##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
  Form 10-Q
  (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934for the quarterly period ended
    May 31, 2011.oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934for the transition period
    from          to          .   Commission File
    Number: 0-50150
  CHS Inc.
 (Exact name of registrant as
    specified in its charter)
   Minnesota

41-0251095(State
    or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification Number)5500 Cenex Drive
    Inver Grove Heights, MN 55077(Address of principal
    executive offices, including zip code)

(651) 355-6000(Registrants telephone
    number,
    including area code)   þ o
  Regulation S-T o o
  Rule 12b-2
  Large accelerated
    filer o

Accelerated
    filer o

Non-accelerated
    filer þ

Smaller reporting company
    o(Do not check if a smaller
    reporting
    company)   Rule 12b-2 o þ
    Number of Shares Outstanding atClass

July 8, 2011NONE

NONE




---



##### 





INDEX
   
 PAGENO.PART I. FINANCIAL INFORMATIONItem 1.

Financial Statements (unaudited)


3Consolidated Balance Sheets as of May 31,
    2011, August 31, 2010 and May 31, 2010


3Consolidated Statements of Operations for the
    three months and nine months ended May 31, 2011 and 2010


4Consolidated Statements of Cash Flows for the
    three months and nine months ended May 31, 2011 and 2010


5Notes to Consolidated Financial Statements


6Item 2.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations


21Item 3.

Quantitative and Qualitative Disclosures about
    Market Risk


39Item 4.

Controls and Procedures


39PART II. OTHER INFORMATIONItem 1A.

Risk Factors


40Item 6.

Exhibits


40SIGNATURE PAGE


41EX-10.2EX-10.3EX-10.4EX-31.1EX-31.2EX-32.1EX-32.2   1




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##### Table of Contents



PART I.
    FINANCIAL INFORMATION  SAFE
    HARBOR STATEMENT UNDER THE PRIVATE
    SECURITIES LITIGATION REFORM ACT OF 1995
  Form 10-Q Form 10-Q
 2




---



##### Table of Contents



ITEM 1.
    FINANCIAL
    STATEMENTS  CHS INC.
    AND SUBSIDIARIES
  CONSOLIDATED BALANCE SHEETS
  May 31,


August 31,


May 31,2011


2010


2010(Dollars in thousands)(Unaudited)ASSETSCurrent assets:Cash and cash equivalents

$
289,741


$
394,663


$
305,322Receivables


2,986,380



1,908,068



2,038,681Inventories


3,045,737



1,961,376



1,650,579Derivative assets


756,018



246,621



103,196Other current assets


1,528,559



805,741



466,043Total current assets


8,606,435



5,316,469



4,563,821Investments


569,922



719,392



653,460Property, plant and equipment


2,388,531



2,253,071



2,195,028Other assets


428,205



377,196



280,199Total assets

$
11,993,093


$
8,666,128


$
7,692,508LIABILITIES AND EQUITIESCurrent liabilities:Notes payable

$
1,099,971


$
262,090


$
213,811Current portion of long-term debt


90,768



112,503



108,336Customer credit balances


827,546



423,571



170,866Customer advance payments


776,232



435,224



268,344Checks and drafts outstanding


126,299



134,250



105,732Accounts payable


2,275,630



1,472,145



1,234,604Derivative liabilities


479,090



286,018



183,935Accrued expenses


440,954



376,239



320,868Dividends and equities payable


306,869



210,435



136,191Total current liabilities


6,423,359



3,712,475



2,742,687Long-term debt


949,082



873,738



915,504Other liabilities


502,267



475,464



456,079Commitments and contingenciesEquities:Equity certificates


2,318,651



2,401,514



2,182,100Preferred stock


319,368



319,368



319,368Accumulated other comprehensive loss


(196,596
)


(205,267
)


(157,624
)Capital reserves


1,343,417



820,049



972,357Total CHS Inc. equities


3,784,840



3,335,664



3,316,201Noncontrolling interests


333,545



268,787



262,037Total equities


4,118,385



3,604,451



3,578,238Total liabilities and equities

$
11,993,093


$
8,666,128


$
7,692,508    3




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
  For the Three Months Ended


