##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, 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
    February 28, 2010.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

April 7, 2010NONE

NONE




---



##### 





INDEX
  PAGENO.PART I. FINANCIAL INFORMATIONItem 1.

Financial Statements (unaudited)


3Consolidated Balance Sheets as of
    February 28, 2010, August 31, 2009 and
    February 28, 2009


3Consolidated Statements of Operations for the
    three months and six months ended February 28, 2010 and
    2009


4Consolidated Statements of Cash Flows for the six
    months ended February 28, 2010 and 2009


5Notes to Consolidated Financial Statements


6Item 2.

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


17Item 3.

Quantitative and Qualitative Disclosures about
    Market Risk


36Item 4.

Controls and Procedures


36PART II. OTHER INFORMATIONItem 1A.

Risk Factors


37Item 4.

Submission of Matters to a Vote of Security
    Holders


38Item 6.

Exhibits


39SIGNATURE PAGE


40EX-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




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##### Table of Contents



ITEM 1.
    FINANCIAL
    STATEMENTS CHS INC.
    AND SUBSIDIARIES



CONSOLIDATED
    BALANCE SHEETS  February 28,


August 31,


February 28,2010


2009


2009(Dollars in thousands)(Unaudited)ASSETSCurrent assets:Cash and cash equivalents

$
220,629


$
772,599


$
346,687Receivables


1,782,747



1,827,749



1,526,003Inventories


2,035,291



1,526,280



1,982,090Derivative assets


78,628



171,340



429,784Other current assets


649,997



447,655



843,088Total current assets


4,767,292



4,745,623



5,127,652Investments


649,572



727,925



704,928Property, plant and equipment


2,171,141



2,099,325



2,013,790Other assets


294,800



296,972



325,171Total assets

$
7,882,805


$
7,869,845


$
8,171,541LIABILITIES AND EQUITIESCurrent liabilities:Notes payable

$
197,827


$
246,872


$
273,040Current portion of long-term debt


108,359



83,492



93,084Customer credit balances


136,814



274,343



235,263Customer advance payments


690,606



320,688



813,139Checks and drafts outstanding


139,912



86,845



152,722Accounts payable


1,175,334



1,289,139



945,488Derivative liabilities


179,778



306,116



467,108Accrued expenses


314,005



308,720



300,059Dividends and equities payable


119,705



203,056



93,534Total current liabilities


3,062,340



3,119,271



3,373,437Long-term debt


947,628



988,461



1,058,460Other liabilities


426,601



428,949



379,524Commitments and contingenciesEquities:Equity certificates


2,198,991



2,214,824



2,014,894Preferred stock


282,694



282,694



282,694Accumulated other comprehensive loss


(159,040
)


(156,270
)


(86,108
)Capital reserves


875,036



749,054



908,737Total CHS Inc. equities


3,197,681



3,090,302



3,120,217Noncontrolling interests


248,555



242,862



239,903Total equities


3,446,236



3,333,164



3,360,120Total liabilities and equities

$
7,882,805


$
7,869,845


$
8,171,541    3




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES



CONSOLIDATED
    STATEMENTS OF OPERATIONS  For the Three Months Ended


For the Six Months EndedFebruary 28,


February 28,2010


2009


2010


2009(Dollars in thousands)(Unaudited)Revenues

$
5,878,493


$
5,177,069


$
12,073,734


$
12,910,988Cost of goods sold


5,711,768



4,962,092



11,704,348



12,375,504Gross profit


166,725



214,977



369,386



535,484Marketing, general and administrative


92,055



98,973



172,561



186,714Operating earnings


74,670



116,004



196,825



348,770(Gain) loss on investments


(13,775
)


(3,001
)


(13,775
)


51,975Interest, net


14,259



13,775



30,471



33,950Equity income from investments


(18,934
)


(10,388
)


(51,100
)


(31,111
)Income before income taxes


93,120



115,618



231,229



293,956Income taxes


6,961



14,021



22,535



32,952Net income


86,159



101,597



208,694



261,004Net income attributable to noncontrolling interests


3,491



19,317



6,076



41,473Net income attributable to CHS Inc.

