Source: LOUISIANA STATE UNIVERSITY submitted to NRP
ECONOMIC EVALUATION OF SUGARCANE PRODUCTION IN LOUISIANA
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0220420
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2009
Project End Date
Sep 30, 2014
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
LOUISIANA STATE UNIVERSITY
202 HIMES HALL
BATON ROUGE,LA 70803-0100
Performing Department
Agri Economics & Agribusiness
Non Technical Summary
Production efficiency plays a pivotal role in the development of regional cropping systems. Production depends on factors that can be divided into four broad categories: (1) physical, which includes soils, climatic phenomena, topography and other agronomic factors; (2) structural, which includes farm size, farm equipment and machinery technologies, land tenure, and human capital; (3) governmental, which includes those state and national policies that impact either directly or indirectly on agricultural activities; and (4) economic, which includes supply and demand impacts on commodity market price, the cost of production inputs, investment and operating costs of farm machinery and equipment, and other economic and financial phenomena. All of these factors have a direct impact on the economic feasibility of sugarcane production in a given region. The sugar industry in Louisiana is currently facing many changes and challenges. Increased production expenses, primarily due to the significant rise in fuel and fertilizer prices over the 2006-08 period, has substantially reduced the core profitability level of the industry?s production sector. The evolving structure of the raw sugar milling sector in the state is continuing as mills reorganize their business structure to remain economically viable. Domestic farm commodity policies as well as international trade policies, such as NAFTA and CAFTA-DR, are having a direct impact on the market price of raw sugar received by producers. As the import tariffs on Mexican sugar coming into the U.S. under the NAFTA agreement expired in 2008, the variability of Mexican sugar production and trade has increased the economic risk and uncertainty in the domestic U.S. sugar market. The use of best management practices is becoming much more important to the economic viability of sugarcane production in Louisiana. Farming practices such as green cane harvesting, burning, removal of harvest residue from fields, use of chemical ripeners and minimum tillage or no till field operations all have a significant impact on a current year sugarcane crop as well as subsequent stubble crops. The impact of these alternative practices on production costs is just as important as its impact on yields and returns. All of these trade policies, farm programs, commodity market conditions and alternative farming practices directly impact the farm-level economic returns associated with sugarcane production. In order to remain viable farm business enterprises well into the future, Louisiana sugarcane farms will need to select the appropriate combination of sugarcane and other commodities, production technologies, and farm management practices to most efficiently utilize available resources and to achieve the long-term goals of the farm business. Economic research into these various factors can provide useful information to aid in the decision-making process.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6012020301090%
6102020301010%
Knowledge Area
601 - Economics of Agricultural Production and Farm Management; 610 - Domestic Policy Analysis;

Subject Of Investigation
2020 - Sugar cane;

Field Of Science
3010 - Economics;
Goals / Objectives
The general objective of this project is to conduct economic evaluations of physical, structural, governmental, and commodity market factors impacting the production viability of sugarcane as a single enterprise and the decision-making and management of sugarcane farms within a whole-farm context in Louisiana. Specific objectives: (1) Identify current and relevant production and farm management issues and problems facing Louisiana sugarcane producers. (2) Develop and publish a representative set of annual projected costs and returns estimates for the production of sugarcane in Louisiana. (3) Evaluate the economic impact of important agronomic factors, alternative sugarcane production practices and new production technologies on the production of sugarcane within a single enterprise context. (4) Evaluate the economic impact of various factors which affect the farm-level decision making, resource allocation and resulting economic performance of sugarcane farms within a whole farm context.
Project Methods
Data to accomplish the objectives of this project will be obtained from a variety of sources. Identification of production and farm management issues and problems facing Louisiana sugarcane producers (Objective 1) will be determined by communication with state sugarcane producer groups such as the Sugar Advisory Committee of the Louisiana Farm Bureau Federation and the American Sugar Cane League, as well as by communication with extension personnel, experiment station scientists with sugarcane research responsibilities, and other individuals in the sugar industry. Researchable problems in the area of sugarcane production and general farm management will be formulated with emphasis on the economic dimensions of identified relevant issues. Primary data necessary to develop enterprise cost and returns budgets for various sugarcane production activities in Louisiana (Objective 2) will be obtained through periodic surveys of sugarcane producers on an as needed basis. Representative samples of sugarcane producers in Louisiana will be surveyed, either individually or in groups (panel farms), to obtain input use, tillage practices, and other production practice information related to the production of sugarcane. Enterprise budgets will be developed annually using the Mississippi State Budget Generator (MSBG) microcomputer software package. Evaluation of the economic impact of important agronomic factors, alternative sugarcane production practices and new production technologies on the production of sugarcane within a single enterprise context (Objective 3) will encompass an array of studies related to the particular production and management practices used to produce sugarcane in Louisiana. Evaluation of various factors which affect farm-level decision making on sugarcane production in Louisiana (Objective 4) will analyze the impact of physical, technological, economic, and political factors on the enterprise mix, resource allocation, and economic efficiency and performance of sugarcane farms within a whole farm context. Enterprise budgeting, economic engineering, mathematical programming, and risk analysis procedures will be used to analyze how various factors identified in Objective 1 influence the profitability and mix of crops produced on sugarcane farms, the impact on the resources available to sugarcane farms and how they will be utilized in production, and how these factors will affect the economic returns of sugarcane farms over a period of time.

