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EXHIBIT 99.1

CAUTIONARY STATEMENT

CHS Inc. (the Company,
we, our, us) and its
representatives and agents may from time to time make written or
oral forward-looking statements as defined under the
Private Securities Litigation Reform Act of 1995 (the Act).
Words and phrases such as will likely result,
are expected to, will continue, is
anticipated, estimate, project and
similar expressions identify forward-looking statements. The
Company wishes to caution readers not to place undue reliance on
any forward-looking statements, which speak only as of the date
made.

The Companys forward-looking statements
are subject to risks and uncertainties that could cause actual
results to differ materially from those discussed in the
forward-looking statements. This Cautionary Statement is for the
purpose of qualifying for the safe harbor provisions
of the Act and is intended to be a readily available written
document that contains factors which could cause results to
differ materially from those projected in the forward-looking
statements. The following matters, among others, may have a
material adverse effect on the business, financial condition,
liquidity, results of operations or prospects, financial or
otherwise, of the Company. Reference to this Cautionary
Statement in the context of a forward-looking statement shall be
deemed to be a statement that any one or more of the following
factors may cause actual results to differ materially from those
which might be projected, forecasted, estimated or budgeted by
the Company in the forward-looking statement or
statements.

The following factors are in addition to any
other cautionary statements, written or oral, which may be made
or referred to in connection with any particular forward-looking
statement. The following review of factors pursuant to the Act
should not be construed as exhaustive.

The Company undertakes no obligation to
publicly revise any forward-looking statements to reflect future
events or circumstances.

Our revenues and operating results could be
adversely affected by changes in commodity
prices.Our revenues and earnings are
affected by market prices for commodities such as crude oil,
natural gas, grain, oilseeds, and flour. Commodity prices
generally are affected by a wide range of factors beyond our
control, including the weather, disease, insect damage, drought,
the availability and adequacy of supply, government regulation
and policies, and general political and economic conditions.
Increases in market prices for commodities that we purchase
without a corresponding increase in the prices of our products
or our sales volume or a decrease in our other operating
expenses could reduce our revenues and net income. We are also
exposed to fluctuating commodity prices as the result of our
inventories of commodities, typically grain and petroleum
products, and purchase and sale contracts at fixed or partially
fixed prices. At any time, our inventory levels and unfulfilled
fixed or partially fixed price contract obligations may be
substantial.

Our operating results could be adversely
affected if our members were to do business with others rather
than with us.We do not have an
exclusive relationship with our members and our members are not
obligated to supply us with their products or purchase products
from us. Our members often have a variety of distribution
outlets and product sources available to them.

If our members were to sell their products to
other purchasers or purchase products from other sellers, our
revenues would decline and our results of operations could be
adversely affected.

We participate in highly competitive business
markets in which we may not be able to continue to compete
successfully.We operate in several
highly competitive business segments. Competitive factors
include price, service level, proximity to markets, product
quality and marketing. In some of our business segments, such as
Energy, we compete with companies that are larger, better known
and have greater marketing, financial, personnel and other
resources. Our competitors may succeed in developing new or
enhanced products that are better than ours, and may be more
successful in marketing and selling their

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products than we are with ours. As a result, we
may not be able to continue to compete successfully with our
competitors.


Changes in federal income tax laws or in our
tax status could increase our tax liability and reduce our net
income.Current federal income tax
laws, regulations and interpretations regarding the taxation of
cooperatives, which allow us to exclude income generated through
business with or for a member (patronage income) from our
taxable income, could be changed. If this occurred, or if in the
future we were not eligible to be taxed as a cooperative, our
tax liability would significantly increase and our net income
significantly decrease.

