Thursday, January 4th, 2001

Deadline looms for MnSP initial offering

Jan. 10 is a big day for farmers who want to invest in the Minnesota Soybean Processors (MnSP) cooperative's soybean crushing facility.

That's the day they must join the co-op in order to avoid a hike in the cost per share of stock.

The farmer-owned co-op needs to raise $18.7 million in farmer equity to finance an 80,000-bushel-a-day soybean crush.

As of mid-December, MnSP attracted around 200 members and raised slightly more than $2 million in equity, according to co-op chairman and Brewster farmer Bob Kirchner. Orders since then will be tallied shortly.

"They're coming in at a very good pace."

To become a member, a soybean farmer must buy one share of common stock for $250 and commit to the purchase of 2,500 equity shares at $2 each, for a total investment of $5,250.

On Jan. 11, the stock price will increase to $2.25 per share, adding an additional $625 to the bill for the minimum number of shares. At that point, the minimum investment is $5,875.

"A lot of people have told me they're going to do it," Kirchner said. "If they're going to do it, they should do it at the initial offering."

Kirchner is confident the equity goal will be met.

"We don't know when, but we're confident we're going to meet that goal," he said.

Farmers must come up with the $250 fee and 10 percent of the equity to join now. The balance will be due in three 30-percent increments July 1, fall 2001 and March 2002.

Kirchner said farmers from South Dakota, Minnesota and Iowa have joined the co-op.

"Where a producer lives is not important," he said.

The co-op will process soybeans from members, but a pool system will be used.

For example, if a South Dakota farmer raises 10,000 bushels, he can sell them locally to save transportation costs. For a small fee, the co-op will then buy a similar amount of soybeans locally and put them toward that farmer's account.

Kirchner said the co-op has a target date of fall 2002 to fall 2003 to begin operations.

The co-op has scheduled additional meetings: Friday, 1 to 4:30 p.m., Bingham Lake, Ethanol 200 board room; Saturday, 8:30 p.m., Sioux Falls, S.D., Ramkota hotel, Amphitheater No. 2; Monday, 2 p.m., Buffalo Lake, Buffalo Lake-Hector Elementary School; Monday, Granite Falls, 2 p.m., Kilowatt Community Center; Tuesday, 1 p.m., Luverne, Pizza Ranch; Tuesday, 7 p.m., Brewster, American Legion; Wednesday, 2 p.m., Balaton, Balaton Community Center; Wednesday, 7 p.m., Windom, Law Enforcement Center; and Jan. 16, 9 p.m., Morton, Jackpot Junction Night club room.

Kirchner said the co-op's office at the Gateway Office Plaza in Worthington is open Monday through Friday from 8:30 a.m. to 2:30 p.m. The phone number is 343-6677.