O P T I M I S M I N S P I T E O F H L B

INVESTING IN FLORIDA CITRUS

Rob AtchleyGeneral Manager of Citrus Groves, A. Duda and Sons, Inc.

EARLY HLB EXPERIENCE

• Disease was found on the LaBelle property in 2006• Began calendar-based psyllid control program

immediately • Removal of HLB positive trees implemented • Tree removal strategy abandoned after a (final

round) scouting cycle resulted in removal of 19,000 HLB-positive trees

• First attempts at psyllid scouting using yellow sticky cards• Ability to raise new trees in doubt

DESIRE TO REPLANT

• Over 2,000 acres of our LaBelle grove was fallow due to the Canker eradication program

• 55,000 resets also removed under the program• Need to replace the lost acreage and regain

production and efficiencies• Made decision to focus on solid-set replanting• 200-300 acres per year • Solid plantings would enable better tree care and psyllid

control• Planting initiative resulted in roughly 1,000 acres of solid

plantings (between 2007- 2011)

• Raising resets in existing groves doubtful

EARLY PLANTINGS

• Projects began in 2007• Partial blocks resulting from canker arcs

prioritized• Primarily early/mid oranges on Carrizo and

Swingle root stocks• Traditional row spacing• Drill spacing tightened to 8’-9’• Cultural program included additional psyllid

control measures (nowhere near todays levels)• Passive pest scouting through yellow sticky card

only

COKE/PEACE RIVER PRODUCTS/DUDA PROJECT

• Opportunity to fill out and expand the citrus footprint in LaBelle with the stability of long-term pricing support

• Construction began in December 2012• 2,870 net acres in size• Mixture of familiar rootstocks as well as new

selections• US 897, US 812, US 802, US 942, X639

• 50% micro-jet irrigated and 50% seepage irrigation• Focus on increasing planting densities• Built using GPS technology from the beginning

MOVING AHEAD

• Some growers have viewed the Coke offering as not attractive enough to make the investment• Inflation?• Prices too low compared to market potential• Buying and developing land too risky

• Confidence in producing the crop drives risk tolerance• Our experience with post canker plantings are

one of the many things that have given us confidence to move ahead with this opportunity in this growing environment

CHMAS WORK!

• Low psyllid numbers are normal in areas where growers work together with coordinated sprays• Easier when fewer growers control large acreages• More difficult but just as effective in areas with

fragmented ownership• Aerial, low-volume, and air-blast sprays all can

contribute• The CHMA you are located in is just as important

to your success as the soil and irrigation sources you have to work with

POST CANKER REPLANTING PERFORMANCE

• Not every planting has been successful• We learn more with every generation• Early yields at sustainable levels have been the

norm• Increasing planting densities is driving early

yields• Enhanced nutrition (foliar and granular) is

resulting in harvestable yields as much as a year earlier than expected• HLB detection is at manageable levels

NEW GROVE DESIGN ADVANTAGES

• New groves have allowed higher planting densities• Traditional densities of 125-150 trees per acre

replaced with 227 to 303 trees per acre• Opportunity to match rootstock to soil type• GPS used for all swale and tree row layout

• Immediate money savings• All lines within the grove are perfectly square• Enables the use of auto-steer technology to improve

efficiencies and application quality

• Tighter design tolerances result in better ability to manage moisture

NEW TOOLS IN THE TOOLBOX

• Research will bring us new options to fight HLB• Resistant varieties and rootstocks• New chemistries• Systemic products to fight psyllid or the pathogen• Compounds that repel the psyllid• Chemistry with new SAR effects

• We must combat the disease using conventional methods while researchers look for options• HLB is a very old disease that has touched many areas of

the planet• We should be realistic about the time needed for

research

BECOME A FARMER

• Grow citrus as intensively as any other specialty crop• Intensive nutritional program and evaluation• Map soil zones to enable precision treatment of problem

areas• Utilize targeted soil and leaf sampling to evaluate programs• If the trees are telling you something LISTEN and adjust• BUY QUALITY MATERIALS!!!!

• Dedicated scouting commitment• Use active methods to seek out and identify pests• When pests are identified respond rapidly

• Everyday is Monday morning for our trees

BECOME A FARMER

• Give irrigation the focus it deserves• Water quality and quantity • Frequency

• Remember you are not an accountant and your accountant should not be your farmer!• A common denominator with people experiencing

success in the current environment is their willingness to spend money on their trees.

MANAGE TREE STRESS

• Managing stress on trees is critical to surviving with HLB• Stresses beyond your control:• Extreme temperatures• Drought conditions

• Stresses within your control:• Nutritional levels• Pest pressures• Soil moisture levels

• We can improve our situation greatly by eliminating stresses on our trees

WHY SHOULD WE PLANT

• Industry preservation• Production down to 104 million boxes• 2014-2015 season??• We need to maintain a critical mass

• 50,000 acres of new plantings with an average yield of 500 boxes/acre would have moved this years crop to only 129 million boxes!

• Time is a luxury we don’t have!