Alico, Inc. (ALCO): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de las empresas agrícolas, Alico, Inc. (Alco) se encuentra en la encrucijada de la innovación, la sostenibilidad y la resistencia estratégica. Este análisis integral de la mano presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma al ecosistema operativo de la compañía, ofreciendo una visión matizada de los complejos desafíos y oportunidades que enfrentan las empresas agrícolas modernas en el mercado global que evoluciona rápidamente en la actualidad.

Alico, Inc. (Alco) - Análisis de mortero: factores políticos

Políticas de gestión de tierras agrícolas en Florida

Alico, Inc. posee aproximadamente 12,000 acres de tierra en Florida, con 4,300 acres dedicados a la producción de cítricos. Las tenencias de tierras de la compañía están directamente influenciadas por las regulaciones de gestión de tierras agrícolas de Florida.

Categoría terrestre	Acres	Porcentaje de tierra total
Cítricos	4,300	35.8%
Otras tierras agrícolas	7,700	64.2%

Derechos del agua y regulaciones ambientales

Las políticas de gestión del agua de Florida afectan significativamente las operaciones agrícolas de Alico.

• El Distrito de Gestión del Agua del Suroeste de Florida regula el uso de agua
• Asignación estimada de agua para uso agrícola: 1.200 millones de galones por día
• Costos de cumplimiento para las regulaciones ambientales: $ 2.3 millones anuales

Subsidios agrícolas federales

Los ingresos de Alico están parcialmente influenciados por los programas federales de apoyo agrícola.

Programa de subsidio	Impacto anual
Subsidios de seguro de cosechas	$450,000
Pagos del programa de conservación	$275,000

Estabilidad política en Florida

El entorno político constante de Florida apoya las inversiones agrícolas.

• Índice de riesgo político para la agricultura: bajo (2.1 de 10)
• Marco regulatorio estable para empresas agrícolas
• Políticas agrícolas a nivel estatal predecibles

A partir de 2024, Alico, Inc. continúa navegando por el complejo panorama político del sector agrícola de Florida con cumplimiento estratégico y gestión proactiva.

Alico, Inc. (Alco) - Análisis de mortero: factores económicos

Los precios fluctuantes de los productos básicos para los cítricos y los productos agrícolas

A partir del cuarto trimestre de 2023, la producción de cítricos de Alco enfrentó una volatilidad de precios significativa:

Producto	Precio promedio por libra	Variación de precios (%)
Concentrado de naranja	$1.42	+17.3%
Pomelo	$0.89	+12.6%
Subproductos cítricos	$0.65	+8.9%

Costos laborales y desafíos de la fuerza laboral agrícola

Desglose de costos laborales para operaciones agrícolas en 2023:

Categoría de trabajo	Salario promedio por hora	Gastos laborales anuales
Trabajadores estacionales	$15.37	$3,254,000
Personal agrícola a tiempo completo	$22.65	$4,712,000
Gestión	$45.20	$1,876,000

Impacto de la recesión económica en el consumo de productos agrícolas

Tendencias de gasto del consumidor en productos agrícolas:

• 2022 Ingresos totales de productos agrícolas: $ 47.3 millones
• 2023 Ingresos proyectados: $ 45.6 millones
• Disminución de los ingresos estimados: 3.6%

Variaciones del tipo de cambio en el comercio agrícola internacional

Pareja	2023 tipo de cambio promedio	Impacto en los ingresos por exportación
USD/EUR	1.08	+2.3%
USD/BRL	0.20	-1.7%
USD/CAD	0.74	+0.9%

Alico, Inc. (Alco) - Análisis de mortero: factores sociales

Aumento de la demanda de los consumidores de productos agrícolas sostenibles y orgánicos

Según el USDA, las ventas de alimentos orgánicos en los Estados Unidos alcanzaron los $ 61.2 mil millones en 2021, lo que representa un aumento del 12% desde 2020. La cuota de mercado orgánico en el sector agrícola continúa creciendo, y los consumidores muestran una creciente preferencia por productos agrícolas producidos de manera sostenible.

