2016 Payment System Comparison Mark Bloomquist SMBSC

2016 Payment
System Comparison
Mark Bloomquist
SMBSC
Effective with 2016
Crop.
Designed to further
incentivize quality
of the sugar beet
crop.
Example A
33.25 Ton/Acre
16% Sugar
91% Purity
Example A
33.25 Ton/Acre
16% Sugar
91% Purity
Example B
31.0 Ton/Acre
17% Sugar
91.5% Purity
Example A
33.25 Ton/Acre
16% Sugar
91% Purity
Example B
31.0 Ton/Acre
17% Sugar
91.5% Purity
+ $98/Acre
More accurately
represents revenues
and expenses
Comparisons of 2015
payment calculation
to 2016 payment
calculation.
Three Examples
APD Nitrogen Data
CLS Trial Data
OVT Variety Data
Comparison
2015 Calculation
2016 Calculation
Comparison between
Total Nitrogen vs.
Rev/Acre using
SMBSC APD Data
Total Nitrogen
Number
of Fields
<100 lbs.
79
100-120 lbs.
73
121-140 lbs.
74
140-160lbs.
49
>160 lbs.
93
Extractable
Sugar/Ton
Sugar %
Tons/Acre
Net
Revenue/Acre
Total Nitrogen
Extractable
Sugar/Ton
<100 lbs.
293
100-120 lbs.
295
121-140 lbs.
292
140-160lbs.
290
>160 lbs.
285
Sugar %
Tons/Acre
Net
Revenue/Acre
Total Nitrogen
Extractable
Sugar/Ton
Sugar %
<100 lbs.
293
17.22
100-120 lbs.
295
17.29
121-140 lbs.
292
17.17
140-160lbs.
290
17.06
>160 lbs.
285
16.89
Tons/Acre
Net
Revenue/Acre
Total Nitrogen
Extractable
Sugar/Ton
Sugar %
Tons/Acre
<100 lbs.
293
17.22
29.3
100-120 lbs.
295
17.29
28.3
121-140 lbs.
292
17.17
30.3
140-160lbs.
290
17.06
29.7
>160 lbs.
285
16.89
31.7
Net
Revenue/Acre
Total Nitrogen Extractable
Sugar/Ton
Sugar %
Tons/Acre
Extra N
Cost/Acre
Net
Revenue/Acre
100%
<100 lbs.
293
17.22 29.3
$0
100-120 lbs.
295
17.29 28.3
$4.90
121-140 lbs.
292
17.17 30.3
$14.70
140-160lbs.
290
17.06 29.7
$24.50
>160 lbs.
285
16.89 31.7
$49
Total Nitrogen Extractable
Sugar/Ton
Sugar %
Tons/Acre
Extra N
Cost/Acre
Net
Revenue/Acre
<100 lbs.
293
17.22 29.3
$0
100%
100-120 lbs.
295
17.29 28.3
$4.90
- $33.03
121-140 lbs.
292
17.17 30.3
$14.70 +$22.52
140-160lbs.
290
17.06 29.7
$24.50 - $35.24
>160 lbs.
285
16.89 31.7
$49
- $15.90
Total Nitrogen Extractable
Sugar/Ton
Sugar %
Tons/Acre
Extra N
Cost/Acre
Net
Revenue/Acre
100%
<100 lbs.
293
17.22 29.3
$0
100-120 lbs.
295
17.29 28.3
$4.90
121-140 lbs.
292
17.17 30.3
$14.70
140-160lbs.
290
17.06 29.7
$24.50
>160 lbs.
285
16.89 31.7
$49
Total Nitrogen Extractable
Sugar/Ton
Sugar %
Tons/Acre
Extra N
Cost/Acre
Net
Revenue/Acre
<100 lbs.
293
17.22 29.3
$0
100%
100-120 lbs.
295
17.29 28.3
$4.90
- $31.31
121-140 lbs.
292
17.17 30.3
$14.70 +$21.85
140-160lbs.
290
17.06 29.7
$24.50 - $38.50
>160 lbs.
285
16.89 31.7
$49
- $24.04
Total Nitrogen
2015 Net
Revenue/Acre
2016 Net
Revenue/Acre
<100 lbs.
