CHS joins Sunrise Ag Service in grain handling

by Eric Schroeder
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INVER GROVE HEIGHTS, MINN. —CHS Inc. and Sunrise Ag Service Co. on Wednesday agreed to two agreements the companies believe will enhance specialty and bulk grain-handling access via the Illinois river.

The first agreement calls for the two companies to establish a 50/50 limited liability partnership to build and operate a new river grain terminal at Havana, Ill.

According to CHS, the new river terminal at Havana will add storage capacity for identity-preserved and value-added grains destined for export through the Gulf of Mexico. The companies plan to build two 150,000-bu storage bins and space for a 1-million bu covered ground pile. Once completed, the terminal will be able to unload 20 trucks per hour, dry 5,000 bus per hour and move 40,000 bus per hour via barge belt, CHS said. The terminal is expected to be operational for the 2007 fall harvest.

As part of the second arrangement, the two companies have entered into a separate agreement with Clarkson Grain for another limited liability corporation to manage truck-to-barge access through two belts at the Beardstown, Ill., river terminal. The agreement includes a long-term grain put-through arrangement for specialty-trait and bulk grain from CHS and Sunrise Ag Service, as well as new container loading/unloading services.

"We’re honored to be in partnership with Sunrise Ag Service, a co-op with a deep tradition of serving grain producers in this geography," said Rick Browne, CHS grain marketing senior vice-president. "CHS has a long history of both specialty and bulk grain programs that make the most of our diverse and integrated system. Sunrise Ag Service will help us deliver even more value to all our grain customers."

Rich Vanderpool, general manager for Sunrise Ag, said the alliance with CHS allows the company’s stockholders to connect directly to the end-user through the cooperative system.

CHS is a diversified energy, grains and foods company owned by farmers, ranchers and cooperatives from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas.

Sunrise Ag Service Co. is an Illinois-based locally owned, full-service agricultural cooperative serving producers in Mason, Cass and southeastern Fulton counties in Illinois.

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