-April 2,2021-

Avenal gets new economic development director

County planner Kao Nou Yang has relocated to the community of Avenal to become their Community/Economic Development Director and likely stir things up for the better. Kao says she is excited about the potential this low income Kings County city has, including plans for new housing, retail projects and energy development .

Among the projects she is working on:

-looking to attract new solar and wind companies to the city’s vast and varied landscape including to land in the city limits east of I-5. She also is starting to work with Chevron to see how she can assist with their petroleum projects.

-streamline the permit approval process to make it easier to start a business in town.

-Avenal will get new national retail chains including a new Dollar General store and an O’Reilly Auto Parts.

-working on a new low income housing project.

Faraday Future says funding will retool Hanford plant

Faraday Future announced recently that the start up electric-vehicle maker has received access to $100 million in funding on the way to finalizing the merger with Property Solutions Acquisition Corp. The company expects to end up with $1 billion in funding.The big news for Kings County, who has been patiently waiting for jobs to materialize, is that the new funds will be used to build and equip its manufacturing facility in Hanford. This moves them closer to the eventual manufacturing of its first mass-produced car, the FF91 vehicle, said to scoot 0-60 mph in less than 2.4 seconds.

In a March 26 press release the company said ”The preparation and start-up of the Hanford manufacturing facility will include new hiring, additional construction, and equipment installation and calibration to ensure the on-time production and delivery of FF 91.”

The merger is set to close by July 1 and the car will be available for sale a year later.

Locally, former EDC president John Lehn is the company government relations manager.The site is former Pirelli Tire plant now partially remodeled in the Hanford Industrial Park. The combined company will be listed on the Nasdaq Stock Market under the ticker symbol “FFIE”.

So far the company website lists only one Hanford job – the general manager position.

Jobless rate falls

The unemployment rate in Kings County was 10.7 percent in February 2021, down from a revised 10.9 percent in January 2021, and above the year-ago estimate of 9.8 percent.The county has some 1200 fewer hospitality jobs than in February 2020.

Smaller cotton crop expected

National Cotton Growers say California might see an unexpected overall 25% drop in cotton acreage. Pima acreage was forecast at 108,000 acres, down from 147,000 acres in 2020- about a 26.5% drop in acres. Upland was expected to be at 28,000 acres, down from 34,000 acres in 2020- a 17.7% drop in acreage. Total acreage is predicted to be 136,000 acres, down from 181,000 acres in 2020 meaning an overall predicted reduction in acreage of 25%.With better cotton prices this year the acreage could climb. But water is the real problem.In 2019 Kings County had 108,500 acres planted to cotton. In 2021 they expect perhaps 83,000 acres.

Hog prices higher

Lean hog futures have been hog wild in the past year rising from around $43 in mid April 2020 to $105 this week. The jump in price of U.S. hogs is partially due to African swine fever in China but more to do with herd losses in the US Midwest. The market is strong as well heading into the grilling season. Smithfield Foods maintains a big hog farm near Corcoran.

Farm exports face delays at ports

CFB says agricultural exporters say they’ve been having a “nightmare” of a time moving farm products through California ports. A surge in cargo volumes, a reduced port workforce and other problems have contributed to a shortage in shipping containers. Shippers trying to export California crops and commodities say they’ve experienced canceled bookings, increased costs and concerns about lost business. They fear the problems may not ease for weeks or even months.One report says tens of thousands of containers holding millions of dollars’ worth of goods are stuck offshore, within sight of docks jammed with still more containers. Not only are exports being impacted but imports are piling up offshore further clogging the ports.

Milk price slumps

Most milk sold in the state is Class IV- sold as butter and cheese. Right now there has been abundant production with the spring flush and prices are slumping. Class IV prices saw the biggest change from January to February, declining by 56 cents to $13.19 per cwt. California butter production increased 10.9 percent in December 2020 and 7.9 percent in January 2021 as compared to year-prior levels. But the average price was below $1.40/lb recently, compared to well over $2/lb average in recent years. Class IV milk price was $20 at the start of $2020 but fell to $13 by the end of last year. Luckily, dry milk powder exports are strong and the price has held above $1.11 -better than average for recent years.

Snowpack remains well below average
Westlands faces unknown delay in 5% allocation

Hopes for a March miracle have dissipated, with the Sierra Nevada snowpack remaining at about 60% of average—the same as when the month began. The state Department of Water Resources will conduct a manual this week with early April typically being the time the snowpack reaches its deepest level. Both state and federal water projects announced last week they would reduce or delay deliveries due to the dry winter and other restrictions, says CFB. The impact on westside ag will be big. The Bureau of Reclamation just announced an update to the initial Central Valley Project 2021 water supply allocation for agricultural water service contractors south-of-Delta.”Although conservative hydrologic data was used to develop the initial CVP water supply allocation, inflow projections to CVP reservoirs have decreased from February forecasts, which further constrain available water supply,” said Regional Director Ernest Conant. “After careful consideration of water management options, we are adjusting the allocation for south-of-Delta agricultural contractors. The update to the initial 2021 CVP water supply allocation: Agricultural water service contractors south-of-Delta allocation of 5% of their contract supply is not available for delivery until further notice.

Northern California has about 51% of average precipitation for this time of year; statewide average snowpack levels are at 63% of average. The State Water Project also announced a reduction in its anticipated water supplies. The department now expects to deliver 5 percent of requested supplies this year, down from the initial allocation of 10 percent announced in December.

Westlands Water District general manager, issued the following statement March 23.“Given extraordinary dry conditions this water year, Reclamation’s announcement represents a balanced, prudent approach that ensures it can fulfill both its regulatory and contractual obligations for water from the Central Valley Project. We recognize the challenge presented by the ongoing drought conditions, and we remain committed to working with partners at the federal, state, and local levels to find sensible approaches that reduce harm to people in rural areas and California’s important ecosystems by maximizing the beneficial use every drop of water available.”

Environment group NRDC said reduced levels in reservoirs will mean draining upstream dams throughout the Central Valley to extremely low levels, which” will almost certainly cause devastating impacts to salmon and steelhead.”

Costco developer wants to build Lemoore office project

Fresno developer John Kashian, who built the Hanford Costco development is turning his sights on Lemoore where he plans a mixed use retail/ office project. Kashian is seeking approval for General Plan Amendment and zone change from Parks and Recreation to Professional Office at a vacant site located at the northeast corner of the intersection of 19 1⁄2 Avenue at Cedar Lane-just east of Hwy 41. The site had been proposed to be used for Little League baseball but a staff report says the league has no plans to relocate currently.

Johnny Quick plans development west of Hwy 41

Lemoore city staff received a site-plan review application from Johnny Quick, based in Fresno. The project being proposed is located on the NEC of W. Bush Street and N. Belle Haven Drive, just west of the Hwy 41 off ramp. It will include a 6 pump fueling station, car wash, convenience store with Johnny’s Subs and Pizza, The Chicken Shack Express and Rare Earth Coffee with drive-through.