$
82,668


$
82,280


$
202,618


$
219,531    4




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES



CONSOLIDATED
    STATEMENTS OF CASH FLOWS  For the Six Months EndedFebruary 28,2010


2009(Dollars in thousands)(Unaudited)Cash flows from operating activities:Net income including noncontrolling interests

$
208,694


$
261,004Adjustments to reconcile net income to net cash (used in)
    provided by operating activities:Depreciation and amortization


101,108



95,154Amortization of deferred major repair costs


9,505



12,097Income from equity investments


(51,100
)


(31,111
)Distributions from equity investments


56,757



41,191Noncash patronage dividends received


(1,613
)


(2,672
)Gain on sale of property, plant and equipment


(2,118
)


(1,184
)(Gain) loss on investments


(13,775
)


51,975Deferred taxes


13,436



2,772Other, net


(3,230
)


(3,757
)Changes in operating assets and liabilities:Receivables


80,878



986,568Inventories


(508,964
)


403,582Derivative assets


92,712



(60,281
)Other current assets and other assets


(202,191
)


(179,099
)Customer credit balances


(137,529
)


9,375Customer advance payments


369,918



163,611Accounts payable and accrued expenses


(107,199
)


(1,001,756
)Derivative liabilities


(126,338
)


193,518Other liabilities


(15,034
)


(6,746
)Net cash (used in) provided by operating activities


(236,083
)


934,241Cash flows from investing activities:Acquisition of property, plant and equipment


(164,289
)


(136,796
)Proceeds from disposition of property, plant and equipment


2,984



4,396Expenditures for major repairs


(5,085
)


(1
)Investments


(9,323
)


(90,242
)Investments redeemed


94,069



10,017Proceeds from sale of investments






41,612Joint venture distribution transaction, net






850Changes in notes receivable


(45,957
)


123,564Acquisition of intangibles






(1,320
)Business acquisitions, net of cash received






(76,364
)Other investing activities, net






(655
)Net cash used in investing activities


(127,601
)


(124,939
)Cash flows from financing activities:Changes in notes payable


(49,045
)


(221,184
)Principal payments on long-term debt


(14,738
)


(39,022
)Payments for bank fees on debt






(1,434
)Changes in checks and drafts outstanding


53,067



(52,871
)Distributions to noncontrolling interests


(1,423
)


(14,942
)Costs incurred  capital equity certificates redeemed


(46
)


(111
)Preferred stock dividends paid


(10,976
)


(9,048
)Retirements of equities


(11,476
)


(34,703
)Cash patronage dividends paid


(153,759
)


(226,340
)Other financing activities, net


110



500Net cash used in financing activities


(188,286
)


(599,155
)Net (decrease) increase in cash and cash equivalents


(551,970
)


210,147Cash and cash equivalents at beginning of period


772,599



136,540Cash and cash equivalents at end of period

$
220,629


$
346,687    5




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(dollars
    in thousands)  Note 1.
    Accounting
    Policies  Basis of
    Presentation and Reclassifications
      Form 10-K,
  860-10-65-1, 860-10-65-1
  860-10-65-1
  Derivative
    Instruments and Hedging Activities
    over-the-counter
 6




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##### Table of Contents



2010

2009Purchase

Sales

Purchase

SalesContracts

Contracts

Contracts

Contracts(Units in thousands)Grain and oilseed  bushels


558,538



835,564



445,967



578,124Energy products  barrels


8,077



8,367



12,955



9,597Crop nutrients  tons


1,042



1,419



1,129



1,690Ocean and barge freight metric tons


2,892



3,048



2,848



2,621     February 28,


August 31,


February 28,2010


2009


2009Derivative Assets:Commodity and freight derivatives

$
234,260


$
296,416


$
525,745Foreign exchange derivatives


59







31$
234,319


$
296,416


$
525,776Derivative Liabilities:Commodity and freight derivatives

$
332,284


$
426,281


$
558,946Foreign exchange derivatives


6







3,857Interest rate derivatives


3,179



4,911



297$
335,469


$
431,192


$
563,100     Amount ofGain (Loss)For the Three Months


For the Six MonthsLocation of

Ended February 28,


Ended February 28,Gain (Loss)

2010


2009


2010Commodity and freight derivatives

Cost of goods sold

$
25,885


$
12,543


$
31,782Foreign exchange derivatives

Cost of goods sold


53



(1,572
)


53Interest rate derivatives

Interest, net


(363
)


(777
)


(1,008
)$
25,575


$
10,194


$
30,827   Goodwill
    and Other Intangible Assets
     7




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##### Table of Contents



Recent
    Accounting Pronouncements
  715-20-65-2, 715-20-65-2
  860-10-65-3, 860-10-65-3
  860-10-65-2, 860-10-65-2 860-10-65-2 860-10-65-2
  No. 2010-06, No. 2010-06 No. 2010-06
 8




