| "We were able to harvest enough frozen beets for a
30-day slice at the factory. That gives the growers some time to figure
out what to do with the rest." --Russ Fullmer
Still stung by the four-day cold snap last week that froze sugarbeet
fields throughout the valley, the growers are working to minimize their
losses.
The cold snap hit the growers before they could complete more than 40
percent of the harvest. As a result, three-fifths of the beets planted in
the region, or about 600,000 tons, were frozen last week.
After harvesting Wednesday, Thursday and Friday, the sugarbeet growers
of the valley took a pause this weekend to survey the condition of the
beets still in the ground.
"We were able to harvest enough frozen beets for a 30-day slice at
the factory. That gives the growers some time to figure out what to do
with the rest," said Holly Sugar's Ag Manager Russ Fullmer.
"There's so much money invested in these beets. We need to make a
smart decision on how to proceed."
Don Steinbeisser, president of the Montana-Dakota Beet Growers
Association, said the members must decide to either proceed with harvest
or wait a bit longer for the beets to heal. "Those beets are better
off in the ground," he said. "The question is how long should we
wait, and how long can we count on the weather."
At the association's meeting Tuesday, the growers decided to accept an
offer made by Holly Sugar CEO/President Roger Hill. The agreement has the
growers paying all the variable and fixed costs plus a toll of $5.25 per
ton for the processing of the frozen beets in exchange for full ownership
of the resulting sugar, molasses and pulp.
"For the next 100 days, the growers association is essentially
running the factory," Steinbeisser said. "The Holly people are
calling us now for a lot of decisions when they would normally be calling
the corporate people at Imperial."
Holly Sugar also agreed to put a processing priority on the frozen
beets. The growers, however, will have to pay the toll on all beets
received at Holly. "It's not what the growers were hoping for,"
said Steinbeisser. "We hoped Holly would only charge the toll for
beets that actually get sliced."
Steinbeisser said he's worried that many of the harvested frozen beets
might not store well enough for processing, especially toward the end of
the 100-day slice period. To combat the problem, Holly is shipping extra
ventilation pipes from the Torrington, Wyo., factory to achieve the best
possible storage.
"We're going to do whatever we can," Steinbeisser said.
"We're even looking at a chemical used in potato storage that might
slow down bacteria growth."
Meanwhile, Steinbeisser has also been busy contacting Montana's U.S.
Congressional Delegation to apprise them of the situation. He also talked
with Montana Department of Agriculture Director Ralph Peck and the
governor's office.
"Even with a best-case scenario, a lot of growers are still going
to need some disaster assistance or something like that to stay
solvent," Steinbeisser said. "A 25-30 percent loss is the best
we can hope for this harvest. That's still enough to sink some
growers."
Some type of crop disaster declaration is expected Monday when growers
and local government officials meet with the Farm Service Agency Monday at
1 p.m. "The declaration should get the ball rolling on getting some
assitance," said Richland Economic Development Executive Director Don
Decker.
According to Steinbeisser, a few growers carried either private or
federal crop insurance, but are still unsure about coverage and loss
payments. "We don't know if a freeze like this is covered,"
Steinbeisser said. "We still don't know the whole effect."
Steinbeisser is also concerned that people in the area may be blaming
Holly Sugar for not buying the frozen beets. "None of this is their
fault," Steinbeisser said. "This whole industry is facing
difficult times. We're lucky, because the people at this factory are the
best in the business. They're going to work as hard as they can for the
growers. I have no doubts about that." |