Economic analysis of sugarcane variety selection, crop yield patterns, and ratoon crop plow out decisions

Sugarcane (Saccharum sp. hyb.), a true perennial, is planted with the intention of harvests over several years before replanting a new crop. The success of a sugarcane farming operation depends on the ability to produce good stands of plantcane and maintain suitable stands for ratoon crops. With profit maximization as a primary goal of a farming operation, economic information relative to the expected net returns from sugarcane production over entire crop cycles is needed in making variety selection and ratoon crop harvest/plow out decisions. In this study, net present value methods are used to develop an economic model that can be used to estimate the economic returns from the production of early maturing varieties of sugarcane grown under the restrictive harvest conditions found in Louisiana. Sugarcane yield data by variety and crop-year were obtained from advanced variety trials conducted at 10 locations across Louisiana harvested from 1990 through 1994 for 10 commercial sugarcane varieties. Results of this study suggest that net returns associated with sugarcane varieties vary significantly across varieties. Fallow and planting costs per harvested acre can be lowered by extending the standard crop cycle to harvest of a third ratoon crop. However, minimum third ratoon yields to justify harvest will depend upon the expected third ratoon yield of the current variety planted, as well as expected crop cycle yields of alternative varieties available for planting