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.We are subject to numerous
federal, state and local provisions regulating our business and
operations. We incur and expect to incur significant capital and
operating expenses to comply with these laws and regulations,
but may be unable to pass on those expenses to customers without
experiencing volume and margin losses. For example, capital
expenditures for upgrading our refineries, largely to comply
with regulations requiring the reduction of sulfur levels in
refined petroleum products, are expected to be approximately
$87.0 million for our Laurel, Montana refinery and
$324.0 million for NCRAs McPherson, Kansas refinery,
of which $13.4 million had been spent at the Laurel
refinery and $53.7 million had been spent by NCRA at the
McPherson refinery as of November 30, 2003. The Company
expects all of these compliance capital expenditures at the
refineries to be complete by December 31, 2005, and
anticipates funding these projects with a combination of cash
flows from operations and debt proceeds.

We establish reserves for the future cost of
meeting known compliance obligations, such as remediation of
identified environmental issues. However, these reserves may
prove inadequate to meet our actual liability. Moreover,
amended, new or more stringent requirements, stricter
interpretations of existing requirements or the future discovery
of currently unknown compliance issues may require us to make
material expenditures or subject us to liabilities that we
currently do not anticipate. Furthermore, our failure to comply
with applicable laws and regulations could subject us to
administrative penalties and injunctive relief, civil remedies
including fines and injunctions, and recalls of our products.

Environmental liabilities could adversely
affect our results and financial
condition.Many of our current and
former facilities have been in operation for many years and,
over that time, we and other operators of those facilities have
generated, used, stored and disposed of substances or wastes
that are or might be considered hazardous under applicable
environmental laws, including chemicals and fuels stored in
underground and above-ground tanks. Any past or future actions
in violation of applicable environmental laws could subject us
to administrative penalties, fines and injunctions. Moreover,
future or unknown past releases of hazardous substances could
subject us to private lawsuits claiming damages and to adverse
publicity.

Actual or perceived quality, safety or health
risks associated with our products could subject us to liability
and damage our business and
reputation.If any of our food or feed
products became adulterated or misbranded, we would need to
recall those items and could experience product liability claims
if consumers were injured as a result. A widespread product
recall or a significant product liability judgment could cause
our products to be unavailable for a period of time or a loss of
consumer confidence in our products. Even if a product liability
claim is unsuccessful or is not fully pursued, the negative
publicity surrounding any assertion that our products caused
illness or injury could adversely affect our reputation with
existing and potential customers and our corporate and brand
image. Moreover, claims or liabilities of this sort might not be
covered by our insurance or by any rights of indemnity or
contribution that we may have against others. In addition,
general public perceptions regarding the quality, safety or
health risks associated with particular food products, such as
the concern in some quarters regarding genetically modified
crops, could reduce demand and prices for some of the products
associated with our businesses. To the extent that consumer
preferences evolve away from products that our members or we
produce for health or other reasons, such as the growing demand
for organic food products, and we are unable to

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develop products that satisfy new consumer
preferences, there will be a decreased demand for our products.


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 operations are
subject to business interruptions due to unanticipated events
such as explosions, fires, pipeline interruptions,
transportation delays, equipment failures, crude oil or refined
product spills, inclement weather and labor disputes. For
example:



| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our oil refineries and other facilities are
    potential targets for terrorist attacks that could halt or
    discontinue production;              
|
| |  | our inability to negotiate acceptable contracts
    with unionized workers in our operations could result in strikes
    or work stoppages; and     
|
| |  | the significant inventories that we carry could
    be damaged or destroyed by catastrophic events, extreme weather
    conditions or contamination.

We maintain insurance against many, but not all,
potential losses or liabilities arising from these operating
hazards, but uninsured losses or losses above our coverage
limits are possible. Uninsured losses and liabilities arising
from operating hazards could have a material adverse effect on
our financial position or results of operations.

Our cooperative structure limits our ability
to access equity capital.As a
cooperative, we may not sell common equity in our company. In
addition, existing laws and our articles of incorporation and
bylaws contain limitations on dividends of 8% of any preferred
stock that we may issue. These limitations restrict our ability
to raise equity capital and may adversely affect our ability to
compete with enterprises that do not face similar restrictions.

Consolidation among the producers of products
we purchase and customers for products we sell could adversely
affect our revenues and operating
results.Consolidation has occurred
among the producers of products we purchase, including crude oil
and grain. Consolidation could increase the price of these
products and allow suppliers to negotiate pricing and other
contract terms that are less favorable to us. Consolidation also
may increase the competition among consumers of these products
to enter into supply relationships with a smaller number of
producers.

