WORLAND – On Thursday, the Wyoming Business Council voted unanimously to grant Wyoming Sugar Cooperative growers approximately $5,675,650 in relief loans following a 2016 loss in revenue due to weather-related devastation.

Citing intense fall rains and a hard winter freeze stretching from December through February, the council agreed to supplement the grower’s lost revenue, after 15 minutes of brief clarification and comments by the board. Wyoming Sugar’s situation did not qualify for emergency financial aid from the United States Department of Agriculture or the Farm Service Agency.

Joining the meeting by phone were Wyoming Sugar Vice President Mike Greear and Controller Joan Hall.

“Wyoming Sugar started pursuing these loans as soon as we saw the possibility,” said Greear, after the meeting. “These loans will help [the growers] absorb some of the loss, but they will still be borrowing money, and the decision to do so is still with the grower.”

As described during the meeting, the 2016 harvest endured five inches of rain during collection, which resulted in muddy, hard-to-process sugar beets. Furthermore, a freeze on Dec. 20 to the harvested beet piles cause further damage and delay in processing, which resulted in a weakened sugar content.

“The [beet] harvest has had set backs due to weather ever since it started, in various forms,” said Greear.

Wyoming Sugar is owned by 38 growers representing about 60 families in Fremont, Big Horn, Park and Washakie counties. By designating each county an economic disaster area, each beet producer would need to complete a loan application by May 15, 2017. Staff will analyze each loan for sufficient collateral and cash flow. The 10-year loans will include 3.5 percent in annual interest.

As outlined by the Business Council, money will be issued to the producers by check, or through their bank as outlined by the loan agreement, and will not exceed the proportion of the grower’s actual loss.

The Wyoming Business Council staff will meet with eligible growers next week in Worland to walk the cooperative members through the loan process and evaluate the needs of each producer. On average, producers could receive as much as $153,000.

In the past, the Business Council has provided 123 alfalfa, bean and beet growers $6,038,396 in economic disaster loans since 2000. Of those, six growers defaulted on a total of $84,201. The interest income since 2000 totals $941,414 and the principal remains untouched.