Ag Alert is the newspaper of the California Farm Bureau Federation, reaching Farm Bureau agricultural and collegiate members. Agricultural members are owners and decision-makers on California farms and ranches. The California Farm Bureau Federation is a non-governmental, non-profit, voluntary membership organization whose purpose is to protect and promote agricultural interests throughout the state of California and to find solutions to the problems of the farm, the farm home and the rural community. Farm Bureau is California's largest farm organization, comprised of 53 county Farm Bureaus. Farm Bureau strives to protect and improve the ability of farmers and ranchers engaged in production agriculture to provide a reliable supply of food and fiber through responsible stewardship of California's resources.
Immigration measures Bills in Congress aim to boost farm workforce
Shrinking cotton California production continues to decline
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www.cfbf.com • www.agalert.com JULY 26, 2023
Field Crops ® Vegetables ®
special reports
By Ching Lee After earning record-high milk prices in 2022, dairy farmers have seen their earn- ings plummet in recent months, with more operations struggling to stay in business and some closing their doors for good. Their plight has prompted comparisons to the 2009 economic crisis that forced droves of dairies into bankruptcy. Some say it may be worse this time around due to additional inflationary pressures and higher interest rates that make it more costly for businesses to borrow money. “This is a real downturn,” said San Joaquin County dairy farmer Jack Hamm. “These last two months have been every bit as bad as 2009. There’s dairies for sale every week.” In 2009, dairy farmers faced an un- precedented financial catastrophe as the global recession took hold. With an abrupt decline in export market demand and an oversupply of milk in the world market, milk prices tanked. At the same time, dairy farmers were paying histori- cally high feed costs. While milk prices were lower in 2009 than they are now, Hamm pointed out that overall production costs were “so much lower” back then. Today, not only are dairy farmers paying more for feed, but all their other costs—including for labor, fuel and fer- tilizer—have skyrocketed. “It’s tough right now to make ends meet,” Hamm said. “But it’s not the first time we’ve been through it.” Dairy economists and analysts say milk prices have plunged because the slowing economy and higher food pric- es have softened demand for milk and dairy products. Burgeoning milk supplies have not helped. In its report last month, RaboBank noted that global milk production continues to grow, though it’s beginning to lose momentum. See DAIRY, Page 10 Dairies struggle as milk prices fall and costs climb
Employees working for Del Bosque Farms pick and pack organic watermelons in a field in Firebaugh during the second week of July. The state’s melon crop was delayed by two weeks due to cooler temperatures, missing the window to supply supermarkets for the Independence Day holiday.
Melon growers hail crop despite its delay
By Christine Souza California farmers say this season’s mel- on crop was delayed by about two weeks due to cool temperatures and wet fields, which affected early harvest of watermel- ons, cantaloupes and honeydews. It postponed melon deliveries to super- markets before Independence Day, a dis-
appointing development for some growers. “We missed the big marketing window for Fourth of July,” said Fresno County farmer Joe Del Bosque, a farmer, packer and shipper based in Firebaugh who grows organic cantaloupes, honeydews and wa- termelons and operates a fruit stand. “To get fruit in the pipeline for Fourth
of July, you really need to be harvesting by the 25th of June, which is a normal start for us,” Del Bosque said. “We were a little later than normal, but a lot of guys didn’t get started until about the 10th of July.” In southern Fresno County, he said a
See MELONS, Page 14
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Comment.......................................2 Field Crops...............................7-8 Vegetables........................... 11-12 Classifieds........................... 18-19 Inside
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Diverse coalition works to pass ‘effective’ farm bill
By Zippy Duvall The clock is ticking for the farm bill as it is set to expire at the end of September.
the war in Ukraine. Of course, the farm bill covers a lot more than crop insurance. Funding for the farm bill is comprehensive. From voluntary conservation programs to advancing ag- ricultural research, this legislation is an in- vestment in the future of our food system and the health of our natural resources. Through farm bill nutrition programs, farmers also play a role in providing 9 billion meals every year to those facing hunger. Farmers and ranchers aren’t just growing food either. We’re growing jobs in rural, suburban and urban communities alike. Did you know that U.S. agriculture supports 46 million jobs across the food and agriculture sectors? When you consid- er there are just over 2 million farms in this country, that yield is amazing. All this just skims the surface when it comes to the impact of the farm bill. We hope this campaign will engage a broad audience to highlight how the farm bill impacts their families. It’s important for everyone to understand how it promotes the well-being of all Americans by securing our supply of safe, sustainable food, fiber and fuel. I invite you to learn more about the cam- paign at FarmBillForAmericasFamilies. com, and we welcome more groups to join us—from our state and county Farm Bureaus to other commodity groups, to food banks and environmental groups. Congress needs to hear from all of us, loud and clear, on how important the farm bill is for all Americans. (Vincent “Zippy” Duvall, a poultry, cattle and hay producer from Georgia, is president of the American Farm Bureau Federation. This commentary was adapt- ed from July 12 and July 19 editions of his column, The Zipline, which can be found at www.fb.org/the-zipline.)
