Fields in Santa Rosa that were once filled with rows of sugarcane now sit bare.

In 2024, the Santa Rosa sugar mill closed its doors because farmers didn't have enough water for their crops.

“From 2020 to 2021 — and as we got to 2022 — the water supply behind the dams was going down,” RGV Sugar Growers Inc. Chairman Tudor Uhlhorn said. “The acreage started to dwindle to the point that by February 2024, there was not enough acres for the mill to be sustainable."

According to Uhlhorn, nearly 3,000 people lost their jobs when the sugar mill closed, and the state also lost $100 million in annual income. 

On Sept. 26, Texas Agriculture Commissioner Sid Miller announced the revival of the sugar mill through the company Santa Rosa Sugar LLC.

READ MORE: Santa Rosa sugar mill reopening in effort to restore Texas’ sugarcane industry

The process of bringing the mill back will be done in four phases over several years, with the reopening of the mill set for 2026.

Miller said officials are exploring options to fight the issue that closed the mill in the first place.

“Water was a limiting factor, we think we found enough water to grow the sugar cane,” Miller said. “They’re going to use some reclaimed water and clean it up that was previously not suitable for irrigation, and then put them together with a company that does deep earth water. This company can — through MRI — find the fissures in the earth to find this water under pressure seeking to get out".”

Uhlhorn said his concerns remain the same about water woes. 

In 2024, the combined storage of the two reservoirs that provide water to the entire Rio Grande Valley was 22%. Currently, that water level is at 26%.

Uhlhorn said more needs to be done. 

“We want to see the industry come back, but we gotta have a demonstration of water availability for growers to plant sugar cane again,” Uhlhorn said. “Just because we have enough water this year isn’t gonna get them to plant cane. Cane is a multi-year crop."

Uhlhorn said more pressure needs to be put on Mexico to make sure the country meets their end of an international water treaty that requires them to deliver 1.75 million acre-feet of water to the U.S. every five years.

As of Aug. 2025, Mexico has only provided under 800,000 acre-feet of water. The deadline of the current cycle is Oct. 2025.

As part of the project, Santa Rosa Sugar LLC will also attempt to expand the amount of sugarcane that is grown from 9,000 acres to at least 40,000 acres.

Watch the video above for the full story.