Two major agricultural cooperatives, CHS Inc. and Growmark, announced Wednesday the formation of Cooperative Ventures, a venture capital fund that will invest in breakthrough technology related to the agriculture industry.
Inver Grove Heights-based CHSand Bloomington, Illinois-based Growmark will be equal partners in the $50 million fund, which is focused on crop production, supply chain and sustainability. The firm's team will operate out of offices in St. Paul and Bloomington, Illinois.
"This partnership will help accelerate technology solutions to existing and emerging challenges in agriculture and is yet another way CHS creates connections to empower agriculture," said Jay Debertin, president and CEO of CHS, in a statement. "Our ongoing commitment to investment in growth and innovation for the benefit of CHS owners and the cooperative system further places CHS and Growmark at the forefront of cutting-edge technology solutions by leveraging our deep expertise and strong connections with farmer-owners."
The two agriculture cooperatives' combined market covers millions of acres and thousands of farmers, allowing for tech startups to test and refine their products at differing scales.
Investments will be made based on startups' strategic fit within Growmark and CHS, as well as their ability to deliver value, their leadership experience and their ability to bring services to market.
