In the production of sugar from sugar cane, what is the maximum land
rent, in dollars per acre, that a farmer/producer can afford to pay
and still make a reasonable profit? (Assume a water cost of $8.00 per
acre-foot).

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Clarification of Question by cel3-ga on 24 Jul 2002 11:06 PDT

To:  Kukhi
Fr:  CEL3

The sugar cane production that I am referring to would be located in
the southwest Arizona/Southeast California area.

In what specific area or geographic location are you thinking of?

In South Louisiana the going rate for cane fields are one fifth of the
crop (share croppers). The question I pose to you is how are you going
to process your cane when it is matured? It will sour if you cannot
process it 2 days after it is cut. Also, the world sugar market is
flooded at the moment.

To:  Kukhi - The cane will be processed into sugar, porbably same day,
at a plant located near the growing areas.  What is the approximate
value of one-fifth of crop?

At a good US price on the 14 market of 21 cents per pound...
Of the 21 cents...12.6 cents goes to the grower...8.4 cents goes to
the processor...
Of the 12.6 cents...2.52 cents goes to the landowner for rent...

To:  Geben 
Re:  Your July 27 Message

What is the 14 market?  Is 13 tons per acre a reasonable sugar cane
yield?  If so, the 2.52 cents fcor land rent equates to apx. $650 per
acre.  Seems high - am I missing something or is this correct?

The US 14 market is the domestic sugar market. 13 tons per acre just
won't do.  We average 35 tons per acre and struggle with low prices. 
At 13 tons per acre your sugar will probably not be close to 200
pounds sugar per ton.  Let's see....at 13 tons / A and with 190 sugar
per ton.... that would be 2470 lbs sugar/Acre