Category: Agriculture

-March 18,2021-

Goshen citrus packing plant in works

A Special Use Permit will allow a fruit packing facility on a 9-acre portion of a 42+

acre parcel, located in the AE-40 zone at 31932 Road 60, Visalia, on the southeast corner of Avenue 320 and 

Road 60 and west side of State Route 99, near Goshen. 2.Surrounding properties contain agriculture (orchards)

and scattered rural residences to the north, west and south. State Route 99 lies to the east. 

The applicant, M Park, Inc., proposes  relocating their Orange Cove plant to the subject site. They propose adding

154,300 s.f. of structures, with a 95,465 s.f. packing area, two cold storage areas (45,402 s.f. and 9,475 s.f.), 3,930 s.f. office and lobby, a four-truck loading dock, a 125,000 gallon water storage tank for fire 

suppression, and four hydrants. 

Building permit applications have been submitted for a new 154,318 s.f. fruit  packing facility

and a new septic system for the facility.

The applicant also proposes grading an on-site stormwater retention basin.Between 50 and 100

employees will work at the facility year round. The applicant stated there is a potential for a night shift and additional employees

 during the peak citrus harvest season. The company is a family-owned corporation that farms

over 1,000 acres in the Central Valley, per their business statement. They service 2,000± acres

of outside ranches. Annual production is 1.5-2 million #40 citrus cartons (40,000 tons). Per the applicant’s Business

 Statement, field bins of oranges, lemons and mandarins are received from  ranches. The fruit is washed, graded,

waxed, sized and packaged. Approximately 2,000 gallons of water is used per year to rinse the fruit. Packet cartons are 

shipped worldwide. 

Valencia crop looks bigger

California’s Valencia orange crop looks larger says USDA at an 

estimated  20 million cartons. Last year there were 18 million cartons.

Ironically this year’s higher crop estimate comes with lower 

bearing acreage – down to 26,000 acres compared to 28,000 acres in 

2019/20. Ten years earlier it stood at 43,000 acres.

This variety fell out of favor until COVID-19 hit and in the past year

growers cant harvest enough to meet demand.

Now California-grown citrus fruit may rise because of 

crop losses in Texas caused by its mid-February freeze. Farmers in

Texas lost much of their grapefruit and Valencia orange crops.

California farms may produce more of both this season, according to 

the new USDA estimate. Government forecasters also expect more

tangerine production in California, but say crops of lemons and navel

oranges could be smaller.

Ventura Coastal adds new capacity

Ventura Coastal is adding new capacity at their 2 citrus plants in Tulare

County. In Tipton the juice maker  has added  acesptic packaging line. In 

Visalia /Cutler the company is under construction with a $8 million freezer

and warehouse. 

Horticulture shrinks in California

USDA reports that horticulture operations in California sold $2.63 billion in floriculture, nursery and specialty crops in 2019, down 9% from the sales in 2014. California sold 19% of the total U.S. horticulture sales of $13.8 billion in 2019, more than any other state. In addition to sales, the number of horticulture operations in California decreased 22% during this time to 1,331, and the number of operations in the United States decreased 11% during this time to 20,655.

-March 11,2021-

California tree nut farmers harvested record crops in 2020. That includes three billion pounds of almonds, an upward revised billion pounds of pistachios- the first time it has reached this level, and 780,000 pounds of walnuts. But as farmers have planted more acreage, prices have dropped.

Almonds this winter are selling for $1.50 lb compared to $4 and 3 dollars a pound in recent years. The crop climbed 20% to a record last year. Walnuts are selling for 75cents compared to $2.50 a pound in 2017.

Pistachio prices are also down but not so dramatically – but may drop to about $2.30 to $2.40 a pound this season from $2.60 in 2019, according to David Magana, senior horticultural analyst for Rabobank. The China trade war continues to hurt exports.

But farmers are planting more trees.Now we have a new estimate of just how many.

Thanks to an aerial survey ordered by the Administrative Committee for Pistachios last summer, Director Bob Klein says they have been underestimating the new plantings by 10% to 15%. Accurate estimates of the number of trees in the ground are critical in trying to figure out the size of future crops with this alternate-bearing nut.

