| The attorney representing the Rocky Mountain Growers
Cooperative in the buyout of Western Sugar Company gave the group the
green light on Tuesday. Randon Wilson, the Salt Lake City, Utah, attorney
representing the cooperative, said around 150,000 acres have been
committed to the buyout, which is enough to move to the next step.
Wilson said subscriptions were strong in Montana and Wyoming, but weak
in Nebraska and Colorado.
According to his tabulations, Wilson said response in the Alliance,
Yuma and Holyoke areas were quite good, but response from Valley growers
was weak.
Wilson told the group during the KNEB Expo at the Scotts Bluff County
Events Center in Mitchell, that he would like to see 170,000 acres
committed to the cooperative.
To reach that goal, Wilson and the cooperative board have decided to
give growers in Nebraska and Colorado another chance to join.
"We're hoping to interest growers who have been on the
fence," Wilson explained. "We hope they will realize that the
cooperative is a go so they might as well get off the fence and
join."
Growers in Nebraska and Colorado can join the cooperative through Feb.
16, 2001 at $200 an acre.
Subscriptions accompanied by a down payment of $50 an acre must be
received by Feb. 16, in order to qualify for grower finance company
financing of the remaining $150 an acre.
Wilson said he was contacted by several growers who wanted to join the
cooperative, but didn't because they couldn't afford to buy in.
"There were quite a few who want to grow, but don't feel like they
can invest," Wilson stated.
Several businesses have indicated they would like to invest in the
cooperative by purchasing acres that would go into a pool and be rented to
growers. Those acres can be purchased on a time share, according to
Wilson.
Under the time share pool, growers can rent acres for up to three
years. At the end of that time, growers must either purchase the shares or
surrender them.
Hod Kosman, president of Platte Valley Companies in Scottsbluff, said
he "believes there will be tremendous local support in the four-state
area of the cooperative. (Businesses) realize how vital the sugar industry
is to their communities," he said.
Wilson said the board is also considering whether they could obtain
additional acres from outside areas. One of those areas could be the
Western Slope of Colorado, which used to be a beet growing area until
Holly Sugar closed the factory servicing those growers several years ago.
"We want people to realize this cooperative buyout is a go,"
Wilson said. "But, we want to gain a few more acres to make it
operate more efficiently," he said. |