Over the past seven years Governor Arnold Schwarzenegger has been in California’s state office. Throughout his career he has dealt with a number of agricultural issues in one of the largest farming states in the country. However, producers are looking for a serious change in the industry.
The California Farm Bureau Federation announced its support for republican candidate, Meg Whitman.
“As small business owners, family farmers think it’s important to elect a governor who has had to meet a payroll and cope with all the regulations that California businesses face,” Paul Wenger, president of the federation, said via press release. “Meg Whitman will bring business sense to Sacramento that will help her cure California’s spending problems.”
One of the biggest issues pressing California is water irrigation. The state has been in a drought for over three years. The CFBF is impressed with Whitman’s support of the construction of new reservoirs. Wenger feels that this is an answer to not only help the large agricultural industry in California, but to help create jobs in the industry as well.
Governor elections are set for November.
Federal Reserve stated interest rates likely to rise. Refinance your farm loan before rates go up. Call a representative by dialing 866-929-5585 or visit us online.
As of May 1 farmers will earn eight cents more a gallon for milk according to the California Department of Food and Agriculture.
Prices will then be increased to $1.33 per gallon, which is still lower than the cost to produce the milk in California. Butter, cheese and powdered milk prices will also increase in May, ultimately raising the price paid for milk as well. Analysts expect the demand for cheese to drop though which meals there is still no certain outlook for dairy producers.
While dairy producers struggle with prices, producers across the state are also looking for relief.
Going on the fourth year of drought-conditions, California producers are still dealing with tight water supplies in California.
Although the Sierra snowpack is at 130 percent average, the Department of Water Resources said the state has not recovered from three years of drought. Many storage areas in various reservoirs across the state still sit below average. Hydrologists believe the snow run off will just absorb into the dry ground. Water conservation is necessary by all California citizens.
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Sonoma County is working to fight European grapevine moths.
A thousand acres in Sonoma Valley have been quarantined when three moths were found west of Calistoga. Investigators said the damage from the pest will not be known until May or June. The insect itself does not spread quickly by itself, but it moves with infected fruit and plants. It can also spread when farm equipment moves and the insect is attached to the equipment. The quarantine is intended to prevent any further infestations. Farmers are also fighting damages by applying fungicides to the vineyards.
The United States Department of Agriculture (USDA) is also researching citrus plants to find ways to fight a disease that is currently threatening a number of citrus plants across Florida and could make its way to California.
Researchers are working with periwinkle plants to find ways to fight HLB or citrus greening. Field trials are underway in California because although the disease has not been found, the insect that carries the disease has.
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After a year of hardships, farmers in California’s San Joaquin Valley are optimistic for the future. The valley is California’s largest farming area, producing everything from nuts and dairy to wine.
From 2000 to 2008 agriculture income doubled to $7.6 billion in the valley. With the recession in full swing the biggest change seen was dairy prices. “Agriculture is the engine that can drive an economic recovery in California,” said Farm Bureau president Paul Wagner. Although prices dipped in 2009 economists expect prices to recover in 2010. Graduates in the area are having no problem finding jobs in the agricultural industry or related fields.
San Joaquin Valley is a good location for farming because the weather is warm and dry from spring to fall, which is ideal weather for growing a variety of crops. Farmers face hardships in the area such as water restrictions, animal rights activists and rising environmental improvement costs to lower pollution and improve air quality. Despite these problems producers continue to put money back into California’s economy by supplying jobs and purchasing seed and equipment from other companies across the state.
As economic conditions improve, San Joaquin Valley is expected to grow even more with farms, ranches and wineries.
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The California Farm Bureau is already noting changes in two of California’s largest markets.
California is known for its wine and as the world’s recession is slowly easing up, sales of finer wines are increasing. The USDA reports that the world wine trade stalled for the past two years as consumers in American and worldwide have switched to lower-priced wines. However, slowly the market is climbing back up worldwide. Although the market never completely died off it was always strongest in Europe and Canada.
