LOVELL DISTRICT
1977-1979 SUGARBEET CONTRACT
BETWEEN
. . .
, GROWER
and THE GREAT WESTERN SUGAR COMPANY
LOVELL FACTORY DISTRICT
Executed this
.day of
., 1977.
The Grower agrees to grow, sell, and deliver sugarbeets each year during the term of this contract to The Great Western Sugar Company ("the Company"), and the Company agrees to buy and pay for same, upon the terms and conditions hereinafter set forth.
The term of this contract shall be for three crop years beginning with the date hereof. All references herein to specific dates shall be effective for each such year.
1. Acreage.(a)Beetswillbegrownin1977on . . . . . . . acresinthe . . .quarter.Sec. . . . ,
Township · . . . . , Range . . . . . . . , County of . . . . . . . . . , State of . . . . . . . . , and in 1978 and 1979 either on such land or on other land of the Grower. The Grower shall not be obligated to harvest or deliver, and the Company shall not be required to accept or make any payment on account_of, beets produced_on acreage 1n excess of the a~reage set forth above, except that the Company may reserve up to 2% of its total acreage for new growers who desire to contract with 1t, and may reduce the Growers acreage ratably with that of other growers to provide acreage to such new growers. Any such changes in acreage for the 1978 and 1979 crops shall be noted in the following space and initialed by the parties:
_(b) The Grower may elect for any reason not to grow beets hereunder in 1978 or 1979 by giving written notice thereof to the Company by March 1 of the year in which the crop year occurs. Upon such notice, the parties shall have no further contractual relationship with each other hereunder. The Company intends to maintain contracted acreage for the 1978 and 1979 crops, but maintains the right to modify acreage for any factory district on a pro-rata basis. All such acreage modifications by the Company shall be effected by giving written notice to the Grower by March 1 O of the year in which the crop year occurs.
2. Growing of Sugarbeets. The Company shall not be obligated to accept any beets which are not grown in compliance with the provisions of this paragraph 2. (a) Only such beet seed as the Grower-GW Joint Research Committee, Inc., may approve in advance in writing and which shall be posted at the factory nearest the beet growing area of the Grower shall be used for each crop year. The Grower may, on or before the 1st day of July, return unused beet seed purchased by him that yearfrom the Compan_y, and shall receive credit for the purchase price of the unused seed, provided such seed is returned in as good condition as when it was received and the container shows no evidence of having been opened or having suffered abuse.
(b) THE GROWER WILL NOT APPLY ANY NITROGEN FERTILIZER, IN ANY FORM, TO THE SUGARBEET CROP AFTER JULY 15TH, UNLESS GIVEN WRITIEN PERMISSION BY THE COMPANY.
(c) The Grower shall not apply and shall not have applied to the crop or land on which the crop is grown any pesticide chemical, as defined in the Federal Food, Drug and Cosmetic Act, as amended, unless a regulation shall then be in effect under Section 408 of said Act, exempting such chemical from the necessity of a tolerance or establishing a tolerance for such chemical, in which event such chemical shall be applied to the crop or land only at such time and in such manner and quantities as shall be specified in the labeling of such chemical and so that any residue of such chemical on beets delivered shall be within the tolerance specified in such regulation. The Company reserves the right to perform, at any reasonable time and at its expense, such test or tests as it shall deem necessary or desirable to determine the level of residue, if any, of any pesticide chemical in sugarbeets grown hereunder. Should such test or tests reveal a level of residue of such chemical in excess of the established tolerances, the Company shall have the right to reject all beets treated with such chemical and grown hereunder.
3. Delivery. The Grower will, to the best of his ability, harvest and deliver to the Company all beets grown by the Grower hereunder at-a primary receiving station(s), designated on the execution portion hereof, or, with the concurrence of the Grower, a designated alternate receiving station(s), as directed by the Company, and the quantities directed by the Company; provided, if the Grower desires to deliver to an alternate receiving station, the concurrence of the Company shall_ ,:iot be unreasonably withheld. As soon as 95% of the crof to be delivered to the designated receiving station(s) by all Growers has been received by said receiving station, but not before November 5, the Company shal have the right to direct the Grower to deliver to any receiving station thereafter designated by the Company; provided, however, that the receiving station thereafter designated shall, insofar as the Company deems practicable, be the next nearest receiving station then being operated by the Company. The Company may change the designation of the alternate receiving station(s) at any time. If any portion of the beets grown under this contract shall not, prior to the 2nd day of October, be ordered delivered by the Company, then the Grower shall promptly commence and proceed to harvest and deliver such beets without further notice from the Company and shall complete the delivery of all of said beets on or before the 1st day of December; provided, that the Company may restrict the delivery of beets by all Growers in the Lovell District of the Company on any day or days during the period from October 2 to October 13, both dates inclusive (stations normally to be closed on Sunday) to approximately 5% per day of the total crop in said District, as estimated by the Company, and to restrict the delivery of beets by the Grower on any such day or days during said period to approximately 5½% of his entire crop, as estimated by the Company; and provided, also, that the Company may restrict the delivery of beets by the Grower when it is determined that beet temperature of a load to be delivered reaches or exceeds 50 degrees of temperature (F0
) and thus are not suitable for storage in piles without abnormal deterioration. All beets delivered hereunder shall be unloaded into the beet receiving equipment of the Company at the designated beet receiving station(s). No loose dirt shall be removed from the truck body until after having been weighed back and all truck bodies used in delivering beets shall be so constructed as to prevent the spilling of any dirt.
