Noticed yesterday Japan passed law requiring all cars of future to use ethanol blend. Also announced Japanese island that grows sugar cane will be converted 100% from sweetener to ethanol conversion. Only a matter of time until sugar cane becomes main crop in Florida. South Florida land below frost line in great demand as future retirement spot for millions of boomers now needed for sugar cane.Land prices will continue to rise no matter what the rest of the US housing industry does.
U.S. to Invest in Biorefinery Projects By MAYA JACKSON RANDALL February 28, 2007 5:44 p.m.
WASHINGTON -- The U.S. Department of Energy over the next four years plans to invest $385 million in six biorefinery projects that will produce motor fuel from trash, woodchips and agricultural waste products, the department announced Wednesday.
The projects selected are being proposed by Abengoa Bioenergy Corp., a division of Spanish-based Abengoa SA; Bluefire Ethanol Inc.; Iogen Corp.; Alico Inc.; Range Fuels; and Broin Cos.
One of the things you have to love about America is that everyone has the right to an opinion, even those who don't have a clue what they're talking about.
Over the last 3 years the best Alico has been able to earn growing sugar cane is about $125 per acre. With that cash flow, you need land values at less $2,500 per acre just to equal CD rates of return. No matter how optimistic you want to be about FL ethanol, it's tough to see how using land for sugar cane could impact the developmental value of FL land. That is about as silly as saying that vineyards are why CA land is so expensive. In other words, agricultural use of land, is and likely always will be, a residual use of land that has no other higher value use.
Not sure what planet you are living on but there are now 101 ethanol plants operating in the grain belt with another 33 under construction and dozens more being planned. Some of the payouts are running 25% to 30% per annum and the left over mash is being used as cattle feed. With sugar cane being seven times more efficient than corn, Florida will get into ethanol production one way or another.You can take that to the bank. Needs for cleaner emissions and reduced dependance on foriegn oil are not going away in this century at any cost. Hope your 35 year return investments are doing well.
As the USA moves full steam into the Ethanol world over the next ten years my guess is sugar cane will be a more profitable harvest than citrus with frost and cankers or high cholestorol cattle. All just a matter of making the best use of an asset until the ultimate land use (development) is realized. Like making a weed patch into a driving range until the mall is built. Simply suggesting emerging Ethanol market will present new option for south Florida land holders.