##### 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
    February 28,
    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

April 8, 2011NONE

NONE




---



##### 





INDEX
   
 PAGENO.PART I. FINANCIAL INFORMATIONItem 1.

Financial Statements (unaudited)


3Consolidated Balance Sheets as of
    February 28, 2011, August 31, 2010 and
    February 28, 2010


3Consolidated Statements of Operations for the
    three months and six months ended February 28, 2011 and
    2010


4Consolidated Statements of Cash Flows for the
    three months and six months ended February 28, 2011 and
    2010


5Notes to Consolidated Financial Statements


6Item 2.

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


19Item 3.

Quantitative and Qualitative Disclosures about
    Market Risk


37Item 4.

Controls and Procedures


37PART II. OTHER INFORMATIONItem 1A.

Risk Factors


38Item 6.

Exhibits


38SIGNATURE PAGE


39EX-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




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##### Table of Contents



ITEM 1.
    FINANCIAL
    STATEMENTS  CHS INC.
    AND SUBSIDIARIES
 CONSOLIDATED
    BALANCE SHEETS  February 28,


August 31,


February 28,2011


2010


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

$
184,126


$
394,663


$
220,629Receivables


2,379,410



1,908,068



1,782,747Inventories


3,232,315



1,961,376



2,035,291Derivative assets


728,722



246,621



78,628Other current assets


1,650,727



805,741



649,997Total current assets


8,175,300



5,316,469



4,767,292Investments


720,929



719,392



649,572Property, plant and equipment


2,354,693



2,253,071



2,171,141Other assets


442,335



377,196



294,800Total assets

$
11,693,257


$
8,666,128


$
7,882,805LIABILITIES AND EQUITIESCurrent liabilities:Notes payable

$
1,640,736


$
262,090


$
197,827Current portion of long-term debt


108,973



112,503



108,359Customer credit balances


742,655



423,571



136,814Customer advance payments


1,164,915



435,224



690,606Checks and drafts outstanding


142,311



134,250



139,912Accounts payable


1,597,719



1,472,145



1,175,334Derivative liabilities


452,703



286,018



179,778Accrued expenses


432,644



376,239



314,005Dividends and equities payable


182,879



210,435



119,705Total current liabilities


6,465,535



3,712,475



3,062,340Long-term debt


930,990



873,738



947,628Other liabilities


450,183



475,464



426,601Commitments and contingenciesEquities:Equity certificates


2,344,229



2,401,514



2,198,991Preferred stock


319,368



319,368



282,694Accumulated other comprehensive loss


(200,621
)


(205,267
)


(159,040
)Capital reserves


1,093,970



820,049



875,036Total CHS Inc. equities


3,556,946



3,335,664



3,197,681Noncontrolling interests


289,603



268,787



248,555Total equities


3,846,549



3,604,451



3,446,236Total liabilities and equities

$
11,693,257


$
8,666,128


$
7,882,805    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 28,2011


2010


2011


2010(Dollars in thousands)(Unaudited)Revenues

$
7,706,119


$
5,878,493


$
15,841,223


$
12,073,734Cost of goods sold


7,413,196



5,711,768



15,239,224



11,704,348Gross profit


292,923



166,725



601,999



369,386Marketing, general and administrative


102,392



92,055



200,786



172,561Operating earnings


190,531



74,670



401,213



196,825Gain on investments


(66
)


(13,775
)


(66
)


(13,775
)Interest, net


18,368



14,259



35,459



30,471Equity income from investments


(41,931
)


(18,934
)


(79,566
)


(51,100
)Income before income taxes


214,160



93,120



445,386



231,229Income taxes


2,341



6,961



27,232



22,535Net income


211,819



86,159



418,154



208,694Net income attributable to noncontrolling interests


17,221



3,491



21,831



6,076Net income attributable to CHS Inc.

