Florida Sugarcane Land Sale Terms Amended

The agreement under which United States Sugar Corporation (USSC) would sell about 187,000 acres of its holdings along the southern rim of Lake Okeechobee to the South Florida Water Management District (SFWMD) has been revised.

First announced in June 2008, the deal called for the state of Florida to pay USSC $1.75 billion for the nearly 300 square miles, with the land to eventually constitute a large part of the Everglades restoration project. The agreement allowed USSC to farm the land for six more years before closing down its operations.

In light of the current economic climate, however, the SFWMD and USSC have now agreed to accomplish the land acquisition in two phases. The new proposed terms — announced on April 1 and still subject to approval by the two entities’ governing boards — call for the district to acquire 112 square miles of property immediately, with an option to purchase the remaining acreage “when economic and financial conditions improve.”

Under the revised plan, the district would initially invest about $530 million for 72,500 acres of property south of Lake Okeechobee. Approximately 32,000 of those acres, currently in citrus production, would be available to the district within a year after closing. USSC would lease back the other 40,500 acres of sugarcane land for $150 per acre per year for at least seven years. The water district would have an option to purchase the remaining 107,500 acres of USSC property for restoration within the first 10 years after closing.

“With property values and tax revenues falling, this became a matter of what the district realistically could afford,” said Robert Coker, USSC’s senior vice president-public affairs. “Obviously, neither party gets everything they wanted at closing; but over the next 10 years the state can still acquire a large portion of historic Everglades, and U.S. Sugar property can still provide the legacy footprint for signification restoration.

“The two-step approach provides a greater degree of certainty for our businesses, our employees and also our communities by keeping our farming and processing operations viable,” Coker added.

United States Sugar Corporation has been a member company of United Sugars Corporation, the Edina, Minn.-based sugar marketer and distributor, since 1998. Other members are beet sugar processors American Crystal Sugar Company and Minn-Dak Farmers Cooperative.