##### 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
    May 31,
    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
  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, 2010NONE

NONE




---



##### 





INDEX
  PAGENO.PART I. FINANCIAL INFORMATIONItem 1.

Financial Statements (unaudited)


2Consolidated Balance Sheets as of May 31,
    2010, August 31, 2009 and May 31, 2009


3Consolidated Statements of Operations for the
    three months and nine months ended May 31, 2010 and 2009


4Consolidated Statements of Cash Flows for the
    nine months ended May 31, 2010 and 2009


5Notes to Consolidated Financial Statements


6Item 2.

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


18Item 3.

Quantitative and Qualitative Disclosures about
    Market Risk


37Item 4.

Controls and Procedures


37PART II. OTHER INFORMATIONItem 1A.

Risk Factors


38Item 6.

Exhibits


39SIGNATURE PAGE


40EX-10.1EX-10.2EX-10.3EX-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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
  May 31,


August 31,


May 31,2010


2009


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

$
305,322


$
772,599


$
166,480Receivables


2,038,681



1,827,749



2,089,913Inventories


1,650,579



1,526,280



2,022,804Derivative assets


103,196



171,340



274,913Other current assets


466,043



447,655



682,538Total current assets


4,563,821



4,745,623



5,236,648Investments


653,460



727,925



757,848Property, plant and equipment


2,195,028



2,099,325



2,054,692Other assets


280,199



296,972



321,241Total assets

$
7,692,508


$
7,869,845


$
8,370,429LIABILITIES AND EQUITIESCurrent liabilities:Notes payable

$
213,811


$
246,872


$
554,981Current portion of long-term debt


108,336



83,492



95,821Customer credit balances


170,866



274,343



235,012Customer advance payments


268,344



320,688



487,730Checks and drafts outstanding


105,732



86,845



153,735Accounts payable


1,234,604



1,289,139



1,223,207Derivative liabilities


183,935



306,116



352,545Accrued expenses


320,868



308,720



308,644Dividends and equities payable


136,191



203,056



108,701Total current liabilities


2,742,687



3,119,271



3,520,376Long-term debt


915,504



988,461



1,026,402Other liabilities


456,079



428,949



412,119Commitments and contingenciesEquities:Equity certificates


2,182,100



2,214,824



2,019,579Preferred stock


319,368



282,694



282,694Accumulated other comprehensive loss


(157,624
)


(156,270
)


(83,958
)Capital reserves


972,357



749,054



944,980Total CHS Inc. equities


3,316,201



3,090,302



3,163,295Noncontrolling interests


262,037



242,862



248,237Total equities


3,578,238



3,333,164



3,411,532Total liabilities and equities

$
7,692,508


$
7,869,845


$
8,370,429    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 31,2010


2009


2010


2009(Dollars in thousands)(Unaudited)Revenues

$
6,575,978


$
6,163,119


$
18,649,712


$
19,074,107Cost of goods sold


6,324,000



6,004,851



18,028,348



18,380,355Gross profit


251,978



158,268



621,364



693,752Marketing, general and administrative


96,024



90,417



268,585



277,131Operating earnings


155,954



67,851



352,779



416,621(Gain) loss on investments


(10,368
)


3,726



(24,143
)


55,701Interest, net


14,526



16,312



44,997



50,262Equity income from investments


(29,682
)


(42,985
)


(80,782
)


(74,096
)Income before income taxes


181,478



90,798



412,707



384,754Income taxes


21,983



14,226



44,518



47,178Net income


159,495



76,572



368,189



337,576Net income attributable to noncontrolling interests


14,046



12,003



20,122



53,476Net income attributable to CHS Inc.