4. Condition of Acceptable Beets. (a) All beets grown and delivered by the Grower shall, to the best of his ability, be properly topped and shall be free from clods, dirt, stones, trash, and other foreign substances. The Grower will not deliver and the Company may reject any beets which, in the judgment of the Company, would hinder processing at a factory, or are diseased, frozen, wilted, damaged, improperly topped, not suitable for storage or piling, of less than 12% sugar or less than 80% purity. The Grower will not remove beet foliage from crop through grazing of livestock, mechanical means, or otherwise, earlier than the day before the day the beets are delivered to the Company. The Grower will not, without written authorization by a Company agriculturist, harvest any beets grown hereunder until the full period of 15 days has elapsed after completion of the last irrigation. Beets delivered shall be subject to proper deductions for tare to be determined in accordance with regulations heretofore established by the Company, and the tons of beets purchased by the Company shall be net tons, after adjustment for tare, as shown by the records of the Company. In taring samples of beets delivered, the Company shall, in the case of a beet the greatest diameter of which is 4½ inches or less, cut off the tops squarely just below the crown at the base of the bottom leaf scar, and, in the case of a beet the greatest diameter of which is more than 4½ inches, by trimming up the crown from the base of such bottom leaf scar. A distinct trace of leaf scar is to be left after top tare is taken.
(b) Anything herein to the contrary notwithstanding, the right of the Company to reject frozen beets is limited to the extent that the Company must usE:,its best efforts to accept frozen beets for prompt processing to the extent it considers such action to be economically feasible.
(c) The sugar content and purity of beets delivered hereunder shall be determined by tests made in a factory beet laboratory of the Company at its own expense, and all analyses made by the Company shall be accepted as final, it being understood, however, that the Grower shall have the privilege of selecting at his expense a qualified chemist to check in the beet laboratory the tests made by the factory chemists. The Grower shall also have the privilege of selecting at his expense a qualified individual to check the tares and weights of the beets delivered hereunder.
(d) To ascertain the quality of beets delivered hereunder, the Company is authorized at various times during the growing and harvesting season to cause said beets to be sampled at the Company's expense and to enter upon the aforementioned land for the aforesaid purpose.
(e) In the event the Company and the Association referred to in sub-paragraph 7 (b) hereof agree that an emergency exists and that generally the Company under the terms and conditions of its sugarbeet contracts would have the right to reject the beet crop in a substantial proportion of the area served by the beet receiving station(s) to which the Grower delivers, then said Association is authorized to act as the agent for the Grower and to modify this contract; and the Grower, upon notification of the terms and conditions of the said modification, will be bound by the terms of the same as fully as though he had personally agreed to the said modification. The provisions of this sub-paragraph shall not be construed as a waiver by the Company or the Grower of the right to modify this contract by direct negotiations in the event the Company and said Association fail to agree.
5. Determination of Payment. All beets grown and delivered to the Company hereunder shall be paid for by the Company on the following basis:
(a) The price per ton (2,000 lbs.) of beets delivered hereunder shall be determined upon the average net return per one hundred (100) pounds of sugar received by the Company from sugar manufactured by the Company at, or purchased for distribution from, its factories in the states of Colorado, Kansas, Montana, Nebraska and Wyoming which is sold by the Company during the period October 1 to September 30 (both dates inclusive), and also upon the average percent sugar in all beets delivered by the Grower to the Company under this contract, in accordance with the following schedule:
Avg. Net
AVERAGE PERCENT SUGAR IN BEETS
Return/100 Lbs. Sugar 19.5 19.0 18.5 18.0 17.5 17.0 16.5 16.0 15.5 15.0 14.5 14.0 $ 8.50 $18.206 $17.619 $17.031 $16.444 $15.857 $15.269 $14.682 $14.095 $13.508 $12.920 $12.333 $11.746 10.00 21.419 20.728 20.037 19.346 18.655 17.964 17.273 16.582 15.891 15.200 14.510 13.819 11.00 23.561 22.801 22.041 21.281 20.521 19.761 19.000 18.240 17.480 16.720 15.960 15.200 12.00 25.702 24.873 24.044 23.215 22.386 21.557 20.728 19.899 19.070 18.241 17.411 16.582 13.00 27.844 26.946 26.048 25.150 24.252 23.353 22.455 21.557 20.659 19.760 18.862 17.964 14.00 29.986 29.019 28.052 27.084 26.117 25.150 24.182 23.215 22.248 21.280 20.313 19.346 15.00 32.128 31.092 30.055 29.019 27.982 26.946 25.910 24.873 23.837 22.800 21.764 20.728 16.00 34.270 33.164 32.059 30.953 29.848 28.742 27.637 26.531 25.426 24.321 23.215 22.110 17.00 36.412 35.237 34.062 32.888 31.713 30.539 29.364 28.190 27 .015 25.841 24.666 23.491 18.00 38.553 37.310 36.066 34.822 33.579 32.335 31.092 29.848 28.604 27.361 26.117 24.873 19.00 40.695 39.383 38.070 36.757 35.444 34.131 32.819 31.506 30.193 28.881 27.568 26.255 20.00 42.837 41.455 40.073 38.692 37.310 35.928 34.546 33.164 31.782 30.401 29.019 27.637 21.00 44.979 43.528 42.077 