Farmers and ranch- ers aren’t the only ones with eyes on the clock either. Last week, the American Farm Bureau Federation joined with a di- verse group of ag- ricultural, environ- mental, forestry,
Zippy Duvall
wildlife, nutrition and hunger advocates to launch the “Farm Bill for America’s Families: Sustaining Our Future” cam- paign. Together, we are calling for an ef- fective 2023 Farm Bill this year, and we’re inviting others to join us. We know the farm bill matters for all Americans, and we can- not afford a delay. At Farm Bureau, we are committed to ensuring that the 2023 Farm Bill provides the tools and resources all farmers and ranchers need. Our advocacy work is al- ready in full gear. It’s been all hands on deck, across state and national staff and grassroots mem- bers and leaders, in laying the ground- work for the next farm bill. And you bet- ter believe we will be studying the new bill backwards and forwards to ensure it aligns with our grassroots policies. When we speak as the united Voice of Agriculture, we make a real difference. We also know that when we lock arms across agriculture and beyond, lawmakers take extra notice. Finding common ground with a diverse group of stakeholders is tru- ly powerful in showing everyone how im- portant the farm bill is for our nation. With 260 members of Congress who
The American Farm Bureau Federation has launched a campaign calling on Congress to pass the 2023 Farm Bill, saying farms growing America’s food supply are critical to the economy.
have never worked on a farm bill and 71% of adults saying they don’t know much—if anything—about the bill, now is the time to engage with consumers, leaders and lawmakers alike. August recess is just around the corner here in Washington, D.C., starting on July 31 for the House and Senate. While the halls of Congress will be quiet as members clear out until September, this is a busy time for them to be visiting their home dis- tricts, meeting with the men and women they represent. It’s also a prime time for Farm Bureau grassroots members to en- gage on top issues for agriculture as our senators and representatives will be right in our hometowns and neighborhoods. Let’s work together to engage our law- makers and help them make the most of their August recess. And let’s send them back to Washington with a clear assign- ment this fall: to pass an effective 2023 Farm Bill that protects our farms, ranches
and food security for all Americans. We need all Americans to understand the broad impact the farm bill has. That’s why Farm Bill for America’s Families is highlighting how the farm bill is critical to job creation, conservation, risk manage- ment and addressing hunger. The farm bill, as I’ve said often, could really be called a food and farm bill be- cause of its far-reaching impact. Farmers know firsthand how important farm bill programs such as crop insurance are to keeping farms running through tough times of weather disasters, high inflation and supply chain disruptions. Risk management programs have an im- pact well beyond the farm, too, as they help ensure we can keep growing the food, fiber and fuel all Americans depend on. More Americans are recognizing the important role our food supply plays in national se- curity, given the supply chain and global disruptions that we’ve seen, including with
VOL. 50, NO. 27
July 26, 2023
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2 Ag Alert July 26, 2023
Farm labor bills in Congress face a tough path to passage
a path to legal status for undocumented immigrants brought to the U.S. as children. Last week, Tony Gonzales, R-Texas, introduced the HIRE Act, a narrower bill aimed at solving farm labor problems. That bill would extend the length of H-2A visas from one year to three, simplify the appli- cation process and open the program to nonseasonal jobs. The American Farm Bureau Federation, which has not supported the Farm Workforce Modernization Act, endorsed the bill, saying in a statement that it will “make hiring qualified workers easier and
enable farmers to continue stocking the pantries of America’s families.” With the formation of the working group and introduction of new farm labor bills this year, “there is increased attention on this issue” in Congress, said Matthew Viohl, federal policy director for the California Farm Bureau. But in a partisan environment, includ- ing farm labor’s nexus with hot-button immigration issues, can any of the bills become law? “That’s the million-dollar