“Now we think all acreage could reach 500,000 acres by the end of 2021″ says Klein.That is up by around 30,000 to 50,000 acres from before the survey.

Pistachio orchards can produce 3600 lbs per acre. With an extra 50,000 acres – crop size estimates could leap 180 million pounds.

Look at the non-bearing acreage estimates after the aerial survey -doubling from 2015 to 2016 to 157k acres,151k in 2018,129k in 2019 and 114k in 2020.

With growth like this, the yearly crop will continue to cycle up and down but climb to 1.5 billion pounds in 10 years or less” expects Klein.

If this is a warning to growers that a large supply could mean lower prices ahead – it also be an opportunity for processors, notes Klein.
“We have the same number of processors we had when I came to work here in 1999 when the statewide pistachio crop was 250 million pounds.”

Several new plants are in the works around the Valley. With more nuts to sell – marketing efforts must redouble. Better get crackin’.

-February 24,2021-

Central Valley navel orange growers are enjoying a better year as of mid-February. Prices per carton are up $4 to 5 compared to 2020 according to figures from California Citrus Mutual. The uptick amounts to a 25% increase depending on size.

Not that everything is rosy says CCM.”Nonetheless, COVID-19 related issues such as the on-going problems at the ports with container availability and shipping delays continue to challenge packinghouses. Another problem plaguing the season is the lack of exports to China. Committee members reported that they did not get the pull that they normally see and attributes this to several factors – COVID-19, a large domestic crop and the influx of Egyptian citrus in the market. On the bright side, exports to Japan and South Korea are being reported as excellent with “demand exceeding supply.”

-February 6,2021-

All Tulare County’s citrus varieties are generating more revenue today compared to past years and the total value of all citrus grown in the county now rivals the value of milk production here. You can probably thank the popularity of Vitamin C, easy peel fruit and ironically – the pandemic.

Milk vs Citrus – who’s on first

The latest Tulare County Crop Report published in 2020 with 2019 numbers sets milk’s value at $1.62 billion, down slightly from 2018. By contrast, the value of all citrus production here was $1.67 billion in 2019.

Milk may be our claim to fame – considered to be the leading agricultural commodity in Tulare County – known as the top milk maker in the USA. Despite all those positives, milk prices have been heading south for some time. In 2019, production fell by 11%. The value of milk in the 2015 Crop Report was $1.71 billion – now down to $1.61 billion in 2019 and expected to go lower in 2020. By comparison, milk production here was valued at $2.5 billion in 2014.

That year was a high for the Tulare dairy sector who received $2.5 billion based on an average of $22 per hundredweight for milk. By 2019 dairymen received just $16.30 per Cwt.

If Tulare County remains the number one milk county in the nation – what about citrus? At $1.67 billion – you bet we are number one here too!

Florida citrus shrinks

Next in line is Kern County at just under $1 billion for citrus.
Don’t even think it could be some county in Florida. Not by a long shot.

All of Florida’s vaunted citrus production was valued in 2019 at $957 million – more than $600 million less than Tulare County!

Florida’s citrus crop is largely processed for juice at a far lower value than fresh-eating citrus. Due to pest problems – citrus greening and other weather issues -the Florida citrus industry is worth almost half of what it was in 2016 when it was valued by USDA at $1.6 billion.

While Florida is shrinking, Tulare County’s citrus varieties are exploding with new product hitting the grocery shelves like those juicy,giant easy-peel mandarins being packed this month in Dinuba – Sumo Citrus. The flavorful fruit, born in Japan, is now grown here.The big chubby citrus looks like its name.

Incredible variety

With help of researchers at the University of California, USDA and groups like Citrus Research Board the industry has grown the citrus category. Want to see the variety? Visit the citrus tasting event at Lindcove Field Station held each December.

Once a novelty, mandarins (tangerines) grown in Tulare County was a small, $14 million industry back in 1994. By 2015 tangerine production reached $191 million with thousands of acres of new trees being planted.By 2019 it was a $550 million category-approaching navels. Spurring the popularity of this fruit is a new variety ripening every month, many in the easy-peel category.This year U.S. production of mandarins is forecast up 5 percent to 882,000 MT says USDA, due to a larger crop in California. Because the tangy fruit is so popular domestically- record imports are also expected this year.