40.626 39.175 37.724 36.273 34.822 33.372 31.921 30.470 29.019 22.00 47.121 45.601 44.081 42.561 41.041 39.521 38.001 36.481 34.960 33.440 31.920 30.400 23.00 49.263 47.674 46.084 44.495 42.906 41.317 39.728 38.139 36.550 34.961 33.371 31.782 24.00 51.404 ~9.746 48.088 46.430 44.772 43.113 41.455 39.797 38.139 36.481 34.822 33.164 25.00 53.546 51.819 50.092 48.364 46.637 44.910 43.183 41.455 39.728 38.001 36.273 34.546 26.00 55.688 53.892 52.095 50.299 48.503 46.706 44.910 43.113 41.317 39.521 37.724 35.928 27.00 57.830 55.964 54.099 52.233 50.368 48.503 46.637 44.772 42.906 41.041 39.175 37.310 28.00 59.972 58.037 56.103 54.168 52.234 50.299 48.364 46.430 44.495 42.561 40.626 38.691 29.00 62.114 60.110 58.106 56.103 54.099 52.095 50.092 48.088 46.084 44.081 42.077 40.073 30.00 64.256 62.183 60.110 58.037 55.964 53.892 51.819 49.746 47.673 45.601 43.528 41.455 31.00 66.397 64.255 62.114 59.972 57.830 55.688 53.546 51.404 49.263 47.121 44.979 42.837 32.00 68.539 66.328 64.117 61.906 59.695 57.484 55.274 53.063 50.852 48.641 46.430 44.219 33.00 70.681 68.401 66.121 63.841 61.561 59.281 57.001 54.721 52.441 50.161 47.880 45.600 34.00 72.823 70.474 68.125 65.775 63.426 61.077 58.728 56.379 54.030 51.681 49.332 46.982 35.00 74.965 72.546 70.128 67.710 65.292 62.874 60.455 58.037 55.619 53.201 50.783 48.364 36.00 77.107 74.619 72.132 69.645 67.157 64.670 62.183 59.695 57.208 54.721 52.233 49.746 37.00 79.248 76.692 74.136 71.579 69.023 66.466 63.910 61.354 58.797 56.241 53.684 51.128 38.00 81.390 78.765 76.139 73.514 70.888 68.263 65.637 63.012 60.386 57.761 55.135 52.510 39.00 83.352 80.837 78.143 75.448 72.754 70.059 67.365 64.670 61.975 59.281 56.586 53.892 40.00 85.674 82.910 80.147 77.383 74.619 71.856 69.092 66.328 63.564 60.801 58.037 55.273
Payment upon net return for sugar and/or sugar content intermediate to the net returns and sugar contents shown in the above schedule shall be determined in proportion within the intervals in which such intermediate net return or sugar content occurs. If the net return for sugar and/or sugar content is higher or lower than those shown in the foregoing schedule, payment shall be determined in proportion, using the immediately succeeding or preceding interval, as the case may be, as the basis for calculation.
(b) The price per ton of beets to be paid by the Company pursuant to the schedule in sub-paragraph 5(a) for each ton of beets delivered hereunder shall be increased or decreased on the basis of the following formula:
Assessed Premium or Penalty
=
(Weighted Average Factory Diffusion Juice Purity - 1960-66 Standard Diffusion Juice Purity) x .0181 x Price for Standard Beets under the schedule in sub-paragraph 5(a).The "Weighted Average Factory Diffusion Juice Purity" in the above formula shall be the average of all factory diffusion juice purities for all beets processed during the harvest period through November 4 in the Lovell District, which average shall be weighted on the basis of the net tonnage of beets processed in the Lovell District during such period; the "1960-66 Standard Diffusion Juice Purity" shall be the 1960-66 standard percentage diffusion juice purity (Refractometer Dry Substance) computed as 68.7119 + 1.128X, where X is the average percent sugar content of the harvested beets received by the Company during the harvest period in the Lovell District; and the "Price for Standard Beets" shall be the price for beets based on applicable average sugar content in the Lovell District. Insofar as possible in accordance with the Company's normal operations, the Company will process beets representative of the overall crop in the District during the period.
(c) The net return on sugar sold shall be determined by deducting from the gross sales price all such charges and expenditures as are regularly and customarily deducted from the gross sales price of sugar, in accordance with the Company's system of accounting heretofore established, showing net receipts from sugar sold, including, but not limited to, the following items determined by the Company: the excess co~t of special packages and specialty sugars; all costs, including depreciation and taxes, pertaining to the operation and maintenance of facilities located at points where the Company does not operate a granulated sugar factory for the production and/or distribution of sugar and/or mixtures of sugars sold by the Company. The Company shall not deduct any charges or expenditures, directly or indirectly, which have not been regularly and customarily deducted in the past; provided, however, that all excises, taxes, and/or charges now or hereafter levied, exacted or imposed by any governmental agency, directly or indirectly, on or with respect to, or arising out of, the manufacture, processing, production, ownership, possession, holding for sale, sale, marketing or shipment of all sugars and/or mixtures of sugars or any part thereof, or on all or any part of the proceeds arising therefrom, shall be deducted from the gross sales price. All sales or other dispositions hereunder of sugar to a related entity of the Company, including its subsidiaries, shall be included in sugar sold at its fair market value at the time of such sale or disposition.
(d) The average percent sugar in beets upon which is also based the price per ton of beets purchased hereunder shall be determined by dividing the total number of tons of sugar in all beets grown and delivered hereunder, as determined from factory beet laboratory tests, by the total number of tons of said beets (hereinafter called "actual percent").