By Caleb Hampton More than three decades into a congres- sional stalemate on immigration reform, a nationwide farm labor shortage has con- tributed to a flurry of legislative action in Washington this year. Last month, the House Committee on Agriculture announced it was forming a bipartisan Agricultural Labor Working Group to study and propose changes to the H-2A temporary work visa program, which farmers have increasingly called upon in the absence of adequate domestic labor. “The Committee on Agriculture has heard loud and clear from producers across the nation that one of the biggest challeng- es confronting the agriculture industry is a lack of reliable labor,” the committee said in a statement. “This is a complex problem that deserves the focused attention of the Members who hear from producers every day rather than the partisan grandstanding that has plagued these efforts in the past.” This year, there are around 10 times the number of temporary H-2A farmworkers in California as there were a decade ago. But farm advocates say the program, which may be used only as a last resort when in- sufficient U.S. workers can be found, is expensive for farms, requires farmers to navigate a burdensome bureaucracy and is limited to seasonal work, putting it out of bounds for the dairy sector and other year-round farm operations. “Reforms are desperately needed to address this pressing issue,” said working group Co-Chairman Rep. Rick Crawford, R-Arkansas. Reps. Salud Carbajal, Jim Costa and Doug LaMalfa of California are part of the working group. The formation of the group follows Congress’ failure last year to pass the Farm Workforce Modernization Act despite backing from worker advocates and some farm groups. The proposed legislation would stream- line and expand the H-2A program, cre- ate a “certified agricultural worker” status allowing undocumented farmworkers to legally live and work in the U.S., and es- tablish an electronic verification system, modeled on E-Verify, which agricultural employers would be required to use to confirm employees’ work authorization. According to some estimates, close to half a million undocumented farmworkers in California could gain legal status under the act, which would create a path to per- manent residency for long-term certified farmworkers and their families. The legislation would also freeze the minimum H-2A wage, called the adverse effect wage rate, for the next year, and limit rate increases over the next decade. The Farm Workforce Modernization Act has since been reintroduced in the House, but it faces steep odds with Republicans now in control of that chamber. Meanwhile, two immigration bills with farm labor provisions were introduced in the House. In both cases, the authors have emphasized a bipartisan approach.
In June, Reps. Maria Elvira Salazar, R-Florida, and Veronica Escobar, D-Texas, introduced a new version of the Dignity Act, a sprawling immigration bill that includes the main elements of the Farm Workforce Modernization Act. The bill would also authorize funds for border se- curity, reform the asylum process, create
See IMMIGRATION, Page 9
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July 26, 2023 Ag Alert 3
From The Fields ®
From the Fields is a firsthand report featuring insights from farmers and ranchers across the Golden State, including members of the California Farm Bureau. If you would like to be a contributor to From the Fields, submit your name, county of membership and contact information to agalert@cfbf.com.
Photo/Courtesy Jonathan Merrill
Photo/Ching Lee
Jonathan Merrill Monterey County vegetable grower
Kulwant Johl Yuba County tree crop farmer
Everything we could possibly be growing is being planted and harvested right now, so we have everything from transplants of Brussels sprouts going in, di- rect-seeded iceberg, romaine, mixed leaf lettuces, transplant broccoli, transplant celery, carrots and onions. Crops were delayed because of the flooding that happened over the winter. We had a lot of crop loss. We had an immense number of fields that were under water. If erosion didn’t destroy the crop, the contaminated floodwaters did. We had to plant back a lot of those fields that we had lost. We had to play a lot of catch-up. We’ve had huge gaps, huge periods of oversupply and missed windows of oppor- tunities. Getting a good, consistent schedule this season has been really challeng- ing. But we are coming into our turn right now, so we have a little bit more control to pick and choose the crops that need to go in for the late-season harvest. Last week was our very first heat wave of the season, so we haven’t had the typ- ical weed pressures pop up until now. Pest pressure has been very low. Necrotic spot virus was a huge issue in our valley—and it still is—but it seems to be less ag- gressive now than it was last year. I think the cool weather and the floods to some degree delayed propagation of that particular disease. That’s one silver lining in the chaos of this year. It’s hard to know what’s going to be the next big trend in fresh produce. One year it’s going to be cauliflower rice. Then LA decides that drinking celery juice is the next best thing for weight loss, and the whole country will want celery for six months. Next year, it’s kale. It’s always changing depending on what’s in the ethos of the health culture. Probably the biggest thing we struggle with is knowing where demand is going to come from.
