The Value of Agriculture in Ventura County: An Economic Analysis For information about ordering this publication contact: Ventura County Agricultural Land Trust and Conservancy PO Box 4664, Ventura, CA, 93007 FAX (805) 647-6493 © March 1996 by the Regents of the University of California This material is based upon work supported by the University of California Division of Agriculture and Natural Resources, funded by the Hansen Trust. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the view of the Regents of the University of California, the Division of Agriculture and Natural Resources, Cooperative Extension, or the Hansen Trust. No part of this publication may be reproduced, stored in any retrieval system, or transmitted, in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of the publisher. The University of California, in accordance with applicable Federal and State law and University policy, does not discriminate on the basis of race, color, national origin, religion, sex, disability, age, medical condition (cancerrelated), ancestry, marital status, citizenship, sexual orientation, or status as a Vietnam-era veteran or special disabled veteran. The University also prohibits sexual harassment. Inquiries regarding the University’s nondiscrimination policies may be directed to Affirmative Action Director, University of California, Agriculture and Natural Resources, 300 Lakeside Drive, 6th Floor, Oakland CA 946123560 (510) 987-0096. Printed in the United States of America 1 Table of Contents Page Dedication 3 Acknowledgments and Authors 4 Foreword Larry Rose President, Ventura County Agricultural Land Trust Michael Fischer Executive Officer, California State Coastal Conservancy 8 9 Introduction 10 Background Information 12 Agriculture In Ventura County: Its Impact on The County Economy 20 Jill McCluskey and George Goldman, University of California Farmland Protection In Ventura County: A Review Of General Plan Policies And Tools 56 Elisabeth K. Young and Alvin D. Sokolow, University of California Farmland Conversion in Ventura County 77 Michal Moore, Resource Economist Ventura County Agricultural Support Industries 99 David Strong, Strong Associates The Costs Of Farming Near Cities 117 Michal Moore, Resource Economist Economic Analysis Of Status Quo Vs. Compact Urban Development 127 David Strong, Strong Associates Geographic Information System Edward S. McNiel, University of California, Davis 2 175 Dedication The Value of Agriculture to Ventura County: An Economic Analysis is dedicated to Phyllis Dwire. Phyllis Dwire was a fourth generation Somis resident. Her family homesteaded their farm in the Las Posas Valley in 1868. From the time of the early efforts to develop her favorite valley until her death, she led a continuing effort to keep the Las Posas Valley a viable agricultural area. She served for many years as the secretary of The Ventura County Las Posas Citizens Advisory Committee and was a member of the Board of Supervisorappointed Agricultural Land Trust Advisory Committee whose study resulted in the formation of the Ventura County Agricultural Land Trust And Conservancy. Phyllis was a founding director and president of the Agricultural Land Trust and helped focus the farmland conservation efforts of The League of Women Voters. Phyllis dedicated volunteer efforts to many other organizations in Ventura County. Her gentle manner and soft-spoken style belied a tenacious and unwavering devotion to the conservation of farmland in Ventura County. Phyllis Dwire passed away peacefully in the early evening of November 24, 1995 at home with her family at her side. 3 Acknowledgments Many people have contributed to the effort of producing this publication and the associated Geographic Information System computer modeling tool. Most importantly, we wish to thank the authors for their work: Peter S. Brand conceived, organized and directed this study. He is a land use planner with special expertise in coastal resource planning, agricultural preservation and community participation. Mr. Brand began his career at the U.S. Department of the Interior in Washington, D. C. working on national land use policy and outdoor recreation planning. For the last seventeen years, he has managed a variety of complex planning projects throughout California both as a consultant and as staff to the California State Coastal Conservancy. Since 1989, he has focused his efforts on the preservation of farmland in California. Jill McCluskey is a Ph.D. student in Agricultural and Resource Economics at the University of California, Berkeley. She holds a masters degree in economics from Georgetown University and a masters in Agricultural and Resource Economics from U.C. Berkeley. Before graduate school, she worked as a researcher for an economics consulting firm, specializing in energy issues. Her fields of study are natural resource economics and industrial organization. She is currently doing research on grazing policy. George Goldman has worked for the University of California's Cooperative Extension for thirty years. Most of that time he has worked on rural economic development, community development, local government finance, and the economics of agricultural land and water resources. These usually have been applications of quantitative economic models to answer the "what if" questions, or the economic impacts of alternatives. Recent projects have been on the economic impacts of agriculture in California, the economic importance of the California State University System on the state, the economic impacts of our state park system, and a fair development fee for new construction in a rural California county. Most of his work has been on using Leontief input-output models to estimate the economic impacts of public policies or resource use alternatives. For the last 12 years he has used the U.S. Forest Service's IMPLAN system to generate these input-output models. During this time he has been the primary IMPLAN user in the state, and is an important member of the national network of IMPLAN users. 4 Edward S. McNiel lectures and conducts research as a faculty member of the Landscape Architecture Program at U.C. Davis. He has taught at three major universities over a twenty year period and conducts courses and lectures internationally and nationally on the use of computer technology in land planning and cultural preservation. He has been using computerized geographic information systems to assist in land planning since 1974. He has constructed data bases as large as 600 square miles and has addressed issues as varied as the preservation of biodiversity in a natural reserve to the preservation of historic architecture in small towns. He currently serves as principal investigator for GIS based research projects for the U.S. Forest Service, the Yosemite Rail Road Company, and the California Coastal Conservancy and serves as a consultant to the City of Folsom, the California Cities Commission and two private environmental planning firms. Michal Moore is a trained resource economist. He specializes in analyzing fiscal and economic impacts of land use decisions. His work is both theoretical and empirical, generating interactive time series and predictive models as well as policy evaluation and critique. He served two terms as an elected county supervisor and specialized in taxation and local government issues on many statewide committees. He served in the Deukmejian administration initially as director of economic research in the Department of Commerce and finally as a Special Assistant for Local Government Affairs. Most recently, he has worked as a contract fiscal consultant for county and city government in California. He was recently appointed by Governor Wilson to the California State Energy Commission. Elisabeth K. Young is a research assistant with Cooperative Extension Service for the University of California, Davis, Farmland Policy Project and a graduate student in the Community Development Department. She studied city and regional planning at California Polytechnic State University, San Luis Obispo and has worked for local and regional transportation planning agencies in San Luis Obispo and Sacramento. Young's interests are in land use planning with special interest in public policy, local and state government, and urban growth's impact on farmland and open space. Alvin D. Sokolow is public policy specialist with the Cooperative Extension Service for the University of California, housed on the Davis campus. As professor of political science at U.C. Davis for 27 years until 1992, he taught courses in local government and community politics, California politics, and American federalism. Sokolow's research and outreach activities focus on farmland and resource policy, California local government, state-local relations, and community political leadership. Recent publications deal with farmland policy, local office holding, county government, and local public finance. 5 David Strong has 19 years of experience conducting agricultural economic impact studies throughout California as both a private consultant and an economic analyst for the Cooperative Extension at U.C. Berkeley. His experience includes micro studies of farm enterprises and macro studies of multi-county public and private economic impacts, as well as regional planning and site-specific agriculture viability studies. Mr. Strong's coastal related agriculture projects have covered almost every California coastal county over a 17 year period. Mr. Strong's experience with local government and agricultural impact analysis uniquely qualifies him to develop and evaluate information on this project. Special recognition goes to Madge Strong, Larry Rose, Sheri Klittich and Ellen Brokaw for compilation and editing, and, to Gene Kjellberg of the County of Ventura Planning Division for his assistance. 6 Foreword From Ventura County Agricultural Land Trust and Conservancy Thanks to the generous funding of the University of California Hansen Trust, this study, The Value of Agriculture to Ventura County: An Economic Analysis, is presented by the California State Coastal Conservancy and the Ventura Agricultural Land Trust and Conservancy. The study is intended to help Ventura County communities and government policy-makers understand the relationship of agriculture to the County economy and the reliance of this industry on land and other resources for its efforts. Information from this study can be used for improving public policy decisions affecting agriculture, our cities and every taxpayer and resident in Ventura County. The elements of the study depict a picture in time of a thriving, dynamic industry, constantly adapting to new market opportunities while accommodating intense urban growth pressures. The study quantifies a relationship between city and farm that goes well beyond services shared or the enjoyment of open space, to an intricate and intimate fiscal and social interdependence. The Agricultural Land Trust, committed to providing an independent, objective research effort, used the expertise of the California State Coastal Conservancy and engaged a distinguished group of professors from the University of California and private economic consultants. They were asked to do in-depth research with the local agricultural industry, depict the study in practical and educational terms, and ensure that the research can be periodically updated. The Trust wishes to thank these researchers: George Goldman, Edward S. McNiel, Michal Moore, Alvin D. Sokolow, David Strong and especially Peter S. Brand of the California State Coastal Conservancy, the project director. The Board of Directors Ventura County Agricultural Land Trust and Conservancy 7 Foreword From the Coastal Conservancy This important report is the product of a three party partnership of the Coastal Conservancy, the University of California, and the Ventura County Agricultural Land Trust and Conservancy. The University has helped provide the expertise and scientific objectivity that provides an accurate picture of the economics of agriculture in Ventura County today. They, along with two consultant economists, addressed the first key question: Are there urban economic forces that cloud the future of the economic viability of farming in Ventura County? Our other partner, the Land Trust has given us the perspective of the resident and farmer of the county. They have helped find answers to this key question: What are the most pressing local concerns about the relationship between agriculture and urban land use? The Coastal Conservancy's involvement comes from our conviction that Ventura agriculture is a natural, economic, and human resource of statewide, as well as national, importance. Through this study we have asked the question: Is Ventura agriculture important compared to other agricultural areas? The numbers tell the story; yes. We are pleased to have played a part along with the County Board of Supervisors in helping establish the Ventura County Agricultural Land Trust and Conservancy. The Coastal Conservancy was established to provide an alternative to regulation and as such is an entirely voluntary program. Similarly, local land trusts exist as non-regulatory, voluntary programs to assist landowners. If you agree that this study has revealed a need for additional action to help the local farmer stay in business, we encourage local landowners to work with the Agricultural Land Trust. Our sincere appreciation goes to the Hansen Trust and to the Ventura community for recognizing the need for this important analytical study. We believe it will become a model for employing the new techniques of a computerized Geographic Information System to measure the economic importance of agriculture in other regions. Michael Fischer Executive Officer 8 The Value of Agriculture to Ventura County: An Economic Analysis Introduction & Executive Summary Peter S. Brand Introduction Ventura County's mild climate and fine soils enable farmers to grow and harvest a variety of high value crops on a year-round basis. More than one billion dollars in farm sales and 20,000 jobs are generated every year by Ventura County agriculture. Crop production, processing, shipping and other related industries add another $1.25 billion to the local economy. Ventura County has some of the most productive farmland in the world. Ventura County’s farmland is also among the most threatened. Ventura County's climate and diverse geography attract thousands of people who want to live near its sunlit beaches, cool mountains, green fields and shaded orchards. Since 1970, the population has grown 50 percent faster than the statewide rate. Based on the recent census and planned developments, the county's population is projected to reach 776,000 by the year 2000. Despite progressive planning and regulatory measures, farmland conversion continues without an end in sight. The Ventura County Agricultural Land Trust and Conservancy (VCALT), a private non-profit organization dedicated to providing alternatives to the sale or development of farmland, sought to identify economic information that could provide a basis for future land use policies. The VCALT, with the California State Coastal Conservancy, administered a study titled The Value of Agriculture to Ventura County: An Economic Analysis. The study was prepared by a team of agricultural economists and land use experts two years to complete. Funding for the study was provided by the Hansen Trust, a local endowment set up within the University of California to support Ventura County agriculture. A Geographic Information System (GIS) was created as a fundamental part of this study. The GIS is a computerized mapping system that displays complex land use dynamics and trends of farmland conversion. Study sponsors felt a GIS was essential to make the kinds of analyses needed for a comprehensive, strategic conservation 9 program. By linking a large data base to layered maps, the GIS enabled the research team to view land use patterns and economic values as they changed over time and space. Ventura County experienced a phase of rapid growth from the 1950s through the 1970s, prior to the creation of countywide growth management policies. Resulting areas of urban sprawl created an ambiguous and confusing message for both the farmer and the developer. This ambiguity caused noncontiguous development that left islands of agriculture surrounded by industrial parks and housing tracts. In areas where agricultural islands still exist, inflated land prices discourage any future agricultural investment. The uncertainty of future land use decisions has discouraged long term farming investment and encouraged urban conversion on the Oxnard Plain where most of the prime farmland is found. Even when public policy guidelines for growth were clear, urban development opportunities often determined the direction in which many cities grew. In some cases, farmland annexed long ago, but left undeveloped, was ignored in favor of converting new areas for urban uses. Farmers were left wondering where agriculture would remain and where it would have to give way to development. There is still substantial undeveloped acreage within Ventura County's cities and their Spheres of Influence. The GIS and the economic analyses contained in the study illustrate several scenarios for both the magnitude and the location of future urban development that can save farmland and still accommodate projected population growth. Purpose The purpose of this study is to analyze the significance of agriculture to the economy of Ventura County. Also, the study examines and quantifies past and present impacts of urbanization upon farming in Ventura County, and considers the effects of cities’ and county’s land use planning policies. The study gives a picture in time of agriculture and its place in Ventura County and examines trends that illuminate its strengths and vulnerabilities. Most importantly the study, and accompanying GIS, provide tools for use in the coming years as decisions are made which will either support the continuation of agriculture as a viable industry or lead towards its eventual demise. The GIS will be used to visually demonstrate effects of continued urban development on agricultural uses at the urban/rural interface. The GIS can be used as a tool by 10 VCALT to identify and prioritize private, voluntary farmland conservation efforts, and by local government agencies to develop policies supporting agriculture in Ventura County The economic model, which demonstrates the fiscal impact upon cities and county of alternative density development, can be adapted by land uses planners and government planning agencies to demonstrate real direct and indirect costs of farmland conversion to our local government decision makers and ultimately, the taxpayers. Those who read and utilize this study should understand it for what it is; an examination of agriculture’s place in the economy of Ventura County and of some of the economic forces that support or prevent conservation of farmland. The study is not intended to be a precise and detailed picture of all facets of agriculture. Farmers, like other business people, must deal with many factors besides availability and location of land, including issues of export markets for their products, competing imports, and -- a special problem of agriculture -- the weather. However, without land and water agriculture does not exist. Some of the questions posed are: • How healthy and competitive is Ventura County agriculture compared to agriculture elsewhere? • Is conversion of prime farmland a threat to the survival of the local industry? • In pragmatic terms what does conversion of farmland mean for the taxpayer? • Are there alternative policy directions for the county’s elected officials? • What are the actual added costs, if any, of farming near the cities? • At what point do agricultural support industries diminish in a farming region because of declining production? • Does low-density urban development, and the resulting farmland conversion, affect the local economy? • Does farmland conversion result in hidden costs to the county’s taxpayers? 11 Background Information Existing Setting The value of Ventura agriculture begins with its natural virtues that are unsurpassed. The coastal agricultural plain and fertile valleys have a combination of more frost-free days and fewer days above 90 degrees than other farming areas in California. Crops can be grown year-round and vegetables are harvested more than once a year. The excellent climate and soil enable the Ventura County farmer to produce more with less water than farmers growing similar crops in inland areas. Ventura County’s agricultural diversity is proven with 30 farm products in excess of $1 million each in farm-gate, or raw product sales. In 1992, Ventura County ranked in the top five of all California counties for eleven commodities. Compared to other areas in southern California and the nation, it is also self sufficient. Ventura County agriculture has little dependency on state water and has no federal crop subsidies. Representative Crops Lemons are the county’s number one crop. Ventura County produces 61 percent of all lemons grown in California and 47 percent of the lemons grown in the nation. The Ventura County lemon grower gets a 20 percent greater yield per acre than his counterparts in the rest of the state. The success of the local lemon industry is enhanced by the close proximity of Port Hueneme where export activity consists exclusively of agricultural products. In December of 1993, Sunkist growers switched from the Port of Long Beach to the Port of Hueneme. Fresh fruit exports climbed from 50,000 tons in 1992 to 178,000 tons in 1994 and are expected to keep growing. Farmland Productivity The success and productivity of Ventura County’s agricultural industry should be attributed in large part to the skill of its farmers. Yields per acre increased for leading crops over the past two decades at rates higher than the statewide averages. During the last 20 years, the crop yields per acre for celery and strawberries have both increased by 20 percent. One way of measuring a county's or a region's statewide importance is to calculate its output as a percentage of the state's total agricultural sales. Ventura County ranks eleventh among California counties -- in comparison, Fresno County ranks first in the state and in the nation. Another measure is to calculate its productivity and economic efficiency in its use of land, on a per acre basis. Ventura County's net return per irrigated acre in 1992 was almost three times that of Fresno County. 12 Economic Impacts Economic productivity is traditionally measured by the growers' return for bulk, unprocessed, raw products at the farm gate. More accurate measures include agricultural production and integral, value-added processing sales that in 1992 were $1.16 billion. Also, using a complex analysis of the direct and indirect ripple effects for each major crop type, the study identified an additional $1.25 billion in sales from agriculture and related industries. The total impact of these sales on the County economy was $2.41 billion. In addition to product, processing and sales, agriculture provides over 8 percent of the county’s employment and personal income. The ripple effects of these contributions to the economy in turn affect other non-agricultural sectors. As most of Ventura County’s farms are individual or family owned, farm revenues and jobs generate additional local economic benefits as profits are reinvested and wages are spent locally. The ability to harvest year-round also allows for consistent employment and better employee benefits inducing farm workers to settle in and become part of the community. Issues and Findings What are the Existing Public Sector Policies Related to the Protection of Agriculture? • Issue 1: Do the general plans of five focus cities and Ventura County explicitly protect farmland? • Finding: General plan policies, like zoning regulations, are by their very nature changeable. They reflect individual community’s growth philosophies and provide direction and priorities in judging the merits of future development proposals. The five cities’ plans acknowledge that the majority of lands being permanently converted to urban uses are prime irrigated farmland. All of the cities’ plans, and the county’s plan, emphasize the problems farmers face when urban development begins to encroach on their farmland. Each of the city plans requires, and the county’s plan recommends, that new urban development should provide adequate buffer areas between residential and agricultural uses. All of the plans emphasize that new urban development should be directed to existing cities thus minimizing the conversion of agricultural lands. 13 • Issue 2: Do the cities’ and the county’s plans require an analysis of development proposals and mitigation for the loss of farmland? • Finding: Several of the cities’ plans call for feasibility analyses of land use alternatives. The cities’ plans also recommend that development impacts be mitigated through the use of impact fees that could fund the purchase of agricultural conservation easements or the acquisition of development rights (easements) over nearby farmland. None of these mitigation policies are currently mandatory but rather call for examining the feasibility of retaining farmland through the above measures. The county’s plan emphasizes that non-agricultural development on irrigated farmland should remove a minimal amount of land from farm production. • Issue 3: How do growth management initiatives and other building density policies affect urban development and farmland conversion? • Finding: The Ojai Valley, and four of the five cities studied have residential growth control initiatives that control the pace of urban development but not necessarily its location and density. The five cities studied recognize limited higher density and infill as appropriate methods of minimizing impacts of urban growth on agricultural land. The study also concluded that the five cities’ annexation policies overall are consistent with the Guidelines for Orderly Development, but contain little that could be interpreted as long-term protection for farmland. Although the farmland protection goals and policies of these jurisdictions are among the most far reaching and aggressive in the state, they are often inconsistent or not specific in relating urban development to farmland protection. What Are The Impacts Of Farmland Conversion? • Issue 1: External growth pressures -- Ventura County's population has doubled five times since 1950. Urban growth pressures and resulting urban development has caused conversion of farmland at rates that exceed other important farming areas in the state and nation. • Finding: New irrigation technologies and favorable investment climate encouraged orchard development on non-prime land in the foothills resulting in a relatively minor net loss of farmland. However, the small net loss of acreage disguises a fundamental degradation of the county’s farmland base by a greater reliance on less fertile, nonprime farmland. Ultimately, land and water resources for further new farm development are more limited thus placing greater emphasis on conservation of the existing farmland. • Issue 2: Responding to changing market opportunities -- Historically, Ventura County’s agricultural industry has pursued market window opportunities unique to 14 Ventura County's climate and geography. High land costs have made it impractical to underutilize the land. • Finding: Crops have progressed from low-input, low-income field crops like lima beans and sugar beets to select, high-valued crops like strawberries and lemons. Technology and know-how have enabled farmers to realize full advantage of Ventura County’s natural farming resources. The county's growers have substantially increased production but the region is consolidating on less farmland. The versatility and flexibility that have been enjoyed may diminish because less land will be contributing to the industry's production base. • Issue 3: Measuring future farmland productivity -- The conversion of farmland acreage to urban uses is difficult to define statistically because different measures of farmland and productivity are used. • Finding: Ventura County's Agricultural Commissioner tallies crop production using harvested acres (e.g., some vegetables may be harvested more than once a year on a cultivated acre). In contrast, various state and federal agencies use other measures and categories that reflect each agencies’ needs and purpose. The study's GIS computer model uses a consistent data base that defines trends in farmland conversion more accurately and predicts the effects of a continuing diminished farmland base. How Does Farmland Conversion Impact Agricultural Support Industries? • Issue 1: If sufficient agricultural lands are converted to urban land uses, will businesses that support agriculture diminish and will costs to the farmers rise? • Finding: The study conducted interviews with agricultural support industries to determine their dependence on the county's agricultural production. The key questions were: • What percent of your business relies on Ventura County agriculture -- and, • What percent reduction in agricultural production could your firm withstand and stay in business? It is very difficult to predict what the aggregate business climate will be a decade from now for businesses sharing the same market. However, the sector of the agriculturesupport industry that can withstand the least reduction in production is agriculture sales and services. Equipment manufacture and sales and farm supply businesses are close behind in their sensitivity to crop losses. Packers and shippers, despite their high dependence on agriculture, are apparently able to withstand a much larger crop reduction due to their relatively low fixed costs and ability to respond by consolidating operations and reducing the number of employees. 15 • Issue 2: Can acreage trends anticipate how much urban conversion of farmland the agricultural industry and support businesses can withstand? • Finding: The research suggests that local decision makers should seriously consider the consequences of farmland conversion to urban use to avoid losing not only the prime farmland, but vital segments of the agricultural support industry as well. If farmland conversion continues, at the present rate, Ventura County farmers would find some support industries unable to continue in business. Costs could rise and/or service decline. This would negatively affect the farmers' net returns and thus negatively impact reinvestment decisions. The Farmland/Urban Interface -- Are There Added Costs Of Farming Near Cities? • Issue 1: What are the true costs to farmers dealing with encroaching urban development? • Finding: The study found that a variety of urban influences increase the cost of production to the farmer near development by at least 5 percent. This does not include costs such as fence construction, major theft, water saving technology, or higher prices for land or water due to urban competition. The largest of the quantified costs appears to be the loss through theft or vandalism on the periphery, setback buffers implemented by the farmer or shift in crop types to minimize conflicts. However, the primary cost is the farmer's time in terms of the extra management it takes to prevent or solve problems caused by proximity to urbanized areas. This cost is usually internalized and does not arise in estimates of loss. Nevertheless, it is a constant drain that farmers in more rural areas do not face. • Issue 2: How do land prices affect the stability of the agricultural industry? • Finding: Although farmers can make management adjustments for some urban influences, the most intractable problem for farmers on the urban periphery is the cost of land. Proximity to urban development results in inflated prices for farmland that prevent farmers from buying and selling to other farmers and limits investment opportunities. Speculating on the possibility of urban conversion also raises the land price above its farming value though the conversion may be dependent on future political changes or unknown time factors. 