Michael A. Deliberto and Brian M. Hilbun

Projected Costs and Returns Crop Enterprise Budgets for Sugarcane Production in Louisiana, 2019 Michael A. Deliberto and Brian M. Hilbun Farm Management Research & Extension Department of Agricultural Economics & Agribusiness Louisiana State University Agricultural Center Agricultural Economics Information Report Series No. 332 - January 2019

January 2019 Agricultural Economics Information Report Series No. 332 PROJECTED COSTS AND RETURNS CROP ENTERPRISE BUDGETS FOR SUGARCANE PRODUCTION IN LOUISIANA, 2019 by Michael A. Deliberto and Brian M. Hilbun Department of Agricultural Economics & Agribusiness Louisiana State University Agricultural Center www.lsuagcenter.com

TABLE OF CONTENTS PAGE Introduction.... 1 Sugarcane Enterprise Budgets 1 Procedure 2 Expected Crop Yields and Market Prices.. 2 Direct Production Costs..... 2 Farm Machinery Costs...... 3 Overhead Costs.. 3 Charges for Management and Risk... 3 Acknowledgements. 3 Internet Access 3 SUGARCANE ENTERPRISE BUDGETS: Table 1.A Projected costs and returns on 1,000 acres of sugarcane, 4-year rotation, harvest through 2 nd stubble, tenant-operator, Louisiana, 2019. 4 1.B Breakeven raw sugar selling prices for selected raw sugar yields, 4-year rotation, harvest through 2 nd stubble, tenant-operator, Louisiana, 2019. 5 1.C Breakeven raw sugar yields for selected raw sugar market prices, 4-year rotation, harvest through 2 nd stubble, tenant-operator, Louisiana, 2019. 5 2.A Projected costs and returns on 1,000 acres of sugarcane, 5-year rotation, harvest through 3 rd stubble, tenant-operator, Louisiana, 2019.. 6 2.B Breakeven raw sugar selling prices for selected raw sugar yields, 5-year rotation, harvest through 3 rd stubble, tenant-operator, Louisiana, 2019. 7 2.C Breakeven raw sugar yields for selected raw sugar market prices, 5-year rotation, harvest through 3 rd stubble, tenant-operator, Louisiana, 2019. 7 3.A Projected costs and returns on 1,000 acres of sugarcane, 6-year rotation, harvest through 4 th stubble, tenant-operator, Louisiana, 2019. 8 3.B Breakeven raw sugar selling prices for selected raw sugar yields, 6-year rotation, harvest through 4 th stubble, tenant-operator, Louisiana, 2019.. 9 3.C Breakeven raw sugar yields for selected raw sugar market prices, 6-year rotation, harvest through 4 th stubble, tenant-operator, Louisiana, 2019.. 9 i

4.A Summary of estimated production costs per acre breaking stubble, fallow activities and seedbed preparation, Louisiana, 2019 10 4.B Estimated resource use and costs per acre for field operations breaking stubble, fallow activies and seedbed preparation, Louisiana, 2019.. 10 5.A Summary of estimated production costs per acre cultured seed cane, Louisiana, 2019..... 11 5.B Estimated resource use and costs per acre for field operations cultured seed cane, Louisiana, 2019.... 11 6.A Summary of estimated production costs per acre wholestalk seed cane harvest, Louisiana, 2019... 12 6.B Estimated resource use and costs per acre for field operations wholestalk seed cane harvest, Louisiana, 2019... 12 7.A Summary of estimated production costs per acre billet seed cane harvest, Louisiana, 2019.... 13 7.B Estimated resource use and costs per acre for field operations billet seed cane harvest, Louisiana, 2019.... 13 8.A Summary of estimated production costs per acre hand planting, 3-rows, wholestalk seed cane, Louisiana, 2019... 14 8.B Estimated resource use and costs per acre for field operations hand planting, 3-rows, wholestalk seed cane, Louisiana, 2019... 14 9.A Summary of estimated production costs per acre mechanical planting, 1-row wholestalk seed cane, Louisiana, 2019... 15 9.B Estimated resource use and costs per acre for field operations mechanical planting, 1-row wholestalk seed cane, Louisiana, 2019.... 15 10.A Summary of estimated production costs per acre billet planting, 1-row billet seed cane, Louisiana, 2019... 16 10.B Estimated resource use and costs per acre for field operations billet planting, 1-row billet seed cane, Louisiana, 2019.. 16 11.A Summary of estimated production costs per acre plant cane field operations, Louisiana, 2019... 17 11.B Estimated resource use and costs per acre for field operations plant cane field operations, Louisiana, 2019...... 18 12.A Summary of estimated production costs per acre first stubble field operations, Louisiana, 2019..... 19 ii

12.B Estimated resource use and costs per acre for field operations first stubble field operations, Louisiana, 2019..... 20 13.A Summary of estimated production costs per acre second and older stubble field operations, Louisiana, 2019.... 21 13.B Estimated resource use and costs per acre for field operations second and older stubble field operations, Louisiana, 2019....... 22 14.A Summary of estimated production costs per acre harvest with 1-row combine harvester, Louisiana, 2019..... 23 14.B Estimated resource use and costs per acre for field operations harvest with 1-row combine harvester, Louisiana, 2019..... 23 15.A Summary of estimated production costs per acre harvest with 2-row wholestalk harvester, Louisiana, 2019..... 24 15.B Estimated resource use and costs per acre for field operations harvest with 2-row wholestalk harvester, Louisiana, 2019..... 24 Appendices..... 25 App. Table 1 Estimated fuel prices, labor wage rates, and interest rates, Louisiana, 2019... 25 2 Tractors, performance rates and costs, Louisiana, 2019... 25 3 Self-propelled machines, performance rates and costs, Louisiana, 2019.... 26 4 Implements, performance rates and costs, Louisiana, 2019...... 26 5 Operating inputs, estimated prices, Louisiana, 2019....... 27 iii

