MOORHEAD -- Beet growers in American Crystal
Sugar Co.'s western Drayton factory district will delay by one
week their prepile beet harvest.
Those growers won't start harvest until Sept. 5 -- one week
later than the Aug. 30 start that was announced two weeks ago.
David Berg, Crystal vice president for agriculture, said
growers in the district's three western piling stations would
start supplying beets to the Drayton and East Grand Forks
factories, which will start slicing beets Sept. 7.
Crystal reassessed the impact of the early harvest on
growers before a grower meeting in St. Thomas, N.D., last
Thursday.
"We just took a hard look at sugar inventories and the
need for sugar," Berg said. "And we looked at the
real implications it had on these growers. By leaving that
quantity of beets in the ground, it will create more tonnage,
more sugar."
Growers happy
Robert Green, a grower from St. Thomas who attended the
meeting with top company officials, said growers are happy
with the change. They had been skeptical about whether a new
"prepile incentive" formula, instituted for last
year's crop, would fully compensate them for lower sugar that
occurs in beets this time of year, Green said.
Berg said growers were concerned about having to harvest
beets with less than a 90-day season.
The original reason for starting Aug. 30 was to balance the
beet supply with the ability to pile beets. More beets than
normal were planted in that area because of an "acre
shift" program instituted last spring. Beet acres were
shifted from areas too wet to plant into those that were
drier.
The rest of the prepile harvest will start Sept. 10, Berg
said. Crystal continues to project a healthy 19- to
19.5-ton-per-acre beet yield valleywide. Production is
expected to range from 18 tons in some districts to about 20
tons in others.
"The best beets appear to be in the Crookston area,
although some of them up there have been pretty heavily
affected by rain and hail in the past few weeks," Berg
said.
PIK program?
There's still no word on whether the U.S. Department of
Agriculture will implement the so-called
"payment-in-kind" program on this year's beets. Such
a program requires growers to destroy healthy, growing beets
in exchange for receiving certificates that are redeemed for
sugar in government-owned inventories. The purpose is to
reduce a surplus of stored sugar that is holding the price of
sugar at near 20-year lows. Berg said a "PIK"
program is the "right thing to do for the market"
but said the delay in an announcement is not encouraging.
"I'm not too optimistic about it at this point,"
Berg said, adding that it's "getting awfully late for
successful implementation." He said Crystal had been
lobbying for it since spring, which "would have been the
right time to implement it, before all of the costs are
incurred, before the crop is grown."
He said even if the PIK program were announced immediately
it isn't clear whether growers would be able to get paperwork
to the co-op, to the USDA and back to the producer in time.
Berg said he has been told the issue has "been taken
to the very highest levels at USDA."
Mark Weber, executive director of the Red River Valley
Sugarbeet Growers Association, said industry sources in
Washington tell him the issue is on "the secretary's
desk" for a decision, which could come by the end of the
week.
Pates reports on agriculture. Reach him at (701)
297-6869 or mikkel@corpcomm.net. |