Progress 10/01/09 to 09/30/14

Outputs
Target Audience: The target audience for this research project is the sugarcane producers in Louisiana. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Results from this project have been disseminated to the target audience both by presentations at meetings as well as published reports. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Accomplishments under this research project have been the development and dissemination of information related to the economics of sugarcane production in Louisiana. Projected production costs have been published each year to serve as planning information for producers. Other economic information related to the value of stubble cane, prorated sugarcane planting costs, the value of prescribed burning and other factors have been developed and disseminated to the state sugarcane industry for the primary purposes of estimating the value and importance of sugarcane to the state's economy and to provide information to sugarcane producers to aid in farm management and decision making.

Publications

  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Allocating Sugarcane Planting Costs in 2014, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 4, pp. 19-20, January 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Michael Deliberto and Brian M. Hilbun, Projected Costs and Returns  Sugarcane, Louisiana, 2014, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, A.E.A. Information Series No. 295 January 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., and Michael Deliberto, 2014 Projected Sugarcane Production Farm Costs and Returns Model, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2014-02, February 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Estimating Sugarcane Production Costs per Pound of Raw Sugar Produced, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 6, pp. 19-20, March 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Deliberto, Michael A., and Michael E. Salassi, Estimated Costs of Precision Grading Sugarcane Field, 2014, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2014-06, March 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Louisiana 2013 Sugarcane Crop Value by Parish, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 8, pp. 19-20, May 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Michael A. Deliberto, John Westra and Kenneth Gravois, Economic Importance of Louisiana Sugarcane Production in 2013, Sugarcane Research Annual Progress Report, LSU Agricultural Center, Sugar Research Station, pp. 1-3, 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., and Michael A. Deliberto, Sugarcane Production Costs in 2013, Sugarcane Research Annual Progress Report, LSU Agricultural Center, Sugar Research Station, pp. 202-203, 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., and Michael A. Deliberto, Determination of Optimal Sugarcane Crop Cycle Length, Sugarcane Research Annual Progress Report, LSU Agricultural Center, Sugar Research Station, pp. 204-205, 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Important Aspects of Sugarcane Crop Leases, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 10, pp. 11-12, July 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., and Michael A. Deliberto, 2014 Louisiana Sugarcane Production Cost Summary, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2014-13, August 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Optimal Sugarcane Farm Size, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 12, pp. 17-18, September 2014.
  • Type: Other Status: Published Year Published: 2014 Citation: Salassi, Michael E., Michael A. Deliberto, Kenneth A. Gravois and Benjamin L. Legendre, Economic Value of Prescribed Burning to the Louisiana Sugarcane Industry, LSU Agricultural Center, Publication No. 3362, September 2014.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Older Stubble Production Decisions, The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 4, pp. 21-22, January 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Estimated Variable Harvest Costs for the 2013 Sugarcane Crop, The Sugar Bulletin, American Sugar Cane League, Vol. 92, No. 1, pp. 15-16, October 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael A. Deliberto, Allocation of Louisiana Sugarcane Planting Costs in 2014 for Sugarcane Planted in 2013, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2013-09, October 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael A. Deliberto, Prorated Allocated Planting Costs of Sugarcane: Plantcane, First-, Second-, and Third-Year Stubble, Crop Year - 2014, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2013-10, October 2013.


