Central Coast town fears seawater push inland contaminating groundwater

Famously the unincorporated town of Los Osos on the California Central Coast, was the subject of a 35-year building moratorium that was only lifted earlier this year. The community of 15,000 is overseen by the county Board of Supervisors who has now allowed a few residential projects that would hook up to the local groundwater supply to move forward. Currently Los Osos water supply is 100% sourced by groundwater.The supervisors use a formula that is dependent on the health of the groundwater aquifer as measured each year.

For years, there has been a debate within the community over whether we are pumping too much of that groundwater allowing seawater to intrude into the community’s aquifers.But now a new “more accurate” groundwater model released this month appears to show the town may not have the water to sustain growth without significant new initiatives. Without new hook ups – seawater is already moving in, says the model. What to do?

The Los Osos Basin Management Committee (BMC) is charged with monitoring the basin.The committee made up of the town’s three water purveyors and a public member (Supervisor Bruce Gibson), files an annual report to the court as a result of a 2015 Stipulated Judgment.

For years the BMC has used a “static” older model to estimate how much water the community can pump without causing seawater to move into the aquifers below the town.Overpumping can reduce the pressure to keep the saltwater at bay. For the past few years the BMC board has sought consultant expertise to put together a new updated “Transient” model to guide them.Now the model is in place. The consultant engineering firm that developed the model made big news this past week.

Some background

Seawater intrusion is the movement of saline water into freshwater sources, both groundwater and surface water. It can accelerate its pace not just from groundwater pumping but from rising sea levels says a November study in Geophysical Research Letters that evaluated more than 60,000 coastal watersheds around the world, mapping how diminished groundwater recharge and sea level rise will each contribute to saltwater intrusion while estimating what their net effect will be. The study’s authors found that by the year 2100 rising sea levels alone will tend to drive saltwater inland in 82% of coastal watersheds studied. So this is not just a Los Osos problem.

A JPL report adds “Spurred by planetary warming, sea level rise is causing coastlines to migrate inland and increasing the force pushing salt water landward. At the same time, slower groundwater recharge — due to less rainfall and warmer weather patterns — is weakening the force moving the underground fresh water in some areas.”

If there is less natural pushback against rising seas due to climate change, Los Osos and all coastal communities need to push back harder, increase the volume of recharge to battle seawater intrusion or face contamination.

Here are some key effects of seawater intrusion:
-Degradation of Water Quality
-Reduced Freshwater Availability
-Increased Water Treatment Costs.

This week at the June BMC meeting, a new model was introduced that suggests that the older groundwater flow model was flawed. The change of tune has major implications for the community who just recently, under the county jurisdiction, adopted a new community plan that allows limited growth in this community. Critics say the new information is a wake up call. But for what?

The new so-called “Transient” model released by Spencer Harris and Cleath-Harrris Geologists of San Luis Obispo, the basin committee’s consultant firm, says the new model accounts better for hydrology variation.The transient nature of the model allows for simulating variable hydrologic patterns that include wet and dry cycles over a 45-year modeling period. The current steady-state Model, due to its limitations, simulated constant hydrologic conditions occurring year over year and could not account for the impacts of variable hydrology (i.e. extend drought).”

“Current pumping not sustainable”

The new model indicates “that pumping at current average rates and spatial distribution would cause seawater to intrude further into the Basin which is an indication that current average pumping and distribution is not sustainable.”

The old model suggested the basin could pump 2380 acre feet per year without causing an influx of seawater. The headline here is that the five-year basin average of 1830 AFY of pumped groundwater is already causing seawater intrusion. Just what number is sustainable” has yet to be determined.

Seawater moving inland 24 feet a year

“The extent of the saltwater intrusion over the next 45-years at the current Basin pumping distribution is simulated to advance up to 1,100 feet inland (24 feet per year) in Lower Aquifer Zone D” says the model. “The greatest advance occurs towards downtown from Cuesta-by-the-Sea and would be detected at the new Skyline monitoring well cluster.”

Skyline is just north of Los Osos Valley Rd that divides the town north and south.The 1100 ft penetration is approaching a quarter of a mile inland movement over the next generation.

“In Zone E, the inland limit of the intrusion front stalls at the Community Park, with up to 400 feet of intrusion over 45 years (9 feet per year) continuing at LA11 near Pasadena Avenue. The intrusion front does not reach any active community supply wells, but is close to LA10.”

So now what?

If current groundwater pumping is not sustainable – what is the number? That will be the next task of BMC with more help from their consultant. The committee says it will use the Transient Model to develop updated estimates of sustainable yield for the Basin and to evaluate different recycled water and/or supplemental water supply alternatives to help improve Basin sustainability. This work is currently ongoing.

Initiatives under consideration

On the recycled water front, treated water supplied from the wastewater treatment plant will be replacing pumped groundwater now. The county has used ARPA federal funds to connect recycled water to community Middle School, Community Park and Monarch Grove Elementary School this month, enabling these entities to stop using water pumped from their own wells for their vast grounds. More use of recycled water is a key initiative that could help.

Key meeting on pipeline June 25

As to the quest for supplemental water for the basin, Community Services District (CSD) general manager Ron Munds has been negotiating with the US Army Corp of Engineers on releasing the $8 million funded by Congress and signed by President Biden last year for a proposed 2.5 mile pipeline that would connect to State Water near Morro Bay. But it needs to be approved by the Army Corp of Engineers to move forward with Munds reporting to the CSD board earlier this month that the Corps had put the project on their 2025 work plan, a positive move. So what’s next?

