A new purchase price for Western Sugar Company may be agreed upon very soon. At least that is the hope of all involved in the negotiations.

"Were getting close to finalizing a price," said Larry Steward, CEO of the farmer-owned Rocky Mountain Sugar Growers Cooperative. "Negotiations have been ongoing, and weve met with Tate & Lyle two or three times in the past few weeks. Randon Wilson, attorney for the co-op, has been talking to them almost daily."

Problems with the purchase arose when it became apparent that the required acres were not being grown for the co-op this year. According to RMSGC board chairman, Rick Dorn, 130,000 acres of the minimum 150,000-acre requirement are subscribed.

Farmers began exploring the purchase of Western Sugar after its parent company, Tate & Lyle North America Sugars, announced early in 2000 that the company was for sale. The co-op was formed last summer, and a $78 million purchase price was agreed upon in October 2000.

Co-op representatives hoped to obtain at least 150,000 of the possible 170,000 sugarbeet acres that had been grown throughout the four state-area. Subscriptions in the co-op were $185 per acre, in addition to a one-time purchase of a $100 stock share. A special financial branch of the cooperative was established to help farmers finance their investment.

Growers in Montana and Wyoming responded quickly with sufficient acres, but those in Colorado and Nebraska lagged. Consequently, by May 2001, it was obvious that fewer acres were being planted than anticipated.

"When the final planting numbers began to appear, they indicated the subscribed acres were down from what we had hoped for," Steward said. "We had to do another model on a smaller scale. This indicated the only option to make this all work was a lower selling price for all of Westerns assets."

According to Dorn, "Tate & Lyle have been very helpful in helping us help ourselves. But theres never been an issue about raising crops this year and taking them to harvest."

Clive Rutherford, president of Tate & Lyle NAS, said it is company policy to never discuss negotiations, but they are working toward completing the deal by the end of June.

Steward said he was surprised at the lack of acres subscribed to the cooperative. "I think it is the result of several things," he said. "Low commodity prices, the low price for sugar and the growers small beet checks, have all the growers concerned and many holding back with a wait-and-see attitude.

"Im hopeful and positive that well get this cooperative off the ground in the next few days. I think well see an increase in acres next year, and within one to two years, well have a closed co-op like they have in the Red River Valley, where they have all the acres they need."