News Release | MKC, CHS to build grain terminal in Milan

News Release | MKC, CHS to build grain terminal in MilanCHS Inc., an energy, grains and food company and the nation’s leading farmer-owned cooperative, and MKC, a full-service farm cooperative offering a complete line of products, programs and services throughout Kansas, announce plans to officially build and operate a high-speed rail-shuttle grain storage and loading facility in Milan, Kan.

Plans for the facility include 7 million bushels of storage including upright and flat storage with receiving capacity of 100,000 bushels per hour by way of trucks. Rail load-out capacity will be in excess of 80,000 bushels per hour and will include a circle rail track capable of holding 120 railcars in addition to mainline locomotives with access to the BNSF.

Work on the project is expected to begin mid May, with an anticipated completion date of May 31, 2017, weather permitting. The site is approximately 8 miles south of Conway Springs and 6 miles east of Argonia.

“The new assets will give area producers direct access and ownership in the supply and distribution chain, bringing them one step closer to world markets which will add value to our member-owner’s farming operations,” said Dave Christiansen, president and CEO, MKC.  “The new facility fully aligns with our vision to be a financially strong, progressive, locally-owned agri-business for our member-owners.”

“CHS is excited to continue to expand state-of-the-art grain operations in the region with our partners at MKC,” said Mike Johnston, senior vice president, CHS. ”This new project is a great example of how cooperative relationships, like the valuable one between CHS and MKC, demonstrate our collective commitment to providing access to all markets for producers’ commodities.”

The facility will be owned by Producer Ag, LLC, a limited liability company owned by CHS and MKC. Producer Ag, LLC is a 50/50 joint venture with a governing board of representatives from both CHS and MKC. The terminal will be operated by MKC. The LLC also operates a high-speed shuttle loading facility in Canton, Kan. The LLC is a member of Team Marketing Alliance (TMA) which would handle grain marketing services for the Sumner County facility.

“The location in Sumner County quickly stood out as an excellent area when considering the number of acres in crop production, type of acres planted, grains produced, end users for bushels produced, and the future potential for production,” Christiansen said. “We appreciate Sumner County’s efforts to welcome us into the community and we look forward to helping local producers be more successful.”

During the past several months, MKC has presented to both the Sumner County Zoning Board and the Sumner County Commission. MKC and CHS made announcements in November 2015 they were considering plans to build and operate a grain terminal in Milan, Kan.

About MKC
MKC is a full-service farm cooperative offering a complete line of products, programs and services for both farm and urban customers throughout Kansas. With a current membership of more than 9,800 members, MKC specializes in grain, agronomy, energy, feed and risk management. Since its founding in 1965, MKC has expanded its footprint through mergers and acquisitions to meet the needs of the producer.  Learn more about MKC at www.mkcoop.com.

About CHS
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.

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