California ag adapts to short water supplies and changing markets
WASHINGTON, Nov. 2, 2016 - After four years of withering
drought in California, hope for a wetter, more fruitful future springs from a
round of downpours across the state’s normally rainier northern half through October
- the first month of its “rain year.” The skies have delivered, from 5 inches
to more than 20 inches, depending on location, which is 200 percent to more
than 600 percent of normal October rainfall. Much of it has poured into the Sierra
Nevada range, which feeds principal reservoirs.
For sure, the state’s southern half remains in a major
drought, and the National Oceanic and Atmospheric Administration’s Climate
Prediction Center now
forecasts La Niña conditions – Pacific Ocean surface temperatures that
imply continued lack of rain in the U.S. Southwest – through fall and winter.
Some believe drought may be the new normal for the
region. Among them is Rob Vandenheuvel,
general manager of the Milk Producers Council, with its offices in the parched
south. “I am starting to feel like this is not a drought, maybe it is just the
climate, and rain will be the exception to the rule,” he says. Drought is just
one of the reasons that the number
of dairy farms is plunging – from about 2,200 in 2007 and 1,900 in 2012,
“to 1,400 and change now,” according to Vandenheuvel, who notes that statewide
milk production has been slipping each month versus a year earlier for a couple
of years..
Just how California agriculture is faring with the
drought conditions economically depends where one looks. On the one hand, the
state had its wettest year since 2010, so dryland crops did better this year in
some northern areas, and releases from reservoirs for irrigation and other uses
were increased moderately from 2015. That allowed for a rebound in production
of water-hungry medium- and short-grained rice, to 559,000 acres, more than
before the drought, for example.
In fact, while acreage of a few crops, including olives,
peaches, figs and hay, have slipped during the drought years, bearing acres of
almonds, the state’s premier crop that sells like hotcakes worldwide, have
swelled to 890,000 this year, up 11 percent since 2011, and may produce a
record crop at 2.05 million tons. Walnuts are up similarly, to probably 300,000
acres this year.
Pistachio acreage has swollen by more than half since
2011, while acres producing other big California crops – avocados, wine grapes,
strawberries – have changed little. Still, grape acres are up modestly and the wine-grape
crush will set a record at 3.9 million tons. On the livestock side, the beef
cow herd, about 625,000, is nearly the same as before the drought.
Nonetheless, a drought doesn’t release its grip with the
arrival of a few good showers, or even a year of above-average precipitation.
The U.S. Forest Service says the forests have suffered terribly: 26 million
trees died from October 2015 to last June in California, bringing the total to
66 million since 2010.
Farmed trees, too, are impacted. Richard Howitt,
economist with the Center for
Watershed Sciences (CWS) at the University of California, Davis, points out
that almond and many other nut and fruit trees, once throttled down by lack of
water, tend to downshift their growth and production for a year, or even
several years.
That’s true, attests Jim Beck, who has raised Christmas
trees for 47 years near Los Gatos, south of San Jose. “The principal problem
with drought years like this is that instead of a normal leader growth of 24 to
30 inches, we’ve seen maybe 16 or 18 in the past year or two. That cuts your
production in half,” he said. His Douglas fir, Monterey pine and Sierra redwood
trees absorb moisture from two to six feet deep, he said, “and one year of
average rain doesn’t really help that. You need some long-term heavy rains to
bring that water table back up.”
On the other hand, as with almonds, the drought hasn’t
thwarted a farmers’ stampede to new varieties of tangerines, which Californians
call mandarins. Groves have tripled in the past decade, and doubled since the
drought began, to 57,000 acres, while orange acreage has fallen by 23,000 acres
through the drought.
Joel Nelsen, president of California
Citrus Mutual, said the American consumers were ready for the no-seeds,
easy-peel mandarins. Orange growers “saw how the demand for mandarins was going
to increase” and used the long drought to their advantage, he said. Producers,
especially in Kern, Tulare, and Fresno counties, plowed out older,
low-producing orange trees that demanded a lot of water and planted mandarins,
which take little water in the half-dozen years growing to bearing age.
Mandarin growers, who included many also switching out of
peaches, plums and nectarines, planted a range of varieties that mature all the
way from now through winter, and they enhanced mandarin traits for flavor,
color and fruit size – breeding handy snack sizes called “Cuties” and “halos.” The young trees are maturing
steadily now, Nelsen says, and California growers will harvest nearly 22
million boxes this year, or six times the 2006 harvest. “Fortunately, right now, demand still exceeds
supply,” Nelsen says.
The California Department of Food and Agriculture’s
annual farm receipts tally has
not strayed far from $50 billion since before the drought and, at $47 billion
for 2015, was still about $3 billion more than in 2011 and 2012.
Howitt, at CWS, expects CDFA may find the sum for 2016
up, “but not by very much.” He is one of the experts who compiles the CWS’
annual reports on the Economic
Impacts of the California Drought for Agriculture. California agriculture
has done well through the drought largely because farmers are resilient and
flexible, adapting to short water supplies and changing markets. He points to
cotton, which has been in declining world demand, surplus supply, and selling
for around 60 cents a pound, well under the cost of production. With vanishing
supplies and spiraling costs for water, he says, San Joaquin cotton crops
couldn’t cover their water costs, so farmers fallowed acres or planted almonds,
walnuts, or other nut or fruit trees instead. The state will harvest just
218,000 cotton acres this year, less than half of the 2001 acreage.
Despite the smart adjustments in cropping in recent years,
Howitt says, smaller receipts for milk, the state’s leading commodity by value,
will limit any rebound in overall 2016 farm receipts. California farmers have
been getting about $15-$16 a hundredweight since the start of 2015, about $6
less than in 2014, and, because of the way a state milk marketing order works,
typically about $1 less than farmers get nationally. With the dwindling number
of dairies, and the state’s total milk production
as well slipping by about 1 percent versus 2015, receipts this year are sure to
be down from 2015’s $6.3 billion.
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