U.S. Sugar Corp., the nation's largest producer of cane sugar, is feeling the pinch as a new crop is just getting started on its 160,000 acres in Florida. Harvest season ended last month.

"If the rainy season doesn't begin in the near future, we'll certainly start seeing some dramatic impacts on the crops," company spokeswoman Judy Sanchez said.

During a 2001 drought, U.S. Sugar lost about 30 percent of the sugar content in its cane. The sugar industry as a whole lost $100 million in Florida, Sanchez said.

"And this drought is worse at this stage than we were in 2001," she said.

South Florida residents and golf courses were placed under the region's most severe water restrictions on record Thursday, as officials try to cut use by up to 45 percent to offset unprecedented
drought conditions.

"The seriousness of this drought and the public's role in cutting back cannot be overstated," said Carol Wehle, executive director of the South Florida Water Management District.

The new rules mean outside watering will be cut to once a week in Broward and Palm Beach counties. Residents in Martin and St. Lucie counties will be allowed to water outside plants and lawns only twice a week.

Pumping from four coastal wells in Lantana, Lake Worth, Hallandale and Dania Beach will be cut back or eliminated as officials try to stave off saltwater intrusion that could taint the freshwater sources. More than 90 other wells are also in jeopardy and are being monitored.

"If we don't shut them down and the salt gets in the wells, they won't recover for decades," said district spokeswoman Julie Huber.

New development in South Florida must find alternative water sources such as reuse or desalinization as cities and counties are forced to use only currently allotted supplies, Wehle said.

"We are not allowing any increase to the amount of water that is being withdrawn," she said.

The drought is also hitting the agriculture industry, which was forced to cut back use by 50 percent last month, and digging into tourism dollars as many of the state's inland waterways dry up, removing opportunities for boating and fishing.

U.S. Sugar Corp., the nation's largest producer of cane sugar, is feeling the pinch as a new crop is just getting started on its 160,000 acres in Florida. Harvest season ended last month.

"If the rainy season doesn't begin in the near future, we'll certainly start seeing some dramatic impacts on the crops," company spokeswoman Judy Sanchez said.

During a 2001 drought, U.S. Sugar lost about 30 percent of the sugar content in its cane. The sugar industry as a whole lost $100 million in Florida, Sanchez said.

"And this drought is worse at this stage than we were in 2001," she said.

Karen Nenno, manager at Meyer's Turf & Landscape Nursery in West Palm Beach, estimates her business has lost up to 20 percent of its customers.

"It's been real slow," Nenno said.

The new rules come less than a month after the water district instituted strict restrictions aimed at cutting residential use by up to 30 percent. The agency now says those rules weren't enough and another 15 percentage point reduction is needed.

Golf courses in the affected counties will have to cut use by 45 percent and continue reporting weekly usage levels to the district.

The rules mean residents could face fines of $25 to $500 a day if they don't comply. District officials will use helicopters to keep an eye on large-scale users such as farms, which could be fined up to $10,000 a day for noncompliance.

Last month, the district fined 81 golf courses $500 each for failing to report how many gallons they were using. Most cities and counties have now also begun fining violators instead of issuing warnings.

The state has been plagued with some of the worst drought conditions on record. Lake Okeechobee, a backup drinking water source for millions in South Florida and the lifeblood of the Everglades, is nearing a record low. And while summer months typically bring steady storms, officials say even average rainfall won't break the drought.

It has also left the state's swamps and forests vulnerable to wildfires. Gov. Charlie Crist said 228 fires totaling 80,000 acres - or 125 square miles - were burning Thursday across Florida.