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: The target audience for research conducted under this project is sugarcane producers and other entities within the sugarcane industry in Louisiana. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? One graduate student is being mentored through the objectives of this project. How have the results been disseminated to communities of interest? Results from this research project were disseminated to the target communities of interest by a variety of means, which included publication of reports and information items which were distributed by email as well as being put on the LSU AgCenter sugarcane web page for distribution by internet. In addition, several presentations to clientele groups within the state were delivered throughout the year. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Accomplishments included the provision of information and analysis on a variety of factors which directly impact the economics of sugarcane production in Louisiana. This information serves as assistance to the state's sugarcane producers in making farm management and crop production decisions on their commerical farming operations. For sugarcane as a perennial crop, farm decisions regarding the number of years to keep planted sugarcane in production before plowing out stubble and replanting are crucial in maximizing net returns from sugarcane production. Information was provided on the impacts of changes in production costs, changes in expected crop yields for plant cane and stubble crops were evaluated.

Publications

  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Older Stubble Production Decisions, The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 4, pp. 21-22, January 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael Deliberto Projected Costs and Returns Sugarcane, Louisiana, 2013, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, A.E.A. Information Series No. 290 January 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael Deliberto, 2013 Projected Sugarcane Production Farm Costs and Returns Model, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2013-03, February 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Projected Sugarcane Production Costs for 2013, The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 6, pp. 15-16, March 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Farm Financial Measures for Solvency and Liquidity, The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 8, pp. 17-18, May 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Michael A. Deliberto, John Westra and Kenneth Gravois, Economic Importance of Louisiana Sugarcane Production in 2012, Sugarcane Research Annual Progress Report - 2012, Louisiana State University Agricultural Center, pp. 1-3, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael A. Deliberto, Sugarcane Production Costs in 2012, Sugarcane Research Annual Progress Report - 2012, Louisiana State University Agricultural Center, pp. 191-192, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., and Michael A. Deliberto, Determination of Optimal Sugarcane Crop Cycle Length, Sugarcane Research Annual Progress Report - 2012, Louisiana State University Agricultural Center, pp. 193-195, 2013.
  • Type: Other Status: Published Year Published: 2013 Citation: Salassi, Michael E., Potential Gains in Planting Cost Efficiency, The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 11, pp. 17-18, August 2013.


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Research results were published in peer-reviewed journals, departmental reports and sugar industry publications. Presentation of research results were delivered at a variety of sugar industry clientel meetings within Louisiana. PARTICIPANTS: Michael Salassi (PI), Michael Deliberto, Juan Nunes, Kurt Guidry, Matt Fannin, LSU AgCenter. TARGET AUDIENCES: Audiences for this project included sugarcane growers, consultants and agricultural lenders, as well as researcher and extension personnel working in the areas of farm management, production ecnomics and farm policy. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Evaluation of the optimal sugarcane crop cycle length for currently produced sugarcane varieties in Louisiana provided growers with decision rules which can be used to determine how long to keep tracts of sugarcane in production to maximize net economic returns over the entire crop cycle. Estimation of projected production costs as well as the development of spreadsheet-based decision aids provide sugarcane growers with information and tools which can be used to make more informed production decisions, both on a single land tract as well as a whole farm basis. Evaluation of proposed changes in H-2B wage rules provided the state's sugar processing industry with critical information as to how the proposed wage changes would impact their processing cost structure and profitability. Field drainage is a critical issue in sugarcane production in Louisiana, and updated estimates of costs for precision leveling sugarcane fields provided the industry with current costs of performing this critical practice of sugarcane production.

