Tuesday, July 2, 2013

Ag Today Thursday, June 27, 2013




California farm belt shrivels [Wall Street Journal]
Two years of dry weather and regulatory water cuts are taking a mounting toll on California's giant farm belt, forcing farmers to idle more fields and workers even as much of the rest of the Golden State continues to recover from a debilitating recession. As they did last year after a dry winter forced state and federal water managers to cut their allotments, farmers here in the Central Valley again this year are letting fields go fallow after being advised they would receive as little as 20% of their contracted supplies of water from the mountains of Northern California….Farmers blame the water shortages on a system they say exacerbates the impact of periodic dry spells, such as when flows are shut off in the Sacramento-San Joaquin Delta because of federal restrictions to protect species such as the endangered smelt.…For now, farmers are making do the best they can. On his family's 3,600-acre farm near here, Dan Errotabere recently drove his truck past some of the 600 acres of fields he is letting go fallow this year—almost twice as much as last year.
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Drought conditions threaten Sacramento River salmon [Sacramento Bee]
In a sign of growing drought in California, state officials recently took the unusual step of loosening environmental water quality rules in hopes of protecting salmon in the Sacramento River.…The problem is that Shasta Lake, the largest in the state, risks running out of cold water before salmon migrate upriver from the ocean for their fall and winter spawning runs….The state board also allowed Reclamation to meet water quality standards in the Sacramento-San Joaquin Delta that apply to a "critically dry" year, one notch worse than the "dry" conditions that had prevailed….This may be a problem for some Delta farmers, who draw irrigation water directly from the estuary and often lose crop productivity when the water gets saltier.

Fields of dreams? [New Times San Luis Obispo]
…What the industry has long understood—and what the Washington beltway is beginning to admit—is that increased border enforcement needs to be paired with legal ways for workers to enter the country....Ryan Talley, partner at Talley Farms in Arroyo Grande, is a third-generation farmer….In the last few years, it’s been harder to secure enough seasonal workers during these months, Talley told New Times. “Last year we were down 20 percent as far as labor was concerned,” he said. “We lost some peppers in the ground that we weren’t able to harvest.…Farmers across the Central Coast have seen similar labor shortages. This has meant some crop loss—usually minimal—but growers have mostly been adjusting in anticipation that when the peak season hits, there won’t be enough hands for the harvest….This area is no special case; the entire state’s agriculture industry has seen a labor shortage, especially since 70 percent of farmworkers in California and Arizona are undocumented, according to the Western Growers Association. Last year, the California Farm Bureau Federation conducted a survey of its members, publishing the results in a 2012 report titled “Walking the Tightrope: California Farmers Struggle With Employee Shortages.” The report compared non-labor-intensive crops and labor-intensive crops, and 61 percent of all respondents reported experiencing worker shortages. Of those with labor-intensive crops, 71 percent saw shortages….For Greg France, one of the largest strawberry producers in San Luis Obispo County and the Santa Maria Valley, it has meant some tough decisions. This year he chose not to plant 120 of his 400 acres, he said, instead leasing to a vegetable grower.

Tulare County dairies squeezed by high feed costs, low milk price [Visalia Times-Delta]
Central California dairy farmers are continuing to feel a budgetary squeeze brought on by high feed costs coupled with low milk prices. The failure of the farm bill in the House of Representatives last week will not help their situation….The latest pricing has spurred on a conversation that the industry has been having already for about a year and a half — joining the Federal Milk Marketing Order….Currently, a large majority of the nation’s milk producers belong to the FMMO, with California being one of a few states that still operates its own system….But the path to joining the FMMO is problematic, says Michael Marsh, CEO of Western United Dairymen, a voluntary membership organization which represents about 60 percent of the state’s milk producers.

Tulare Co. cheese plant closing, 144 layoffs [Fresno Business Journal]
Mozzarella Fresca is closing its Tipton plant and laying off 144 workers.Mozzarella Fresca is closing its Tipton plant and laying off 144 workers.Mozzarella Fresca in Tipton will close its Italian cheese manufacturing plant in September, laying off 144 workers.…The plant is owned by Lactalis American Group, the North American division of Groupe Lactalis, the French dairy corporation regarded as the largest in the world. Lactalis American Group has invested $40 million in a new mozzarella plant in Nampa, Idaho that has now expanded and hired new workers….At that March 2007 hearing, then-Mozzarella Fresca Corporate Controller Jay Wilverding told a CDFA panel that the high price of milk in California had already caused the company to transfer some 6 percent of its cheese production to the Idaho plant, and that future investment in the small Tipton plant was in doubt because of the regulatory atmosphere in California. The company also closed a plant in Turlock.

There’s a lot of planting going on at county vineyards [San Luis Obispo Tribune]
Demand for high-quality California wine grapes among foreign and domestic consumers is fueling the planting of new vines at San Luis Obispo County vineyards. “There are some large plantings going on, larger than we’ve seen in a number of years,” said John Duarte, president of Duarte Nursery near Modesto, which sells vines to North County wine-grape growers. “There’s definitely going to be additional expansion.”…Although no one knows for sure how many acres of North County wine grapes could be planted in the near future, those familiar with the local wine industry say estimates range from 3,000 to 8,000 acres of new vines.

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