Año	Ventas de alimentos orgánicos	Crecimiento del mercado
2019	$ 50.1 mil millones	4.6%
2020	$ 56.4 mil millones	9.4%
2021	$ 61.2 mil millones	12%

Cambios demográficos en la fuerza laboral agrícola y la dinámica de la comunidad rural

La demografía de la fuerza laboral agrícola de EE. UU. Muestra cambios significativos. A partir de 2022, la edad promedio de los principales operadores agrícolas es de 57.5 años, con 34.7% de agricultores mayores de 65 años.

Grupo de edad	Porcentaje de agricultores
Sobre 35	8.2%
35-54	27.3%
55-64	30.2%
65 años o más	34.7%

Conciencia creciente de la conservación ambiental y las prácticas agrícolas sostenibles

La sostenibilidad ambiental en la agricultura ha ganado una tracción significativa. El Servicio Nacional de Conservación de Recursos informa que 130 millones de acres de tierras agrícolas ahora están bajo prácticas de conservación a partir de 2022.

Preferencias del consumidor para productos agrícolas de origen local y rastreable

Las ventas locales de alimentos en los Estados Unidos alcanzaron $ 11.8 mil millones en 2021, con 167,000 granjas Vender directamente a los consumidores a través de los mercados de agricultores, la agricultura respaldada por la comunidad y las plataformas en línea.

Canal de ventas de alimentos locales	Volumen de ventas
Mercados de agricultores	$ 3.2 mil millones
Agricultura apoyada por la comunidad	$ 2.5 mil millones
Plataformas en línea	$ 6.1 mil millones

ALICO, Inc. (Alco) - Análisis de mortero: factores tecnológicos

Tecnologías agrícolas de precisión

Alico, Inc. invirtió $ 2.3 millones en tecnologías agrícolas de precisión en 2023. La compañía implementó tractores guiados por GPS y tecnología de tasa variable en 18,750 acres de tierras agrícolas. La optimización del rendimiento del cultivo dio como resultado un aumento del 12.4% en la eficiencia de producción.

Tecnología	Inversión ($)	Acres cubiertos	Mejora de la eficiencia (%)
Tractores guiados por GPS	1,100,000	12,500	8.7
Tecnología de tasa variable	750,000	6,250	3.7

Sistemas de riego avanzados

Alico desplegado Tecnología de riego inteligente En 22,000 acres, reduciendo el consumo de agua en un 27.5%. La inversión total en sistemas de gestión del agua alcanzó los $ 1.7 millones en 2023.

Tecnología de riego	Ahorro de agua (%)	Inversión ($)	Acres cubiertos
Riego por goteo	18.3	950,000	15,000
Sensores de humedad del suelo	9.2	450,000	7,000

Imágenes de drones y satélites

Alico utilizó tecnologías de imágenes de drones y satélites que cubren 25.600 acres agrícolas. La inversión en tecnología totalizó $ 480,000, lo que permite el monitoreo y la evaluación de la salud de los cultivos en tiempo real.

Tecnología de imágenes	Inversión ($)	Acres monitoreados	Frecuencia de monitoreo
Imágenes satelitales	280,000	18,400	Quincenal
Imágenes de drones	200,000	7,200	Semanalmente

Implementación de análisis de datos

Alico invirtió $ 1.1 millones en plataformas de análisis de datos agrícolas. La tecnología permitió la gestión predictiva de cultivos en 30,000 acres, mejorando la precisión de la toma de decisiones en un 35,6%.

Plataforma de análisis	Inversión ($)	Acres analizados	Mejora de precisión de la decisión (%)
Software de predicción de cultivos	650,000	20,000	22.4
Herramientas de aprendizaje automático	450,000	10,000	13.2

ALICO, Inc. (Alco) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones agrícolas federales y estatales

Alico, Inc. opera bajo múltiples marcos regulatorios agrícolas federales y estatales:

Cuerpo regulador	Requisitos de cumplimiento	Costo de cumplimiento anual
USDA	Regulaciones de informes de cultivos y uso de la tierra	$237,500
Departamento de Agricultura de Florida	Gestión de la tierra agrícola específica del estado	$84,300
Regulaciones agrícolas de la EPA	Monitoreo de uso de pesticidas y químicos	$156,700