Another citrus that has grown in popularity in Tulare County is lemons – once considered mostly a coastal fruit. Lemon production in the county has grown from $88 million in 2015 to $191 mil in 2019. Now being grown in Tulare County – the seedless lemon.

Mainstay navel oranges too have grown in value from $261 million in 1994 to around $750 million in 2019 in Tulare County.

Comparing 2014 to 2019 – like we did for milk -citrus had a good year at $1.37 billion ( prices were up) that has now grown to $1.67 billion in 2019.

Back on the dairy farm, producers are seeing lower returns.
This past year Tulare County dairymen did not have a great 2020 with the pandemic causing lots of price volatility and mostly a down year. A good measure is the Class 1V milk price- the category that makes up about 70% of the average milk check.For 2020 the average Class IV milk price was $13.46 compared to $16.30 in 2019 and the lowest in five years.

The above chart is for pooled milk marketed by most dairies here. As you can see by this monthly chart – farmers got less for their milk in 2020 .

After starting out strong, markets were blindsided by Covid-19 and shutdowns of key dairy demand channels. These factors weighed heavily on prices. Prices were well above year-over-year levels in January 2020, but by April the economic impacts of the coronavirus were realized. Only by December did prices set recent close to 2019 levels says a USDA report.

By contrast, citrus prices in 2021 are looking up.In January of this new year Citrus Mutual is reporting higher prices for both navel and lemons this season perhaps because the trade war has moderated and the pandemic has boosted demand for immune-building citrus – packed with Vitamin C. Earlier this year, growers also enjoyed a strong Valencia season with better prices. The same dynamic may help the embattled Florida citrus industry this new year as well.

As for milk -don’t forget milk is fortified with Vitamin D -believed to be key in fighting off Covid 19. Both citrus and milk “do a body good.”

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January 7,2021

 

The first snow survey of the 2020-2021 water year is conducted December 30, 2020 at Phillips Station. DWR/2020

UPDATE: Central and So California can expect little rain through end of January suggests forecast models

SACRAMENTO, Calif. – The Department of Water Resources (DWR) today conducted the first Phillips Station snow survey of the season. The manual survey recorded 30.5 inches of snow depth and a snow water equivalent of 10.5 inches, which is 93 percent of the January 1 average for this location. The snow water equivalent measures the amount of water contained in the snowpack and is a key component of DWR’s water supply forecast. While conditions were positive at Phillips Station, statewide the snowpack is just 52% of average for this date.

“The snow survey results reflect California’s dry start to the water year and provide an important reminder that our state’s variable weather conditions are made more extreme by climate change,” said DWR Director Karla Nemeth. “We still have several months left to bring us up to average, but we should prepare now for extended dry conditions. The Department, along with other state agencies and local water districts, is prepared to support communities should conditions remain dry.”

On average, the Sierra snowpack supplies about 30 percent of California’s water needs and the snowpack is an important factor in determining how DWR manages the state’s water resources. Its natural ability to store water is why the Sierra snowpack is often referred to as California’s “frozen reservoir.”

-January 7,2021-
An unexpected increase in major farm commodity prices this new year coupled with the falling greenback are bolstering hopes in the San Joaquin Valley farming community for a better year despite increasing likelihood of continued drought.

 

 

 

 

 

 

 

 

 

Global short supply seen in key commodities like corn and cotton have helped prices surge.This week we are seeing $5 corn and 80 cent cotton in the futures market.US Milk prices have risen as well this week.

All these commodities, important to Kings County, are in short supply due in part to dry weather driving up the price. For cotton, the USDA says this year will be the smallest crop in five years with more drought expected in 2021 with our la Nina weather pattern. Kings cotton acres were down about 20% in 2020 vs 2019.California’s cotton crop is down as well this past fall.

Another factor making fibre scarce – clothing makers are being warned not to buy Chinese cotton due to charges of forced labor.

Corn prices are up too in 2021, the highest in six years with a smaller US crop than expected and dry weather in South America further tightening supplies. Corn prices are getting a boost as well based in Chinese appetite for our corn to feed their huge and growing hog herd.

