American Crystal Sugar Co. is making a strong initial payment estimate of $71 per ton beet for its 2022 crop, which set a record total volume of 12.1-million-ton, company officials told shareholders in meetings across the Red River Valley. It may be a record-high for the first estimate of payments, but comparisons weren’t immediately known. More details will be discussed in the company’s annual meeting on December 1 in Fargo.
American Crystal based in Moorhead, is a closed cooperative that owns six beet sugar processing factories throughout the Red River Valley, including Crookston and East Grand Forks. It is owned by about 2,600 shareholders.
To compare, American Crystal in November 2021 projected a $60 per ton payment for the 2021 crop. The company can adjust those payments in the following spring and fall. The company did not adjust the payment in the spring of 2022. Two weeks prior to the factory district meetings, the co-op increased the final 2021 crop payment to a final figure of $64.98 per ton. To compare, the all-time record-high payment was $73 per ton for the 2010 crop.
On the supply side, Crystal’s 2022 crop turned out stronger than expected, averaging 26.5 tons per acre which is less than the 30-ton-per-acre expectations. The company started stockpile harvest five days later than expected, which added tons and sugar content to the unharvested beets, especially with the sunny, cool October that occurred this year. Sugar content ended up at 18.5% which is better than the 18% average.
Shareholders started with a late, wet spring, followed by wind damage and flooding. The co-op activated its so-called “TAP” (Targeted Acre Program) which allows some willing growers to add more acres in the case of late planting or other planting problems. The company added 52,000 acres to plantings to compensate for the late planting.
The 12.1-million-ton crop, which is a record by 100,000 tons, is at the high end of the range of what the company is able to process. The company typically projects a processing or “slice campaign” to run into the middle of May.