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##### Table of Contents



No. 2010-06
  Note 2.
    Receivables  February 28,


August 31,


February 28,2010


2009


2009Trade accounts receivable

$
1,409,309


$
1,482,921


$
1,212,680Cofina Financial notes receivable


293,436



254,419



302,122Other


170,835



189,434



106,5851,873,580



1,926,774



1,621,387Less allowances and reserves


90,833



99,025



95,384$
1,782,747


$
1,827,749


$
1,526,003   Note 3.
    Inventories  February 28,


August 31,


February 28,2010


2009


2009Grain and oilseed

$
776,229


$
638,622


$
641,660Energy


518,735



496,114



427,928Crop nutrients


246,252



114,832



380,389Feed and farm supplies


399,292



198,440



493,585Processed grain and oilseed


85,019



69,344



30,962Other


9,764



8,928



7,566$
2,035,291


$
1,526,280


$
1,982,090   lower-of-cost lower-of-cost lower-of-cost
    Note 4.
    Investments  50-50
 9




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##### Table of Contents



available-for-sale
    For the Three Months Ended

For the Six Months EndedFebruary 28,

February 28,2010

2009

2010

2009Net sales

$
460,931


$
491,498


$
949,401


$
1,078,168Gross profit


47,741



55,982



116,657



97,118Net income


8,083



18,105



37,556



28,756Net income attributable to CHS Inc.


4,042



9,053



18,778



14,378   February 28,

August 31,

February 28,2010

2009

2009Current assets

$
484,189


$
441,406


$
405,007Non-current assets


453,935



464,356



475,459Current liabilities


162,447



141,844



244,568Non-current liabilities


303,936



303,665



306,777   Note 5.
    Notes
    Payable  February 28,


August 31,


February 28,2010


2009


2009Notes payable

$
14,994


$
19,183


$
17,399Cofina Financial notes payable


182,833



227,689



255,641$
197,827


$
246,872


$
273,040    10




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##### Table of Contents



Note 6.
    Interest,
    net  For the Three Months Ended


For the Six Months EndedFebruary 28,


February 28,2010


2009


2010


2009Interest expense

$
17,515


$
19,943


$
35,794


$
42,331Capitalized interest


(1,527
)


(1,316
)


(3,051
)


(2,214
)Interest income


(1,729
)


(4,852
)


(2,272
)


(6,167
)Interest, net

$
14,259


$
13,775


$
30,471


$
33,950   Note 7.
    Equities    Fiscal 2010


Fiscal 2009CHS Inc. balances, September 1, 2009 and 2008

$
3,090,302


$
2,955,686Net income attributable to CHS Inc.


202,618



219,531Other comprehensive loss


(2,770
)


(18,066
)Patronage distribution


(437,640
)


(639,887
)Patronage accrued


426,500



652,000Equities retired


(11,476
)


(34,703
)Equity retirements accrued


11,476



84,648Equities issued in exchange for elevator properties


616



1,899Preferred stock dividends


(10,976
)


(9,048
)Preferred stock dividends accrued


3,659



3,016Accrued dividends and equities payable


(81,059
)


(84,359
)Other, net


6,431



(10,500
)CHS Inc. balances, February 28, 2010 and 2009

$
3,197,681


$
3,120,217Noncontrolling interests balances, September 1, 2009 and
    2008

$
242,862


$
205,732Net income attributable to noncontrolling interests


6,076



41,473Distributions to noncontrolling interests


(1,423
)


(14,942
)Distributions accrued


1,014



3,762Other


26



3,878Noncontrolling interests balances, February 28, 2010 and
    2009

$
248,555


$
239,903   Note 8.
    Comprehensive
    Income   11




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##### Table of Contents



Note 9.
    Employee
    Benefit Plans    Qualified


Non-QualifiedPension Benefits


Pension Benefits


Other Benefits2010


2009


2010


2009


2010


2009Components of net periodic benefit costs for thethree months ended February 28, 2010 and 2009:Service cost

$
5,206


$
4,061


$
308


$
296


$
329


$
279Interest cost


5,745



5,692



571



594



517



561Expected return on plan assets


(9,231
)


(7,520
)Prior service cost amortization


549



529



105



137



139



(50
)Actuarial loss (gain) amortization


2,633



1,281



159



162



(11
)


(41
)Transition amount amortization


















50



233Net periodic benefit cost

$
4,902


$
4,043


$
1,143


$
1,189


$
1,024


$
982Components of net periodic benefit costs for thesix months ended February 28, 2010 and 2009:Service cost

$
10,412


$
8,122


$
616


$
592


$
659


$
557Interest cost


11,495



11,382



1,142



1,188



1,035



1,121Expected return on plan assets


(18,451
)


(15,108
)Prior service cost amortization


1,097



1,058



210



273



274



(99
)Actuarial loss (gain) amortization


5,271



2,526



318



324



(23
)