PROJECTED COSTS AND RETURNS CROP ENTERPRISE BUDGETS FOR SUGARCANE PRODUCTION IN LOUISIANA, 2019 by Michael A. Deliberto and Brian M. Hilbun 1 1 Assistant Professor and Research Associate Department of Agricultural Economics and Agribusiness, LSU Agricultural Center, Baton Rouge, LA. Introduction This publication presents estimates of projected costs and returns for sugarcane production in Louisiana for the 2019 crop year. Crop producers are annually faced with critical management decisions that impact the employment of production inputs for various crop enterprises and the combination of crops that will be assembled into a cropping system. The need for reliable information is crucial if sound production decisions are to be made. Planning information plays a pivotal role in the development of annual crop production plans by producers and is important in supporting their efforts to secure the necessary resources to carry out their plans. In addition, information regarding production alternatives and costs and returns for major crop enterprises is needed by extension personnel, researchers, lending institutions, and others involved in agriculture or agribusiness. The purpose of this report is to provide planning information regarding crop production costs and market returns for the 2019 crop year. Sugarcane Crop Enterprise Budgets Sugarcane enterprise budgets for tenantoperators in this report are presented in two budget formats. The first budget format (table A) is a summary of costs and returns for the crop enterprise. The second budget format (table B) provides a table listing the sequence of production operations, indicating the equipment and implements used, month of operation, labor required, machine time required, and materials used. Labor costs, material costs, custom costs, and direct and fixed costs for tractors and equipment are also included for each operation. All costs are summed giving the total cost per operation or practice. Whole farm sugarcane crop enterprise income and expense summary tables presented in this report (Tables 1A, 2A and 3A) present estimates of projected income and expenses of a sugarcane farming operation for 1,000 acres of sugarcane. A mill charge of 39.0% and a crop share land charge of 16.7% (a one-sixth crop share lease after mill charges) are used. Under these assumptions, the distribution of crop proceeds are as follows: 39.0% to the mill, 50.8% to the grower, and 10.2% to the landlord. This report presents 2019 projected costs and returns associated with the various phases of sugarcane production using three row machinery and the production practices followed by most growers in the main sugarcane producing area of the state. Fertilizer and chemical rates were based on recommendations of the LSU Agricultural Center. Only tenant-operator budgets are presented in this report, reflecting the predominant share rent land tenure situation. The landlord does not share in any of the production expenses other than seed cane (in the form of reduced current year income) and provides little assistance in maintaining or improving farm housing, drainage, and roads. Determination of costs associated with sugarcane is not a straight forward process. The uniqueness of the production rotation normally associated with sugarcane coupled with the fact that a portion of the rotation is non-income generating creates some difficulty. Thus, the sugarcane budgets presented in this report reflect costs per acre of land. Returns are based on pounds of raw sugar and gallons of molasses per acre of land harvested. Grower income reflects 1

the usual disposition of raw sugar and molasses between the grower, landlord and mill. Projections of harvest costs are included for both wholestalk and combine harvesters. These harvest cost budgets include the costs of hauling cane by tractor and wagon to a field transfer location to be loaded onto trucks. Costs of hauling harvested sugarcane from farm to mill are excluded. Procedure The general procedure used in this study was to project machinery and other input price data and apply these data to the production practice data for crop enterprises produced in Louisiana. Input prices were obtained from surveys of farm suppliers, machinery dealers, and aerial applicators to provide a basis for estimating 2019 planning budgets. Machinery and other input cost data are presented in the Appendix. The budgets included in this report are categorized by per acre total direct expenses and per acre total fixed expenses for a production season. Within these two broad categories, the various inputs are itemized with their respective costs. Although a particular enterprise budget is presented on a per acre basis, some individual cost items are specified on an hourly or price per unit basis. Direct expenses include such cost items as seed, fertilizer, chemicals, fuel, labor, repairs, and irrigation. Fixed expenses include such items as depreciation and interest on investment which are generally incurred during the production period. Due to the detailed nature of the cost computations, a computerized budget generator procedure was utilized. The Mississippi State Budget Generator Program, developed at Mississippi State University, is utilized by the LSU Agricultural Center in developing these crop enterprise costs and returns budgets. The budget generator provides a standard format for crop and livestock budgets and this computational procedure is widely accepted for estimating projected commodity costs and returns information for upcoming crop year planning purposes. Expected Crop Yields and Market Prices Projected crop enterprise budgets in this report include a calculation of expected market returns for the crop. Expected crop yields and market prices are selected at the beginning of the crop year. Projected crop yields are determined based on recent production history for expected yield given normal weather conditions. Projected market prices are specified as expected marketing year average prices for the commodity, based on harvest time futures price quotes as well as other market information at the beginning of the crop year. No estimate of income from farm program participation or crop insurance is included in this budgets due to the wide variety of farm program and crop insurance choices available to producers. Direct Production Costs Direct or variable production costs were estimated by utilizing updated crop production input price data. Input price data for various crop production inputs were updated by obtaining prices from farm input suppliers in the fall and winter prior to the crop year. Herbicide, fertilizer, and insecticide expenditures for each enterprise budget are based upon the types of chemicals producers generally reported using for that situation. Suggested prices for selected farm inputs and aerial application rates are presented in the appendix. Hired labor was charged at $10.73 per hour for all classes of labor except for harvest machinery and laser leveling operator labor. This wage rate include a basic wage rate plus additional costs for social security, Medicare, and workman s compensation. Operator labor was charged at $15.30 per hour, which includes a basic wage rate plus additional costs for social security, Medicare, and workman s compensation. The higher wage rate was charged for these classes of operators because of the relatively higher skills required to run these types of machinery and the general consensus that these operators are generally twelve month 2

(salaried) employees i.e. foremen. Farm labor may not be generally available on an hourly basis; however, an hourly charge represents a practical method for charging labor to the respective crop enterprises on a per acre basis. Interest on operating capital (short term) was charged at a nominal rate of 6.0% per year. Operating capital was assumed to be borrowed in a manner consistent with timely acquisition of inputs. Fuel price for diesel was $2.50 per gallon. Variable costs for tractors, selfpropelled machinery, and irrigation machinery include the cost of fuel, lubrication, and repair. The intermediate term interest rate was charged at an historical real rate of 6.5%. The reasoning behind the difference in short and intermediate term rates is that longer term nominal rates are highly variable and closely follow the trend set by the rate of inflation. Intermediate term interest rates above the real rate of interest can overstate true interest costs because they overlook the value gained by an asset due solely to inflation. Farm Machinery Costs Machinery cost data were obtained from a sample of machinery dealers. New machinery prices were used to reflect the economic cost of acquiring and maintaining capital assets in current dollar values. Purchase prices for selected power and machinery items included in this report are presented in the appendix. Other data included in the appendix indicate hours of annual use and years of life for each selected machinery item. Fuel consumption, accumulated repair costs, and other machinery performance data are based on ASAE standards. Machinery fixed costs are calculated using the capital recovery method which includes estimates of both annual depreciation and interest on investment. Overhead Costs Overhead costs reflect significant expenses associated with the operation of the entire farm business, but are not necessarily attributable to a specific crop enterprise. Examples of farm overhead costs include tax services, record keeping, utilities, farmstead maintenance, and insurance and property taxes where applicable. General farm overhead costs can vary greatly from farm to farm based on many factors including farm size, land tenure and crop production technology utilized. A single general farm overhead charge is included in each of the three whole farm sugarcane crop enterprise budgets included in this report. Charges for Management and Risk The estimated production expenses included in this report include only direct and fixed expenses associated with the production of the specific crop enterprise. Labor charges included in the enterprise budgets only include charges for field labor. No charges for management or risk as well as other general farm expenses are included. Acknowledgments Several individuals were instrumental in making this report possible. The authors are particularly indebted to Louisiana crop producers and LSU Agricultural Center Extension Service agents and Experiment Station scientists for their cooperation and assistance in providing specific production practice information, as well as farm suppliers and agribusiness firms for supplying input price information. Internet Access This publication, along with projected costs and returns reports for other major agricultural crop commodities produced in Louisiana, as well as other farm management publications, are available on the Internet on the LSU AgCenter web page under the Extension and Outreach section of the Department of Agricultural Economics and Agribusiness web page. These projected costs and returns reports are also available on the LSU Ag Center crop commodities web pages. The web address for the LSU AgCenter is: www.lsuagcenter.com. 3