Publications

  • Guidry, Kurt M., J. Matthew Fannin, and Michael Salassi, Economic Impact on Louisiana Agricultural Industries of the Proposed Change to the Wage Methodology for the Temporary Non-Agricultural Employment H-2B Program, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2012-04, March 2012.
  • Salassi, Michael E., 'Budgeting for Sugarcane Fertilizer Costs in 2012,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 7, pp. 19-20, April 2012.
  • Salassi, Michael E., 'Using Farm Financial Efficiency Measures,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 8, pp. 15-16, May 2012.
  • Salassi, Michael E., 'Sugar Market Prospects for 2012/13,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 9, pp. 3-5, June 2012.
  • Deliberto, Michael A., and Michael E. Salassi, Estimated Costs of Precision Grading Sugarcane Fields, 2012, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2012-06, June 2012.
  • Salassi, Michael E., Michael A. Deliberto and Juan Steer Nunes, 'Determining Third Stubble Breakeven Sugar Yields to Economically Optimize Sugarcane Crop Cycle Length,' Journal of the American Society of Sugar Cane Technologists, 32:62-74, 2012.
  • Salassi, Michael E., and Michael Deliberto Projected Costs and Returns: Sugarcane, Louisiana, 2012, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, A.E.A. Information Series No. 282 January 2012.
  • Salassi, Michael E., 'Sugar Demand for FY 2011,' The Sugar Bulletin, American Sugar Cane League, Vol, 90, No. 4, pp. 23-24, January 2012.
  • Salassi, Michael E., and Michael Deliberto, 2012 Sugarcane Crop Cycle Length Evaluation Model, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2012-02, January 2012.
  • Salassi, Michael E., 'Depreciation Expensing for 2011 and 2012 Farm Equipment Purchases,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 5, pp. 15-16, February 2012.
  • Salassi, Michael E., 'Evaluating Economics Returns From Older Stubble,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 6, pp. 15-16, March 2012.
  • Salassi, Michael E., 'Sugarcane At-Planting Weed Control Costs in 2012,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 10, pp. 19-20, July 2012.
  • Salassi, Michael E., 'Calculating Sugarcane Planting Cost per Acre of Sugarcane Harvested,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 11, pp. 15-16, August 2012.
  • Salassi, Michael E., Michael A. Deliberto, John Westra and Kenneth Gravois, 'Economic Importance of Louisiana Sugarcane Production in 2011,' Sugarcane Research: Annual Progress Report, 2011, Sugar Research Station, LSU Agricultural Center, pp. 1-3, 2012.
  • Salassi, M. E., and M. A. Deliberto, 'Sugarcane Production Costs in 2011,' Sugarcane Research: Annual Progress Report, 2011, Sugar Research Station, LSU Agricultural Center, pp. 178-179, 2012.
  • Salassi, M. E., and M. A. Deliberto, 'Determination of Optimal Sugarcane Crop Cycle Length,' Sugarcane Research: Annual Progress Report, 2011, Sugar Research Station, LSU Agricultural Center, pp. 180-181, 2012.
  • Griffin, J. L., M. E. Salassi, J. R. Mite, J. M. Boudreaux and M. A. Deliberto, 'Bermudagrass Control Programs in Fallowed Sugarcane Fields: Economics and Effect on the Plant Cane Crop,' Sugarcane Research: Annual Progress Report, 2011, Sugar Research Station, LSU Agricultural Center, pp. 138-140, 2012.
  • Deliberto, Michael A., and Michael E. Salassi, Allocation of Louisiana Sugarcane Planting Costs in 2013 for Sugarcane Planted in 2012, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2012-08, October 2012.
  • Salassi, Michael E., 'Projected 2012 Sugarcane Variable Harvest Costs,' The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 12, pp. 17-18, September 2012.
  • Salassi, Michael E., 'U.S. Sugar Market Going Into the 2012 Harvest,' The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 1, pp. 15-16, October 2012.
  • Salassi, Michael E., 'Allocating 2012 Sugarcane Planting Costs,' The Sugar Bulletin, American Sugar Cane League, Vol. 91, No. 2, pp. 15-16, November 2012.


