happyfarmer - 10/11/2017 21:50

80,000 acres @ say $700 average an acre income this year is only $56,000,000.....I sure hope there are a whole lot more hard assets somewhere.....cuz that's $90,000,000 less than they are owed.....that's basically 2 more crop incomes with ZERO expense against them......how in the heck can anyone build that much debt up without any assets.....something is missing here.......just gotta follow the $$'s cuz I doubt they could lose $100M that fast......

farmer507 - 9/1/2017 00:14


On July 14, 2017 CHS filed its 10-Q and reported the following in the Notes to Consolidated Financial Statements:

As of August 31, 2016, a single producer borrower accounted for 20% of the total outstanding CHS Capital notes receivable. During the third quarter of fiscal 2017, CHS Capital concluded a transaction with the single producer borrower whereby CHS Capital obtained from the borrower title to approximately 14,000 acres of land and improvements that, prior to the transaction, was owned by the borrower and served as collateral for the outstanding loans to CHS Capital. The amount corresponding to the fair value of the land and improvements, approximately $139.0 million , was credited against the notes receivable from this single producer borrower. As a result of this arrangement, all remaining outstanding notes receivable balances and corresponding reserves related to this single producer borrower were removed from the balance sheet of CHS Capital. However, we continue to enforce our rights under the various agreements between us and the producer borrower to pursue future potential recoveries. The collateral received in connection with the arrangement has been recorded in “Property, plant and equipment” on the Consolidated Balance Sheet.

CHS has taken 14,000 acres from Boersen. The lawsuit is an attempt to recover the reminder of the previous loans made to Boersen by harvesting 2017 crops. It doesn't look like this will end well for either party.