For the Nine Months EndedMay 31,


May 31,2011


2010


2011


2010(Dollars in thousands)(Unaudited)Revenues

$
10,471,672


$
6,575,978


$
26,312,895


$
18,649,712Cost of goods sold


10,032,184



6,324,000



25,271,408



18,028,348Gross profit


439,488



251,978



1,041,487



621,364Marketing, general and administrative


103,596



96,024



304,382



268,585Operating earnings


335,892



155,954



737,105



352,779Gain on investments


(128,722
)


(10,368
)


(128,788
)


(24,143
)Interest, net


19,527



14,526



54,986



44,997Equity income from investments


(20,679
)


(29,682
)


(100,245
)


(80,782
)Income before income taxes


465,766



181,478



911,152



412,707Income taxes


59,849



21,983



87,081



44,518Net income


405,917



159,495



824,071



368,189Net income attributable to noncontrolling interests


47,433



14,046



69,264



20,122Net income attributable to CHS Inc.

$
358,484


$
145,449


$
754,807


$
348,067    4




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
   For the Nine Months EndedMay 31,2011


2010(Dollars in thousands)(Unaudited)Cash flows from operating activities:Net income including noncontrolling interests

$
824,071


$
368,189Adjustments to reconcile net income to net cash used in
    operating activities:Depreciation and amortization


159,884



151,603Amortization of deferred major repair costs


22,307



14,091Income from equity investments


(100,245
)


(80,782
)Distributions from equity investments


128,478



79,175Noncash patronage dividends received


(1,864
)


(1,902
)Gain on sale of property, plant and equipment


(4,366
)


(4,437
)Gain on investments


(128,788
)


(24,143
)Deferred taxes


12,290



24,136Other, net


(3,715
)


1,477Changes in operating assets and liabilities:Receivables


(784,389
)


(159,689
)Inventories


(1,082,915
)


(124,252
)Derivative assets


(507,530
)


69,827Other current assets and other assets


(731,357
)


(16,541
)Customer credit balances


403,975



(103,477
)Customer advance payments


341,008



(52,344
)Accounts payable and accrued expenses


874,720



(41,113
)Derivative liabilities


190,762



(122,181
)Other liabilities


3,728



3,471Net cash used in operating activities


(383,946
)


(18,892
)Cash flows from investing activities:Acquisition of property, plant and equipment


(214,138
)


(237,477
)Proceeds from disposition of property, plant and equipment


7,003



8,081Expenditures for major repairs


(88,042
)


(5,112
)Investments


(5,340
)


(15,389
)Investments redeemed


32,633



113,979Proceeds from sale of investments


225,000Changes in notes receivable


(277,066
)


(56,793
)Business acquisitions, net of cash acquired


(67,473
)Other investing activities, net


162



(1,014
)Net cash used in investing activities


(387,261
)


(193,725
)Cash flows from financing activities:Changes in notes payable


837,881



(33,061
)Long-term debt borrowings


131,882Principal payments on long-term debt


(77,073
)


(46,885
)Payments for bank fees on debt


(3,648
)


(100
)Changes in checks and drafts outstanding


(7,951
)


18,886Distributions to noncontrolling interests


(8,123
)


(1,987
)Preferred stock dividends paid


(18,408
)


(17,112
)Retirements of equities


(56,588
)


(17,034
)Cash patronage dividends paid


(141,510
)


(153,891
)Other financing activities, net


(15
)


(47
)Net cash provided by (used in) financing activities


656,447



(251,231
)Effect of exchange rate changes on cash and cash equivalents


9,838



(3,429
)Net decrease in cash and cash equivalents


(104,922
)


(467,277
)Cash and cash equivalents at beginning of period


394,663



772,599Cash and cash equivalents at end of period

$
289,741


$
305,322    5




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
 (dollars in thousands)
  Note 1.
    Accounting
    Policies  Basis of
    Presentation
    810-10.
  Form 10-K,
    Derivative
    Instruments and Hedging Activities
      over-the-counter
 6