Meanwhile, exports of US beef are on track for strong start to 2021, also particularly to China

Falling dollar

Helping these US ag exports is a weakened dollar that makes our products cheaper overseas. The closely watched dollar-index that compares the value of the US dollar to a basket of world currencies has dropped to 89.5 – the lowest since April 2018. The US dollar is falling as global financial conditions are improving even as the US Federal Reserve cut interest rates to nearly zero, expanded bond purchases and has established a number of different programs to support credit. Federal spending is also said to stoke inflation in coming months.

Federal spending to prop up the US economy may be playing a part as well with USDA committed this year to buy US-grown farm goods to help the COVID’s impact on the ag economy.

The California Farm Bureau notes that the recent 5,500-page stimulus package signed by the President contains many provisions important to California farmers, ranchers and rural residents with $13 billion in assistance to help U.S. livestock, poultry, dairy and crop farmers recover from COVID-19 disruptions.

Provisions include $1 billion for contract livestock and poultry growers, to cover up to 80% of pandemic-related losses and payments to producers who lost livestock and poultry due to insufficient processing capacity during the pandemic, and includes additional inventory-based payments for cattle ranchers. The bill provided $60 million for meat and poultry processors to help them qualify for federal inspection and interstate shipments.

For dairy farmers, the package includes cash flow assistance for small and midsized dairies, plus $400 million to pay for milk to be processed into dairy products and donated to food banks and feeding programs.

Just this week, CME milk futures jumped, raising prospects of a boost in milk production in the coming months.

Ag reports say the benchmark Class III futures for milk used to make cheese jumped 4.9% on Tuesday in Chicago in their biggest gain since April after the U.S. Department of Agriculture expanded its Farmers to Families Food Box Program. The USDA will buy $1.5 billion worth of food including produce, beef, pork, seafood, milk and cheese to distribute across the country, U.S. Secretary of Agriculture Sonny Perdue said Monday in a statement.

“Weather issues, government intervention and strong export demand suggest the current commodity bull run has further to go in 2021” –Rabobank
Wall of Money?

Meanwhile Rabobank notes that that speculation has had a hand in driving up expected prices writing in a recent report that a “wall of money” is flowing into markets buoyed by the economic stimulus of all this government buying.

“Weather issues, government intervention and strong export demand suggest the current commodity bull run has further to go in 2021,” Rabobank said.

Then there is the impact of the COVID 19 vaccines on all this.

“The dollar is likely to begin a drop of as much as 20 per cent in 2021 should COVID-19 vaccines become widely distributed and help to revive global trade and economic growth” according to Citigroup Inc.

“Vaccine distribution we believe will check off all of our bear market signposts, allowing the dollar to follow a similar path to that it experienced from the early to mid-2000s” when the currency started a multi-year downturn, Citigroup strategists including Calvin Tse wrote in a report Monday.

-December 11,2020-

Milk production up but prices head lower

Even with the recent decline in the number of dairies, milk continues to be the top commodity in Tulare County.Now that California has joined the Federal Order to market milk for Tulare County producers, the county ranks highest in production. For 2019 Tulare County produced $881 million pounds of milk in December, the 3rd highest county in the nation churning out 2.9% of all the milk marketed under the federal order across the country according to government figures.

Tulare County, the largest dairy county in the U.S., marketed 881.6 million pounds of milk in December 2019. That 5.3% of all the milk marketed under the order nationwide. Next door Kings County was the number 3 county nationwide that month.

Pooled milk in Kings County came from just 55 producers this October, down from 65 producers a year earlier.  Tulare producer numbers sank year over year as well from 184 in December 2018 to 167 in Dec 2019.The Tulare crop report for 2019 shows overall milk volume dropped about 10% compared to 2018, a big decrease. There is some indication it has come back since.

And we are pumping out more milk nationwide this fall. California milk production was up 1.2% in October 2020 vs October 2019.Dairymen added more cows but the bigger factor is said to be the continued increase in milk produced per cow -likely due to improved techniques and genetics.

The Milk Advisory Board says California dairy operators improved milk production per cow by 55% from 1986 to 2016.

Local dairy operators were buoyed by the surprisingly good prices they got this summer based on record cheese prices.

Dairy product consumption reflects lower interest in fluid milk with high interest in cheese in the past few decades (see chart).

