Individual Shareholders own Patron Preferred Shares which entitles and obligates the Shareholder to raise an acre of beets for each share. The Shareholder is also obligated to enter into a Shareholder Agreement with the Cooperative which defines obligations of the Cooperative and Shareholder and is, in essence, the contract between the two parties.
The obligation of the Shareholder is to raise and deliver the sugar beets to the Cooperative.
The obligation of the Cooperative is to process and market the sugar and related by-products for the Shareholders.
The Cooperative is governed by an elected Board of Directors. The responsibility of this board is to direct the Management of the Cooperative in the matters of business as per the Bylaws and Articles of Incorporation of the Cooperative.
The Shareholder Agreement sets the standards for which the Shareholder will deliver the beets and how much will be paid for the beets delivered each year. The price of beets per ton is determined by the percent of sugar content of the beets delivered and by the average net selling prices of the sugar marketed during the marketing year. The Shareholder Agreement is reviewed each year by the Board of Directors for any needed changes.