16 What Are The Private and Public Sector Costs of Status Quo Development to Agriculture? • Issue 1: Farmland conversion has adverse impacts that go beyond the farming community. Other sectors of the county’s economy that are affiliated with agriculture are also directly or indirectly affected. A little known impact is that the taxpayer is also indirectly affected. • Finding: Agriculture requires about $.65 in services from the county for every $1.00 it generates in revenues. Under the study's compact development scenario, retaining more land in agriculture gives the cities' a $.22 net surplus on every dollar of revenues offset against costs. The study shows that low-density urban expansion usually results in fiscal losses and city deficits. In contrast, the cost savings of orderly and efficient development with the resulting smaller loss of agricultural land can be passed on to the cities to balance their budgets or provide more services. • Issue 2: Public sector fiscal impacts that result from farmland conversion. • Finding: The average cost per resident and job depends on how efficiently each city develops. Cost/revenue ratios for a low-density, single-use development scenario and a more compact, more efficient urban development scenarios are included in the study. Under the current low-density development pattern of the five cities studied, the average resident's cost in services is $1.25 for every dollar he generates in revenues. When job-producing land uses are factored into the calculation, there is still a net loss of revenues to the city. The compact growth scenario would result in a positive net cash flow of $4.9 million per year total for the five cities instead of a negative cash flow of $5.2 million, or a $10.1 million annual difference. • Issue 3: Financial impacts of urban expansion and farmland conversion on the private sector -- In addition to the fiscal impacts to county and city governments, the study also calculates the private sector economic loss of agricultural output under different growth scenarios. • Finding: If residential, commercial and industrial development is encouraged to take place on farmland, short term economic growth may take place but the community also risks the loss of the agricultural industry. The private sector impact of each growth alternative is thus expressed in the study only in terms of the impact on the agricultural industry. The economic model shows that at existing, low-density urban densities, just over 10,000 acres of land would accommodate the projected (to the year 2010) population growth including land for job-related land use. The study assumes that all of the 10,000 acres converted is farmland since most urban conversion in the past has been irrigated agriculture. The private sector impact of this much farmland conversion would be significant. The study determined the county’s 17 economy would sustain an annual loss of $192 million in direct agricultural production, processing and sales. The hypothetical alternative called "compact" development assumes some infill and a modest increase in average density. This compact, more efficient growth alternative would retain about 4,300 more acres of agricultural land, retain 1,500 more agricultural jobs, and retain $80 million more in agricultural sales annually. • Issue 4: Alternative urban growth scenario that minimizes the conversion of agricultural land. Another growth pattern alternative to the ones described in issues 2 and 3 would be to develop only non-agricultural lands. • Finding: The compact growth scenario requires 5,900 acres to accommodate the projected population. The GIS shows there is a total of 5,800 undeveloped acres located within the spheres of influence of the five cities. The acreage is no longer in agricultural use and commitments for urban infrastructure exist. The study assumes additional or alternative sites for development could be accommodated as infill. Instead of just diminishing the amount of farmland conversion and loss of agricultural production, this scenario would avoid altogether the loss of 10,000 acres of prime Ventura County farmland and the $192 million annual loss to the local economy. 18 Conclusions 1. Agriculture, and its related businesses, are a very significant part of the Ventura County economy. 2. Recent and current land use policies have provided some significant protection for farmland but population pressures are such that urban and farm coexistence will not be possible in the future without some changes in land use planning and urban/farm interface policies. This study will have failed if it is used only by the planning community or academics. Our primary audience is the farmer, the taxpayer, and the public official for whom economic concerns are paramount. We hope that those reading the study may have a new understanding of the economic forces that cause or prevent conservation of farmland. Even though Ventura County’s farmland is some of the most productive in the world, both in yield and gross revenue, farmers cannot compete in the marketplace for their farmland against speculative development land values and expanding cities. It is hoped that this combination of innovative economic case studies and models and the analytic and visual tool of the GIS will be useful to a wide variety of users. The databases will be transferred to the VCALT and to the Ventura County Planning Division so that they can remain current and useful. More importantly, we hope that the study will be persuasive to the people of Ventura County who will look for solutions to the problems identified. 19 Agriculture in Ventura County Its Impact on the County Economy Jill McCluskey, Researcher and George Goldman, Economist Department of Agricultural and Resource Economics Division of Agriculture and Natural Resources University of California, Berkeley Table of Contents Introduction 21 Land Use and Crop Trends 23 26 28 33 35 43 History of Ventura County Crops Acreage by Crop Productivity: Crop Yields Value of Crops Net Income People on Farms Farm Ownership and Farm Characteristics Agricultural Employment Farm Labor Contractors Affordable Housing for Farm Labor 45 45 48 49 50 Aggregate Measures of the Agricultural Sector 51 Bibliography 55 20 Introduction California, with a crop value of $19.9 billion in 19931 led the United States in agricultural production. Ventura County agricultural production was worth $848.3 million in 1993 and is in the top fifth of counties in California. Ventura County is one of the five leading counties in California for ten commodities. (See Table below) Ventura County Rankings in California Farm Commodities All Commodities All Vegetables Cabbage Celery Lemons Spinach Strawberries Avocados Cucumbers Broccoli Cauliflower Nursery Products 12 5 1 1 1 2 2 3 4 5 5 5 Source: California Agricultural Statistics Services, Summary of Agricultural Commissioners' Reports, 1992 Ventura County leads the state in production of lemons (with 61% of all lemons grown in California), celery (43% of the State’s total) and cabbage (29%). The County’s strawberry crop represents 20% of the State’s. On the national level Ventura County produces 47% of all lemons and almost 15% of strawberries. Ventura County produces more than forty kinds of fruits and vegetables, ranking fifth among all the counties in total vegetable production. Approximately 27% of the land (nearly 321,000 acres) in Ventura County is occupied by farms and ranches. This compares with about 30% of the land in 1 1992 and 1993 figures are from separate sources. The trends they illustrate are consistent. 21 California. About one-third of the agricultural land in Ventura County is irrigated. Approximately three-fourths of cropland is used to grow fruits and vegetables. The unique and most valuable feature of the coastal plain of Ventura County is its extremely mild, almost frost-free, Mediterranean climate. The climate is suitable for subtropical fruits, year-round production of several vegetables, and a long harvest season for strawberries. Because of its unique climate and good soil, land in Ventura County has a high value for farming. However, land in Ventura County is also highly valued as speculative real estate investment. Land value and water price and availability are two of the more critical issues facing agriculture. In 1992, agriculture and agriculture-related products contributed to Ventura County's economy by providing just over 8% of all County and personal income. In the following pages, this chapter presents: • a review of historic trends in land and crop production and value in Ventura County, • a description of farm ownership and employment, and • an analysis of the total economic impact of the agricultural sector. 22 Land Use and Crop Trends Land in Farms Farms and ranches occupy 321,000 acres in Ventura County, which is 26.9 percent of county land. Cropland (which includes harvested cropland2 , cropland used for pastures, and other cropland) accounts for 131,000 acres or 40.8 percent of land in farms and ranches3 . (See Table 1) Table 1 Division of Land in Acres (000) and Percentages Ventura County 1964 1969 1974 1978 1982 1987 1992 California 1964 1969 1974 1978 1982 1987 1992 Total Land Area 1,192 1,192 1,192 1,192 1,192 1,192 1,192 Land in Farms & Ranches 437 433 310 340 301 329 321 % Of Total Land 36.7 36.3 26.0 28.5 25.3 27.6 26.9 100,207 100,069 100,069 100,070 100,031 100,031 100,031 37,012 35,328 33,386 32,327 32,157 30,598 28,979 36.9 35.3 33.4 32.3 32.2 30.6 29.0 Cropland Cropland Woodland Woodland * % of Farms % of Farms & Ranches & Ranches 158 36.2 7 1.6 144 33.3 5 1.2 128 41.3 5 1.6 140 41.2 15 4.4 136 45.2 10 3.3 134 40.7 12 3.7 131 40.8 5 1.6 11,815 11,245 10,630 11,455 11,257 10,895 10,479 31.9 31.8 31.8 35.4 35.0 35.6 36.2 3,403 2,038 1,522 1,365 1,483 1,351 1,150 9.2 5.8 4.6 4.2 4.6 4.4 4.0 Other Other % of Land Farms & ** Ranches 272 62.2 284 65.6 177 57.1 185 54.4 141 46.8 183 55.6 185 57.6 21,793 22,045 21,234 19,908 19,416 18,352 17,349 58.9 62.4 63.6 61.6 60.4 60.0 59.9 *Includes harvested cropland, cropland used for pastures, and other cropland. **Includes pasture land, rangeland, houses and barns, lots, ponds, roads, and wasteland. Source: U.S. Bureau of the Census, Census of Agriculture: California, various years 2 Harvested acres include vegetable crops that may be harvested and counted more than once a year. Harvested acre numbers are greater than real acre numbers. 3The definition of a farm which has been used in the Census of Agriculture since 1974 is any agricultural operation whose production is valued at greater than or equal to $1,000. The definition used before 1974 had a minimum value on production of $500. This decreases the number of farms because farms with production below $1000 are no longer counted. 23 As shown in Table 2 below, Ventura County's average farm size has declined from 290 acres in 1964 to 146 in 1992. This is considerably below the average California farm size of 373 acres. The number of farms in Ventura County has been slowly, but steadily increasing over the past thirty years. This is in contrast to the State of California in which the number of farms has been relatively constant. (Note: The definition of a farm used in Census of Agriculture changed in 1974. A farm is defined as an agricultural operation with annual production of $1,000 or more. The definition used before 1974 had a minimum requirement of $500 dollars of production). Table 2 Farm Acreage, Number and Size California and Ventura County California Year Number of Farms 1964 1969 1974 1978 1982 1987 1992 80,852 77,875 67,674 73,194 82,463 83,217 77,699 Ventura Land in Average Farms Size (1,000 ac.) 37,011 35,328 33,386 32,727 32,157 30,598 28,979 (acres) 458 454 493 447 390 368 373 Number of Farms Land in Farms Average Size 1,507 1,679 1,639 1,793 2,064 2,120 2,195 (1,000 ac.) 437 433 310 340 301 329 321 (acres) 290 258 189 190 146 155 146 Source: U.S. Bureau of the Census, Census of Agriculture: California 24 Investment dollars in Ventura County agricultural land and buildings are high. The average value of land and buildings on a Ventura County farm is $978,005, twenty percent higher than the California state average. More dramatically, the average Ventura County farm has a value of $6,7004 per acre, compared with $2,200 per acre statewide, as shown in Table 3 below. Table 3 Value of Land and Buildings California and Ventura County California Ventura Year Total Value Average Value/Farm Average Value/Acre Total Value 1964 1969 1974 1978 1982 1987 1992 Millions $17,355 16,932 21,793 38,152 61,565 48,571 63,718 dollars $214,650 217,429 322,034 521,240 746,577 583,668 820,063 dollars $468 479 653 1,161 1,918 1,575 2,199 Millions $918 815 663 1,130 1,647 1,553 2,147 Average Average Value/Farm Value/Acre dollars $609,125 485,593 404,683 630,148 797,809 732,708 978,005 dollars $2,118 1,885 2,141 3,357 4,659 3,996 6,696 Source: U.S. Bureau of the Census, Census of Agriculture: California 4 This value is calculated on all farm acreage in the County including rangeland. Values of irrigated acres are significantly higher. 25 History of Ventura County Crops In 1542 Juan Cabrillo landed on the shore of what is now Ventura County, during his explorations of the California coast. Over 200 years later, in 1782, missionaries came to this same area and established Mission San Buenaventura. They brought in sheep, cattle, and crops from the Mediterranean. Other plants, especially rangeland grasses, forage plants and cropland weeds, were introduced unintentionally and spread over both wild and cultivated lands. Walnuts and lemons were introduced in 1867. In the period from 1880 to 1910, barley for grain and hay, and oats were grown on over 60,000 acres without irrigation. These crops can still be grown without irrigation on as much as 10,000 acres of hilly land in years with near or above average rainfall. In the 1880's, figs, prunes, and apples were tried, but none became important crops. Lima beans were introduced in 1868, and exceeded 50,000 acres in some years between 1900 and 1943. After the early 1940's, lima bean acreage declined steadily. Following the building of a sugar factory in 1899, there were about 11,000 acres of sugar beets. Sugar beet acreage fell to two to three thousand acres in the late 1960's and early 1970's, and almost none since 1985.5 (See Oxnard Brothers' story on the following page for more about sugar beets.) In terms of both acreage and production value, lemons are currently number one in Ventura County. Lemons first became the highest-valued commodity in 1930 and have stayed in the number one spot since 1947. In recent years, the number two and three commodities in greatest production value have been celery and strawberries. Strawberries were first planted in Ventura County in 1929. Acreage was first reported in the Ventura County Crop reports in 1940 when strawberries acreage totaled 5 acres with a total value of $5,520. By 1951, strawberry acreage had only increased to 11 acres with a crop value of $16,357. In the following ten years there was a great expansion with strawberry plantings occupying 520 acres in 1961 with a value of $1.7 million. Since 1990 strawberries have exceeded 4,000 acres and $100 million in value Celery was first planted in 1923 with a total production of 155 tons. Celery was not grown again until 1934, with production averaging about 50 acres for the next ten years. By 1951, the acreage had increased to 403 acres. In the early 1960's, celery and strawberries became two of the major row crops in the county. Cultural and harvesting practices for celery also changed drastically in the early 1960's. The early harvesting practice for celery was to cut the celery, place it in bins, and transport it to a packing house for washing, trimming and packing. In later years, celery growers packed the celery in the field.6 5Cooperative Extension, University of California, Ventura County 6History of Ventura County celery and strawberries paraphrased from the Ventura County Agricultural Commissioner's Report, 1988. 26 The Oxnard Brothers' Sugar Beet Factory Robert, Benjamin, Henry T., and James Oxnard were four French immigrant brothers who inherited a sugar refining business. In 1887, the brothers consolidated their business with other sugar refining companies and took the name of the American Sugar Refining Company. In 1889 and 1890, they built the first two of their five factories in Grand Island, Nebraska and Chino, California, respectively. After Ventura County farmer Albert F. Maulhardt heard about the sugar beet factory in Chino, he went to San Francisco to persuade Henry T. Oxnard to come to Ventura County and consider it as a future sugar beet refinery site. At the time, only crops such as barley and lima beans were grown in the area because of the unpredictable rainfall. The market for lima beans was depressed from excess supply. Maulhardt reasoned that since sugar beets can grow in almost any soil or climate, they would be a good crop to rotate with lima beans. If a refinery could be built in the area, the farmers would have a stable market for their sugar beets. Another argument for growing sugar beets was that the main competition would be imports (which would include transportation costs). During the period 1880 to 1896, ninety percent of the sugar consumed in the U.S. was imported.7 In 1896, Maulhardt convinced the growers to raise enough sugar beets to send a crop to Chino. At the Chino refinery they determined that the sugar beets were eighteen to twenty percent sugar--at a time when beets with twelve percent sugar were considered good.8 These results convinced Henry T. Oxnard. The Oxnard brothers' proposal was that they would build a $200 million sugar refinery on a site in the bean fields close to the growers if the County of Ventura gave them 100 acres for the site, the right of way for a spur from the Southern Pacific Railroad, and a railroad and draining ditch to the ocean. The growers also had to pledge to plant 20,000 acres of sugar beets for five years. The Oxnard brothers guaranteed a price of $3.25 per ton for beets with 12% sugar, plus 25 cents per ton for each percentage of sugar above that. The factory would be the largest in the west, processing at least 2,000 tons of sugar beets per day. When the refinery was completed in 1898, Major Driffill, the first manager of the refinery, arranged for acquisition of land and developed plans for a town site near the factory. "Stories say that Henry T. Oxnard wanted the town to be named Sakchar (which in Greek means sugar), but when he called from Sacramento, the phone connection was so poor that they could not understand what he was saying. In exasperation, he said to just call the town 'Oxnard'."9 The factory was responsible for an enormous amount of growth in the area, and on June 30, 1903, Oxnard officially became a town. From the opening of the refinery up to World War I, the main crops grown in the Oxnard area were grain, lima beans, and sugar beets. After World War I, sugar beets became less profitable. Irrigation made it possible for farmers to raise citrus crops. The factory was open from 1899 to 1959. The factory was salvaged by Lipsett Steel products, and the site went to Ventura County Industrial Plaza for development. 7LeDesma, p. 3. 8LeDesma, p. 4. 27 Acreage by Crop The history of selected crops from 1940 to 1993 is shown in Table 4 below. Note that acreage reported in the tables and graphs means acreage harvested. Therefore, an increase in vegetable crop acreage may signify more double cropping, not additional land in production. Double cropping occurs when the same land is used for two or more harvested crops in the same year. Total harvested acres are therefore greater than acres cultivated. In Ventura County, on average about 20,000 acres of vegetables are double cropped. There is no significant triple cropping in Ventura County. The six most significant crops in terms of harvested acres are: • Lemons. with 18% of all cropland • Avocados • Oranges • Celery • Lettuce, and • Strawberries These are also illustrated in Figure 1 on the following page. 28 Figure 1 Ventura County Crop Acreage (Harvested Acres) 25,00 0 20,00 0 15,00 0 10,00 0 5,000 0 19 40 19 45 Lem on Lettu ce 19 50 19 55 19 60 19 65 Valen cia Strawberry 19 70 19 75 Avocado Broccoli 19 80 19 85 19 90 Celery Cabbag e Source: Ventura County Agricultural Commissioner’s Reports. 29 19 93 Table 4 Ventura County Crop Acreage, Selected Crops (Harvested Acres) Year 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 25 Yr Ave Lemon 14,652 18,152 19,004 19,004 16,446 17,954 18,670 18,588 17,620 17,708 16,537 16,318 17,631 17,631 17,339 18,799 19,496 20,260 21,670 21,728 22,009 22,656 20,886 22,895 21,876 21,289 20,770 21,245 21,878 22,550 23,380 23,868 24,033 24,870 25,513 23,098 23,697 22,609 22,530 23,647 24,147 24,947 21,824 23,295 22,620 21,340 21,806 21,669 22,169 22,285 22,381 23,630 23,369 24,239 23,181 Valencia 14,080 16,586 16,332 16,332 15,321 15,919 16,374 16,374 16,295 16,756 18,081 17,033 17,532 17,532 15,827 16,070 16,146 16,086 15,986 16,436 16,480 16,320 15,055 15,436 15,687 16,146 14,679 16,971 17,962 18,940 18,830 19,374 19,215 18,878 18,884 15,879 15,849 15,571 15,502 15,580 15,633 15,533 11,819 14,204 14,310 14,424 14,535 14,535 14,245 14,245 14,294 14,355 14,006 12,325 15,638.60 Avocado 312 325 231 258 231 379 430 430 422 470 497 512 548 700 807 1,365 1,841 1,977 1,766 1,829 2,084 2,375 2,337 2,574 2,649 2,359 2,661 2,613 2,785 3,060 3,070 3,155 3,279 3,387 3,497 4,720 6,212 7,768 7,416 10,187 10,917 12,100 12,748 15,636 16,251 16,448 16,503 16,303 16,103 16,170 16,198 12,926 13,911 16,199 10,567 Celery 55 0 36 23 35 55 57 65 69 155 159 403 693 1,003 1,147 1,299 1,486 1,601 1,739 2,210 2,017 2,424 2,190 2,574 2,649 2,855 4,330 4,029 4,440 5,440 5,940 6,147 6,516 6,716 7,534 8,739 8,558 9,437 9,481 10,309 9,934 10,011 10,793 10,290 11,079 10,976 11,075 9,615 10,650 11,100 11,242 10,528 11,723 9,878 9,348 Lettuce 475 420 330 250 250 312 357 430 660 797 1,478 1,581 3,519 2,427 1,980 1,829 2,500 3,692 4,221 4,572 5,485 5,542 5,468 7,746 7,723 7,125 6,550 5,107 4,650 5,820 5,210 4,614 5,927 5,437 3,518 4,688 4,504 5,615 6,157 5,247 4,696 5,703 6,387 5,637 7,686 7,220 7,178 6,390 9,792 9,342 7,842 7,368 6,826 6,824 6,225 Source: Ventura County Agricultural Commissioner’s Reports 30 Strawberry 0 0 4 0 0 0 0 0 14 0 0 11 54 137 150 141 310 301 310 334 530 520 461 480 489 535 617 701 858 915 1,040 1,273 1,429 1,606 2,011 2,050 2,290 2,430 3,230 2,383 2,419 2,535 2,227 2,300 2,760 3,006 3,027 3,468 3,500 3,938 4,200 4,435 5,550 4,795 2,753 Broccoli 0 0 0 0 44 100 112 76 106 152 242 401 925 1,080 789 889 1,747 1,686 1,435 2,360 3,014 2,106 1,520 1,509 1,693 1,562 2,030 2,318 2,040 2,260 2,060 3,406 3,728 2,090 4,492 3,561 3,149 5,011 4,320 2,649 2,704 2,708 6,260 4,653 4,589 6,394 4,686 4,985 2,481 2,429 2,791 4,457 4,600 4,632 3,804 Cabbage 150 200 200 110 90 287 19 31 65 238 284 405 348 266 183 433 960 1,107 1,757 1,908 1,954 1,359 2,312 2,261 2,350 2,667 2,330 2,389 2,495 2,160 2,670 3,617 2,891 2,924 3,172 3,100 2,122 1,548 1,760 1,604 1,727 1,554 1,832 1,781 1,984 1,620 2,409 2,004 3,134 2,432 1,590 2,503 2,757 2,202 2,284 Harvested acres of higher-value fruits and vegetables, such as avocados, broccoli and lettuce, have increased, while harvested acres of low-value field crops such as sugar beets have decreased. Vegetable acreage, as a commodity group, increased steadily from less than 10,000 acres to nearly 60,000 acres in 1984, and has dropped back to 42,000 in 1993. It should be noted that acreage of pasture, nursery stock, and cut flowers are not included in Table 5. Table 5 Ventura County Harvested Acres By commodity group Year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Fruits & Nuts 51,966 52,743 52,833 53,520 54,222 49,282 51,895 52,393 52,934 56,138 57,676 59,675 55,064 59,217 59,575 58,575 59,608 59,076 58,714 59,286 59,721 58,238 59,122 59,685 Vegetables 37,000 41,580 45,880 43,239 45,340 48,874 39,901 46,752 46,829 49,467 43,408 45,176 52,255 49,851 59,685 58,099 51,163 47,012 48,962 47,264 46,725 47,109 46,522 41,798 Field Crops 17,120 29,309 20,026 23,410 26,854 29,805 21,987 22,740 20,473 17,063 18,836 14,547 13,454 14,760 10,507 10,004 9,829 7,467 6,707 7,076 2,632 3,282 3,287 3,629 Total 106,086 123,632 118,739 120,169 126,416 127,961 113,783 121,885 120,236 122,668 119,920 119,398 120,773 123,828 129,767 126,678 120,600 113,555 114,383 113,626 109,078 108,629 108,931 105,112 Source: Ventura County Agricultural Commissioner’s Reports 31 Figure 2 Composition of Ventura County Harvested Acres 140,000 120,000 100,000 80,000 Acres 60,000 40,000 20,000 0 1970 1975 1980 Fruits & Nuts 1985 Vegetables Source: Ventura County Agricultural Commissioner’s Reports 32 1990 1991 Field Crops 1992 Total 1993 Productivity: Crop Yields Crop yields per acre have increased for Ventura County's leading crops over the past two decades. Crop yields are illustrated in Figure 3 and Table 6 for selected Ventura County crops. Comparing 1973 crop yields per acre with 1993 yields per acre, the avocado crop yield per acre has increased the most with a 50% increase, owing to the maturing of groves planted in the 1970s and 1980s. The increases in crop yields per acre for other leading crops are not as dramatic: The crop yield per acre for lemons increased by 2%; for strawberries, the increase was 19%; and for celery, it was 20%. Ventura County crop yields per acre are on average slightly better than statewide yields. For some crops, Ventura County is substantially more productive than the state. Figure 3 Ventura County Selected Crop Yields Per Acre 35 30 Tons/Acre 25 20 15 10 5 0 1973 1975 1977 Celery 1979 1981 Strawberry 1983 Lemon 1985 Valencia 1987 1989 1991 Avocado Source: Ventura County Agricultural Commissioner’s Reports. 33 1993 Table 6 Crop Yields Per Acre (tons) Ventura County Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Average California 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 Average Celery 28.6 29.0 31.0 28.5 31.0 29.0 28.0 26.4 30.0 27.5 28.0 28.0 27.6 29.1 33.6 30.1 29.5 31.4 31.9 30.1 34.3 29.6 Strawberry 22.9 25.7 26.0 24.4 26.5 19.0 19.8 25.2 23.7 26.0 27.0 26.6 28.2 27.0 28.8 30.6 25.0 29.8 30.6 21.6 27.3 25.8 Lemon 17.9 15.0 21.5 15.1 21.5 20.9 11.3 17.5 18.7 14.3 12.4 12.4 15.1 14.8 23.0 15.4 16.9 15.9 15.2 21.7 18.2 16.9 Valencia 12.9 6.8 16.7 10.9 10.1 15.8 6.2 14.3 13.8 18.3 6.9 6.9 14.0 10.2 11.4 19.3 13.3 13.2 9.5 22.1 10.2 12.5 Avocado 3.4 3.3 3.6 2.5 1.8 2.4 2.4 0.8 4.3 2.5 3.2 3.2 2.1 2.1 2.4 2.8 2.2 1.3 1.7 1.7 5.1 2.6 28.5 29.0 29.1 28.1 29.0 27.5 27.2 28.5 28.9 31.2 30.9 31.4 31.2 29.7 29.8 32.7 33.5 29.9 33.5 33.5 30.2 19.8 21.5 19.0 19.5 22.5 19.5 20.5 23.5 24.8 28.0 24.0 26.8 26.5 25.3 23.5 22.5 21.3 24.8 24.8 24.8 23.1 16.3 13.0 18.5 12.2 16.3 16.4 10.6 13.5 18.0 13.0 15.2 12.7 15.2 11.8 16.9 13.2 12.7 12.6 12.1 12.4 14.1 10.0 8.0 11.9 11.1 10.2 11.3 8.2 13.6 14.1 8.0 19.9 8.1 14.5 11.6 13.1 15.5 13.4 14.7 5.3 17.3 12.0 3.6 2.6 4.4 2.3 4.1 3.1 3.1 1.7 5.0 2.4 2.9 3.4 2.6 2.2 3.7 2.4 2.2 1.4 1.8 2.1 2.9 Source: Ventura County Agricultural Commissioners Reports and California Crop and Livestock Reporting Service 34 Value of Crops Agriculture has continued to flourish in Ventura County partly because the County’s resources have allowed it to produce high-value crops. Ventura County agriculture is characterized by advanced levels of technology, capital, and management. The concentration of higher-value fruits and vegetables and high peracre yields partially explains Ventura County's consistently high cash receipts. However, the same mild, frost-free Mediterranean climate that allows the County to grow unique and high-valued crops also makes it a desirable place to live. Development in Ventura County has caused the value of land to increase in recent years, partially explaining the shift to high-value crops. As the value of land increases, the economic return from the land must also increase. Otherwise, the land may eventually be sold and converted to urban uses for a higher return on the land. If farmers did not inherit the land they are working, then they need to grow high-valued crops in order to afford the high price or rent for the land. The total value in constant dollars (constant dollars are dollars adjusted for inflation) of Ventura County’s agricultural production has been following an upward trend since at least the 1930’s. The trend since 1955 is illustrated in Figure 4. As shown in constant 1993 dollar value, total crop production values were $200 million in 1955, doubled by 1970, and doubled again to about $800 million in the early 1990’s. 35 Figure 4 Value of Ventura County Agricultural Production 1993 Constant Dollars Producti on Val ue ($,000) 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1955 1960 1965 1970 1975 1980 1985 1990 (1993=100) Producer Price Index for Farm Products from the 1994 Economic Report of the President. Source: Ventura County Agricultural Commissioner’s Reports. Selected individual crops are illustrated in Figure 5 and Table 7. As shown, strawberries have made the greatest gains in production value in the last fifty years. In the early 1940's almost no strawberries were grown in Ventura County. Adjusting for inflation10 , the 1993 value of strawberry production is 136 times as large as the 1955 value. They now represent 13% of the total production value in the County (second only to lemons). Avocados have the second highest rate in increase in value. Lemon values, although they have increased less dramatically, have still more than tripled since 1955 and are the County’s top value crop at 24% of the total. Orange production values, however, have been flat relative to lemons. 10Nominal values were converted to real values by using the Producer Price Index for Farm Products. 36 Figure 5 Ventura County Production Values for Selected Crops 250,000,000 200,000,000 Constant Dollars 150,000,000 100,000,000 50,000,000 0 1955 Avocado 1960 Valencia 1965 1970 Lemon 1975 1980 Str awberry 1985 1990 Cabbage 1991 Celery 1992 1993 Let tuce Source: Ventura County Agricultural Commissioner’s Reports (1993=100) Producer Price Index for Farm Products from the 1994 Economic Report of the President In the last fifty years, high-valued crops such as strawberries and avocados have shown the greatest increases. Once negligible commodities, strawberries and avocados are now 13% and 10%, respectively, of total production value. 