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California 'Farm crisis' predicted
Appeal-Democrat ^ | Friday, February 14, 2003 | Harold Kruger

Posted on 02/14/2003 1:49:22 PM PST by Willie Green

For education and discussion only. Not for commercial use.

Former senator sees bleak future for state

Former state Sen. Jim Costa offered a bleak outlook Thursday for California's "farm crisis," warning "it's more than a cyclical circumstance."

Costa, addressing the Northern California Water Association's annual meeting in Yuba City, said the global market works against farmers in California and the rest of the United States.

"We are competing at world prices," he said, with foreign competitors taking advantage of technological advances produced here that were exported overseas.

"The fact is, all of those technologies are being utilized in South America and Central America and in other parts of the world where labor is far cheaper," said Costa, who served 24 years in the Legislature. He is now an almond farmer.

"You know, a person picking grapes in the Coachella Valley at $9 an hour with health benefits, the same worker in Chile, they may be getting $2 a day."

Costa, a Democrat from Fresno, observed: "You have to wonder what California agriculture is going to look like 25 or 30 years from today."

As the state adds 600,000 people per year, they'll have to find housing somewhere, and as many as 7 million are projected to wind up in the Central Valley, between Redding and Bakersfield, by 2030, Costa said.

"When you couple that with the changes in the global marketplace and offshore production, I don't think any of us with any certainty can predict what California agriculture will look like. In 20 to 25 years, it's going to be much different. I don't think we'll have 7 million to 8 million acres in production."

California agriculture is facing "difficult times," Costa said, noting wineries are going bankrupt and a major agricultural company in his area recently filed for bankruptcy.

"Times are tough," he said. "This is more than a cyclical circumstance. We've had tough times in the past. I think there's a sea of change occurring in California agriculture and probably U.S. agriculture. I hope that I really am off the mark and I'm wrong."

Costa predicted that "the next big crisis after the energy crisis and the budget crisis that no one is talking about right now is the farm crisis, the crisis of the farm economy, and there are very few people, unfortunately, in Sacramento who are talking about it. You see it in your communities; you see it in your areas."

On water issues, Costa said there may be more public-private partnerships in the state to move water to areas in need.

"We're still, no pun intended, plowing new ground," he said. "I think there's a role for the private sector to play, as wholesaler, as financier, working in public-private partnerships to facilitate common-sense transfers that make good public policy sense," he said.

Costa also mentioned the CalFed effort to address California's water needs, saying it may become more of a state effort than a joint federal-state program.

"While we got the funding ($23 million) this year for continued CalFed efforts, what is going to be the future role of federal participation in the CalFed effort," he said.

The state may have to rely on its own bond funds to pay for some CalFed work, Costa said.

"I think it really is incumbent on us who worked together in the past to move sooner rather than later to reach consensus earlier rather than later to have a unified position," he said.

CalFed remains "the best game in town," he said, challenging the "naysayers" to come up with a better alternative.

"I think CalFed is an essential leg on the stool we'll need to stand on for California's interim water needs," Costa said.

North state residents can't ignore the water demands of Southern California, he said.

"I believe we are one state. Southern California is in many ways an absolutely critical part of our state," he said. "We all know that. The fact is their water needs are as important as our water needs."

He suggested that desalination may help supplement the state's water supply, noting that 70 percent of California's population lives within 60 miles of the Pacific Ocean.

Costa voiced some concern about whether the Legislature, in an era of term limits, can address the state's pressing issues.

He warned of legislators practicing "legislation by press release" to grab headlines but not solve problems.


TOPICS: Business/Economy; Culture/Society; Government; US: California
KEYWORDS: water

1 posted on 02/14/2003 1:49:23 PM PST by Willie Green
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To: Willie Green
a person picking grapes in the Coachella Valley at $9 an hour with health benefits

Great job!!! And one that can't be exported.

2 posted on 02/14/2003 2:13:34 PM PST by thinktwice
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To: Willie Green
Agriculture may not be the highest and best use of the land any more. Let the market decide.

Solves some of the illegal immigration problems at the same time.
3 posted on 02/14/2003 2:18:47 PM PST by cousin01
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To: thinktwice
Of course California's having an agricultural crisis - the Democrats have been running the place for five years, now.

They've managed to screw up everything else, why should agriculture be any different?
4 posted on 02/14/2003 2:40:57 PM PST by jdege
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To: farmfriend
bump
5 posted on 02/14/2003 2:48:07 PM PST by Libertarianize the GOP (Ideas have consequences)
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To: Libertarianize the GOP; Carry_Okie; Grampa Dave; forester; sasquatch; B4Ranch; SierraWasp; ...
ping those who care.
6 posted on 02/14/2003 3:58:36 PM PST by farmfriend ( Isaiah 55:10,11)
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To: thinktwice
Great job!!! And one that can't be exported.

Huh?

7 posted on 02/14/2003 4:21:41 PM PST by Ernest_at_the_Beach (Recall Gray Davis)
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To: cousin01
Agriculture may not be the highest and best use of the land any more. Let the market decide.

"Highest and best" is no longer objectively determined. It's a market totally distorted by political forces. The public demands many goods from farmers for which they are not compensated. Under such circumstances, your comment devloves to glib posturing.

8 posted on 02/14/2003 5:42:32 PM PST by Carry_Okie (The environment is too complex and too important to be managed by politics.)
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To: thinktwice
Great job!!! And one that can't be exported.

Wrong...my sister and he husband grow grapes for raisins near Fresno and imports and politicians are about to drive them out of business. Look for thousands of acres of grapes to be pulled up in the near future.

9 posted on 02/14/2003 5:52:49 PM PST by tubebender (?)
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To: cousin01
You act as though free market forces are operating on land use issues. You couldn't be more wrong.

Get rid of all the regulation and extortion due to the endangered species act and farming will not be so expensive.

Anyone who thinks a country can exist by living on the food imports from another country, well, should be more informed of the issues and geopolitics, I should think
10 posted on 02/14/2003 9:21:36 PM PST by hedgetrimmer
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To: farmfriend
BTTT!!!!!!
11 posted on 02/15/2003 3:04:48 AM PST by E.G.C.
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To: jdege
Maybe Scott Peterson's "fertilizer" could be applied to this crisis.
12 posted on 02/15/2003 3:12:07 AM PST by Fitzcarraldo
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To: Willie Green
Farming in CA will be in a crisis because, locally, the farms are being turned into subdivisions. Housing is growing at an inflationary rate with immigrants being a primary culprit. All the more reason to inject some sanity into enforcement of immigration laws.
13 posted on 02/15/2003 11:26:10 AM PST by hoosierskypilot
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To: thinktwice
Great job!!! And one that can't be exported.

Not. But it sure can be done by an H-1B visa holder at $2 a week.

14 posted on 02/15/2003 11:35:10 AM PST by Euro-American Scum
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