Munds now says that he has an important meeting with the Corps of Engineers June 25 and “we should know more after that.” The original estimate was that the pipeline could bring in 200 acre feet per year of supplemental water although perhaps a higher number could be realized. The water coming in would be drinkable as it is for Morro Bay.

Critics suggest that water would be released based on availability and can’t be counted on. But despite drought and surplus years, next door Morro Bay has never been short of their requested amount that is the majority of their supply.

Call to action – “dire state of the basin”

Beth Reineke (S&T Mutual Water Co Mgr) BMC board member offered her take at the June 18 BMC meeting. Fellow board member Bruce Gibson tried to convince the board that since consultant Spencer Harris was not present to discuss his memorandum and the new model, policy decisions should not be discussed prematurely. Mr. Harris was said to be under the weather.

But Reineke,who is a water quality analyst, said the consultant’s written report spoke for itself and added that the impressive peer reviewed information prompted her today to make a call to action to address the “dire state of our basin.”

“We are currently over-pumping by a large and yet-to-be-determined amount.”

Here are some of her bullet points from her presentation.

  1. Prioritize a reduction in pumping to stop and reverse seawater intrusion.
     Connect to the State Water pipeline to help offset pumping from our basin in wet years. This could prevent the pumping of 200-600 acre feet a year (AFY) from our
    basin.
     Use the 2023 Maddaus Study as a guideline for where conservation is still needed in the community. This would save 118 AFY for our basin.
     Seek out solutions to reduce the estimated pumping from private well owners (Maddaus reported an average of 390 gallons each house per day).
     Insist on maximal use of recycled water in each possible area of Los Osos.
  2. Connect all remaining non-sewered homes to the sewer collection system.
     Cabrillo Estates is ready and willing to connect to the sewer; the BMC should support this project.
     The other non-sewered areas of Los Osos should also be added to the sewer to maximize the flow of recycled water and reduce nitrate loading into the basin.
  3. Implement a stormwater capture program.
     Use the Transient Model to identify opportunity areas for capture measures.
    Educate the community and incentivize household-scale catchment systems.
  4. Add forever chemicals (PFAS) and chromium-6 to our Basin Management Plan.
     The BMC must take a stance on the contamination in our basin. We need to work vigorously to stop the sources and mitigate the ongoing issues of PFAS and chromium-6 in our water supply.

Reineke believes the entire community needs to be connected to water meters and that this would cut water use in the basin.

By installing meters and increasing water rates, S&T Mutual halved our water use in the span of a decade from 55 AFY in 2013 to 27 AFY in 2023.

“It is imperative that all water users share equal responsibility in terms of both cost and conservation. Financial incentives and monitoring have been crucial in achieving water- saving goals in Los Osos. By installing meters and increasing water rates, S&T Mutual halved our water use in the span of a decade from 55 AFY in 2013 to 27 AFY in 2023. So, I believe it is time to extend this philosophy to the remaining users who also rely heavily on our shared water resources.

By ensuring that all users contribute fairly, we can promote sustainable water management as we strive to bring the basin back into balance.”

The town’s three water purveyors pump around 1000 acre-ft per year for the urban area residents and businesses of Los Osos and Baywood Park.These connections are all metered. What is not metered are the rural resident wells and ag wells that together are estimated to pump almost 700AF a year (see chart). Not in the report but much of the ag water goes to pasture and hay production with limited commodities for human consumption.

In the next few months the Los Osos BMC is revisiting this issue using this model to estimate various scenarios to fight off more seawater influx. Some of these initiatives are controversial and long term.

But if the sustainable yield is 1600AFY for the sake of argument, the adopted policy to do 80% of the sustainable yield would be 1280AFY pumped. That amount can be augmented with imported water from the state pipeline by whatever amount we can secure – 200 to 600 AFY, suggests Reineke. That is water we can use but don’t have to pump.

Ron Munds says connecting the two schools & park to recycled water can yield perhaps 50AFY.

Capturing stormwater might be done in a couple seasons with some engineering.

The county’s Growth Management Ordinance passed last year established a 0.4% growth rate for Los Osos in Calendar Year 2025 including an allocation of 25 new dwelling units in Los Osos.

Given this latest report,the Los Osos growth rate this coming year might arguably be zero.

Visalia Chick-fil-A and Sam’s Club Fueling Station move forward

June 2,2025

Two high profile Visalia commercial projects in the same shopping center first announced last fall are moving forward this summer including the sought-after Chick-fil-A restaurant at the SWC of Visalia Pkwy & Mooney as well as a 28-pump Sam’s Club gas station. The big Sam’s Club warehouse is expected to follow soon.

According to a filing for the coming Site Plan Review meeting the first week of June, the Atlanta fast food chain is buying 2.15 acres from the shopping center developer right on the corner. They plan to build a 5,035-square-foot building featuring a dual-lane around the entire building from the drive-through entry to the exit. The project includes a trash enclosure and two canopies over the drive-through lanes. The building will include 92 indoor seats and 24 outdoor seats. The hours of operation for the new restaurant are from 5:30 a.m. to 11:30 p.m. on Monday through Saturday and closed on Sundays,says the filing.

