sugar cane – tightening our belts 2014 palm beach county property appraiser

Sugar Cane – Tightening Our Belts 2014 Palm Beach County Property Appraiser

Palm Beach County & Lake View

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Organic SoilsOrganic Soils

Palm Beach County has 5 Sugarcane Belts. DelineationIs based on proximity toLake Okeechobee, soil quality, temperature variations attributable to the warming influence of the lake, sugarcane tonnageproduction numbers and market value derived from sugarcane land sales.

Seed Cane Cutting

Machine-cut whole-Machine-cut whole-stalkstalk

• Hand-cut whole stalkHand-cut whole stalk

Seed Cane Loading• Whole stalk seed Whole stalk seed

cane is loaded on cane is loaded on wagons using a wagons using a “Grab Loader”“Grab Loader”

Furrowing for Planting 3 or 5 furrows made in one 3 or 5 furrows made in one passpass

GPS guided – auto-steeringGPS guided – auto-steering

Furrows 4-6” Furrows 4-6” deepdeep

Fertilizing Before Planting

Fertilizer can be Broadcast or Banded in the furrowFertilizer can be Broadcast or Banded in the furrow

• Custom blended fertilizer• Primary nutrients applied:

P, K, Mg, Cu, Zn, Mn, B, N – on sand

Hand Planting Sugarcane

– 8 or 9 person 8 or 9 person crewscrews

• 4 droppers4 droppers• 4 choppers4 choppers

15 – 20 acres/day15 – 20 acres/day

2 – 6 crews depending on 2 – 6 crews depending on size of operationsize of operation

30 – 120 acres / day30 – 120 acres / day

Machine Planting Sugarcane

Covering Sugarcane After Planting

Sugarcane Cultivation• Weeds controlled Weeds controlled

mechanically and chemicallymechanically and chemically• Herbicides used:Herbicides used:

– AtrazineAtrazine– 2,4-D & dicamba2,4-D & dicamba– Ametryne (Evik)Ametryne (Evik)– AsulamAsulam– Glyphosate (Roundup)Glyphosate (Roundup)– Metribuzin (Sencor)Metribuzin (Sencor)– Pendamethalin (Prowl)Pendamethalin (Prowl)– Mesotrione (Callisto)Mesotrione (Callisto)

• Mostly early postMostly early post• 2 applications2 applications• Lay-by mid-MayLay-by mid-May

Weed Control

• Both aerial and ground applicatorsBoth aerial and ground applicators

Pre-harvest Sugarcane Burning• Burn permitsBurn permits issued daily issued daily

by zoneby zone

• More restrictions in More restrictions in easterly zoneseasterly zones

Sugarcane Harvesting

Loading Cane Cane is loaded

into trucks or rail cars via conveyor or dump wagons

Cane Receiving• Each load is tracked from

the field.

– Each trailer makes about 2 loads a day.

• Independent contractor hauling fleet.

– Each driver makes 7 – 10 loads per day

– Driver has electronic keycard for load tracking and fueling

Feeding the mill

3 minutes / load3 minutes / load 24 hr operation24 hr operation

Cane Milling

• Cane is carried by conveyor Cane is carried by conveyor through sets of knivesthrough sets of knives

• Prepared cane is passed Prepared cane is passed through sets of mills in a through sets of mills in a tandemtandem

• Each mill presses cane with Each mill presses cane with a force of about 2200psia force of about 2200psi

Cane Milling• 6 – 7 mills in a milling 6 – 7 mills in a milling

tandemtandem• Water is addedWater is added• Cane is crushed Cane is crushed

repeatedlyrepeatedly• 98% of sucrose 98% of sucrose

extractedextracted

Juice Processing• Sucrose content Sucrose content

determined for determined for paymentpayment

• Clarified by Clarified by removing mud removing mud and fine fiberand fine fiber

• Juice quality is Juice quality is monitoredmonitored

• Water Water evaporated off evaporated off under vacuumunder vacuum

Sugar• Sugar separated Sugar separated

from molasses by from molasses by centrifugationcentrifugation

• Trucked to Trucked to warehouses until warehouses until shipped to shipped to refineriesrefineries

Storage for up to a Storage for up to a year without year without problemsproblems

Shipped to Shipped to refineries by refineries by ocean-going bargeocean-going barge

2013 SUGAR CANE 10 YR FINAL AGRICULTURAL VALUES

TAX YEAR – 2013 (CROP YEAR 2011-2012) SUGAR CANE AG VALUE BASED ON THE INCOME APPROACH

PRODUCTION ANALYSIS

1 2 3 4 5 6

BELT # SAMPLE # GROSS TONS

STANDARD QUALITY FACTOR

NET TONS/ACRE

NET STAND TONS/AC COMMENTS

    (with trash)  (less trash)

=9% (4 x 5 = Col 6)1 ALL (12) 37.32 1.2223 33.96 41.51 Indication that Belt2 ALL (17) 37.98 1.2011 34.56 41.51 1 & Belt 2 are one.3 ALL (15) 34.50 1.2280 31.40 38.554 ALL (18) 28.55 1.2490 25.98 32.455 ALL (9) 24.08 1.1442 21.91 25.07

INCOME ANALYSIS7 8 9 10 11 12 13 14

PRICE/ST TON

SUGARCANE INC/AC

MOLASSES INC/AC

TOTAL INCOMEPER ACRE

EXPENSES/ GROSS TONS

NET INCOME/ACRE

CAP RATE

FINAL AG VALUE/AC

$25.53x1.15 10 YEAR 1.24 10 YEAR @ $25.96 10 YEAR    

$29.36 (6 x 7 =Col 9) Col 5 x 1.24 (8+9= Col 10) 3 x exp=Col 11 10-11=Col 12 0.0600 12/13= 14   

$29.36 $1218.73 $42.11 $1,260.84 $968.83 $292.01 0.1235 $2,364$29.36 $1218.73 $42.85 $1,261.58 $985.96 $275.62 0.1235 $2,232$29.36 $1132.12 $38.94 $1,171.06 $895.62 $275.44 0.1235 $2,230$29.36 $952.73 $32.22 $984.95 $741.16 $243.79 0.1235 $1,974$29.36 $736.06 $27.17 $763.23 $625.12 $138.11 0.1235 $1,118

Sugar Cane – Tightening Our Belts 2014 Palm Beach County Property Appraiser

“River of Grass” RestorationIn 2008, the SFWMD voted to accept a contract with US Sugar Corp. to acquire 187,000 acres of agricultural land for Everglades Restoration. The purpose is to store and treat water for the benefit of the Everglades, Lake Okeechobee, St. Lucie and Caloosahatchee Rivers. In 2010, SFWMD purchased 26,800 acres, including 10,000 acres of prime sugarcane acreage in PBC. Now they are selling 8,700 of the 10,000 acres to Florida Crystals. Clearly, the EAA acreage is at the mercy of the SFWMD.

A recent mining study prepared by the FL Dept. of Transportation shows the EAA as one of the prime areas in the state with potential for rock mining. As a result, during the past few years more than 20,000 acres have been approved for mining, in addition to three commercial rock mines that were approved prior to 2006. Currently, there is 1,592 acres already mined and 25,153.60 acres approved to excavate. The duration of mining is up to 75 years.

For more information contact Diane Pendleton – dpendleton@pbcgov.org