Table 1A. Projected Costs and Returns on 1,000 Acres of Sugarcane, 4-Year Rotation, Harvest through 2nd stubble, Tenant-Operator, Louisiana, 2019. Dollars Number Total Per Acre Per Pound Per of Dollar Dollar of Sugar Item Acre Acres Value Value 6/ Value 7/ ($/acre) (acres) ($) ($/acre) ($/lb) GROSS VALUE OF PRODUCTION: 1/ Sugar: ($0.260/lb; 5,639,400 lbs.) Plantcane (9,000 lbs/acre) 2,340.00 201.6 471,744 1st stubble (8,370 lbs/acre) 2,176.20 250.0 544,050 2nd stubble (6,930 lbs/acre) 1,081.80 250.0 450,450 Total sugar (8,033 lbs/acre avg.) 1,466,244 1,466.24 0.260 Molasses: ($0.55/gal; 169,182 gallons) -- -- 93,050 TOTAL GROSS VALUE 1,559,294 1,559.29 0.277 MILL CHARGE (Payment in kind): Sugar (39.0%) -- -- 571,835 Molasses -- -- 46,525 Total mill charge 618,360 618.36 0.110 NET RETURNS TO LAND AND PRODUCER 940,934 940.93 0.167 LAND RENT (Payment in kind): Sugar (16.7% after mill charge) -- -- 149,366 Molasses(16.7% after mill charge) -- -- 7,770 Total land charge 157,136 157.14 0.028 PRODUCER INCOME Sugar and Molasses -- -- 783,798 783.80 0.139 ASCL Check Off ($0.14 /ton) -- -- (3,509) Total Income 780,289 780.29 0.138 VARIABLE PRODUCTION EXPENSES: 3/ Fallow Field & Seedbed Preparation 132.59 250.0 33,148 Cultured Seed Cane 531.39 4.1 2,173 Hand Planting 218.77 4.1 895 Wholestalk Seedcane Harvest 75.80 49.2 3,729 Mechanical Planting - Wholestalk 186.64 245.9 45,895 Plant Cane Field Operations 248.99 250.0 62,248 1st Stubble Field Operations 309.40 250.0 77,350 2nd Stubble Field Operations 306.46 250.0 76,615 Harvest for Sugar 4/ 156.03 700.8 109,346 Total variable expenses 411,398 411.40 0.073 RETURNS ABOVE VARIABLE PRODUCITON EXPENSES 368,891 368.89 0.065 FIXED PRODUCTION EXPENSES 5/ 1,000.0 150,889 150.89 0.027 RETURNS ABOVE TOTAL PRODUCTION EXPENESE 218,002 218.00 0.039 FARM OVERHEAD EXPENSES 1,000.0 30,000 30.00 0.005 NET RETURNS TO MANAGEMENT,RISK AND OTHER FARM EXPENSES 188,002 188.00 0.033 1/ Gross value of production is determined using estimated production from 1,000 acres of sugarcane land in a standard 4 year rotation (fallow/plant, plantcane, 1st stubble, and 2nd stubble). Raw sugar is valued at 26.0 cents per pound and molasses at 55.0 cents per gallon. 2/ Harvested sugarcane is assumed to be transloaded to custom truck and trailer. Hauling costs from farm to mill and hauling rebate are excluded. 3/ Each category of production expense listed includes all variable costs associated with the specified operations including cost of inputs, labor, fuel, repairs, and interest on operating capital. 4/ Harvest costs are estimated assuming 100% of sugarcane is harvested with a combine harvester. 5/ Fixed expenses includes depreciation and interest charges on equipment used in production. 6/ Per acre dollar value is calculated by dividing total dollar value by total farm acreage. 7/ Per pound of sugar value is calculated by dividing total dollar value by total sugar production over 1,000 farm acres (5,639,400 pounds of sugar from 25,064 tons of cane). 4