This is the first direct public request for approval by Chick-fil-A, in this case from a consultant representing the firm.Visalians have pressed on social media for the food company to locate here. Tulare also has a planned location that has yet to break ground.

The Visalia and Tulare stores are expected to be franchised as many locations are and likely employ 80 to 100 workers. As you might guess, chicken is on the menu including their signature chicken sandwich with wedge fries.

The company says Chick-fil-A, Inc. is the third largest quick-service restaurant company in the United States, known for its freshly-prepared food, signature hospitality and unique franchise model. More than 200,000 Team Members are employed by local Owner-Operators in more than 3,000 restaurants across the United States, Canada and Puerto Rico.
A Chick-fil-A media representative is expected to advise us when the restaurant might open with some sources, expecting it to be open by the first of the year..

Gas station awaits construction permit

Also, this week Sam’s Club has filed a permit request to begin construction on their 28-pump fueling station now located somewhat closer to Mooney than originally planned at the request of adjacent home owners. The station will be adjacent to the big 172,000 square-foot Sam’s Club warehouse. Prior to this submittal, all contact on this project as well as the Chick-fil-A, has been through the Fresno developer.But Sam’s Club themselves now own their land and are in charge of all approvals.

The $4.1 million station will be 9200sf according to the permit now being reviewed by the city.

Paralleling the construction schedule is rival Costco on the north side of town, already underway with construction of their gas station next to their own big club warehouse that has yet to break around. Sources expect this project to open in 2026. On the south side of town across Mooney from the new Sam Club, the original Visalia Costco will go head to head for fuel, groceries and goods.

Save Cuesta Inlet Community Group Opens Escrow!

June 2, 2025

Begins Capital Fundraising Campaign for Purchase

It is with great pleasure and excitement that the Save Cuesta Inlet board announces that after three years of fundraising, farmers’ market kiosks, and public engagement, we are in escrow to purchase Cuesta Inlet for the community!

Thank you, Los Osos and friends of the Inlet; you made this happen!

We are enormously appreciative of all the donors who have helped us raise funds to get us to this point! They have inspired us to enter escrow and launch a major capital fundraising campaign to acquire this treasure for all the nature lovers in Los Osos.

We need your help, and we need it now!

The agreed upon purchase price, $735,000, is the property’s appraised value. SCI has six months to raise the full amount plus related costs. To date, we have raised over $150,000 in contributions and a generous donor has pledged an additional $100,000 in matching funds to kick off our capital campaign.

We experienced a surge of momentum and support from the community in the past 8 weeks to preserve the Inlet at a time when we thought we may have lost it to another bidder. Now that we’re in escrow, we are really hoping individuals will step up to show their support monetarily, at whatever level is right for them. From small gifts to five and six figures, it will take all of us coming together to make this purchase a reality.

Visalia tip-toes in direction of retail cannabis stores

Retail cannabis store in Farmersville

Will the Visalia City Council agree to allow retail cannabis dispensaries in town? This month the council took up some details on their planned cannabis ordinance including sales rules and restrictions on various cannabis businesses but did not address directly the BIG QUESTION, permitting retail cannabis dispensaries in town.

The backdrop for the discussion is that the State of California may further restrict local jurisdiction choice to manage retail sales making it prudent to develop local rules before that happens.

By a 3 to 2 margin in the past the council has not been a fan of retail pot sales in Visalia. But that may be changing.

At the latest work session the council did a tap dance in that direction – reading that consultant HdL predicts retail annual sales in the city of $18 million and translating to a sales tax revenue stream of as high as $1 million says city staff. If the tax rate was set at 10% it could add up to $1.8 million.

There was also discussion of the trend seen statewide and around the Valley of lower cannabis sales as well as a decline in revenue for towns that have a sales tax in place.

Still city staff is recommending the council move forward with retail outlets and after some discussion, the council seemed to agree on three stores in the city if they give the green light in coming months. They even focused on the hours of operations for retail stores coming up with a 9 AM to 9 PM schedule.

Here is the staff recommendation: Staff would recommend considering allowing retail and medical storefront and delivery only retail businesses, particularly if Council was to consider allowing distribution or manufacturing use types which could also act as fulfillment centers for retail orders.

So where in the city would be logical locations for retail stores? Some council members suggested they be freeway close or on Mooney Boulevard and others looking to revitalize existing areas in town. Council member Soto suggested the long empty building on Dinuba Boulevard formally the CVS drugstore spot as a logical location.

Regarding location, staff said they would visit with cannabis operators noting they are in talks with cannabis companies on setting up here.

None of this sounds like a hard ‘no’ – rather a tiptoe into a future cannabis business in Visalia while clearly looking to limit any negative impacts on the community.

As to the issue of rate they will be taking this up at an upcoming meeting. Already the industry has to pay 19% sales tax to the state as of July 1 – up from 15% right now.
That would mean some future retail shopper in Visalia would be paying 29% sales tax adding in the 10% rate here – if that’s what they choose. The industry has argued this combined tax makes it more likely customers will turn to the black market if tax rates are too high.

There is no doubt that revenue from the retail cannabis storefronts at nearby towns has been going down in the past year with Lemoore generating as much as $1.1 million for the city in 2022 but now falling to just $292,000 in 2024.

Tulare’s cannabis tax revenue is down but only slightly from $1.1 million in the current year to predictions that it will drop to $1 million in 2026.