37 Table 7 Ventura County Production Value of Selected Crops in Constant Dollars Year 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Avocado 1,377,053 1,982,048 1,393,162 3,002,653 3,631,656 3,248,741 4,549,865 2,938,559 3,357,741 5,164,335 5,077,024 5,950,049 4,422,280 9,822,919 5,133,143 11,813,084 8,433,984 13,209,664 11,242,861 14,553,774 15,495,831 26,195,410 13,877,779 20,066,008 23,730,125 16,511,386 27,563,059 17,187,032 25,937,304 28,659,229 31,575,158 52,201,106 23,470,028 59,164,627 53,260,324 50,887,850 34,516,651 30,923,363 49,906,000 Valencia 34,027,840 35,367,925 35,054,952 49,896,812 54,718,049 51,115,614 49,840,431 54,961,864 72,086,733 82,283,128 63,130,126 52,137,610 57,450,777 60,844,928 39,919,163 38,401,869 56,670,494 32,371,215 41,747,719 27,421,344 41,442,051 27,547,121 39,146,746 62,490,605 26,712,505 45,648,331 35,316,314 42,425,637 37,018,809 49,179,513 63,880,513 64,126,929 50,528,852 67,922,277 59,955,616 48,785,047 106,401,458 42,774,220 45,034,000 Lemon 60,354,266 55,369,225 54,770,679 71,944,420 75,207,966 73,701,825 81,075,472 82,343,750 104,312,618 106,750,343 97,319,401 98,611,655 111,058,290 121,110,549 129,044,223 125,799,065 132,491,389 132,309,000 124,783,633 115,366,326 120,907,032 87,297,121 109,207,923 127,948,389 134,250,107 126,636,165 96,184,906 90,333,833 82,357,367 89,062,880 130,481,548 124,588,804 182,313,725 172,049,164 158,668,468 166,890,139 208,500,860 171,576,121 216,129,000 Strawberry 816,693 2,560,796 1,037,988 2,343,890 5,027,149 4,761,566 4,752,022 5,339,778 6,133,748 11,182,442 9,706,362 14,135,651 19,702,073 24,857,071 21,600,095 25,007,009 29,005,970 32,991,290 28,226,818 34,804,119 41,874,236 46,335,823 52,758,658 37,312,836 33,478,728 41,855,048 48,872,050 43,728,868 49,797,283 56,693,712 67,608,011 76,520,387 99,056,583 92,835,577 81,577,576 120,555,026 132,332,220 104,489,775 110,447,000 Source: Ventura County Agricultural Commissioner’s Reports 38 Cabbage 884,280 1,190,428 2,154,501 2,843,183 3,905,571 2,937,284 2,761,725 6,495,498 2,354,499 3,946,091 4,511,830 4,122,429 4,155,440 3,943,081 4,234,427 6,485,981 7,432,836 6,217,545 6,476,303 5,274,399 8,288,077 3,680,065 7,209,406 4,947,657 5,464,439 4,168,660 3,733,727 5,548,898 4,880,878 10,594,320 3,952,520 8,661,599 6,151,261 15,212,158 9,320,726 5,877,360 8,985,727 10,988,432 8,975,000 Celery 7,397,544 4,997,697 8,071,968 15,257,312 11,176,471 9,238,754 9,407,008 17,799,258 11,302,891 16,786,008 20,079,653 26,285,504 26,093,264 25,135,340 37,803,138 52,873,832 38,110,218 51,336,168 32,512,511 31,694,222 49,694,275 49,681,559 67,410,726 81,854,075 56,750,430 47,795,570 67,574,247 75,705,114 66,578,892 87,743,408 55,268,902 73,089,150 89,276,190 82,814,157 82,445,967 80,538,814 77,065,492 81,507,953 113,823,000 Lettuce 2,403,307 2,615,099 5,083,690 4,652,375 6,906,287 7,462,994 9,563,342 12,023,305 12,666,577 14,320,165 11,919,295 11,900,098 8,195,078 6,903,618 13,899,192 11,028,037 14,557,979 17,225,218 15,952,164 8,421,482 10,380,906 10,963,607 15,014,688 21,875,915 10,964,761 12,701,466 16,590,724 25,599,187 19,293,626 22,589,249 23,044,554 25,274,130 22,782,073 38,791,310 28,930,915 23,416,937 28,002,834 24,304,896 28,704,000 Lemons have been the number one crop in terms of value of production since 1947. The production value of lemons is almost twice the value of second place celery. In recent years, the production values of celery and avocados have gained position with celery overtaking strawberries in 1993. Other shifts in the top ten commodities in the past ten years are Valencia Oranges going from fourth to sixth, and cabbage moving from fourteenth to tenth. These are shown in table 8 below. Table 8 Ventura County's Rankings of Commodities Commodity Lemons Celery Strawberries Nursery Stock Avocados Valencia Oranges Lettuce Cut Flowers Broccoli Cabbage 1983 1 2 3 5 6 4 7 8 10 14 1988 1 3 2 4 6 5 7 8 12 9 1993 1 2 3 4 5 6 7 8 9 10 Source: Ventura County Agricultural Commissioner's Report Citrus makes up 38% of harvested acres and 44% of production value. All tree crops make up 54% of harvested acres and 51% of production value. 39 Limoneira: Place of the Lemon "One hundred years ago, [Maine natives] Wallace Hardison [founder of Union Oil] and Nathan Blanchard inaugurated the agricultural venture they called Limoneira [which means place of the lemon in Portuguese] based upon a forthright business plan: 'the culture, curing and marketing of the lemon.' This unpretentious conception guided the company and those that came afterward--transforming rocky, dusty acreage and ink on paper into vigorous enterprise."11 In 1872, Blanchard arrived in Ventura County, purchased 2,700 acres of land, and established the Santa Paula townsite Blanchard planted 100 acres of oranges in 1874. The Southern Pacific Railroad arrived in Santa Paula in 1887 and made it possible to ship oranges east. In 1891, Blanchard and Hardison purchased land to raise lemons. "Blanchard and Hardison also obtained water rights for the property by organizing the Santa Paula Water Company in 1891 and the Thermal Belt Water Company in 1893."12 In an unstable economic atmosphere, Blanchard and Hardison formed the Limoneira Company in Santa Paula on March 4, 1893 and sold stock. A nursery was established at the ranch to provide a source of future orchard stock."13 They also built bunk houses, dormitories, and a mess hall for the workers. In 1899, Limoneira joined the Southern California Fruit Exchange (which later became Sunkist), quit in 1904, and re-joined in 1911. In 1916, Limoneira decided to add the Sunkist label to their boxes and wraps. In 1907, Limoneira purchased the 2,300 acre Olivelands Tract for $400,000. The company had grown from fifteen employees in 1897 to 200-250 in 1995. Limoneira provided affordable, close-to-the-work-site housing for its employees with cottages and apartments for fieldworker families, and houses for supervisors' families. The company also ran an on-site store for its employees. "By 1923 the main part of the ranch took on the appearance of a small town."14 By 1920, Limoneira's ". . . labor force during the same year exceeded 400 employees during peak season, with at least half that number staying on year round. Continued on next page 11Triem, p. 12Triem, p. 13Triem, p. 14Triem, p. 40 23. 2. 3. 10. Limoneira: Place of the Lemon, Continued According to the. . . Santa Paula Chronicle for October 1921, Limoneira had become '. . . the largest individual shipper of lemons'."15 Even during the Great Depression profits soared. The 1940's were a more difficult time for Limoneira. World War II made it difficult to get supplies, and modernization and replacement of equipment was delayed. There was also a labor shortage of field workers. Limoneira began to hire Mexican nationals under the bracero guest worker program in 1942. Over-production depressed markets. The 1950's brought about many changes including the company responding to changing market demand by producing more Valencia Oranges, the installation of labor-saving equipment, and the replacement of wooden crates with fiberboard cartons. In the 1960's, labor unrest confronted the Limoneira Company. The bracero program ended in 1964 causing Limoneira to demand more domestic labor. In an effort to attract more domestic workers, Limoneira made improvements and additions to employee living and recreational facilities. Soon Mexican laborers were allowed to emigrate to the U.S. on work permits, and Limoneira took advantage of this additional labor supply. The company began to offer benefits and educational opportunities including language classes and a head start program for pre-school children of field workers. Limoneira's field workers decided to join the United Farm Workers in 1978." The unionization experiment lasted until 1985 when the workers voted to decertify it, but legal problems and appeals required a second vote in 1991. The field workers once again voted against the union."16 Limoneira is still changing. In the early 1980's, the company entered the computer age. In 1985, the Limoneira Company merged with the Samuel Edwards Associates to form Limoneira Associates. This merger almost doubled Limoneira's acreage. Milton Teague died in 1986, and his nephew Alan Teague became Chairman of the Board in 1987. As of 1992, Limoneira had 3,188 producing acres including 1,303 acres of lemons.17 15Triem, p. 9. 16Triem, p. 21. 17Triem, p. 23. 41 Table 9 shows the production per acre and the values per acre for vegetable and fruit crops in Ventura County in 1993. The highest gross returns per acre were for strawberries at $23,000 and celery at $11,000, kale at $10,200 and lemons at $8,900. Table 9 Fruit and Vegetable Production and Values - 1993 Production CROP Vegetables Celery Lettuce Onions Broccoli Cabbage Peppers Cilantro Spinach Oriental Vegetables Parsley Tomatoes Cauliflower Beans Kale Sweet Corn Carrots Cucumbers Pumpkin Total Vegetables Fruits Lemons Strawberries Avocados Navel Oranges Valencia Oranges Grapefruit Total Fruits Combined Total* Harv. Acre Value Tons/Acre Total Tons $/Ton $/Acre Total ($,000's) 9,878 6,824 2,256 4,632 2,202 1,852 1,658 1,644 913 859 2,402 1,318 2,382 300 1,127 887 412 252 41,798 34.33 10.04 20.58 5.20 22.53 13.13 7.21 6.52 11.29 10.07 32.05 6.57 2.40 24.05 6.78 17.58 9.33 12.88 339,130 68,502 46,431 24,081 49,611 24,322 11,958 10,713 10,308 8,648 76,979 8,656 5,724 7,216 7,645 15,597 3,844 3,247 722,612 $335.63 419.02 288.17 532.70 180.91 305.98 555.44 597.87 616.71 649.28 65.84 534.77 542.98 426.00 329.63 149.64 454.99 158.92 $11,523 4,206 5,931 2,769 4,076 4,018 4,006 3,896 6,963 6,537 2,110 3,512 1,305 10,247 2,236 2,631 4,245 2,048 5,578 $113,823 28,704 13,380 12,825 8,975 7,442 6,642 6,405 6,357 5,615 5,068 4,629 3,108 3,074 2,520 2,334 1,749 516 233,166 24,239 4,795 16,199 806 12,325 667 59,031 100,829 18.21 27.27 5.10 7.79 10.16 18.13 441,379 130,763 82,600 6,275 125,196 12,093 798,306 1,520,918 489.67 844.63 604.19 260.40 359.71 235.43 8,917 23,034 3,081 2,029 3,654 4,268 7,952 6,968 216,129 110,447 49,906 1,634 45,034 2,847 469,397 702,563 *Fruits and vegetables make up approximately 96% of Ventura County agricultural production by production value. Source: Ventura County Agricultural Commissioner's Report, 1993 42 Net Income As shown in Table 10, total market value (that is, gross returns) of all agricultural products in Ventura County in 1992 was $667.8 million. After total expenses of an estimated $549.4 million, total net returns for Ventura County farms were over $115.7 million, averaging $52,729 per farming operation. Net returns are defined as market value of products sold less total production expense and are calculated on a cash flow basis. Net returns do not include farm income from other sources. Production expense does not include returns on capital or the value of the owner's labor. Average returns are defined as the net returns divided by the number of farms. The figures for California are net returns of $3.2 billion, averaging $40,935 per farming operation. The Ventura County net return per farm is about three times the U.S. average. Table 10 Farm Income (In $,000’s unless stated otherwise) Ventura County Market Value of Products Sold California 1987 $537,519 1992 $667,826 1987 $13,922,234 1992 $17,651,912 3,032 29,288 12,534 13,974 18,413 9,554 11,089 135,552 40,614 15,972 12,348 17,542 16,142 6,961 58,521 401,539 7,263 20,521 19,377 23,088 23,542 13,425 12,955 186,746 62,847 21,391 8,547 18,830 20,349 11,480 99,057 549,419 776,540 1,707,608 215,542 427,924 544,779 332,166 330,538 2,385,242 613,340 503,218 335,292 697,449 381,871 245,512 1,420,571 10,917,593 935,152 2,108,719 274,495 568,772 694,549 414,984 500,264 2,922,390 967,377 630,574 448,923 738,910 492,662 291,385 1,815,826 13,804,983 135,980 115,741 2,927,279 3,179,111 253,547 304,249 189,405 250,305 64,016 52,729 Agriculture: California 167,300 131,205 35,179 219,546 177,755 40,935 Production Expense Livestock & Poultry Purchased Feed Seeds, Bulbs, Plants & Trees Commercial Fertilizer Ag. Chemicals Petroleum Products Electricity Hired Farm Labor Contract Labor Repair & Maintenance Customwork, Rental of Equipment Interest Paid Cash Rent Property Taxes Paid Other Production Expenses Total Production Expense Net Returns Average Per Farm (Not in $,000’s) Market Value of Products Sold Production Expense Net Returns (dollars) Source: U.S. Bureau of the Census, Census of 43 Table 11 compares the value of net returns per acre with Monterey County which grows similar crops, with Fresno County, California’s biggest agricultural county, and with statewide figures (all for 1992). The market value of products sold per irrigated acre of land in Ventura County of $6,593 is about 2.9 times as large as the average for California. The net return of $1,143 per irrigated acre of land is 2.7 times as large as the state average. Monterey’s value and return per acre are comparable with Ventura County, while Fresno County’s are closer to the statewide averages. Table 11 Value Per Irrigated Acre Ventura County Market Value of Products Sold ($,000) Net Returns ($,000) Market Value of Products Sold per Irrigated Acre (Net $ ) Return per Irrigated Acre ($) California 1987 $537,519 1992 $667,826 1987 $13,922,234 1992 $17,051,912 135,980 115,741 2,927,279 3,179,111 5,172 6,593 1,833 2,252 1,308 1,143 385 420 Fresno County Market Value of Products Sold ($,000) Net Returns ($,000) Market Value of Products Sold per Irrigated Acre (Net $ ) Return per Irrigated Acre ($) Monterey County 1987 $1,681,523 1992 $2,081,516 1987 $730,746 1992 $1,202,715 360,608 378,827 157,703 272,991 1,663 2,084 4,034 5,402 357 379 871 1,226 Source: U.S. Bureau of the Census, Census of Agriculture: California There are of course wide variations in gross and net returns for different crop types and each individual farm operation, depending primarily on their costs. For lemon crops, for example, typical cultural and overhead costs are estimated at $2,223 per acre, compared to $1,829 for Valencia orange crops. For avocados, sample cultural costs in the South Coast Region in 1992 were $1,139 per acre (in the fifth year of the life of the orchard), while harvest costs were $377, overhead was $757, and interest on operating capital was $112 for a total of $2,385 per acre costs.18 18 Source: Ventura County Cooperative Extension data. 44 People on Farms Farm Ownership and Farm Characteristics As shown on Table 12 below, families or individuals own just over two-thirds of Ventura County farms. This percentage is increasing in contrast to the state percentage which is declining. If one includes family held corporations in this category, the percentage increases to three-fourths. Partnerships make up 17.7% of ownership, which is higher than both the state and national averages of just under 15% and 10%, respectively. Most farms are managed directly by an owner or part owner who is a farmer. These farmers may utilize a farm management company or labor contractors to varying degrees. The percentage of tenant19 farmers is declining. Table 12 Farm Ownership and Organization Ventura County Farm Operator Full FarmOwner Operator Part Owner Tenant Type of Ownership Individual or Family Partnership Family Held Corp. Other Corporation Other* California Farm Operator Full FarmOwner Operator Part Owner Tenant 1982 1987 1992 # of Farms % of Farms # of Farms % of Farms # of Farms % of Farms 1,652 80.04 1,735 81.84 1,834 83.55 159 7.70 155 7.31 127 5.79 253 12.26 230 10.85 234 10.66 1,356 475 149 38 46 65.70 23.01 7.22 1.84 2.23 1,428 433 171 31 57 67.36 20.42 8.07 1.46 2.69 1,530 388 173 33 71 69.70 17.68 7.88 1.50 2.23 1982 1987 1992 # of Farms % of Farms # of Farms % of Farms # of Farms % of Farms 60,556 73.4 60,639 72.9 56,559 75.44 12,692 15.4 12,218 14.7 11,471 15.30 9,215 11.2 10,360 12.4 6,939 9.26 Type of Ownership Individual or Family 65,482 79.4 64,928 78.0 60,187 Partnership 11,360 13.8 12,127 14.6 11,350 Family Held Corp. 4,849 5.9 4,677 5.6 4,220 Other Corporation 343 0.4 690 0.8 847 Other* 429 0.5 795 1.0 1,065 *Cooperative, Estate, Trust, Institution, etc. Source: U.S. Bureau of the Census, Census of Agriculture: California, 1992, 1987, 1982 77.49 14.61 5.43 1.09 1.37 Source: U.S. Bureau of the Census, Census of Agriculture: California, 1992, 1987, 1982 Tenant is in reference to a farmer on rented land rather than a sharecropper. 19 45 Farmers tend to stay on a farm for ten years or more. In Ventura County, more than half the farmers were reported to have spent ten or more years on their present farm (similar to the statewide average). Over half (57%) of Ventura County’s farm operators have a principal occupation outside of farming, compared to about 48% statewide, as shown in Table 13. Table 13 Farm Operator Characteristics Principal Occupations & Farm Tenure Ventura County California # of Farms % of Farms Principal Occupation Farming Other # of Farms % of Farms 947 1,248 43.14 56.86 40,215 37,454 51.78 48.22 Years on Present Farm Less than 2 3 to 4 5 to 9 Greater than 10 Not Reported 105 202 489 1,185 214 4.78 9.20 22.28 53.99 9.75 4,239 7,526 13,886 42,172 9,846 5.46 9.69 17.88 54.30 12.68 Source: U.S. Bureau of the Census, Census of Agriculture: California, 1992 46 The age, gender and race classifications of farmers in Ventura County generally reflect the breakdown at the state level. The average age of farmers in Ventura County is 56.4 years, while at the state level, it is 55.2 years. Ventura County has a slightly lower percentage of farmers who are under 35 years with 3.5% compared to 6.1% at the state level. See Table 14 below. The racial and ethnic breakdown of Ventura County farmers is very close to that of the state. This is in spite of Ventura County's higher percentage of white residents in the general population of 65.9% compared with the state percentage of 57.2% Table 14 Farm Operator Characteristics Age, Gender and Race Ventura County Age under 25 25 to 34 35 to 44 45 to 54 55 to 64 65 & over Gender Male Female California # of Farms % of Farms # of Farms % of Farms 1 75 354 608 534 623 0.05 3.42 16.13 27.70 24.33 28.38 417 4,288 14,232 19,223 17,997 21,412 0.54 5.53 18.35 24.78 23.20 27.60 1,918 277 87.38 12.62 68,016 9,653 87.57 12.43 Race & Ethnicity* White 2,058 93.76 71,772 92.53 Black 7 0.32 253 0.33 Native American 3 0.14 486 0.63 Asian or Pacific Islander 47 2.14 3,292 4.24 Other Races 80 3.64 1,766 2.28 Spanish Origin 151 6.88 3,883 5.01 *Numbers add up to greater than 100% because those claiming Spanish Origin also claim another racial classification. Source: U.S. Bureau of the Census, Census of Agriculture: California, 1992 47 Agricultural Employment Agriculture continues to be a strong source of employment in Ventura County. Figure 6 Farm Employment in Ventura County 19,000 18,000 17,000 16,000 15,000 Jobs 14,000 13,000 Job loss is attributed to lack of harvested crops following severe frost years 12,000 11,000 10,000 1960 1965 1970 1975 1980 Year Source: California Employment Development Department 48 1985 1990 Farm Labor Contractors Farm labor contractors are becoming more and more important in agricultural production. In 1992, researchers from the U.C. Berkeley, U.C. Davis, and Vaupel Associates completed a study on farm labor contractors in California for the California Employment Development Department.20 Although farm labor contractors’ field workers tend to be seasonal workers, the E.D.D. study found that in Ventura County citrus and vegetable workers tend to be settled in the community and find work there through much of the year. The E.D.D. study indicated that in Ventura County, the contractors’ field workers are mostly male (93%), and Hispanic (90%). About three-fourths of the labor contractors were born in Mexico, one-fourth were born in the United States and their average age is fifty years. Half of the workers speak English well, and about a fifth speak English poorly or not at all. Just over a third speak English at home. About 20% have graduated from a U.S. high school. The average field worker has about ten years of experience. Most farm labor contractors take a commission on the wage that the customers (farm operators) agree to pay per field worker. Ten percent use a piece rate system. The mean payroll of the farm labor contractors sampled in Ventura County was just over $1 million. During the peak employment period, the mean number of workers employed per farm labor contractor was 175. Many farm labor contractors operate other businesses. Of the farm labor contractors sampled in Ventura County, 55% of farm labor contractors operated some other business. Most of the farm labor contractors (90%) have been in business for more than three years. Agricultural employment increases in the spring and continues to be high throughout the summer, peaking in May. Most of the seasonality of County employment can be attributed to agriculture. 20California Employment Development Department, Labor Market Information Division, Farm Labor Contractors in California, California Agricultural Studies 92-2. 49 Affordable Housing for Farm Labor A major difficulty for Ventura County’s farm labor force is finding affordable housing, given the County’s high property values. In 1992, the median existing single-family home sales price of $225,680 was 14% higher than the statewide median price of $197,900. When compared to the heavily agricultural Central Valley; Ventura County's median price was 89% higher than the median sales price of $119,130 in the Central Valley. Ventura County's median sales price peaked in 1990 and has been on a downward trend through 1991 and 1992.21 High property values also imply high payments for rental housing. According to 1990 Census results, California is the second most expensive state (Hawaii was first) in which to rent housing accommodations with the median contract rent equal to about two-and-a-half times the national average. According to the 1990 Census of Housing, the median gross rent in Oxnard and Ventura was $899 per month. 21California Statistical Abstract, 1993 50 Aggregate Measures of the Food and Fiber Sector Ventura County's agriculture and agricultural processing sectors have a large impact on the economy in Ventura County. For each dollar or job generated directly in farm production and processing, there are ripple effects: The farmer’s purchase of supplies and services; the farm workers’ income spent on rent, groceries, etc.; and the jobs and income of those suppliers and merchants in turn affecting other sectors of the economy. The total impact from the agricultural sector is estimated from IMPLAN22 system. The IMPLAN model calculates specific multiplier effects (the direct and indirect ripple impacts) for each major crop type. The results are the following aggregate estimates (detailed in Tables 15 and 16): • Agricultural production and processing sales in 1992 were $1.16 billion. • The total impact of these sales on the county economy was $2.41 billion. This represents an additional $1.25 billion in sales from ripple effects from agriculture and related industries. • Similarly, the same $1.16 billion in sales created $1.22 billion in personal income, $1.31 billion in value added, and 28,641 jobs. • This represents 8.09% of personal income, 7.22% of value-added23 , and 8.13% of jobs in Ventura County. The vast majority of these impacts is from vegetable, fruit and nut production and vegetable and fruit processing. This impact is comparable to that of the State of California as a whole.24 22The IMPLAN (IMpact analysis for PLANning) system was designed by the U.S. Forest Service/U.S. Department of Agriculture to be able to estimate economic input-output models for any county, or group of counties in the United States. An input-output model provides detailed economic multipliers for all sectors of the economy. 23 Value-added in this case is equal to the value of goods and services sold minus the costs of inputs and services (but not labor). For agriculture, value-added would indicate value added to the economy from farm products, less processing costs, transportation, interest on loans, etc. 24 Carter and Goldman found that the statewide impact of agriculture was 9.42% on personal income, 9.05% on value added and 9.78% on jobs. 51 Table 15 Economic Impact of Ventura County Agriculture - 1992 Ventura County Agriculture Agriculture Processing Total Ag & Processing Ag. as % of Ventura Co Income Value Added Jobs $,000 $,000 Number 15,088,406 727,437 493,582 1,221,019 8.09% 18,146,531 783,903 526,638 1,310,541 7.22% 352,200 19,652 8,989 28,641 8.13% Sources for Data: 1. Ventura County Personal Income, 1992: California Department of Finance, Sacramento 2. Ventura County Value Added, 1992: Estimated applying ratio of California State Product to Personal Income in 1989 to Ventura County Personal Income in 1992. 3. Ventura County Employment, 1992: California Employment Development Department, Sacramento 52 Table 16 Economic Impacts of Ventura County's Food Industry - 1992 Major Agricultural Commodity Groups Total Sales Impacts on Ventura County Production/Processing Sales, 1992 Dollars Sales Value Added $,000 Jobs $,000 Personal Income $,000 5,001,718 5,442,768 14,968,766 248,002,064 187,935,509 1,140,624 82,911,447 11,941,862 42,812,279 431,671,999 29,039,856 11,777,356 4,143,247 1,723,497 79,827,337 73,193 9,450 9,550 25,398 640,862 429,019 2,354 238,553 18,886 63,718 781,542 45,627 17,986 6,386 3,228 120,571 228 5,368 5,647 13,680 317,343 219,809 1,374 164,214 6,949 20,340 383,843 21,963 7,729 1,813 1,104 49,716 124 5,653 6,119 14,981 344,748 235,408 1,463 175,532 7,494 21,753 409,052 23,244 8,168 1,934 1,697 53,157 140 116 116 213 8,957 4,966 31 5,252 154 402 7,008 379 139 32 30 840 5 $1,158,413,521 $2,413,358 $1,221,019 $1,310,541 28,641 8.09% 7.22% 8.13% Dairy Farm/Poultry Products Livestock Food/Feed Grains Fruits and Tree Nuts Vegetables Misc. Crops Greenhouse/Nursery Sausages/Prepared Meats Fluid Milk Processed Fruits/Veg. Flour Grain Mill Products Cocoa/Chocolate Products Shortening/Cooking Oils Wines, Brandy and Spirits Bottled/Canned Soft Drinks Manufactured Ice Total % of Ventura County Ventura County Estimated Personal Income ($,000) Ventura County Value Added, 1992 ($,000) No. $15,088,406 $18,146,531 Ventura County Employment, 199225 352,200 Sources for Data: 1. Ventura County Personal Income, 1992: California Department of Finance, Sacramento 2. Ventura County Value Added, 1992: Estimated applying ratio of California State Product to Personal Income in 1989 to Ventura County Personal Income in 1992. 3. Ventura County Employment, 1992: California Employment Development Department, Sacramento 25 Includes salaried workers, employers, own-account workers, unpaid family workers, and workers directly involved work stoppages. 53 Port of Hueneme Built in 1870, the Port of Hueneme in Ventura County is the only deep water port between Los Angeles and San Francisco. It is located on a projection into the sea about twelve miles north of Point Mugu. The deep water Port of Hueneme enables Ventura County farmers to ship their products abroad from a location within Ventura County. Export activity at the Port of Hueneme consists exclusively of agricultural products. Citrus growers have especially taken advantage of this lower cost alternative for shipping their product to Asia. Port Hueneme not only reduces the transportation costs involved in getting an agricultural product to market, but also provides high-paying jobs for Ventura County. In February of 1992, the Port of Hueneme became an official "Port of Entry" under the U.S. Department of Customs.26 The Port handles "break bulk" cartons like those used for shipping citrus. Fresh fruit exports were at an all-time high of 178,409 tons in fiscal year 1994 and are expected to continue growing. The reason for this explosion in export activity is that in December of 1993, Sunkist Growers switched from using the Port of Long Beach to the Port of Hueneme. When the UCSB Economic Forecast Project did an Economic base study of the Oxnard-Port Hueneme area, they pointed out that "[r]elatively very high salaries for the employment of longshoremen are paid to Port workers. The monthly number of registered longshoremen, clerks, and foremen was 93 in 1994. The average annual salary for registered longshoremen was $48,248 in 1993. Including clerks and foremen, salaries for Port workers averaged $52,291 in 1993."27 26Economic Base Study Oxnard-Port Hueneme Area, p. 23. 27Economic Base Study Oxnard-Port Hueneme Area, p. 24. 54 Bibliography Blanchard, Dean Hobbs, Edited by Grant Heil, Of California's First Citrus Empire: A Rainbow Arches from Maine to Ventura County, The Castle Press, Pasadena, 1983. California Crop and Livestock Reporting Service, California Vegetable Crops, (selected years). California Crop and Livestock Reporting Service, Fruit and Nut Statistics, (selected years). California Employment Development Department, Annual Planning Information, Ventura County. California Employment Development Department, Labor Market Information Division, Farm Labor Contractors in California, California Agricultural Studies 92-2. California Employment Development Department, Ventura County Employment Data. California Department of Water Resources, California Water Plan Update, 1993, Draft Bulletin 160-93, November 1993. Cooperative Extension, Ventura County, University of California, Ventura County Agricultural Data. Carter, Harold O. and George Goldman, The Measure of California Agriculture: Its Impact of the State Economy, Agricultural Issues Center, November 1992. LeDesma, Diane, "The Oxnard Brothers and the Beet Sugar Factory", Ventura County Historical Museum, 1981. Triem, Judith, The Limoneira Company, One Hundred Years of Growing: 1893 -1993, Limoneira Company, Santa Paula, California, 1993 UCSB Economic Forecast Project, Economic Base Study Oxnard-Port Hueneme Area, 1994. U.S. Department of Agriculture, Agricultural Statistics, (selected years). U.S. Department of Agriculture, Vegetable and Situation Outlook, (selected years). U.S. Department of Commerce, Bureau of the Census, Census of Agriculture, (selected years). U.S. Department of Commerce, Bureau of the Census, County Business Patterns, (selected years). U.S. Forest Service, IMPLAN computer program, version 91-09. Ventura County Agricultural Commissioners Reports, 1930-1993. 55 Farmland Protection In Ventura County: A Review Of General Plan Policies And Tools Elisabeth K. Young and Alvin D Sokolow UC Cooperative Extension, Department of Human and Community Development, Davis Table of Contents Introduction 57 A Focus on General Plans 58 Cities’ General Plans 58 59 60 Overview of the General Plans Farmland Protection Rationale Implementing Tools 61 Urban Growth and Development Restrictions On Development In Agricultural Areas Compact Development Rural Residential Development Annexations 63 63 64 65 65 County of Ventura General Plan 67 67 Farmland Protection Rationale Implementing Tools Rural Residential Development Annexations Tables 56 67 69 69 73 Farmland Protection In Ventura County: A Review Of General Plan Policies And Tools Introduction In suburban and rapidly growing Ventura County, the issue of farmland conversion to urban uses has long had a central place on the public agenda. More so than its value to the county’s economy, farmland is seen as the principal form of open space around expanding cities. It is a highly desirable public commodity as an urban amenity, an antidote to congestion and a means of keeping communities intact and physically separate from each other. Popular support for this approach seems strong and enduring. The farmland protection policies of local governments in Ventura County, as a result, are among the most aggressive and far reaching in California. The county, cities, and the Local Agency Formation Commission, (LAFCO) here have more than 20 years of experience in crafting and implementing innovative policies. Interjurisdictional cooperation is a major feature of these policies. Cooperation extends to greenbelt agreements between individual cities and city/county/LAFCO adoption of the Guidelines for Orderly Development that direct growth to cities and away from unincorporated areas. Several cities as well have growth management ordinances, largely the result of voter-approved ballot measures. Such policies may have minimized the impacts of growth on farmland conversion, but they have not slowed population increase appreciably in Ventura County overall. The county’s population increased by 484 percent from 1950-90, and by 26 percent from 1980-90. What is clear is that the pressure on farmland comes almost entirely from city expansion and not from growth in unincorporated areas. While the 10 cities registered an aggregate increase of 148,000 residents in the 1980s, the county’s unincorporated area actually decreased by 8,000 persons, a result of limited development combined with city annexations. The most critical farmland-related policies in Ventura County thus are the expansion strategies of cities, especially relating to the efficiency with which they use open land in the development process. Issues of density, infill, and the geographical direction of growth are central to this process. 