Table 1B. Breakeven Selling Prices for Raw Sugar for Selected Yields and Rental Arrangements, 4-Year Rotation, Harvest through 2nd stubble, Tenant-Operators, Louisiana, 2019. Selected Yield Levels -10% -5% Base +5% +10% ------ ------ ------ ------ ----- Cane yield per harvested acre (tons) 1/ 32.1 33.9 35.7 37.5 39.3 Sugar yield per harvested acre (lbs) 2/ 7229 7631 8033 8434 8836 Sugar yield per rotational acre (lbs) 3/ 5069 5351 5632 5914 6195 ONE-FIFTH LAND SHARE RENT Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 16.2 15.5 15.0 14.4 14.0 Total specified costs 22.3 21.3 20.4 19.7 18.9 Total costs plus overhead 23.5 22.5 21.5 20.7 19.9 ONE-SIXTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 15.5 14.9 14.4 13.9 13.4 Total specified costs 21.4 20.5 19.6 18.9 18.2 Total costs plus overhead 22.5 21.6 20.7 19.9 19.1 ONE-SEVENTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 15.1 14.5 14.0 13.5 13.0 Total specified costs 20.8 19.9 19.1 18.3 17.7 Total costs plus overhead 21.9 21.0 20.1 19.3 18.6 1/ Average farm yield across harvested acreage of plantcane, 1st and 2nd stubble crops. 2/ Average yield in tons per acre multiplied by a 225 CRS. 3/ Assumes a standard land rotation of 25.0% each of plantcane, 1st stubble, 2nd stubble, and fallow/plant. 4/ Breakeven prices are calculated by dividing grower s share of production (48.8% for 1/5 crop share rent, 50.8% for 1/6 crop share rent, and 52.3% for 1/7 crop share rent) into direct costs, total specified costs, and total specified costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar price excludes molasses payment. Mill share assumed to be 39.0%. Table 1C. Breakeven Raw Sugar Yields for Selected Yields and Rental Arrangements, 4-Year Rotation, Harvest through 2nd stubble, Tenant-Operators, Louisiana, 2019. Selected Price Levels -2.0-1.0 Base +1.0 +2.0 ------ ------ ------ ------ ----- Raw sugar price (cents per pound) 24.0 25.0 26.0 27.0 28.0 ONE-FIFTH LAND SHARE RENT Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 5,012 4,812 4,627 4,455 4,296 Total specified costs 6,851 6,577 6,324 6,089 5,872 Total costs plus overhead 7,216 6,928 6,661 6,414 6,185 ONE-SIXTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,815 4,622 4,445 4,280 4,127 Total specified costs 6,581 6,318 6,075 5,850 5,641 Total costs plus overhead 6,932 6,655 6,399 6,162 5,942 ONE-SEVENTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,677 4,490 4,317 4,157 4,009 Total specified costs 6,392 6,137 5,900 5,682 5,479 Total costs plus overhead 6,733 6,464 6,215 5,985 5,771 1/ Breakeven sugar yield per harvested acre to recover direct costs, total specified costs, and total costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar yield excludes molasses payment. 5

Table 2A. Projected Costs and Returns on 1,000 Acres of Sugarcane, 5-Year Rotation, Harvest through 3rd stubble, Tenant-Operator, Louisiana, 2019. Dollars Number Total Per Acre Per Pound Per of Dollar Dollar of Sugar Item Acre Acres Value Value 6/ Value 7/ ($/acre) (acres) ($) ($/acre) ($/lb) GROSS VALUE OF PRODUCTION: 1/ Sugar: ($0.260/lb; 5,801,400 lbs) Plantcane (9,000 lbs/acre) 2,340.00 160.6 375,804 1st stubble (8,370 lbs/acre) 2,176.20 200.0 435,240 2nd stubble (6,930 lbs/acre) 1,801.80 200.0 360,360 3rd stubble (6,480 lbs/acre) 1,684.80 200.0 336,960 Total sugar (7,628 lbs/acre avg.) 1,508,364 1,508.36 0.260 Molasses ($0.55/gal; 174,042 gallons) -- -- 95,723 TOTAL GROSS VALUE 1,604,087 1,604.09 0.277 MILL CHARGE (Payment in kind): Sugar (39.0%) -- -- 588,262 Molasses -- -- 47,862 Total mill charge 636,124 636.12 0.110 NET RETURNS TO LAND AND PRODUCER 967,964 967.96 0.167 LAND RENT (Payment in kind): Sugar (16.7% after mill charge) -- -- 153,657 Molasses(16.7% after mill charge) -- -- 7,993 Total land charge 161,650 161.65 0.028 PRODUCER INCOME Sugar and Molasses -- -- 806,314 806.31 0.139 ASCL Check Off ($0.14 /ton) -- -- (3,610) Total Income 802,704 802.70 0.138 VARIABLE PRODUCTION EXPENSES: 3/ Fallow Field & Seedbed Preparation 132.59 200.0 26,518 Cultured Seed Cane 531.39 3.3 1,754 Hand Planting 218.77 3.3 722 Harvesting Wholestalk Seedcane 75.80 39.4 2,986 Mechanical Planting - Wholestalk 186.64 196.7 36,712 Plant Cane Field Operations 248.99 200.0 49,798 1st Stubble Field Operations 309.40 200.0 61,880 2nd Stubble Field Operations 306.46 200.0 61,292 3rd Stubble Field Operations 306.46 200.0 61,292 Harvest for Sugar 4/ 156.03 760.6 118,676 Total variable expenses 421,631 421.63 0.073 RETURNS ABOVE VARIABLE PRODUCTION EXPENSES 381,073 381.07 0.066 FIXED PRODUCTION EXPENSES 5/ 1000.0 150,957 150.96 0.026 RETURNS ABOVE TOTAL PRODUCTION EXPENSES 230,117 230.12 0.040 FARM OVERHEAD EXPENSES 1000.0 30,000 30.00 0.005 NET RETURNS TO MANAGEMENT, RISK AND OTHER FARM EXPENSES 200,117 200.12 0.034 1/ Gross value of production is determined using estimated production from 1,000 acres of sugarcane land in an extended 5 year rotation (fallow/plant, plantcane, 1st stubble, 2nd stubble and 3rd stubble). Raw sugar is valued at 26.0 cents per pound and molasses at 55.0 cents per gallon. 2/ Harvested sugarcane is assumed to be transloaded to custom truck and trailer. Hauling costs from farm to mill and hauling rebate are excluded. 3/ Each category of production expense listed includes all variable costs associated with the specified operations including cost of inputs, labor, fuel, repairs, and interest on operating capital. 4/ Harvest costs are estimated assuming 100% of sugarcane is harvested with a combine harvester. 5/ Fixed expenses includes depreciation and interest charges on equipment used in production. 6/ Per acre dollar value is calculated by dividing total dollar value by total farm acreage. 7/ Per pound of sugar value is calculated by dividing total dollar value by total sugar production over 1,000 farm acres (5,801,400 pounds of sugar from 25,784 tons of cane). 6