$
194,598


$
82,668


$
396,323


$
202,618    4




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES
 CONSOLIDATED
    STATEMENTS OF CASH FLOWS  For the Six Months EndedFebruary 28,2011


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

$
418,154


$
208,694Adjustments to reconcile net income to net cash used in
    operating activities:Depreciation and amortization


104,116



101,108Amortization of deferred major repair costs


14,224



9,505Income from equity investments


(79,566
)


(51,100
)Distributions from equity investments


58,713



56,757Noncash patronage dividends received


(1,567
)


(1,613
)Gain on sale of property, plant and equipment


(2,554
)


(2,118
)Gain on investments


(66
)


(13,775
)Deferred taxes


(20,235
)


13,436Other, net


262



388Changes in operating assets and liabilities:Receivables


(246,541
)


80,878Inventories


(1,270,940
)


(508,964
)Derivative assets


(482,101
)


92,712Other current assets and other assets


(838,961
)


(202,191
)Customer credit balances


319,084



(137,529
)Customer advance payments


729,691



369,918Accounts payable and accrued expenses


188,662



(107,199
)Derivative liabilities


169,520



(126,338
)Other liabilities


(17,076
)


(15,034
)Net cash used in operating activities


(957,181
)


(232,465
)Cash flows from investing activities:Acquisition of property, plant and equipment


(142,530
)


(164,289
)Proceeds from disposition of property, plant and equipment


4,779



2,984Expenditures for major repairs


(82,931
)


(5,085
)Investments


(5,344
)


(9,323
)Investments redeemed


26,472



94,069Changes in notes receivable


(216,564
)


(45,957
)Business acquisitions, net of cash acquired


(65,548
)Other investing activities, net


32Net cash used in investing activities


(481,634
)


(127,601
)Cash flows from financing activities:Changes in notes payable


1,378,646



(49,045
)Long-term debt borrowings


100,000Principal payments on long-term debt


(45,078
)


(14,738
)Payments for bank fees on debt


(3,648
)Changes in checks and drafts outstanding


8,061



53,067Distributions to noncontrolling interests


(4,190
)


(1,423
)Preferred stock dividends paid


(12,272
)


(10,976
)Retirements of equities


(52,178
)


(11,476
)Cash patronage dividends paid


(141,376
)


(153,759
)Other financing activities, net


(14
)


64Net cash provided by (used in) financing activities


1,227,951



(188,286
)Effect of exchange rate changes on cash and cash equivalents


327



(3,618
)Net decrease in cash and cash equivalents


(210,537
)


(551,970
)Cash and cash equivalents at beginning of period


394,663



772,599Cash and cash equivalents at end of period

$
184,126


$
220,629    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 and Reclassifications
    860-10-65-2,
  Form 10-K,
  No. 860-10-65-3, No. 2010-20,
  Derivative
    Instruments and Hedging Activities
      over-the-counter
 6




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##### Table of Contents



February 28, 2011

August 31, 2010

February 28, 2010Purchase

Sales

Purchase

Sales

Purchase

SalesContracts

Contracts

Contracts

Contracts

Contracts

Contracts(Units in thousands)Grain and oilseed  bushels


831,629



1,179,941



747,334



1,039,363



558,538



835,564Energy products  barrels


11,423



10,099



8,633



10,156



8,077



8,367Crop nutrients  tons


1,633



2,225



1,257



1,215



1,042



1,419Ocean and barge freight - metric tons


1,941



281



1,385



279



2,892



3,048     February 28,


August 31,


February 28,2011


2010


2010Derivative Assets:Commodity and freight derivatives

$
1,120,094


$
461,580


$
234,260Foreign exchange derivatives










59$
1,120,094


$
461,580


$
234,319Derivative Liabilities:Commodity and freight derivatives

$
842,280


$
495,569


$
332,284Foreign exchange derivatives


121



222



6Interest rate derivatives


551



1,227



3,179$
842,952


$
497,018


$
335,469     February 28,

August 31,2011

2010Derivative Liabilities:Commodity and freight derivatives

$
1,123


$
3,959     Amount of


Amount ofGain (Loss)


Gain (Loss)Location of

For the Three Months Ended February 28,


For the Six Months Ended February 28,Gain (Loss)

2011


2010


2011


2010Commodity and freight derivatives

Cost of goods sold

$
101,381


$
25,885


$
311,805


$
31,782Foreign exchange derivatives

Cost of goods sold


452



53



(598
)


53Interest rate derivatives

Interest, net


58



(363
)


65



(1,008
)$
101,891


$
25,575


$
311,272


$
30,827    7




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##### Table of Contents



February 28,

August 31,2011

2010Losses included in accumulated other comprehensive loss, net of
    tax benefit of $0.4 million and $1.5 million, respectively

$
(686
)