(e) Provided, however, that if the average actual percent sugar in all beets delivered in each crop year by the Grower hereunder, and under all other current Sugarbeet Contracts, if any, between the Company and the Grower, on lands the ownership of which is the same (hereinafter called "such other contracts"), shall be more than 1 degree of polarization below the Lovell District average percent sugar (hereinafter defined), then, in computing the price per ton for beets delivered hereunder and under such other contracts, the percent sugar in said beets shall be deemed to be said Lovell District average less 1 degree of polarization. Provided further that, if the Grower under all contracts between him and the Company delivered beets from (i) the prior year's crop or (ii) the prior two years' crop, which for the respective crop or crops had an actual percent sugar more than 1 degree of polarization below the applicable Lovell District average for such crop or crops, the percent sugar in beets delivered hereunder and under such other contracts shall be deemed to be, in the case of (i), the higher of either the actual percent or a level 1½ degrees of polarization below the current year's Lovell District average and, in the case of (ii), the higher of either the actual percent or a level 2 degrees of polarization below the current year's Lovell District average. In no event shall the percent sugar in beets delivered hereunder and under all such other contracts by virtue of this sub-paragraph be deemed to exceed 15 degrees of polarization, and further, if the weighted average yield per acre of the Grower's beets delivered hereunder and under all such other contracts exceeds by one ton or more the weighted average yield per harvested acre of all beets delivered under all sugarbeet contracts for the current crop season in the Lovell District, the provisions of this sub-paragraph shall not apply and then, for each 1/10 of one ton that the Grower's said yield exceeds the said average yield, any amount otherwise payable pursuant to the provisions of this sub-paragraph shall be reduced by 10 percent. The Lovell District average percent sugar shall mean the actual percent sugar in all beets of a particular crop purchased by the Company from growers under all contracts issued from the Lovell factory of the Company, determined by dividing the total number of tons of sugar in all such beets (determined as provided in sub-paragraph (d) hereof with respect to each of such contracts) by the total number of tons of all such beets.
16.5% 17.5% 18.5% 19.5% 20.5% $2.41 $2.59 $2.77 $2.95 $3.13
The rate from sugar content intermediate to those shown in the above schedule shall be determined in proportion within the intervals within which such intermediate sugar content occurs, using the average sugar content of all beets contracted to the receiving station as the Grower's perc13nt sugar content. All amounts to be borne by the Grower hereunder shall be deducted by the Company from the initial payment due to the Grower on or about November 20 of each year or from any other initial payment theretofore not paid. Any adjustments in the amount deductible hereunder shall be made at the time of additional payment to the Grower pursuant to paragraph 6 hereof.
6. Payment. (a) The parties recognize that this document is a "participating contract" in which both the Company and the Grower share the benefit and the risk
of the sugar market in accordance with the provisions of paragraph 5 hereof. that the parties are dependent upon each other, and that both the Grower and the Company have substantial financial risk between the time the crop is planted until the sugar produced from the crop is sold. The Company acknowledges that the Grower should receive a substantial portion of the total payment hereunder in the form of an initial payment, and that the level of such initial payment shall not be less than the maximum rate per ton which the Company reasonably and in good faith believes appropriate and justified under prevailing and anticipated conditions affecting the marketing of the crop. Therefore, to ensure that the Company has before it all information which is relevant to the setting of the level of the initial and any subsequent payment, and to ensure that the Grower has an opportunity to furnish relevant information to the Company, and has an opportunity to be advised of the information used by the Company in setting the level of the initial and any subsequent payment, it is agreed that the Company representatives shall meet with representatives of grower associations, at a location mutually acceptable, not later than the seventh day of November, March, May, and August. At such meetings the Company representatives shall have available and shall present to the representatives of grower associations information relating to the anticipated returns from the sale of sugar for the balance of the contract period, the estimated or actual average sugar content of the beets, the tonnage of the beets delivered, an estimate of the fluctuations in price and volume that may be expected in the sugar market, proposed or actual legislation affecting the sugar industry, competitive factors influencing the sugar industry, and such other factors as the Company reasonably and in good faith deems to be relevant. Likewise, at such meetings the representatives of the grower associations shall be available and shall present to the Company information relating to the growers' production costs for sugarbeets, factors relevant to competing crops, and such other factors as the growers reasonably and in good faith deem to be relevant. Immediately after the conclusion of the November meeting, the Company shall announce to those present the amount of the initial payment. After each subsequent meeting, the Company shall announce the amount of additional payments, if any.
(b) Subject to the deductions and assignments hereinafter authorized, an initial payment shall be made by the Company on or before the twentieth day of November for beets delivered prior to the fifth day of November, and an initial payment shall be made on or before the fifteenth day of each calendar month thereafter for beets delivered during the previous calendar month for which an initial payment has not theretofore been made. The level of the initial payment shall be calculated by the Company at the highest rate per ton the Company deems to be appropriate after taking into consideration the relevant factors discussed by the Company and the grower representatives at the initial payment meeting heretofore mentioned.
(c) Additional payments, subsequent to the initial payment, shall be made by the Company on or before the third Friday of March, May and August at the highest rate per ton the Company deems to be appropriate after taking into consideration the relevant factors discussed by the Company and the grower representatives at the additional payment meetings heretofore mentioned and upon the actual average net returns for sugar sold by the Company through the month preceding the month of said additional payment, provided, however, that the Company shall not be required to make additional payments unless the level of such additional payment shall be at least equal to the sum of $1.00 per ton.
(d) Final settlement shall be made in accordance with the terms of this contract on or before the twenty-fifth day of October by the payment of any amount due after credit for all payments theretofore made by the Company to the Grower.
(e) This paragraph 6 contains the entire understanding between the Company and the Grower with regard to the payment for sugarbeets delivered pursuant to this contract.
7. Certain Deductions and Assignments Applicable to All Growers. By entering into this contract, the Grower hereby authorizes, consents to and approves the
following deductions and assignments:
(a) The Company shall be entitled to deduct from any purchase price which may be due to the Grower under this contract for beets purchased hereunder any and all indebtedness whatsoever which may be owing at any time by the Grower to the Company.
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(b) The Company, unless notified in writing to the contrary by the Grower prior to Septemberh'f'~f each year during the term hereof, shall deduct from any purchase price due to the Grower under this contract an amount not to exceed the sum of five cents ~ p e r ton on all beets purchased from the Grower hereunder, and pay such amount to The Big Horn Basin Beet Growers Assocation ("the Association") for the use of the Association.