While restaurant sales are way down grocer sales of milk products are way up. To help out the US dairy industry, the government has been buying hundreds of millions of dollars of milk commodities and distributing them in USDA food boxes. Producers would rather have better prices than government subsidies.

For dairymen it has been a rollercoaster ride  and now prices are heading south. Butter prices this month are the lowest since May and 50 cents lower than a year ago.

Class III futures that were in the $23 range settled at $15.98 for December – more than $5 below what they were in late October.

Nonfat dry milk prices are lower those year vs last as well.- around $1.08. While holiday bakers are still using butter – the suppliers have plenty. Producers are hoping the low value of the dollar this fall will help in future to increase dry milk powder export sales around the world.

Class IV milk, Butter, butter-based spreads and dry products like whole milk powder and nonfat dry milk is where two thirds of the milk goes to so the Class IV price is closely watched. It’s down as of October in California to $13.48 according to the administrator of the California Milk Marketing Area compared to $16.39 pr cwt in October 2019. Today’s price is just above break even and no reason to cheer.

Bumblebees get no respect

A court in California recently ruled that the state lacks authority to list four types of bumble bees as endangered species, a win for almond and citrus growers. Farmers sued to block what was a pending Fish and Game regulatory action.

The court could not agree that insects including bees are covered  by the endangered species act. The Center for Food Safety and Defenders of Wildlife disagreed. They hope the state will appeal.

“Little critters like bees are critical to our food supply and should merit protection just as much as something charismatic as a salmon or kit fox or wolf or sea otter,” says Kim Delfino, California program director for Defenders of Wildlife who blames a decline on habitat loss, pesticide use as well as  disease.

But Casey Creamer, executive director of California Citrus Mutual, says listing insects will greatly disrupt farm practices, such as pollinating crops that rely on honeybees.

“I would say citrus growers would no longer allow any beekeepers to store bees on their property,” Creamer said. “You can’t take the risk of killing one if it’s an endangered species. I think it’s a very dangerous precedent if we start listing insects.”

The case is Almond Alliance v. California Fish and Game Commission. The Sacramento Superior Court ruled this month  that the State of California lacks authority to list four threatened bumble bee species as Endangered under the California Endangered Species Act (CESA).

Orange growers see good navel prices early in season

California Citrus Mutual reports early season prices for navel oranges are good for a change. Prices per carton are $ 2 to 3 above the average of recent years. CCM reported to members that “opening week prices were higher than last season. The quality for the beginning of the season is excellent and improving with each passing week.”

New to town – Ono Hawaiian BBQ ! Oh Yes

Mooney Boulevard will see Ono Hawaiian BBQ drive-thru in coming months next to Habit Burger – one of 3  commercial developments being built on the former COS parking lot by JR Shannon. Also at the new center at Mooney and Myrtle the first Dutch Bros coffee store to open in town- expected in the next few weeks. A third storefront is under negotiation, he says.

Ono (pronounced Oh No) is a small but growing chain that offers a fusion of Hawaiian, Japanese, Korean and American dishes, typically with steamed rice. They recently opened in Fresno -their 93rd location with 10 more restaurants slated to open across California and Arizona later this year. With a location in Bakersfield the company is also opening soon in Delano.

-November 25,2020-

California Farm Bureau

The pandemic may have put a damper on big holiday gatherings, office parties and other social events, but farmers and food marketers say they still expect people to eat—and have worked to keep up with shifts in demand.

With the recent surge in new COVID-19 cases, most California counties have implemented the state’s most restrictive safety measures. Health and government officials have urged people to avoid nonessential travel and to keep get-togethers small this holiday season.

How these developments impact holiday food purchases remains unclear, said Bill Schiek, a dairy economist and executive director of the Dairy Institute of California.

“The bottom line is we just don’t know how folks are going to respond for certain this holiday season,” he said.

Regardless of whether or not people will scale back gatherings, Schiek said he expects they will still want to make and eat their traditional holiday fare. They may not cook huge quantities, he said, but there might be more people cooking at home this season, which will affect demand for dairy products.

“We’re still going to have food. We’re still going to do the dishes that we normally do,” Schiek said. “We just may have more leftovers and we may be freezing stuff.”