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: Information from this research project was disseminated in 2011 through one refereed article, 24 other publications, six presentations at professional conferences and 10 presentations at clientele meetings. PARTICIPANTS: Salassi, Michael E. (PI), Deliberto, Michael A., Jose Mite, Juan Steer Nunes, and Paul Darby, LSU AgCenter. TARGET AUDIENCES: The target audiences for results and recommendations developed through this research project include the sugarcane producers and other segments of the Louisiana sugarcane production industry. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Economic research developed estimates of costs per acre associated with fallow sugarcane weed control programs for Louisiana. For bermudagrass and johnsongrass weed control treatments, the herbicides applied were Roundup Original Max at 46 oz per acre, generic glyphosate at 64 oz per acre, DuPont K4 60DG, Trifluralin 4EC at 4 qt per acre, and EPTC at 3.5 pt per acre. Purple nutsedge weed control treatments included Roundup Original Max at 46 oz per acre, generic glyphosate at 64 oz per acre, Permit 75DF at 1 oz per acre, and Yukon 67.5WG at 6 oz per acre. Roundup Original Max at 46 oz per acre applied for perennial weed control was more expensive by $30.40 and $15.20 per acre compared with generic glyphosate treatments applied at 64 oz per acre. Treatments applied with Roundup Original Max had a higher sugarcane fallow cost compared with treatments using generic glyphosate at current fuel, labor and herbicide input prices. Binary and non-binary linear programming determined optimal sugarcane fallow weed control programs for bermudagrass, johnsongrass, and purple nutsedge control. The non-binary LP model selected treatments to achieve desired control of bermudagrass, johnsongrass and purple nutsedge in a minimum cost program. In comparison, the binary LP model selected only one treatment that had minimum fallow field operation and weed control costs while satisfying minimum weed control levels. A study was completed which determined the economically optimal crop cycle length for major sugarcane varieties currently being produced in Louisiana. The specific objectives of the project included the specification of the mathematical acreage relationships which directly impact the production of a vegetatively propagated perennial crop in a whole farm context; the development of producer decision rules to be used to determine breakeven sugar levels on third stubble sugarcane crops for major varieties in the state; the evaluation of the impact of changes in production factors on developed crop replacement rules; and the optimal cycle length for current variety combinations in a whole farm context. Third stubble breakeven yields for the five most important varieties in Louisiana were indicated, that on average, third stubble should be kept in production if its production exceeds 5,063 pounds of sugar per acre. If sugar per acre yields of plantcane, first stubble, and second stubble were averaged, third stubble should be retained only if its production exceeds 74.3% of that average. Changes in production factors such as raw sugar price, diesel price, planting ratio and harvest costs indicated that this 74.3% valve was not significantly affected when the changes were analyzed in a whole farm context. For all scenarios, results showed that production should be kept until third stubble; therefore, the crop cycle length should be five years.

Publications

  • Salassi, Michael E., and Michael Deliberto, 2011 Sugarcane Crop Cycle Length Evaluation Model Users Guide, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2011-03, January 2011.
  • Salassi, Michael E., Optimal Sugarcane Crop Cycle Length Considerations, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 5, pp. 15-16, February 2011.
  • Salassi, Michael E., Costs of Sugarcane Fallow Program Options, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 6, pp. 15-16, March 2011.
  • Salassi, Michael E., Budgeting for Sugarcane Fertilizer Costs in 2011, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 7, pp. 15-16, April 2011.
  • Salassi, Michael E., Costs of Precision Leveling Sugarcane Fields, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 8, pp. 17-18, May 2011.
  • Salassi, Michael E., James L. Griffin, Jose R. Mite Caceres and Michael A. Deliberto, Sugarcane Fallow Weed Control Program Producer Decision Aid, Louisiana State University Agricultural Center, Department of Agricultural Economics and Agribusiness, Staff Report No. 2011-05.
  • Salassi, Michael E., Sugar Market Price Prospects for 2011/2012, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 9, pp. 19-20, June 2011.
  • Griffin, J. L., M. E. Salassi, J. R. Mite, J. M Boudreaux and M A. Deliberto, Efficacy and Economics of Bermudagrass Control Programs in Fallowed Sugarcane Fields, Sugar Journal, pp. 13-14, June 2011.
  • Waguespack Jr., H., W. Jackson, N. Blackwelder, R. Viator and M. Salassi, Improved Efficiency from Mechanical Planter Modifications, Sugar Journal, pp. 25-26, June 2011.
  • Salassi, Michael E., Sugarcane Planting Cost Projections for 2011, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 10, pp. 15-16, July 2011.
  • Griffin, J. L., M. E. Salassi, J. R. Mite, J. M. Boudreaux, and M. A. Deliberto, Efficacy and Economics of EPTC in Fallowed Sugarcane Fields, (abstract) Journal of the American Society of Sugar Cane Technologists, Vol. 31, p. 53, 2011.
  • Waguespack, Jr., H., W. Jackson, N. Blackwelder, R. Viator and M. Salassi, Improved Efficiency from Mechanical Planter Modifications, (abstract) Journal of the American Society of Sugar Cane Technologists, Vol. 31, p. 61, 2011.
  • Salassi, Michael E., Michael A. Deliberto, John Westra and Kenneth Gravois, Economic Importance of Louisiana Sugarcane Production in 2010, LSU Agricultural Center Sugar Station Annual Research Report, 2010, Louisiana State University Agricultural Center, pp. 1-3.
  • Salassi, Michael E., and Michael A. Deliberto Sugarcane Economic Research in 2010, LSU Agricultural Center Sugar Station Annual Research Report, 2010, Louisiana State University Agricultural Center, pp. 157-158.
  • Griffin, J.L., J.M. Boudreaux, M.J. Bauerle and M.E. Salassi, Evaluation of Bermudagrass Control Programs in a Fallowed Sugarcane Field, LSU Agricultural Center Sugar Station Annual Research Report, 2010, Louisiana State University Agricultural Center, pp. 125-126.
  • Salassi, Michael E., Section 179 Depreciation Expensing in 2011, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 11, pp. 15-16, August 2011.
  • Salassi, Michael E., Higher Diesel Prices Will Increase 2011 Sugarcane Variable Harvest Costs, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 12, pp. 15-16, September 2011.
  • Salassi, Michael E., World Raw Sugar Prices Remaining Strong, The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 1, pp. 17-18, October 2011.
  • Salassi, Michael E., Allocating 2011 Sugarcane Planting Costs, The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 2, pp. 15-16, November 2011.
  • Salassi, Michael E., 2011 Year-End Balance Sheet Valuation of Standing Sugarcane Crops, The Sugar Bulletin, American Sugar Cane League, Vol. 90, No. 3, pp. 17-18, December 2011.
  • Deliberto, Michael A., and Michael E. Salassi, Allocation of Louisiana Sugarcane Planting Costs in 2012, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2011-14, December 2011.
  • Caceres, Jose R. Mite, James L. Griffin, Michael E. Salassi, and Joseph M. Boudreaux, Efficacy and Economics of EPTC in Fallowed Sugarcane Fields, Journal of the American Society of Sugar Cane Technologists, Vol. 31, pp. 25-38, 2011.
  • Salassi, Michael E., Cost Basis Valuation of Existing Sugarcane Crops on a Farm Year-End Balance Sheet, The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 4, pp. 17-18, January 2011.
  • Salassi, Michael E., and Michael Deliberto Projected Costs and Returns, Sugarcane, Louisiana, 2011, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, A.E.A. Information Series No. 273 January 2011.
  • Salassi, Michael E., and Michael Deliberto, 2011 Projected Sugarcane Production Farm Costs and Returns Model, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2011-02, January 2011.


