Formerly NE North Dakota, now NW MN | It doesn't supercede it per se. Its not an agreement between renters/shareholders. Its an agreement between one legal entity (the JV) and all the other shareholders, I.e. The COOP. What goes on inside that JV is the business of the partners in it. Crystal could care less. But if you sign the five year agreement with crystal, you have agreed to bring them beets. I don't know that it does give the shareholder an advantage. Truthfully, if the grower wants out and can't get out, and the two parties in the JV can't come to an agreement on rent, the grower can pretty much not pay any rent and the shareholder wouldn't really have any recourse. (I think. I'm no lawyer).
Its a tough deal for sure, but I don't see it as the co. Taking sides. Its the coop protecting the coop. As Dave berg said "Its our job to protect all of you from any one of you." and, since I'm kinda on both sides of this fence, both a renter and a shareholder, I really think that's the right way to do it. |
American Crystal trades at $1,350
