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[BUSINESS] · United States · 2 sources

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Louisiana sugarcane farmers face rising costs and pests

Sugarcane farmers in Louisiana are experiencing significant financial strain due to rising production costs, despite favorable crop conditions. Key drivers of this economic pressure include diesel prices nearly doubling since last winter, a 20% increase in fertilizer costs, and an infestation of the invasive pasture mealybug, which has necessitated unexpected pesticide expenditures.

Individual farmers report substantial budget overruns. Eddie Lewis III, who manages 1,000 acres, estimates he is $200,000 over his $1 million budget. Similarly, Ramaun Fernandez reports being approximately $10,000 over his $250,000 budget. To manage these costs, some producers have cut labor, postponed equipment purchases and infrastructure repairs, and are reconsidering the amount of land they will replant.

According to the LSU AgCenter, direct sugarcane production costs rose from $543 per acre in January to $643 per acre in August. Agricultural economists note that higher fuel and fertilizer expenses, partly influenced by international conflict, are outweighing gains from improved crop prices. Additionally, farmers are contending with drought, increased irrigation expenses, and the expansion of industrial developments into rural areas.

Entities

Eddie Lewis III · LSU AgCenter · Louisiana · Ramaun Fernandez