57 The capacity of current policies to continue to hold the line on farmland for the foreseeable future may be questioned. One reason is that some of the county’s cities are approaching their buildout limits within existing boundaries. Without major increases in development densities or infill opportunities, cities soon will be bumping into greenbelts and sphere of influence lines. Looming over all of this is continued, substantial growth. State figures project that Ventura County will have more than 1.3 million residents by 2040, a doubling of the population in the 50 years after 1990. A Focus on General Plans For indications of both current and future farmland-related policies, we turn to a review of city and county general plans in Ventura County. The focus is on how the language of current plans expresses the objectives and methods of farmland protection. General plans of California local governments of course are not necessarily accurate reflections of how they actually deal with growth and resource protection. Rather they are statements of goals and broad intent, prepared in large part to satisfy state government mandates. They are often deliberately vague to allow flexibility in the day to day actions of planning commissions and elected governing boards. Still, they suggest the growth philosophies of individual governments and they frame and rationalize more specific and immediate actions. In looking to their communities’ futures and in referring to specific policies and tools, the plans indicate direction and priorities. Cities’ General Plans We concentrate on the current general plans of five of the county’s ten municipalities--Camarillo, Fillmore, Moorpark, Oxnard and Ventura. Selected for analysis in the larger Hansen Trust-supported study of Ventura County agriculture (of which this chapter is a part), these cities have boundaries and future growth more directly related to surrounding farmland than the other municipalities. Ventura County’s plan is included in the analysis largely for reference purposes. We look closely at the clarity, specificity, and consistency of general plan language. The review compares the five city plans according to (1) rationales presented for farmland protection; (2) reference to specific implementing tools; and (3) policies relating to urban growth and development. 58 Overview of the General Plans The five city plans view agricultural land primarily as an open space resource that complements urban living. Farmland is valued as open space land that should be preserved for its aesthetic qualities and physical separation between cities, rather than as an economic resource for the area. Among the five documents, those of Ventura and Camarillo most clearly establish the rationale and policies for farmland protection. The Fillmore, Moorpark, and Oxnard plans are less emphatic about this goal. The Ventura and Camarillo documents are relatively clear, specific, and detailed about farmland protection. Supporting policies include: • minimum parcel sizes linked to crop and soil characteristics • greenbelts and buffers • designated growth and protection areas • annexation policies consistent with the Guidelines for Orderly Development. The consequences of losing farmland are extensively discussed and numerous solutions are offered. However, the Ventura and Camarillo plans also promote low density residential development as a means for maintaining rural character and open land, conflicting with general farmland protection goals. Each of the city general plans reviewed here contains the seven state-mandated elements--Land Use, Circulation, Housing, Conservation, Open Space, Noise, and Seismic Safety. Most of the farmland-related provisions are found in the combined Open Space and Conservation elements with additional broad polices in the Land Use elements. Agricultural land as an open space and natural resource is emphasized in the Open Space/Conservation elements in the general plans of Camarillo (1989), Fillmore (1992), Moorpark (1986), and Oxnard (1990). As an alternative to the Open Space and Conservation elements, Ventura addresses farmland issues in its Resources element (1989). The Land Use elements of all five plans include population projections, land use designations, and general land use goals and policies that influence farmland preservation. In addition, the Oxnard plan’s optional Growth Management element (1990) includes comprehensive development policies for annexation and greenbelt agreements. The current Land Use elements of all five plans were 59 adopted between 1988 and 1993 and are intended to provide policy guidance until 2010, with the exception of Oxnard which has a 2020 horizon. Since several of these cities are nearing build-out within existing boundaries, goals and policies related to farmland protection are directed towards development in the unincorporated areas within their spheres of influence and Areas of Interest. The spheres, which designate the anticipated growth areas (“ultimate buildout” in some cases) for each city, are adopted by LAFCO. Areas of Interest typically are larger zones in which cities wish to exercise long-term influence. Farmland Protection Rationale In common, all five city plans express concern about local farmland conversion trends, as Table 1 indicates. The documents emphasize the contribution agricultural lands make to open space and to visual or scenic resources. Most plans cite farmland as a desirable means of providing physical definition to urban areas and physical separation between cities in order to maintain community identity. A common theme is the intrinsic quality of farmland as natural openness. The Camarillo plan’s rationale for farmland protection is: “to enhance the physical, emotional and mental well-being of the City residents.” Virtually all of the plans also refer to farmland as a way to maintain the rural character associated with Ventura County. Only the Camarillo and Fillmore documents mention agriculture’s contribution to the local economy as a major rationale for preserving farmland. The references are largely to countywide patterns and less to existing farmland within city boundaries. Fillmore’s plan notes that while only 180 acres of agricultural land exists within city boundaries: “Agriculture will remain the dominant industry in the Fillmore area as a result of the Greenbelt Agreement and due to the land development constraints in the Planning Area.” Economic factors more often are cited as a reason to develop farmland for urban uses since development boosts the local economy and builds tax base. The Oxnard and Fillmore plans note that economic incentives to urbanize land exist, especially in urban fringe zones where land values are high. The plans refer to development as a way to enhance the local economy and tax base. On the other hand, the Camarillo plan mentions farmland as one of the most inexpensive forms of open space, providing a self-supporting economic return because it remains on the tax rolls, in private ownership and under professional private management. Major goal statements in the city documents do not pinpoint farmland protection as a top purpose of planning efforts. Only indirectly is agricultural preservation 60 included in such all encompassing goals as “the need to maintain and enhance environmental quality thorough the management and preservation of the diverse natural resources Camarillo’s plan specifically mentions farmland as contributing to environmental benefits, including air and water quality. IMPLEMENTING TOOLS California cities and counties have access to a variety of planning and land use policies and tools that can be applied to control growth and protect farmland. Table 2 singles out several policy techniques, as they are cited in the county and five city general plans. Specific references vary considerably from jurisdiction to jurisdiction. • Agricultural zoning and minimum parcel size. All but the Fillmore plan specify agricultural land as a separate land use designation. The Fillmore plan lumps agricultural use in with the open space zone, stating: “No agricultural uses would remain within the Planning Area given build-out of the land use designations. . . unless existing agricultural uses remain in the areas designated as open space and hillsides.” There are no minimum parcel sizes for agricultural zones referred to in the Ventura and Oxnard plans, while the Camarillo and Moorpark agricultural zones have 10, 20, and 40-acre minimum parcel sizes. Only Camarillo’s plan defines criteria for rating minimum parcel sizes linked to crop and soil characteristics and water availability. The Ventura plan includes the toughest restrictions on changes in agricultural zoning. It contains this explicit statement for long-term protection of farmland: “Agriculturally designated lands may not be considered (for redesignation) until after the year 2010.” But the horizon date of 2010 does not imply that development of agricultural lands would be appropriate at the time of later plan updates. • Land Conservation Act contracts/easements and Greenbelt Agreements. Williamson Act (LCA) contracts attempt to place farmlands off limits to development, with lowered property taxes as the incentive for landowners to participate. Participation is entirely voluntary. Counties are the principal governmental participants in the program, receiving state subventions to compensate for a portion of the property taxes lost. Only 19 cities statewide formally participate, but this includes three Ventura County municipalities--Camarillo, Oxnard, and Thousand Oaks. Camarillo, Oxnard, and Ventura plans refer to the program, encouraging the continuation of contracts. The Camarillo plan notes, however, the diminished economic benefits for landowners since Proposition 13. Greenbelt Agreements between individual cities, with county government participation, have been in place in Ventura County for many years. They are 61 a device for maintaining physical separation (open space) between cities in order to maintain community identity. All five city plans express strong support for maintaining these zones. The Ventura plan also states the intention to establish a new greenbelt between this city’s boundaries and Oxnard (The first in the county’s coastal area, this was established in 1994.) The Camarillo plan along with several others, mentions the Ventura County Open Space Plan and the increased number of agricultural preserves, including greenbelts, as “lessening the threat” of development in the cities’ fringes. The Moorpark plan notes that the expansion of greenbelts should only occur if participating jurisdictions commit to prohibiting incompatible land uses such as detention facilities and other non-agricultural and institutional uses within the protected areas. • Soil Inventory. With the exception of the Ventura document, the plans all refer to the 1970 USDA Soil Conservation Service Soil Survey. Camarillo’s plan notes the use of soil inventories as a major criterion for the designation of “prime agricultural land” under the Williamson Act. Several plans note that the acres first converted to urban uses disproportionately include prime agricultural lands composed of the richest and most productive soils. The Moorpark Land Use element states: “Agricultural land use designation should be retained for agricultural uses within the City’s Area of Interest, which have been identified as Prime and/or Statewide Importance, as long as economically feasible.” Camarillo and Fillmore plans acknowledge that land being lost to urban uses is predominantly “prime” or “Class I”, including irrigated row crop land on the urban fringes and farmland adjoining the freeway and major arterials. • Land trusts and development rights acquisition. Although the practice is still limited, some California jurisdictions have begun to purchase or otherwise acquire development rights to farmlands, usually using non-profit land trusts for this purpose. While none of the city plans reviewed here mention specific land trusts, Ventura and Camarillo documents call for examining the feasibility of retaining farmlands through land trusts, donations, state and federal conservation grant programs, and bond issues. • Mitigations and transfers. A less costly strategy for cities to acquire development rights is to require new development to pay for farmland protection as a form of mitigation. The Camarillo and Ventura general plans stand out as listing a range of techniques for following this approach, including: (1) impact fees to fund land conservation; (2) donation of conservation easements; and, (3) requiring purchase of development rights elsewhere and their transfer to public agencies or land trusts. The respective policy statements only suggest their possible use, as in Ventura’s Resource element which states: “Evaluate the 62 feasibility of retaining (agricultural lands) through the establishment of land trusts, donations, purchase and transfer of development rights.” Such techniques have not yet been actually implemented. Urban Growth and Development All five city general plans recognize population growth as inevitable due to the area’s desirable location, climate, and quality of life. Citing the need for wellplanned growth as a land use goal is common. Ventura’s Land Use Element, for example, includes this goal: Control development as a means of preserving the City’s economic, social, cultural, and physical amenities and community service levels, while keeping in mind the carrying capacity of the air basin, water, and land resources. Among the five documents, Oxnard’s plan looks most favorably on increased development and welcomes the resultant economic growth. The Moorpark and Camarillo plans are the only two that refer to growth control ordinances. Moorpark’s Measure F, adopted by voters in 1986, limits residential development to 270 units per year in 1986-1994. Camarillo’s Residential Development Control initiative, adopted by voters in 1981, was in response to residents “desire to control the quality, distribution and rate of growth.” Its provisions expire on December 31, 1995. (Editors Note: Ventura voters approved Measure I in November, 1995, restricting urban development on agriculturally zoned areas within the City Sphere of Influence until 2030). As Table 3 shows, specific references to the details of future development vary from community to community. RESTRICTIONS ON DEVELOPMENT IN AGRICULTURAL AREAS All five plans emphasize the problems farmers face when urban development begins to move onto their farmland. Ventura provides the most comprehensive list of these problems, including (1) vandalism, (2) water quality and quantity, (3) drainage, (4) street easements, and (5) complaints regarding “cultural practices” such as wind machines, pesticide spraying and dust. Like the other four plans, the Ventura document contains general language that “discourages” conflicting land uses from occurring in essential agricultural areas, but does not provide specific techniques for this purpose. The Ventura plan only recommends that the city investigate such problems and develop policies that will aid agricultural owners in minimizing impacts. 63 In common, the city plans require new development to provide adequate buffers and fencing between residential and agricultural uses. The Moorpark plan calls for using the specific plan process to ensure that adequate buffer areas are established. COMPACT DEVELOPMENT To varying degrees, all five plans recognize higher density and infill development as appropriate methods of minimizing the impacts of growth on open space land. Several plans refer to infill development as a general policy. Fillmore’s document states: “Population growth and attendant urban development should be accommodated by infill development prior to expanding the City limits.” But infill development in residential areas, some documents caution, should not involve higher densities than surrounding uses. Most likely as a result of regional and state requirements for providing affordable housing, all five plans refer in their Housing elements to specific techniques for achieving higher density and infill. Included are density bonuses, zoning for small lots, mixed-use development, and fee waivers or reductions. Some of the plans seek to protect existing low density residential neighborhoods by confining high density uses to only downtown or commercial areas. Moorpark’s plan notes in the Land Use and Housing elements that the overall density and intensity of development should decrease as distance from arterials and commercial shopping centers increases. Only Moorpark and Fillmore plans specifically mention farmland and open space preservation as a justification for promoting higher densities. Moorpark’s Housing element notes that one of the acceptable reasons for allowing clustering of residential dwelling units is the subsequent creation of common areas that can be used to protect agricultural lands. Fillmore’s plan also mentions cluster and planned development as a means of providing open space. 64 Infill development in commercial and industrial areas is also cited as a way to reduce the conversion of open space. The Oxnard plan addresses the need to infill older and underutilized commercial and industrial areas. Ventura’s Land Use element includes the goal to: “encourage orderly growth and development, particularly through the development of vacant and unproductive properties in areas that are already developed.” RURAL RESIDENTIAL DEVELOPMENT Housing is the dominant land use among all the plans, with single-family homes on large lots the preferred option in most residential areas. All five land use elements emphasize goals that reflect the residential traditions of small towns wanting to retain their rural atmosphere. Many of the plans mention the goal of creating “opportunities for diverse rural residential environments” without noting the potential conflict with goals for preserving farmland and open space. A general goal of the Fillmore plan is to “create opportunities for estate-type residential development in outlying portions of the Planning Area in such a manner as to have orderly development and preserve agricultural resources.” ANNEXATIONS City expansion through annexation is the major source of farmland conversion. All of the general plans refer to LAFCO policies stressing that urban development and the extension of urban services belong within cities. The Ventura plan also notes support for the Guidelines for Orderly Development. In the two city plans that are most clear about the preservation of farmland, relative emphasis is given to discouraging the annexation of productive farmland for development purposes. The Camarillo plan states: “Agriculturally designated lands should not be annexed unless there is some compelling need or benefit to the City.” However, “compelling need or benefit” is not defined and presumably left to the discretion of the planning commission and city council. The Ventura plan states: “Those lands designated as Agriculture Use will not be annexed unless for public purposes or redesignated for development in accordance with the goals and policies of the Plan.” The most extensive policies for annexing open space land are found in Oxnard’s general plan. Similar to other documents, it acknowledges the need to infill or develop within urban areas before annexing more land or extending urban services. But it also outlines specific conditions that could justify annexation, including an adequate infrastructure plan and fiscal program. The Oxnard Housing element refers to potential areas for annexation: “There are several large vacant and agricultural areas within the Planning Area, both inside and outside the City limits, which have (residential) development potential.” 65 The five plans’ annexation policies overall are consistent with the Guidelines for Orderly Development, but contain little that could be interpreted as long-term protection for farmland. A city’s need for annexation appears to be related to how much undeveloped land currently exists within its borders. As the only document that does not foresee the need for annexation, the Camarillo plan notes: “there is undeveloped land within the present limits that could accommodate considerable population, even at relatively low density residential zoning.” 66 County of Ventura General Plan With the bulk of farmland contained within unincorporated areas, the County of Ventura General Plan gives more attention to farmland protection than any of the city plans. Adopted in May, 1988, the County’s document is organized into four chapters: Resources, Hazards, Land Use, and Public Facilities and Services. Agricultural issues are covered primarily in the Resources and Land Use chapters and technical appendix. The planning horizon for the plan is the year 2010. Farmland Protection Rationale The overriding rationale for farmland protection is economics. The plan notes agriculture is Ventura County’s number one industry and has statewide and national importance. The plan’s goals include promoting the development of facilities and programs related to marketing locally grown agricultural products. The County plan differs significantly from the cities’ plans in its distinction of agricultural land as a separate land use from open space. Open space land is recognized for its intrinsic values--aesthetics, natural openness--while farmland is valued primarily as productive land. IMPLEMENTING TOOLS In comparison to the cities’ documents, the County plan is much more extensive in addressing the problems associated with urbanization of farmland. The Resources Appendix includes a lengthy section on farmland resources that examines the factors which affect agricultural economic viability. The factors described are: • • • • • • • • • • Cost of land, cost of water, cost of material and equipment, cost of labor, the cost of processing and distribution, interest rates, consumer demand, natural factors, housing and its effect on agriculture, and congestion on farm-to-market roads. The plan notes that while most of these factors are outside of County government control, the County can take some actions which would indirectly support the economic viability of local agriculture, including land use planning policies and regulations. Farmland preservation programs mentioned are: 67 • agricultural land use designation, which establishes a 40 acre minimum parcel size and agricultural exclusive zoning; • participation in Greenbelt Agreements and the Guidelines for Orderly Development with the cities; • widespread use of Williamson Act contracts; • conservation and water development programs. The plan notes the value of land trusts, including the Ventura County Agricultural Land Trust and Conservancy and the American Farmland Trust. The document also recommends that the County’s Public Works Agency should seek transportation improvements that mitigate impacts on farmland. The plan calls for minimum parcels of 40 acres for irrigated farmland, and 80 acres for non-irrigated acreage. The stated justification for such minimums is to support agricultural operating efficiency and discourage ranchette-type development and land speculation for non-agricultural purposes. Similar to the cities’ plans, the County document recommends adding policies and standards for governing development adjacent to farmland. These standards could require buffers between agricultural uses and residences, off-site flood and siltation control measures, and notification of new property owners of county and state laws that protect agricultural operations. The plans notes that the Federal Important Farmland Inventories (IFI) system was originally used to identify and map County lands considered to have agriculture value. The agricultural land use designation primarily includes lands identified as Prime Farmlands, Farmlands of Statewide Importance or Unique Farmlands, although land may not be designated agricultural if small areas of farmland are isolated from larger blocks of farmland (in such cases, agricultural land is assigned to the Open Space or Rural designation of the surrounding parcels). According to the plan’s Resource element, development should be limited on land designated as Prime or Farmlands of Statewide Importance. The plan also notes that agricultural development on hillsides has caused erosion and subsequent siltation problems. 68 RURAL RESIDENTIAL DEVELOPMENT In referring to minimum parcel sizes for agricultural land and discouraging ranchettes, the County plan recognizes the negative effects of rural residential development on farmland. Ranchette-type development frequently has negative environmental impacts, requires urban services, stimulates traffic and vandalism, and promotes speculative and increased land costs. Still, there is room for low density housing in unincorporated areas. Among the goals of the Land Use chapter is: “Recognize and plan for low density rural residential development, while preserving resources, avoiding hazards, and providing adequate public facilities and services.” The plan notes that as: “a matter of right” a single-family dwelling has always been permitted on any legally created parcel zoned for agricultural purposes in Ventura County. Some parcels thus have been created in agricultural zones primarily for expensive home sites or “ranchettes”. While density is not addressed specifically in the Land Use chapter, the Housing chapter refers to federal and state programs that promote increased density to reduce housing costs. The Land Use chapter notes that 10,200 acres of land outside the cities’ spheres of influence are designated “rural”. These areas are suitable for low-density and low-intensity land uses, such as residential estates of one acre or larger that include agricultural and horticultural uses. ANNEXATIONS One of the goals of the Land Use chapter is: “Promote the establishment of reasonable city boundaries and Spheres of Influence and prevent step-out development.” County growth should be consistent with the Guidelines for Orderly Development, the document emphasizes. The County’s land use designation “Urban Reserve Overlay” applies to all unincorporated land within a city’s adopted Sphere of Influence. The chapter notes that, while LAFCO has determined these areas to be appropriate for eventual annexation and urbanization by designating them as Community, Rural, Agricultural, and Open Space, more intense development could not occur until annexation. Applicants for General Plan amendments, zone changes, and discretionary development should apply to the appropriate city and be discouraged from applying to the County. The Land Use chapter also refers to the Greenbelt Agreement program as a means of maintaining the integrity of separate, distinct cities and preventing inappropriate development between city boundaries. A major goal is to discourage outward expansion of urban development when suitable developable land exists within identified urban centers. Seven areas are listed as candidates for new greenbelt agreements. 69 In more detail than the city documents, the County plan forecasts population growth and future land use changes affecting farmland conversion. The plan states: The purpose of population forecasts is not to impose artificial limits on the rate or form of growth, but to provide a logical basis for planning public facilities and services, and to assist the public decision-making bodies in ensuring that public needs be addressed and accommodated in a comprehensive and long-term manner. General plans are seen as being subject to change: “It should be recognized that true buildout never actually occurs, as general plans are periodically amended to anticipate and accommodate future housing and employment needs.” 70 Farmland Conversion In Ventura County Michal Moore Resource Economist Table of Contents Introduction 78 Data Sources and Methodology 79 Previous Studies Ongoing Reports 80 81 Analysis of Conversion Issues 83 83 86 Population Change & Urban Conversion of Farmland Land Cost Impacts & Proximity to Urban Uses Williamson Act 78 Other Property Sale Information 88 Intra-Agricultural Shifts 89 Important Lands - Gross Acreage Shifts 93 Summary of Conclusions 97 77 Farmland Conversion In Ventura County Introduction The area involved in this chapter encompasses slightly more than 300 square miles of Ventura County. While taking in more area than the 1977 Coastal Conservancy study- Analysis of Agriculture on the Oxnard Plain and the Urban/Rural Interface (which was confined to the Oxnard Plain alone), the objectives for examining farming and agricultural impacts are similar. The area is bounded on the east and southeast sides by the Los Angeles County line and on the north by the mountains directly north of Santa Paula. The study area includes: • Santa Clara Valley (including Piru, Fillmore, Santa Paula and Saticoy as well as the eastern edge of Ventura); • Oxnard Plain (generally including Oxnard, Port Hueneme and part of Camarillo); and • Las Posas Valley (extending to parts of Camarillo, Somis and El Rio). The Ventura/Oxnard plain has been subject to population pressures largely generated from the Los Angeles Basin. Population growth rates have slowed recently, although trends in farmland conversion have only abated slightly. The result is a relatively steady loss of "important” agricultural land. Total agricultural acreage has increased only because more marginal hillside lands have been brought into production1 . Agricultural land prices continue to increase at rates that go beyond the economic rent possible from the representative crop types. This change presages further conversion and increased pressure for urban uses in the future. 