Washington, D.C. – Wyoming and regional sugar beet growers are close on a deal to buy area sugar processing factories and staying in business, said U.S. Senator Mike Enzi, R-Wyo.

When Tate and Lyle Sugar Company said it was going to close sugar processing facilities in the region including a plant in Lovell, growers decided to form the Rocky Mountain Sugar Growers Cooperative (RMSC), a multi-state cooperative with members from Wyo., Mont., Neb., and Colo., in order to buy the plants themselves. Purchasing the plant will put the growers one step closer to the marketplace.

The RMSC applied to the USDA last year for a $14 million Business and Industry loan guarantee that would help them acquire the six processing facilities, but the co-op ran into a regulation snafu that threatened to derail the purchase.

"The sugar growers and I have been working with the USDA for months and it appears we've found a way through the red tape," said Enzi. "Sugar beets are the number one cash crop in Wyoming and if those factories close their doors the effect would be detrimental to the communities that depend on them," said Enzi.

The RMSC, in an effort to simplify the loan application process, formed a non-profit finance company to consolidate individual farmer loans and guarantee applications. The finance company planned to receive one loan which would then be distributed to individual growers.

However, USDA regulations do not permit a loan guarantee to be granted to a finance company and the RMSC would have needed a waiver of the regulation before it could receive any financial backing.

Enzi contacted the USDA to encourage them to grant the waiver but they were unwilling to do so because of the large amount of the request.

Enzi was able to arrange a meeting between the USDA and sugar beet growers early last month. Subsequently, the USDA agreed to an expedited review of individual loan guarantee applications. Enzi is hopeful this will result in the growers taking control of the plants soon. timely ownership of the processing facilities.

"Finding a solution to this problem is extremely important in preventing an end to the sugar beet industry in this region of the country," said Enzi. "The RMSC worked hard to save their industry and should be commended for their efforts."