Alico, Inc. (ALCO): Análise de Pestle [Jan-2025 Atualizada]

No cenário dinâmico das empresas agrícolas, a Alico, Inc. (Alco) fica na encruzilhada de inovação, sustentabilidade e resiliência estratégica. Essa análise abrangente de pilotes revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam o ecossistema operacional da empresa, oferecendo um vislumbre diferenciado dos complexos desafios e oportunidades que enfrentam os negócios agrícolas modernos no mercado global em rápida evolução de hoje.

Alico, Inc. (ALCO) - Análise de pilão: fatores políticos

Políticas agrícolas de gestão da terra na Flórida

A Alico, Inc. possui aproximadamente 12.000 acres de terra na Flórida, com 4.300 acres dedicados à produção cítrica. As propriedades de terra da empresa são diretamente influenciadas pelos regulamentos de gestão agrícola da Flórida.

Categoria de terra	Acres	Porcentagem de terra total
Groves cítricos	4,300	35.8%
Outras terras agrícolas	7,700	64.2%

Direitos da água e regulamentos ambientais

As políticas de gerenciamento de água da Flórida afetam significativamente as operações agrícolas da Alico.

• O Distrito de Gerenciamento de Água da Flórida, no sudoeste, regula o uso de água
• Alocação estimada de água para uso agrícola: 1,2 bilhão de galões por dia
• Custos de conformidade para regulamentos ambientais: US $ 2,3 milhões anualmente

Subsídios agrícolas federais

A receita da Alico é parcialmente influenciada por programas federais de apoio agrícola.

Programa de subsídio	Impacto anual
Subsídios de seguro de colheita	$450,000
Pagamentos do programa de conservação	$275,000

Estabilidade política na Flórida

O ambiente político consistente da Flórida apoia investimentos agrícolas.

• Índice de Risco Político para Agricultura: Baixo (2,1 de 10)
• Estrutura regulatória estável para empresas agrícolas
• Políticas agrícolas previsíveis em nível estadual

A partir de 2024, a Alico, Inc. continua a navegar no complexo cenário político do setor agrícola da Flórida com conformidade estratégica e gestão proativa.

Alico, Inc. (ALCO) - Análise de pilão: Fatores econômicos

Preços flutuantes de commodities para produtos cítricos e agrícolas

A partir do quarto trimestre 2023, a produção cítrica da Alco enfrentou uma volatilidade significativa de preços:

Mercadoria	Preço médio por libra	Variação de preço (%)
Concentrado de laranja	$1.42	+17.3%
Toranja	$0.89	+12.6%
Subprodutos cítricos	$0.65	+8.9%

Custos trabalhistas e desafios da força de trabalho agrícolas

Redução de custos de mão -de -obra para operações agrícolas em 2023:

Categoria de trabalho	Salário médio por hora	Despesa anual do trabalho
Trabalhadores sazonais	$15.37	$3,254,000
Equipe agrícola em tempo integral	$22.65	$4,712,000
Gerenciamento	$45.20	$1,876,000

Impacto econômico de desaceleração no consumo de produtos agrícolas

Tendências de gastos com consumidores em produtos agrícolas:

• 2022 Receita total do produto agrícola: US $ 47,3 milhões
• 2023 Receita projetada: US $ 45,6 milhões
• Declínio estimado da receita: 3,6%

Variações de taxa de câmbio no comércio agrícola internacional

Par de moeda	2023 taxa de câmbio médio	Impacto na receita de exportação
USD/EUR	1.08	+2.3%
USD/BRL	0.20	-1.7%
USD/CAD	0.74	+0.9%

Alico, Inc. (Alco) - Análise de Pestle: Fatores sociais

Aumento da demanda do consumidor por produtos agrícolas sustentáveis ​​e orgânicos

De acordo com o USDA, as vendas de alimentos orgânicos nos Estados Unidos atingiram US $ 61,2 bilhões em 2021, representando um aumento de 12% em relação a 2020. A participação de mercado orgânica no setor agrícola continua a crescer, com os consumidores mostrando uma preferência crescente por produtos agrícolas produzidos sustentáveis.