Table 2B. Breakeven Selling Prices for Raw Sugar for Selected Yields and Rental Arrangements, 5-Year Rotation, Harvest through 3rd stubble, Tenant-Operators, Louisiana, 2019. Selected Yield Levels -10% -5% Base +5% +10% ------ ------ ------ ------ ----- Cane yield per harvested acre (tons) 1/ 30.5 32.2 33.9 35.6 37.3 Sugar yield per harvested acre (lbs) 2/ 6865 7246 7628 8009 8390 Sugar yield per rotational acre (lbs) 3/ 5221 5511 5801 6091 6382 ONE-FIFTH LAND SHARE RENT Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 16.1 15.5 14.9 14.4 13.9 Total specified costs 22.0 21.1 20.2 19.5 18.8 Total costs plus overhead 23.2 22.2 21.3 20.5 19.7 ONE-SIXTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 15.4 14.8 14.3 13.8 13.4 Total specified costs 21.1 20.2 19.4 18.7 18.0 Total costs plus overhead 22.3 21.3 20.4 19.7 18.9 ONE-SEVENTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 15.0 14.4 13.9 13.4 13.0 Total specified costs 20.5 19.7 18.9 18.2 17.5 Total costs plus overhead 21.6 20.7 19.9 19.1 18.4 1/ Average farm yield across harvested acreage of plantcane, 1st, 2nd, and 3rd stubble crops. 2/ Average yield in tons per acre multiplied by a 225 CRS. 3/ Assumes a standard land rotation of 20.0% each of plantcane, 1st stubble, 2nd stubble, 3rd stubble, and fallow/plant. 4/ Breakeven prices are calculated by dividing grower s share of production (48.8% for 1/5 crop share rent, 50.8% for 1/6 crop share rent, and 52.3% for 1/7 crop share rent) into direct costs, total specified costs, and total specified costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar price excludes molasses payment. Mill share assumed to be 39.0%. Table 2C. Breakeven Raw Sugar Yields for Selected Yields and Rental Arrangements, 5-Year Rotation, Harvest through 3rd stubble, Tenant-Operators, Louisiana, 2019. Selected Price Levels -2.0-1.0 Base +1.0 +2.0 ------ ------ ------ ------ ----- Raw sugar price (cents per pound) 24.0 25.0 26.0 27.0 28.0 ONE-FIFTH LAND SHARE RENT Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,733 4,544 4,369 4,207 4,057 Total specified costs 6,428 6,171 5,933 5,713 5,509 Total costs plus overhead 6,764 6,494 6,244 6,013 5,798 ONE-SIXTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,547 4,365 4,197 4,042 3,897 Total specified costs 6,175 5,928 5,700 5,489 5,293 Total costs plus overhead 6,498 6,238 5,998 5,776 5,570 ONE-SEVENTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,416 4,240 4,077 3,926 3,785 Total specified costs 5,998 5,758 5,536 5,331 5,141 Total costs plus overhead 6,312 6,059 5,826 5,610 5,410 1/ Breakeven sugar yield per harvested acre to recover direct costs, total specified costs, and total costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar yield excludes molasses payment. 7

Table 3A. Projected Costs and Returns on 1,000 Acres of Sugarcane, 6-Year Rotation, Harvest through 4th stubble, Tenant-Operator, Louisiana, 2019. Dollars Number Total Per Acre Per Pound Per of Dollar Dollar of Sugar Item Acre Acres Value Value 6/ Value 7/ ($/acre) (acres) ($) ($/acre) ($/lb) GROSS VALUE OF PRODUCTION: 1/ Sugar: ($0.260/lb; 5,841,027 lbs.) Plantcane (9,000 lbs/acre) 2,340.00 133.9 313,326 1st stubble (8,370 lbs/acre) 2,176.20 166.7 362,773 2nd stubble (6,930 lbs/acre) 1,801.80 166.7 300,360 3rd stubble (6,480 lbs/acre) 1,684.80 166.7 280,856 4th stubble (6,030 lbs/acre) 1,567.80 166.7 261,352 Total sugar (7,290 lbs/acre avg.) 1,518,667 1,518.67 0.260 Molasses ($0.55/gal, 175,231 gallons) -- -- 96,377 TOTAL GROSS VALUE 1,615,044 1,615.04 0.277 MILL CHARGE (Payment in kind): Sugar (39.0%) -- -- 592,280 Molasses -- -- 48,188 Total mill charge 640,469 640.47 0.110 NET RETURNS TO LAND AND PRODUCER 974,575 974.58 0.167 LAND RENT (Payment in kind): Sugar (16.7% after mill charge) -- -- 154,707 Molasses(16.7% after mill charge) -- -- 8,047 Total land charge 162,754 162.75 0.028 PRODUCER INCOME Sugar and Molasses -- -- 811,821 811.82 0.139 ASCL Check Off ($0.14 /ton) -- -- (3,634) Total Income 808,187 808.19 0.138 VARIABLE PRODUCTION EXPENSES: 3/ Fallow Field & Seedbed Preparation 132.59 166.7 22,103 Cultured Seed Cane 531.39 2.7 1,435 Hand Planting 218.77 2.7 591 Wholestalk Seedcane Harvest 75.80 32.8 2,486 Mechanical Planting - Wholestalk 186.64 164.0 30,609 Plant Cane Field Operations 248.99 166.7 41,507 1st Stubble Field Operations 309.40 166.7 51,577 2nd Stubble Field Operations 306.46 166.7 51,087 3rd Stubble Field Operations 306.46 166.7 51,087 4th Stubble Field Operations 306.46 166.7 51,087 Harvest for Sugar 4/ 156.03 800.7 124,993 Total variable expenses 428,501 428.50 0.073 RETURNS ABOVE VARIABLE PRODUCTION EXPENSES 379,686 379.69 0.065 FIXED PRODUCTION EXPENSES 5/ 1000.0 151,032 151.03 0.026 RETURNS ABOVE TOTAL PRODUCTION EXPENSES 228,654 228.65 0.039 FARM OVERHEAD EXPENSES 1000.0 30,000 30.00 0.005 NET RETURNS TO MANAGEMENT, RISK AND OTHER FARM EXPENSES 198,654 198.65 0.034 1/ Gross value of production is determined using estimated production from 1,000 acres of sugarcane land in an extended 6 year rotation (fallow/plant, plantcane, 1st stubble, 2nd stubble, 3rd stubble and 4th stubble). Raw sugar is valued at 26.0 cents per pound and molasses at 55.0 cents per gallon. 2/ Harvested sugarcane is assumed to be transloaded to custom truck and trailer. Hauling costs from farm to mill and hauling rebate are excluded. 3/ Each category of production expense listed includes all variable costs associated with the specified operations including cost of inputs, labor, fuel, repairs, and interest on operating capital. 4/ Harvest costs are estimated assuming 100% of sugarcane is harvested with a combine harvester. 5/ Fixed expenses includes depreciation and interest charges on equipment used in production. 6/ Per acre dollar value is calculated by dividing total dollar value by total farm acreage. 7/ Per pound of sugar value is calculated by dividing total dollar value by total sugar production over 1,000 farm acres (5,841,027 pounds of sugar from 25,960 tons of cane). 8

