| FARGO -- Officials of Southern Minnesota Beet Sugar
Cooperative of Renville, Minn., told growers Wednesday that at least
250,000 tons of beets would be lost to spoilage and that growers might
have to repay some of this year's check.
The loss is 10 percent of the co-op's 2.37 million tons harvested last
fall. Drought-stressed beets froze in the ground the first week of October
and then were harvested after a "healing" period, but turned out
worse than expected.
Losses could climb higher, shareholders said they were told. Data
provided by the company indicated that the total could rise to 400,000
tons, but that figure is speculative and final estimates won't be
available for two months.
Per their normal schedule, the co-op has paid shareholder-growers about
$20 a ton of the year's $30-per-ton projected payment. Now growers are
worried about repaying some of that.
"They're claiming they paid a couple of bucks more per ton than
they should have already," said one grower, who asked not to be
named. "And they said if they dispose of more beets (above the
250,000-ton projection) it's going to get worse."
Southern Minnesota Beet scheduled three days of district meetings,
starting Wednesday. Two district meetings on Wednesday lasted more than
four hours.
Co-op officials told growers they are seeking some kind of disaster
assistance and looking into whether crop insurance could still come into
play on some of the losses.
Jim Widner, vice president of agriculture, declined to comment on
Wednesday night. Widner referred questions to Al Ritacco, president and
chief executive officer. Ritacco, however. said he was busy with
shareholder meetings and not available for comment. Board Chairman Neil
Rudeen of Bird Island, Minn., did not return a reporter's call.
Southern Minnesota Beet had a 21.2-ton-per-acre crop. It ranked third
despite destroying 11,000 acres of its 120,000-acre crop in the
payment-in-kind program.
At the co-op's annual meeting in December in Willmar, Minn., officials
told growers they expected a 100,000-ton loss to spoilage -- 150,000 tons
at the worst.
Financial pressure on growers is mounting and could have an impact on
next year's crop. One member said a board member advised shareholders that
the co-op could collect damages for growers who fail to fulfill their
obligations to the co-op to grow next year's beets.
"He said if you don't grow your beets, we're going to sue
you," one shareholder said. "He said we don't know for how much,
but we'll make you liable, which is basically a threat." |