In Fresno, news reports say the cannabis market in Fresno has not generated the tax income the city had anticipated, falling nearly $4 million short of projections. Initially projected to generate $7.1 million for the year, it now is expected to bring in just over $3.1 million.

Visalia is clearly coming late to the party with retail cannabis outlets in the Central Valley already found in Parlier, Coalinga, Porterville, Hanford, Mendota, Firebaugh, Woodlake, Coalinga, Porterville, Tulare, Lemoore, Farmersville and Fresno.

So Visalia is being pushed and pulled over this issue wondering if the $18 million sales predictions is pie in the sky but realizing Visalia seems to support the city’s plunge into the cannabis business with 70% voter approval last November.

In March 2025, the Visalia City Council approved a cannabis sales ordinance, but they set the number of cannabis businesses allowed at zero, creating a regulatory framework without allowing any businesses to operate at this time.

But now they are tip-toeing in that direction with staff saying they will return with more detail that could end up allowing three storefronts here.

RX for Rite Aid? Shut it down

Big drugstore chain will close all stores

May 15,2025

Many of us remember them as Thrifty Payless,once a 1000 store chain in California. Now all that’s left of the name is on the ice cream cartons still for sale at your local Rite Aid – at least for a while.

Philadelphia-based Rite Aid Corporation announced this week that through its second bankruptcy in two years, the chain would shut down all of their 1200+ locations nationwide, including 347 here in California – all in the next few months.

Before their first bankruptcy in 2023 the drug store chain was ranked as the third largest in the nation, mostly clustered on both coasts.

As of May 5, the privately-held company said it would sell or close all of their stores through the Chapter 11 bankruptcy process.They also announced the company has secured commitments from existing lenders to access $1.94 billion in new financing. This financing, along with cash from operations, is expected to provide
sufficient funding during the sale and court-supervised process,they said in a statement.

The first time,in August 2023, Rite Aid announced that it was preparing to file for Chapter 11 bankruptcy protection in an effort to settle federal and state lawsuits over the company’s role in the opioid crisis.

Now Rite Aid will now work to sell its prescriptions to another drugstore or grocer who sells pharmacy drugs.

Other US large drugstore chains are CVS with the most retail locations in California, and Walgreens followed by an independent chain – Health Mart with 500 California locations and just two locally Cambria and Arroyo Grande, and then Rite Aid.

Ten SLO county Rite Aid locations
.
In San Luis Obispo county, Rite Aid has the largest dispersed network of stores, including in smaller towns like Los Osos and Morro Bay. There are 10 locations in the county, the same number as CVS with only one location for Walgreens. All CVS locations are along the 101 corridor while Rite Aid sites include Morro Bay, Los Osos, 3 in Five Cities, 1 in Atascadero, 2 in San Luis Obispo and 2 in Paso Robles.

Managers tell us that the stores will stay open at least for a couple of months, but beyond that they have no idea if the store prescriptions will sell to another company or if the storefront will simply close after failing to sell.

Reportedly the consumer trend to purchase more drugstore items online is hurting all of the chains. For the past year consumers visiting Rite Aid have noticed more empty shelves as the company struggled to convince suppliers to send products. Liquor fills a number of the shelves.

For customers who don’t live in large cities, the uncertain fate of this nearby drugstore is worrisome, particularly for the elderly.For example the prescription list at one location could be sold to a drugstore miles away.

In Morro Bay where the town could be left with no chain drug store, independents are working to pick up the slack. Pill Save Pharmacy from Arroyo Grande recently opened in Morro Bay looking to offer low-cost medications for patients.

In Los Osos, Rexall Pharmacy and Ralph’s offer RXs as well.

Has the California walnut industry turned the corner?


Faces fewer tariff headwinds

April 30,2025

The California walnut industry may be in better shape than its sister nut crops – almonds and pistachios- when it comes to threats from tariffs this year. All three big California nut crops count on exports around the globe to make a profit.That factor alone makes them vulnerable to trade wars. The California walnut industry exports 2/3 of their walnut crop.

For two of three big nut crops, China is a top destination but now saddled with huge double digits tariffs imposed by China responding to the latest Trump tariffs.Not walnuts since we no longer sell into that market.

Arguably, a major threat to pistachio exports comes from China who last year took about 33% of our exports. Also almonds have counted on China as a major destination for shipments but are now in decline.

California exports of almonds to China so far this season is half what it was during the same period in the 2023 crop year – 44 million pounds vs 86 million pounds.As of March 2021 China took 133 million pounds YTD of our almonds.So we are currently shipping about one third the 2021 volume.

As for California walnuts, China in recent years has turned from customer to competitor.China has become a net exporter of walnuts, today producing more than double the tonnage of what we grow.China produces 56% of world tonnage compared to 23% for the US.

So our walnut industry is less affected by the intense 125% trade war with China underway in 2025 since we’ve already retooled to ship product around the world to everyone but China.In 2012 China was a top export market for California walnuts.Now we look elsewhere to sell our nuts.

Top destinations for our walnut exports now are the EU including Germany,Spain, Italy and the Netherlands as well as Turkey, Korea ,Japan and Canada – all less impacted by the trade war so far and with strong and growing middle class customers who love walnuts. Canada is an example of the reduced threat from tariffs in that exports of walnuts are still protected by an existing trade agreement.

