ISSUE #443

443 Pre-Pile Payment Systems

8-27-03

The pre-pile payment system is designed to encourage and reward shareholders for the delivery of high sugar content beets during pre-pile, fairly distribute the premium paid to all shareholders and thereby keep our factories supplied and operational prior to main stockpile.

  • The payment system compensates for the reduced tons and sugar content of pre-pile beets by paying more to growers who have to pre-pile early vs. later. The system also encourages the delivery of high sugar content beets by paying more for higher than average sugar content delivered on the same day.

  • Each day that pre-pile runs prior to main stockpile; a sugar premium and growth premium are calculated and assigned based on actual deliveries and quality samples.

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The above chart shows the amount of premium per day for crop years 1996 through 2001. In years where sugar content increases more than average in September, as it did in crop year 2000, the pre-pile premium percentage growers receive on tons delivered also increases.

The table is based on average sugar growth rates and payment statistics for the last three years and is meant as an example. The 2003 crop year premiums will be based on the actual average growth rate and payment statistics from the 2003 crop.

# of Days Prior to Stock-pilePre-pile Premium# of Days Prior to Stock-pilePre-pile Premium# of Days Prior to Stock-pilePre-pile Premium# of Days Prior to Stock-pilePre-pile Premium# of Days Prior to Stock-pilePre-pile Premium
1 5.7 8 23.9 15 46.0 22 73.8 29 126.9
2 8.1 9 26.8 16 49.6 23 78.3 30 134.4
3 10.6 10 29.8 17

53.3

24 83.0 31 142.2
4 13.1 11 32.8 18 57.1 25 87.9 32 148.5
5 15.7 12 36.0 19 61.1 26 93.0    
6 18.4 13 39.2 20 65.1 27 113.0    
7 21.1 14 42.6 21 69.4 28 119.8    

An example of how the payment for sugarbeets delivered during the pre-pile harvest period would be determined is as follows. For this example we will assume that the regular payment for beets having a sugar content of 17.5% sugar would be forecasted to have a $40 per ton payment. You deliver beets 15 days prior to the beginning of stockpile and the sugar content is 15.5%. Based on the actual sugar content of those sugarbeets, and the forecasted beet payment, those sugarbeets would generate a base payment of $31 per ton. Now according to the table above, since these sugarbeets were delivered 15 days before stockpiling started, the total payment would also include a premium of 46%, which is $14.26 per ton. Therefore, the total payment for the sugarbeets delivered on that day would be $45.26 per ton. If the grower had delivered sugarbeets on that same day with 16.5% sugar content the grower would have been paid a $35.50 base payment with a premium of $16.33 for a total payment of $51.83 per ton.

Strategies for Maximizing Pre-Pile Payment System

  • Do not plant headlands.
  • Reduce nitrogen fertilizer or do not apply any on headlands.
  • Use high sugar type varieties in areas harvested during pre-pile harvest.
  • Plant more seed on the headlands to raise these normally lower populations.
  • Scalp beets during pre-pile to remove low quality crown growth.
  • Manage strikeout areas for early harvest with some of the same practices.
  • Harvest fields with highest sugar content. Sample your fields for sugar content prior to harvest operations.

 

Other Points

  • Every grower must help pay the costs of pre-pile throughout the company. Remember; All contracts are charged the same amount on a per ton basis whether pre-pile beets are delivered on them or not.
  • If you give your pre-pile quota to another grower, you will still be charged for the pre-pile system cost.
  • Use the pre-pile calculator for input to help you with your field selections. You can access the calculator at www.crystalsugar.com under the Agronomy section.

 

More information about the pre-pile system is available from your agriculturist.

Enhancements/Changes to Reduction of Late Harvest Program

Once 98% of the tonnage at a station has been reached, growers will have 36 hours to complete harvest before any penalty will be assessed instead of the previous 24 hours.
The 98% plus 36-hour trigger at each station will be determined upon the completion of harvest. The agriculturist will provide an estimated date and time of the 98% plus 36-hour trigger, but it will only be an estimate. Actual time will be calculated post-harvest.
The late harvest penalty for each affected harvest unit will be $50 per hour of operation that the piling site is open for the benefit of two or more harvest units. If only one harvest unit is hauling to the station, the penalty will be $100 per hour of operation.

 

Lygus Alert

Monitor fields for presence of Lygus bugs and be sure to spray the infected fields as necessary.