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##### Table of Contents



May 31, 2011


August 31, 2010


May 31, 2010Purchase


Sales


Purchase


Sales


Purchase


SalesContracts


Contracts


Contracts


Contracts


Contracts


Contracts(Units in thousands)Grain and oilseed  bushels


673,994



916,446



747,334



1,039,363



474,276



696,814Energy products  barrels


12,729



12,997



8,633



10,156



9,372



11,126Crop nutrients  tons


881



1,251



1,257



1,215



253



426Ocean and barge freight - metric tons


1,613



266



1,385



279



3,316



2,197     May 31,


August 31,


May 31,2011


2010


2010Derivative Assets:Commodity and freight derivatives

$
1,112,946


$
461,580


$
246,988Foreign exchange derivatives


1,798$
1,114,744


$
461,580


$
246,988Derivative Liabilities:Commodity and freight derivatives

$
838,274


$
495,569


$
326,235Foreign exchange derivatives


769



222



1,143Interest rate derivatives


641



1,227



2,033$
839,684


$
497,018


$
329,411     May 31,

August 31,

May 31,2011

2010

2010Derivative Assets:Commodity and freight derivatives

$
1,868






$
1,684Derivative Liabilities:Commodity and freight derivatives





$
3,959     Amount of


Amount ofGain (Loss)


Gain (Loss)For the Three Months


For the Nine MonthsLocation of

Ended May 31,


Ended May 31,Gain (Loss)

2011


2010


2011


2010Commodity and freight derivatives

Cost of goods sold

$
(3,142
)

$
18,850


$
308,663


$
50,632Foreign exchange derivatives

Cost of goods sold


4,039



(1,197
)


3,441



(1,144
)Interest rate derivatives

Interest, net


218



229



283



(779
)$
1,115


$
17,882


$
312,387


$
48,709    7




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##### Table of Contents



May 31,

August 31,

May 31,2011

2010

2010Gains (losses) included in accumulated other comprehensive loss,
    net of tax expense (benefit) of $0.7 million,
    $(1.5) million and $0.7 million, respectively

$
1,141


$
(2,419
)

$
1,029     Goodwill
    and Other Intangible Assets
      Year 1

$
10,177Year 2


6,684Year 3


4,196Year 4


2,238Year 5


1,903Thereafter


8,456$
33,654      8




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##### Table of Contents



Recent
    Accounting Pronouncements
  No. 2011-02, ASU No. 2011-02
  No. 2011-03, No. 2011-03
  No. 2011-04, No. 2011-04 No. 2011-04
  No. 2011-05, No. 2011-05 No. 2011-05
  Note 2.
    Receivables  May 31,


August 31,


May 31,2011


2010


2010Trade accounts receivable

$
2,280,755


$
1,543,530


$
1,640,507Cofina Financial notes receivable


586,392



340,303



288,560Other


213,771



123,770



201,4773,080,918



2,007,603



2,130,544Less allowances and reserves


94,538



99,535



91,863$
2,986,380


$
1,908,068


$
2,038,681     12-14 months
 9




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##### Table of Contents



short-term
        Note 3.
    Inventories  May 31,


August 31,


May 31,2011


2010


2010Grain and oilseed

$
1,508,130


$
983,846


$
644,583Energy


688,387



515,930



569,214Crop nutrients


325,226



135,526



83,332Feed and farm supplies


440,499



242,482



285,839Processed grain and oilseed


72,437



74,064



57,563Other


11,058



9,528



10,048$
3,045,737


$
1,961,376


$
1,650,579   last-in-first first-in-first
  Note 4.
    Other
    Current Assets  May 31,


August 31,


May 31,2011


2010


2010Hedging Deposits

$
1,099,140


$
618,385


$
239,215Prepaid Merchandise


232,103



52,921



129,898Other


197,316



134,435



96,930$
1,528,559


$
805,741


$
466,043  10




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##### Table of Contents



Note 5.
    Investments    50-50
    For the Three Months Ended

For the Nine Months EndedMay 31,

May 31,2011

2010

2011

2010Net sales

$
628,588


$
496,622


$
1,710,508


$
1,446,023Gross profit


61,279



60,805



190,655



177,462Net income


26,978



25,060



79,274



62,616Net income attributable to CHS Inc.