1Not all of the development of marginal foothill areas can be attributed to urban type pressures within the Oxnard Plain. The availability of efficient and more reasonably priced drip irrigation systems, changes in tax laws and prices for specialty agricultural products which could be economically grown and harvested there have all contributed as well. 78 This chapter examines the conversion of agricultural land in the Oxnard Plain. Agricultural land "converts" in three principal ways: • through "extensification" or inclusion of new lands that were formerly thought to be of marginal productive value such as hillsides or rangelands, • through abandonment or shifts to higher value-added crops or • through conversion to urban uses. In order to examine these possibilities, we build on data developed in previous studies and evaluate published statistics and interviews to arrive at conclusions. Additionally, the study has used computer generated mapping via a Geographic Information System (GIS) to visually array and interpret the spatial trends. Data Sources and Methodology This chapter of the report was generated using a combination of public data sources, interviews and previous publications. Data for individual parcel characteristics was obtained from assessor's records and incorporated into two separate data bases for analysis (see technical note on use of data base information). This allowed cross comparisons of property characteristics and also functioned as a proxy for time series events2 which were not available in this study. This information was then used with time series data, such as rates of population change and actual subdivision creation by year and location, which were publicly available from the Department of Conservation and other County offices. Finally, a series of interviews was conducted with property owners, real estate agents and appraisers to ascertain the rate of withdrawal of agricultural land areas from current uses. In order to understand the extent to which change is actually occurring, the project utilized a GIS mapping system which illustrated changes in the designated Spheres of Influence for the major cities over time, mapping the growth in urban boundaries against the remaining agricultural land uses. This acreage was compared with the reported withdrawals of land acreage from Williamson Act Open Space Contracts and in the important farmlands inventory. These in turn were used to give an indicator of the magnitude of expected change in the future (since contract non-renewal indicates a complete withdrawal from the program after a ten year period). 2 Data which reoccurs on a regular basis such as reassessment of property values. 79 The mapping system also allowed the team to simulate time series events, using the assessor's data on property value and change of ownership. Additionally, because the Assessor Record information is coded by characteristic, the mapping system can create a spatial portrayal of lands of like characteristics, such as citrus crops or vegetable crops which can be further delineated into areas under Williamson Act Open Space - Land Conservation (LCA) contracts. Previous Studies Several studies have contributed to our knowledge of conditions within the study area and have been utilized in the compilation of this study. They include: • 1970 - The Economics of Conserving Agriculture in Ventura County Author - Bill Wood This pioneering study established the contribution of agriculture to the local economy and local government revenues. He measured these against the economic impacts of comparable land uses and projected estimated population increases and land use changes into the future. • 1977 - Analysis of Agriculture on the Oxnard Plain and the Urban/Rural Interface Author - Dickenson, et al, for the California Coastal Commission This study set out the broad physical and cultural factors affecting agricultural production on the Oxnard Plain including climate, soil type and productivity, water availability and broad scale demographic characteristics. It described existing agriculture and its productivity as well as describing the historic trends in production and the revenue generated from the industry. This study also introduced the concept of critical mass industries, and forecast the point at which continued urban development would threaten those relationships. Using public planning information, the report forecast the growth rate and expansion of the existing urban growth patterns. • 1991 - The Impacts of Farmland Conversion in California Author - Jones and Stokes for The California Department of Conservation This report analyzed several counties in California with particular emphasis on Ventura County. It borrowed heavily from the Coastal Commission’s 1977 study to establish the basic relationship of the agricultural community to the local economy and used this to develop a new forecast of the impact of farmland conversion. This study was the first to utilize the studies begun in 80 1988 by the Department of Conservation to map the changing rate of conversion of important agricultural land in California. • 1994 - Overall Economic Development Plan Author - UCSB Economic Forecast Project This document contains an analysis of the economic factors influencing the County including labor markets, demographic characteristics, retail markets and real estate trends. It further evaluates the influence of several macro trends in the national and state economy which may affect different sectors of the County economy. This report provides the first comprehensive analysis of the County’s economic base and will be invaluable for ongoing trend analysis of changing conditions. • 1994 - Report to the Hansen Trust Author - Dick Johnson This report was made to the Hansen Trust to categorize a lengthy series of interviews with persons concerned with the future of agriculture in Ventura County. The interviews delved into the role, importance and future of agriculture in the County and ultimately were the basis of an educational outreach program that is currently ongoing in the County school system. Ongoing Reports Several sources of information are renewed annually and provide the ongoing statistical data for a report such as this. They include: • Annual Ventura County Statistical Abstract Author - Stephen D. Cummings and available from Ventura County Economic Development Association This abstract updates the broad census of information specific to the County from population and labor to sales of real property. Begun in 1990, it is updated annually. • Assessor’s Records The Assessor's Records provide the basis for applying property based taxes such as the property tax, bond issue levies and special taxes. This record encodes information on parcel characteristics including ownership, dates of sale and estimated values. The list of records is updated annually although actual reappraisals of property value take place only at the time of sale or under other special circumstances 81 • Maps Base maps for the GIS system were provided by the County Engineering Department, County Planning Department, the Local Agency Formation Commission (LAFCO) and individual cities. These were augmented by field checking the results. • Annual Crop Reports Annual reports of crop production, value and acreage are provided through the County Agricultural Commissioner. These are available in hard copy from 1948 to the present. A summary of Cropland History has been compiled from this information by Robert Brendler and is available from the University of California Cooperative Extension. • Crop Characteristics and Costs Characteristics, sources of interviews and costs were supplied through data available in the offices of the University of California Cooperative Extension. Much of the history of crop performance and changing crop characteristics was only available from interviews with the farm advisors for the Cooperative Extension. These reports are updated periodically. • Conversion Reports The Farmland Conversion Report of the, begun in 1984 by the California Department of Conservation Farmland Mapping and Monitoring Program, reports gross acreage changes by County on a biennial basis. Data are supplied by survey of individual counties. 82 Analysis Of Conversion Issues We have examined the conversion rates of agricultural land from several vantage points. These include: • conversion that can be attributed to pressure from urban demands; • the effects of rising land costs, especially in proximity to urban areas; • shifts in acreage devoted to crop types within the area (to achieve higher or more frequent yields or to emphasize higher value-added crops); and • actual acreage lost to production, as classified by the important farmland mapping program. There has been a relatively constant but not accelerating trend of farmland conversion. It is predictably more intense at the edge of urban areas. The balance of this chapter presents some of the trends in tabular and graphic form, illustrating the magnitude of the change. Population Change & Urban Conversion of Farmland A major force driving land conversion within the County is change in the resident population. Population growth has, until recently, been due almost equally to natural rates of growth3 and in-migration (the exception being the period 1980 81). The rate of net migration in the last 5 years, however, has slowed dramatically, as illustrated in the Table 1 and Figure 1. 3 Births over deaths 83 Table 1 Population Change Ventura County Year Total Increase Natural Net Migration 17,300 13,800 13,800 12,700 12,000 13,600 14,500 17,100 17,600 13,300 10,900 11,900 10,500 9,800 5,861 6,464 6,495 6,545 6,340 6,992 6,653 7,103 7,528 8,124 8,752 8,889 8,642 8,293 11,439 7,336 7,305 6,155 5,660 6,608 7,847 9,997 10,072 5,176 2,148 3,011 1,858 507 !80 - 81 !81 - 82 !82 - 83 !83 - 84 !84 - 85 !85 - 86 !86 - 87 !87 - 88 !88 - 89 !89 - 90 !90 - 91 !91 - 92 !92 - 93 93 - 94 Source: US Census, Ventura County, Ventura County Statistical Abstract Figure 1 Ventura County Population Changes - Natural vs. Migration Ventura County Components of Annual Population Increase 18000 16000 14000 12000 Total Increase 10000 Natural 8000 Net Migration 6000 4000 2000 0 !80 81 !81 82 !82 83 !83 84 !84 85 !85 86 !86 87 !87 88 !88 89 !89 90 !90 91 !91 92 !92 93 Source: US Census, Ventura County, Ventura County Statistical Abstract 84 Population growth is driven in part by changes in employment opportunities. As shown in Figure 2 below, there was dramatic growth in Ventura County’s employment (all industries combined) in the 1980’s, from less than 170,000 to a peak of nearly 250,000 in 1990, with a slight decline since then. (In contrast, agricultural jobs have continued to grow, from a low of 14,500 in 1985 to nearly 19,000 in 1993). Figure 2 Total Ventura County Employment (,000) All Agriculture vs. All Other Industries 250 19 All Industries 18.5 240 18 230 17.5 220 17 210 All Agriculture 16.5 200 16 190 180 All Industries 15.5 All Ag 15 170 14.5 160 14 !1980 !1985 !1990 !1991 !1992 !1993 Source: US Census, Ventura County, Ventura County Statistical Abstract Subdivisions and other urban activity permanently convert agricultural lands. The process can be discontinuous, depending on fortuitous circumstances (i. e. willing seller and willing buyer), speculative investment, local government plans and approvals, and finally market forces. Conversion is a permanent event in two key senses. First and most obvious is conversion to actual urban uses. While it is physically possible to remove buildings and infrastructure, doing so on a scale that would redevelop profitable agricultural uses is improbable at best. Additionally, speculative pressure contributes to changes in agricultural use patterns that appear to be the harbinger of ultimate urban conversion which is discussed below. 85 Land Cost Impacts and Proximity to Urban Users Urban demand is transferred to agricultural land through land price bids, both direct as in formal purchase offers, and indirect from recent sales in the vicinity. The force is felt by agricultural owners in forms ranging from land prices creating a barrier to new entrants to a growing attitude among resident farmers that the land has ceased to be a capital asset and is functioning largely as a bank for future nonagricultural uses. This theory seems to be borne out by examining the assessor’s records for the study area, for lands both in and out of Williamson Act contracts. WILLIAMSON ACT LAND CONSERVATION AGREEMENTS The California Land Conservation Act, also known as the Williamson Act, has protected agricultural and open space land for over 25 years. The Act is a voluntary, locally administered program. Landowners who enroll their land in 10 to 20 year contracts with local governments receive lower property taxes based on the actual use of the land for agricultural and open space purposes rather than their Proposition 13 based value estimate. Costs of running the program are partially offset by State revenue subventions to counties. The tax differential that was a major incentive for property owners has gradually diminished in value since the inception of the program with a corresponding increase in rates of contract non-renewals. By 1991 Ventura County cumulative non-renewals totaled 33,543 acres or nearly 1/3 of all non-renewals in the South Coast/Desert Region. This represented 22% of the total land under contract in Ventura County (152,300 acres). Non-renewals in the 1990-91 period were reported as 1,831 acres. The figure becomes important more in terms of motives for individual land owners than direct conversion since the lag period is at least 10 years until actual contract cancellation. Sales of land held in Williamson Act contracts reflect a price differential of up to 30% less than non-contracted lands and are fewer in number than those offered without contract restrictions. Non-renewal of contracts appear to offer illustrative but not definitive indicators of future land conversion pressure. 86 In Williamson Act (LCA contract) Property values adjacent to the urban fringe (Sphere of Influence) can be 55% to 85% higher than in more remotely located areas away from the Sphere of Influence (SOI) depending on crop type and zoning. Out of the Williamson Act (LCA contract) The range is greater, but the effect is still the same. Proximity to the urban boundary confers a price differential: • up to 91% for truck farms • up to 42% for lemons • up to 26% for range lands • up to 10% premium for avocado lands When viewed in terms of zoning4 categories, a similar phenomenon is seen in Table 2. Table 2 Selected Examples of Farm Land Values Per Acre By Zoning Designation Zone Adjacent Non-Adj. Differential Residential Estate RE1 $25,600 $19,411 32% Agriculture Exclusive AE $14,400 $11,500 25% Rural Agriculture RA $32,500 $15,000 116% Source: Ventura County Assessor - 1994 These data illustrate the effect on land costs of proximity to urban areas given the presumed ultimate use of the property, demonstrating as well the differential offered by the presumption of accompanying urban type uses. This is borne out by legal and planning documents. Using the GIS information generated for the study area, land price relationships in correlation with agricultural use can be identified. These data show the expected influence of the urban boundary line. Similar property value differentials are noted 4Zoning designations are used by planners to provide guidance in interpreting the General Plan of the County. In the broadest sense, they divide future land use potential into four categories: residential, industrial, commercial and agriculture. Zoning designations can be combined to provide greater flexibility (or limits). 87 at the intersection of principal access roads and in the proximity of recent public projects such as school facilities. OTHER PROPERTY SALE INFORMATION In a 1994 Environmental Impact Report (EIR)5 for a project near Buellton, a proposed parcel map would re-subdivide one legal lot totaling 3,877 acres into 31 parcels, ranging in size between 101 and 224 acres. The EIR established economic values which bear on the case of values in the Ventura County area. The following excerpts from the EIR illustrate this. "The primary economic concern associated with the proposed arrangement is the potential for the project to increase land values in the region, thereby inducing other ranch properties to subdivide in a similar manner. . . . . . Based on the 94 agricultural properties on the market or recently sold in the local area as of December 30, 1993, the average price per acre for various sized parcels was as follows in Table 3: Table 3 Average Price Per Acre of Various Parcel Sizes Parcel Size (Acres) Average Value/Acre 1-5 $98,000 6-9 $43,000 10 - 20 $28,000 100 $4,000 - $10,000 Ranchland* $1,000 - $3,000 *This category refers generally to ranches considerably larger than 100 acres, up to holdings of thousands of acres. “. . . . . In addition, by creating more parcels of this size close to town, the increased land value of the project site would increase values on adjacent, non-subdivided properties, making these properties more attractive for speculation buyers.” 5Mission Oaks Ranch Vesting Tentative Map EIR, County of Santa Barbara Department of Planning and Development, 94-EIR-1, March, 1994 88 In a recent court case in which a recognized local expert property appraiser and attorney testified in a successful Tax Court Appeal, the question of assigning value to agricultural properties was reviewed for 41 acres of orchards and row crops near Camarillo6 . In finally deciding true agricultural land value, the court turned to comparable appraisals from the Santa Barbara area, finding them less influenced by speculative land bids from a nearby urban area. In its decision, the Court stated "We find that the prices of farmland in Ventura County have been affected by the locale's proximity to Los Angeles County and 'urban sprawl' therefrom." A brief look at recent agricultural land sales in Ventura County (1990 - 1994), including lemons, row and specialty crop lands7 , indicates that average sales prices have been $25,000 per acre - much higher than their value purely as farms8 . Intra-Agricultural Shifts Agricultural land change in Ventura County is driven by a diverse array of forces ranging from land price bids to shifts in market prices for products. Clearly, as long as land is retained in agricultural production, the owner or tenant will seek to maximize return per acre (especially given high land costs), based on such factors as: • • • Annual yield per acre Market price for the product, and Costs of production. A detailed look at Table 4 on page 30, suggests some of the shifts that have been taking place between agricultural crop types. Of these selected crops, acreage in Valencia orange production has experienced the largest overall decline, from about 16,000 acres in 1975 to 12,300 acres in 1993. The largest gains in acreage have been for higher value crops such as avocados, strawberries, broccoli, celery and specialty lettuces. While the choice of crop type is closely linked to changes in market prices, change is not instantaneous, with time needed to process information about expected market trends as well as to modify agricultural operations and planting commitments. 6Tax Court Memorandum Decisions, Estate of Elizabeth G. Hughan, CCH Dec. 47, 413(M), Arguments by Lindsay F. Nielson, Ventura, 1992. 7 Based on 12 property sales from 1990 to 1994. 8 The market value of a parcel of agricultural land contains an unearned increment not attributable to agricultural production. This speculative increment exceeds the capitalized value of the agricultural investment on the land on parcels near an urban boundary (Ventura County Assessor, Jerry Sanford, 1991). 89 Fruit and nut crops (including citrus) dominate crop selection and gross receipts to the County economy, with an increasing influence of specialty agricultural crops such as avocados. The aggregate published data, with citrus under the "fruit and nut " classification, illustrates the broad decline of field crop share. Figure 3 Long Term Economic Performance Gross $ Return per Acre 30,000 25,000 Gross Income $ 20,000 15,000 10,000 5,000 0 1980 1985 Avocado Str awberries 1990 1991 Valencia Oranges Source: Ventura County Agricultural Commissioner Data 90 1992 Lemons 1993 1994 Ave. Row Crop As shown below in Table 4, by far the highest gross returns per acre, as of 1994, comes from strawberries, at $29,000. Other high gross return crops include avocados ($4,500), peppers ($4,500), lemons ($7,400), celery ($8,300), and other high value vegetables (cabbage, cauliflower, lettuce, and spinach all over $4,000/acre each). Table 4 Detailed Gross Income in Dollars Per Acre by Type of Selected Crops !1980 !1985 !1990 !1991 !1992 !1993 !1994 5 Yr Ave Specialty Avocado Strawberries Peppers9 Average Specialty 1,454 16,639 2,903 6,999 1,706 19,990 3,340 8,345 3,294 30,099 2,918 12,104 2,638 29,477 2,690 11,602 2,152 18,228 3,428 7,936 3,080 23,033 4,018 10,044 4,490 29,022 4,486 12,666 3,130 25,971 3,508 10,870 Citrus Naval Oranges Valencia Oranges Lemons Grapefruit Average Citrus 1,118 2,808 5,043 1,171 2,535 4,159 3,926 5,434 1,145 3,666 5,736 3,578 7,819 12,892 7,506 7,305 7,322 8,716 8,647 7,998 2,883 2,957 7,109 2,813 3,941 2,027 3,653 8,916 4,268 4,716 2,743 3,218 7,446 2,352 3,940 4,138 4,145 8,001 6,194 5,620 1,374 2,321 2,889 3,387 2,563 2,083 4,627 2,549 1,917 2,780 2,169 3,248 1,328 3,126 3,400 4,475 2,644 2,808 2,634 2,886 2,964 3,876 2,498 1,869 3,496 3,229 7,572 6,124 3,949 2,770 3,835 3,492 3,547 2,802 3,113 4,150 3,847 7,231 4,490 2,913 2,429 3,801 2,721 3,859 3,908 3,804 3,414 3,254 6,732 4,367 3,718 1,703 3,748 2,769 4,075 3,512 2,577 4,635 4,433 11,522 4,245 3,895 2,236 4,390 3,515 4,396 4,336 4,798 5,328 5,849 8,339 3,630 4,444 3,128 4,776 3,092 3,950 3,411 3,232 4,204 4,122 8,279 4,571 3,783 2,453 4,110 Row Crop Broccoli Cabbage Cauliflower Lettuce- Head Lettuce - Romaine Lettuce - Leaf Celery Cucumbers Spinach Sweet Corn Average Row Source: Ventura County Agricultural Commissioner 9 Peppers are included in the specialty category to illustrate the trend to high value crops. 91 This trend of shifts to higher yield, higher value crops in Ventura County, however, may be just the precursor to eventual urbanization. In their 1991 report, The Department of Conservation10 speculated that a clear intra-agricultural transition could be identified, which ultimately led to urban conversion, illustrated in Figure 4 below. Figure 4 Land Conversion Transition Paths Intensity of Use Urban Specialty Citrus Row Crops Viticulture Field Crops Range Dairy/Poultry Time This is a predictable result, given price theory in agricultural production - each agent will strive to maximize the rent from the land available. As a matter of practice, though, transitions appear to follow land sales, perhaps with mortgage rent providing the impetus to shift to higher value-added crops and eventually urban uses. 10The Impacts of Farmland Conversion in California, California Department of Conservation, 1991 92 Important Lands - Gross Acreage Shifts Shifts in agricultural land have been catalogued since 1984 by the Department of Conservation in figures reported by the County Agricultural Commissioner. They illustrate a continuing trend of conversion of land. This conversion is primarily occurring from the stock of those lands classified as Prime and Land of Statewide Importance and is shown in Table 5 below. Table 5 Important Land by Category Acres in Ventura County Year !1984 !1986 !1988 !1990 !1992 !1994 10 Yr.Diff % Diff Prime Land of Unique Farmland Statewide Farmland Import 57,023 55,718 54,757 53,591 53,300 53,042 3,981 7% 39,922 39,346 38,809 38,299 38,102 37,883 2,039 5% 22,915 22,608 22,479 22,510 22,454 22,512 398 2% Farmland Important of Local Subtotal Import 12,486 12,353 12,190 11,691 11,442 11,416 1,070 9% 132,346 130,025 128,235 126,091 125,298 124,808 7,538 6% Grazing Total Agriculture 212,736 211,822 211,130 210,068 209,630 209,091 3,645 2% 345,082 341,847 339,365 336,159 334,928 333,900 11,182 3% Source: State Dept. Of Conservation, FMMP The prime and lands of statewide importance categories of important farmland in the Farmland Mapping and Monitoring Program are based upon statewide technical criteria relating to soil quality and water availability. Unique lands fail to meet these technical criteria, but produce any of the state’s forty highest cash value crops. In Ventura County the Oxnard Plain and the valley floors meet the criteria for prime or statewide important lands. The gentle to steeply sloping irrigated land in the county produce high value crops, primarily avocados and lemons, which allow them to be classified as unique. The remaining non-irrigated lands, which are farmed primarily to grains or hay are classified as lands of local importance. Unfortunately, the largest share of conversion is of lands classified as prime and other important agricultural lands. Over the 10 year period 1984-94, about 7,500 acres of important agricultural lands were lost, while about 3,600 additional acres of grazing were lost. While the rate is not alarming, it is steady. 93 Figures 5 A and B below graph the gross reduction in acres over the past ten years, by the same categories. The relative flat rate of decline in 1992 and 1994 probably reflects the lingering recession in the property development market. Figure 5 A and B Total Farm and Rangeland by Type in Gross Acres 60,000 350,000 340,000 55,000 330,000 320,000 310,000 300,000 50,000 290,000 280,000 270,000 260,000 45,000 35,000 Acres Acres 40,000 30,000 210,000 200,000 190,000 180,000 25,000 20,000 170,000 160,000 150,000 140,000 15,000 10,000 1984 1986 1988 1990 1992 1994 Prime Farmland 130,000 120,000 1984 1986 1988 1990 1992 1994 Land of Statewide Importance Important Subtotal Unique Farmland Graz ing Farmland of Local Import ance Total Source: State Department of Conservation, FMMP 94 250,000 240,000 230,000 220,000 Total land conversion seems to be closely correlated with the actual number of subdivision acres created annually.11 Figure 6 below illustrates the same trend in terms of lands converted directly to non-agricultural use. Figure 6 Acres Lost to Urban Uses by Category 8,000 Total converted by 1994 was 11,200 acres 7,000 6,000 Acres 5,000 4,000 3,000 2,000 1,000 0 1984 - 1986 1986 - 1988 1988 - 1990 Prime Farmland Unique Farmland Important Subtotal Total 1990 - 1992 1992 - 1994 Land of Statewide Importance Farmland of Local Import ance Graz ing Source: State Dept. Of Conservation, FMMP 11This can be deceptive. There is a strong correlation between new subdivision acreage annually and the number of agricultural acres removed from production. Actual subdivision activity in terms of current houses being constructed takes place within incorporated boundaries, thus much of the removal may reflect future or anticipated growth. 95 The tradeoff involved is fundamental, since the quantity of land is fixed. This tradeoff is illustrated in Figure 7 below. Conversion of agriculture lands to nonagricultural uses has continued at a relatively consistent rate. Total agricultural acreage has dropped from 345,000 to 334,000 acres in the County, while urban acreage has grown from about 77,000 to 92,000 acres over this ten year period. Figure 7 Net Change in Total Agricultural Acreage vs. Total Urban and Built up Acreage 5,000 4,000 3,000 Acres 2,000 1,000 0 -1,000 -2,000 -3,000 -4,000 1984 - 1986 1986 - 1988 Loss of Agr icultur al Acreage 1988 - 1990 1990 - 1992 1992 - 1994 Increase in Urban & Built -Up Acre age Source: State Dept. Of Conservation, FMMP Rates of conversion, when compared to the State as a whole, are slightly higher and probably reflect the continuing demand from the adjacent Los Angeles urban market. 96 Summary of Conclusions This chapter concludes that conversion of agricultural land over the last ten years continues at a relatively constant rate, with no indication that the trend will diminish even though the trends span periods of recessionary activity. Reflected in major part is the demand for urban expansion space and the resultant response to increased bid prices for open land, even when not zoned for other than agricultural use. The change in use is not, however, always occurring in the locations where either the market or the prevailing general plans have anticipated.12 • Most conversion pressures continue to be from demand fed by natural population increase and in-migration. • Strong market pressure to specialize, to take advantage of capital investment that increases production (or its corollary - diminished labor costs), has continued to result in intra-agricultural changes. Thus, many of the shifts from row crops to specialty agriculture or lemons or avocados can be linked to the trend to higher value crops to maximize return per acre on high value land. • Bringing previously unused acreage into production such as in the foothills has also generally emphasized high return crops such as lemons and avocados. As a consequence, many of the shifts from row crops to specialty agriculture, or bringing new foothill lands into lemon or avocado production, can be linked to the trend to higher value added land use. Of the citrus acreage replaced since 1980, 90% appears to be Valencia oranges replaced by avocados. • Rates of conversion are not as high as the 1977 Coastal Commission report had forecast. This is in part explained by consistent and firm land use policies exercised by most cities, the Ventura County government and LAFCO; slower urban growth; and bringing new agricultural lands into production. • Interviews with the farming and real estate community suggest that a dwindling proportion of farmers expect to be in agriculture for the long term. This attitude is more in evidence the closer the property is to an urban boundary. Additionally, lands owned by individuals show a slightly higher tendency to convert to urban uses than those held by corporations or partnerships. (The supportive correlation also shows higher average acreage per holding by corporations, illustrating one of the economies of scale available to them). 12 This conclusion is supported by trends illustrated in the Geographic Information System data associated with this report 97 • Population overall in the County continues to grow. This is not directly related to agricultural acreage lost or agricultural conversion to new houses, suggesting that residential demand continues to be accommodated in cities. This is in contrast to demand for commercial expansion which seeks out access to major road intersections which are often in unincorporated areas. • Changes in overall production costs, such as water or other inputs show little tendency to induce land conversion but may stimulate intra-agricultural transfer. Property sales clearly steer the way to ultimate conversion, though, and the combination of sale values and current crop can be used to predict likely future land use changes. • Data for land prices within protected areas such as greenbelts suggest they may be acting as holding areas rather than permanent buffer zones. For instance, sale prices do not appear to differ significantly from zones outside the protected greenbelt. • As demonstrated in the associated GIS, the preponderance of conversion to urban uses in rural areas has been taking place in the form of small (under 5 acre) residential developments within generally agricultural areas, usually in the proximity of urban areas. • Land values tend to decrease as a function of distance from the urban limit lines, with certain exceptions. These seem to occur near road intersections where future growth might be anticipated, next to public facilities such as schools, or in areas where a future change to the General Plan might be anticipated. Where this occurs within designated greenbelts, the inference is that future zoning or General Plan changes will modify or diminish the intensity of regulation there. • Speculative sales may be leading or driving values and consequently future intra-agricultural crop changes. The value of these sales implies confidence that conversion possibilities exist within relatively short time frames, since the holding cost for land purchased at levels in excess of the agricultural return can be excessive. 