Sugarcane (Texas model)

The producer grows the sugarcane. The sugar mill takes ownership of the crop in the field and harvests and transports it for continuous operation during the processing season. Sugarcane must be processed within 24 hours of harvest so storage is not an option within the sugarcane system.

The advantage of the Texas model is that the producer does not own any harvesting or hauling equipment. The disadvantage of the system is the producer does not have control over the time of harvest. Sugar content peaks (point of maximum compensation) in the middle of the season and a producer who has their cane harvested early, or late, sells less sugar. Fortunately, the issue is addressed in their contract.