Everything is late this year. Cling peach harvest started about two weeks late. We started harvest last week. It’s going well. The fruit in some varieties is a little small this year because of the weather and the hot days we had. When the temperature goes up to 95 or 100 degrees, they just stop growing. July and August are really busy, and we will stay busy until the end of October. We are getting ready to harvest prunes and almonds in August. They will both be about two weeks late, too. Peach harvest will go into September. Walnut harvest will probably start the first week of October. So far, we have plenty of labor. Most other growers use farm labor contractors. I personally don’t. I have my own guys—about 40 people—who work almost year- round for me. During harvest, they bring their families. The price for cling peaches is very good this year. The (California Canning Peach Association) does a good job negotiating a price. Last year’s price was good, too. The prices for nuts are really bad. As a farmer, you always look at the market and see this crop or that crop is not doing too well; the future doesn’t look very good, so let’s change and go into something else. My grandfather started farming here in 1924. I got involved right after college, in the 1970s, and I’ve been doing it since then. About 10 or 15 years ago, all I had were peaches and prunes. At the time, nut crops were doing well, so we got into al- monds and walnuts. Almond trees take four years to start producing. Walnuts take about five. Some people have taken out their walnut and almond trees. Personally, I’m just going to hang in there. A few years ago, prune prices were not very good. But then the market changed and prices improved. We’re hoping the nut prices will do the same.
Tom Jopson Siskiyou County nursery producer
For the conifer seedling nursery, everything is sown, and we’re trying to grow things pretty rapidly. Douglas fir are already fully grown, so we’re doing “short-day blackouts,” giving them short days to set buds. That started in early July. It works really well for Douglas fir in particular, which is a big crop for us. We are projecting the growth and then adjusting fertilizer and things to get them to the right size. It’s a horse race. You fire the gun and you have 15 weeks or 18 weeks to pull it off. If you get behind, you don’t have that much time to catch up. The goal is to have a lot of them ready to plant by Oct. 1, because if we have rain, people have the option of planting them. Reforestation is a big deal now with all the wildfires. The seed is completely irreplaceable, and it is in short supply. For succulents, the peak for mail-order plants was in the springtime, so the season is winding down. It slows down steadily through the summer and into the fall. Now that we’re past the peak, we spend less time on order fulfillment, and we start propagating varieties that we have to propagate in quantity. There are those that produce offsets once in the year, like the semperviva, which is a hearty rosette succulent. We are starting to propagate large quantities of things because we have more people avail- able. We have something like 700 cultivars. We’re still fulfilling orders. We are swapping locations within the nursery, so that is a big part of what we’re doing—building new facilities and upgrading our facilities to do a better job. For example, we added heat tables and grow lights to improve the rooting of these plants because everything’s done from cuttings. We’re in the process of installing that, which means I’m having to redo the electrical.
Photo/Craig Alan photography
4 Ag Alert July 26, 2023
Zack Stuller Tulare County farmer
We are in the middle of plum harvest, which is about two weeks later than nor- mal. The plum price is good, but demand is slow. The problem is we have a big volume but not a lot of demand. For citrus, such as mandarins, lemons and navels, it was a really late year because of rains and cool weather. Everything is harvested with the exception of Valencias. For citrus, we don’t have a formal crop estimate. It is still early, but the crop definitely looks lighter than last year. In mid-May we did pesticide ap- plications for citrus thrip. Typically, we do one or two applications per year, but this year we did four or five. It seems the efficacy of materials we were spraying wasn’t really good. It is just a tough bug year; it’s just back to back to back. Having enough water is a good thing. We’re having to remember how to deal with it because we start running water down some ditch systems and find leaks. That has proven to be a little bit of a challenge but not something we can’t man- age. We’ve been doing a lot of groundwater recharge. For labor, we have not had problem finding workers to harvest, prune or thin this year. We’ve been pretty fortunate, but having to pay overtime is very expen- sive and is starting to really affect us. As a custom applicator, we are busy applying materials for a lot of different growers. I have to recoup my costs, but because I have to pay four hours of overtime a day, my profitability is severely decreased, and I have to pass that cost onto the grower. We are just going to need to figure out how to farm more efficiently. One possibility would be automated sprayers. They have them on big- ger blocks on the west side. It is doable, but we just need to let the technology progress a little further.