Not that China has had no effect on our walnut industry. A big crop in China in 2014 led to lower prices for US walnuts that had big crops of their their own leading to overall lower prices.In 2013 the price per pound averaged $1.88 but fell in 2015 to 83 cents,67 cents in 2018, 60 cents 2020, 29 cents per/ lb in 2022 and 43 cents in 2023, all red ink levels.The reduced demand from China has also impacted the overall US walnut market.Domestically and internationally COVID 19 disrupted supply chains and hurt demand,compounding walnut farmers problems.

Last summer we wrote about this disastrous pricing problem with retired Kings County farm advisor Bob Beede. He didn’t mince words.

“Walnut farmers are getting their a– kicked,” says veteran UC Farm Advisor Bob Beede, as small farmers in both Kings and Tulare counties “are rapidly losing their livelihoods.”

Before retiring, Beede says he spent 35 years helping local growers on 40-to-80-acre plots build their businesses but now they are just “going broke.”

Beede still advocates for these farmers, his friends, who are sometimes forced to let their orchards go unwatered and “turn to firewood or maybe mulch.” To clear the land for another crop requires $2,500 an acre to remove but Central Valley farmers have few choices to replace this once staple nut crop.

The problem is price. Walnut growers have seen the average price for their nut fall from $1.80 a pound 10 years ago to just 30 cents a pound last year and now around $35 cents — well below breaking even.

“These guys need a dollar a pound to stay in business,” argues Beede. Rising costs are happening along with the lowest pricing in decades.”

But today, 9 months later Beede says things have turned around and prices are closer to $1/lb right now.

The latest annual report for the California Walnut Commission tells the story.

“A shift in course for our industry is underway. It began in 2022, when the Boards of Directors took the initiative for change and hired Robert Verloop as our new CEO and Executive Director. Robert is an industry outsider with a long history of success working on behalf of growers. Over his first two years, he and the CWB and CWC staff have been in a crisis response mode – addressing the lingering effects of COVID, the 2022 heat-impacted crop and the industry’s all time largest crop and carry in of 964,000 tons in 2023.”

Today the California walnut crop is smaller but healthier, says Verloop with the likely prospect that the current crop will be 100% sold before the new crop is picked. Instead of a big harvest of 840,000 tons to sell as we had in 2023 the current 24′ crop is about 600,000 tons.

As opposed to going on a planting spree of new acreage as they did for years, walnut farmers are pulling more older trees and planting fewer new ones.

Farmers were urged to remove walnut trees (although not an official tree-pull program) to help right size the crop to meet demand across the world similar to what grape farmers have done at the urging of Allied Grape Growers for the removal of 50,000 acres continuing until demand stabilizes.

That has happened here in Kings County where growers have pulled about 3000 acres of walnuts between 22′ and 24′ – acreage today is about 13,400. This winter,farmers likely pulled more trees that we should see in a May LandIQ report.

The Walnut Commission says 17,987 total acres were removed in the 2024 season. The average age of removed orchards was 26 years old but an equal or even higher number of trees statewide were abandoned bringing the total fewer acres to 36,000 as of September 2024.

As of 2021 California had 445,000 acres of walnut trees both producing and non-bearing and today it stands about 364,000 acres or a loss of about 80,000 acres of trees that turned into firewood.

California walnuts also saw recovery from the drought with Verloop commenting that we’ve had two good snowpack years and better rainfall that have replenished the groundwater and have provided “deep soil benefits”.The industry actually caught a break when an irregular bloom this past year reduced the size of the 24′ crop.

Turning the Corner

Again, the latest annual report from the Commission suggests a brighter future.In a nutshell Verloop says he is “cautiously optimistic”.

“The industry has faced many challenges over the past few years, but there is a sense that we are turning the corner in a positive direction. Walnut trees have recovered from the drought, with winter rains improving the overall health of orchards, thus enabling our growers to produce high-quality crops. Prices rebounded for the 2023 crop with the season ending much stronger than where we started, setting up for improved grower returns versus prior years. But we know return per acre is key, and growers with light crops will continue to struggle, even with the strong prices.

Short-term trade demand will continue to be heavily influenced by global supply dynamics. The California walnut industry will continue to expand distribution in existing markets, when and where favorable pricing exists. New market development partially funded by the USDA Regional Agriculture Promotion Program (RAPP) will help expand the reach of our walnuts and make us less dependent on low-return markets.

As we look forward to the 2024-25 season, current global demand is strong, driven in part by the lighter crops in Chile and the U.S.; at the same time, marketplace dynamics and logistics have returned to pre-COVID conditions. Due to our light crop and low inventories in key markets, we will be able to sell the entire crop and anticipate very low carry-out volumes. This puts the industry in a favorable position for 2024 and 2025 and will provide a more stable supply that buyers can rely on.”


Faraday Future promises roll out of lower cost electric car

April 30,2025

At the beginning of a full fledged trade war with China, the Faraday Future car company looks to turn tariff pressure into a strategic opportunity, they say hopefully.

In recent days, Faraday Future global President Jerry Wang met with Eric Trump, the president’s son, to lobby him in Washington to consider a “US-China EV bridge “as they shape automotive policy.

Faraday Future hopes to roll off a lower cost electric vehicle called the “Super One”, expected to debut in late June with pre-orders to follow, says the company website. The car would be assembled in Hanford, the LA company’s only US manufacturing plant. The parts are shipped in from China now in the middle of a trade war with more than 100% tariffs in place.