13,489



12,530



39,637



31,308   May 31,

August 31,

May 31,2011

2010

2010Current assets

$
548,230


$
512,554


$
494,464Non-current assets


465,525



459,346



457,906Current liabilities


194,731



166,408



162,292Non-current liabilities


300,140



308,795



308,015    11




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##### Table of Contents



Note 6.
    Notes
    Payable and Long-Term Debt  May 31,


August 31,


May 31,2011


2010


2010Notes payable

$
638,887


$
29,776


$
12,978Cofina Financial notes payable


461,084



232,314



200,833$
1,099,971


$
262,090


$
213,811   364-day
          Note 7.
    Interest,
    net  For the Three Months Ended


For the Nine Months EndedMay 31,


May 31,2011


2010


2011


2010Interest expense

$
21,451


$
17,337


$
60,605


$
53,131Capitalized interest


(1,412
)


(1,527
)


(4,104
)


(4,578
)Interest income


(512
)


(1,284
)


(1,515
)


(3,556
)Interest, net

$
19,527


$
14,526


$
54,986


$
44,997  12




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##### Table of Contents



Note 8.
    Equities    Fiscal 2011


Fiscal 2010CHS Inc. balances, September 1, 2010 and 2009

$
3,335,664


$
3,090,302Net income attributable to CHS Inc.


754,807



348,067Other comprehensive income (loss)


8,671



(1,354
)Patronage distribution


(402,363
)


(438,014
)Patronage accrued


396,500



426,500Equities retired


(56,588
)


(17,034
)Equity retirements accrued


56,588



50,122Equities issued in exchange for elevator properties






616Preferred stock dividends


(18,408
)


(17,112
)Preferred stock dividends accrued


4,091



3,659Accrued dividends and equities payable


(295,891
)


(136,191
)Other, net


1,769



6,640CHS Inc. balances, May 31, 2011 and 2010

$
3,784,840


$
3,316,201Noncontrolling interests balances, September 1, 2010 and
    2009

$
268,787


$
242,862Net income attributable to noncontrolling interests


69,264



20,122Distributions to noncontrolling interests


(8,123
)


(1,987
)Distributions accrued


2,757



1,014Other


860



26Noncontrolling interests balances, May 31, 2011 and 2010

$
333,545


$
262,037     Note 9.
    Comprehensive
    Income   13




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##### Table of Contents



Note 10.
    Employee
    Benefit Plans    Qualified


Non-QualifiedPension Benefits


Pension Benefits


Other Benefits2011


2010


2011


2010


2011


2010Components of net periodic benefit costs for the three months
    ended May 31, 2011 and 2010:Service cost

$
5,990


$
5,168


$
296


$
305


$
488


$
374Interest cost


5,682



5,774



489



564



595



551Expected return on plan assets


(10,379
)


(9,220
)Prior service cost amortization


581



548



35



104



152



136Actuarial loss amortization


4,138



2,655



246



149



182



27Transition amount amortization


















51



51Net periodic benefit cost

$
6,012


$
4,925


$
1,066


$
1,122


$
1,468


$
1,139Components of net periodic benefit costs for the nine months
    ended May 31, 2011 and 2010:Service cost

$
18,924


$
15,580


$
935


$
921


$
1,329


$
1,033Interest cost


16,692



17,269



1,482



1,706



1,613



1,586Expected return on plan assets


(31,334
)


(27,671
)Prior service cost amortization


1,745



1,645



105



314



458



410Actuarial loss amortization


12,062



7,926



755



467



356



4Transition amount amortization


















152



152Net periodic benefit cost

$
18,089


$
14,749


$
3,277


$
3,408


$
3,908


$
3,185   Employer
    Contributions:
    Note 11.
    Segment
    Reporting   14




---



##### Table of Contents



15




---



##### Table of Contents



Ag


Corporate


ReconcilingEnergy


Business


and Other


Amounts


TotalFor the Three Months Ended May 31, 2011Revenues

$
3,038,831


$
7,507,069


$
16,615


$
(90,843
)

$
10,471,672Cost of goods sold


2,772,132



7,351,495



(600
)


(90,843
)


10,032,184Gross profit


266,699



155,574



17,215







439,488Marketing, general and administrative


36,448



50,737



16,411







103,596Operating earnings


230,251



104,837



804







335,892Gain on investments






(119,680
)