Photo/Tomas Ovalle
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July 26, 2023 Ag Alert 5
Inmate beekeepers raise hives and hopes for future By Christine Souza
Female inmates serving sentences for nonviolent offenses at the Rio Cosumnes Correctional Center in Elk Grove are learning about beekeeping through a first- of-its-kind vocational program that allows them to be outdoors and gain skills for a sweeter future. Hands-on learning happens at the bee yard, a short walk from the correctional center, which houses about 2,500 inmates, including up to 200 inmates in the wom- en’s jail. The outdoor classroom features 10 hives of honeybees. “I just figured this will be a time where I can learn to be more productive within myself. Before I came here, I wasn’t mak- ing the best choices in life,” said Denaysia Thompson, who was serving a six-month sentence for driving under the influence. “When it came to this program, this is one of those ‘half-full’ things where I’ve seen other people do it. Rather than living vi- cariously through them, I figured I’d get my hands dirty.” The Sacramento County Sheriff’s Office launched the Second Chance Beekeeping program in 2019-20, as one of the depart- ment’s many vocational, educational and treatment programs to equip offenders with the tools for successful reentry into the community. The course, which in- cludes some classroom learning, is in ses- sion two days a week. Program instructor Steve Hays, a retired sheriff’s deputy and hobbyist beekeeper, brings 30 years of law enforcement expe- rience and a passion for beekeeping to em- power inmates with skills that could lead to future employment. “I’m trying to give back. I talk to them on a personal level, giving different keys for success and success stories, so just talking to them about how to stay out of jail,” said Hays, who got interested in beekeeping from a mentor, a commercial beekeep- er from Galt, who introduced him to the
At the Rio Cosumnes Correctional Center in Elk Grove, inmate Missy Peavey inspects honeybees as part of the vocational beekeeping program offered by the Sacramento County Sheriff’s Office.
business and sold him his first hives. While there is a vocational beekeeping program for male inmates in California, the program at Rio Cosumnes, in Sacramento County, is the first in the nation for female inmates. “We wanted to give them an eq- uitable stake,” Hays said. Inmates accepted into the program are introduced to basic honeybee anatomy, seasonality of bees, equipment and safety, and the role of different bees in the hive. As the course progresses, they learn more advanced techniques, such as swarm cap- ture, splitting and creating new hives, and raising queen bees. Standing next to one of her assigned beehives, Thompson said, “It’s got our
‘honey supers’ at the top, which collect a majority of the honey. The bottom two hives hold our queen and her larvae and the eggs. That’s pretty much where all the magic happens.” Popping the lid off one beehive, Thompson inspected it for any pests or disease problems. She found the hive to be healthy. “The queen is doing really, really well. She’s producing a lot (of honey) at this time. It all depends on your queen,” Thompson said, affirming that the queen sets the tone in each hive, joking, “That’s everyday life right there.” Prior to prison, she said she worked in construction as a laborer. She plans to
return to the field of construction when her sentence ends, but as far as a hobby goes, “beekeeping is definitely at the top of my list.” Corrie Foutz, who was serving time for a drug offense, said she loves nature and visiting farmers markets. “I was always interested in agriculture,” she said. “I’m not afraid of bugs and just thought the pro- gram would be fun.” Working outside with the honeybees, Foutz said, is a mindful activity that keeps her focused on something other than life in prison. “Working with the bees, I don’t think of anything else. There’s no drama, it’s just the bees,” she said. “It is giving me hope, like maybe there can be more to life.
See BEEKEEPERS, Page 15
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6 Ag Alert July 26, 2023
CALIFORNIA
Field Crops A SPECIAL GROWERS’ REPORT OF AG ALERT ®
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Estimates vary on how much cotton was planted this year in California, which produces 95% of the nation’s pima variety. But figures show acreage has fallen below 100,000 for the first time in a century.
Weather, prices shrink cotton acreage in California By Vicky Boyd
Of USDA’s California estimate, 70,000 acres were long-staple, premium pima varieties that typically net more than double the price of the shorter-staple upland or acala varieties grown mostly in Texas and the South. California’s remaining 13,000 acres are upland varieties, according to the USDA report, and most of those are grown for planting seed because of the state’s near-ideal growing conditions. California produces about 95% of the nation’s pima. Because the variety requires a much longer growing season than upland cotton, Isom said it must be planted in late March or early April. Aaron Barcellos, a partner in the family-owned A-Bar Ag Enterprises in Fresno County, said cold, wet weather along with low prices prompted them to reduce pima plantings to about 750 acres this year. Without those factors, he said they probably would have had double the acreage. “Primarily, we just couldn’t get in on the ground because it was too wet and too cold,” Barcellos said. “And with the price of pima, there wasn’t a lot of encouragement.” The calendar also weighed into the decision. For every day past April 20 that pima
For the first time in a century, California cotton acreage will likely drop to fewer than 100,000 acres due in part to soggy ground at planting and better prices for competing crops. A recent ginner survey by the California Cotton Ginners and Growers Association es- timated planted acres at 99,000, plus or minus 10%. The U.S. Department of Agriculture acreage report, released on June 30, put plantings at 83,000 acres. CCGGA President and CEO Roger Isom acknowledged the organization’s survey isn’t perfect, but he said he couldn’t understand the large disparity. “Quite honestly, it doesn’t make sense,” Isom said. “I think everybody knew cotton acres were going to be down because of the (Tulare) lake flooding and the short planting window, especially for pima, which is what we mostly grow out here. Tomato plantings also are up, and corn plantings are up, so I think a lot of the guys who would have planted cotton went with other crops. But I don’t know how that got down to (83,000 acres).” He pointed to California Department of Food and Agriculture pink bollworm program figures, which tend to be more accurate because the state maps and verifies each cotton field for assessment purposes. The program recently released San Joaquin Valley 2023 planted cotton figures of 93,229 acres, with another 5,059 cotton acres in Riverside and Imperial counties.
