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FLORIDA'S
AGRICULTURE LOSSES MAY EXCEED
$375 MILLION
Publication:
Bloomberg
Printed: Thursday, August 26, 2004
Written by: Claudia Carpenter |
With orange-juice sales declining because
of low-carbohydrate diets, the hurricane adds to "an already bad situation''
for growers, he (Dan Gunter, executive director of the Lakeland, Florida-based
Department of Citrus) said.
The department had estimated next year's orange crop, which growers will
begin gathering in October, at 217 million boxes, each weighing 90 pounds,
down from 242 million boxes this year, Gunter said.
Keeping a tariff on Brazil orange juice is "the number-one issue'' facing
growers, (Senator Bill) Nelson said.
FT. MYERS
-- Florida's citrus, dairy and other agricultural businesses suffered
more than $375 million in losses from Hurricane Charley, U.S. Senator
Bill Nelson said.
Nelson and U.S. Representative F. Allen Boyd Jr., both Florida Democrats,
this week surveyed homes, businesses and farms from Punta Gorda to Orlando
that were damaged when Charley hit land Aug. 13 with wind speeds as high
as 145 miles (233 kilometers) per hour.
The western coastal town of Punta Gorda "looks like a bomb was set off,''
Nelson said at a meeting of the Gulf Citrus Growers Association in Fort
Myers last night. "It could take several years for the rebuilding process.''
Wholesale orange-juice prices have soared 22 percent since Aug. 12 on
expectations of damaged crops in Florida, the world's largest grower
of oranges after Brazil. About 95 percent of Florida's production goes
into orange juice processed by companies including PepsiCo Inc.'s Tropicana
Products and Coca-Cola Co.'s Minute Maid.
State agriculture officials estimate lost citrus production of at least
$150 million and lost shrub and other nursery items valued at $100 million
to $200 million, Nelson said. Citrus growers probably will have another
$125 million in damaged equipment and trees, and dairies have had to
destroy 150,000 pounds of milk because of a lack of electricity for refrigeration,
Nelson said.
Seeking Aid
Growers, processors and the state government are preparing to ask for
federal disaster relief, said Dan Gunter, executive director of the Lakeland,
Florida-based Department of Citrus. The department may have to cut its
$60 million budget by as much as $8 million because of the lost citrus
production, Gunter said.
With orange-juice sales declining because of low-carbohydrate diets,
the hurricane adds to "an already bad situation'' for growers, he said.
The department had estimated next year's orange crop, which growers will
begin gathering in October, at 217 million boxes, each weighing 90 pounds,
down from 242 million boxes this year, Gunter said.
Keeping a tariff on Brazil orange juice is ``the number-one issue'' facing
growers, Nelson said.
Rains since the hurricane may cause more fruit losses to growers, said
Andy LaVigne, chief executive officer of Florida Citrus Mutual, a trade
group for about 10,000 orange growers. "Some groves have gotten 10 inches
of rain'' since Charley, he said. ``If anything, it will slow down the
recovery process.''
Total hurricane costs for taxpayers may be $2.5 billion, Nelson said
in an interview."That's for everything -- homes, crops, everything,''
he said.
The federal emergency disaster relief fund currently has $800 million,
Nelson said. A request for $2.5 billion will be made when Congress returns
from August recess on Sept. 7, the day after the Labor Day holiday, Nelson
said.
The Florida Emergency Response Team reported at least 25 deaths from
the hurricane. Charley crossed Florida from the Gulf of Mexico, before
moving into North Carolina and Georgia.
Agriculture losses of $375 million would be the most damage since 1992,
when Hurricane Andrew caused $1.4 billion of losses to Florida farmers,
said Terence McElroy, a spokesman for state Agriculture Commissioner
Charles Bronson. The loss amounts to 5.6 percent of total farm income
in the state last year of $6.7 billion.
Insurers lost about $7.4 billion from Hurricane Charley, according to
the first loss estimate from the industry-backed Insurance Information
Institute. That would make it the costliest storm since Andrew, which
resulted in $15.5 billion of claims. |
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