-Quarter Results

CHS Inc., the nation’s leading agribusiness cooperative, today released results for its fiscal second quarter ended Feb. 28, 2021. The company reported a net loss of $38.2 million versus net income of $125.4 million in the same quarter in fiscal 2020. Significant year-over-year earnings increases in Ag and Nitrogen Production segments and Corporate and Other businesses were offset primarily by ongoing COVID-19 pandemic-related impacts in Energy.

“Improved trade relations between the United States and foreign trade partners combined with our operating efficiency initiatives led to record grain and oilseed volume increases and continued price gains, significantly improving our Ag segment earnings over the prior year,” said Jay Debertin, president and CEO of CHS Inc. “Additionally, favorable growing conditions and overall strength in agriculture, helped drive demand for crop inputs, including crop nutrients and crop protection products and services.

“Our Energy segment, while showing improvement over the previous quarter, continues to experience unfavorable refined fuels market conditions related to the COVID-19 pandemic and exceptionally higher costs for renewable energy credits. These factors resulted in volume and margin declines that significantly reduced earnings compared to the prior year.”

Fiscal 2021 second-quarter results reflect: 

  • Revenues of $8.3 billion versus $6.6 billion in fiscal 2020 second quarter, a 26.1% increase. 
  • Energy segment impacts that include:  
    • Continued low refining margins stemming from COVID-19-impacts on global energy demand.
    • Exceptionally high costs of renewable energy credits, which decreased margins.
    • Decreased propane margins and volumes due to warm winter weather conditions across the CHS trade territory during most of the fiscal 2021 second quarter.
    • Modest improvements over fiscal 2021 first quarter as volumes and margins began to rebound. 
  • Ag segment impacts that include:  
    • Favorable weather conditions and improved relations between the U.S. and foreign trade partners, including China, that increased volumes of grain and oilseed commodities as well as feed and farm supplies.
    • Higher margins for certain agricultural products, including processing and food ingredients, which improved because of soybean crush strength.
  • Enterprisewide initiatives that include:  
    • Focused cost-reduction initiatives launched in fiscal 2021 that helped reduce marketing, general and administrative costs.
    • COVID-19-related working arrangements and increased hygiene and infection-control processes to mitigate risk and support business continuity – all CHS operations were deemed to be essential infrastructure industries by federal and state governments.

For the six-month period ending Feb. 28, 2021, CHS reported net income of $31.4 million versus $303.3 million for the same period in fiscal 2020. Revenues for the first six months of fiscal 2021 rose to $17.0 billion, a $2.8 billion, or 19.8%, increase from $14.2 billion in the same period the previous year.

“I am encouraged by the resilience of our employees and their commitment to owners in what continues to be a challenging operating environment,” said Debertin. “We are cautiously optimistic about the rollout of COVID-19 vaccines and other progress being made in response to the pandemic in the U.S. and around the world and the potential impact on our domestic and global businesses.

“As we look ahead to the second half of fiscal 2021, we remain committed to protecting the financial health of CHS, adding efficiency throughout our enterprise to benefit owners and customers, and caring for those who depend on us as we continue creating connections to empower agriculture.”

CHS income chart

This document and other CHS Inc. publicly available documents contain, and CHS officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Report Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on CHS current beliefs, expectations and assumptions regarding the future of its businesses, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of CHS control. CHS actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause CHS actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in CHS filings made with the U.S. Securities and Exchange Commission, including in the “Risk Factors” discussion in Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended August 31, 2020. Any forward-looking statements made by CHS in this document are based only on information currently available to CHS and speak only as of the date on which the statement is made. CHS undertakes no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise except as required by applicable law.

Take a Critical Look at Your Open Silage Today

By now, you’ve opened up your new crop silage. This is a good time to assess both the silage — and the management decisions that got it there. Deciding what went right, and what went wrong, is helpful to ensuring an even better 2021 silage season.

Most silage challenges fall into one of two categories: dry matter (DM) loss or aerobic instability.

DM loss, or “shrink,” results in less available, and less high-quality, feedstuffs. This can occur due to many management factors but can be addressed by:

  • Harvesting at the right moisture and stage of maturity
  • Cutting at the correct length and with adequate processing (if necessary)
  • Using a proven inoculant to fit your needs
  • Packing tightly
  • Sealing the storage structure

Aerobic instability — often seen as heating — contributes to silage losses by leaving producers with spoiled feed that must be thrown out. In addition, heating normally reduces the forage’s nutritive value. Aerobic spoilage is caused by yeast growth in the majority of the cases. Yeasts need oxygen to grow, making the above management missteps likely suspects when there is heating, especially inadequate packing and sealing. Silages with high population of yeasts have lower nutrient digestibility (fiber, DM), and this leads to reduced animal intakes and performance.