See COTTON, Page 8
July 26, 2023 Ag Alert 7
Cotton Continued from Page 7
is planted, Barcellos said a general rule of thumb predicts a 1% yield decrease. In addition, deadline to plant the variety and take advantage of crop insurance is April 30. Instead, the family planted more pro- cessing tomatoes this season because of attractive pricing, and the crop could be planted later. The late cotton planting has Barcellos concerned about harvest. Even if the crop is still growing and setting bolls in mid-Oc- tober, he said he planned to sacrifice ad- ditional yield so they can harvest it before expected rains. “I’m worried about the fall,” Barcellos said. “We have so much riding on this cot- ton being late—and our tomatoes as well. We’ll probably have to cut the (cotton) plants off and defoliate them and take what we can just so we can get across the acres.” With the continuing loss of California cotton production comes the shuttering of more gins—a huge concern for Isom. Once a gin is shut down, it will likely never process cotton again, he said. “One of the things that guys are find- ing is if equipment sits too long, we get people coming in and stealing wire, and that becomes a real challenge,” he said. “I think if a gin closes, you’re not going to see it come back.” In talking to ginner members this year,
Young cotton plants grow in a field near Los Banos. While plantings have dropped this year, California Cotton Ginners and Growers Association President and CEO Roger Isom says more acreage will return in 2024 if cotton prices improve.
Isom said one or two are considering closing. Currently, the valley is home to about 15 gins, which separate cotton fi- ber from seeds. Twenty years ago, 65 to 75 gins operated. Some of the reduction can be attributed to increased efficiencies, as it doesn’t take as many modern gins to process the same amount of cotton, Isom said. But most re- ductions are due to declining acreage. In the late 1970s and early 1980s, cotton was king in the San Joaquin Valley, maxing out at about 1.6 million planted acres. But
cotton lost its luster as prolonged droughts plagued the valley, irrigation water was permanently diverted for environmental demands and other crops offered higher potential returns. In 2022, California farmers planted 134,000 acres of cotton. Whether grow- ers come close to that in 2024 will depend partly on the price of pima at planting, Isom said. “If the price is back to where it was the last two years, we’ll be over 100,000 acres,” he said.
Barcellos also remains optimistic. “It looks like with the reservoir storage and water levels we have, if we have just an average winter, we should have the re- sources to plant cotton,” he said. “What really will determine that is the market,” he added. “Hopefully, we can see this market rebound. If that happens, I could see California being up possibly 50%. If we see a good number on the pric- ing, we could get back to 150,000 (acres).” (Vicky Boyd is a reporter in Modesto. She may be contacted at vlboyd@att.net.)
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8 Ag Alert July 26, 2023
Immigration Continued from Page 3 question,” Viohl said. “Realistically, for this Congress, there are slim chances on most of them.” Yet there may be potential shifts in the political calculus around immigration re- forms as labor costs and worker shortages plague businesses in Republican districts. In May, some Republicans held out on voting for their own party’s border security bill based on its inclusion of a mandatory
E-Verify provision that farmers said would decimate their workforce. Earlier this month, a Florida state law cracking down on the employment of undocumented immi- grants drew criticism from industry groups for driving farm and construction workers out of the state. Meanwhile, the rising cost of the H-2A program has “really started to impact some states that have not traditionally advocated for reform,” Viohl said. “A lot of Southeast states are starting to really feel
the pinch.” An implication of that, he said, is the po- tential for wider recognition that the sta- tus quo “is not sustainable.” Already, the Michigan Farm Bureau changed its stance on the Farm Workforce Modernization Act, joining the California Farm Bureau in supporting it. “We have more states that are saying, ‘Hey, we need to do something about this,’” Viohl said. California farmers have sounded the alarm for years. This year, growers
reported, labor contractors in Southern California are scrambling for workers to pick the state’s avocados, offering em- ployees bonuses to recruit friends. In Napa Valley, the harvest of the region’s re- nowned cabernet winegrapes hinges on employing expensive guest workers. “At some point,” Viohl said, “we have to have some change.” (Caleb Hampton is an assistant editor of Ag Alert. He may be contacted at champton@cfbf.com.)