(83
)Transition amount amortization


















101



468Net periodic benefit cost

$
9,824


$
7,980


$
2,286


$
2,377


$
2,046


$
1,964   Employer
    Contributions:
    Note 10.
    Segment
    Reporting       12




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##### Table of Contents



13




---



##### Table of Contents



Ag





Corporate


ReconcilingEnergy


Business


Processing


and Other


Amounts


TotalFor the Three Months Ended February 28, 2010Revenues

$
2,037,528


$
3,639,718


$
264,503


$
10,631


$
(73,887
)

$
5,878,493Cost of goods sold


1,990,171



3,540,709



255,833



(1,058
)


(73,887
)


5,711,768Gross profit


47,357



99,009



8,670



11,689







166,725Marketing, general and administrative


29,125



46,000



6,331



10,599







92,055Operating earnings


18,232



53,009



2,339



1,090







74,670Gain on investments






(13,775
)














(13,775
)Interest, net


3,070



5,726



4,703



760







14,259Equity income from investments


(1,190
)


(9,066
)


(8,542
)


(136
)






(18,934
)Income before income taxes

$
16,352


$
70,124


$
6,178


$
466


$



$
93,120Intersegment revenues

$
(68,199
)

$
(5,325
)

$
(363
)





$
73,887


$
For the Three Months Ended February 28, 2009Revenues

$
1,546,147


$
3,416,515


$
270,628


$
8,454


$
(64,675
)

$
5,177,069Cost of goods sold


1,418,479



3,346,583



262,037



(332
)


(64,675
)


4,962,092Gross profit


127,668



69,932



8,591



8,786







214,977Marketing, general and administrative


33,661



47,545



7,530



10,237







98,973Operating earnings (losses)


94,007



22,387



1,061



(1,451
)






116,004Gain on investments






(3,001
)














(3,001
)Interest, net


982



9,707



3,348



(262
)






13,775Equity (income) loss from investments


(591
)


1,785



(11,509
)


(73
)






(10,388
)Income (loss) before income taxes

$
93,616


$
13,896


$
9,222


$
(1,116
)

$



$
115,618Intersegment revenues

$
(57,575
)

$
(6,330
)

$
(770
)





$
64,675


$
For the Six Months Ended February 28, 2010Revenues

$
4,302,108


$
7,382,349


$
528,602


$
21,105


$
(160,430
)

$
12,073,734Cost of goods sold


4,212,891



7,154,650



499,917



(2,680
)


(160,430
)


11,704,348Gross profit


89,217



227,699



28,685



23,785







369,386Marketing, general and administrative


57,015



84,191



11,880



19,475







172,561Operating earnings


32,202



143,508



16,805



4,310







196,825Gain on investments






(13,775
)














(13,775
)Interest, net


3,859



13,860



9,760



2,992







30,471Equity income from investments


(2,296
)


(18,381
)


(29,911
)


(512
)






(51,100
)Income before income taxes

$
30,639


$
161,804


$
36,956


$
1,830


$



$
231,229Intersegment revenues

$
(149,444
)

$
(9,641
)

$
(1,345
)





$
160,430


$
Goodwill

$
1,983


$
8,465






$
6,898






$
17,346Capital expenditures

$
90,495


$
67,379


$
3,619


$
2,796






$
164,289Depreciation and amortization

$
59,475


$
29,047


$
8,497


$
4,089






$
101,108Total identifiable assets at February 28, 2010

$
2,845,306


$
3,539,721


$
694,506


$
803,272






$
7,882,805For the Six Months Ended February 28, 2009Revenues

$
4,096,699


$
8,370,237


$
581,518


$
23,579


$
(161,045
)

$
12,910,988Cost of goods sold


3,747,131



8,236,153



554,619



(1,354
)


(161,045
)


12,375,504Gross profit


349,568



134,084



26,899



24,933







535,484Marketing, general and administrative


61,493



87,108



14,279



23,834







186,714Operating earnings


288,075



46,976



12,620



1,099







348,770(Gain) loss on investments


(15,748
)


(3,001
)


70,724











51,975Interest, net


5,177



23,433



7,105



(1,765
)






33,950Equity income from investments


(1,827
)


(7,105
)


(21,739
)


(440
)






(31,111
)Income (loss) before income taxes

$
300,473


$
33,649


$
(43,470
)

$
3,304


$



$
293,956Intersegment revenues

$
(141,605
)

$
(18,111
)

$
(1,329
)