Ano	Vendas de alimentos orgânicos	Crescimento do mercado
2019	US $ 50,1 bilhões	4.6%
2020	US $ 56,4 bilhões	9.4%
2021	US $ 61,2 bilhões	12%

Mudanças demográficas na força de trabalho agrícola e dinâmica da comunidade rural

A demografia da força de trabalho agrícola dos EUA mostra mudanças significativas. Em 2022, a idade média dos principais operadores agrícolas é de 57,5 ​​anos, com 34.7% de agricultores com mais de 65 anos.

Faixa etária	Porcentagem de agricultores
Abaixo de 35	8.2%
35-54	27.3%
55-64	30.2%
65 ou mais	34.7%

Consciência crescente da conservação ambiental e práticas agrícolas sustentáveis

A sustentabilidade ambiental na agricultura ganhou tração significativa. O Serviço Nacional de Conservação de Recursos relata que 130 milhões de acres de terras agrícolas estão agora em práticas de conservação a partir de 2022.

Preferências do consumidor para produtos agrícolas de origem local e rastreável

As vendas locais de alimentos nos Estados Unidos atingiram US $ 11,8 bilhões em 2021, com 167.000 fazendas vendendo diretamente aos consumidores através de mercados de agricultores, agricultura apoiada pela comunidade e plataformas on-line.

Canal de vendas de alimentos locais	Volume de vendas
Mercados de agricultores	US $ 3,2 bilhões
Agricultura apoiada pela comunidade	US $ 2,5 bilhões
Plataformas online	US $ 6,1 bilhões

Alico, Inc. (ALCO) - Análise de pilão: Fatores tecnológicos

Tecnologias de Agricultura de Precisão

A Alico, Inc. investiu US $ 2,3 milhões em tecnologias de agricultura de precisão em 2023. A Companhia implementou tratores guiados por GPS e tecnologia de taxa variável em 18.750 acres de terras agrícolas. A otimização do rendimento das culturas resultou em um aumento de 12,4% na eficiência da produção.

Tecnologia	Investimento ($)	Acres cobertos	Melhoria de eficiência (%)
Tratores guiados por GPS	1,100,000	12,500	8.7
Tecnologia da taxa variável	750,000	6,250	3.7

Sistemas de irrigação avançada

Alico implantado Tecnologia de irrigação inteligente em 22.000 acres, reduzindo o consumo de água em 27,5%. O investimento total em sistemas de gerenciamento de água atingiu US $ 1,7 milhão em 2023.

Tecnologia de irrigação	Economia de água (%)	Investimento ($)	Acres cobertos
Irrigação por gotejamento	18.3	950,000	15,000
Sensores de umidade do solo	9.2	450,000	7,000

Imagens de drone e satélite

A Alico utilizou tecnologias de imagens por drones e satélites, cobrindo 25.600 acres agrícolas. O investimento em tecnologia totalizou US $ 480.000, permitindo o monitoramento e avaliação da saúde da colheita em tempo real.

Tecnologia de imagem	Investimento ($)	Acres monitorados	Frequência de monitoramento
Imagem por satélite	280,000	18,400	Quinzenal
Imagem de drones	200,000	7,200	Semanalmente

Implementação de análise de dados

A Alico investiu US $ 1,1 milhão em plataformas de análise de dados agrícolas. A tecnologia permitiu o gerenciamento preditivo de culturas em 30.000 acres, melhorando a precisão da tomada de decisão em 35,6%.