98 Ventura County Agricultural Support Industries Analysis David Strong Strong Associates 240 41st Street Oakland 94611, 510-428-2904 Table of Contents Introduction Purpose Background Methodology Survey Results By Location By Crop Supported By Type of Business By 10-Year Forecast By Percent Reliance on Ventura Agriculture 100 100 100 102 105 106 107 107 110 111 Analysis Of Crop Reduction Capacity 112 Comparison With 1977 Coastal Commission Study 114 99 Introduction Purpose This chapter analyzes the degree of dependence of Ventura County agricultural support industries on the County’s agricultural production. Businesses that rely on agricultural production thrive and expand when direct agricultural production prospers and grows. If agricultural lands are reduced or productivity declines, businesses that support agriculture leave the area or, because of reduced competition, costs may rise or service delivery times lengthen. This chapter is based upon on a focused survey of those businesses which rely on Ventura agriculture for a substantial portion of their sales. The survey results estimate how much loss in agricultural productivity, including which types of crops and their effect on various categories of support industries, could be sustained without the support industries going out of business or leaving the County. This chapter includes the following parts: • Introduction, giving background on the region and changes in agricultural production over the past 20 years, as well as describing the methodology used in this analysis. • Survey results, discussing the findings of interviews with the various support industries by location, type of business, type of agriculture they serve, etc. • Analysis of crop reduction capacity, that is how many acres of current agricultural land could be taken out of production based on the survey results. • A comparison with the 1977 California Coastal Commission study (“Analysis of Agriculture on the Oxnard Plain and the Urban/Rural Interface”). Background In 1993, Ventura County had an estimated 81,000 harvested acres of selected1 tree and vegetable crops (including most citrus, avocados, and five key vegetables, including double cropping of some vegetable crop acreage). In 1975, these same crops totaled only 66,000 harvested acres. Thus, as shown in Table 1, there was an increase of almost 19% over the 18 year period in these selected crops. The major 1 Only major tree and vegetable crops were selected to develop this analyses, thus the harvested acres noted are less than the total harvested acres inventoried in the first chapter of this study 100 increases in acreage have been for avocados, specialty crops and vegetables (particularly strawberries, lettuce, and broccoli). Lemons - the County’s most important crop - have increased slightly, while oranges and cabbage have declined since 1975. Table 1 Comparing Harvested Acres in 1975 and 1993 Selected Crops Year 1975 1993 Trees Lemons Oranges Avocados Total Tree, Selected Crops 17 Yr Diff % Change 23,098 15,879 4,720 43,697 24,239 12,325 16,199 52,763 1,141 -3,554 11,479 9,066 4.7% -28.8% 70.9% 17.2% Vegetables (1) Celery Strawberries Lettuce Broccoli Cabbage Total Vegetable, Selected Crops 8,739 2,050 4,688 3,561 3,100 22,138 9,878 4,795 6,824 4,632 2,202 28,331 1,139 2,745 2,136 1,071 -898 6,193 11.5% 57.2% 31.3% 23.1% -40.8% 21.9% Total 65,835 81,094 15,259 18.8% ___________________________________ Source: Table 1 "Ventura County Crop Acreage" from Ag in Ventura County: Its Impact on the County Economy (1) Note that vegetable acreage is reported in single planting acres. Cooperative Extension Advisors estimate double cropping of all vegetable acreage. It should be noted that this increase in acreage in higher value crops has involved both a conversion of acreage previously used for lower value agricultural production and a shift from level well drained lands to hillside lands requiring drip irrigation. Meanwhile, there has been a reduction in overall agricultural land acreage (as discussed in detail in Chapters 1 and 3). There is now little additional land available for expansion for new agricultural development. In fact any additional urban development on existing agricultural land will most likely result in a loss of agricultural production with no replacement in the County. 101 For this chapter, the County’s agricultural production has been broken down into three geographic sub areas: • The Oxnard Plain area which surrounds the City of Oxnard and extends towards Ventura and Camarillo. The principal crops in this area are vegetables, including strawberries, celery, broccoli, cabbage, etc. , with some production in trees; • The Las Posas Valley area which adjoins Camarillo and into the surrounding foothills. Crops in this area are similar to the Oxnard Plain, but includes more tree crops; and • The Santa Clara Valley which surrounds the Santa Clara River up through Saticoy, Santa Paula, Fillmore and Piru, in which principal crops are trees, specifically avocados, lemons and oranges. Methodology This analysis relies on interviews with representatives of businesses in the agricultural support industries. A breakdown of the categories of agricultural support businesses includes: • business services (accounting, financial, and legal services to agricultural and other businesses); • agricultural sales and services, including businesses selling agricultural products, such as nurseries, as well as services such as fertilizer and pesticide applicators, pollination, frost protection, etc.; • equipment sales, service and manufacturing; • farm supplies, including fertilizer, seeds, etc.; and • citrus and avocado packers and shippers. An initial contact list was developed from the following sources: • California Grower Industry Directory • the Ventura County Farm Bureau membership list and • telephone directory yellow page listings. 102 Additional businesses were identified based on referrals from those contacted during initial interviews. The total list of people considered as possible contacts was approximately 180. The criteria for qualifying as an “agricultural support industry” are: • reliance on Ventura County agriculture for at least 5 to 10 percent of gross sales • being located in Ventura County • if you are a grower, that supply services to other growers. During the process of interviewing, it was discovered that many of the 180 potential names did not qualify. Most were growers providing their own services (production agriculturists, that is farmers who are also providing shipping and packing and/or sales, services, etc. for their own agricultural production as a vertically integrated agricultural operation). These were eliminated from the data base, since they are not actual support businesses. While an estimated 80 to 90 respondents were contacted, the final number of relevant interviews was 34. The questionnaire identified the location of each business, the person contacted and their title, and then included the following questions: 1. What products and/or services does your firm provide for Ventura County agriculture? (answers such as: nursery, packing/shipping, consulting, business support) 2. What agriculture products does you firm support? (answers such as: tree-avocado, lemon, strawberry, other vegetables) 3. What percent of your business relies on Ventura County agriculture production? (somewhere between zero and 100%) 4. Of the percent that relies on Ventura County agriculture, can the products or service be broken down into the following geographic areas? Oxnard Plain -- Los Posas Valley -- Santa Clara Valley 5. What is the estimated maximum reduction in agricultural production in Ventura County that your firm could withstand and remain in business (in terms of % of business activity)? This is the key question for estimating the amount of 103 production agriculture necessary to sustain the support business. The response to this question was approached by each respondent based on several different factors including: • historic employment patterns • management capacity • key employee positions • profit to operation size ratio • opportunities for other non production agriculture sales • desire to remain in business in Ventura County 6. Estimated number of employees; full time and part time. 7. Does your firm use other products and services from other Ventura County businesses (agriculture and non-agriculture)? How? 8. Is there anything else you would like to add that encourages or discourages your ability to do business in Ventura County? 9. Where do you see your business in 10 years (less, the same or more business activity)? The results of this survey are tabulated and discussed later in this chapter. In addition to the essential primary data research from interviews, other sources of background information for this analysis include: • 1977 Coastal Commission Study • 1993 U.C. Ventura County Economic Study • 1994 Ventura County Statistical Abstract • Assessor’s Records • University of California Cooperative Extension • Ventura County Agricultural Commissioner 104 • 1994 California Grower • California Farm Bureau Cooperative Extension farm advisors were interviewed to validate results from the primary interviews. Other literature sources were reviewed to validate historical trends noted in interviews. Survey Results Throughout the survey result tables, each table presents: • the number of businesses contacted; • the percentage of reliance on Ventura County agriculture for those businesses’ total activity (an average of the responses of the relevant businesses); • the percentage reduction in agricultural production that the businesses could withstand and remain in business in the County (again an average of the businesses responding); and • the average number of employees per business. It should be noted that all data represent averages of the results for all the businesses in the various categories. Individual businesses within any category may be more sensitive than others to agricultural productivity and to losses of crop acreage. It must also be emphasized that the estimates of percentage reduction that Ventura County support industries could withstand represent the point at which those businesses (on average) would go bankrupt, close their doors, or leave the County. The stress to an agricultural support business would start at a much lower percentage. That stress could take the form of employee layoffs, reduction in services, inability to make needed capital investments, etc. The tables and following text evaluate the sensitivity of these support businesses by: location, crops supported, type of business, ten-year forecast, and percent of reliance on Ventura County agriculture. 105 Survey Results By Location As shown in Table 2A, most of the support industries are located in the Oxnard Plain and Santa Clara Valley areas (31 of the total 34 in the survey). Moreover, these support businesses have high average employment, with 41.6 employees per business in the Oxnard area and 65.1 in the Santa Clara Valley. They rely between 59-63% on the County’s agriculture for their business activity, and estimate that they could survive a loss of nearly 43% of agricultural productivity. Table 2 A Ventura County Support Industries Survey Results By Location of Business Total Oxnard Camarillo S.C . Valley Number of Businesses 34 17 3 14 % Rely on Vent Ag 61.9% 58.9% 73.3% 63.1% % Loss Capacity (1) 41.1% 42.9% 23.3% 42.7% Average Jobs per Business 48.1 41.6 5.7 65.1 (1) How much sales reduction your business can withstand and remain in business. In contrast, the three agricultural support businesses surveyed in Camarillo have an average of less than 6 employees each. They rely more heavily (over 73%) on the County’s agricultural productivity, and could withstand a much smaller loss (23.3%) in that agriculture activity. 106 Survey Results By Crop Supported As shown in Table 2B, of the support businesses surveyed, 10 deal with all agriculture generally, 17 only or principally with tree crops, and 7 only or principally with vegetable crops. Table 2 B Ventura County Support Industries Survey Results By Crop Supported Number of Businesses % Rely on Vent Ag % Loss Capacity Average Jobs/Business Total 34 61.9% 41.1% 48.1 General Ag 10 51.8% 47.0% 17.8 Trees 17 69.2% 41.9% 68.6 Vegetable 7 58.6% 30.7% 41.7 Those serving agriculture generally are somewhat less dependent on agriculture, averaging about 52%, since they often serve many other sectors of the economy. They also estimate they could withstand a larger reduction in agriculture production, at an average of 47%, than those businesses serving fruit crops or vegetables. On the other hand, these general agriculture-serving support businesses employ fewer people, at an average of about 18 per business. The businesses serving trees have a high reliance on Ventura County agriculture (69.2%), yet estimate they could withstand a substantial reduction in acreage (41.9%). These businesses also have a high average number of employees, at 68.6, and this may give them flexibility to survive reduction in productivity by downsizing. Businesses serving vegetable crops are somewhat less reliant (58.6%) on Ventura County agriculture but are more sensitive to reduction in acreage, capable of sustaining only an estimated 30.7% loss. These businesses employ an average of 41.7 workers per business. Survey Results By Type of Business As shown in Table 2C, of the 34 businesses surveyed: • Five are business services (accounting, financial, and legal services to agricultural and other businesses), with an average of 28.4 employees. These businesses have the least reliance on Ventura County agriculture (36.4%) and could withstand the largest reduction in crop acreage (57%). 107 • Eleven are agricultural sales and services, employing an average of 18.9 people. These businesses, which sell agricultural products and provide services such as fertilizer and pesticide application, pollination, and frost protection, are the most reliant on agriculture (70.5%) and could tolerate the least amount of crop reduction (29.1%). • Six equipment manufacturing, service and sales businesses employ an average of 6.5 people. They estimate a 60% reliance on agriculture and an ability to survive a 30% loss in acreage or productivity. • The four farm supply businesses, with an average of 8.7 employees, estimate somewhat less reliance on the County’s agriculture (43%), yet a fairly low tolerance to crop reductions (33%). • The eight independent packers and shippers, with by far the largest employment, averaging 149.4, have a high reliance on Ventura County agriculture (66.3%) and yet estimate they could withstand up to 51.9% reduction in crop acreage. 108 Table 2 C Ventura County Support Industries - Survey Results By Type of Business Business Ag Sales & Total Service Service (1) Number of Businesses 34 5 11 % Rely on Vent Ag 61.9% 36.4% 70.5% % Loss Capacity 41.1% 57.0% 29.1% Average Jobs/Business 48.1 28.4 18.9 (1) Seed/nursery sales, professional and pest application Equip Mfg & Sales 6 60.0% 30.0% 6.5 C-1: Breakout of Ag Sales & Services by Crop Total Number of Businesses 11 % Rely on Vent Ag 70.5% % Loss Capacity 29.1% Average Jobs/Business 18.9 Trees 8 70.6% 34.4% 23.1 Vegetable 3 70.0% 15.0% 7.7 C-2: Breakout of Packers/Shippers by Crop Total Number of Businesses 8 % Rely on Vent Ag 66.3% % Loss Capacity 51.9% Average Jobs/Business 149.4 Trees 6 71.7% 49.2% 155.8 Vegetable 2 50.0% 60.0% 130.0 Farm Supplies 4 43.0% 33.0% 8.7 Tables 2C-1 and 2C-2 analyze the two most agriculture-dependent industries as to the type of agriculture on which they rely. For agricultural sales and services (Table 2C-1), the eight businesses relying on fruit crops and the three relying on vegetable crops are nearly equally dependent on Ventura County agriculture, but those serving fruit crops estimate they could withstand up to a 34.4% reduction in acreage, while those serving vegetables could withstand only a 15% reduction. The largest nursery supplying trees to Ventura County growers is actively expanding and diversifying its market, with Ventura County becoming a smaller part of its sales, which in part accounts for the treeserving sales businesses higher estimated tolerance for crop reductions in the County. For packers and shippers, the six businesses serving tree crops are 71.7% reliant on Ventura County agriculture and estimate they could survive up to 49.2% reduction in acreage. The two businesses serving vegetable crops are less reliant on the County’s agriculture (50%) and could withstand up to 60% reduction in crop acreage. 109 These results are quite different than what was found in the 1977 study and reflect several dramatic changes in the packing and shipping industry, for both tree and vegetable crops. All of the packing/shipping businesses tend to be very labor intensive (averaging nearly 150 employees per business), and the vegetable packers are also very capital intensive, requiring expensive cooling equipment. These aspects of the industry have not changed since 1977. What has changed is that the packing/shipping operations in citrus are becoming more consolidated and vertically integrated. If production decreases so that not as many packing operations are needed, growers can shift to another cooperative. Instead of each packing business competing for a share of the market to survive, the cooperatively-owned businesses have the flexibility to handle the amount of production the growers can actually produce. For vegetable packers and shippers, there is also more vertical integration than in 1977. Most of the owners of the large cooling sheds, critical to processing fresh vegetables, are also the farmers or lease and contract with farmers. Their sales people talk by telephone and arrange contracts mostly with U.S. and Canadian buyers, such as Safeway and Luckys, and then lease and farm the amount of acreage needed to fulfill these contracts up to the processing capacity of the packing sheds. They also operate in several other counties, coordinating the total acreage and packing operations needed to meet their contracted production goals. As a result of these changed conditions, the packing/shipping industry, for both tree and vegetable crops, indicates a much greater tolerance for reduction in agricultural productivity now than it did in 1977. Survey Results By 10-Year Forecast As shown in Table 2D, the businesses surveyed are split almost evenly in thirds in their predictions of future business activity. The businesses that envision getting smaller or staying the same are generally those more reliant on agriculture (6769%) and that could withstand less reduction in crop acreage (32-36%). The agriculture-support businesses expecting to grow average a 48% reliance on the County’s agriculture and an ability to withstand up to 58% reduction in crop acreage. 110 Table 2 D Ventura County Support Industries Survey Results By 10 Year Forecast: Less, Same or More Agricultural Business Activity Number of Business % Rely on Vent Ag % reduce withstand Average Employment Less 12 66.7% 31.7% 41.0 Same 12 68.8% 36.3% 63.9 More 10 48.0% 58.3% 37.7 Total 34 61.9% 41.1% 48.1 Survey Results By Percent Reliance on Ventura County Agriculture Table 2E indicates that, not surprisingly, the businesses least dependent on agriculture have the greatest capacity to tolerate crop reductions (76%). However, the businesses in the middle of the spectrum (average 49% reliance) estimate they could withstand only 32.4% crop acreage reduction, while those most reliant (averaging almost 90%) could tolerate a 37.7% reduction in acreage. This may be simply an anomaly of the survey responses or may be linked to the changes in business relationships noted above (more cooperatives and vertical integration), allowing flexibility to crop reductions even in the most agriculture-dependent businesses. Table 2 E Ventura County Support Industries Survey Results By Percent of Business Reliance on Ventura County Agriculture Number of Business % Rely on Vent Ag % reduce withstand Average Employment Under 33% 5 15.0% 76.0% 22.8 34%-66% 14 48.9% 32.4% 49.6 67%-100% 15 89.7% 37.7% 55.2 Total 34 61.9% 41.1% 48.1 111 Analysis Of Crop Reduction Capacity Table 3 illustrates the effect of applying the estimated crop loss capacities based on the survey results. These estimates are expressed in harvested acres, although increased production per acre and/or more than double cropping would modify results. For all agriculture-support businesses: • they could withstand up to 37.3% reduction in total crop acres, thus potentially going from the current 101,483 acres to a minimum of 63,612; • those dependent on fruit crops could withstand only slightly more (41.9%), bringing tree acreage from the current 59,685 to a minimum level of 34,652; • those dependent on vegetables could tolerate considerably less reduction (30.7%), thus going from the current 41,798 to a minimum of 28,960 acres. Table 3 Analysis of Reduction and Effect on Existing Crops All Support Business Acres in 1993 (1) % capacity Loss Acres loss (2) Acres Needed (3) Fruit and Nuts 59,685 41.9% 25,033 34,652 Vegetables 41,798 30.7% 12,838 28,960 Total 101,483 37.3% 37,871 63,612 Sale & Service Acres in 1993 (1) % capacity Loss Acres loss (2) Acres Needed (3) 59,685 34.4% 20,517 39,168 41,798 15.0% 6,270 35,528 101,483 26.4% 26,786 74,697 Packers & Shippers Acres in 1993 (1) % capacity Loss Acres loss (2) Acres _ _ _ _ _Needed _ _ _ _ _ _ (3) _____ 59,685 49.2% 29,345 30,340 41,798 60.0% 25,079 16,719 101,483 53.6% 54,424 47,049 (1) Chapter 1, Table 5. Harvested Acres by Commodity Group (2) 1993 acres time the percentage loss capacity (3) Acres necessary to sustain agricultural infrastructure 112 Again, it must be noted that these estimates are the point at which the collective businesses, on average, would close or leave the County. Some businesses would be more sensitive than others, and all or most would experience stress and probable lay-offs at smaller percentage reductions. Table 3 also breaks out the estimates of tolerable crop loss for the two largest and most agriculture-dependent segments of the support industry. The agriculture sales and service businesses estimated a tolerance for a 26.4% reduction in total crop acreage, with a greater loss capacity for tree crops (34.4%) than for vegetable crops (only 15%). These tolerable losses would result in a need to retain minimum levels at: • 63,612 total agriculture acres • 34,652 acres in tree production • 28,960 acres in vegetable crops. The packing and shipping businesses estimate a high tolerance for reduction in crop acres, at 49.2% for fruit crops, 60% for vegetables, or 53.6% for all crops combined. These loss capacities would result in minimums of: • 47,059 total agriculture acres • 30,340 acres in tree production • 16,719 acres in vegetable crops. The sector of the agriculture-support industry that can withstand the least reduction in production is agriculture sales and services. Equipment manufacture and sales and farm supply businesses are close behind in their sensitivity to crop losses. (See Table 2-C.) Packers and shippers, despite their high dependence on agriculture, are apparently able to withstand a much larger crop reduction due to their relatively low fixed costs and ability to respond by consolidating operations and reducing the number of employees. To avoid losing vital segments of the agriculture support industry, the most conservative crop loss capacities should be used. If the average for all agriculturesupport industries were the standard, it is likely that most or all businesses in the more sensitive sectors could be lost. Even at the most restrictive crop loss estimates, the more sensitive individual businesses may not survive. 113 Comparison With 1977 Coastal Commission Study Table 4 compares the results of the similar analysis of agriculture support businesses from the 1977 Coastal Commission study with this current analysis. In 1977, the support industry estimated they could, on average, withstand a 26.8% reduction in agriculture productivity, with somewhat higher tolerance for loss of tree crops (32.0%) and less for vegetable crops (24.4%). In the current study, the overall industry reports a tolerance for significantly greater reductions: 41.1% in total crops, 41.9% for fruit crops, and 3.7% for vegetables. Table 4 Comparison of 1977 Study to 1995 Study Percentage of Loss in Production that Ventura County Agriculture Can Withstand Oxnard Plain Study conducted in 1977 Trees Vegetables 32.0% 24.4% Total 26.8% 1995 Study Results All support Sales & Businesses Service 41.9% 34.4% 30.7% 15.0% 41.1% 29.1% Shippers/ Packers 49.2% 60.0% 51.9% The most sensitive sector of the support industry - agriculture sales and services more closely parallels the results of the 1977 study. That sector estimates an ability to withstand only slightly more total crop or tree crop losses and considerably less reduction in vegetable crops than the overall industry indicated 17 years earlier. 114 Comparison of 1977 Study to 1995 Study Capacity of Loss in Production that Ventura County Agriculture Can Withstand Percentage Loss Capacity 60% 50% 40% 30% 20% 10% 0% 1977 Study All Support Businesses 1995 Study Trees Sales/Serv 1995 Study Vegetables Shippers/Packers 1995 Study Total Surprisingly, in the 1977 study, it was the packing/shipping sector that was most sensitive to crop losses, estimating a capacity to withstand a 32% reduction in lemon tree crops, and only a 22% decline in vegetable crops. In the current study, this sector estimates much higher tolerance for reductions, at 49.2% for fruit crops and 60% for vegetables. Some of the reasons for this shift were discussed above (explaining the findings of Table 2C-2), primarily the change to more vertical integration of the packing/shipping industry with both growers and buyers and an ability to adjust the packing capacity to meet the productivity rather than packers competing to meet their capacity (and more likely to go out of business if total productivity dropped). In addition, subjective perceptions may account for some of the differences in the 1977 and current results. Businesses that have survived over the past two decades may have a sense of confidence in their ability to adjust to large shifts and cycles in agricultural production. One crop has replaced another; floods and frosts have meant temporary losses; and the economy has been up and down. Some acres lost to urbanization have been replaced, with agricultural land shifting from prime flatland farms to hillsides. This chapter has focused on today’s most important crops, in which there has been a net increase in harvested acres. But during 17 year period between these two studies, there has been a 19,000 acre loss of field crops such as sugar beets as growers shift to higher value crops. Many of the businesses associated with field crops have disappeared. 115 This confidence of the agriculture support industry in their ability to survive despite large fluctuations in agriculture production over the past two decades may lead to an over-estimate of their capacity to withstand permanent losses in the future, where no replacement acreage or increase in productivity would soften the impact. This, however, would be the effect of most reductions in crop acreage in the 1990’s. 116 The Costs Of Farming Near Cities Michal Moore Resource Economist Table of Contents Introduction 118 Previous Work 119 Cost Impacts on Agriculture 120 Increased Costs of Operation Due to Location 120 • • • • • • • • • Theft of Product Vandalism Soil Compaction and Spread of Crop Disease Regulations Increased Liability Insurance Air Pollution Road Congestion Buffer Zones Timing of Operations • Noise Land Prices Conclusions 124 126 117 Introduction This chapter explores the costs of farming in the proximity to urban areas. We focus on costs which show a direct relationship to the proximity of the urban interface. Urban influences can be blatant or subtle depending on the community and the distance from the urban boundary. They range from long-term and sometimes barely visible effects of air pollution, to direct urban impacts such as vandalism or traffic interference with crop transport or farm machinery. The effect and the conflict have not been lost on public agencies. Planning policies, such as greenbelt and buffer zone designations, and regulations, such as right-to-farm ordinances, have been employed to mitigate or diminish the impacts; each has been successful in limited degree. In each case, the effectiveness may be short lived, as regulations or rule-making bodies change over time. To put this in context, we evaluate the costs of agricultural activities in the proximity of urban areas by classifying the nature of costs as either direct or indirect. Direct costs are those borne by agricultural producers, either landowners or renters, in the process of developing, harvesting and transporting crops to market. A general list of these includes: • Land acquisition cost (or lease) This can be in the form of a mortgage from conventional or farm based lenders. The category includes tenant or leasehold farming where an annual or crop cycle payment is made to the landowner. • Land Taxes (secured and unsecured property) Based on property value at the time of property sale. This can vary significantly for properties purchased pre-1977 (pre Proposition 13) and those purchased since, where value is based on 1% of current purchase price and escalates at 2% annually. • Production costs Labor - The labor category includes management, field harvest and preparation, transfer and shipment and packing services. Management is further divided into direct crop or harvest management and the more esoteric subcategory of regulation, a field that includes tax, pesticide and chemical regulation compliance. 