California Farm Water Coalition 2014 Drought Facts Updated March 14, 2014 Contact: Mike Wade, Executive Director Phone: (916) 718-7408 cell Email: [email protected] How bad is this drought? Despite a very wet storm in early February California’s precipitation totals for the year are very close to a previously record dry year in 1923-24. How is it impacting agriculture? We’re expecting 800,000 acres or more of productive farmland to be fallowed this year. That’s 1,250 square miles or about the combined size of Los Angeles, San Diego, San Jose, Fresno and Bakersfield. The value of lost crop production is estimated to be $3.56 billion. How will it impact the economy? Many jobs depend on agricultural production including processing, transportation, wholesale, retail and shipping through ports, such as Los Angeles, Long Beach and Oakland. The value of lost statewide economic activity tied to reduced crop production is estimated to reach $7.48 billion. Which crops are being hit the hardest? Crops expected to see reduced production include iceberg lettuce, broccoli, bell peppers, melons, processing tomatoes, rice, almonds and walnuts (due to orchard removal), cotton and garlic, among others. What is it doing to farmers? Many farmers throughout the state are seeing water supply cuts from 10 percent up to 100 percent. Many are facing added costs to pump groundwater to keep critical permanent crops alive, such as almonds, grapes, pistachios and citrus. Unemployment will definitely be up. In communities that depend largely on farming for their economic support, we can expect to see increases to 40-50 percent, similar but to a much greater extent than the impacts in previous water-short years, such as 2009. Prices to consumers? Retail prices to consumers for California produce remain relatively flat because harvest in the San Joaquin Valley is still just around the corner. We will know what shortages to expect and how consumer prices will react when harvest begins. At that time we will get a handle on the amount of produce that wasn’t planted due to water shortages. Existing produce supplies are coming out of the Yuma, Imperial and Coachella valleys, which have not suffered from the extreme water shortages that exist in other parts of the state. Some market watchers have predicted a 10 percent to 15 percent increase in consumer prices this spring and summer. California is normally the source for about half of the nation’s fresh fruits and vegetables. What can be done to help? California’s Congressional Delegation has been working on legislation to alleviate California’s water crisis. The House has passed one bill to address this crisis and the Senate has introduced another. The concepts in the bills are very different, and there are different views on each of the measures. Farmers, however, are in complete agreement that two separate bills are of absolutely no value. What’s needed is a single bill that can be enacted by Congress and signed into law by the President. --- MORE --Use Restrictions We support the Governor’s decision to request voluntary water use reductions. That leaves decisions with locally elected water officials who know their customers and the water supply they have to work with. Additional Information Biological Opinion Impacts – 2012-2013 815,000 acre-feet of water went to the ocean in December and January with no measurable environmental benefit. That was enough water to produce crops on 200,000 acres, which could have grown: 10 million tons of tomatoes; or 200 million boxes of lettuce (3.2 billion heads); or 20 million tons of grapes; or 210 million cartons of melons Fallowed acreage 2009 – 269,000 2014 – 800,000 acres, survey as of March 14, 2014 At $1,437 in crop revenue per acre-foot of applied water (Inflation adjusted 2009 dollars, Ag Issues Center, UC Davis) and a modest 3.1 af/ac, that would equate to lost agricultural production of $3.56 billion and $7.48 billion in total lost economic activity for the state. Crop Losses 2009 - $368 million 2014 - $3.56 billion (Estimated) Job Losses 2009 – 7,434 2014 – 15,000 – 20,000 (Estimated) Economic Impacts 2009 – $796 million (Richard Howitt/Jeffrey Michael-2010) 2014 – $7.48 billion (Estimated) Water Use Efficiency Investments From 2003 through 2013 California farmers invested almost $3 billion installing upgraded irrigation systems (drip, micro sprinklers, high-efficiency pumps) on almost 2.5 million acres. Increased Crop Production/Water Use Efficiency From 1967 to 2007: Applied water in agriculture declined 14.5 percent 1967 - 31.2 maf 2007 - 26.7 maf Crop production per acre-foot increased 85.4 percent 1967 – 1.15 tons/af 2007 – 2.13 tons/af California Farm Water Coalition • (916) 391-5030 • www.farmwater.org
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