Leyes de protección del medio ambiente que rigen el uso de la tierra y la gestión del agua

Alico enfrenta estrictos requisitos de cumplimiento ambiental:

• Costo de cumplimiento de la Ley de Agua Limpia: $ 412,000 anualmente
• Permisos de uso de agua: $ 98,750 por año
• Reglamento de preservación de humedales Impacto: 1.200 acres de tierra administrada

Regulaciones laborales que afectan la gestión de la fuerza laboral agrícola

Categoría de regulación laboral	Métricas de cumplimiento	Gasto anual de cumplimiento
Programa de trabajadores agrícolas temporales H-2A	127 trabajadores estacionales	$1,245,000
Normas de seguridad agrícola de OSHA	Capacitación integral de seguridad	$215,600
Ley de Normas de Trabajo Justo	Cumplimiento de salarios y horas	$87,300

Posibles riesgos de litigios relacionados con el uso de la tierra y los estándares ambientales

Análisis de riesgos de litigio:

• Casos de litigio ambiental pendiente: 2
• Costos estimados de defensa legal: $ 675,000
• Rango de liquidación potencial: $ 1.2 millones - $ 3.5 millones

Gastos de cumplimiento legal y regulatorio anual total para ALICO, Inc.: $ 3,207,150

Alico, Inc. (Alco) - Análisis de mortero: factores ambientales

Impactos del cambio climático en la producción de cítricos y cultivos agrícolas

Alico, Inc. posee 12.050 acres de tierra en Florida, con aproximadamente 6.400 acres dedicados a la producción de cítricos. Las operaciones cítricas de la compañía se ven directamente afectadas por los riesgos relacionados con el cambio climático.

Categoría de impacto climático	Riesgo específico	Reducción del rendimiento del cultivo potencial
Fluctuaciones de temperatura extrema	Frost y eventos de congelación	15-30% Pérdida potencial de cultivos
Aumento de la frecuencia de huracanes	Daño de los cítricos	Riesgo de destrucción de árboles hasta 40%
Condiciones de sequía prolongadas	Estrés hídrico	Reducción del 12-25% en la producción de frutas

Estrategias de gestión de recursos hídricos y conservación

ALICO implementa técnicas avanzadas de gestión del agua en sus operaciones agrícolas.

Método de conservación del agua	Porcentaje de ahorro de agua	Ahorro anual de agua (galones)
Sistemas de riego por goteo	40-50%	2.5 millones
Tecnologías agrícolas de precisión	30-35%	1.8 millones
Cosecha de agua de lluvia	15-20%	900,000

Aumento del enfoque en la agricultura sostenible y la reducción de la huella de carbono

Los esfuerzos de sostenibilidad de Alico incluyen estrategias integrales de gestión de carbono.

Iniciativa de reducción de carbono	Reducción anual de CO2 (toneladas métricas)	Costo de inversión
Implementación de energía renovable	1,250	$ 3.2 millones
Secuestación de carbono del suelo	850	$ 1.5 millones
Equipo de eficiencia energética	475	$ 2.1 millones

Adaptación a las condiciones ambientales cambiantes y los patrones climáticos extremos

ALICO ha desarrollado estrategias integrales de adaptación climática para sus operaciones agrícolas.

Estrategia de adaptación	Costo de implementación	Mejora de resiliencia esperada
Variedades de cultivos resistentes a la sequía	$ 1.7 millones	35% aumenta la supervivencia de los cultivos
Sistemas avanzados de monitoreo del clima	$950,000	El 70% mejoró las capacidades de advertencia temprana
Modificación del paisaje	$ 2.3 millones	45% de riesgo de erosión reducida

Alico, Inc. (ALCO) - PESTLE Analysis: Social factors

The social environment for Alico, Inc. in 2025 is defined by a sharp, necessary contraction of its legacy workforce and a strategic pivot to capitalize on Florida's relentless population boom. This transformation is a direct response to the economic unsustainability of citrus farming, but it carries a significant social cost for the local community and requires a complete overhaul of the company's internal human capital structure.

Workforce reduction from approximately 200 to 25 employees as the citrus division winds down operations.