Table 3B. Breakeven Selling Prices for Raw Sugar for Selected Yields and Rental Arrangements, 6-Year Rotation, Harvest through 4th stubble, Tenant-Operators, Louisiana, 2019. Selected Yield Levels -10% -5% Base +5% +10% ------ ------ ------ ------ ----- Cane yield per harvested acre (tons) 1/ 29.2 30.8 32.4 34.0 35.6 Sugar yield per harvested acre (lbs) 2/ 6561 6926 7290 7655 8019 Sugar yield per rotational acre (lbs) 3/ 5257 5549 5841 6133 6425 ONE-FIFTH LAND SHARE RENT Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 17.7 16.2 15.0 14.1 13.3 Total specified costs 24.3 22.1 20.3 18.9 17.7 Total costs plus overhead 25.6 23.3 21.4 19.8 18.6 ONE-SIXTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 17.0 15.6 14.4 13.5 12.7 Total specified costs 23.3 21.2 19.5 18.1 17.0 Total costs plus overhead 24.6 22.3 20.5 19.0 17.8 ONE-SEVENTH LAND SHARE RENT: Breakeven price to recover: 4/ ----cents per pound of sugar---- Direct costs 16.5 15.1 14.0 13.1 12.4 Total specified costs 22.7 20.6 19.0 17.6 16.5 Total costs plus overhead 23.9 21.7 20.0 18.5 17.3 1/ Average farm yield across harvested acreage of plantcane, 1st, 2nd, 3rd and 4th stubble crops. 2/ Average yield in tons per acre multiplied by a 225 CRS. 3/ Assumes a standard land rotation of 16.7% each of plantcane, 1st stubble, 2nd stubble, 3rd stubble, 4th stubble and fallow/plant. 4/ Breakeven prices are calculated by dividing grower s share of production (48.8% for 1/5 crop share rent, 50.8% for 1/6 crop share rent, and 52.3% for 1/7 crop share rent) into direct costs, total specified costs, and total specified costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar price excludes molasses payment. Mill share assumed to be 39.0%. Table 3C. Breakeven Raw Sugar Yields for Selected Yields and Rental Arrangements, 6-Year Rotation, Harvest through 4th stubble, Tenant-Operators, Louisiana, 2019. Selected Price Levels -2.0-1.0 Base +1.0 +2.0 ------ ------ ------ ------ ----- Raw sugar price (cents per pound) 24.0 25.0 26.0 27.0 28.0 ONE-FIFTH LAND SHARE RENT Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,570 4,387 4,219 4,062 3,917 Total specified costs 6,181 5,934 5,706 5,494 5,298 Total costs plus overhead 6,501 6,241 6,001 5,779 5,572 ONE-SIXTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,390 4,215 4,053 3,902 3,763 Total specified costs 5,938 5,700 5,481 5,278 5,089 Total costs plus overhead 6,245 5,995 5,765 5,551 5,353 ONE-SEVENTH LAND SHARE RENT: Breakeven yield to recover: 1/ --------pounds of sugar per harvested acre-------- Direct costs 4,264 4,094 3,936 3,791 3,655 Total specified costs 5,767 5,537 5,324 5,127 4,944 Total costs plus overhead 6,066 5,823 5,599 5,392 5,199 1/ Breakeven sugar yield per harvested acre to recover direct costs, total specified costs, and total costs plus overhead. Charges for management, risk and additional farm overhead expenses are excluded. Breakeven sugar yield excludes molasses payment. 9

Table 4.A Estimated costs per acre, Breaking stubble, fallow activities & seedbed preparation, Sugarcane, Louisiana 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES HERBICIDES Roundup Power Max pt 2.94 5.0000 14.70 SERVICE FEE Crop Consultant acre 7.00 1.0000 7.00 LA Hired Labor Tractors hour 10.73 2.7675 29.69 DIESEL FUEL Tractors gal 2.50 21.8864 54.71 REPAIR & MAINTENANCE Implements acre 11.17 1.0000 11.17 Tractors acre 11.52 1.0000 11.52 INTEREST ON OP. CAP. acre 3.80 1.0000 3.80 TOTAL DIRECT EXPENSES 132.59 FIXED EXPENSES Implements acre 16.95 1.0000 16.95 Tractors acre 78.04 1.0000 78.04 TOTAL FIXED EXPENSES 94.99 TOTAL SPECIFIED EXPENSES 227.58 Table 4.B Estimated resource use and costs for field operations, per acre Breaking stubble, fallow activities & seedbed preparation, Sugarcane, Louisiana 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Disk 20 ft MFWD 190 0.100 2.00 Mar 5.98 7.55 1.54 2.30 0.20 2.15 19.52 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Mar 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Chisel Plow 13 ft MFWD 190 0.219 1.00 Mar 6.57 8.30 0.97 1.27 0.21 2.36 19.47 SC Land Plane 15 ft MFWD 150 0.300 2.00 Apr 14.03 16.21 1.32 3.07 0.60 6.44 41.07 SC Chisel Plow 13 ft MFWD 190 0.219 1.00 Apr 6.57 8.30 0.97 1.27 0.21 2.36 19.47 SC Disk 20 ft MFWD 190 0.100 1.00 Apr 2.99 3.78 0.77 1.15 0.10 1.07 9.76 SC Disk 20 ft MFWD 190 0.100 1.00 Apr 2.99 3.78 0.77 1.15 0.10 1.07 9.76 SC 5Row (Marker) 30 ft MFWD 150 0.075 1.00 May 1.75 2.02 0.37 0.47 0.07 0.80 5.41 SC 5Row (Hipper) 30 ft MFWD 150 0.075 2.00 May 3.51 4.05 0.86 1.12 0.15 1.61 11.15 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 May 0.87 0.67 0.13 0.14 0.08 0.86 2.67 Subsoiler 3 shank MFWD 190 0.204 0.50 May 3.06 3.86 0.20 0.56 0.10 1.10 8.78 SC Chisel Plow 23 ft MFWD 190 0.120 0.50 May 1.80 2.27 0.25 0.69 0.06 0.64 5.65 SC 5Row (Hipper) 30 ft MFWD 150 0.075 2.00 May 3.51 4.05 0.86 1.12 0.15 1.61 11.15 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 May 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Boom Sprayer 16 ft MFWD 150 0.120 1.00 Jun 2.81 3.24 0.26 0.31 0.12 1.29 7.91 Roundup Power Max pt 2.5000 2.94 7.35 7.35 SC 5Row (Plow) 30 ft MFWD 150 0.075 1.00 Jul 1.75 2.02 0.69 0.90 0.07 0.80 6.16 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Jul 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Boom Sprayer 16 ft MFWD 150 0.120 1.00 Aug 2.81 3.24 0.26 0.31 0.12 1.29 7.91 Roundup Power Max pt 2.5000 2.94 7.35 7.35 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Aug 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Aug 0.87 0.67 0.13 0.14 0.08 0.86 2.67 Crop Consultant acre 1.00 Sep 1.0000 7.00 7.00 7.00 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 66.23 78.04 11.17 16.95 2.76 29.69 21.70 223.78 INTEREST ON OPERATING CAPITAL 3.80 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 227.58 10