It isn’t clear how the company would be able to launch this new model without an exemption from the Trump administration. Bringing in Eric to the conversation may be part of that strategy. Wang drove an FF91 car to Washington to lobby the Trump administration.

Another part of the strategy appears to be to gather support from California politicians, including Hanford’s Mayor Lou Martinez and Anthony Rendon, the former speaker of the House for the state of California who both commented at an April 28 LA ceremony.

The company statement says” Lou Martinez, Current Mayor of Hanford, CA stated: “I want to personally congratulate YT Jia in his new role as Co-CEO of FF and wish him and the Company much success. The ramp up of the FX production is especially exciting, and Hanford remains committed to partnering with Faraday Future to bring connected AI-rich vehicles to the world. We look forward to the day when FX vehicles are delivered from Hanford.”

Wikipedia points out that Jia Yueting (YT) is a Chinese businessman who is the founder of Leshi Holding Group and the former CEO of Faraday Future.

Jia has been involved in several financial controversies related to his companies. In October 14, 2019, he filed for bankruptcy with a personal debt of over USD $3.6 billion.

But now, as of April 24th, Jia was appointed Co-CEO of Faraday Future.

Anthony Rendon commented. “Notably, FF stands as the only domestic automotive company with both its headquarters and manufacturing facilities located in California. In an era where many enterprises are relocating manufacturing to other states or overseas, FF’s steadfast commitment to California reflects its trust and dedication to this land of innovation.

“California has consistently been a staunch supporter of global new energy initiatives. As the world’s fourth-largest economy, the state boasts a comprehensive green policy framework and unwavering belief in free trade and global collaboration. FF’s ‘Global Automotive Industry Bridge’ strategy exemplifies the globalization and open cooperation spirit we advocate.”

In the meantime the company stock remains under pressure, required by NASDAQ to maintain a value of over a dollar share. The stock today is at around $1.20.The firm’s stock has gyrated wildly over the past year from a high of $156 a share down to $0.83.

Hanford has been waiting for jobs since FF took over the former Pirelli Tire plant, a one million sf building in the Hanford industrial Park.In August 2017, the company announced that it had signed a lease for a former Pirelli tire plant in Hanford, California. The company said that it could employ up to 1,300 people over time and build up to 10,000 cars a year at that location.

Since then they have built just 16 cars, the $300,000 FF91 high end electric car. Still, hope for success springs eternal.

Faraday Future Inc. is considered an American startup technology company founded in 2014 focused on the development of electric vehicles. Based in Los Angeles, California, it began producing vehicles in 2023 and markets them in the United States and China. The company delivered a total of 16 vehicles by January 2025. After two funding rounds in late 2024 totaling $60 million, the company announced it will pivot to its second brand, Faraday X, selling AI-EVs (now called Super One) that would be priced between USD$20,000 to 50,000.

April 30 announcement

On April 30, Faraday Future announced that” it has signed the first binding business-to-business (B2B) pre-order agreement, which includes a non-refundable deposit and a non-binding reservation for 1,000 units of the Company’s highly anticipated FX model, the Super One MPV (Multi-purpose vehicle).

The pre-order was placed by New York City-based automotive dealership, 129 Auto Sales Corp., doing business as JC Auto. It is paying a $100,000 non-refundable deposit, which can be used toward the purchase of FX vehicles, to secure priority delivery of up to 300 FX vehicles, subject to an additional payment. This reservation reflects positive market feedback in the U.S., including by East Coast users. JC Auto plans to establish a premium fleet of up to 300 vehicles that covers the New York area using the FX Flagship model, Super One MPV. The remaining reserved vehicles would be for additional fleet purchases or for users that JC Auto identifies. It also signifies a key milestone in FF’s Global Automotive Industry Strategy and high potential of its “four blue ocean markets” in the U.S. AIEV market.”

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Tulare County to lose GreenPower Motors electric bus assembly plant

About nine years ago Tulare County officials were excited to announce that Canada-based GreenPower Motors would open a California electric bus manufacturing plant in Porterville bringing potentially hundreds of jobs to the area.

Fast forward to late February 2025 and you can mark the end of that dream as the publicly-traded company announced some news on their quarterly conference call.

“On the West Coast, GreenPower finalized plans to expand its California manufacturing footprint in one facility located in the Inland Empire. “Consolidating our operations from three separate locations and five different facilities spread out through California to one larger facility will allow for more cost savings and increased efficiency,” Riley stated.”

The consolidated site is in Riverside.So Porterville will close.

GreenPower’s assembly facility in Porterville is located at 90 West Poplar.They lease the facility after promising to build and own a state of the art manufacturing plant years ago but never following through.In 2017 they announced “GreenPower owns 9.3 acres of land across from the Porterville Municipal Airport. The Company is in the process of constructing a two-story office building and a manufacturing facility comprising a total of 144,000 square feet.” They never closed on the land purchase.

A 2016 editorial in the local paper welcomed the company to Porterville and laid out a rosy scenario.

“City officials said the company will employ as many as 60 workers at the start, but could grow to more than 1,000 employees. The jobs are factory jobs with good pay and benefits.

City manager John “Lollis said the company plans to grow in phases with more than $10 million being invested locally over the next two years.”