100%
100%
100-120 lbs. - $33.03
121-140 lbs. +$22.52
140-160lbs. - $35.24
>160 lbs.
- $15.90
Total Nitrogen
2015 Net
Revenue/Acre
2016 Net
Revenue/Acre
<100 lbs.
100%
100%
100-120 lbs.
- $33.03 - $31.31
121-140 lbs.
+$22.52 +$21.85
140-160lbs.
- $35.24 - $38.50
>160 lbs.
- $15.90 - $24.04
Comparison between
Untreated CLS Trial
&
4 Spray CLS Trial
CLS Trial Data – 2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
Untreated
4 Sprays
Per Ton
Per Acre
CLS Trial Data – 2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
7704
Per Ton
Per Acre
CLS Trial Data – 2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
Per Ton
$0
7704 + $7.64
Per Acre
CLS Trial Data – 2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
Per Ton
Per Acre
$0
$0
7704 + $7.64 + $267
CLS Trial Data – 2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
7704
Per Ton
Per Acre
CLS Trial Data – 2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
Per Ton
$0
7704 + $8.54
Per Acre
CLS Trial Data – 2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
Untreated 13.9
28.0 6385
4 Sprays
15.4
29.6
Per Ton
Per Acre
$0
$0
7704 + $8.54 + $290
CLS Trial Data – Comparison
2015 Payment
Per Ton
Untreated
4 Sprays
Per Acre
2016 Payment
Per Ton
$0
$0
+ $7.64
+ $8.54
Per Acre
CLS Trial Data – Comparison
2015 Payment
Untreated
4 Sprays
2016 Payment
Per Ton
Per Acre
Per Ton
Per Acre
$0
$0
$0
$0
+ $7.64 + $267 + $8.54 + $290
CLS Trial Data – Results
2015 vs. 2016:
4 Sprays
Per Ton
Per Acre
+ $0.90
+ $23
Comparison between
Fully Approved Varieties
&
Rhizoc Specialty Varieties
Full Approval Varieties (Average)
Beta 92RR30
Beta 92RR60
Crystal M375
Crystal M380
Crystal RR270
RHC Specialty Approval Varieties (Average)
Beta 90RR54
Beta 91RR01
Crystal RR018
2015 Payment Formula
2015 Payment
Sugar Tons/A
RHC Spec.
(Top 3)
Full App.
Varieties
ESA
Per Ton
Per Acre
2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
(Top 3)
Full App.
Varieties
17.4
35.2
8965
Per Ton
Per Acre
2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
(Top 3)
Full App.
Varieties
17.4
35.2
Per Ton
$0
8965 + $3.75
Per Acre
2015 Payment Formula
2015 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
Full App.
Varieties
17.4
35.2
Per Ton
Per Acre
$0
$0
8965 + $3.75 + $68.10
2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
Full App.
Varieties
17.4
35.2
8965
Per Ton
Per Acre
2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
Full App.
Varieties
17.4
35.2
Per Ton
$0
8965 + $4.18
Per Acre
2016 Payment Formula
2016 Payment
Sugar Tons/A ESA
RHC Spec. 16.7
36.8 8704
Full App.
Varieties
17.4
35.2
Per Ton
Per Acre
$0
$0
8965 + $4.18 + $84.04
2015 Payment
Per Ton
RHC Spec.
Full App.
Varieties
Per Acre
2016 Payment
Per Ton
Per Acre
Old Payment
Per Ton
Per Acre
New Payment
Per Ton
RHC Spec.
$0
$0
Full App.
Varieties
+ $3.75
+ $4.18
Per Acre
Old Payment
RHC Spec.
Full App.
Varieties
New Payment
Per Ton
Per Acre
Per Ton
Per Acre
$0
$0
$0
$0
+ $3.75 + $68.10 + $4.18 + $84.04
’16 vs. ’15:
Per Ton
Approved Varieties + $0.43
Per Acre
+ $15.94
New Payment is effective with 2016 Crop.
Designed to further incentivize beet
quality.
For Shareholders
Revenue calculator available on Shareholder Portal
Questions ?