Investments

6 Months Ended

Feb. 28, 2025


	February 28, 2025		August 31, 2024
	(Dollars in thousands)
Equity method investments:
CF Industries Nitrogen, LLC	$	2,527,092	$	2,544,530
Ventura Foods, LLC	485,131		511,231
Ardent Mills, LLC	242,726		234,021

Producer Ag, LLC	39,904		15,274
Other equity method investments	321,915		338,139
Other investments	151,376		137,772
Total investments	$	3,768,144	$	3,780,967

Joint ventures and other investments in which we have significant ownership and influence, but not control, are accounted for in our condensed consolidated financial statements using the equity method of accounting. Our significant equity method investments during the six months ended February 28, 2025, and February 29, 2024, consist of CF Industries Nitrogen, LLC ("CF Nitrogen"), Ventura Foods, LLC ("Ventura Foods"), Ardent Mills, LLC ("Ardent Mills") and Producer Ag, LLC ("Producer Ag"), which are summarized below. In addition to the recognition of our share of income from equity method investments, our equity method investments are evaluated for indicators of other-than-temporary impairment on an ongoing basis in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Other investments consist primarily of investments in cooperatives without readily determinable fair values and are generally recorded at cost, unless an impairment or other observable market price change occurs that requires an adjustment. We had approximately $613.8 million in cumulative undistributed earnings from our equity method investees included in the investments balance as of February 28, 2025.

CF Nitrogen

We have a $2.5 billion investment in CF Nitrogen, a strategic venture with CF Industries Holdings, Inc. ("CF Industries"). The investment consists of an approximate 8.4% membership interest (based on product tons) in CF Nitrogen. We account for this investment using the hypothetical liquidation at book value method, recognizing our share of the earnings and losses of CF Nitrogen as equity income from investments in our Nitrogen Production segment based on our contractual claims on the entity's net assets pursuant to the liquidation provisions of CF Nitrogen's Limited Liability Company Agreement, adjusted for semiannual cash distributions.

The following table provides summarized unaudited financial information for our equity method investment in CF Nitrogen for the six months ended February 28, 2025, and February 29, 2024:


	Six Months Ended
	February 28, 2025		February 29, 2024
	(Dollars in thousands)
Net sales	$	1,702,088	$	1,776,394
Gross profit	462,475		525,846
Net earnings	431,053		507,848
Earnings attributable to CHS Inc.	111,779		131,592

Ventura Foods, Ardent Mills and Producer Ag

We have a 50% interest in Ventura Foods, a joint venture with Mitsui & Co., that produces and distributes edible oil-based products. We also have a 12% interest in Ardent Mills, which is a joint venture with Cargill, Incorporated ("Cargill"), and Conagra Brands, Inc., and is the largest flour miller in the United States. In addition, we have a noncontrolling interest of approximately 57% in Producer Ag, a grain marketing joint venture with Mid-Kansas Cooperative. We account for Ventura Foods, Ardent Mills and Producer Ag as equity method investments. Our shares of the results of Ventura Foods and Ardent Mills are included in Corporate and Other and our share of the results of Producer Ag are included in our Ag segment.

The following table provides summarized unaudited financial information for our equity method investments in Ventura Foods, Ardent Mills and Producer Ag for the six months ended February 28, 2025, and February 29, 2024:


	Six Months Ended
	February 28, 2025		February 29, 2024
	(Dollars in thousands)
Net sales	$	4,057,799	$	4,173,355
Gross profit	609,805		520,243
Net earnings	307,665		280,843
Earnings attributable to CHS Inc.	83,543		77,820

Our investments in other equity method investees are not significant in relation to our condensed consolidated financial statements, either individually or in aggregate.