Instead of expanding in Porterville, the company has opted multiple times to build manufacturing plants in other parts of the country, including West Virginia and in Charleston. One report says the company had 116 employees as of March 2024, company wide. The number that works in Porterville is thought to be around 20.

The firm has faced financial problems in recent years, dependent on key components of their buses and vans supplied from China now in an active trade war with the United States facing tariffs.

Yet another problem: the Trump administration is no fan of subsidies for electric vehicles which is a key factor in GreenPower’s business strategy.

Still over the years GreenPower has sold electric school buses and vans to a number of California school districts, municipalities and airports including in Porterville, in Cutler Orosi,Terra Bella and recently to Los Banos.

As of April, GreenPower Motors has problems with its listing on the NASDAQ stock exchange with its stock today down to $0.42, well below the one dollar threshold needed to keep their NASDAQ market listing.

The company announced “Pursuant to the Nasdaq Rules, the Company announces that is has received a notification letter from Nasdaq on April 1, 2025, citing non-compliance with Listing Rule 5620(a) for failing to hold its annual general meeting of shareholders within twelve months of the fiscal year ended March 31, 2024. The Company anticipates that it will regain compliance by holding its annual general meeting on May 23, 2025.”

SGMA may worsen dust storms

1930s Dust Bowl photo

A new study published in the journal Communications, earth and environment says the Central Valley accounts for about 77% of total fallowed (unplanted) land in California and is associated with about 88% of major anthropogenic dust events,caused by people’s actions.Local residents are well familiar with blowing dust and this paper says it’s getting worse.

Dust can carry infectious soil-dwelling fungal spores, which cause coccidioidomycosis (Valley fever) when inhaled. The Central Valley is a hotspot for coccidioidomycosis in California, where incidences have increased by 800% between 2000 and 2018, and dust exposures have been linked to increased infection risk.Previous studies showed that substantial fractions of dust deposited on Sierra Nevada snow are from the Central Valley and that the deposited dust can change snowmelt timing over the Sierra Nevada and substantially impact California’s vulnerability to water resources.

Among sources of dust emission, agricultural lands remain a key contributor, where poor management and practices can result in a substantial wind-blown dust event or even a major dust storm. For example, farming techniques and practices to conserve water over idle and dry agricultural lands were linked to increased soil erodibility and, eventually, the “Dust Bowl” of the 1930s.

Furthermore, substantial wind-blown dust from agricultural lands can cause fatal highway accidents by impairing visibility, such as in California’s San Joaquin Valley in late November 1991.

Now scientists are noticing another factor that seems could lead to more dust problems. California’s Sustainable Groundwater Management Act (SGMA), instituted in 2014 to bring groundwater basins into balance in the next two decades, would require between 0.5 and 1 million acres of irrigated agricultural land to be fallowed. During dry conditions, these fallowed lands may have loose top-layer soil that, under strong surface winds, is susceptible to wind erosion, resulting in dust particles in the atmosphere An example of this connection between fallowed lands and dust activities occurred on 11 October 2021, across Stanislaus and Merced Counties, California.

” If up to 1 million acres of additional agricultural land were to be fallowed under SGMA and not transitioned to land uses that inhibit windborne soil erodibility, it could substantially increase the number of dust storms across California’s Central Valley.”

The study found that the percentage of these cropland areas fallowed between 2008 and 2022 is substantially higher in the Central Valley region than in any other region in California. This fallowed land coverage peaks at about 50% in some parts of San Joaquin Valley and Sacramento Valley, with the largest fallowed areas occurring in Kern (918 km2), Fresno (790 km2), and Kings (663 km2) counties in San Joaquin Valley.

Overall, about 77% of all fallowed land areas in California are in the Central Valley region. Fallowed land tends to to have a higher surface temperature and particularly during drought months, has drier conditions more susceptible to wind erosion.

The Californian dust burden has a double-peak seasonal cycle, with one in the Spring (April/May) and the other in the Fall (August/September.

Between 2008 and 2022, the dust burden increased about 36% per decade of the climatological mean when averaged over the Central Valley region.

Aerosol events measured at Fresno often precede aerosol events at the other stations east of Fresno, with a higher correlation with the measurements at the Sequoia station, which is southeast of the Fresno station where dust particles build up against the Sierra.

SGMA concerns

The study found that California’s implementation of the Sustainable Groundwater Management Act (SGMA), could lead to increased land fallowing and exacerbate dust emissions in a region with poor air quality. Hence, while SGMA, which is crucial for long-term water security for the Central Valley, may ameliorate groundwater issues, maladaptive solutions such as widespread land fallowing and increased airborne dust may result in negative impacts on public health—including disadvantaged communities such as farmworkers.

Balancing groundwater and agricultural sustainability, as well as the well-being of both communities and ecosystem benefits, has been part of the proposed implementation central to SGMA81. Our study suggests that the potential secondary SGMA impacts of land transitions on air quality should also be considered in ongoing discussions of multi-benefit land transitions.

“While SMGA land transitions are likely to take on several forms, including the use of land for habitat and renewable energy, intentional efforts to reduce anthropogenic dust emissions (e.g., landscape restoration and cover cropping) may be needed to reduce anthropogenic dust emissions.”

Perhaps offering incentives to restore fallowed lands could benefit everyone.

