CHS partners to build N.D. fertilizer warehouse

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CHS Inc., a leading farmer-owned cooperative and a global energy, grains and foods company, and Fessenden Cooperative Association, Fessenden, N.D., announced they have formed a 50-50 joint venture company to construct and operate a fertilizer warehouse at Hamberg, N.D. The facility will have 28,000 tons of nitrogen, potassium, sulfate, phosphorus and micronutrients storage capacity and product blending capabilities.

The new warehouse at Hamberg will primarily serve farmer-owners of Fessenden Cooperative Association retail business, and CHS will also serve its nearby wholesale customers from this location.

"Future market forces and trends for our region indicate we can expect more corn acres, CRP acres coming back into production, and overall increased fertilizer use to ensure healthy, profitable yields," said Mark Hovland, general manager, Fessenden Cooperative. "Our new, larger and more efficient facility will give area growers better overall fertilizer service and options."

Hovland said the fertilizer warehouse is the second major partnership with CHS. Last year, Fessenden Cooperative and CHS built a greenfield grain shuttle loading facility on the Burlington Northern rail line at Hamberg. "Long-range plans for improved fertilizer capacity and service have long been part of our growth strategy, and we look to CHS to provide global access to a wide array of markets as well as valuable marketing insights and expertise," he said.

"CHS is focused on expanding its crop nutrients business to continue to provide its retail customers with an assured, timely supply of crop nutrients vital to profitable crop production," said Cheryl Schmura, CHS vice president, Crop Nutrients, marketing and sales. "Our partnership with Fessenden Cooperative adds critical storage capacity in a key geography."

Plant construction will begin this summer and is expected to be completed by fall of 2015. When the plant is operational, Hovland said three additional employees will be hired. 


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