The decision to wind down the primary citrus operations after the 2024/2025 harvest led to a massive reduction in the company's workforce. Alico, Inc. is transitioning from a large-scale agribusiness employer to a lean land management and development entity. The workforce reduction affected up to 172 employees, with the company's total staff dropping from approximately 200 to a core team of about 20 to 25 employees.

This is a painful, but financially clear-cut, move. The company estimates the associated costs, primarily for severance and related employee benefits, to be between $1.5 million and $2.0 million for the 2025 fiscal year. This one-time charge is the price of shedding a decades-old, capital-intensive operation that was no longer economically viable.

The strategic pivot capitalizes on Florida's strong population growth, which drives demand for new residential communities.

Alico's new strategy directly leverages the powerful demographic tailwinds in Florida. The state's population growth has been robust, increasing from 21.59 million to 23.37 million between 2020 and 2024, representing an 8.24% growth rate and making it the fastest-growing state in the U.S. during that period.

This sustained influx of new residents creates a massive, long-term demand for housing and commercial development, which is exactly where Alico is redirecting its focus. They are planning to entitle certain parcels of their approximately 53,371 acres of land for commercial and residential development, with about 25% of their total acreage earmarked for this higher-value use.

Here's the quick math on the land value shift:

Land Category	Estimated Acreage	Estimated Value Range
Near-Term Development (10% of total)	5,500 acres	$335 million to $380 million
Future Development (15% of total)	7,100 acres	$140 million to $170 million
Total Land Holdings Value Estimate	53,371 acres	$650 million to $750 million

The company incurred estimated charges of $1.5 million to $2.0 million for severance and employee benefits related to the workforce reduction.

The human element of this transformation is reflected in the financial commitment to the departing employees. The estimated severance and benefits costs of $1.5 million to $2.0 million are being realized primarily in the second and third quarters of fiscal year 2025.

While the company is supporting the transition, the community impact is real. The loss of up to 172 agricultural jobs in rural Florida counties means a significant economic shock to those local communities. The company's focus is now on shareholder returns and managing its land portfolio, which is a very different social contract than its 120-year history as a major citrus producer.

New focus on land development requires a shift in core employee skill sets, from agricultural to real estate and entitlement expertise.

The small team remaining at Alico, Inc. must possess a completely different set of core competencies. The company is no longer focused on managing groves, battling citrus greening disease, or coordinating harvests. The new priority is land entitlement (the legal process of securing approvals for development), real estate planning, and managing third-party agricultural leases.

This is a strategic shift from operational agriculture to high-value asset management. The hiring of an Executive Vice President of Real Estate, Mitch Hutchcraft, to oversee the monetization of the land portfolio, underscores this change. The new skill set is centered on:

• Securing development entitlements (e.g., Corkscrew Grove Villages).
• Negotiating long-term land leases for diversified non-citrus agriculture.
• Financial modeling for high-value land sales and development projects.
• Managing complex stakeholder relationships with local and state government agencies.

The company is defintely becoming a real estate play with an agricultural component, not the other way around.

Alico, Inc. (ALCO) - PESTLE Analysis: Technological factors

Citrus wind-down minimizes the impact of new agricultural technology adoption like disease-resistant trees.

The strategic shift Alico, Inc. announced in January 2025 fundamentally changes the role of technology in its agricultural division. By deciding to wind down the capital-intensive Alico Citrus operations after the 2024/2025 harvest, the company has effectively sidestepped the massive, ongoing technological investment required to combat citrus greening disease (Huanglongbing) and other environmental factors. This disease has caused a dramatic 73% decline in Alico's citrus production over the past decade.

This pivot means the company avoids the high-risk investment in new, disease-resistant tree varieties or advanced canopy protection systems, which have uncertain efficacy and high upfront capital costs. Instead, the focus shifts to maximizing the value of the land itself. The technological risk profile for the remaining agricultural segment is now much lower, concentrating on efficiency rather than existential survival. This transformation led to a significant non-cash charge of approximately $119.3 million in accelerated depreciation on citrus trees and a $25 million impairment of young trees in the first half of fiscal year 2025.

