CHS closes on acquisition of West Central Ag Services

ULEN, Minn. — CHS has closed on its acquisition of West Central Ag Services.

CHS, the largest farmer-owned agricultural cooperative in the U.S., announced that the acquisition was complete on Thursday, Jan. 2, and that the former West Central Ag Services now will be known as CHS West Central . All locations will remain operational and grain and agronomy services will continue to be available.

The business unit will remain based in Ulen, and Jesse McCollum, former West Central Ag Services CEO, will serve as senior director of operations. All West Central Ag Services employees were offered employment with CHS as part of the sale, and the local management team will continue to manage CHS West Central. The producer board that served West Central Ag Services will also remain in place.

“This is an exciting time for our owners and our cooperative as we join CHS and become part of the global supply chain through CHS,” McCollum said in a statement. “We are thrilled to be part of the nation’s leading farmer-owned cooperative to serve farmers in west-central Minnesota for generations to come.”

CHS also announced that Central Plains Ag Services , a joint venture in Hannaford, North Dakota, which formed in 2009 between West Central and CHS, now is wholly owned by CHS and has become part of the CHS ag retail business unit located in Devils Lake, North Dakota.

Besides its Ulen, Minnesota, base, West Central Ag Services had locations in Ada, Beltrami, Felton, Foxhome, Lake Park, Mahnomen, Park Rapids and Perley. The cooperative has offered crop nutrients, seed, crop protection products, producer financing, crop insurance, grain marketing, and tires and repair.

West Central Ag Services and CHS announced a merger agreement in May 2024, on which patrons had been slated to vote on Nov. 7. According to merger documents, the base cash price offered to the patrons was $200 million. Arthur Companies had made a bid to purchase West Central in April, which was rejected, but the company made a new bid on Nov. 4 for $250 million, restructuring their earlier proposal to take into account tax considerations .

The company took the offer straight to farmer-owners rather than just to the West Central board. West Central then delayed its vote on the merger until Nov. 26. In subsequent negotiations, CHS raised its bid to $225 million. Members of West Central Ag Services on Tuesday, Nov. 26, voted to approve a merger with CHS.

“Joining CHS was the right fit for us,” McCollum said. “West Central Ag Services and CHS have had a strong relationship for many years based on aligned visions to advance the cooperative system, serve our owners better and create more value for owners. Now we will do that as one cooperative.”