(c) The Grower hereby authorizes the Company to deduct from any purchase price which may be due to the Grower hereunder one cent ($.01) per ton of beets purchased from the Grower hereunder, and to pay such amount to the Grower-GW Joint Research Committee, Inc., for the purpose of financing research and related activities conducted or to be conducted under its auspices and approved by said Committee under its by-laws. The Company agrees to contribute to said Committee an amount matching the amount so deducted from monies due the Grower. To the extent practicable, the deduction hereby authorized shall be made from the initial payment provided in paragraph 6 and the Company agrees that the payment to said Committee of the amounts deducted, and of the Company's matching contribution, shall be made not later than five days after said initial payment is made or the amount has been deducted.
(d) The Grower hereby authorizes the Company to deduct from any purchase price due him hereunder up to one cent ($.01) per ton of beets purchased, as determined to be necessary by the Company and the associations, and to use such amounts to defray, as necessary, the expenses of the Grower-GW Purity Committee ("the Purity Committee") established by the Company and the associations in 1976. The Company shall contribute an equal amount to the Purity Committee. To the extent practicable, the deduction hereby authorized shall be made from the initial payment provided in paragraph 6, but in any event the Company shall pay its contribution not later than five days after the Grower's amount has been deducted. Any sums obtained from the Grower and the Company pursuant to this sub-paragraph which are not required by the Purity Committee for its expenses shall be paid proportionately to the associations and the Company, for their use, after the Purity Committee has concluded its activities. The Purity Committee shall continue its operations for the 1977, 1978 and 1979 crop years, on the following conditions:
(i) The Purity Committee shall continue to be comprised of five members, one designated by the Company, one designated by the associations, and three impartial and independent members selected by the two designated members. In the event of the resignation, death or inability to serve of one or both of the designated members, the Company or the associations, as appropriate, shall have the right to designate a successor member. In the event of the resignation, death or inability to serve of one or more of the three selected members, the designated members, with the consent of the Company and the associations, shall select a replacement member or members.
(ii) The Purity Committee shall meet as necessary, and shall keep and submit formal minutes of each meeting to the Company and the associations within 10 days. The Purity Committee shall meet with the associations and the Company together upon request, and in any event shall meet with the Company and the associations together at least once a year, at mutually convenient times and places.
(iii) The Purity Committee's general purpose shall be to study the relationship of harvested beet purity to diffusion juice purity, and to derive a statistically significant formula which is fair, just and equitable to the Company and the growers for that relationship and to evaluate and report on procedures for testing beets for purity at the appropriate testing facility. The formula shall be designed to add to or subtract from the beet prices calculated pursuant to sub-paragraph 5(a) hereof an amount proportionately equal to the extent of the difference between actual individual crop year harvested beet purities and an average base period diffusion juice purity for the 1960-1966 period. From the data obtained from individual testing, the Purity Committee shall also determine the difference (if any) between harvested beet purity (RDS) and diffusion juice purity (RDS) of the 1977, 1978 and 1979 crops, and apply this difference, called the Harvested Beet Purity Differential (HBPD), including the 1976 data, to the base 1960-1966 diffusion juice line (RDS) Y = 68.7119
+
1.128X as established by the Purity Committee in Section 1 of its 1976 report; a new standard purity line, established by applying the Harvested Beet Purity Differential (HBPD), referenced above, to the base 1960-1966 diffusion juice purity line, and approved by the Purity Committee, shall be delivered to the Company and the associations not later than December 16 of each year; and the line shall be determined from the statistical data made available to the Purity Committee each year throughout the duration of this contract.(iv) These directions and guidelines may be modified, as necessary, by written agreement of the Company and the associations. Any proposed modifications shall be
delivered in writing by the Company to the associations, or vice versa, by July 1.
8. Severablllty. Should any part, term, or provision of this contract be decided by the courts to be illegal, or in conflict with any law of the jurisdiction where
made, the validity of the remaining portion or provisions shall not be affected thereby.
9. Status of Grower. The Grower is an independent contractor. Agricultural or other advice may be offered the Grower by the Company's representatives, but the
Grower's status as an independent contractor shall not thereby be affected. In no event shall the Company be responsible for any failure or partial failure of crop or damage to beets.
10. Non-Waiver. Failure or delay by the Company in any instance under this or any other beet contract to insist on the strict performance of any term or provision thereof, or to exercise any right, option, or privilege thereunder, shall not be construed to be a waiver by the Company of any such term, provision, right, option or privilege. No agent of the Company is authorized to waive, change or modify any of the terms or provisions of this contract.
11. Verification of Net Return. The Grower or the Association referred to in sub-paragraph 7(b). or both, at his or its own expense, shall have the right to select a
firm of Certified Public Accountants to verify the determination of average net return on sugar.
12. Certain Events. Fire, strikes, accidents, acts of God, and of the public enemy or causes beyond the control of the parties, whether similar or dissimilar,
which prevent the Grower from performing this contract or the Company from utilizing the beets contracted for in the manufacture of sugar therefrom shall excuse the respective parties hereto from the performance of this contract.
13. Authorization and Compliance with Law. The Grower covenants that he is qualified to execute and perform this contract, and agrees that all beets will be
produced and delivered hereunder in compliance with applicable law (including Sec. 12 of the Federal Fair Labor Standards Act relating to the employment of minors).
14. Successors and Assigns. This contract shall bind the parties hereto, their respective heirs, legal representatives, successors or assigns, provided, however,
that the Grower agrees that he will not assign this contract without the prior written consent of the Company and that no such assignment will be of legal effect with.out the consent of the Company.
15. Counterparts. This contract may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall
constitute one and the same instrument.
16. Alteration by Legislation. Should the Federal or any state government, or any agency or subdivision thereof, enact legislation or promulgate regulations that
materially alter any provision of this contract, the provisions affected will be renegotiated to achieve, as far as possible, a status which would leave the parties hereto in the same relative position as though such legislation had not been enacted or such regulations had not been promulgated.