Demand for big turkeys is down 5% this year, while demand for bone-in and boneless turkey breasts is up 5%, said Bill Mattos, president of the California Poultry Federation. This could be an indication people are “trying to get a little less meat,” maybe because they’re having smaller groups to feed, he said. Turkeys weighing 12 to 18 pounds have been the most popular size, and Mattos said he does not expect that will change this year, as people often buy Thanksgiving turkeys anticipating leftovers.

Though the pandemic has put “a little interesting spin” on the holiday marketing season, Mattos said he doesn’t think people will change their shopping habits too much, “because we’re still going to see gatherings, maybe not big, but people are still going to probably want whole-body turkeys.”

“I think we’re going to see brisk sales for the California bird no matter what, just because they always go first and we only can supply 35% of the consumption in California,” he said. “We don’t believe we will have a surplus of turkeys from California this year.”

Thanksgiving may boost demand for turkeys, but the business has been on a downward trend, Sacramento County turkey farmer Ken Mitchell said. After two years of reductions, he said, “the forecast is we’re going to cut back,” noting he’s producing 19% fewer birds this year.

With his region being such a tourist destination during the holidays, San Diego County egg producer Frank Hilliker said pandemic-related restrictions have pummeled his restaurant clients, who do “a ton of business this time of year.” Food service accounts for about 65% of his egg sales, which are down more than 50%, he noted. Though his retail sales have climbed about 10%, he said, he’s trying to reduce cost and lower production by delaying replacement birds and buying fewer eggs from other farmers.

As in past years, Hilliker said he expects in-home egg consumption will rise as people eat more hot breakfasts when temperatures drop and holiday baking takes off.

As a maker of sparkling wine, Eric Donaldson said his business in San Joaquin County was “gaining so much momentum” before the pandemic lockdowns, with his busiest months in January and February, until he was forced to close his tasting room. More recently, he began holding outdoor tastings and flights by reservation, he said, but “we’re not getting tourism.”

Donaldson also makes custom sparkling wine for other wineries, and he said that side of the business has not changed—though he expects production will drop next year, as his clients’ tasting rooms are slow to move product and there’s less need to process new wine. At the same time, his wholesale business to a local grocery store has increased, he said.

As a business owner, Donaldson said he’s been “reactionary, because it’s so unpredictable what’s going to happen.” In the meantime, he said he’s working on equipment to make it run better so when he can reopen his tasting room, “I’ll be in a good position to handle it.”

Sales of wine and spirits typically rise during the last quarter of the year, said Tom Fantham, chief commercial officer for Napa County-based Trinchero Family Estates, and with the growth of in-home consumption this year, he said he doesn’t anticipate people will downsize their purchases this holiday season. People will still celebrate, he added, albeit in smaller gatherings or in their “bubble groups,” and they will continue to buy wine and spirits.

Recent trends in wine consumption appear to relate more to the pandemic and “our new normal rather than holiday shopping behavior,” Fantham noted.

More people are trading up in size, with the 1.5-liter bottle seeing strong growth, said Kent Mann, Trinchero’s vice president of operations. Others are trading up in price, Fantham said.

“These are likely people that used to go out and spend money regularly in restaurants and are now spending more on wines they’re enjoying at home,” Fantham added.

With the state’s almond crop expected to top 3 billion pounds this year, Mike Briano, vice president of sales and marketing for Harris Woolf Almonds in Ballico, said almond prices have stayed at low-enough levels to allow buyers to continue using the nut in their products and to innovate with it. For this reason, almond marketers have seen “record months,” he said, adding he remains “bullish on the future of almonds and nuts in general.”

“The fear is everything is kind of in a standstill, but we haven’t seen that,” Briano said.

There have been some shifts in how and what people are buying. For example, some buyers who used to make larger purchases now buy only what they need so they don’t sit on product for which there might not be demand after the holidays, said Kevin Souza, Harris Woolf sales and marketing manager. More retailers are seeking larger-volume items as shoppers stock up, and that could drive demand during the next few months, especially if there’s a new wave of infections and people are shut up at home, Briano said.

“I think that’s probably one of the bigger reasons why people are grabbing so much supply and shipping numbers are up,” he added.