$
145,449


$
64,569


$
348,067


$
284,100    4




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##### Table of Contents



CHS INC.
    AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  For the Nine Months EndedMay 31,2010


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

$
368,189


$
337,576Adjustments to reconcile net income to net cash (used in)
    provided by operating activities:Depreciation and amortization


151,603



144,683Amortization of deferred major repair costs


14,091



18,324Income from equity investments


(80,782
)


(74,096
)Distributions from equity investments


79,175



57,214Noncash patronage dividends received


(1,902
)


(3,229
)Gain on sale of property, plant and equipment


(4,437
)


(3,453
)(Gain) loss on investments


(24,143
)


55,701Deferred taxes


24,136



17,814Other, net


(1,952
)


2,839Changes in operating assets and liabilities:Receivables


(159,689
)


505,076Inventories


(124,252
)


366,904Derivative assets


69,827



94,589Other current assets and other assets


(16,541
)


(46,230
)Customer credit balances


(103,477
)


8,652Customer advance payments


(52,344
)


(161,799
)Accounts payable and accrued expenses


(41,113
)


(716,003
)Derivative liabilities


(122,181
)


78,954Other liabilities


3,471



(5,276
)Net cash (used in) provided by operating activities


(22,321
)


678,240Cash flows from investing activities:Acquisition of property, plant and equipment


(237,477
)


(225,888
)Proceeds from disposition of property, plant and equipment


8,081



8,902Expenditures for major repairs


(5,112
)


(34
)Investments


(15,389
)


(115,657
)Investments redeemed


113,979



10,836Proceeds from sale of investments






41,612Joint venture distribution transaction, net






850Changes in notes receivable


(56,793
)


71,454Acquisition of intangibles


(1,014
)


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






(76,364
)Other investing activities, net






320Net cash used in investing activities


(193,725
)


(285,289
)Cash flows from financing activities:Changes in notes payable


(33,061
)


60,758Principal payments on long-term debt


(46,885
)


(68,572
)Payments for bank fees on debt


(100
)


(1,584
)Changes in checks and drafts outstanding


18,886



(52,412
)Distributions to noncontrolling interests


(1,987
)


(18,610
)Preferred stock dividends paid


(17,112
)


(14,536
)Retirements of equities


(17,034
)


(40,835
)Cash patronage dividends paid


(153,891
)


(227,590
)Other financing activities, net


(47
)


370Net cash used in financing activities


(251,231
)


(363,011
)Net (decrease) increase in cash and cash equivalents


(467,277
)


29,940Cash and cash equivalents at beginning of period


772,599



136,540Cash and cash equivalents at end of period

$
305,322


$
166,480    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, ASC 860-10-65-1
  ASC 860-10-65-1
  Derivative
    Instruments and Hedging Activities
     6




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##### Table of Contents



over-the-counter
    2010

2009Purchase

Sales

Purchase

SalesContracts

Contracts

Contracts

Contracts(Units in thousands)Grain and oilseed  bushels


474,276



696,814



565,847



778,279Energy products  barrels


9,372



11,126



14,270



15,658Crop nutrients  tons


253



426



495



739Ocean and barge freight  metric tons


3,316



2,197



3,229



1,478     May 31,


August 31,


May 31,2010


2009


2009Derivative Assets:Commodity and freight derivatives

$
246,988


$
296,416


$
412,148Foreign exchange derivatives










91$
246,988


$
296,416


$
412,239Derivative Liabilities:Commodity and freight derivatives

$
326,235


$
426,281


$
483,632Foreign exchange derivatives


1,143







749Interest rate derivatives


2,033



4,911



5,490$
329,411


$
431,192


$
489,871     May 31,2010Derivative Assets:Commodity and freight derivatives

$
1,684  7




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##### Table of Contents



Amount ofGain (Loss)For the Three Months


For the Nine MonthsLocation of

Ended May 31,


Ended May 31,Gain (Loss)

2010


2009


2010Commodity and freight derivatives

Cost of goods sold

$
18,850


$
(38,047
)

$
50,632Foreign exchange derivatives

Cost of goods sold


(1,197
)


(2,754
)


(1,144
)Interest rate derivatives

Interest, net


229



(1,145
)


(779
)$
17,882


$
(41,946
)

$
48,709     May 31,2010Gains included in accumulated other comprehensive loss, net of
    tax expense of $655

$
1,029   Goodwill
    and Other Intangible Assets
        Recent
    Accounting Pronouncements
  ASC 715-20-65-2,
 8




