They have a labor agreement, a $2.5 million financing pool and federal approval to take over Michigan Sugar Co.

Now they can focus on one of the last obstacles blocking home plate - getting more farmers to commit acres. Toward that end, officials of the newly formed Michigan Sugar Beet Growers Inc., a cooperative association, have established a $2.5 million grower pool.

Midwest Agri, a pulp and molasses cooperative in the Red River Valley of Minnesota and North Dakota, is financing the pool.

Michigan Sugar Co. announced today that the industry has extended for one year its labor agreement with members of the American Federation of Grain Millers Locals 259, 260, 261 and 262, which represent nearly 750 employees at the company's plants in Carrollton, Caro, Croswell and Sebewaing.

The new agreement includes wage and pension increases. The parties did not release details, but they said the remaining contract language is unchanged.

Michael T. Konesko, the union's international vice president, said he is optimistic about the workers' employment prospects.

"With the pending change of ownership, we want to be able to negotiate a longer-term contract with the new owners in the not-too-distant future," Konesko said.

Meanwhile, the growers association was lauding the decision of U.S. District Judge Sue L. Robinson to allow the takeover Michigan Sugar Co. and Great Lakes Sugar Co.

Robinson, in a Tuesday hearing in Wilmington, Del., granted the motions of Imperial Sugar Co., Savannah Food & Industries, Michigan Sugar Co. and Ragus Holdings to approve the sale, which included certain trademarks and related property of Ragus Holdings.

The court also approved an interim lease, marketing and management arrangements under which the cooperative will lease the four Michigan sugar beet factories pending closing of the sale, after which the cooperative will own the factories and other assets.

The judge granted the motions over the objections of a small group of Michigan-based growers. Robinson ruled that the arguments of the dissenting growers "failed to state a sustainable objection to the sale."

Richard Leach Jr., executive vice president for the Saginaw Township-based Great Lakes Sugar Beet Growers Association, which represents 1,400 farmers, said 39 growers from the Thumb and eastern Saginaw County objected to the deal.

The co-op needs more farmers to commit their acres to sugar beets before the deal officially closes.

"We need at least 115,000 acres in order to finance the deal," said Randon Wilson, an attorney for growers.

He said the co-op already has 102,000 acres committed.

Richard Maurer, chairman of the co-op, said the recent dry weather may serve to heighten growers' appreciation of sugar beets in their crop rotation.

"All crops are suffering, but beets, without question, are doing better than the other crops," he said.

The sugar industry hit tough times after Texas-based Imperial Sugar Co. purchased the four Michigan Sugar plants as well as its Saginaw Township offices, then filed Chapter 11 bankruptcy in January.

Farmers in the Great Lakes Sugar Beet Growers Association and Michigan Sugar officials rallied together, forging plans to raise and process the 2001 crop without other investment dollars.

Next they formed the sugar cooperative to handle the 2002 crop.

This year, farmers could sign contracts without paying the $200 co-op subscription fee, said Leach. Next year, they must pay.

Imperial will sell Michigan Sugar to the cooperative for $55 million in cash, a $10 million deferred-payment note to Imperial and a transfer of debt in the form of industrial development bonds, he said.

Meanwhile, the state has offered a $5 million loan to help farmers come up with their $22 million equity portion of the purchase.

That leaves the cooperative to raise $17 million for the down payment, with Michigan National Bank supplying the rest.

Imperial's development bond debt of $18.5 million is still subject to change, Leach said.

Any grower wishing to join the cooperative or the grower finance pool should call Leach at 792-1531.