(9,042
)






(128,722
)Interest, net


566



15,848



3,113







19,527Equity income from investments


(1,711
)


(1,109
)


(17,859
)






(20,679
)Income before income taxes

$
231,396


$
209,778


$
24,592


$



$
465,766Intersegment revenues

$
(90,843
)









$
90,843


$
For the Three Months Ended May 31, 2010 
    RevisedRevenues

$
2,170,778


$
4,465,737


$
11,718


$
(72,255
)

$
6,575,978Cost of goods sold


2,063,829



4,333,575



(1,149
)


(72,255
)


6,324,000Gross profit


106,949



132,162



12,867







251,978Marketing, general and administrative


30,767



51,662



13,595







96,024Operating earnings (losses)


76,182



80,500



(728
)






155,954Gain on investments






(12
)


(10,356
)






(10,368
)Interest, net


3,656



7,001



3,869







14,526Equity income from investments


(1,549
)


(7,685
)


(20,448
)






(29,682
)Income before income taxes

$
74,075


$
81,196


$
26,207


$



$
181,478Intersegment revenues

$
(72,255
)









$
72,255


$
For the Nine Months Ended May 31, 2011Revenues

$
7,989,988


$
18,538,574


$
48,888


$
(264,555
)

$
26,312,895Cost of goods sold


7,495,015



18,043,219



(2,271
)


(264,555
)


25,271,408Gross profit


494,973



495,355



51,159







1,041,487Marketing, general and administrative


100,461



155,328



48,593







304,382Operating earnings


394,512



340,027



2,566







737,105Gain on investments






(119,746
)


(9,042
)






(128,788
)Interest, net


3,494



42,873



8,619







54,986Equity income from investments


(4,844
)


(34,467
)


(60,934
)






(100,245
)Income before income taxes

$
395,862


$
451,367


$
63,923


$



$
911,152Intersegment revenues

$
(264,555
)









$
264,555


$
Goodwill

$
1,165


$
15,687


$
6,898






$
23,750Capital expenditures

$
136,778


$
74,778


$
2,582






$
214,138Depreciation and amortization

$
91,399


$
56,727


$
11,758






$
159,884Total identifiable assets at May 31, 2011

$
3,227,081


$
6,133,469


$
2,632,543






$
11,993,093 16




---



##### Table of Contents



Ag


Corporate


ReconcilingEnergy


Business


and Other


Amounts


TotalFor the Nine Months Ended May 31, 2010 
    RevisedRevenues

$
6,472,886


$
12,363,900


$
34,625


$
(221,699
)

$
18,649,712Cost of goods sold


6,276,720



11,977,164



(3,837
)


(221,699
)


18,028,348Gross profit


196,166



386,736



38,462







621,364Marketing, general and administrative


87,782



142,129



38,674







268,585Operating earnings (losses)


108,384



244,607



(212
)






352,779Gain on investments






(78
)


(24,065
)






(24,143
)Interest, net


7,515



23,760



13,722







44,997Equity income from investments


(3,845
)


(31,801
)


(45,136
)






(80,782
)Income before income taxes

$
104,714


$
252,726


$
55,267


$



$
412,707Intersegment revenues

$
(221,699
)









$
221,699


$
Goodwill

$
1,166


$
8,465


$
6,898






$
16,529Capital expenditures

$
139,503


$
94,844


$
3,130






$
237,477Depreciation and amortization

$
88,700


$
51,324


$
11,579






$
151,603Total identifiable assets at May 31, 2010

$
2,941,232


$
3,444,770


$
1,306,506






$
7,692,508   Note 12.
    Fair
    Value Measurements    Fair Value Measurements at May 31, 2011Quoted Prices in





SignificantActive Markets for


Significant Other


UnobservableIdentical Assets


Observable Inputs


Inputs(Level 1)


(Level 2)


(Level 3)


