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Sugar, beef production thrives on local farms
By Jesse Hall, The Courier
April 9, 2001
 

Lafourche and Terrebonne parishes remained two of Louisianas most important sources of beef and sugar cane in the year 2000.

According to statistics from the Louisiana State University Agricultural Center, the two parishes combined to raise more than 33,000 acres of sugar cane and just over $10 million worth of beef cattle in 2000.

Lafourche accounted for most of that production, ranking in the top 10 parishes in the state for beef and sugar cane production last year, said Mike Hebert, the LSU Agricultural Centers county agent for Lafourche Parish.

While the price of beef has increased in recent years, the price of sugar has been depressed by foreign competition and other factors, and those changes are reflected in recent production statistics for local farms.

Lafourche farmers produced cattle herds in 2000 with a value of approximately $9.4 million, Hebert said.

Lafourche raised 32,896 acres of sugar cane in 2000, ranking it in the top six sugar-producing parishes in Louisiana, he said.

"Were probably fifth or sixth were close to Vermilion (Parish)," Hebert said.

Iberia Parish was the states largest producer of sugar cane in 2000, raising approximately 63,000 acres.

Terrebonne farmers raised 12,041 acres of sugar cane in 2000, according to the Lafourche-Assumption-Terrebonne office of the U.S. Department of Agricultures Farm Service Agency.

Terrebonnes 2000 sugar cane crop had a total value of $7.7 million, said Barton Joffrion, the LSU Agricultural Centers county agent for Terrebonne Parish.

The depressed price of sugar is reflected in Terrebonnes production statistics for 1996, when Terrebonne farmers raised fewer acres of sugar cane (11,194) with a higher total value ($7.85 million).

Though Agricultural Center officials are still tallying the number of cattle raised in Lafourche Parish in 2000, Hebert said he doesnt expect much change in the number from 1999.

In 1999, 287 farms in Lafourche raised about 24,200 head of cattle with a value of approximately $8 million, he said.

That made Lafourche the sixth-largest beef producer among Louisiana parishes in 1999; Cameron Parish ranked first, raising cattle herds with a total value of $13.4 million.

An increase in beef prices accounted for the fact that the value of the cattle raised in Lafourche increased significantly in 2000 even though the number of cattle raised in the parish didnt, Hebert said.

"Good calves were getting about 50 cents a pound five years ago," he said. "Today theyre getting 90 cents a pound."

Terrebonne farmers raised approximately 4,600 head of cattle with a total value of $667,824 in 2000, Joffrion said.

In 1996, when beef prices were lower, Terrebonne farmers raised approximately 6,300 head of cattle with a total value of $622,842, Joffrion said.

Terrebonne Parish, which also produced $187,000 worth of citrus and $471,000 worth of vegetables in 2000, garners much more revenue from fish and wildlife operations.

Terrebonnes commercial fisheries brought in more than $85 million in revenue in 2000 - more than the total value of its beef, sugar cane, vegetable and citrus production combined, Joffrion said.

 

 

A CHANGING INDUSTRY

Changing prices for beef, sugar cane and other commodities are facts of life for South Louisiana farmers, things over which they usually have little or no control, Hebert said.

Farmers often find themselves struggling to overcome challenges brought on by such uncontrollable factors as changing international trade policies and bad weather, he said.

"If someone is in agriculture, their whole future is at risk. Thats why, if they have a good year, they have to save money. Because they dont know when theyre going to have a bad year," Hebert said. "Its a stressful job and one you really dont have a lot of control over."

Hebert said U.S. farmers in todays global economy have to compete with products from foreign farms that dont have to follow stringent environmental guidelines or pay workers a minimum wage.

Another obstacle for the farmer is the threat of disease to crops or livestock.

Though beef prices have rebounded in recent years, the industry could face a crisis if the current foot-and-mouth disease problem in Europe spreads to the United States, Hebert said.

"If that comes over here, then we wont be able to export our product, and that will just devastate people," he said.

 

 

SUGAR PRICE WOES

Sugar cane farmers are under added stress these days, according to Charlie Melancon, president and general manager of the Thibodaux-based American Sugar League, a trade association that represents the states sugar industry.

Melancon said the price of sugar has been down for more than two years, and the drop threatens to eat up domestic farmers profits.

"Our price is down about 16 percent over the last two to three years, and that 16 percent is where the profit is," he said.

Today, 19 cents per pound is "the top side" of the market for sugar, Melancon said.

"Three years ago is was 22 1/2 cents, and thats just about break-even for the farmer," he said. "Now were losing family farms and sugar mills because were going into our third bad year."

Tom Ellender, owner of Ellender Farmers Inc. and a sugar cane farmer in Lafourche and Terrebonne for 16 years, said it had become harder in recent years for small sugar farms to turn a profit.

The combination of decreasing sugar prices and rising costs for everything from tractors to fertilizer to diesel fuel means that smaller farms have an even harder time making money than bigger ones, he said.

"Yes, some smaller farmers have gone out of business, and more of them lately," he said.

Though improved technology has improved yields, it hasnt been enough to offset increased operating costs and decreasing sugar prices, Ellender said.

"Your costs go up, and the profit per acre or per pound is fixed," he said.

Melancon said the combination of a bad global trade agreement, ill-conceived federal farming legislation and loopholes in import laws had put a squeeze on family sugar farms.

The 1986 Farm Bill, also known as the "Freedom to Farm," or "FAIR" act, let farmers switch crops if they saw the potential for greater profit in another commodity.

Melancon said that legislation hurt Louisiana farmers who have to invest three to five years in a sugar cane crop, and who often farm land that lacks the flexibility to grow crops like corn or beans.

Further hurting sugar cane profits is a loophole in federal law that lets Canadian importers bring sugar into the United States packaged in syrup, he said.

These importers bring the syrup into the United States under the pretense that it is for commercial use, but it is really just a way to conceal sugar that otherwise would be illegal to import, Melancon said.

"Weve got 3,000 to 5,000 tons of sugar coming in from Canada through a loophole," he said. "Its a loophole in customs laws, which are separate from agriculture laws."

 

 

BEEF COMEBACK

Beef, like sugar, is susceptible to dramatic changes in price brought on by events in other parts of the country and the world.

In 1994, Lafourche Parish farmers raised beef cattle with a total value of $9 million, Hebert said.

In 1995, without a significant difference in the number of cattle raised, the total value of cattle raised in the parish dropped to $6.8 million, and the value dropped again the next year before beginning a recovery that continues today.

The reason for the fluctuation in price was "simple economics on a global level," Hebert said.

Unlike sugar, the market for beef is currently on the upswing, though its likely to level off soon, he said.

Hebert said droughts and floods in the United States three or four years ago resulted in a dramatic reduction in the number of cattle being raised and a corresponding increase in price.

Now that the price of beef has rebounded, farmers are restoring their herds to previous levels, and the price of beef should stabilize, he said.