17. Minor Revisions. Minor terms and provisions of this contract may be renegotiated by the Company and the Association for the 1978 and 1979 crops, upon
written notice given by either the Company or the Association to the other on or before December 15. The Grower agrees to be bound by all such renegotiated minor revisions unless he elects not to grow beets hereunder.
18. Non-Interference with Marketing Agreement. No provision in this contract shall be construed to affect, modify, or in any way interfere with any marketing
agreement between the Association and the Grower.
. .
Designated Factory (or Factories)
Primary Receiving Station
Alt~r~ate Receiving Station (Th·e Company reserves the right to fill in or change the designation of the alternate station)
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COLORADO-KANSAS DISTRICT
1977-1979 SUGARBEET CONTRACT
BETWEEN
. . .
, GROWER
and THE GREAT WESTERN SUGAR COMPANY
FACTORY DISTRICT
Executed this
.day of
., 1977.
The Grower agrees to grow, sell, and deliver sugarbeets each year during the term of this contract to The Great Western Sugar Company ("the Company"), and
the Company agrees to buy and pay for same, upon the terms and conditions hereinafter set forth.
The term of this contract shall be for three crop years beginning with the date hereof. All references herein to specific dates shall be effective for each such year.
1. Acreage. (a) Beets will be grown in 1977 on .acres in the . . .quarter. Sec. . . . ,
Township . . . .• Range . . ., County of . . . . , State of . , and in 1978 and 1979 either on such land or
on other land of the Grower. The Grower shall not be obligated to harvest or deliver, and the Company shall not be required to accept or make any payment on
account of, beets produced on acreage in excess of the acreage set forth above. except that the Company may reserve up to 2% of its total acreage for new growers
who desire to contract with it, and may reduce the Grower's acreage ratably with that of other growers to provide acreage to such new growers. Any such changes in
acreage for the 1978 and 1979 crops shall be noted in the following space and initialed by the parties:
(b) The Grower may elect for any reason not to grow beets hereunder in 1978 or 1979 by giving written notice thereof to the Company by March 1 of the year in
which the crop year occurs. Upon such notice, the parties shall have no further contractual relationship with each other hereunder. The Company intends to maintain
contracted acreage for the 1978 and 1979 crops, but maintains the right to modify acreage for any factory district on a pro-rata basis. All such acreage modifications
by the Company shall be effected by giving written notice to the Grower by March 10 of the year in which the crop year occurs.
2. Growing of Sugarbeets. The Company shall not be obligated to accept any beets which are not grown in compliance with the provisions of this paragraph 2.
(a) Only such beet seed as the Grower-GW Joint Research Committee, Inc., may approve in advance in writing and which shall be posted at the factory nearest the
beet growing area of the Grower shall be used for each crop year. The Grower may, on or before the 1st day of July, return unused beet seed purchased by him that
year from the Company, and shall receive credit for the purchase price of the unused seed, provided such seed is returned in as good condition as when it was
received and the container shows no evidence of having been opened or having suffered abuse.
(b) THE GROWER WILL NOT APPLY ANY NITROGEN FERTILIZER, IN ANY FORM, TO THE SUGARBEET CROP AFTER JULY 15TH, UNLESS GIVEN WRITTEN
PERMISSION BY THE COMPANY.
(c) The Grower shall not apply and shall not have applied to the crop or land on which the crop is grown any pesticide chemical, as defined in the Federal Food,
Drug and Cosmetic Act, as amended, unless a regulation shall then be in effect under Section 408 of said Act, exempting such chemical from the necessity of a
tolerance or establishing a tolerance for such chemical, in which event such chemical shall be applied to the crop or land only at such time and in such manner and quantities as shall be specified in the labeling of such chemical and so that any residue of such chemical on beets delivered shall be within the tolerance specified in
such regulation. The Company reserves the right to perform, at any reasonable time and at its expense, such test or tests as it shall deem necessary or desirable to
determine the level of residue, if any, of any pesticide chemical in sugarbeets grown hereunder. Should such test or tests reveal a level of residue of such chemical in
excess of the established tolerances, the Company shall have the right to reject all beets treated with such chemical and grown hereunder.
3. Delivery of Sugarbeets. The Grower will, to the best of his ability, harvest and deliver to the Company all beets grown by the Grower hereunder at a primary
receiving station(s), designated on the execution portion hereof, or, with the concurrence of the Grower, a designated alternate receiving station(s), as directed by
the Company, and in the quantities directed by the Company; provided, if the Grower desires to deliver to an alternate receiving station, the concurrence of the
Company shall not be unreasonably withheld. As soon as 95% of the crop to be delivered to the designated receiving station(s) by all Growers has been received by
said receiving station, but not before November 5, the Company shall have the right to direct the Grower to deliver to any receiving station thereafter designated by
the Company; provided, however, that the receiving station thereafter designated shall, insofar as the Company deems practicable, be the next nearest receiving
station then being operated by the Company. The Company may change the designation of the alternate receiving station(s) at any time. All beets delivered hereunder
shall be unloaded into the beet receiving equipment of the Company at the designated beet receiving station(s). No loose dirt shall be removed from the truck body
until after having been weighed back and all truck bodies used in delivering beets shall be so constructed as to prevent the spilling of any dirt.