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July 26, 2023 Ag Alert 9
Dairy Continued from Page 1
according to the latest figures from the U.S. Department of Agriculture. State milk production slipped 1.2% during the same period. Nationally, the milking herd has not shrunk. Total U.S. milk cows stood at 8.929 million head last month, up from 8.915 million head in June 2022, with U.S. milk production expanding 0.2%, USDA reported. “We continue to shoot ourselves in the foot,” said Stanislaus County dairy farmer Pete Verburg. “Most of us are guilty of it: When we have high milk prices, we put on more cows. When we have low milk prices, you put on more cows.” Not wanting to add to the problem, Verburg said he has not increased his herd in 15 years and has been able to keep his business afloat mainly by not accruing any debts. That he grows his own forages also helps, he said. But he acknowledged he won’t be mak- ing a profit under current economic con- ditions, which he characterized as worse than 2009. “In 2009, the banks were still loaning you money, even though you weren’t cash flowing,” he said. After all the dairy bankruptcies and getting burned in the process, banks have learned their lesson, he said. Today, lenders
are less inclined to give dairy farmers oper- ating loans unless they can show how they can stay in business. With no other option—and with cattle prices as high as they are—Verburg said more dairies are selling their cows and get- ting out of the business. “I think you’re going to see a lot of that coming up here in the next couple of months,” he said. That dairies are culling heavier and sending more cows to slaughter may not necessarily help reduce milk produc- tion, he said, as farms are left with their best-producing cows, which could result in more milk. What may reduce the milk supply is the recent heat wave, which he estimated zapped 5% of his production. Heat stress also disrupts cow reproduction. It’s a fi- nancial hit to individual producers, he said, but “it may help the industry in the long run.” Because he grows his own alfalfa hay and silages, Tulare County dairy farmer Tom Barcellos said his biggest expenses are other ingredients in the feed ration, particularly grains and proteins that he must buy. Those costs remain elevated, he said, and “the milk check is not cover- ing everything.” With more water this year, he’s able to farm all his ground, but “that costs
money too,” he said, pointing out that the price of fertilizer and seed has gone up. Though he’s earning a “pretty good price” for his cull cows, he noted the cost to buy replacements to maintain his herd has increased. “If you have any financing, the interest rate has gone nuts, and that’s putting a lot of pressure as well,” Barcellos said. Risk management tools such as for- ward contracts and insurance may help, he said, but there are costs associated with them too, and they can “only do so much.” While other producers may defer maintenance and other repairs on the farm until financial times are better, Barroso of Merced County said upgrades he’s making this year to help cool cows from the heat have helped to maintain milk production. It’s too early to quantify how much, he said, but “there definitely have been im- provements.” He noted his farm lost 20% to 25% milk production last summer without the changes. “We’ve invested quite a bit into that,” Barroso said. “I’m not sure we picked the best year to do it, just because of cash flow and financial issues, but hopefully we’ll start to pay it off when that upswing happens.” (Ching Lee is an assistant editor of Ag Alert. She may be contacted at clee@cfbf.com.)
At the same time, food manufacturers continue to hike prices, as they “have learned that higher profits are to be found in ever-higher retail prices,” even though consumers push back by buying less, said analyst Rob Fox in his May report for CoBank. More than 74% of the state’s milk is used to make cheese and dry whey, or what’s known as Class 3 utilization. The price of Class 3 milk in California stood at $14.91 per hundredweight in June, the lowest since May 2020. In his report last month, Peter Fredericks, market administrator for the California federal milk marketing order, said Chicago Mercantile Exchange futures suggest most dairy product prices may continue to slide before improving in the fourth quarter. With their milk checks shrinking and beef cattle prices remaining strong, dairy farmers have sent more cull cows and calves to auction, which brings more income. “That’s definitely one of the bright spots, and that’s definitely helping us,” said Merced County dairy farmer David Barroso. California milk cows totaled 1.718 million head in June compared to 1.722 million head at the same time last year,
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10 Ag Alert July 26, 2023
CALIFORNIA
Vegetables A SPECIAL GROWERS’ REPORT OF AG ALERT ®
®
Garlic farmers cautiously optimistic after a wet year By Nancy Vigran Garlic harvest is underway in the San Joaquin Valley, and growers say they are enjoying a productive season. “It’s a good crop this year,” said Robert Ehn, CEO and technical manager for the California Garlic and Onion Research Committee. He described the 2023 growing season as “perfect,” adding, “Mother Nature has taken care of us.” California remains the top grower of garlic in the nation, producing nearly all of the supply. But China, the world’s largest garlic producer, continues to dominate the global market, accounting for more than 80% of garlic exports worldwide. “We’ve really been hammered by imports from China,” Ehn said. The companies provide the starter plants that growers use. Starting in early summer, the companies return to harvest the crop, a process that often runs through Thanksgiving. The vast majority of California’s garlic is grown in Fresno County, where the crop was valued at $286 million in the harsh drought year of 2021, down from $396 million in 2020. Water supply “dictates what I can and cannot grow,” said Fresno County grower Mark Borba of Borba Farms. For the past three years, Borba, who grows garlic for Christopher Ranch in Gilroy, has dedicated less than 50% of his farm’s acreage to growing garlic. He planted about 1,500 acres this year, down from the 2,600 to 2,700 acres he used to grow. Garlic is harvested in Fresno County, where most of the state’s garlic is grown. California remains the nation’s No. 1 producer of the bulb, but growers continue to face competition from China, which dominates the global garlic market.