$
161,045


$
Goodwill

$
3,185


$
8,065






$
6,898






$
18,148Capital expenditures

$
100,577


$
30,979


$
3,671


$
1,569






$
136,796Depreciation and amortization

$
57,644


$
25,290


$
8,328


$
3,892






$
95,154Total identifiable assets at February 28, 2009

$
2,637,591


$
3,926,788


$
607,975


$
999,187






$
8,171,541  14




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##### Table of Contents



Note 11.
    Fair
    Value Measurements    Fair Value Measurements at February 28, 2010Quoted Prices in





SignificantActive Markets for


Significant Other


UnobservableIdentical Assets


Observable Inputs


Inputs(Level 1)


(Level 2)


(Level 3)


TotalAssets:Readily marketable inventories





$
861,248






$
861,248Commodity, freight and foreign currency derivatives

$
12,117



66,511







78,628Other assets


56,287











56,287Total Assets

$
68,404


$
927,759






$
996,163Liabilities:Commodity, freight and foreign currency derivatives

$
17,779


$
158,820






$
176,599Interest rate swap derivatives






3,179







3,179Total Liabilities

$
17,779


$
161,999






$
179,778   Readily marketable inventories
  Commodity, freight and foreign currency
    derivatives and/or
  Other assets available-for-sale
  Interest rate swap derivatives
 15




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##### Table of Contents



Level 3 Short-TermInvestments2010


2009Balances, September 1, 2009 and 2008

$
1,932


$
7,154Gains (losses) included in marketing, general and administrative
    expense


38



(1,031
)Settlements


(1,970
)


(3,046
)Balances, February 28, 2010 and 2009

$



$
3,077   Note 12.
    Commitments
    and Contingencies  Guarantees
   16




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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.
    ®
         17




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##### Table of Contents



860-10-65-1, 860-10-65-1
  860-10-65-1
  Results
    of Operations
  Comparison
    of the three months ended February 28, 2010 and
    2009
  General.
   18




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##### Table of Contents



over-the-counter lower-of-cost lower-of-cost
      Net Income attributable to CHS
    Inc.
  Revenues.
 19




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##### Table of Contents



20




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Cost of Goods Sold.
         21




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##### Table of Contents



Marketing, General and
    Administrative.
  (Gain) loss on Investments.
  Interest, net.
  Equity Income from Investments.
     22




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##### Table of Contents



Income Taxes.
  Noncontrolling Interests.
  Comparison
    of the six months ended February 28, 2010 and
    2009
  General.
    lower-of-cost
 23




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##### Table of Contents



lower-of-cost
      Net Income attributable to CHS
    Inc.
  Revenues.
     24




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##### Table of Contents



Cost of Goods Sold.
   25




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##### Table of Contents



lower-of-cost
      Marketing, General and
    Administrative.
  Loss (Gain) on Investments.
 26




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##### Table of Contents



Interest, net.
  Equity Income from Investments.
         27




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##### Table of Contents



Income Taxes.
  Noncontrolling Interests.
  Liquidity
    and Capital Resources
    364-day 364-day
    Cash
    Flows from Operations
       28




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29




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##### Table of Contents



Cash
    Flows from Investing Activities
                 30




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##### Table of Contents



Cash
    Flows from Financing Activities
  Working
    Capital Financing
  364-day
    Cofina
    Financial Financing
  and/or
   31




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Long-term
    Debt Financing
               32




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Form 10-K
    Other
    Financing
         33




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##### Table of Contents



Form S-1
    Off
    Balance Sheet Financing Arrangements
  Lease
    Commitments:
  Form 10-K
  Guarantees:
    Debt:
    Cofina
    Financial:
    Contractual
    Obligations
  Form 10-K
  Critical
    Accounting Policies
  Form 10-K
  Effect of
    Inflation and Foreign Currency Transactions
   34




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##### Table of Contents



Recent
    Accounting Pronouncements
  715-20-65-2, 715-20-65-2
  860-10-65-3, 860-10-65-3
  860-10-65-2, 860-10-65-2 860-10-65-2 860-10-65-2
  No. 2010-06, No. 2010-06 No. 2010-06 No. 2010-06
  CAUTIONARY
    STATEMENTS FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE
    SECURITIES LITIGATION REFORM ACT
   35




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##### Table of Contents



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.
    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   36




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Rule 13a-15(e)
  Rule 13a-15(f)
 PART II.
    OTHER INFORMATION  ITEM 1A.
    Risk
    Factors  Form 10-K
  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.
        cap-and-trade
 37




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cap-and-trade carbon-based
  cap-and-trade
      ITEM 4.
    Submission
    of Matters to a Vote of Security Holders     38




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ITEM 6.
    Exhibits  Exhibit

Description31
.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  39




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SIGNATURES    
  April 7,
    2010
  
    40