Dairy industry cuts artificial colors from School Lunch products

The International Dairy Foods Association (IDFA) has announced a new voluntary initiative to eliminate artificial colors from dairy products sold in K-12 schools. Under the “IDFA Healthy Dairy in Schools Commitment,” milk, cheese, and yogurt provided through the National School Lunch and Breakfast Programs will no longer contain synthetic dyes such as Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5, and Yellow 6 starting in the 2026–2027 school year.

Agriculture Secretary Brooke Rollins praised the move, calling it a proactive step that aligns with what consumers want. Rollins also reiterated her support for reintroducing whole milk in schools, calling this latest effort another positive step toward improving children’s nutrition.

The Environmental Working Group says three colors in particular – Red Dye No. 40, Yellow Dye No. 5 and Yellow Dye No. 6 – make up 90 percent of food dye used in the U.S. More than 36,000 food products sold in the U.S. contain Red 40, according to the Department of Agriculture.

Parents love to ply their kids with “healthy” snack options, and yogurt seems to fit the bill.

Artificial color is sometimes an ingredient in these snacks, though, especially in berry-flavored yogurts. But it may lurk in more unusual flavors, too, such as guava and key lime pie. Flavored low-fat yogurts can also contain as much sugar as the same volume of ice cream, sometimes more.

Other snack standbys are chips and fruit cups. But individual containers of Mott’s Applesauce Strawberry Cups are often made with artificial coloring. So are packaged items made with cherries, such as pies and cheesecake. And make sure to check ingredient labels for chips with “flaming” or “BBQ” or “hot” flavor, since these typically use dye.

Ag Roundup

April 25,2025

Tractor sales stalled

Tractor and combine sales in the US are down over 15% says the Association of Equipment Manufacturers first quarter report. Sales of some tractors like four-wheel-drive farm tractors are down 35% and self-propelled combines are down over 56%, says the association.

Annual report shows major declines in farmland values

The value of much of California’s farmland declined from 2023 to 2024, according to figures published last month by the state’s chapter of the American Society of Farm Managers and Rural Appraisers. Authors of the ASFMRA chapter’s annual Trends report attributed the declines in farmland value to multiple factors, including low prices for many crops, high inflation and interest rates, and overall high operating costs. Farmland subject to groundwater pumping restrictions saw some of the steepest value declines, with farmland in parts of the San Joaquin Valley that depend entirely on groundwater losing more than half its value in the space of a year.

In the northern San Joaquin Valley, for example, almond orchards in white areas lost roughly half their value from 2023 to 2024, according to Janie Gatzman, owner of Gatzman Appraisal in Stanislaus County and co-chair of the Trends report.

Gatzman said almond orchards in the area with reliable surface water lost up to 25% of their value due to persistently low prices, meaning the greater value declines seen in white areas were likely caused by groundwater concerns. “I would say over 25% of the value decline there was fully attributable to SGMA,” she said.

Independent of SGMA, winegrape vineyards in the Central Valley saw sharp declines in value due to a historic drop in demand for wine during the past few years.

Vineyards in the Lodi area lost 35% to 40% of their value from 2023 to 2024, Gatzman said. News thanks to California Farm Bureau.

Friant contractors get 100% allocation

Friant Division contractors’ water supply is delivered from
Millerton Reservoir on the upper San Joaquin River via the
Madera and Friant-Kern canals. The first 800,000 acre-feet of available water supply is considered Class 1; Class 2 is considered the next amount of available water supply up to 1.4 million acre-feet. Recently the Bureau of Reclamation increased the estimated contract amount this season to 100% of Class 1 and zero for Class 2.

Cotton farmers face planting decision

California cotton farmers face a critical decision of how much cotton to plant this year given the uncertainty over tariffs on their product. Cotton Growers Association President Roger Isom says he has fielded regular calls from farmers wondering what the prospects are.”It’s all up in the air.”Currently China has a retaliatory tariff on US cotton. “We should know by May 1 what the planting acreage could be this year” says Isom, hoping to have some clarity on whether the on-again off-again tariffs will impact the price.In 2024, U.S. cotton exports to China were worth $1.49 billion. If the China market is too expensive, farmers hope to sell more to India.

Undocumented farm workers could remain Trump suggests

During a recent cabinet meeting, President Trump announced a plan to provide some leeway for farmers amid his broader immigration enforcement efforts. Under the proposal, farmers could submit letters supporting certain undocumented workers, allowing those individuals to remain in the country temporarily for work, leave the U.S., and then return legally.News from Citrus Mutual

Mexico accounted for 91% of total U.S. fresh tomato imports in 2023
Trump imposes 21% tariff

The Trump administration is planning to slap a nearly 21% tariff on most of the tomatoes imported from Mexico. The tariff will be imposed on July 14, near the start of peak tomato season. In a statement, the Department of Commerce said it intends to withdraw from a trade agreement with Mexico. The deal signed back in 2019, had averted an anti-dumping duty on Mexican tomatoes. However, US authorities now say Mexican tomatoes are unfairly priced and such an agreement has failed to protect domestic tomato growers. News from The Packer.
Crops that cannot be mechanized are moving to lower wage countries. Most US asparagus, bell peppers and cucumbers are imported, as are most fresh tomatoes and a rising share of berries. Mexico, where farm wages are a tenth US levels, is the source of half of US fresh fruit imports and three-fourths of fresh vegetable imports.