At feedout, when silage is again exposed to air, spoilage yeasts “wake-up” and can grow rapidly, causing heating and spoilage. At this stage, common management practices can help reduce losses, including:

  • Keeping the silage surface tight and clean
  • Not removing silage too far ahead of feeding and leaving it sitting in loose piles, and/or
  • Feeding out at the correct rate

Inoculant choices can help address both DM loss and aerobic spoilage. For example, elite lactic acid bacteria and enzymes, like those found in MAGNIVA® Titanium forage inoculant, can maximize dry matter, nutrient retention and improve aerobic stability to deliver stable, high quality and palatable feed.

Forage inoculants including Lactobacillus buchneri NCIMB 40788 will be more resistant to heating and spoilage as this organism dramatically reduces yeast levels. L. buchneri 40788 applied at a minimum of 400,000 CFU per gram of silage, or 600,000 CFU per gram of high-moisture corn (HMC), has been uniquely reviewed by the FDA and allowed to claim improved aerobic stability.

By taking a critical look at this year’s silage, producers will be on their way to even better silage results next year.

Written by Renato J. Schmidt, Ph.D., Forage Products Specialist, Lallemand Animal Nutrition North America

Danger within: Know the risks of grain bin entry

Since 2014, Nationwide and partners including CHS, have provided 150 rescue tubes and grain bin safety training to local fire departments across 29 states to help keep farmers safe.

The interior of a grain bin is one of the most hazardous places on a farm, so the best way to resolve situations with stored grain is safely outside. If you must enter a bin, be sure to know what you might find and plan accordingly.

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Introducing an easier way to pay CHS

Sign-up to Pay Online Today

Pay Online is now available through the MyCHS app.

With Pay Online, anyone who has signed up for MyCHS can now easily pay statements or current balances securely from single or multiple bank accounts, view scheduled payments, and look up past online payments.

Pay Online saves you time and money as you no longer need to write and mail checks. Find the Pay Online feature in the lower-left hand corner. It’s easy to set up bank accounts so gather up your bank account number and routing number to get started today!

If you have not yet signed up for MyCHS, go to mychs.chsinc.com to register. Questions or comments, email MyCHS@chsinc.com or call 800-548-9727.

CHS to host February-March educational grain webinar series

CHS is kicking off the new year with a series of educational grain marketing webinars.

Tune in to hear from grain experts across CHS as they dive into all aspects of grain marketing, from futures to basis and all things in between. They will also be discussing grain marketing contracts and the benefits and strategies behind each type. All of this is designed to help you get the most out of every bushel.

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Dicamba-specific training is required to apply Engenia® herbicide.

Dear Engenia herbicide Customer,  

BASF is excited to announce new options for annual dicamba applicator training. This training is required for Engenia herbicide and other dicamba products approved for over-the-top (OTT) applications on dicamba-tolerant soybean and cotton.   

Join us to learn about new application requirements and label enhancements for the 2021 season. Applicator training and certification can be obtained in multiple formats based on your schedule and needs. Due to COVID-19, dicamba applicator training will be primarily available through online offerings such as a self-paced training module and live virtual webinars.  

Please visit www.engeniastewardship.com for training options:   

Self-Paced Online Module:  This self-paced option will take approximately 1 hour to complete and contains a quiz at the end of the module. Once the module is completed a certificate is displayed that should be kept for your records. You will have the option to print and/or save your dicamba certificate. It is recommended that you complete this training on a web browser through a computer with a reliable internet connection.   

Live Virtual Webinars:  Live webinars, hosted by BASF experts, provide the opportunity for interaction and Q/A. There are a total of 6 remaining events that are scheduled to occur every Tuesday @ 10 am eastern with the next one scheduled for January 26, 2021. Attendance is limited to the first 250 attendees per event so register early for the event that best fits your schedule. Live Virtual Webinars are scheduled for: 
January 26, 2021 @ 10 am eastern 
February 2, 2021 @ 10 am eastern
February 9, 2021 @ 10 am eastern
February 16, 2021 @ 10 am eastern 
February 23, 2021 @ 10 am eastern
March 2, 2021 @ 10 am eastern

As a reminder only certified applicators may apply Engenia herbicide or other OTT dicamba herbicides. Some states have additional restrictions and requirements. Check with your state pesticide regulatory agency for additional training and application requirements or restrictions. 

Original email sent by BASF Agricultural Solutions

CHS to Host Educational Grain Webinar Series

CHS is kicking off the new year with a series of educational grain marketing webinars.

Tune in to hear from grain experts across CHS as they dive into all aspects of grain marketing, from futures to basis and all things in between. They will also be discussing grain marketing contracts and the benefits and strategies behind each type. All of this is designed to help you get the most out of every bushel.

Understanding Grain Marketing: A CHS Educational Webinar Series

February 16: Intro to the Grain Markets- understanding how futures and basis work.

February 23: Basic Grain Marketing Contracts

March 2: Managed Price Contracts, Average Price Contracts

Please note, you must pre-register in order to attend.

Each session begins at 3 p.m. CST and is free to attend. Please pre-register for one or all sessions. The link for access will be sent prior to each session. Access is available by computer, tablet or smartphone.

We hope you can join us for this educational series. Reach out to your local CHS grain team with questions.

© 2021 CHS Inc.