Table 5.A Estimated costs per acre, Cultured seed cane, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES SEED/PLANTS SC Cultured seedcane acre 484.00 1.0000 484.00 LA Hired Labor Self-Propelled hour 10.73 0.3303 3.54 DIESEL FUEL Self-Propelled gal 2.50 2.1021 5.26 REPAIR & MAINTENANCE Self-Propelled acre 8.51 1.0000 8.51 INTEREST ON OP. CAP. acre 30.08 1.0000 30.08 TOTAL DIRECT EXPENSES 531.39 FIXED EXPENSES Self-Propelled acre 15.35 1.0000 15.35 TOTAL FIXED EXPENSES 15.35 TOTAL SPECIFIED EXPENSES 546.74 Table 5.B Estimated resource use and costs for field operations, per acre Cultured seed cane, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Cultured seedcane acre 1.00 Sep 1.0000 484.00 484.00 484.00 SC Loader 2Rw 12 ft 0.300 1.00 Sep 13.77 15.35 0.33 3.54 32.66 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 13.77 15.35 0.00 0.00 0.33 3.54 484.00 516.66 INTEREST ON OPERATING CAPITAL 30.08 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 546.74 11

Table 6.A Estimated costs per acre, Wholestalk seedcane harvest, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES LA OPERATOR LABOR Self-Propelled hour 15.30 0.4268 6.53 LA Hired Labor Tractors hour 10.73 0.6300 6.76 Self-Propelled hour 10.73 0.3303 3.54 DIESEL FUEL Tractors gal 2.50 4.5553 11.39 Self-Propelled gal 2.50 5.2061 13.02 REPAIR & MAINTENANCE Implements acre 0.76 1.0000 0.76 Tractors acre 2.33 1.0000 2.33 Self-Propelled acre 27.18 1.0000 27.18 INTEREST ON OP. CAP. acre 4.29 1.0000 4.29 TOTAL DIRECT EXPENSES 75.80 FIXED EXPENSES Implements acre 1.10 1.0000 1.10 Tractors acre 15.51 1.0000 15.51 Self-Propelled acre 41.52 1.0000 41.52 TOTAL FIXED EXPENSES 58.13 TOTAL SPECIFIED EXPENSES 133.93 Table 6.B Estimated resource use and costs for field operations, per acre Wholestalk seedcane harvest, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Harvester 2Rw 12 ft 0.388 1.00 Sep 26.43 26.17 0.42 6.53 59.13 SC Loader 2Rw 12 ft 0.300 1.00 Sep 13.77 15.35 0.33 3.54 32.66 SC Cane Wagon 10T 10 Ton MFWD 150 0.500 1.00 Sep 12.85 14.84 0.63 0.96 0.55 5.90 35.18 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 53.92 57.03 0.76 1.10 1.38 16.83 0.00 129.64 INTEREST ON OPERATING CAPITAL 4.29 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 133.93 12

Table 7.A Estimated costs per acre, Billet seedcane harvest, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES LA OPERATOR LABOR Self-Propelled hour 15.30 0.7700 11.78 LA Hired Labor Tractors hour 10.73 0.7400 7.94 DIESEL FUEL Tractors gal 2.50 5.4046 13.51 Self-Propelled gal 2.50 8.4000 21.00 REPAIR & MAINTENANCE Implements acre 5.46 1.0000 5.46 Tractors acre 2.78 1.0000 2.78 Self-Propelled acre 29.77 1.0000 29.77 INTEREST ON OP. CAP. acre 5.53 1.0000 5.53 TOTAL DIRECT EXPENSES 97.77 FIXED EXPENSES Implements acre 4.54 1.0000 4.54 Tractors acre 18.48 1.0000 18.48 Self-Propelled acre 38.77 1.0000 38.77 TOTAL FIXED EXPENSES 61.79 TOTAL SPECIFIED EXPENSES 159.56 Table 7.B Estimated resource use and costs for field operations, per acre Billet seedcane harvest, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Billet Harvester 6 ft 0.700 1.00 Sep 50.77 38.77 0.77 11.78 101.32 SC Cane Wgn Billt HD 10Ton MFWD 150 0.600 1.00 Sep 15.42 17.81 5.33 4.40 0.66 7.08 50.04 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 67.06 57.25 5.46 4.54 1.51 19.72 0.00 154.03 INTEREST ON OPERATING CAPITAL 5.53 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 159.56 13

Table 8.A Estimated costs per acre, Hand planting, 1-Row Wholestalk, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES HERBICIDES Sencor DF lb 12.75 1.5000 19.13 Prowl 3.3 EC pt 5.44 7.2000 39.17 LA SC Planting Labor Special Labor acre 25.00 3.0000 75.00 LA Hired Labor Tractors hour 10.73 2.0700 22.20 DIESEL FUEL Tractors gal 2.50 15.5083 38.77 REPAIR & MAINTENANCE Implements acre 15.13 1.0000 15.13 Tractors acre 8.02 1.0000 8.02 INTEREST ON OP. CAP. acre 1.35 1.0000 1.35 TOTAL DIRECT EXPENSES 218.77 FIXED EXPENSES Implements acre 26.77 1.0000 26.77 Tractors acre 53.74 1.0000 53.74 TOTAL FIXED EXPENSES 80.51 TOTAL SPECIFIED EXPENSES 299.28 Table 8.B Estimated resource use and costs for field operations, per acre Hand planting, 1-Row Wholestalk, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Rototiller 18 ft MFWD 190 0.219 1.00 Sep 6.57 8.30 3.52 3.86 0.21 2.36 24.61 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC 5Row (Opener) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.29 0.39 0.07 0.80 5.25 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Cane Planters Aid 6 ft MFWD 150 1.000 1.00 Sep 23.36 26.98 8.44 19.84 1.00 10.73 89.35 LA SC Planting Labor acre 3.00 75.00 75.00 SC 5Row (Cover) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.90 0.33 0.07 0.80 5.80 SC Flat Roller 18 ft MFWD 150 0.190 1.00 Sep 4.44 5.13 0.47 0.50 0.19 2.04 12.58 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Boom Sprayer 16 ft MFWD 150 0.120 1.00 Sep 2.81 3.24 0.26 0.31 0.12 1.29 7.91 Sencor DF lb 1.5000 12.75 19.13 19.13 Prowl 3.3 EC pt 7.2000 5.44 39.17 39.17 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Oct 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Oct 0.87 0.67 0.13 0.14 0.08 0.86 2.67 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 46.79 53.74 15.13 26.77 5.07 97.20 58.30 297.93 INTEREST ON OPERATING CAPITAL 1.35 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 299.28 14