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##### Table of Contents



ASC 715-20-65-2
  ASC 860-10-65-3, ASC 860-10-65-3
  ASC 860-10-65-2, ASC 860-10-65-2 ASC 860-10-65-2 ASC 860-10-65-2
  No. 2010-06, No. 2010-06 No. 2010-06
  Note 2.
    Receivables  May 31,


August 31,


May 31,2010


2009


2009Trade accounts receivable

$
1,640,507


$
1,482,921


$
1,680,703Cofina Financial notes receivable


288,560



254,419



386,733Other


201,477



189,434



122,7332,130,544



1,926,774



2,190,169Less allowances and reserves


91,863



99,025



100,256$
2,038,681


$
1,827,749


$
2,089,913  9




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##### Table of Contents



Note 3.
    Inventories  May 31,


August 31,


May 31,2010


2009


2009Grain and oilseed

$
644,583


$
638,622


$
900,394Energy


569,214



496,114



504,039Crop nutrients


83,332



114,832



175,812Feed and farm supplies


285,839



198,440



346,519Processed grain and oilseed


57,563



69,344



86,712Other


10,048



8,928



9,328$
1,650,579


$
1,526,280


$
2,022,804     Note 4.
    Investments  50-50
      available-for-sale
   10




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##### Table of Contents



For the Three Months Ended


For the Nine Months EndedMay 31,


May 31,2010


2009


2010


2009Net sales

$
496,622


$
491,687


$
1,446,023


$
1,569,855Gross profit


60,805



93,962



177,462



191,080Net income


25,060



52,669



62,616



81,425Net income attributable to CHS Inc.


12,530



26,335



31,308



40,713   May 31,


August 31,


May 31,2010


2009


2009Current assets

$
494,464


$
441,406


$
418,311Non-current assets


457,906



464,356



469,500Current liabilities


162,292



141,844



153,342Non-current liabilities


308,015



303,665



305,504   Note 5.
    Notes
    Payable  May 31,


August 31,


May 31,2010


2009


2009Notes payable

$
12,978


$
19,183


$
278,447Cofina Financial notes payable


200,833



227,689



276,534$
213,811


$
246,872


$
554,981     364-day
    Note 6.
    Interest,
    net  For the Three Months Ended


For the Nine Months EndedMay 31,


May 31,2010


2009


2010


2009Interest expense

$
17,337


$
20,030


$
53,131


$
62,361Capitalized interest


(1,527
)


(1,446
)


(4,578
)


(3,660
)Interest income


(1,284
)


(2,272
)


(3,556
)


(8,439
)Interest, net

$
14,526


$
16,312


$
44,997


$
50,262  11




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##### Table of Contents



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.


348,067



284,100Other comprehensive loss


(1,354
)


(15,916
)Patronage distribution


(438,014
)


(643,444
)Patronage accrued


426,500



652,000Equities retired


(17,034
)


(40,835
)Equity retirements accrued


50,122



90,781Equities issued in exchange for elevator properties


616



6,344Preferred stock dividends


(17,112
)


(14,536
)Preferred stock dividends accrued


3,659



3,016Accrued dividends and equities payable


(136,191
)


(105,659
)Other, net


6,640



(8,242
)CHS Inc. balances, May 31, 2010 and 2009

$
3,316,201


$
3,163,295Noncontrolling interests balances, September 1, 2009 and
    2008

$
242,862


$
205,732Net income attributable to noncontrolling interests


20,122



53,476Distributions to noncontrolling interests


(1,987
)


(18,610
)Distributions accrued


1,014



3,762Other


26



3,877Noncontrolling interests balances, May 31, 2010 and 2009

$
262,037


$
248,237     Note 8.
    Comprehensive
    Income   12




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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 the three months
    ended May 31, 2010 and 2009:Service cost

$
5,168


$
4,117


$
305


$
309


$
374


$
264Interest cost


5,774



5,745



564



611



551



521Expected return on plan assets


(9,220
)


(8,232
)Prior service cost amortization


548



528



104



137



136



(49
)Actuarial loss (gain) amortization


2,655



1,313



149



176



27



(78
)Transition amount amortization


















51



234Net periodic benefit cost

$
4,925


$
3,471


$
1,122


$
1,233


$
1,139


$
892Components of net periodic benefit costs for the nine months
    ended May 31, 2010 and 2009:Service cost