$
(2,419
)   Goodwill
    and Other Intangible Assets
          Recent
    Accounting Pronouncements
  No. 2010-06, No. 2010-06 No. 2010-06
 8




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##### Table of Contents



Note 2.
    Receivables  February 28,


August 31,


February 28,2011


2010


2010Trade accounts receivable

$
1,739,621


$
1,543,530


$
1,409,309Cofina Financial notes receivable


560,196



340,303



293,436Other


174,806



123,770



170,8352,474,623



2,007,603



1,873,580Less allowances and reserves


95,213



99,535



90,833$
2,379,410


$
1,908,068


$
1,782,747     12-14 months
    Note 3.
    Inventories  February 28,


August 31,


February 28,2011


2010


2010Grain and oilseed

$
1,673,116


$
983,846


$
776,229Energy


605,791



515,930



518,735Crop nutrients


381,554



135,526



246,252Feed and farm supplies


485,656



242,482



399,292Processed grain and oilseed


76,042



74,064



85,019Other


10,156



9,528



9,764$
3,232,315


$
1,961,376


$
2,035,291   last-in-first first-in-first
 9




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##### Table of Contents



Note 4.
    Other
    Current Assets  February 28,


August 31,


February 28,2011


2010


2010Hedging Deposits

$
1,018,105


$
618,385


$
190,604Prepaid Merchandise


448,311



52,921



363,984Other


184,311



134,435



95,409$
1,650,727


$
805,741


$
649,997     Note 5.
    Investments  50-50
    For the Three Months Ended

For the Six Months EndedFebruary 28,

February 28,2011

2010

2011

2010Net sales

$
541,439


$
460,931


$
1,081,920


$
949,401Gross profit


66,581



47,741



129,376



116,657Net income


29,438



8,083



52,296



37,556Net income attributable to CHS Inc.


14,719



4,042



26,148



18,778   February 28,

August 31,

February 28,2011

2010

2010Current assets

$
566,516


$
512,554


$
484,189Non-current assets


460,177



459,346



453,935Current liabilities


218,405



166,408



162,447Non-current liabilities


299,837



308,795



303,936    10




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##### Table of Contents



Note 6.
    Notes
    Payable and Long-Term Debt  February 28,


August 31,


February 28,2011


2010


2010Notes payable

$
1,190,862


$
29,776


$
14,994Cofina Financial notes payable


449,874



232,314



182,833$
1,640,736


$
262,090


$
197,827   364-day
        Note 7.
    Interest,
    net  For the Three Months Ended


For the Six Months EndedFebruary 28,


February 28,2011


2010


2011


2010Interest expense

$
20,258


$
17,515


$
39,155


$
35,794Capitalized interest


(1,296
)


(1,527
)


(2,692
)


(3,051
)Interest income


(594
)


(1,729
)


(1,004
)


(2,272
)Interest, net

$
18,368


$
14,259


$
35,459


$
30,471  11




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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.


396,323



202,618Other comprehensive income (loss)


4,646



(2,770
)Patronage distribution


(401,962
)


(437,640
)Patronage accrued


396,500



426,500Equities retired


(52,178
)


(11,476
)Equity retirements accrued


52,178



11,476Equities issued in exchange for elevator properties






616Preferred stock dividends


(12,272
)


(10,976
)Preferred stock dividends accrued


4,091



3,659Accrued dividends and equities payable


(167,491
)


(81,059
)Other, net


1,447



6,431CHS Inc. balances, February 28, 2011 and 2010

$
3,556,946


$
3,197,681Noncontrolling interests balances, September 1, 2010 and
    2009

$
268,787


$
242,862Net income attributable to noncontrolling interests


21,831



6,076Distributions to noncontrolling interests


(4,190
)


(1,423
)Distributions accrued


2,757



1,014Other


418



26Noncontrolling interests balances, February 28, 2011 and
    2010

$
289,603


$
248,555   Note 9.
    Comprehensive
    Income   12




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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 February 28, 2011 and 2010:Service cost

$
6,467


$
5,206


$
319


$
308


$
421


$
329Interest cost


5,505



5,745



496



571



509



517Expected return on plan assets


(10,480
)


