LEGAL MATTERS:

12 Months Ended

Aug. 31, 2012

LEGAL MATTERS:

LEGAL MATTERS:

(17) LEGAL MATTERS:

Since September of 2009, the U.S. Department of Agriculture’s (USDA) deregulation of Roundup Ready® sugarbeets has been in controversy.  As a result of this ongoing controversy, the Company has taken various actions related to the planting of Roundup Ready® sugarbeets, including participating in the litigation process and entering into a compliance agreement with USDA to allow the Company’s shareholders to choose between conventional sugarbeet seed and Roundup Ready® sugarbeet seed during this time frame.

On July 19, 2012, the USDA announced its decision resulting in the nonregulated status of Roundup Ready® sugarbeet seed.  This final action potentially concludes the controversy over Roundup Ready® sugarbeet seed and allows the Company’s shareholders to plant Roundup Ready® sugarbeet seed in the future.  Notwithstanding this USDA action, there can be no assurances that groups opposed to Roundup Ready® sugarbeet seed or similar seed products will not institute additional proceedings related to the use of Roundup Ready® sugarbeet seed in the future.