4. Condition of Acceptable Beets. (a) All beets grown and delivered by the Grower shall, to the best of his ability, be properly topped and shall be free from
clods, dirt, stones, trash, and other foreign substances. The Grower will not deliver and the Company may reject any beets which, in the judgment of the Company,
would hinder processing at a factory, or are diseased, frozen, wilted, damaged, improperly topped, not suitable for storage or piling, of less than 12% sugar or less
than 80% purity. The Grower will not remove beet foliage from crop through grazing of livestock, mechanical means, or otherwise, earlier than the day before the day
the beets are delivered to the Company. The Grower will not, without written authorization by a Company agriculturist, harvest any beets grown hereunder until the
full period of 15 days has elapsed after completion of the last irrigation. Beets delivered shall be subject to proper deductions for tare to be determined in accordance
with regulations heretofore established by the Company, and the tons of beets purchased by the Company shall be net tons, after adjustment for tare, as shown by the
records of the Company. In taring samples of beets delivered, the Company shall, in the case of a beet the greatest diameter of which is 4½ inches or less, cut off the
tops squarely just below the crown at the base of the bottom leaf scar, and, in the case of a beet the greatest diameter of which is more than 4½ inches, by trimming
up the crown from the base of such bottom leaf scar. A distinct trace of leaf scar is to be left after top tare is taken.
(b) Anything herein to the contrary notwithstanding, the right of the Company to reject frozen beets is limited to the extent that the Company must use its best
efforts to accept frozen beets for prompt processing to the extent it considers such action to be economically feasible.
(c) The sugar content and purity of beets delivered hereunder shall be determined by tests made in a factory beet laboratory of the Company at its own expense,
and all analyses made by the Company shall be accepted as final, it being understood, however, that the Grower shall have the privilege of selecting at his expense a
qualified chemist to check in the beet laboratory the tests made by the factory chemists. The Grower shall also have the privilege of selecting at his expense a
qualified individual to check the tares and weights of the beets delivered hereunder.
(d) To ascertain the quality of beets delivered hereunder, the Company is authorized at various times during the growing and harvesting season to cause said
beets to be sampled at the Company's expense and to enter upon the aforementioned land for the aforesaid purpose.
(e) In the event the Company and the Applicable Association referred to in sub-paragraph 7 (b) hereof agree that an emergency exists and that generally the Company under the terms and conditions of its sugarbeet contracts would have the right to reject the beet crop in a substantial proportion of the area served by the
beet receiving station(s) to which the Grower delivers, then said association is authorized to act as the agent for the Grower and to modify this contract; and the
Grower, u'pon notification of the terms and conditions of the said modification, will t:>e bound by the terms of the same as fully as though he had personally agreed to
the said modification. The provisions of this sub-paragraph shall not be construed as a waiver by the Company or the Grower of the right to modify this contract by
direct negotiations in the event the Company and said association fail to agree.
5. Determination of Payment. All beets grown and delivered to the Company hereunder shall be paid for by the Company on the following basis:
(a) The price per ton (2,000 lbs.) of beets delivered hereunder shall be determined upon the average net return per one hundred (100) pounds of sugar received by
the Company from sugar manufactured by the Company at, or purchased for distribution from, its factories in the states of Colorado, Kansas, Montana, Nebraska and
Wyoming which is sold by the Company during the period October 1 to September 30 (both dates inclusive), and also upon the average percent sugar in all beets
delivered by the Grower to the Company under this contract, in accordance with the following schedule:
Avg. Net
AVERAGE PERCENT SUGAR IN BEETS
Return/100 Lbs. Sugar 19.5 19.0 18.5 18.0 17.5 17.0 16.5 16.0 15.5 15.0 14.5 14.0 $ 8.50 $18.206 $17.619 $17.031 $16.444 $15.857 $15.269 $14.682 $14.095 $13.508 $12.920 $12.333 $11.746 10.00 21.419 20.728 20.037 19.346 18.655 17.964 17.273 16.582 15.891 15.200 14.510 13.819 11.00 23.561 22.801 22.041 21.281 20.521 19.761 19.000 18.240 17.480 16.720 15.960 15.200 12.00 25.702 24.873 24.044 23.215 22.386 21.557 20.728 19.899 19.070 18.241 17.411 16.582 13.00 27.844 26.946 26.048 25.150 24.252 23.353 22.455 21.557 20.659 19.760 18.862 17.964 14.00 29.986 29.019 28.052 27.084 26.117 25.150 24.182 23.215 22.248 21.280 20.313 19.346 15.00 32.128 31.092 30.055 29.019 27.982 26.946 25.910 24.873 23.837 22.800 21.764 20.728 16.00 34.270 33.164 32.059 30.953 29.848 28.742 27.637 26.531 25.426 24.321 23.215 22.110 17.00 36.412 35.237 34.062 32.888 31.713 30.539 29.364 28.190 27.015 25.841 24.666 23.491 18.00 38.553 37.310 36.066 34.822 33.579 32.335 31.092 29.848 28.604 27.361 26.117 24.873 19.00 40.695 39.383 38.070 36.757 35.444 34.131 32.819 31.506 30.193 28;881 27.568 26.255 20.00 42.837 41.455 40.073 38.692 37.310 35.928 34.546 33.164 31.782 30.401 29.019 27.637 21.00 44.979 43.528 42.077 40.626 39.175 37.724 36.273 34.822 33.372 31.921 30.470 29.019 22.00 47.121 45.601 44.081 42.561 41.041 39.521 38.001 36.481 34.960 33.440 31.920 30.400 23.00 49.263 47.674 46.084 44.495 42.906 41.317 39.728 38.139 36.550 34.961 33.371 31.782 24.00 51.404 49.746 48.088 46.430 44.772 43.113 41.455 39.797 38.139 36.481 34.822 33.164 25.00 53.546 51.819 50.092 48.364 46.637 44.910 43.183 41.455 39.728 38.001 36.273 34.546 26.00 55.688 53.892 52.095 50.299 48.503 46.706 44.910 43.113 41.317 39.521 37.724 35.928 27.00 57.830 