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
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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.