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: Projected production costs for sugarcane in Louisiana were developed for all phases of crop production from fallow, planting through harvest for the 2010 crop year. A total of 24 articles and reports were published investigating relevant economic aspects of sugarcane production in Louisiana. A report was published that includes projected sugarcane production costs for typical operations, in addition to a spreadsheet based producer decision tool. A study was conducted evaluating optimal sugarcane crop cycle length, as well as its impact on seedcane expansion. Initial results were presented to clietele groups in meetings. An economic study was completed evaluating variable costs of alternative sugarcane fallow programs utilizing alternative combinations of tillage and herbicide applications. A spreadsheet based producer decision aid was developed for purposes of estimating the variable cost of alternative sugarcane fallow programs. Monthly articles in a sugar trace journal were published which highlighted economics issues relevant to sugarcane production. PARTICIPANTS: Michael E. Salassi, Professor, Department of Agricultural Economics, Louisiana State University Agricultural Center. Michael A. Deliberto, Research Associate, Department of Agricultural Economics, Louisiana State University Agricultural Center. TARGET AUDIENCES: Sugarcane producers in Louisiana PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Presentations, publications and other research output from this project provides sugarcane growers in Louisiana with information to make better informed farm management and production decisions which utilize production inputs more efficiently and result in positive impacts on farm net returns. Projected production cost estimates are used by growers for farm planning purposes for the coming crop year, primarily highlighting the impact of output and input prices changes on projected farm profitability. These cost and return values are used by growers in making sugarcane variety selection and production acreage level decisions. Results from the optimal crop length study can be used by sugarcane growers to make decisions regarding the optimal crop cycle length by sugarcane variety to maximize farm net returns. Research results were able to identify a relatively simple decision rule that sugarcane growers can use to more accurately estimate breakeven sugar yields on third stubble acreage. This decision rule relates breakeven third stubble yields to prior crop year tract specific yields, thereby making the decision rule applicable over farm tracts with potentially highly variable sugar yields. The sugarcane fallow decision aid will allow growers to better plan and select weed control programs on sugarcane fallow land that result in weed control practices which are cost effective while providing the necessary level of control.

