Miller Magazine Issue: 145 January 2022

36 MILLER / january 2022 NEWS Two major US agricultural cooperatives Growmark and CHS announced the formation of Cooper- ative Ventures, a new capital fund that will focus on creating advancements in breakthrough tech- nologies for the agriculture industry. The fund will provide differentiated value to startups in the agricultural ecosystem by leveraging the expan- sive, connected networks, unparalleled access to the farmgate and proven success of the two agricultural cooperatives. Both companies will be equal partners in the $50 million fund, which will be established as its own separate legal entity. The combined markets of the two companies cover millions of acres and thousands of farm- ers that will create an industry-leading test field for products and services within North America. The fund has identified three core investment areas, or “Fields of Play,” to maximize the impact of each investment: crop production, supply chain, and sustain- ability. “This is a terrific opportunity to act cooperatively by working together on a venture meaningful to agricul- ture and our corresponding supply chains,” said Grow- mark CEO Jim Spradlin. “Both Growmark and CHS have trusted relationships and expertise within our networks, which will provide tremendous value for technology startups and ultimately benefit our respective customers. This is a natural evolution of Growmark’s AgValidity trial and testing program.” “This partnership will help accelerate technology solu- tions to existing and emerging challenges in agriculture and is yet another way CHS creates connections to em- power agriculture,” said Jay Debertin, president and CEO of CHS Inc. “Our ongoing commitment to investment in growth and innovation for the benefit of CHS owners and the cooperative system further places CHS and Grow- mark at the forefront of cutting-edge technology solu- tions by leveraging our deep expertise and strong con- nections with farmer-owners.” Growmark and CHS will provide tech startups unprecedented access to robust distribution capabilities within multiple val- ue chains, allowing for opportunities to test and refine at different scales. Having co- operative member-owners and customers within the same ecosystem will take these innovative ideas to a new level to create shareholder val- ue and customer-focused solutions. Special attention will be paid to the startup’s strate- gic fit with both Growmark and CHS. Other factors will be based on their drive to lead in the startup space, the ability to deliver value and quality, the experience of management, and ultimately the ability to take a product or service to market. Cooperative Ventures will be com- prised of teams based out of Bloomington, Illinois, and St. Paul, Minnesota. CHS and Growmark to create joint fund for agtech startups