$
15,580


$
12,239


$
921


$
901


$
1,033


$
821Interest cost


17,269



17,127



1,706



1,799



1,586



1,642Expected return on plan assets


(27,671
)


(23,340
)Prior service cost amortization


1,645



1,586



314



410



410



(148
)Actuarial loss (gain) amortization


7,926



3,839



467



500



4



(161
)Transition amount amortization


















152



702Net periodic benefit cost

$
14,749


$
11,451


$
3,408


$
3,610


$
3,185


$
2,856   Employer
    Contributions:
    Note 10.
    Segment
    Reporting       13




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##### Table of Contents



14




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##### Table of Contents



Ag





Corporate


ReconcilingEnergy


Business


Processing


and Other


Amounts


TotalFor the Three Months Ended May 31, 2010Revenues

$
2,170,778


$
4,213,640


$
258,367


$
10,820


$
(77,627
)

$
6,575,978Cost of goods sold


2,063,829



4,084,233



254,672



(1,107
)


(77,627
)


6,324,000Gross profit


106,949



129,407



3,695



11,927







251,978Marketing, general and administrative


30,767



47,819



6,777



10,661







96,024Operating earnings (losses)


76,182



81,588



(3,082
)


1,266







155,954Gain on investments






(10,012
)






(356
)






(10,368
)Interest, net


3,656



6,000



5,161



(291
)






14,526Equity income from investments


(1,549
)


(9,019
)


(18,882
)


(232
)






(29,682
)Income before income taxes

$
74,075


$
94,619


$
10,639


$
2,145


$



$
181,478Intersegment revenues

$
(72,255
)

$
(5,094
)

$
(278
)





$
77,627


$
For the Three Months Ended May 31, 2009Revenues

$
1,564,568


$
4,388,338


$
252,067


$
11,630


$
(53,484
)

$
6,163,119Cost of goods sold


1,482,775



4,326,980



249,437



(857
)


(53,484
)


6,004,851Gross profit


81,793



61,358



2,630



12,487







158,268Marketing, general and administrative


31,876



38,704



6,667



13,170







90,417Operating earnings (losses)


49,917



22,654



(4,037
)


(683
)






67,851Loss on investments






112



3,614











3,726Interest, net


(67
)


10,285



8,337



(2,243
)






16,312Equity income from investments


(1,079
)


(11,396
)


(30,197
)


(313
)






(42,985
)Income before income taxes

$
51,063


$
23,653


$
14,209


$
1,873


$



$
90,798Intersegment revenues

$
(48,384
)

$
(4,533
)

$
(567
)





$
53,484


$
For the Nine Months Ended May 31, 2010Revenues

$
6,472,886


$
11,595,989


$
786,969


$
31,925


$
(238,057
)

$
18,649,712Cost of goods sold


6,276,720



11,238,883



754,589



(3,787
)


(238,057
)


18,028,348Gross profit


196,166



357,106



32,380



35,712







621,364Marketing, general and administrative


87,782



132,010



18,657



30,136







268,585Operating earnings


108,384



225,096



13,723



5,576







352,779Gain on investments






(23,787
)






(356
)






(24,143
)Interest, net


7,515



19,860



14,921



2,701







44,997Equity income from investments


(3,845
)


(27,400
)


(48,793
)


(744
)






(80,782
)Income before income taxes

$
104,714


$
256,423


$
47,595


$
3,975


$



$
412,707Intersegment revenues

$
(221,699
)

$
(14,735
)

$
(1,623
)





$
238,057


$
Goodwill

$
1,166


$
8,465






$
6,898






$
16,529Capital expenditures

$
139,504


$
90,192


$
4,651


$
3,130






$
237,477Depreciation and amortization

$
88,700


$
43,741


$
12,714


$
6,448






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

$
2,941,232


$
3,185,137


$
651,300


$
914,839






$
7,692,508For the Nine Months Ended May 31, 2009Revenues

$
5,661,267


$
12,758,575


$
833,585


$
35,209


$
(214,529
)