Publications

  • Salassi, Michael E., and Michael Deliberto Projected Costs and Returns Sugarcane, Louisiana, 2010, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, A.E.A. Information Series No. 266 January 2010.
  • Salassi, Michael E., and Michael Deliberto, 2010 Projected Sugarcane Production Farm Costs and Returns Model, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-02, January 2010.
  • Viator, Sonny, Wink Alison, Dustin Harrell, Kun-Jun Han, Jim Griffin, Daniel Stephenson, Jerry Whatley, Allen Hogan, Michal Salassi, Michael Deliberto, and Tyler Mark, Production of Sweet Sorghum in Louisiana as a Biofuel Feedstock Crop, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-03, January 2010.
  • Salassi, Michael E., 'Planning for the 2010 Sugarcane Crop Year,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 4, pp. 17-18, January 2010.
  • Salassi, Michael E., 'Evaluating Plowout Decisions on Older Stubble,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 5, pp. 17-18, February 2010.
  • Salassi, Michael E., 'Maximizing Economic Returns From Fertilization,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 6, pp. 15-16, March 2010.
  • Salassi, Michael E., and Michael Deliberto, 2010 Sugarcane Crop Cycle Length Evaluation Model Users Guide, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-05, March 2010.
  • Salassi, Michael E., 'Where Are World Market Raw Sugar Prices Headed,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 7, pp. 13-14, April 2010.
  • Salassi, Michael E., 'Staying Informed on the U.S. Sugar Market' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 8, pp. 15-16, May 2010.
  • Salassi, Michael E., 'Raw Sugar Market Price Prospects for 2010/11,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 9, pp. 15-16, June 2010.
  • Mite, J., J. L. Griffin, J. M. Boudreaux, and M. E. Salassi, 'Eptam in Sugarcane: Incorporation Methods, Weed Control and Economics,' Sugar Journal, June 2010, p. 22.
  • Salassi, Michael E., and Michael A. Deliberto 'Sugarcane Economic Research in 2009,' LSU Agricultural Center Sugar Station Annual Research Report, 2009, Louisiana State University Agricultural Center, pp. 150-151.
  • Salassi, Michael E., Michael A. Deliberto, John Westra and Benjamin L. Legendre, 'Economic Importance of Louisiana Sugarcane Production in 2009,' LSU Agricultural Center Sugar Station Annual Research Report, 2009, Louisiana State University Agricultural Center, pp. 1-3.
  • Salassi, Michael E., 'Impact of Changing Crop Rotation on Seedcane Expansion Acreage,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 10, pp. 9-11, July 2010.
  • Salassi, Michael E., 'Cost Options for At-Planting Weed Control,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 11, pp. 15-16, August 2010.
  • Darby, Paul, Tyler Mark and Michael Salassi, 'Breaking into the Cellulosic Ethanol Market: Capacity and Storage Strategies,' (abstract), Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Vol. 42, No. 3, p. 577, August 2010.
  • Mark, Tyler, Paul Darby and Michael Salassi, 'What Does the Introduction of Energy Crops Mean for the Crop Mix and Cellulosic Ethanol Plant Location in Louisiana,' (abstract), Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Vol. 42, No. 3, pp. 595-596, August 2010.
  • Salassi, Michael E., 'Combine Field Performance Rate, Cane Yield and Variable Harvest Cost,' The Sugar Bulletin, American Sugar Cane League, Vol. 88, No. 12, pp. 15-16, September 2010.
  • Salassi, Michael E., 'Machinery Replacement and Depreciation in 2010,' The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 1, pp. 15-16, October 2010.
  • Deliberto, Michael A., and Michael E. Salassi, Estimated Costs of Precision Grading Sugarcane Fields, 2010, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-09, October 2010.
  • Salassi, Michael E., 'Allocating 2010 Sugarcane Planting Costs,' The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 2, pp. 17-18, November 2010.
  • Salassi, Michael E., 'U.S. Sugar Demand for FY 2010,' The Sugar Bulletin, American Sugar Cane League, Vol. 89, No. 3, pp. 17-18, December 2010.
  • Deliberto, Michael A., and Michael E. Salassi, Allocation of Louisiana Sugarcane Planting Costs in 2010, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-11, December 2010.
  • Deliberto, Michael A., and Michael E. Salassi, Prorated Allocated Planting Costs of Sugarcane: Plantcane, First-, Second-, and Third-Year Stubble, Crop Yiear - 2011, LSU Agricultural Center, Dept. of Agricultural Economics and Agribusiness, Staff Report No. 2010-12, December 2010.