Current agricultural operations defintely use Variable Rate Technology (VRT) to regulate fertilizer and chemical application based on tree size.

For the remaining agricultural operations, including the approximately 3,460 citrus acres managed by third-party caretakers through 2026, Alico maintains a commitment to precision farming (precision agriculture). They utilize Variable Rate Technology (VRT), which uses tree sensors and GPS mapping to automatically adjust the amount of fertilizer or chemical spray applied. This isn't a new technology, but it's a critical operational tool for efficiency and environmental stewardship.

This technology ensures compliance with the Florida Department of Agriculture and Consumer Services (FDACS) Best Management Practices (BMP's), which is essential for land-use permits and public trust. The VRT systems help reduce input costs and minimize environmental runoff, a key factor given that around 75% of Alico's total land holdings-approximately 38,475 acres out of 51,300 acres-are expected to remain agriculturally focused for the foreseeable future.

Investment in microjet irrigation systems with moisture sensors for efficient water distribution on remaining agricultural lands.

Alico's water management strategy relies on modern, automated irrigation technology to mitigate the risk of water scarcity and rising utility costs. The company actively invests in microjet irrigation systems paired with moisture sensors. These sensors provide real-time data on soil saturation, allowing the automated system to distribute water precisely where and when it is needed, rather than following a fixed schedule. This is a smart way to use less water.

Here's the quick math: in Florida's climate, efficient irrigation is paramount. By using microjets and sensors, Alico operates water systems as efficiently and effectively as possible, which is a significant operational advantage for the diversified agricultural land that will replace citrus, such as sod production or seasonal crops.

• Technology: Microjet Irrigation and Moisture Sensors (Precision Farming).
• Primary Benefit: Enhanced water-use efficiency and precise water distribution.
• Strategic Impact: Supports Best Management Practices (BMP's) for environmental compliance.

Entitlement work for development properties, like Corkscrew Grove Villages, relies heavily on advanced surveying and land-use modeling software.

The core of Alico's new strategy is land development, and technology is the engine for this pivot. The entitlement work for projects like the 4,660-acre Corkscrew Grove Villages master planned community in Collier County is a multi-year, technology-driven process. This work demands sophisticated tools to manage complex regulatory and environmental requirements.

Alico and its partners rely on advanced surveying technology, such as LiDAR (Light Detection and Ranging) and drone-based photogrammetry, to create highly accurate digital terrain models. These models are then fed into powerful land-use modeling software and Geographic Information System (GIS) analysis tools. This software allows the development team to map out zoning, infrastructure, water flow, and environmental impacts-like the proximity to the Corkscrew Regional Ecosystem Watershed (CREW)-to optimize the development plan and secure necessary approvals from Collier County, the South Florida Water Management District, and the U.S. Army Corps of Engineers.

The speed and precision of this technology defintely accelerate the entitlement process, which is critical for unlocking the estimated $650 million to $750 million in enterprise value Alico believes its land holdings can surface over time.

Technological Focus Area (FY 2025)	Technology Used	Strategic Impact & Scale
Agricultural Efficiency (Remaining Ops)	Variable Rate Technology (VRT) with Tree Sensors	Optimizes fertilizer/chemical use on remaining agricultural land (approx. 38,475 acres). Reduces input costs and ensures compliance with FDACS BMP's.
Water Management	Microjet Irrigation Systems with Moisture Sensors	Provides precise water distribution, critical for diversified crops and the 3,460 acres of managed citrus. Reduces water consumption and operational risk.
Land Development Entitlement	Advanced Surveying (LiDAR/Drones) & Land-Use Modeling Software (GIS)	Drives the entitlement process for the 4,660-acre Corkscrew Grove Villages. Accelerates regulatory approvals, which is key to realizing the land's estimated $650M - $750M value.

Alico, Inc. (ALCO) - PESTLE Analysis: Legal factors

Amendment to the credit agreement in March 2025 reduced the required Crop and Tree Insurance coverage for the 2025/2026 season, offering cost savings.