Plataforma de análise	Investimento ($)	Acres analisados	Melhoria da precisão da decisão (%)
Software de previsão de culturas	650,000	20,000	22.4
Ferramentas de aprendizado de máquina	450,000	10,000	13.2

Alico, Inc. (ALCO) - Análise de pilão: fatores legais

Conformidade com os regulamentos agrícolas federais e estaduais

A Alico, Inc. opera sob várias estruturas regulatórias agrícolas federais e estaduais:

Órgão regulatório	Requisitos de conformidade	Custo anual de conformidade
USDA	Relatórios de culturas e regulamentos de uso da terra	$237,500
Departamento de Agricultura da Flórida	Gestão agrícola específica do estado	$84,300
Regulamentos Agrícolas da EPA	Monitoramento de uso de pesticidas e produtos químicos	$156,700

Leis de proteção ambiental que regem o uso da terra e o gerenciamento de água

Alico enfrenta rigorosos requisitos de conformidade ambiental:

• Custo da conformidade da Lei da Água Limpa: US $ 412.000 anualmente
• Permissões de uso de água: US $ 98.750 por ano
• Regulamentos de preservação de áreas úmidas Impacto: 1.200 acres de terra gerenciada

Regulamentos trabalhistas que afetam o gerenciamento da força de trabalho agrícola

Categoria de regulamentação trabalhista	Métricas de conformidade	Despesas anuais de conformidade
Programa de Trabalhador Agrícola Temporário H-2A	127 trabalhadores sazonais	$1,245,000
Padrões de segurança agrícola da OSHA	Treinamento abrangente de segurança	$215,600
Lei de padrões trabalhistas justos	Conformidade com salário e hora	$87,300

Riscos potenciais de litígios relacionados ao uso da terra e padrões ambientais

Análise de risco de litígio:

• Casos de litígios ambientais pendentes: 2
• Custos de defesa legais estimados: US $ 675.000
• Faixa potencial de liquidação: US $ 1,2 milhão - US $ 3,5 milhões

Despesas anuais de conformidade jurídica e regulatória

Alico, Inc. (ALCO) - Análise de pilão: fatores ambientais

Impactos das mudanças climáticas na produção cítrica e agrícola da colheita

A Alico, Inc. possui 12.050 acres de terra na Flórida, com aproximadamente 6.400 acres dedicados à produção cítrica. As operações cítricas da empresa são afetadas diretamente pelos riscos relacionados às mudanças climáticas.

Categoria de impacto climático	Risco específico	Potencial redução de rendimento de culturas
Flutuações extremas de temperatura	Gelo e congelamento eventos	15-30% potencial perda de culturas
Aumento da frequência do furacão	Dano na árvore cítrica	Até 40% de risco de destruição de árvores
Condições de seca prolongadas	Estresse hídrico	12-25% Redução na produção de frutas

Estratégias de Gerenciamento de Recursos Hídricos e Conservação

A ALICO implementa técnicas avançadas de gerenciamento de água em suas operações agrícolas.

Método de conservação de água	Porcentagem de economia de água	Economia anual da água (galões)
Sistemas de irrigação por gotejamento	40-50%	2,5 milhões
Tecnologias de Agricultura de Precisão	30-35%	1,8 milhão
Colheita de água da chuva	15-20%	900,000

Foco crescente na agricultura sustentável e redução da pegada de carbono

Os esforços de sustentabilidade da Alico incluem estratégias abrangentes de gerenciamento de carbono.

Iniciativa de Redução de Carbono	Redução anual de CO2 (toneladas métricas)	Custo de investimento
Implementação de energia renovável	1,250	US $ 3,2 milhões
Seqüestro de carbono do solo	850	US $ 1,5 milhão
Equipamento com eficiência energética	475	US $ 2,1 milhões

Adaptação às mudanças de condições ambientais e padrões climáticos extremos

A Alico desenvolveu estratégias abrangentes de adaptação ao clima para suas operações agrícolas.

Estratégia de adaptação	Custo de implementação	Melhoria da resiliência esperada
Variedades de culturas resistentes à seca	US $ 1,7 milhão	35% aumentou a sobrevivência da colheita
Sistemas avançados de monitoramento climático	$950,000	70% melhoraram as capacidades de alerta precoce
Modificação da paisagem	US $ 2,3 milhões	45% Risco reduzido de erosão

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.