118 Factor inputs - This category is the most obvious cost area for farmers. It includes water costs, which can vary significantly within the region, and inputs such as chemicals or fertilizers. Indirect costs are those which follow from actions not controlled by the landowner. These can be either regional (affecting all owners more or less equally) or local or property specific in nature. Each represents a cost that must be internalized within the price of final products. Indirect regional impacts include: • Broad based air pollution impacts • Road congestion and access interference • Land price effects promulgated by agricultural land sales either for intraagricultural or direct conversion to higher intensity land use On a local scale, indirect impacts include: • Vandalism or trespass • Theft of products or machinery • Complexity and compliance responsibilities to government agencies These are examined below in the context of the proximity of urban boundaries. Previous Work This chapter builds on work done in two previous documents as well as periodic updates on production costs prepared by field advisors to the Cooperative Extension. They are: • Analysis of Agriculture on the Oxnard Plain and the Urban/Rural Interface The California Coastal Commission, 1977 and • The Impacts of Farmland Conversion in California, Department of Conservation, 1991 119 Field work for this task was accomplished through a series of interviews with a selected sample of agricultural managers and staff of the Agricultural Commissioner and the University of California Cooperative Extension and a review of published literature on actual and expected current and historical production costs. In general, production cost records were not provided except for a limited number of isolated, specific costs. In the area of actual increased costs experienced by operators in the vicinity of urban areas, we have been forced to rely on inferential and anecdotal data, although in fairness to all who were interviewed, the opinions and inferences were remarkably similar. Cost Impacts on Agriculture Farming in the proximity of urban areas is a study in choices and contrasts, with resultant pluses and minuses for the owner. For instance, the proximity of large, densely populated urban areas generally implies greater access to and higher quality of transportation facilities. This in turn can mean lower market transport costs. The greater competition for surface roads, however, can produce conflicts with urban dwellers who encounter slower moving farm vehicles or processing devices. Similarly, the presence of urban development means a dense potential consumer base. However, in one of the perverse twists of modern marketing, it is often cheaper to process and ship products out of the area rather than sell them locally. Thus, often the only producers to profit from the local population base may be those smaller farmers who engage in direct marketing through such devices as local farmers markets. Increased Costs of Operation Due to Location As stated in the Coastal Commission's 1977 report, "Given present economic conditions, farmers are generally employing least-cost methods of production in growing the crops for which the plain has the greatest comparative advantage. . . . . . Apparently the crop selection on the Oxnard Plain is as compatible with urbanization as possible. What is actually needed to minimize conflict is the development of appropriate buffer zones." Our research indicates nothing has changed in outlook since this was written. Agriculture continues to adjust its practices to the presence of the urban community. In the list that follows, we should note that impacts are bi-directional, that urban dwellers, once they are established, are impacted by, and tend to complain about, some agricultural practices as well. 120 Interviews revealed topical rather than specific complaints on the part of farmers regarding the influence of urban activities. In the most obvious examples, where a residential subdivision coexisted next to an active farm area, costs that could be quantified were inconsistent but involved a range of costs from changes in farming techniques such as timing, nature and duration of chemical sprays to a need to create fenced barriers to entry. The interviews revealed costs were involved in the following areas: THEFT OF PRODUCT Theft of the product grown on the property is cited most often in proximity to the urban area. When in direct proximity to a neighborhood subdivision, those rows of crops closest to the subdivision tend to be most affected by small scale theft. Where this is a problem, crop production in the first two rows appear to generate up to 20% lower production than rows beyond. Many respondents indicated that a common resolution to the problem involved visits or personal contacts with the subdivision residents, who often viewed the presence of the crops as a free amenity available to them. Where the problem cannot be solved by meetings with neighbors, fences are an option. The lowest level of barrier, largely symbolic, is the barbed wire fence (estimated cost $2-3 per running foot); chain link fences (estimated cost $5/foot) seem to significantly curb casual access. At distances from urban areas which make casual access unlikely, the theft risk is changed considerably. Here in the more remote areas, high value crops such as avocados are subject to large scale theft from organized thieves who can steal a significant portion of a yield and make use of public roadways to elude capture. Cost from this level of theft, while inconsistent, can be very significant in terms of total harvest for an individual owner. VANDALISM A problem cited at a rate similar to theft is the occurrence of vandalism. Most owners implied that the greatest damage from vandalism came inadvertently, for instance when horse riders trampled or damaged irrigation risers or pipes, or walkers or joggers broke branches or compacted tilled, seeded soil in cultivated fields. These effects are exacerbated by instances of deliberate vandalism to vehicles or farm machines stored in the fields or to wind machines and smudge pots. Damage done here tends to magnify its initial impact. For instance, any vehicle vandalized to a degree that it must be repaired represents lost productivity or access to crops until it is brought back into use. As a consequence, elaborate means must be taken 121 to move these to more secure areas. The result, although difficult to measure directly, is higher labor costs and lower productivity in lands so affected. Damage to trees and crops tends to diminish with rows further than the 2nd or 3rd row closest to the urban interface. A non-threatening but increasing complaint suggests that there is an increase in graffiti on farm support buildings and equipment, resulting in extra labor costs for removal. SOIL COMPACTION AND SPREAD OF CROP DISEASE Crops such as avocados can be subject to root diseases transferred from other infested areas. The use of non-designated trails by horse riders is cited as a complaint for many of the growers. Soil compaction can influence water retention and percolation rates and results in an increased need for tilling. These were not cited as serious recurring problems by those interviewed, however. REGULATIONS Virtually every owner or manager interviewed cited the increased responsibility of complying with government regulations, ranging from farm and crop reports to compliance with pesticide regulations and applications, as a significant extra cost area. This was not quantified but is called out as an increased cost of management, typically borne by the operators themselves. The cost is time, to retrain and remain current in the regulations, significant in the case of new pesticides, and to generate, submit and certify required forms. Many managers were devoting up to one man day per week in increased reporting requirements. Most of these management costs, however, are the same for all farmers, whether they are in proximity to urban boundaries or not. INCREASED LIABILITY INSURANCE Agricultural operators are sensitive to the problems that can be caused by persons injuring themselves, even as a result of unauthorized access to their property. While this was not quantified by any of the respondents, it was generally conceded that insurance rates had increased to account for potential losses due to accidents or damage to persons not directly involved in farm operations. Those interviewed indicated that overall liability insurance could be 10% higher where farms were adjacent to urban uses. AIR POLLUTION This factor is often cited in literature reviews on farming costs, but was mentioned very little in the interviews. We believe the long term effects have been internalized industry-wide for farms on the Oxnard Plain not only in terms of price reductions but in general expected yields. Those interviewed indicated that crops in direct proximity to a busy thoroughfare exhibit lower yields and smaller products 122 on average. In most cases the effects, which appear to be the result of a more generalized problem originating in and exported from the Los Angeles basin, affect crop yields throughout the area. Overall crop yields, in gross weight as well as average yield per plant for harvested products, have been estimated to be diminished by up to 10% from air pollution. ROAD CONGESTION Roads within agricultural areas are typically without curbs and present a narrow cross section for vehicles to utilize. Competition on roads with urban dwellers seeking access/egress to subdivisions has caused some increase in accident frequency, although not significant statistically for the area as a whole. The greatest problem seems to be one of interference and inconvenience. This condition is made worse when farm vehicles, such as tractors, must make use of the public highways and can be the source of minor traffic jams. The largest number of complaints in this category, however, came from operators who confront urban dwellers using the agricultural access roads to travel back and forth to their homes. Higher costs have resulted from efforts by agricultural managers to time movements of harvest or operational vehicles at night or in early morning so as to minimize conflicts with suburban traffic. BUFFER ZONES Agricultural operators in proximity to urban structures often take defensive action such as creating lower intensity use areas on the boundary of their property, in effect designating a buffer zone. This results in higher labor costs of operation (both in management and cultural costs) and typically in lower net yields as well. The most obvious example of changes in practice within these areas is shifts to crops which minimize sprays or chemical applications and minimize the generation of dust from agricultural operations. TIMING OF OPERATIONS Most operators interviewed indicated that they were sensitive to the presence of the urban dwellers and took them into account when making operational decisions. While this is not directly quantifiable, it does reflect additional management time needed to account for prevailing winds (in terms of dust generated as well as pesticide or herbicide applications) and noise (for instance night operations are severely limited in the immediate proximity of urban dwellers). Most operators took on this task themselves as well as acting as the direct mediator to the neighborhood when problems did occur. NOISE Noise is a concern for agricultural owners in the proximity of urban development. Normal operations can be cited as a nuisance by those living in subdivisions and subsequent actions by local government, such as the nighttime prohibition against 123 the use of wind machines, can impact growers directly. In this example, the frosts which create the need for the wind machines typically occur at night. Alternatives, such as orchard heaters, have air pollution implications and may result in lower levels of protection and generate additional costs. In general, the result of our field work suggests that, other than those costs borne through increased property values (discussed below), the costs of operations near or adjacent to urban areas are largely internalized by landowners. Beyond isolated incidents involving significant operational costs such as fence construction or major theft, increases appear to be about 5% of total variable costs (about half the rate of increase we expected anecdotally). This can be attributed largely to the agricultural operators handling most of the increased management effort themselves and their tendency to discount the value of their own labor (essentially to zero). Land Prices The impact of land price changes and subsequent shifts in land use can be significant, especially when viewed in the context of entry to the market. This has been reviewed in the chapter on urban land conversion, but it should be emphasized that the net return from single harvest or lower value crops can be diminished significantly when higher land payments are required following resale or refinance of individual properties. In order to visualize the influence of land sale value or rent, we can construct a simple formula reflecting the land manager's view of gross receipts and factor costs compared to mortgage or rent payments. In this formula we assume: Gr - (Pc + Pr + C) = Lc Gr =Gross receipts Pc =Productions costs, including labor and factor inputs Pr =Profit C =Contingency, and Lc =Balance available for rent or amortized land mortgage payments 124 For example we use the hypothetical case of citrus with the following assumptions: Gross return = 800 boxes/acre @ $4.50/box = $3,600 gross/acre Input or production costs = $2,000/acre (labor, sprays, fertilizers and variables incl. insurance ) Desired profit at 13% of net return = $200 With no allowance for contingencies, that would leave $1,400/acre net available return for rent or land mortgage payments. Using an interest rate of 8%, this loan repayment potential ($1,400/acre annually) could support a land mortgage of: $15,000/acre at 25 year loan period $15,700/acre at 30 year loan period If we add a margin of $200/acre for contingencies, the supportable mortgage base falls to $12,800 for a 25 year loan and $13,500 for a 30 year loan. Field evidence indicates that actual land acquisition prices are in the range of $25,000 to $35,000/acre, especially in the proximity of urban expansion areas (see Conversion of Agricultural Land chapter). Using the citrus example cited above, land sales at $25,000 - $35,000/gross acre would almost necessitate conversion, either to a much higher value crop or ultimately to urban land use. Land bids at urban land use values drive land costs up, beginning this sequence. Further, this occurs with higher frequency in the immediate proximity of urban spheres of influence. The retention of much of Ventura County’s current agricultural operations relies either on owner operators who bought land at much lower prices or owners who lease their land out for farming as a holding action, giving them some immediate returns, but with the intention of eventual development or resale to recoup their investment. 125 Conclusions • Quantifiable costs increase at the urban fringe, with estimates as high as 5 - 6% of total operations cost per acre • The highest increased cost of operations at the urban fringe is the entry price for land purchase or rental. • Intangible costs such as the effects of air pollution on the size and weight of crop yields have generally been internalized into the overall costs of operation on the Plain, not disproportionately distributed to urban proximity properties. • One of the most insidious and pervasive costs experienced by growers is the most difficult to quantify. That cost is the value of the grower's time, whether spent in compliance with new regulations or in the acts of changing agricultural practices which are deemed necessary to forestall complaints by urban residents, even when perfectly legal (this may be most visible in the area of pesticides and their application). The following scenarios can occur on remaining farmland as more farmland converts to urban use near the urban fringe: • Smaller agricultural units and more specialized operations, including changes to higher value and more specialty crops. • Higher reliance on technology to maximize returns, minimize water use and take advantage of more efficient pesticide application. The need for capital intensive improvements, however, may conflict with the trend above, favoring consolidation of agricultural acreage in fewer holdings. • Higher acreage aggregation of agricultural units by corporate owners and the disaggregation and higher diversity for smaller individual land owners1 . This may include increased development of so-called hobby farms which meet the minimum acreage requirements for agriculture but emphasize residential rather than agriculture as the primary use. • Continued escalation of agricultural land entry prices with corresponding shifts in crop diversity and location. 1 This conclusion is supported by trends illustrated in the Geographic Information System data mapping tool associated with this study. 126 Economic Analysis Of Status Quo Vs. Compact Urban Development David Strong Strong Associates 240 41st Street Oakland 94611, 510-428-2904 Table of Contents Introduction & Summary Demographics 128 133 134 136 139 Existing Conditions Projections to Year 2010: Status Quo vs. Compact Private Sector Impacts Status Quo vs. Compact 139 140 Cities’ Costs & Revenues Average Revenues and Costs Ongoing Revenues and Costs Status Quo vs. Compact Property Tax Case Study Capital Cost Case Study Projections to Year 2010 Status Quo vs. Compact 143 143 144 145 145 147 149 149 County’s Costs & Revenues Average Revenues and Costs Property Tax Case Study Loss of Agriculture Revenues/Costs Projections to Year 2010 Status Quo vs. Compact Appendix: Cities’ Revenues/Costs Detail 157 158 160 160 163 163 164 127 Introduction & Summary Introduction This chapter, the fiscal impact portion of The Value of Agriculture to Ventura County, develops an economic model to evaluate the private and public sector impacts of urbanization of agricultural lands. The fiscal impact assessment compares the effect of potential new development to the year 2010 under a status quo development pattern (i.e. at current average densities) vs. an agricultural preservation, compact development approach. The agriculture preservation scenario uses simplified overall density increases and infill to illustrate the potential benefits; more individualized alternatives are possible. This chapter focuses on the six cities in Ventura County most affected by and surrounded by agricultural uses - Camarillo, Fillmore, Moorpark, Oxnard, Santa Paula, and Ventura - as well as the impact of those cities’ growth on the County of Ventura. The analysis uses each city’s projections of population and job growth, with all the new development expected to occur in existing or newly annexed city areas. It does not assess growth in the rest of the cities or unincorporated areas of the County. The economic model establishes estimates of per capita, per job and per acre fiscal impacts (revenues and costs) under either density scenario for each city studied and for the County. These multipliers, based on average and case study (CS, see appendix) revenues and costs for each jurisdiction, are then used to assess the effect of projected development between 1994 and 2010 and compare the two growth scenarios. This chapter includes five sections: • Introduction and Summary • Demographics, describing existing conditions and comparing projections to the year 2010 under both status quo and compact development scenarios. • Private sector impacts of the status quo vs. compact scenarios, using information from the first chapter of this study, “The Value of Agriculture to Ventura County: An Economic Analysis” • Cities’ revenues and costs under the two scenarios, and County’s revenues and costs under the two scenarios. 128 Summary As the six focus cities grow, additional land will be converted from agriculture to housing and commercial development. The amount of land converted - and the fiscal impact of that urbanization - are dramatically affected by the pattern and density of the new development. The status quo pattern accommodates growth by urbanizing and annexing lands at the current average density for each city, while the compact scenario assumes that 20% of growth will be accommodated by infilling within existing city boundaries and the balance will be on new urban land but at 50% higher densities. Briefly, as shown in the Summary Table on page 133, this chapter finds that the compact scenario would: • Retain about 4,300 more acres of land in agricultural use; • Retain about 1,500 more agriculture-related jobs; • Retain about $80 million more in total agricultural sales annually; • Result in a positive annual cashflow of $4.9 million for the six agriculturedependent cities, compared to a negative over $5.2 million deficit from the status quo pattern, a difference of $10.1 million; and • Yield a slightly higher net surplus of $2.7 million annually for Ventura County government, compared to $2.5 million for the status quo pattern. Cities’ Fiscal Impact For each of the cities, the net revenue/cost balance is consistently more favorable under the compact scenario, but there is a wide range in impact depending on each city’s conditions. As shown in the Summary Table, adopting the compact approach would have these beneficial impacts: • Camarillo would go from a net loss of $896,000 to a surplus of $300,000 • Fillmore would go from a $677,000 loss to a $96,000 surplus • Moorpark would go from a $1,946,000 loss to a much smaller $387,000 loss 129 • Oxnard would go from a $1,656,000 loss to a $1,673,000 surplus • Santa Paula would go from a $997,000 loss to a smaller $425,000 loss • Ventura would go from a $951,000 surplus (the only city with a surplus under the status quo pattern) to a much larger $3,648,000 surplus. The Summary Table also shows the per resident and per job revenues and costs associated with the two alternative scenarios. As shown, for the six cities combined, on average: • Each resident generates about $460 revenue under either scenario; • Each resident costs $576 to serve under the status quo pattern compared to $495 under the compact approach; • Thus residents create a net loss under both scenarios, but the loss is $114 under the status quo compared to $34 under the compact approach. • Each job generates about the same revenue, at $375; • The cost per job is $312 for the status quo pattern compared to $267 for the compact scenario; • Thus jobs create a net surplus under both scenarios, but less for the status quo, at $63, than for the compact approach, at $108 surplus per job. Ventura County Fiscal Impact Since the entire population growth is assumed to take place within existing or newly annexed city areas, the fiscal impact of accommodating the new development is relatively small on the County. The revenues and costs are increased from the addition of the new County residents, jobs, and property values in the six study cities, but they are also decreased by the loss of agricultural land. 130 As evaluated in Tables 7-10 of this chapter: • The County’s average per resident and per job revenues and costs are the same to serve the new development whether it occurs in the status quo or compact pattern. • The revenues from the new property values are slightly higher for the compact scenario, because the portion of new development in existing city boundaries has on average a higher share of property tax revenue. • Finally, the County will lose the net revenue surplus it enjoys from agricultural acreage, with less loss from the compact pattern since it uses fewer agricultural acres. The overall effect on Ventura County is a follows: • The status quo pattern would produce County revenues of $53.2 million, less costs of $50.7 million, for an estimated net annual surplus of $2.5 million. • The compact scenario would produce revenues of $53.6 million, less costs of $50.9 million, for a net annual surplus of $2.7 million. • The net difference between the two is a $200,000 advantage for the compact development scenario. This nearly equal surplus in the County fiscal impact for either scenario is far outweighed by the major adverse impact - an estimated $10.1 million disadvantage - the status quo pattern has on the cities. 131 Per Dollar Comparison The implications of these differences in the impact on cities and County from the alternative scenarios can be illustrated by this simplified example: For each dollar of revenue generated per resident or job, how much does it cost to provide city services? For the six cities combined: Six Cities Revenue/Cost Ratios Resident Revenues Costs Net Cost Job Revenues Costs Net Revenue Status Quo Compact $1.00 $1.25 ($0.25) $1.00 $1.07 ($0.07) $1.00 $0.83 $0.17 $1.00 $0.71 $0.29 Thus, the cities “lose” 25 cents on each dollar for each new resident under the status quo, compared to only 7 cents lost under the compact model. For each new job, the cities “gain” 17 cents (more revenue than costs) under the status quo, compared to a 29 cents per job gain under the compact alternative. Using the same simplified comparison, how much does the County benefit from each dollar of revenue from agricultural acreage? County Revenue/Cost Ratios Status Quo Agriculture Per Ag Land Revenues Per Ag Land Costs With a Net Revenue per Job $1.00 $0.65 $0.35 Compact $1.00 $0.65 $0.35 In other words, for each dollar generated from agricultural land, only 65 cents of costs are required, generating a net 35 cent surplus. Although the numbers are overwhelmed by the large revenues and costs generated by new development (under either scenario), each acre going out of agricultural production slightly reduces the County’s net surplus. 132 Summary Table Status Quo DEMOGRAPHIC (Tables 1 and 2) New Population New City Jobs Lost Ag Jobs Net Jobs Gained New Urban Acres PRIVATE SECTOR (Table 2) Loss of Ag Sales ($,000) Loss of Farm Income ($,000) 75,967 54,509 3,554 10,765 10,162 75,967 54,509 2,072 12,247 5,904 $192,550 $121,319 $112,310 $70,759 CITIES REVENUES/COSTS (Table 6 C) 6 Cities Combined Totals Revenue Costs Net Revenue/Costs $55,527,847 $60,748,458 ($5,220,611) Each City's Net Revenue/(Cost) Camarillo Fillmore Moorpark Oxnard Santa Paula Ventura Total Total ($896,004) ($676,819) ($1,945,672) ($1,656,332) ($996,699) $950,915 ($5,220,611) Cities Combined Revenues/Costs - Per Resident and Per Job Per Resident Status Quo Revenue $461 Cost $576 Net Revenue (Cost) ($114) Per Job Revenue $376 Cost $312 Net Revenue (Cost) $63 COUNTY REVENUES/COSTS (Table 10) Revenue Cost Net Revenue (Cost) Compact $53,236,807 $50,710,537 $2,526,270 $55,443,304 $50,538,292 $4,905,013 $299,660 $95,930 ($386,691) $1,672,963 ($424,516) $3,647,666 $4,905,013 Compact $460 $495 ($34) Difference 0 0 1,482 (1,482) 4,258 $80,240 $50,560 ($84,543) ($10,210,167) $10,125,624 $1,195,664 $772,749 $1,558,981 $3,329,295 $572,183 $2,696,751 $10,125,624 Difference ($1) ($81) $80 $375 $267 $108 $0 ($45) $45 $53,554,016 $50,871,142 $2,682,874 $317,209 $160,605 $156,604 133 Demographics Existing Conditions Table 1A shows the population, employment, and housing statistics for Ventura County and its cities as of 1990 and 1994. The year 1990 is presented because complete comparable statistics are available from U.S. census data. The updated 1994 estimates, however, are used as the benchmark from which the impact of future development can be measured. Table 1 A Demographics - Existing Conditions Existing Conditions: 1990 Camarillo Fillmore Moorpark Description (1990 Census) Population 52,303 12,001 25,494 Number of Households (HH) 18,109 3,404 7,621 Population per /HH 2.89 3.53 3.35 Number of Jobs Ag direct workforce Ag:direct +indirect workforce % Direct Ag jobs % Direct+Ind Ag jobs (1) Existing Conditions: 1994 Population (State est.) Number of Households Number of Jobs Acre Information Pop per resid & infrastructure ac. Residential & infrastructure ac. Comm. & indust. ac. (30 Jobs/acre) Total city acres (FMMP) Oxnard Ventura 142,192 39,343 3.61 Santa Paula 25,062 7,664 3.27 92,575 35,408 2.61 Six City Total 349,627 111,549 3.13 County Total 669,016 217,298 3.08 24,967 799 1,851 3.2% 7.4% 5,232 701 1,483 13.4% 28.4% 13,423 447 1,038 3.3% 7.7% 66,922 8,166 17,012 12.2% 25.4% 11,184 1,727 3,465 15.4% 31.0% 47,791 1,001 2,355 2.1% 4.9% 169,519 12,841 27,205 7.6% 16.0% 336,772 17,892 35,886 5.3% 10.7% 56,500 19,562 26,970 12,900 3,659 5,624 27,150 8,116 14,295 151,900 42,029 71,491 26,850 8,211 11,982 97,000 37,100 50,075 372,300 118,678 180,438 708,200 230,025 356,497 6.1 9,320 899 10,219 15.1 854 187 1,041 8.6 3,170 476 3,646 11.3 13,485 2,383 15,868 12.9 2,077 399 2,476 9.2 10,505 1,669 12,174 9.4 39,409 6,015 45,424 na na na na (1) U.S. Census employment data and California Employment Development Dept. data used in Chapter 1 differ. For 1994, the latest population estimates from the State Dept. of Finance are used, with the ratio of dwellings and jobs to population the same as in 1990. Thus, in 1994, the entire County is estimated to have a population of over 708,000, with 230,000 occupied dwellings (3.08 people per household), and a workforce of 356,500. The six agriculture-dependent cities being studied range from most to least populous as follows: Oxnard, 151,900; Ventura, 97,000; Camarillo, 56,500; Moorpark, 27,150; Santa Paula, 26,850; and Fillmore, 12,900, using 1994 estimates. (In the table they are listed in alphabetical order.) 134 Table 1A and Figure 1 also indicates the relative degree of agricultural dependence of these cities and the county, based on census employment statistics. Using a multiplier of direct and indirect jobs related to agriculture the County as a whole has 10.7% of its jobs related to agriculture. In the six cities studied, three have very high rates of agriculture-related employment - Santa Paula at 31%, Fillmore, at 28.4%, and Oxnard, 25.4% - while three are below the County average - Moorpark at 7.7%, Camarillo at 7.4%, and Ventura at 4.9%. All, however, are above the average of the other cities in the County (at 3.3%). Figure 1 Percent Agricultural Employment Of Cities’ Total Employment 35 Percent of Total Employment 30 25 20 15 10 5 0 Camar illo Fillmore Moorpark Santa Paula Oxnard Ventur a Source: Cities’ General Plans 135 The existing developed acreage within city limit boundaries is shown at the bottom of Table 1A, coming to a total of 45,400 acres1 for the six cities combined. These acreages are based on the state Farmland mapping and Monitoring Program data. For each city, the portion of this acreage devoted to commercial/industrial is estimated at 30 jobs per acre. The remaining developed acreage is divided by population to calculate the density of residents per acre. As shown, this residential density varies from a low of 8.6 people per acre in Moorpark to a high of 15.1 people per acre in Fillmore, with the six-city average at 9.4. These 1994 estimates of population, jobs, and acreage are used in the economic model, in conjunction with the 1994 budgets of each city, to calculate the per capita, per job, and per acre average revenues and costs. Projections To Year 2010 Table 1B shows the expected growth in population, housing and jobs for the six cities based on each city’s General Plan projections for the period from 1994 to 2010. Table 1B Projections To Year 2010 Camarillo Fillmore Moorpark Added Between 1994 and 2010 Population 12,240 4,332 18,600 Dwellings 5,496 1,489 6,282 Jobs 4,154 6,878 5,555 Percent Increase Between 1994 and 2010 Pop % increase from 1994 21.7% 33.6% 68.5% Dwelling % increase from 1994 28.1% 40.7% 77.4% Job % increase from 1994 15.4% 122.3% 38.9% Added Acres with Status Quo Residential 2,019 287 2,171 Commercial (@ 30 jobs/ac) 138 229 185 Total of new acres 2,157 516 2,357 Added Acres with Compact Growth 20 % Residential and job is assumed to be infill with -0- new acres 80 % Resid (@1.5 Status Quo) 1,077 153 1,158 80 % Com (@1.5 Status Quo) 111 183 148 Total of new acres 1,188 336 1,306 Oxnard Santa Paula 7,226 2,745 1,921 Ventura 11.0% 16.9% 30.3% 26.9% 33.4% 16.0% 17.4% 16.8% 28.6% 1,485 723 2,208 559 64 623 1,824 477 2,301 8,345 1,817 10,162 792 578 1,370 298 51 349 973 382 1,355 4,451 1,454 5,904 16,730 7,115 21,682 16,840 6,234 14,319 Six City Total 75,967 29,361 54,509 20.4% 24.7% 30.2% Source: Cities’ and County General Plans As shown above and in Figure 2, the rate of population growth ranges from 11% in Oxnard to 68.5% in Moorpark, with an average of 20.4% for the six cities combined. 