TotalAssets:Readily marketable inventories





$
1,580,567






$
1,580,567Commodity and freight derivatives

$
79,353



674,867







754,220Foreign currency derivatives


1,798











1,798Other assets


72,562











72,562Total Assets

$
153,713


$
2,255,434






$
2,409,147Liabilities:Commodity and freight derivatives

$
87,018


$
390,662






$
477,680Foreign currency derivatives


769











769Interest rate swap derivatives






641







641Total Liabilities

$
87,787


$
391,303






$
479,090   17




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##### Table of Contents



Fair Value Measurements at August 31, 2010Quoted Prices in





SignificantActive Markets for


Significant Other


UnobservableIdentical Assets


Observable Inputs


Inputs(Level 1)


(Level 2)


(Level 3)


TotalAssets:Readily marketable inventories





$
1,057,910






$
1,057,910Commodity and freight derivatives

$
38,342



208,279







246,621Other assets


62,612











62,612Total Assets

$
100,954


$
1,266,189






$
1,367,143Liabilities:Commodity and freight derivatives

$
79,940


$
204,629






$
284,569Foreign currency derivatives


222











222Interest rate swap derivatives






1,227







1,227Total Liabilities

$
80,162


$
205,856






$
286,018   Fair Value Measurements at May 31, 2010Quoted Prices in





SignificantActive Markets for


Significant Other


UnobservableIdentical Assets


Observable Inputs


Inputs(Level 1)


(Level 2)


(Level 3)


TotalAssets:Readily marketable inventories





$
702,146






$
702,146Commodity and freight derivatives

$
18,226



84,970







103,196Other assets


56,801











56,801Total Assets

$
75,027


$
787,116






$
862,143Liabilities:Commodity and freight derivatives

$
15,812


$
166,090






$
181,902Interest rate swap derivatives






2,033







2,033Total Liabilities

$
15,812


$
168,123






$
183,935   Readily marketable inventories
  Commodity, freight and foreign currency
    derivatives and/or
 18




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##### Table of Contents



Other assets available-for-sale
  Interest rate swap derivatives
    Level 3 Short-TermInvestments2010Balance, September 1, 2009

$
1,932Realized/unrealized losses included in marketing, general and
    administrative


38Settlements


(1,970
)Balance, May 31, 2010

$
       Receivables

$
7,118Other current assets


142Investments


261Property, plant and equipment


62,509Accounts payable


(304
)Accrued expenses


(157
)Noncontrolling interests


(2,737
)Total net assets acquired

$
66,832  19




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##### Table of Contents



Note 13.
    Commitments
    and Contingencies  Guarantees
   20




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##### Table of Contents



ITEM 2.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
    OPERATIONS  General
  Form 10-Q, Form 10-K, Form 10-Q.
    ®
       21




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##### Table of Contents



Recent
    Events
       22




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##### Table of Contents



Results
    of Operations
  Comparison
    of the three months ended May 31, 2011 and
    2010
  General.
        Net Income attributable to CHS
    Inc.
  Revenues.
   23




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##### Table of Contents



Cost of Goods Sold.
   24




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##### Table of Contents



Gain on Investments.
  Marketing, General and
    Administrative.
  Interest, net.
  Equity Income from Investments.
 25




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##### Table of Contents



Income Taxes.
  Noncontrolling Interests.
  Comparison
    of the nine months ended May 31, 2011 and
    2010
  General.
     26




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##### Table of Contents



Net Income attributable to CHS
    Inc.
  Revenues.
       27




---



##### Table of Contents



Cost of Goods Sold.
     28




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##### Table of Contents



Gain on Investments.
  Marketing, General and
    Administrative.
  Interest, net.
  Equity Income from Investments.
   29




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##### Table of Contents



Income Taxes.
  Noncontrolling Interests.
  Liquidity
    and Capital Resources
    364-day 364-day
   30




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##### Table of Contents



Cash
    Flows from Operations
         31




---



##### Table of Contents



Cash
    Flows from Investing Activities
      five-to-six-week
         32




---



##### Table of Contents



Cash
    Flows from Financing Activities
    Working
    Capital Financing
  364-day 364-day
    Cofina
    Financial Financing
   33




---



##### Table of Contents



Long-term
    Debt Financing
    Form 10-K
         34




---



##### Table of Contents



Other
    Financing
   35




---



##### Table of Contents



Off
    Balance Sheet Financing Arrangements
  Lease
    Commitments:
  Form 10-K
  Guarantees:
   36




