Value Added Cattle Program
The CHS Value Added Cattle Program makes cattle available to producers wanting to convert surplus labor, facilities and roughages to cash through the feeding of cattle. Through this collaborative program, CHS places cattle with a feeder that provides the necessary facilities, labor and management to properly care for the livestock.
CHS owns the cattle, and upon selling the cattle, pays the feeder an amount equal to the sale proceeds less costs incurred by CHS. Those costs may include, but are not limited to, procurement of the cattle, management and marketing, transportation, insurance, hedging and/or options, interest on such costs and the basic program fee. Interests are calculated at a variable rate. The program fee is also a variable rate per head, with half chargeable when the cattle are placed and the balance when the cattle are marketed.
A separate account to manage these costs is established for each feeding project. All proceeds from the cattle sale are credited to the account, project costs are deducted, and the remaining balance is paid to the feeder as a return on labor, management and facilities.
For more information on the Value Added Cattle Program, contact CHS at 800-677-4482.
To apply for the Value Added Cattle Program, please complete the Value Added Program application.