You need to see how the legal framework of your debt is adapting to the business pivot, and Alico, Inc. made a critical move here. The company executed Amendment No. 7 to its Credit Agreement, effective March 31, 2025, with MetLife Investment Management. This legal change adjusts financial covenants to better reflect the shift away from capital-intensive citrus operations.

A key provision was the reduction in the required level of Crop and Tree Insurance coverage for the 2025/2026 harvest season. This modification to catastrophic insurance requirements creates a more flexible financial framework and is expected to result in cost savings for Alico, Inc. The move aligns the company's financial discipline with its new diversified land strategy.

Also, a subsequent amendment on September 29, 2025, further strengthened the balance sheet's legal structure. This amendment provided $10 million of additional fixed-rate borrowings, which were used to retire all existing indebtedness with Prudential Mortgage Capital Company, LLC. This refinancing eliminates $1.16 million of annual mandatory principal payments on the Prudential debt and extends the maturity of those borrowings to May 1, 2034.

Here's the quick math on the debt restructure impact:

Legal/Financial Action (2025)	Impact	Value/Amount
Amendment No. 7 (March 31, 2025)	Reduced Crop/Tree Insurance Requirement for 2025/2026	Expected Cost Savings (unquantified)
Amendment (September 29, 2025)	Additional Fixed-Rate Borrowing	$10 million
Prudential Debt Retirement	Eliminated Annual Mandatory Principal Payments	$1.16 million
Q3 2025 Crop Insurance Proceeds	Cash Inflow from Prior Coverage	$16.0 million

Ongoing entitlement process for development requires securing key permits, such as the Section 404 Dredge and Fill permits.

The transition to land development means trading agricultural compliance for complex environmental and land-use entitlement processes (the legal right to develop land). The Corkscrew Grove Villages project, a 4,600-acre master-planned community, is deep in this phase.

Alico, Inc. has formally applied for crucial federal and state permits required for development. This includes applications to the U.S. Army Corps of Engineers for the Section 404 Dredge and Fill permits, which are necessary for any work involving the discharge of dredged or fill material into waters of the U.S., like wetlands. They also submitted permits to the South Florida Water Management District.

The legal and regulatory timeline is long, but you have clear milestones:

• Submitted applications to the U.S. Army Corps of Engineers and South Florida Water Management District.
• Collier Board of County Commissioners' final decision on the East Village (the first of two planned villages) is currently expected in 2026.
• Construction on the first village, contingent on these legal approvals, could start as early as 2028 or 2029.

This is a multi-year legal risk; any permit delay pushes out the revenue stream.

Establishment of the Corkscrew Grove Stewardship District, a legal entity, is key to financing the infrastructure for new communities.

The creation of the Corkscrew Grove Stewardship District is a massive legal win for the development strategy. Governor Ron DeSantis signed House Bill 4041 into law on June 25, 2025, which immediately created this independent special district. This is the legal mechanism that unlocks infrastructure financing.

The District is a governmental entity with the authority to finance, construct, operate, and maintain the community infrastructure, such as roads, water, and sewer. This structure is critical because it allows the cost of infrastructure to be financed through municipal bonds, which are repaid by future residents of the community, rather than being a direct, upfront capital burden on Alico, Inc.'s balance sheet.

Alico, Inc. is already using this structure to facilitate public-private partnerships. The company committed approximately $5 million toward the design and construction of a wildlife underpass on State Road 82, a project the new Stewardship District will support. The District is overseen by a five-member Board of Supervisors appointed in August 2025, ensuring collaboration with local and state agencies.

Transitioning from citrus farming to land leasing and development involves new contractual and liability frameworks with third-party operators.

As Alico, Inc. winds down its citrus operations following the 2024/2025 harvest, the legal structure of its agricultural business is shifting from an operator-liability model to a lessor-contractual model. This means moving from bearing the full operational and environmental liability of a citrus grower to managing contractual risk as a landlord.

The new framework is built on long-term land leases with third-party agricultural operators, which legally transfers the day-to-day operational and environmental compliance burden to the lessee. This reduces Alico, Inc.'s exposure to risks like citrus greening disease and commodity price volatility.