(9,231
)Prior service cost amortization


582



549



35



105



153



139Actuarial loss (gain) amortization


3,960



2,633



256



159



87



(11
)Transition amount amortization


















50



50Net periodic benefit cost

$
6,034


$
4,902


$
1,106


$
1,143


$
1,220


$
1,024Components of net periodic benefit costs for the six months
    ended February 28, 2011 and 2010:Service cost

$
12,934


$
10,412


$
639


$
616


$
841


$
659Interest cost


11,010



11,495



993



1,142



1,018



1,035Expected return on plan assets


(20,955
)


(18,451
)Prior service cost amortization


1,164



1,097



70



210



306



274Actuarial loss (gain) amortization


7,924



5,271



509



318



174



(23
)Transition amount amortization


















101



101Net periodic benefit cost

$
12,077


$
9,824


$
2,211


$
2,286


$
2,440


$
2,046   Employer
    Contributions:
    Note 11.
    Segment
    Reporting   13




---



##### Table of Contents



14




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##### Table of Contents



Ag


Corporate


ReconcilingEnergy


Business


and Other


Amounts


TotalFor the Three Months Ended February 28, 2011Revenues

$
2,558,415


$
5,215,991


$
16,659


$
(84,946
)

$
7,706,119Cost of goods sold


2,417,440



5,081,404



(702
)


(84,946
)


7,413,196Gross profit


140,975



134,587



17,361







292,923Marketing, general and administrative


33,937



51,704



16,751







102,392Operating earnings


107,038



82,883



610







190,531Gain on investments






(66
)










(66
)Interest, net


1,295



14,353



2,720







18,368Equity income from investments


(1,467
)


(18,319
)


(22,145
)






(41,931
)Income before income taxes

$
107,210


$
86,915


$
20,035


$



$
214,160Intersegment revenues

$
(84,946
)









$
84,946


$
For the Three Months Ended February 28, 2010 
    RevisedRevenues

$
2,037,528


$
3,897,632


$
11,532


$
(68,199
)

$
5,878,493Cost of goods sold


1,990,171



3,790,861



(1,065
)


(68,199
)


5,711,768Gross profit


47,357



106,771



12,597







166,725Marketing, general and administrative


29,125



49,413



13,517







92,055Operating earnings


18,232



57,358



(920
)






74,670Gain on investments






(67
)


(13,708
)






(13,775
)Interest, net


3,070



6,736



4,453







14,259Equity income from investments


(1,190
)


(11,746
)


(5,998
)






(18,934
)Income before income taxes

$
16,352


$
62,435


$
14,333


$



$
93,120Intersegment revenues

$
(68,199
)









$
68,199


$
For the Six Months Ended February 28, 2011Revenues

$
4,951,157


$
11,031,505


$
32,273


$
(173,712
)

$
15,841,223Cost of goods sold


4,722,883



10,691,724



(1,671
)


(173,712
)


15,239,224Gross profit


228,274



339,781



33,944







601,999Marketing, general and administrative


64,013



104,591



32,182







200,786Operating earnings


164,261



235,190



1,762







401,213Gain on investments






(66
)










(66
)Interest, net


2,928



27,025



5,506







35,459Equity income from investments


(3,133
)


(33,358
)


(43,075
)






(79,566
)Income before income taxes

$
164,466


$
241,589


$
39,331


$



$
445,386Intersegment revenues

$
(173,712
)









$
173,712


$
Goodwill

$
1,165


$
15,687


$
6,898






$
23,750Capital expenditures

$
90,756


$
50,551


$
1,223






$
142,530Depreciation and amortization

$
59,017


$
37,058


$
8,041






$
104,116Total identifiable assets at February 28, 2011

$
3,098,161


$
6,021,339


$
2,573,757






$
11,693,257 15




---



##### Table of Contents



Ag


Corporate


ReconcilingEnergy


Business


and Other


Amounts


TotalFor the Six Months Ended February 28, 2010 
    RevisedRevenues

$
4,302,108


$
7,898,164


$
22,906


$
(149,444
)

$
12,073,734Cost of goods sold


4,212,891



7,643,589



(2,688
)


(149,444
)


11,704,348Gross profit


89,217



254,575



25,594







369,386Marketing, general and administrative


57,015



90,467



25,079







172,561Operating earnings


32,202



164,108



515







196,825Gain on investments






(67
)


(13,708
)






(13,775
)Interest, net


3,859



16,758



9,854







30,471Equity income from investments


(2,296
)