Other local farmers simply could not commit to any garlic acreage during the past few years, Borba said. Some left land fallow or grew a grain crop with a shorter growing season, allowing them to use less water. “It is hard to farm in a desert without water,” Borba said. With continuing snowmelt from the abundance of precipitation the region received this past winter and spring, Borba said he may increase garlic acreage next year. But any increase, he said, will be small due to the general inconsistency of water supplies. See GARLIC, Page 12
During the past 10 years, state garlic plantings have fluctuated between 23,200 acres in 2013 and 2014 to 33,000 acres in 2017, according to the U.S. Department of Agriculture. California growers planted 26,000 acres last year, down slightly from 26,500 acres in 2021. Six companies involved in processing and marketing fresh and dehydrated garlic con- tract with growers each year to produce the crop.
July 26, 2023 Ag Alert 11
Garlic Continued from Page 11
John Duffus, vice president of sales for The Garlic Company in Bakersfield, said demand for domestic garlic has been boosted since the onset of the pandemic in 2020. “The retail market went up with people cooking at home,” Duffus said, noting that increased takeout food orders also in- creased demand for garlic. Food service makes up a sizable portion of buyers for The Garlic Company and oth- er garlic processors. Duffus said the sec- tor’s demand for domestic supplies has continued to increase. The Garlic Company is “in the mid- dle of our fresh harvest,” with mechan- ical harvesting just starting in mid-July, Duffus said. All fresh garlic is harvested by hand. Mechanical harvesting takes over for The Garlic Company’s peeled garlic products, which is used by companies that market dehydrated garlic. Californa growers say competition with China is most acute with garlic that re- quires hand harvesting because China’s lower labor costs undercut the costs to raise the crop in California, where labor expenses continue to rise. In addition, fer- tilizer and fuel costs add to the price. The Garlic Store markets peeled garlic products as part of the company’s goal of
Garlic is grown in a field at Borba Farms in Fresno County. The farm produces garlic for Christopher Ranch in Gilroy. Farmer Mark Borba says he and other state growers have reduced plantings of the crop in recent years in part due to lack of water.
curbing the product waste of fresh garlic, some of which is discarded due to appear- ance problems such as smaller sizing or misshapen bulbs. Decades ago, The Garlic Company de- veloped a way to crack and peel garlic and bottle it without additives. The food service industry embraced the product, Duffus said, as the laborious work of peeling the cloves was already done. The Garlic Company partners with 50 different growers mostly in the south end of the Central Valley. Duffus said yields are better than
expected this year, with enough product to meet demand. He noted freshly harvested garlic and peeled garlic products can be kept in cold storage for months, and this year’s harvest should be perfect to meet the demands of the company’s buyers for the year. Starter plants for next year’s product, including an additional 5% over this year, are currently growing in Oregon and will be harvested starting next month into September, Duffus said. They will be transplanted to California fields starting in October through Thanksgiving.
“The market remains strong,” Duffus said. He said import delays in recent years may have helped boost demand for California garlic. Amid port congestion caused by the pandemic and supply chain disruptions, a lot of imported garlic sat off- shore in containers, potentially affecting its quality, he said. “We’re here and we’re accountable,” he said, encouraging people to “buy local.” (Nancy Vigran is a reporter based in Placer County. She may be contacted via news@cfbf.com.)
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12 Ag Alert July 26, 2023
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