$
19,074,107Cost of goods sold


5,229,906



12,563,133



804,056



(2,211
)


(214,529
)


18,380,355Gross profit


431,361



195,442



29,529



37,420







693,752Marketing, general and administrative


93,369



125,812



20,946



37,004







277,131Operating earnings


337,992



69,630



8,583



416







416,621(Gain) loss on investments


(15,748
)


(2,889
)


74,338











55,701Interest, net


5,110



33,718



15,442



(4,008
)






50,262Equity income from investments


(2,906
)


(18,501
)


(51,936
)


(753
)






(74,096
)Income (loss) before income taxes

$
351,536


$
57,302


$
(29,261
)

$
5,177


$



$
384,754Intersegment revenues

$
(189,989
)

$
(22,644
)

$
(1,896
)





$
214,529


$
Goodwill

$
1,983


$
8,065






$
6,898






$
16,946Capital expenditures

$
170,373


$
47,929


$
5,684


$
1,902






$
225,888Depreciation and amortization

$
87,404


$
38,889


$
12,503


$
5,887






$
144,683Total identifiable assets at May 31, 2009

$
2,681,788


$
3,842,218


$
691,711


$
1,154,712






$
8,370,429  15




---



##### Table of Contents



Note 11.
    Fair
    Value Measurements    Fair Value MeasurementsQuoted 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, freight and foreign currency 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
  Other assets available-for-sale
  Interest rate swap derivatives
 16




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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



(908
)Settlements


(1,970
)


(3,836
)Balances, May 31, 2010 and 2009

$



$
2,410   Note 12.
    Commitments
    and Contingencies  Guarantees
   17




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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.
    ®
         18




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##### Table of Contents



860-10-65-1, ASC 860-10-65-1
  ASC 860-10-65-1
  Results
    of Operations
  Comparison
    of the three months ended May 31, 2010 and
    2009
  General.
   19




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over-the-counter lower-of-cost
      Net Income attributable to CHS
    Inc.
  Revenues.
 20




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21




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Cost of Goods Sold.
            Marketing, General and
    Administrative.
 22




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(Gain) loss on Investments.
  Interest, net.
  Equity Income from Investments.
         23




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Income Taxes.
  Noncontrolling Interests.
  Comparison
    of the nine months ended May 31, 2010 and
    2009
  General.
    lower-of-cost
 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



lower-of-cost
      Marketing, General and
    Administrative.
  Loss (Gain) on Investments.
  Interest, net.
 27




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Equity Income from Investments.
          Income Taxes.
  Noncontrolling Interests.
 28




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##### Table of Contents



Liquidity
    and Capital Resources
    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



31




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##### Table of Contents



Cash
    Flows from Financing Activities
  Working
    Capital Financing
  364-day
    Cofina
    Financial Financing
  and/or
     32




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Long-term
    Debt Financing
                  Form 10-K
 33




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##### Table of Contents



Other
    Financing
        Form S-1
   34




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##### Table of Contents



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
    Recent
    Accounting Pronouncements
  ASC 715-20-65-2, ASC 715-20-65-2
  ASC 860-10-65-3, ASC 860-10-65-3
 35




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##### Table of Contents



ASC 860-10-65-2, ASC 860-10-65-2 ASC 860-10-65-2 ASC 860-10-65-2
  No. 2010-06, No. 2010-06 No. 2010-06
  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. 36




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
    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  Rule 13a-15(e)
  Rule 13a-15(f)
 37




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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
 38




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cap-and-trade
  cap-and-trade
      ITEM 6.
    Exhibits  Exhibit

Description3
.1

Amended Article III, Section 3(b) of Bylaws of CHS
    Inc. (Incorporated by reference to our Current Report on
    Form 8-K,
    filed May 5, 2010)10
.1

CHS Inc. Nonemployee Director Retirement Plan10
.2

Trust Under the CHS Inc. Nonemployee Director Retirement
    Plan10
.3

CHS Inc. Supplemental Executive Retirement Plan (2010
    Restatement)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  39




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SIGNATURES
    
    
    40