| Some Saginaw County farmers say they are excited but cautious about the
end of negotiations to buy Michigan Sugar Co. from Texas-based Imperial
Sugar Co.
Michigan Sugar Beet Growers Inc., a cooperative comprised of about
1,000 farmers from 11 counties, negotiated with Imperial Sugar for nearly
two years to buy Michigan Sugar, which operates processing plants in
Carrollton Township, Caro, Croswell and Sebewaing.
However, when Imperial filed for Chapter 11 bankruptcy in January,
those events made many farmers cautious in signing contracts with the
company.
The sides are likely to sign final agreements in February, officials
said.
"Like they say, it ain't over until the fat lady sings," said
Charlie Bauer, a Blumfield Township farmer who typically grows 700 acres
of sugar beets. He grew 1,000 acres this year to help the company get the
needed acreage.
Even now, while celebrating final agreements, officials at the
cooperative buying Michigan Sugar are leery about talking.
Richard Leech Jr., executive vice president of Great Lakes Sugar Beet
Growers Association that formed the Michigan Sugar Beet Growers Inc., did
not want to comment on the sale Friday, saying the subject is
"touchy."
"This is the best thing that came along in a long time, but I
don't believe the documents will be signed until the day after the slicing
is done in February, around the 5th or 15th," said Bauer, who joined
the cooperative 22 months ago, before the group became official last year.
Don Keinath, an Almer Township farmer in Tuscola County, said he has
high hopes that the deal is final, but says "it's never done 'til
it's done."
Keinath share-crops about 100 acres of sugar beets a year. He was on
the Michigan Sugar Board of Directors for 30 years. He has been off the
board for about three years.
"I'm not privileged to any information as to what is going on
right now, but I'm sure we're getting acres signed up every day," he
said. "And I suspect we'll get more interest from the farmers in
growing sugar beets again."
Keinath said he would grow more himself, "but I don't own any more
land."
Meanwhile, Michigan Sugar officials are saying the sale was all but
completed when Imperial Sugar dropped its original asking price from $55
million to $35 million and state lawmakers approved a no-interest $5
million five-year loan.
Last week, Michigan Sugar executives discussed the sale with growers
who have contracts with Michigan Sugar and others interested in joining.
Those who sign contracts before Friday, Dec. 21, can become co-op
shareholders for $200 an acre. After that, the price jumps to $230 an
acre.
The co-op contracted about 120,000 acres of sugar beets this year.
Officials expect that to increase in 2002. |