Timber farmers in California are also seeing improved conditions. Over the past year the demand for wood has increased and prices have even increased. The demand for redwood and Douglas fir are increasing as timber farmers prepare for the upcoming logging season. The official season starts once the winter rains dry up. Although the industry is seeing improvements timber farmers still report that the industry is in “a dark hole.”
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The California Farm Bureau released a statement that said they fully support U.S. Senate nominee Carly Fiorina. The Republican congresswoman has big plans for California businesses.
California Farm Bureau President Paul Wenger said, “Carly Fiorina seems like an obvious choice for us. As a business leader, she understands how important it is for government to live within its means. She knows how government regulation may start out with good intentions but can end up crushing small businesses under a mountain of paperwork.”
Fiorina has ideas for economic growth in California including lower taxes and less unnecessary regulations.
Fiorina plans to restore waterflow to farms and ranches, which would make one of the biggest impacts to farm bureau members. Wenger also said, “She has pledged to work diligently to bring relief to the thousands of farmers and their employees who face chronic water shortages. We need more action in Washington to create sensible, balanced policies that benefit both our environment and our economy.”
Voting takes place in the general election this fall.
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California producers can expect water shortages again this upcoming Spring and Summer. Despite the normal snow fall and precipitation over the winter, it is not enough to bring the state out of its current drought conditions.
Southland cities, such as Los Angeles, will be put on water rationing because the water levels are only at 40 percent of full allocation. Although the numbers are not finalized, officials expect little change when the total numbers are announced in May.
“The impression seems to be that the drought has been broken,” said Water Resources Director Mark Cowin told the Los Angeles times. But “clearly we’re going to have water shortages this year. We all need to conserve water.”
Normally Shasta Lake, in Northern California, is at 104 percent for April. However, it is currently only at 60 percent which is much lower than last spring. This is the lake that provides irrigation for most of California’s farms.
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The United States Department of Agriculture reported that California farmers are expected to plant 100,000 acres of Upland cotton. This is a 41 percent increase from 2009.
The increase shows that the cotton crop, which has been nearly scarce across California in recent years, are making a comeback. This is a trend found across many parts of the country.
California farmers are also expected to plant 165,000 acres of American Pima cotton, a 39 percent increase from last year.
In Fresno County 69,800 acres of cotton was harvested in 2008 totaling $117.7 million.
These numbers come from the USDA’s annual report that farmers use as a guide for picking and planting crops. Although the numbers are not exact, they are a rough guess as to what farmers can expect. The numbers will increase and decrease as farmers report their actual yields to the USDA.
Federal Reserve stated interest rates likely to rise. Refinance your farm loan before rates go up. Call a representative by dialing 866-929-5585 or visit us online.
The European grapevine moth is causing great damage to vineyard crops across Napa Valley.
Producers have managed to quarantine the species in Napa Valley, but are fearful for those in the nearby San Joaquin Valley. California’s agriculture is nearly dependent on the $220 million grape crop. The moth could do major damage to the overall crop production in the state.
The European grapevine moth appeared in Napa last year during harvest putting all producers in a panic. Paul Verdegaal, University of California Farm Advisor, told KCRA news, “The problem with any introduced or invasive species like this is, when they arrive someplace like this, is the usual predators and parasites that attack them in their home territories aren’t located here, so it has free reign for awhile.”
A number of producers have run into a problem of destroying and trapping the pest because the fields are organic and cannot use pesticides.
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Farmers requested an emergency lift of water pumping restrictions on California’s delta in fear of killing chinook salmon. However, U.S. District Judge Oliver Wanger declined the request on March 31.
Starting that night the regulators will cut back the amount of water that is pumped through the Sacramento-San Joaquin Delta. The restrictors were used to protect endangered steelhead and salmon from swimming into the Pacific Ocean. Farmers feel this causes dramatic crop losses.
The San Joaquin Valley is where the majority of America’s fruits and vegetables are grown. Over the past three years the California drought has caused many crop losses and this water could help with some of the problems caused by the drought including economic problems.
Biologists developed the plan to help the salmon that have been on the nation’s endangered list for the past two years. Since the plan’s development farmers have been fighting the notion. The restrictions are a frequent debate among environmentalists, farmers and government officials.
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