U.S. Sugar to Sell Sugar Land

As part of an Everglades restoration project, the South Florida Water Management District (SFWMD) plans to acquire 72,500 acres of land from U.S. Sugar to reestablish the natural flow of water in the Florida Everglades.

For decades, much of the land has been farmed for citrus and sugar crops by U.S. Sugar, the largest producer of sugar cane and refined cane sugar in the nation.

U.S. Sugar produces roughly 10% of the total domestic sugar supply. It's also one of Florida's major orange and orange products producers.

To the delight of environmentalists, who charge sugar growers with depriving the land of water and polluting it with fertilizers, U.S. Sugar is eager to move forward with the acquisition. [See a map of the sugar crop land in the Everglades.]

The effort will generate revenue for restoration and both boards have agreed on terms.

Senior vice-president of public affairs at U.S. Sugar, Robert Coker, said in a statement,

"Our board approved the revised acquisition approach implementing [Florida] Governor Crist's bold vision for our property... While the vision and goal remain unchanged, the economy dictated this more affordable approach."

Under the original terms from June 2008, nearly all of the land was to be purchased for $1.75 billion.

Under new terms just agreed upon, U.S. Sugar will retain the facilities and only the land will be sold.

The cost: $1.34 billion.

Some of the terms of the sugar crop land negotiation include:

• SFWMD will acquire the first 72,500 acres for ~$536 million with a 10-year option for the remaining 107,500 acres.


• U.S. Sugar will continue to farm the property through a 7 year lease that has the the option to be extended.


• U.S. Sugar will lease back the sugar cane land for $150 per gross acre (3x the original lease amount) for the initial 7 year period.

According to SFWMD executive director Carol Ann Wehle,

"The lease would generate $40 million in revenue... This strategy allows us to take hold of an unprecedented opportunity for restoring America's Everglades with a fiscally responsible hand."

The deal also ensures that U.S. Sugar can farm for another decade and develop plans for the future of the sugar industry in the US.