(24,116
)


(24,688
)






(51,100
)Income before income taxes

$
30,639


$
171,533


$
29,057


$



$
231,229Intersegment revenues

$
(149,444
)









$
149,444


$
Goodwill

$
1,983


$
8,465


$
6,898






$
17,346Capital expenditures

$
90,495


$
70,998


$
2,796






$
164,289Depreciation and amortization

$
59,475


$
34,119


$
7,514






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

$
2,845,306


$
3,846,184


$
1,191,315






$
7,882,805   Note 12.
    Fair
    Value Measurements    Fair Value Measurements at February 28, 2011Quoted Prices in





SignificantActive Markets for


Significant Other


UnobservableIdentical Assets


Observable Inputs


Inputs(Level 1)


(Level 2)


(Level 3)


TotalAssets:Readily marketable inventories





$
1,749,157






$
1,749,157Commodity and freight derivatives

$
72,219



656,503







728,722Other assets


71,452











71,452Total Assets

$
143,671


$
2,405,660






$
2,549,331Liabilities:Commodity and freight derivatives

$
118,661


$
333,370






$
452,031Foreign currency derivatives


121











121Interest rate swap derivatives






551







551Total Liabilities

$
118,782


$
333,921






$
452,703   16




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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 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 and freight derivatives

$
12,117



66,511







78,628Other assets


56,287











56,287Total Assets

$
68,404


$
927,759






$
996,163Liabilities:Commodity and freight 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
 17




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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, February 28, 2010

$
       Note 13.
    Commitments
    and Contingencies  Guarantees
   18




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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.
    ®
       19




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##### Table of Contents



Recent
    Events
       20




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##### Table of Contents



Results
    of Operations
  Comparison
    of the three months ended February 28, 2011 and
    2010
  General.
        Net Income attributable to CHS
    Inc.
  Revenues.
   21




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##### Table of Contents



Cost of Goods Sold.
   22




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##### Table of Contents



Gain on Investments.
  Marketing, General and
    Administrative.
  Interest, net.
 23




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##### Table of Contents



Equity Income from Investments.
      Income Taxes.
  Noncontrolling Interests.
  Comparison
    of the six months ended February 28, 2011 and
    2010
  General.
 24




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##### Table of Contents



Net Income attributable to CHS
    Inc.
  Revenues.
     25




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##### Table of Contents



Cost of Goods Sold.
   26




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##### Table of Contents



Gain on Investments.
  Marketing, General and
    Administrative.
  Interest, net.
 27




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##### Table of Contents



Equity Income from Investments.
      Income Taxes.
  Noncontrolling Interests.
  Liquidity
    and Capital Resources
   28




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##### Table of Contents



364-day 364-day
        Cash
    Flows from Operations
       29




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##### Table of Contents



Cash
    Flows from Investing Activities
     30




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##### Table of Contents



five-to-six-week
            Cash
    Flows from Financing Activities
    Working
    Capital Financing
  364-day 364-day
 31




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##### Table of Contents



Cofina
    Financial Financing
        Long-term
    Debt Financing
    Form 10-K
 32




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##### Table of Contents



33




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##### Table of Contents



Other
    Financing
            Off
    Balance Sheet Financing Arrangements
  Lease
    Commitments:
  Form 10-K
 34




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##### Table of Contents



Guarantees:
    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. 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. 36




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##### Table of Contents



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)
 37




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##### Table of Contents



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

Description10
.1

Loan Agreement (Term Loan) between CHS Inc. and European Bank
    for Reconstruction and Development, dated January 5, 2011
    (Incorporated by reference to our Current Report on
    Form 8-K,
    filed January 18, 2011).10
.2

Revolving Loan Agreement between CHS Inc. and European Bank for
    Reconstruction and Development, dated November 30, 2010
    (Incorporated by reference to our Current Report on
    Form 8-K,
    filed January 18, 2011).10
.3

Loan Origination and Participation Agreement dated as of
    December 31, 2010, by and among AgStar Financial Services,
    PCA, d/b/a ProPartners Financial, Cofina Financial, LLC and
    Cofina ProFund LLC10
.4

Amended and Restated Credit Agreement dated as of
    January 31, 2011, by and among National Cooperative
    Refinery Association, various lenders and CoBank, ACB.31
.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  38




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SIGNATURES         
    39