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MKC, CHS to build grain terminal in Milan

first_imgFollow us on Twitter. The following is an article written on the website Kansas Agland by Amy Bickel.Special to Sumner Newscow — CHS Inc. and Mid-Kansas Cooperative announced plans Tuesday to officially build and operate a high-speed rail-shuttle grain storage and loading facility in Milan near Wellington.Site preparation will begin this month. Located in Sumner County, the facility will include a high-speed shuttle loader with access to the BNSF line. Upon completion, on-site storage will be approximately 7 million bushels, the cooperatives announced in a news release.In addition, the facility will have a receiving capacity of 100,000 bushels per hour by way of trucks, the release stated. 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.MKC and CHS announced in November they were considering the plan. During the past several months, MKC has presented to both the Sumner County Zoning Board and the Sumner County Commission. The anticipated completion date is May 31, 2017.“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, in the release. “The new facility fully aligns with our vision to be a financially strong, progressive, locally-owned agri-business for our member-owners.”The facility would operate as Producer Ag, a limited liability company owned by CHS and MKC. The LLC also operates a high-speed shuttle loading facility in Canton. The LLC is a member of Team Marketing Alliance, which would handle grain marketing services for the Sumner County facility.Expansion has been ongoing for CHS and MKC for the past few years. In spring 2014, the cooperative groups began construction on the grain terminal that features a 110-car train shuttle to transport grain to the Gulf of Mexico and other markets.In July, CHS and MKC announced that they would expand that location. With the Canton facility’s current on-site storage of 3 million bushels, the expansion at the Canton terminal will increase storage capacity to more than 7.5 million bushels.The Milan terminal will be operated by MKC.Christiansen said Sumner County location stood out as an excellent area to build 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.Expansion has been ongoing for CHS and MKC for the past few years. In spring 2014, the cooperative groups began construction on the grain terminal that features a 110-car train shuttle to transport grain to the Gulf of Mexico and other markets.In July, CHS and MKC announced that they would expand that location. With the Canton facility’s current on-site storage of 3 million bushels, the expansion at the Canton terminal will increase storage capacity to more than 7.5 million bushels.That project should be completed by May.Meanwhile, in Marquette, the MKC is building new offices among other upgrades.“Our alliance with global grain partner, CHS, connects MKC producer-members directly to the end-user through the cooperative system,” Christiansen said. “Our goal is to strategically position our cooperative for the future to add value for our producers.”MKC currently has more than 9,800 members. The cooperative 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.CHS is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients. The company also provides business solutions such as 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. Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comments (8) Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close WordPress.com Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings Sort by: Date Rating Last Activity Loading comments… You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. 0 Vote up Vote down Big D · 221 weeks ago New jobs and an increased tax base in Sumner County. WIN WIN for Sumner county tax payers. Yes, you will hear talk that this will hurt our local cooperatives but it will help the local producers with an increase in commodity price. There is enough here for everybody to survive. Report Reply 0 replies · active 221 weeks ago 0 Vote up Vote down Ed Larson · 221 weeks ago I support this facility coming to Sumner County. These co-ops put the small independent grain buyers out of business 30-40 years ago and now they cry about competition coming to the area. The one thing I do not like is the fact that the Sumner County Commissioners gave this operation 10 years of NO property taxes as they said MKC is expanding their operation into our county. I also “expanded” my operation by buying 160 acres yet I got no 10 years of no property taxes from the county commissioners for “expanding” my business. Now you know who pays for this loss of property tax income for the County, Townships and school district, yes you and I who have been here for years. While I support this company coming to Sumner County I resent the fact that they will pay NO property taxes for 10 years. What can I do? I will not take any grain to this facility for the period of time they pay NO property taxes eventhough it is only 5 miles from my farm. I will do business with the grain companies that ARE paying Sumner County property taxes. Report Reply 1 reply · active 221 weeks ago 0 Vote up Vote down Big D · 221 weeks ago I stand by my previous comment that it’s a WIN due to increased tax base and increased job, but I do agree that a 10 year tax abatement is extreme. Granted the employees will hopefully spend their payroll here in Sumner County generating sales tax revenue. The other local cooperatives must pay property taxes every year. I’d say give them a 3 year abatement to help the business get started and after that they could/should help support schools etc. like the rest of us. If I buy a new car, truck, boat etc. I get taxed twice…..pay the sales tax and then pay property tax every year. You get penalized for working to get ahead and have nice things. Report Reply +10 Vote up Vote down Old Farmer · 221 weeks ago I have to agree with the statement above about the No Tax on this structure. But have to disagree about the coops putting small independents out of business. I have chosen to be a member OWNER of local coops so that when we make a profit from the business the coop has to ether invest in infrastructure, equipment, or return it back to us in the form of cash, or Allocated Equities. That is the Coop business model and our local coops do a great job of making that happen. The part I worry about the most is that by trying to add too many players in the game, our millions of dollars in MEMBERS EQUITIES at our LOCAL COOP’S will be at risk. Report Reply 4 replies · active 221 weeks ago -3 Vote up Vote down Ed Larson · 221 weeks ago “MEMBERS EQUITIES” makes me laugh. I too am a member of two co-ops but this idea of equities is a joke. You pay imcome tax on the yearly “equity payment” and get 1/2 at best in that year but wait 10 years for the balance. You are basically giving the co-op a 10 year interest free loan. Today we only have one true independent grain buyer in Sumner County, Scoular grain. I do 95% of my business with them and will continue to do so. The cooperative system like local co-op who have all banded together under Comark are text book examples of socialism. Karl Marx would love the co-ops, everyone owning gogether sharing the profits, driving out the individually owned grain buyers. I’d rather get my money from an independent who bids higher on the grain at the time of sale than to wait years and get a catered meal and my money with no interest from the co-op. Report Reply +10 Vote up Vote down Ag Employee · 221 weeks ago Scoular is owned by a Chinese investment firm. Not sure where you’ve gotten this notion that they’re an “independent grain buyer”. It’s kind of ironic that you’re complaining about the local co-ops operating on a semi-socialist model when youre selling 95% of your grain to actual red communists. Report Reply -5 Vote up Vote down Ed Larson · 221 weeks ago You should do your homework and stop pulling crap from the air like Hillary. http://www.forbes.com/companies/scoular/ Scoular is #66 on Forbes list of independently owned companies. There is no Chinese investment. Stick to the facts. Scoular is the only independently owned grain buyer in Sumner County. Report Reply +8 Vote up Vote down Old Farmer · 221 weeks ago Since the farmers are the COOP that is a Interesting comparison of Karl Marx to Farmers owning their own marketing and supply business!!! I always considered working with my neighbors with only a small $50 to $ 200 investment in a membership that has paid millions to us investors and when times got rough have not sold out like some grain company’s to be pretty good interest paid back. Report Reply Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. 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