-November 24,2020-

Valley farmers have had a tough time this year and those who work on those farms are fewer in number. In the 4-county South Valley, ag jobs are down 20% year-over-year – worse in some counties.  EDD reports that in Kern, Tulare, Kings and Fresno counties there has been a loss of 33,000 jobs comparing Oct 2020 to Oct 2019- 164,500 in Oct 2019 vs 130,900 this October. By comparison non-farm jobs have declined 9% in this region.

Kern County leads the pack in the decline of farm jobs- down 30%. Kings County farm jobs fell from 8300 to 7200 – a  14% decline.

An important California farm customer – the food service and restaurant industry has been devastated by the COVID 19 pandemic.The Produce Marketing Association estimates that 45 to 48 percent of fresh produce tonnage goes to food-service firms, including restaurants, cafeterias and institutional dining, from hospitals to prisons. But much of that sector is shuttered.

Meanwhile the trade war and Covid continues to dampen another major outlet – farm exports  – dropping 3.4% in the latest 3 month report to $2.810 billion from $2.908 billion.

Meanwhile COVID’s big shadow has reduced the number of workers who show up. A quarter of the farm employers responding to a summer 2020 California Farm Bureau Federation survey reported that work days were lost on their farms due to covid-related employee absences.

The federal BLS says employment of low-wage workers fell most due to Covid-19 lockdowns, and 40% of the lost jobs are not expected to return.Undocumented workers have declined in part because of fear of ICE

Farmers will tell you that the higher labor costs is a factor in all this and more use of labor-saving devices will continue the trend. For example, new olive groves will be machine picked.

The fact is that farmers are reducing the acreage of hand-picked, labor-intensive crops like raisins in favor of tree nuts requiring far less labor.

Also to cut costs more farm employers are letting their employees go in favor of bringing them back through labor contractors.

Overhanging the drama more produce is being imported taking away market for California-grown crops

Lastly EDD says there may be a bookkeeping issue.The farm blog Rural Migration News points to the fact that some farm accounting offices are closed, making it hard to prepare and submit employment data and difficult for EDD to contact employers who do not report employment data in a timely way.

November 18,2020

California cotton ginning down this fall

California cotton ginning production is down as of November 1,2020 says USDA. Upland cotton bales ginned this year are 26,050 compared to 38,000 in2019. Pima bales dropped even more from 68,5550 in Nov 2019 to 38,300 this year.

Carrot farmer suports Cal Poly

Cal Poly is set to change the landscape of organic agriculture with a $5 million donation made to the College of Agriculture, Food and Environmental Sciences by Grimmway Farms, the global leader in organic produce and the world’s largest producer of carrots.

With this gift, Cal Poly will expand its emphasis on applied research in organic production and soil health by providing a unique, collaborative platform for academia, industry and government from across California and beyond to come together to advance the organic industry says a news release.

The partnership between Cal Poly’s College of Agriculture, Food and Environmental Sciences and Kern County-based Grimmway, announced recently , will enable research and innovation across disciplines, focusing on real-world issues that directly impact the state’s $10 billion organic industry. The Grimmway Farms donation will be used to launch the Center for Organic Production and Research on campus, as well as build the Grimmway Farms/Cal-Organic Soil Health and Sustainability Laboratories to provide research and teaching opportunities in topics related to healthy soils, water and air.

“With this commitment, the families and Grimmway Farms/Cal-Organic are affirming our belief that agriculture is the economic and cultural cornerstone of our future,” Brandon Grimm, grower relations manager and co-owner of Grimmway Farms and Cal-Organic, shared. “Our company has been a leader in innovative and advanced farming practices since my father and uncle founded the company 51 years ago

Avenal subdivision could get USDA support

Developers of a proposed 120 home subdivision in Avenal are applying for USDA’s Rural Development approval for their project,  proposed by Highlands Diversified, of Fresno. Approval would enable the project to offer  low entry level prices and low interest, fixed-rate level financing without a down payment.  

USDA reports on turkey production, consumption

Americans will eat about 16 pounds of turkey per person this year, an average the U.S. Department of Agriculture says has remained fairly stable for the last few years, reports the California Farm Bureau. California ranks eighth in the nation in turkey production. Most California turkeys are marketed fresh. The USDA says wholesale prices for frozen birds have risen this year, though retailers often offer special prices on turkey for the holidays.