On Nov. 26, 2024, members of West Central Ag Services, a cooperative based in Ulen, Minnesota, voted in favor of merging with CHS Inc., the nation’s largest farmer-owned cooperative and global agribusiness. This merger, which will close in the coming weeks, marks a pivotal moment for both organizations, as West Central Ag Services solidifies its future within CHS’s expansive global network.
The decision to merge with CHS follows a thorough evaluation process by the West Central Ag Services board. After careful consideration of multiple offers, including a $250 million acquisition bid from North Dakota-based The Arthur Companies Inc., the board endorsed CHS’s $225 million acquisition offer. This decision came after CHS increased its initial offer of $200 million in response to Arthur’s competing bid.
West Central Ag Services, which operates primarily in the Red River Valley, reported $767 million in revenue and a $41 million profit last year. The cooperative’s long-standing relationship with CHS — spanning years of partnership as a member, customer, and joint venture partner — was a significant factor in the board’s decision to move forward with CHS.
Duane Brendemuhl, president and chair of the West Central Ag Services board, expressed enthusiasm for the merger, noting the strategic advantages it offers.
“Joining CHS connects our farmer-members in northwest Minnesota and eastern North Dakota to the global marketplace more efficiently,” Brendemuhl said. “This partnership will bring strength, long-term value, and a more direct link to the global ag supply chain, benefitting all cooperative members.”
Overwhelming member support
West Central Ag Services members gave overwhelming support to the board’s recommendation. Over 70% of members voted in favor of merging with CHS, exceeding the two-thirds approval required. This strong turnout set a new record with more than 1,100 active patrons participating.
For more than 18 months, West Central Ag Services’ leadership carefully explored future options for the cooperative, ultimately determining that CHS shares West Central’s vision, values and member-owned cooperative structure.
Brendemuhl wrote in a letter to members after the vote took place: “We are confident that you will benefit from being part of a cooperative system that is farmer-focused and globally connected," he said. "Most importantly, our commitment to serving you and how we conduct business will remain unchanged. Your trusted West Central employees and leadership team will remain in place, and you will continue as cooperative members through CHS.”
CHS West Central becomes key business unit
As part of the merger, West Central Ag Services will become an ag retail business unit within CHS, known as CHS West Central. The new unit will operate out of Ulen and integrate with CHS’s global grain and agronomy supply chains. This expansion supports CHS’s strategic goals to grow its global agricultural supply chain and enhance market access for its farmer-owners.
Rick Dusek, executive vice president of ag retail, distribution, and transportation at CHS, welcomed West Central Ag Services’ members and employees to CHS.
“We are excited to move forward as one cooperative,” Dusek said. “Together, we will provide broad market access for all our farmer-owners and strengthen our ability to connect more producers to the global ag supply chain.”
