In a letter to shareholders a week ago, Al Ritacco, president and chief executive officer, says the issue hinges on whether the insurance companies will cover the quality losses on processed beets, in addition to the losses from discarded beets.

"It is our position that under the policy, the insurance companies should cover losses caused both by discarded sugar beets and by the low sugar extraction rates of the processed but damaged beets," Ritacco writes in a letter dated April 30.

"We have been assured by RMA (U.S. Department of Agriculture's Risk Management Agency) that provided we are able to demonstrate that the processed but freeze-damaged sugar beets did not meet the minimum acceptable standards of the grower agreement, RMA will re-insure amounts paid by the insurance companies for discarded and processed but damaged sugar beets," Ritacco says.

Perhaps equally importantly, Ritacco says the RMA will not tell the insurance companies to pay only on the discarded sugar beets.

Ritacco, who was not immediately available for an interview, in his letter says the company is confident it has documentation that the processed-but-damaged beets didn't meet minimum standards. He says it is important for Southern Minnesota Beet shareholders to ask insurance agents to submit claims, ask for receipts, in order for the companies to consider paying on claims.

"If they refuse to make such a decision, your claim will need to have been submitted in order to then take further appropriate action or participate in potential litigation," Ritacco says.

He says growers are free to settle claims for something less than the full amount, but noted they "may and likely will waive" rights to further payments under the insurance policy.

"You may and likely will also jeopardize your ability to collect emergency assistance funds that are tied to crop insurance loss determinations," Ritacco says, adding that the Farm Service Agency likely will extend the deadline for emergency assistance application.