ABOUT US AGRONOMY ENERGY FEED GRAIN Mitchell, SD| Careers | Contact Us Intern with us! Home / CHS News / Co-op 101: What is a cooperative? Published October 12, 2021 Co-op 101: What is a cooperative? October is National Co-op Month and a time to celebrate the cooperative model and the strength it brings to local communities. “CHS is proud to be part of the cooperative system and we’re driven by our purpose to create connections to empower agriculture,” says Jay Debertin, CHS president and CEO. “Our values of inclusion, integrity, cooperative spirit and safety guide us as we work together for shared success and to strengthen our communities.” Do you know what a co-op is? Here we break it down. What is a cooperative? A cooperative is defined by USDA as a user-owned and controlled business from which benefits are derived and distributed equitably on the basis of use or as a business owned and controlled by the people who use its services. Who determines policy? The CHS Board is made up of 17 member-owners, elected by the members. How are profits distributed? The business is operated for a profit; it’s how the profit is divided that makes a co-op unique. Unlike most corporations where the profits are distributed to stockholders, co-ops distribute profits to member-owners on a patronage basis. Patronage is a method of sharing profits among the members. It is based on how much they purchase and the profitability of the co-op. What kind of co-op system is CHS? CHS is a blended federated and centralized cooperative system. CHS is unique in that along with the federated system of member cooperatives, we also have Country Operations, made up of centralized retail locations dedicated to serve member-owners in their respective geographies. Along with member cooperatives, those member-owners of Country Operations locations vote for board members at the CHS annual meeting or are represented by delegates from their business unit at the annual meeting. Help us celebrate National Co-op Month by joining the conversation on social media using #CoopMonth. CHS News National Co-op Month Share this: RECENT POSTS GROWMARK and CHS Announce – Cooperative Ventures CHS reports fiscal year 2021 net income of $554.0 million Co-op 101: What is a cooperative? Internships CHS reports $273.6 million in fiscal 2021 third-quarter net income POPULAR POSTS Preparing for a Successful Planting Season Ian Sane As the weather begins to creep into warmer temperatures and the sun lingers in the sky lon... The Benefits of Precision Agriculture United Soybean Board When it comes to technology and data available within the agricultural industr... 3 Challenges Growers Face in Current Agriculture Landscape It’s easy to look around and see how agriculture impacts our world. This might be one of t... CATEGORIES Select Category CHS News Commentary COVID-19 Updates Uncategorized ARCHIVES Select Month November 2021 October 2021 September 2021 July 2021 June 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 September 2020 August 2020 July 2020 June 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 FOLLOW US HOME CHSINC.COM C MAGAZINE FLEET PROGRAM CONTACT US CAREERS ABOUT US GRAIN TRADING APP PRIVACY NOTICE COOKIE NOTICE APPLY FOR MEMBERSHIP COMMITTED TO FARM SAFETY WEATHER © 2021 CHS Inc.