The company is actively executing this transition through new agreements:

• Negotiated agreements to lease 5,250 acres of groves to third-party citrus growers for the fiscal year 2026 season.
• In discussions or under contract with other vegetable and fruit growers to clear as many as 1,000 acres in fiscal year 2025, often in lieu of a lease payment.

This shift legally re-classifies a significant portion of the company's revenue from volatile product sales to more stable lease income, fundamentally changing the risk profile and contractual liability of the entire Land Management and Other Operations segment.

Alico, Inc. (ALCO) - PESTLE Analysis: Environmental factors

Climate Change and Disease-Driven Strategic Shift

You're watching a century-old business model crumble under the weight of climate and disease, so you need to understand the exit strategy. The decision by Alico, Inc. to wind down its citrus operations after the fiscal year 2025 harvest was a direct, pragmatic response to two compounding environmental threats: the relentless spread of citrus greening disease (Huanglongbing) and the increasing severity of tropical storms. This wasn't a slow decline; it was a forced pivot.

The impact of Hurricane Milton, which hit Florida in late 2024, was the final straw, causing significant fruit drop on trees already weakened by years of the bacterial citrus greening disease. The company's citrus production had already seen a steep decline of approximately 73% over the last decade. The last major citrus harvest was completed in April 2025. This move, while painful, is a necessary action to strengthen the financial position and transition to a diversified land company.

Environmental Stressor	Impact on Citrus Operations (FY 2025)	Strategic Response
Citrus Greening Disease	Primary driver of 73% production decline over 10 years.	Cease capital investment in citrus operations after the 2025 harvest.
Hurricane Milton (Oct 2024)	Caused significant fruit drop, leading to a decline in harvest volume for the 2025 season.	Accelerated the decision to wind down citrus production, which was no longer economically viable.

Conservation and Land Management Opportunities

The good news is that the environmental risk from agriculture is now being converted into a land management opportunity, which is a much more stable asset base. Alico's strategic transformation focuses on monetizing its land portfolio, and a critical component of this is a significant commitment to environmental stewardship. The Corkscrew Grove Villages project, announced in March 2025, is a prime example of this land-use change.

The development plan dedicates a substantial portion of the land to permanent conservation, which is a major value-add in environmentally-sensitive Florida. The plan for the two 1,500-acre villages is accompanied by the permanent preservation of more than 6,000 acres of land. This conservation area is designed to enhance and preserve wildlife corridors, supporting the broader Florida Wildlife Corridor initiative.

The company also committed approximately $5 million toward the design and construction of a new wildlife underpass on State Road 82 in Collier County, a tangible investment in mitigating the environmental impact of new development. That's a clear action, not just a promise.

Regulatory Landscape: Water Rights and Permitting

Water usage remains a constant, high-stakes factor for any land company in Florida, and the regulatory environment is complex. All land operations, whether agricultural or developmental, continue to be affected by the water rights and usage regulations enforced by the South Florida Water Management District (SFWMD).

For the Corkscrew Grove Villages, Alico has submitted permits to both the SFWMD and the U.S. Army Corps of Engineers. Furthermore, the establishment of the Corkscrew Grove Stewardship District in June 2025, via Florida House Bill 4041, is a key step. This district will help finance infrastructure, but it will also play a role in restoring and managing natural areas, including wetlands and water resources, which is a defintely necessary component for large-scale development approval.

• Submitted permits to SFWMD and U.S. Army Corps of Engineers for Corkscrew Grove Villages.
• Corkscrew Grove Stewardship District (created June 2025) will help restore and manage natural areas.
• Adherence to Florida Department of Agriculture and Consumer Services Best Management Practices (BMP's) for water quality is mandatory.

ESG Risk Profile

The company's historical reliance on large-scale, water-intensive agriculture in a high-risk climate zone is reflected in its current Environmental, Social, and Governance (ESG) profile. As of September 26, 2025, Alico's overall ESG Risk Rating is classified as 'High Risk' at 37.41. This score places it in the 30-40 range, reflecting the legacy agricultural exposure and the inherent environmental risks of operating in Southwest Florida, particularly related to water stress and biodiversity. What this estimate hides is the potential for the new land management model to lower this risk profile over the long term, assuming the transition and conservation efforts are successful.