55.964 54.099 52.233 50.368 48.503 46.637 44.772 42.906 41.041 39.175 37.310 28.00 59.972 58.037 56.103 54.168 52.234 50.299 48.364 46.430 44.495 42.561 40.626 38.691 29.00 62.114 60.110 58.106 56.103 54.099 52.095 50.092 48.088 46.084 44.081 42.077 40.073 30.00 64.256 62.183 60.110 58.037 55.964 53.892 51.819 49.746 47.673 45.601 43.528 41.455 31.00 66.397 64.255 62.114 59.972 57.830 55.688 53.546 51.404 49.263 47.121 44.979 42.837 32.00 68.539 66.328 64.117 61.906 59.695 57.484 55.274 53.063 50.852 48.641 46.430 44.219 33.00 70.681 68.401 66.121 63.841 61.561 59.281 57.001 54.721 52.441 50.161 47.880 45.600 34.00 72.823 70.474 68.125 65.775 63.426 61.077 58.728 56.379 54.030 51.681 49.332 46.982 35.00 74.965 72.546 70.128 67.710 65.292 62.874 60.455 58.037 55.619 53.201 50.783 48.364 36.00 77.107 74.619 72.132 69.645 67.157 64.670 62.183 59.695 57.208 54.721 52.233 49.746 37.00 79.248 76.692 74.136 71.579 69.023 66.466 63.910 61.354 58.797 56.241 53.684 51.128 38.00 81.390 78.765 76.139 73.514 70.888 68.263 65.637 63.012 60.386 57.761 55.135 52.510 39.00 83.352 80.837 78.143 75.448 72.754 70.059 67.365 64.670 61.975 59.281 56.586 53.892 40.00 85.674 82.910 80.147 77.383 74.619 71.856 69.092 66.328 63.564 60.801 58.037 55.273
Payment upon net return for sugar and/or sugar content intermediate to the net returns and sugar contents shown in the above schedule shall be determined in
proportion within the intervals in which such intermediate net return or sugar content occurs. If the net return for sugar and/or sugar content is higher or lower than
those shown in the foregoing schedule, payment shall be determined in proportion, using the immediately succeeding or preceding interval, as the case may be, as
the basis for calculation.
(b) The price per ton of beets to be paid by the Company pursuant to the schedule in sub-paragraph 5(a) for each ton of beets delivered hereunder shall be
increased or decreased on the basis of the following formula:
Assessed Premium or Penalty
=
(Weighted Average Factory Diffusion Juice Purity - 1960-66Standard Diffusion Juice Purity) x .0181 x Price for Standard Beets under the schedule in
sub-paragraph 5(a).
The "Weighted Average Factory Diffusion Juice Purity" in the above formula shall be the average of all factory diffusion juice purities for all beets processed during
the harvest period through November 4 in all factories in the Colorado-Kansas District, which average shall be weighted on the basis of the net tonnage of beets
processed in each of the factories in the Colorado-Kansas District during such period; the "1960-66 Standard Diffusion Juice Purity" shall be the 1960-66 standard
percentage diffusion juice purity (Refractometer Dry Substance) computed as 68.7119
+
1.128X, where Xis the average percent sugar content of the harvested beetsreceived by the Company during the harvest period in the Colorado-Kansas District; and the "Price for Standard Beets" shall be the price for beets based on
applicable average sugar content in the Colorado-Kansas District. Insofar as possible in accordance with the Company's normal operations, the Company will
process beets representative of the overall crop in the District during the period.
(c) The net return on sugar sold shall be determined by deducting from the gross sales price all such charges and expenditures as are regularly and customarily
deducted from the gross sales price of sugar, in accordance with the Company's system of accounting heretofore established, showing net receipts from sugar sold,
including, but not limited to, the following items determined by the Company: the excess cost of special packages and specialty sugars; all costs, including
depreciation and taxes, pertaining to the operation and maintenance of facilities located at points where the Company does not operate a granulated sugar factory for
the production and/or distribution of sugar and/or mixtures of sugars sold by the Company. The Company shall not deduct any charges or expenditures, directly or
indirectly, which have not been regularly and customarily deducted in the past; provided, however, that all excises, taxes, and/or charges now or hereafter levied,
exacted or imposed by any governmental agency, directly or indirectly, on or with respect to, or arising out of, the manufacture, processing, production, ownership,
possession, holding for sale, sale, marketing or shipment of all sugars and/or mixtures of sugars or any part thereof, or on all or any part of the proceeds arising
therefrom, shall be deducted from the gross sales price. All sales or other dispositions hereunder of sugar to a related entity of the Company, including its
subsidiaries, shall be included in sugar sold at its fair market value at the time of such sale or disposition.
(d) The average percent sugar in beets upon which is also based the price per ton of beets purchased hereunder shall be determined by dividing the total number
of tons of sugar in all beets grown and delivered hereunder, as determined from factory beet laboratory tests, by the total number of tons of said beets (hereinafter
called "actual percent").
(e) Freight expenses from the primary receiving station to which the Grower's beets are contracted to the designated factory (or factories, on a prorated basis). or
such lesser expenses as are actually incurred, shall be paid and shared based upon the average sugar content of that station. The Company shall bear the cost of all
such expenses, including any transportation tax thereon, up to the Station Freight Rate Per Ton, determined from the schedule set forth below, based on the rail or
truck rate (between the same points for the current mode of transportation) in effect, or which would have been in effect, on October 1, 1974, and the Grower shall
bear the remainder of the expenses in excess thereof. Any rail or truck freight rate increases, including any transportation tax thereon, which shall have occurred or
which may occur after October 1, 1974, shall be shared, the Grower paying 62% and the Company 38% of such increases in excess of the Station Freight Rate Per