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##### Table of Contents



Debt:
    Cofina
    Financial:
    Contractual
    Obligations
  Form 10-K
    Critical
    Accounting Policies
  Form 10-K
  Effect of
    Inflation and Foreign Currency Transactions
    Recent
    Accounting Pronouncements
  No. 2011-02, ASU No. 2011-02
  No. 2011-03, No. 2011-03
  No. 2011-04, No. 2011-04 No. 2011-04
 37




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##### Table of Contents



No. 2011-05, No. 2011-05 No. 2011-05
  CAUTIONARY
    STATEMENTS FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE
    SECURITIES LITIGATION REFORM ACT
    Form 10-K
  
    Our revenues and operating results could be adversely affected
    by changes in commodity prices.
    Our operating results could be adversely affected if our members
    were to do business with others rather than with us.
    We participate in highly competitive business markets in which
    we may not be able to continue to compete successfully.
    Changes in federal income tax laws or in our tax status could
    increase our tax liability and reduce our net income.
    We incur significant costs in complying with applicable laws and
    regulations. Any failure to make the capital investments
    necessary to comply with these laws and regulations could expose
    us to financial liability.
    Changing environmental and energy laws and regulation, including
    those related to climate change and Green House Gas
    (GHG) emissions, may result in increased operating
    costs and capital expenditures and may have an adverse effect on
    our business operations.
    Environmental liabilities could adversely affect our results and
    financial condition. 38




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##### Table of Contents




    Actual or perceived quality, safety or health risks associated
    with our products could subject us to liability and damage our
    business and reputation.
    Our operations are subject to business interruptions and
    casualty losses; we do not insure against all potential losses
    and could be seriously harmed by unexpected liabilities.
    Our cooperative structure limits our ability to access equity
    capital.
    Consolidation among the producers of products we purchase and
    customers for products we sell could adversely affect our
    revenues and operating results.
    If our customers choose alternatives to our refined petroleum
    products our revenues and profits may decline.
    Operating results from our agronomy business could be volatile
    and are dependent upon certain factors outside of our control.
    Technological improvements in agriculture could decrease the
    demand for our agronomy and energy products.
    We operate some of our business through joint ventures in which
    our rights to control business decisions are limited.  ITEM 3.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Form 10-K
  ITEM 4.
    CONTROLS
    AND PROCEDURES  Rule 13a-15(e)
  Rule 13a-15(f)
 39




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##### Table of Contents



PART II.
    OTHER INFORMATION
  ITEM 1A.
    Risk
    Factors  Form 10-K
  ITEM 6.
    Exhibits  Exhibit

Description10
.1

Note Purchase Agreement between CHS Inc. and certain accredited
    investors dated as of June 9, 2011 (Incorporated by reference to
    our Current Report on Form 8-K, filed June 13, 2011)10
.2

Amendment No. 1 to Note Purchase Agreement (Series 2010-A) dated
    as of April 13, 2011 by and among Cofina Funding, LLC and the
    Issuer, Nieuw Amsterdam Receivables Corporation, as the Conduit
    Purchaser, and Cooperatieve Centrale Raiffeisen-BoerenleenBank
    B.A., Rabobank Nederland, New York Branch, as the
    Funding Agent and as a Committed Purchaser10
.3

Amendment No. 5 to Note Purchase Agreement (Series 2008-A) dated
    as of April 13, 2011, by and among Cofina Funding, LLC and the
    Issuer, Victory Receivables Corporation, as the Conduit
    Purchaser, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York
    Branch, as the Funding Agent and as a Committed Purchaser10
.4

Amendment No. 2 to Note Purchase Agreement (Series 2010-A) dated
    as of June 17, 2011 by and among Cofina Funding, LLC and the
    Issuer, Nieuw Amsterdam Receivables Corporation, as the Conduit
    Purchaser, and Cooperatieve Centrale Raiffeisen-BoerenleenBank
    B.A., Rabobank Nederland, New York Branch, as the
    Funding Agent and as a Committed Purchaser31
.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
    of 200231
.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
    of 200232
.1

Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 200232
.2

Certification Pursuant to 18 U.S.C. Section 1350, as
    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
    2002  40




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##### Table of Contents



SIGNATURES
         
    41