BYRON, Minn. — Two large southeastern Minnesota grain elevators are on the auction block this week.
St. Paul-based cooperative CHS Inc. is accepting bids for its elevators in Byron and Dodge Center on Aug. 10. Cooperative officials say selling the elevators is right move at this time.
“As you know, we are a cooperative and, therefore, focus decisions like this on the long-term needs of our farmer-owners. Farmers today expect speed, space and efficiency when it comes to handling grain,” wrote CHS’s Lisa Graham-Peterson in response to questions about the auction.
CHS Inc. is a national Fortune 100 company owned by farmers, ranchers and cooperatives. In addition to grain, feed and financial services, CHS manufactures and distributes Cenex fuels.
After the upcoming auction, CHS will still own elevators in Kasson, Claremont, Grand Meadow, Ostrander, St. Charles and Wykoff.
“We believe our other six locations are better positioned to meet … (farmers’) expectations, and the Byron and Dodge Center elevators could be put to good use by another owner,” added Graham-Peterson. “The Kasson facility, for example, is situated well, serving a good portion of our farmer-owners from a central point.”
CHS acquired the Byron and Dodge Center grain elevators when it absorbed Greenway Cooperative, of Rochester, in 2014.
The Byron elevator at 302 Byron Ave. has a 757,000 bushel capacity and two scales. Olmsted County estimated the market value of the property at $493,800 for 2017-2018.
The Dodge Center elevator at 13 First Ave. SE is a 433,000 bushel grain facility with a 2,000 bph grain dryer.
Graham-Peterson says selling via closed-bid auction is good way to handle such a sale.
“It helps keep the sale process on a defined timeline, which is in the best interests of both buyers and sellers,” she wrote.