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Michigan agriculture looking up for 2001
By Dean Bohn and Bryce Hoffman, The Saginaw News
December 26, 2000
 
Sugar beets are a prime crop in mid-Michigan, and they provided this year's lead story in agriculture.

Beet growers in the region produced more of their product than ever, but they are getting paid less than they have in the past 22 years.

This year, Michigan Sugar Co. paid farmers $23 per ton in first payments for their record combined delivery of 2.3 million tons of sugar beets.

The payment, which includes an 80-cent bonus per ton, still is $1.50 per ton less than 1999's payment of $24.50 per ton, which included a 70-cent bonus per ton.

"Even with the heavy rains in some areas this past spring, this has been a surprisingly strong year for growing sugar beets," said Michigan Sugar President Mark Flegenheimer.

"Our first payment on the contracts will send over $54 million into the local, state and regional economy."

Farmers will welcome the December payment, said Richard Leach, Great Lakes Sugar Beet Growers Association executive vice president.

"With most of the other farm commodity prices below the cost of production in some cases, and with the erratic growing season, many farmers are facing a hard winter," Leach said. "This first payment will help the growers and their families."

Co-ops in the wings

A pair of cooperative agriculture ventures still are looking for life in the Saginaw Valley.

Mid-Michigan sugar beet growers continued negotiations with Imperial Sugar Co. of Sugarland, Texas, to purchase four Michigan Sugar Co. plants.

The 1,400-member Great Lakes Sugar Beet Growers Association wants to buy plants in Carrollton, Caro, Sebewaing and Croswell to form a cooperative. Michigan Sugar employs 1,500 full- and part-time workers with an annual payroll of more than $20 million.

Leach said the two sides could reach a deal during the coming year.

Meanwhile, corn growers throughout Michigan spent the year pooling resources for plans to build a corn-to-ethanol plant, possibly in mid-Michigan. Ethanol is a fuel additive derived from corn.

New agricultural renaissance zones for food processing facilities could provide tax advantages.

Too much wet stuff

Farmers hailed early rains as a godsend after a dry 1999, but struggled to dry out later as fields endured soakings all summer and into the harvest.

About 18 inches of rain fell between May and October, causing havoc with planting, spraying and harvesting schedules.

Normal rainfall for the growing season is about 14 inches. Fields in Huron and Tuscola counties were hit hardest. The federal government provided emergency loans for farmers there whose crops were devastated by rain.

Global implications

The United States granted permanent normal trade relations status to China in May, prompting cheers from mid-Michigan farmers.

"They've got a billion people or more. Potentially, there is a huge market there for food," said Don Morse, a Birch Run farmer and president of the Michigan Corn Growers Association.

U.S. corn exports to China could triple to 177 million bushels during the coming year, the association estimated. The Frankenmuth-based Michigan Soybean Association said the free trade deal will increase demand for its crops as well.

Frutchey Bean growing

Frutchey Bean Co.'s new corn receiving plant north of Oakley is for the most part completed, although some minor additional work will continue through May, said John L. Newton, manager.

The new plant took in about 1.8 million bushels of corn this season, far from the 2.2 million bushel capacity but in the right direction from the 700,000 bushels received 10 years ago and 500,000 bushels received 20 years ago.

Frutchey Bean was looking to expand the elevator's historic site at 310 W. Third years ago, but residents complained about "bees' wings," a fine red dust from corn kernels that swirls around during the harvest.

Elevator officials opted to purchase 75 acres outside the village and build their new facility on 10 acres, but Newton said they now have room to comfortably expand when the time comes.

Construction of the facility began in May. About 500 farmers from a 20-mile radius bring corn to the Oakley elevator.

The new facility takes only corn; the older elevator stores some corn, soybeans, wheat and oats.

Dean Bohn covers agriculture for The News. Bryce Hoffman is a staff writer at The News. You may reach Bohn at 776-9679 and Hoffman at 776-9673.