Table 9.A Estimated costs per acre, Mechanical planting, 1-Row Wholestalk, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES HERBICIDES Sencor DF lb 12.75 1.5000 19.13 Prowl 3.3 EC pt 5.44 7.2000 39.17 LA SC Planting Labor Special Labor acre 25.00 2.0000 50.00 LA Hired Labor Tractors hour 10.73 1.7400 18.66 DIESEL FUEL Tractors gal 2.50 12.9604 32.40 REPAIR & MAINTENANCE Implements acre 10.38 1.0000 10.38 Tractors acre 6.68 1.0000 6.68 INTEREST ON OP. CAP. acre 10.22 1.0000 10.22 TOTAL DIRECT EXPENSES 186.64 FIXED EXPENSES Implements acre 15.60 1.0000 15.60 Tractors acre 44.84 1.0000 44.84 TOTAL FIXED EXPENSES 60.44 TOTAL SPECIFIED EXPENSES 247.08 Table 9.B Estimated resource use and costs for field operations, per acre Mechanical planting, 1-Row Wholestalk, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Rototiller 18 ft MFWD 190 0.219 1.00 Sep 6.57 8.30 3.52 3.86 0.21 2.36 24.61 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC 5Row (Opener) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.29 0.39 0.07 0.80 5.25 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Cane Plt-Whlstalk 6 ft MFWD 150 0.670 1.00 Sep 15.65 18.08 3.69 8.67 0.67 7.19 53.28 LA SC Planting Labor acre 2.00 50.00 50.00 SC 5Row (Cover) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.90 0.33 0.07 0.80 5.80 SC Flat Roller 18 ft MFWD 150 0.190 1.00 Sep 4.44 5.13 0.47 0.50 0.19 2.04 12.58 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Boom Sprayer 16 ft MFWD 150 0.120 1.00 Oct 2.81 3.24 0.26 0.31 0.12 1.29 7.91 Sencor DF lb 1.5000 12.75 19.13 19.13 Prowl 3.3 EC pt 7.2000 5.44 39.17 39.17 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Nov 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Nov 0.87 0.67 0.13 0.14 0.08 0.86 2.67 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 39.08 44.84 10.38 15.60 3.74 68.66 58.30 236.86 INTEREST ON OPERATING CAPITAL 10.22 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 247.08 15

Table 10.A Estimated costs per acre, Mechanical planting, 1-Row Billet, Sugarcane, Louisiana, 2019. ITEM UNIT PRICE QUANTITY AMOUNT YOUR FARM DIRECT EXPENSES HERBICIDES Sencor DF lb 12.75 1.5000 19.13 Prowl 3.3 EC pt 5.44 7.2000 39.17 LA SC Planting Labor Special Labor acre 25.00 1.0000 25.00 LA Hired Labor Tractors hour 10.73 1.7400 18.66 DIESEL FUEL Tractors gal 2.50 12.9604 32.40 REPAIR & MAINTENANCE Implements acre 10.38 1.0000 10.38 Tractors acre 6.68 1.0000 6.68 INTEREST ON OP. CAP. acre 8.72 1.0000 8.72 TOTAL DIRECT EXPENSES 160.14 FIXED EXPENSES Implements acre 15.60 1.0000 15.60 Tractors acre 44.84 1.0000 44.84 TOTAL FIXED EXPENSES 60.44 TOTAL SPECIFIED EXPENSES 220.58 Table 10.B Estimated resource use and costs for field operations, per acre Mechanical planting, 1-Row Billet, Sugarcane, Louisiana, 2019. POWER UNIT COST EQUIPMENT COST ALLOC LABOR OPERATING/DURABLE INPUT OPERATION/ SIZE/ POWER UNIT PERF TIMES ----- ----- ---- ----- TOTAL OPERATING INPUT UNIT SIZE RATE OVER MTH DIRECT FIXED DIRECT FIXED HOURS COST AMOUNT PRICE COST COST ----- SC Rototiller 18 ft MFWD 190 0.219 1.00 Sep 6.57 8.30 3.52 3.86 0.21 2.36 24.61 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC 5Row (Opener) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.29 0.39 0.07 0.80 5.25 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Cane Plt-1R Bille 1 row MFWD 150 0.670 1.00 Sep 15.65 18.08 3.69 8.67 0.67 7.19 53.28 LA SC Planting Labor acre 1.00 25.00 25.00 SC 5Row (Cover) 30 ft MFWD 150 0.075 1.00 Sep 1.75 2.02 0.90 0.33 0.07 0.80 5.80 SC Flat Roller 18 ft MFWD 150 0.190 1.00 Sep 4.44 5.13 0.47 0.50 0.19 2.04 12.58 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Sep 0.87 0.67 0.13 0.14 0.08 0.86 2.67 SC Boom Sprayer 16 ft MFWD 150 0.120 1.00 Oct 2.81 3.24 0.26 0.31 0.12 1.29 7.91 Sencor DF lb 1.5000 12.75 19.13 19.13 Prowl 3.3 EC pt 7.2000 5.44 39.17 39.17 SC 5Row (Hipper) 30 ft MFWD 150 0.075 1.00 Nov 1.75 2.02 0.43 0.56 0.07 0.80 5.56 SC Drain Cleaner 6 ft MFWD 75 0.080 1.00 Nov 0.87 0.67 0.13 0.14 0.08 0.86 2.67 ------- ------- ------- ------- ------ ------- ------- -------- TOTALS 39.08 44.84 10.38 15.60 2.74 43.66 58.30 211.86 INTEREST ON OPERATING CAPITAL 8.72 UNALLOCATED LABOR 0.00 TOTAL SPECIFIED COST 220.58 16