Consolidation among purchasers of our products
and in wholesale and retail distribution channels has resulted
in a smaller customer base for our products and intensified the
competition for these customers. For example, ongoing
consolidation among distributors and brokers of food products
and food retailers has altered the buying patterns of these
businesses, as they have increasingly elected to work with
product suppliers who can meet their needs nationwide rather
than just regionally or locally. If these distributors, brokers,
and retailers elect not to purchase our products, our sales
volumes, revenues, and profitability could be significantly
reduced.

Fluctuations in prices for crude oil and
refined fuel products may adversely affect our
earnings.Prices for crude oil and for
gasoline, diesel fuel, and other refined petroleum products
fluctuate widely. The profitability of our energy operations
depends largely on the margin between the cost of crude oil that
we refine and the selling prices that we obtain for our refined
products. Factors influencing these prices, many of which are
beyond our control, include:



| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | levels of worldwide and domestic supplies;                                                                                                                  
|
| |  | capacities of domestic and foreign refineries;                                                                                                              
|
| |  | the ability of the members of OPEC to agree to
    and maintain oil price and production controls, and the price
    and level of foreign imports generally;
|
| |  | political instability or armed conflict in
    oil-producing regions;                                                                                       
|
| |  | the level of consumer demand;                                                                                                                               

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| |   |                                                             
| | - | ------------------------------------------------------------
| |  | the price and availability of alternative fuels;            
|
| |  | the availability of pipeline capacity; and                  
|
| |  | domestic and foreign governmental regulations and
    taxes.

The long-term effects of these and other
conditions on the prices of crude oil and refined petroleum
products are uncertain and ever-changing. Accordingly, we expect
our margins on and the profitability of our energy business to
fluctuate, possibly significantly, over time.

If our customers chose alternatives to our
refined petroleum products our revenues and profits may
decline.Numerous alternative energy
sources currently under development that could serve as
alternatives to our gasoline, diesel fuel and other refined
petroleum products. If any of these alternative products become
more economically viable or preferable to our products for
environmental or other reasons, demand for our energy products
would decline. Demand for our gasoline, diesel fuel and other
refined petroleum products also could be adversely affected by
increased fuel efficiencies.

Our agronomy business is depressed and could
continue to underperform in the
future.Demand for agronomy products
in general has been adversely affected in recent years by
drought and poor weather conditions, idle acreage and
development of insect and disease-resistant crops. These factors
could cause Agriliance, LLC, an agronomy marketing and
distribution venture in which we own a minority interest, to be
unable to operate at profitable margins. In addition, these and
other factors, including fluctuations in the price of natural
gas and other raw materials, an increase in recent years in
domestic and foreign production of fertilizer, and intense
competition within the industry, in particular from lower-cost
foreign producers, have created particular pressure on producers
of fertilizers. As a result, CF Industries, Inc., a fertilizer
manufacturer in which we hold a minority cooperative interest,
has suffered significant losses in recent years as it has
incurred increased prices for raw materials but has been unable
to pass those increased costs on to its customers.

Technological improvements in agriculture
could decrease the demand for our agronomy
products.Technological advances in
agriculture could decrease the demand for crop nutrients, and
other crop input products and services that we provide.
Genetically engineered seeds that resist disease and insects or
that meet certain nutritional requirements could affect the
demand for our crop nutrients and crop protection products, as
well as the demand for fuel that we supply to operate
application equipment.

We operate some of our business through joint
ventures in which our rights to control business decisions are
limited.Several parts of our
business, including in particular our agronomy business segment
and portions of our grain marketing, wheat milling and foods
businesses, are operated through joint ventures with
unaffiliated third parties. Operating a business through a joint
venture means that we have less control over business decisions
than we have in our wholly owned businesses. In particular, we
generally cannot act on major business initiatives in our joint
ventures without the consent of the other party or parties in
that venture.

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