1 FMMP land indicates developed land within city boundaries, and is thus less than the city boundary acreage. Remaining acreage after commercial and industrial (job acreage) is thus either residential or infrastructure (schools, parks, streets, drainage ponds, water ways etc.). Openspace or undeveloped acreage is not included. 136 In total numbers, the population of the six cities combined is expected to rise from 372,300 in 1994 to nearly 448,300 in 2010, a gain of 76,000 new residents. For the purpose of this chapter, it is assumed that all the new population will be housed within either existing city or newly annexed city areas. Figure 2 Projected Population and Job Increase 80 Percent Increase 70 60 50 40 30 20 10 0 Camar illo Fillmore Moorpark Population Incre ase Oxnard Santa Paula Ventur a Job Increase Source: Cities’ General Plans The projected growth in housing is generally parallel to population growth, at an average of 24.7% increase. Cities anticipating a higher rate of housing growth are expecting new dwellings to have fewer people per household. The cities’ projections of job growth vary the most widely, with the average at 30.2%. Three of the cities - Camarillo, Moorpark, and Santa Paula - expect jobs to grow at a significantly lower rate than population, while the others - Fillmore, Oxnard, and Ventura - have projected higher rates of job growth (Fillmore most markedly). Disparities in the ratio of job growth to housing and population growth could have significant impacts within a city or its neighbors. Such analysis, however, is beyond the scope of this chapter; we have relied on the County’s report of each city’s General Plan projections. Adjustments in the relative growth rates would affect the magnitude but not the overall direction of the impacts found in this chapter. Finally - and most importantly for purposes of this analysis - Table 1B and Figure 3 compare the amount of land required to accommodate the projected population 137 based on a status quo vs. compact development pattern. The status quo pattern assumes no infill and the same average number of residents per developed acre as is estimated for each city in 1994 (see Table 1A), while commercial acreage is estimated at 30 jobs per commercial acre. At these “status quo” densities, a total of 10,162 acres of land would be required to house the new growth within the six cities. Figure 3 New Acres Needed to Accommodate Development Under Two Scenarios 2,500 New Acres Developed 2,000 1,500 1,000 500 0 Camarillo Fillmore Moorpark Oxnard Santa Paula New Acres Needed Under Status Quo Development New Acres Needed Under Compact Development Source: Cities’ General Plans 138 Ventura The compact development scenario assumes that 20% of the new population and jobs would be accommodated by infilling within existing city boundaries, and the remaining 80% would be on new land at 50% higher than existing densities. The infilling is a logical extension of a policy of increasing densities in annexation areas, since the value of existing city land and its potential economic return will be enhanced by more closely matching the pattern of newly developing areas. As shown, this compact development pattern would require only 5,904 acres to accommodate the same population growth, retaining 4,258 more acres in predominantly agricultural use. It should be noted that these are generalized, illustrative assumptions regarding density. Actual land use designations would require individualized approaches based on site and cityby-city case study. The results of these alternative scenarios for accommodating new growth can be briefly compared for the six cities combined as follows: New Population to 2010 New Jobs to 2010 New Acres to 2010: Residential & Infrastructure ac. Conmmercial & Industrial ac. Total Acres Status Quo 75,967 54,509 8,345 1,817 10,162 Compact 75,967 54,509 4,451 1,454 5,904 Difference 0 0 3,894 363 4,258 139 Private Sector Impacts Table 2 shows the impact of lost agricultural uses on sales, income and jobs under the alternative land use scenarios. The determination of direct and indirect sales, income and jobs per agricultural acre uses a weighted composite number based on the types of crops affected and the calculations of indirect and induced economic activity from these crop types derived from the IMPLAN input/output study in the first chapter of this study (page 51). For example, the communities with predominantly vegetable crops in their anticipated urban expansion area - Camarillo and Oxnard - are estimated to lose $22,708 per acre in total (direct and indirect) sales activity, while those with predominantly tree crops - Fillmore and Santa Paula - will lose $16,070 in agricultural sales for each acre converted to urban uses. Moorpark is estimated to have 50% trees, 20% vegetables, and 30% non-agricultural open space, with an average $12,482 direct and indirect sales per affected acre; and Ventura has 50% trees, 50% vegetables, averaging $19,863 total sales per affected acre. It should be noted that these estimated impacts from city to city are still generalized and illustrative. Determining more precise acreage affected, crop values and economic impacts would require detailed case studies. 140 Table 2 Private Sector Impact of Agricultural Acreage Lost: Status Quo vs. Compact Camarillo AG USE DATA Ag Affected, By Percent Trees Vegetables Open Space Fillmore Moorpark Oxnard Santa Paula Ventura Six Cities Total 20.0% 80.0% 0.0% 90.0% 10.0% 0.0% 50.0% 20.0% 30.0% 20.0% 80.0% 0.0% 90.0% 10.0% 0.0% 50.0% 50.0% 0.0% Direct Sales per Acre (1) Direct & Indirect per Acre (2) Sales Income Jobs $8,916 $6,273 $4,882 $8,916 $6,273 $7,783 $22,708 $14,141 .386 $16,070 $10,432 .357 $12,482 $7,991 .255 $22,708 $14,141 .386 $16,070 $10,432 .357 $19,863 $12,551 .374 STATUS QUO PATTERN Acres Lost Ag Sales ($,000) Ag Income ($,000) Ag Jobs 2,157 $48,992 $30,508 833 516 $8,290 $5,381 184 2,357 $29,414 $18,831 602 2,208 $50,138 $31,221 853 623 $10,009 $6,497 222 2,301 $45,706 $28,880 860 10,162 $192,550 $121,319 3,554 COMPACT PATTERN Acres Lost Ag Sales ($,000) Ag Income ($,000) Ag Jobs 1,188 $26,968 $16,793 459 336 $5,404 $3,508 120 1,306 $16,304 $10,438 334 1,370 $31,117 $19,377 529 349 $5,613 $3,643 125 1,355 $26,905 $17,000 506 5,904 $112,310 $70,759 2,072 (1) Weighted average based on the following values from the Ag Commissioner, 1994: Trees Harvested Acres Crop Value ($,000) Value/Acre Lemons 24,239 $216,129 $8,917 Avocados 16,199 $49,906 $3,081 Valencia Oranges 12,325 $45,034 $3,654 Total Above Tree Crops 52,763 $311,069 $5,896 Vegetables Celery 9,878 $113,823 $11,523 Strawberries 4,795 $110,447 $23,034 Lettuce 6,824 $28,704 $4,206 Broccoli 4,635 $12,060 $2,602 Cabbage 2,202 $8,975 $4,076 Total Above Vegetables 28,334 $274,009 $9,671 (2) Based on the following multipliers developed by Goldman's Input/Output Model, Chpt. 1: Sales Income Jobs/acre Multipliers for trees 2.565 1.680 .353 Multipliers for vegetables 1.544 1.572 .395 141 Based on these per acre figures, the private sector agricultural economic impact of the status quo pattern of growth can be briefly compared with the compact approach as follows: Urban acres required Annual Loss of Total Sales($000) Annual Loss in Farm Income ($000) Loss in Agriculture-Related Jobs Status Quo 10,162 $192,550 $121,319 3,554 Compact 5,904 $112,309 $70,758 2,072 Difference 4,258 $80,240 $50,560 1,482 % Change 41.9% 41.7% 41.7% Figure 4 Comparing Urban Acres Required Under Two Scenarios And Agricultural Jobs Lost Due To Loss of Agricultural Land 10,000 Acres or Jobs 8,000 6,000 4,000 2,000 0 Status Quo Urban acres required 142 Compact Difference Loss in Agr ic ulture-Related Jobs Cities Revenues & Costs In order to estimate future revenues and costs to the cities from new growth, the economic model estimates current average per resident, per job, and per acre revenues and costs as well as analyzing case study items. The case study items use specific estimates rather than average per person or per acre figures. Property taxes are a case study on the revenue side, and one-time capital costs are a case study on the cost side in this analysis. Average Revenues & Costs As noted above, the economic model uses the 1994 cities’ budgets to determine average per resident, per job and per acre revenues and costs as one basis for projecting the fiscal impact of future growth. Appendix Table A summarizes the total budgets of the six affected cities within Ventura County. Each line item is allocated as a revenue or cost attributable to residents, to jobs, to both residents and jobs, or to acreage. For example, business license taxes are classified as a per employee revenue, since they are generated only by businesses. Parks and recreation are allocated per resident, since they are used and paid for principally by the local residents. Franchise taxes, police and most general government services are allocated to both residents and employees, with each job counted at 2/3 the average usage of each resident. Per acre costs include such items as fire protection, street, and sewer services. In Table 3, the total revenues and costs for each classification are tallied (taken from the Appendix). It then calculates the current average revenue and cost generated per resident, per employee, and per acre in each of the cities in the study. Note that the case study items (discussed below) are excluded from these figures. For example, the total revenues for the city of Camarillo are over $27 million, with about $400,000 of that in the property tax case study, $18.9 million allocated to population and $7.8 million to employment. Based on its 1994 demographics, the population-related revenues come to an average of $334.99 per resident, and jobrelated revenues come to $287.91 per job.2 The same calculations are also shown for costs. In addition to costs generated by residents and jobs, there is an estimate of acreage-related costs. Total acreage2 Note that revenues assigned to both are divided using a ratio of each job being the equivalent of 2/3 of a resident, as shown in the top portion of the table. This assumption is based on standards developed in other fiscal analyses throughout California. 143 related costs are divided by residential and commercial acreage, and these are then divided by the number of acres and numbers of residents or jobs per acre to calculate the average per resident and per job allocation of these acreage-driven costs. Table 3 City Ongoing Average Revenues and Costs DEMOGRAPHIC -1994 Population Jobs Jobs Equivalent @ 2/3 Pop. Jobs Equivalent + Population Population % Share Job Equivalent % Share Total Developed Acres(FMMP) Camarillo Fillmore Moorpark Oxnard 56,500 26,970 17,980 74,480 75.9% 24.1% 10,219 12,900 5,624 3,749 16,649 77.5% 22.5% 1,041 27,150 14,295 9,530 36,680 74.0% 26.0% 3,646 151,900 71,491 47,661 199,561 76.1% 23.9% 15,868 CITY REVENUES - By Use Classification (Appendix A) Case Study $401,491 $325,005 $1,028,221 $14,294,034 Res/Jobs $15,970,707 $2,773,401 $5,049,676 $69,765,260 Jobs $3,909,457 $537,603 $1,060,353 $11,133,655 Resid $6,811,468 $1,722,129 $3,783,622 $16,167,906 Acre NA NA NA NA Total Revenue $27,093,123 $5,358,138 $10,921,872 $111,360,855 Resident & Job Total Resident Share $18,926,685 $3,870,982 $7,521,325 $69,271,267 Job Share $7,764,947 $1,162,151 $2,372,326 $27,795,554 Averages Per Resident $334.99 $300.08 $277.03 $456.03 Per Job $287.91 $206.64 $165.96 $388.80 CITY COSTS - By Use Classification (Appendix A) Res/Jobs $14,856,225 $2,763,515 Jobs $867 $506 Resid $168,251 $205,838 Acre-related $8,343,310 $2,448,851 Total Cost $23,368,653 $5,418,709 Resident, Job & Acre Total Resident Share $11,438,032 $2,347,031 Job Share $3,587,311 $622,828 Acre-related Resident Share $7,609,309 $2,007,859 Acre-related Job Share $734,001 $440,992 Average City Costs Per Resident $202.44 $181.94 Per Job $133.01 $110.75 Acre Related Costs - Ongoing Per Resident: Status Quo $134.68 $155.65 Per Resident: Compact $89.79 $103.77 Per Job: Status Quo $40.82 $117.62 Per Job: Compact $27.22 $78.41 144 Santa Paula 26,850 11,982 7,988 34,838 77.1% 22.9% 2,476 $1,679,455 $4,174,597 $1,212,947 $2,222,781 NA $9,289,780 Ventura 97,000 50,075 33,384 130,384 74.4% 25.6% 12,174 Total Six Cities 372,300 180,438 120,292 492,592 75.6% 24.4% 45,424 $10,115,328 $27,843,534 $56,604,186 $154,337,827 $10,268,388 $28,122,402 $17,592,717 $48,300,624 NA NA $94,580,619 $258,604,387 $5,440,192 $59,703,895 $164,734,345 $2,170,133 $24,761,396 $66,026,508 $202.61 $181.12 $615.50 $494.48 $442.48 $365.92 $4,770,587 $53,249,694 $0 $1,082,892 $2,178,861 $10,763,909 $3,010,293 $43,603,640 $9,959,741 $108,700,135 $5,404,762 $2,220 $1,646,364 $2,499,142 $9,552,487 $43,411,900 $124,456,682 $169,081 $1,255,566 $13,208,724 $28,171,947 $26,458,089 $86,363,324 $83,247,793 $240,247,518 $5,709,986 $1,239,462 $2,616,877 $393,416 $51,296,084 $13,800,411 $37,055,306 $6,548,334 $5,811,876 $45,505,385 $122,108,395 $1,241,469 $11,284,319 $31,775,800 $2,096,012 $22,830,416 $74,215,778 $403,130 $3,627,672 $12,147,545 $210.31 $86.71 $337.70 $193.04 $216.46 $103.61 $469.13 $225.35 $327.98 $176.10 $96.39 $64.26 $41.28 $27.52 $243.95 $162.63 $137.39 $91.60 $78.06 $52.04 $50.47 $33.64 $235.37 $156.91 $108.67 $72.44 $199.34 $132.90 $100.98 $67.32 The “status quo” figures show the current averages. For the compact development scenario, the infill development generates no new acreage-driven costs, but the costs per resident and per job for the higher density new urban lands are substantially lower, since there will be 50% more residents or jobs on each acre, while the cost per acre remains the same. For illustrative purposes looking at the six cities combined, these average annual revenues and costs come to: Status Quo Compact Average Revenues: Per Resident $442 $442 Per Job $366 $366 Average Costs:* Per Resident $527 $461 Per Job $277 $243 * include per capita plus per acre costs Difference $0 $0 ($66) ($34) % Change 0.0% 0.0% -12.6% -12.1% Although this does not include all relevant revenues and costs, and the differences vary among the six cities, the average costs to serve the compact land use scenario are clearly lower than for serving the status quo pattern. Property Tax Case Study Property tax revenue to the cities from new development is calculated as a case study item because the city share of property tax varies depending not only on the density of development but on whether that development occurs within existing city boundaries or on newly annexed lands. Table 4 shows the current county and other relevant districts’ shares of property tax on unincorporated lands as well as the calculation of property tax shares to the cities within existing city boundaries and on newly annexed properties. When land is annexed from unincorporated area into a city, the shares previously allocated to the County and some special districts are redivided based on an intergovernmental agreement specific to each jurisdiction. The County still receives a substantial share, since it provides services to city as well as unincorporated area residents. If the city provides its own library and fire protection services, it usually receives the share of property tax revenue previously allocated to the County Library and Fire Protection Districts. 145 Table 4 Property Tax Case Study Annexation Property Tax Shift County Property Tax Rate County Unincorporated Rate Library Unincorporated Rate Fire Unincorporated Rate Annexation Prop Tax Shift (1) County Share to City Library Share to City Fire Share to City Property in Existing City County Rate in City City Rate Property Tax of Annexed Area County Rate in City City Rate Camarillo Fillmore Moorpark Oxnard Santa Paula Ventura 20.5% 1.6% 14.5% 22.0% 1.7% 13.6% 21.8% 1.7% 15.1% 21.8% 1.7% 15.0% 20.5% 1.8% 14.4% 20.3% 1.6% 14.3% 13.7% 0.0% 0.0% 13.7% 0.0% 100.0% 13.7% 0.0% 25.0% 13.7% 100.0% 100.0% 13.7% 0.0% 100.0% 13.7% 100.0% 100.0% 19.2% 3.3% 20.3% 15.8% 17.0% 7.2% 20.2% 17.2% 18.1% 19.7% 19.5% 16.2% 17.7% 2.8% 19.0% 16.6% 18.8% 6.8% 18.8% 19.6% 17.7% 17.2% 17.5% 18.7% Property Tax Share to Residents and Jobs - Infill and Annexation areas Value Per Household $150,000 $125,000 Value per Resident $51,935 $35,455 Property Tax per Resident $519.35 $354.55 County Share - Infill $99.68 $72.05 County Share - Annexed Area $91.94 $67.33 City Share - Infill $16.88 $56.07 City Share - Annexed Area $14.65 $58.86 Value Per Job Property Tax per Job County Share - Infill County Share - Annexed Area City Share - Infill City Share - Annexed Area $12,984 $129.84 $24.92 $22.99 $4.22 $3.66 $8,864 $88.64 $18.01 $16.83 $14.02 $14.72 $175,000 $52,313 $523.13 $89.17 $98.40 $37.52 $35.42 $150,000 $41,503 $415.03 $83.70 $78.22 $71.49 $81.49 $125,000 $38,225 $382.25 $69.22 $67.67 $75.17 $65.68 $175,000 $66,934 $669.34 $130.61 $117.33 $108.73 $124.84 $13,078 $130.78 $22.29 $24.60 $9.38 $8.86 $10,376 $103.76 $20.93 $19.56 $17.87 $20.37 $9,556 $95.56 $17.30 $16.92 $18.79 $16.42 $16,733 $167.33 $32.65 $29.33 $27.18 $31.21 (1) Tax shift based on City/County agreements in AB 8. Moorpark has no tax agreement. As shown, the city share of taxes within existing city boundaries varies widely, from 3.3% in Camarillo to 19.7% in Santa Paula. The share for the cities on newly annexed lands - after dividing the County share and, where appropriate shifting special district shares - is sometimes lower, for example down to 2.8% in Camarillo and to 17.2% in Santa Paula, and sometimes higher, for example in Fillmore, Oxnard, and Ventura. Table 4 also shows the per resident and per job allocation of property tax revenues based on the estimated value per dwelling unit or commercial acre and number of residents and jobs in each city. The value per resident and per job is estimated to be the same under either status quo or compact scenarios, but the cities’ share of revenues will vary depending on tax rate share from infill within existing city boundaries vs. newly annexed areas. 146 Capital Costs Case Study On the cost side, the projection of one-time capital costs is based on a case study for the City of Ventura. Applying the case study to all six cities, Table 5 shows the estimates of these costs for providing major new city infrastructure, such as trunk sewer and water lines, arterial roads and storm drains, fire stations and equipment, and new parks. (The new development is expected to cover the costs of local streets, sewer and water lines, storm drains, etc. , as development occurs, so only the major infrastructure costs are included here.) These capital cost estimates are generalized per acre costs for either a status quo or compact scenario, using specific data from the City of Ventura. More accurate estimates for each city would require further case study analysis. As shown, the total cost of providing new water, waste water, storm drain, traffic/streets, fire, and parks infrastructure to new urban development is estimated at $12,375 per acre for the status quo pattern and at $14,500 for compact development. These per acre costs are translated to per resident and per job costs (the latter not including park-related costs), and are also calculated into annualized costs (spreading the capital investment over 20 years at an estimated 8% interest rate), resulting in the following: • $114.58 per resident per year for the status quo pattern, compared to • $89.51 per resident for the compact approach; and • $32.68 per job per year for the status quo, compared to • $23.48 per job for the compact scenario. These will be used to calculate total projected costs to serve new urban development in the next table. Note that these costs apply only to annexed lands. Infill within existing city boundaries will use existing city infrastructure. 147 Table 5 Capital Costs Projections - One Time Per Acre Costs New Population per residential acre New Jobs per commercial acre Water: Number of feet needed per acre Cost per foot Capital cost per acre Waste Water: Number of feet needed per acre Cost per foot Capital cost per acre Storm drain: Number of feet needed per acre Cost per foot Capital cost per acre Traffic / Streets: Number of feet needed per acre Cost per foot Capital cost per acre Fire: Acres served/fire station Fire station cost Cost per acre Status Quo 11 30 Compact 17 45 % Increase 50% 50% 25 $60 $1,500 25 $70 $1,750 17% 25 $100 $2,500 25 $110 $2,750 10% 25 $20 $500 25 $20 $500 0% 25 $175 $4,375 25 $185 $4,625 6% 2,000 $1,500,000 $750 2,000 $1,500,000 $750 0% Per Acre Sub Total (for Job impact) $9,625 $10,375 8% Parks: Park acres needed/1,000 population Population/acre of development Park acres per acre of development Park cost/acre of development @$50,000 5 11 0.0550 $2,750 Per person Impact Total per acre cost Capital cost per person Per Acre - Annualized cost:20 yrs @ 8% Per Person - Annualized cost:20 yrs @ 8% Per Job Impact Total per acre cost Capital cost per Job Per Acre - Annualized cost:20 yrs @ 8% Per Job - Annualized cost:20 yrs @ 8% $12,375 $1,125 $1,260.42 $114.58 $14,500 $879 $1,476.86 $89.51 $9,625 $321 $980.33 $32.68 $10,375 $231 $1,056.72 $23.48 Source: City of Ventura - Wells and Saticoy Communities Capital Improvement Deficiency Study & Strong Associates 148 5 17 0.0825 $4,125 50% 17% -22% 8% -28% Projections To Year 2010 It is now possible to project the total estimated local government revenues and costs of new urban development under both the status quo and compact scenarios combining the three methodologies discussed above: • average per resident, per job, or per acre revenues and costs; • case study property tax revenues; and • case study one-time capital costs. To project the future impacts, all of these revenues and costs have been calculated in per resident and per job figures. STATUS QUO DEVELOPMENT PATTERN Table 6A shows the effect on the six cities’ revenues and costs if all the projected population growth is accommodated in annexations at the current average density of residents per net residential/infrastructure acre and jobs at the average of 30 per acre, or “status quo” development. As shown, for the six cities combined, it is estimated that for the new development scenario: • Total annual revenues from new development would be $55.5 million. • Costs of providing on-going services are estimated at $50.3 million. • Added to this are $10.5 million in annualized capital costs. • Thus the net effect of the status quo pattern on the combined cities is an annual $5.2 million shortfall. The breakdown by cities shows that some will be more adversely affected than others, due to a combination of the amount of growth being accommodated and the average costs and revenues of the jurisdictions involved. Five of the cities would experience substantial shortfalls; only Ventura shows a positive net balance. Table 6A also shows the per resident and per job total revenues and costs associated with the new development in each city. These figures demonstrate that each resident creates a substantial shortfall - the costs of serving a resident exceed revenues generated - ranging from a negative 10.6% to 52.5%. The average per 149 resident shortfall for the six cities combined is $114.20, or the net is 25% less than revenues per resident. In contrast, each job usually creates a surplus, with only Fillmore as an exception. The combined average per job surplus is $63.39, or a positive 17% compared to revenues per job. Table 6 A Cities’ Added Revenues/Costs at year 2010 Scenario #1- No Infill and Status Quo Development Camarillo Demographic Information Added residents Added jobs Added Acres w/Status Quo City Revenues Per Resident (Tables 3&4) Residential Revenues Per Job (Tables 3&4) Job Revenues Total Revenues Per Resident Revenue/Cost Revenue Cost Net Revenue/(Cost) Net as a % of Revenue Per Job Revenue/Cost Revenue Cost Net Revenue/(Cost) Net as a % of Revenue 150 Moorpark 18,600 5,555 2,357 Oxnard 16,730 21,682 2,208 Santa Paula 7,226 1,921 623 Ventura 4,332 6,878 516 $349.63 $4,279,311 $291.57 $1,211,176 $5,490,488 $358.94 $1,554,910 $221.36 $1,522,477 $3,077,387 $312.45 $537.53 $5,811,512 $8,992,790 $174.81 $409.17 $971,103 $8,871,496 $6,782,615 $17,864,286 $268.30 $740.34 $461.31 $1,938,589 $12,467,484 $35,044,596 $197.54 $525.69 $375.78 $379,473 $7,527,526 $20,483,251 $2,318,061 $19,995,010 $55,527,847 $337.59 $1,462,418 $228.37 $1,570,665 $3,033,083 $306.70 $581.64 $5,704,528 $9,730,839 $127.99 $330.43 $710,996 $7,164,296 $6,415,524 $16,895,135 $294.52 $704.49 $460.94 $2,128,071 $11,863,751 $35,015,807 $154.08 $334.01 $279.71 $295,988 $4,782,820 $15,246,864 $2,424,058 $16,646,571 $50,262,670 $114.58 $496,372 $32.68 $224,751 $721,123 $3,754,206 $114.58 $114.58 $2,131,234 $1,916,980 $32.68 $32.68 $181,529 $708,503 $2,312,763 $2,625,483 $8,728,287 $19,520,618 $114.58 $114.58 $114.58 $827,928 $1,929,605 $8,704,569 $32.68 $32.68 $32.68 $62,774 $467,919 $1,781,219 $890,702 $2,397,524 $10,485,788 $3,314,760 $19,044,095 $60,748,458 ($896,004) ($676,819) ($1,945,672) ($1,656,332) ($996,699) 16,840 14,319 2,301 Total Six Cities 75,967 54,509 10,162 12,240 4,154 2,157 City Ongoing Costs Per Resident (Tables 3&4) $337.12 Residential Costs $4,126,199 Per Job (Tables 3&4) $173.83 Job Costs $722,100 Total before Capital Costs $4,848,299 Add Annualized Capital Costs Per Resident (Table 5) $114.58 Residential Costs $1,402,449 Per Job (Table 5) $32.68 Job Costs $135,743 Total Added Capital Costs $1,538,193 Total Costs including Capital $6,386,492 NET REVENUE (COST) Fillmore $950,915 ($5,220,611) $349.63 $451.70 ($102.07) -29.2% $358.94 $452.17 ($93.23) -26.0% $312.45 $421.28 ($108.83) -34.8% $537.53 $696.23 ($158.70) -29.5% $268.30 $409.10 ($140.81) -52.5% $740.34 $819.08 ($78.73) -10.6% $461.31 $575.52 ($114.20) -24.8% $291.57 $206.51 $85.06 29.2% $221.36 $261.04 ($39.68) -17.9% $174.81 $160.67 $14.15 8.1% $409.17 $363.11 $46.06 11.3% $197.54 $186.76 $10.78 5.5% $525.69 $366.69 $159.00 30.2% $375.78 $312.39 $63.39 16.9% COMPACT DEVELOPMENT PATTERN The impact on the six cities of the compact growth pattern - accommodating 20% of the growth within existing city boundaries and the remaining 80% at an average of 1.5 the current densities - is shown in Table 6B. The combined cities’ total revenues are nearly the same, but costs drop substantially: • Combined revenues come to a $55.4 million annually. • On-going costs drop to an estimated $44.1 million. • Annualized capital improvement costs drop to an estimated at $6.5 million. Thus, the combined cities would experience a $4.9 million net surplus of revenues over costs under this compact development scenario. Looking at individual cities, only Moorpark and Santa Paula show a net annual deficit under the compact model, and this deficit is far lower than it would be under the status quo approach. Table 6B also shows the per resident and per job total revenue/cost associated with the compact scenario in each city. Despite the improved revenue/cost balance, each resident still generally creates a shortfall, with the only exception being in the City of Ventura. The average per resident shortfall for the six cities combined is $34.13, or the net is a negative 7.4% compared to revenues. In contrast, each job creates a large surplus, with the combined average at $107.90, or a positive 28.7% of the net exceeding revenues per job. 151 Table 6 B Cities’ Added Revenues/Cost at Year 2010 Scenario #2 - Infill 20% and Compact Development Camarillo Development Information New residents New jobs New Acres City Revenues Per Resident (Table3&4) Residential Revenues Per Job (Table 3&4) Job Revenues Total Revenues Per Resident Revenue/Cost Revenue Cost Net Revenue/(Cost) Net as a % of Revenue Per Job Revenue/Cost Revenue Cost Net Revenue/(Cost) Net as a % of Revenue 152 Moorpark 16,730 21,682 1,370 Santa Paula 7,226 1,921 349 Ventura $350.08 $4,284,779 $291.68 $1,211,640 $5,496,419 $358.38 $1,552,486 $221.22 $1,521,515 $3,074,001 $312.87 $535.53 $5,819,320 $8,959,328 $174.92 $408.67 $971,686 $8,860,655 $6,791,006 $17,819,983 $270.19 $1,952,298 $198.01 $380,384 $2,332,682 $737.12 $12,413,222 $524.89 $7,515,991 $19,929,213 $460.48 $34,981,434 $375.39 $20,461,871 $55,443,304 $285.71 $1,237,664 $189.16 $1,301,008 $2,538,672 $274.57 $500.33 $5,106,942 $8,370,441 $114.23 $284.63 $634,553 $6,171,315 $5,741,495 $14,541,756 $268.50 $1,940,053 $137.26 $263,672 $2,203,725 $626.04 $10,542,558 $297.79 $4,264,146 $14,806,704 $405.10 $30,774,394 $244.00 $13,300,267 $44,074,661 $89.51 $310,191 $23.48 $129,208 $439,398 $2,978,070 $89.51 $89.51 $1,331,842 $1,197,951 $23.48 $23.48 $104,359 $407,312 $1,436,201 $1,605,264 $7,177,697 $16,147,020 $89.51 $517,386 $23.48 $36,088 $553,474 $2,757,199 $89.51 $1,205,841 $23.48 $269,003 $1,474,843 $16,281,548 $89.51 $5,439,623 $23.48 $1,024,008 $6,463,631 $50,538,292 $95,930 ($386,691) $1,672,963 $3,647,666 $4,905,013 ($424,516) 16,840 14,319 1,355 Total Six Cities 75,967 54,509 5,904 4,332 6,878 336 $299,660 18,600 5,555 1,306 Oxnard 12,240 4,154 1,188 City Ongoing Costs Per Resident (Table 3&4) $292.23 Residential Costs $3,576,734 Per Job (Table 3&4) $160.22 Job Costs $665,574 Total before Capital Costs $4,242,308 Add Annualized Capital Costs Per Resident (Table 5) $89.51 Residential Costs $876,413 Per Job (Table 5) $23.48 Job Costs $78,038 Total Added Capital Costs $954,451 Total Costs including Capital $5,196,759 NET REVENUE (COST) Fillmore $350.08 $381.73 ($31.66) -9.0% $358.38 $375.21 ($16.83) -4.7% $312.87 $364.08 ($51.21) -16.4% $535.53 $589.83 ($54.31) -10.1% $270.19 $358.01 ($87.81) -32.5% $737.12 $715.54 $21.58 2.9% $460.48 $494.61 ($34.13) -7.4% $291.68 $183.71 $107.97 37.0% $221.22 $212.64 $8.58 3.9% $174.92 $137.71 $37.21 21.3% $408.67 $308.12 $100.56 24.6% $198.01 $160.74 $37.27 18.8% $524.89 $321.27 $203.61 38.8% $375.39 $267.48 $107.90 28.7% COMPARISON OF STATUS QUO VS. COMPACT As shown in Table 6C, the compact development scenario is far more favorable to the cities’ budgets than is the status quo approach. For the six cities combined: • The status quo pattern results in a negative over $5.2 million deficit; • The compact scenario results in a positive annual cashflow of $4.9 million; • Thus the compact approach saves the six cities a total of $10.1 million. Figure 5 Comparison Of Status Quo Vs. Compact Development Scenarios At Year 2010 (from Tables 6A and 6B) $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 -$2,000,000 -$4,000,000 -$6,000,000 Status Quo Development Scenario Compact Development Scenario Difference Between Two Scenarios 153 Table 6 C Cities’ Revenues/Costs at Year 2010 Comparison of Two Scenarios (from Tables 6A and 6B) Status Quo Total Revenues On-Going Costs Annualized Capital Costs Net Revenues/(Costs) Camarillo $5,490,488 $3,077,387 $6,782,615 $4,848,299 $3,033,083 $6,415,524 $1,538,193 $721,123 $2,312,763 ($896,004) ($676,819) ($1,945,672) Santa Ventura 6 Cities Paula Total $17,864,286 $2,318,061 $19,995,010 $55,527,847 $16,895,135 $2,424,058 $16,646,571 $50,262,670 $2,625,483 $890,702 $2,397,524 $10,485,788 ($1,656,332) ($996,699) $950,915 ($5,220,611) Compact Total Revenues On-Going Costs Annualized Capital Costs Net Revenues/(Costs) $5,496,419 $4,242,308 $954,451 $299,660 $3,074,001 $2,538,672 $439,398 $95,930 $6,791,006 $5,741,495 $1,436,201 ($386,691) $17,819,983 $14,541,756 $1,605,264 $1,672,963 $2,332,682 $2,203,725 $553,474 ($424,516) $19,929,213 $55,443,304 $14,806,704 $44,074,661 $1,474,843 $6,463,631 $3,647,666 $4,905,013 Diff: Status Quo Vs. Compact $1,195,664 $772,749 $1,558,981 $3,329,295 $572,183 $2,696,751 $10,125,624 Per Resident - Status Quo Revenue Cost Net Revenues/(Costs) Per Resident - Compact Revenue Cost Net Revenues/(Costs) Diff: Status Quo Vs. Compact Per Job - Status Quo Revenue Cost Net Revenues/(Costs) Per Job - Compact Revenue Cost Net Revenues/(Costs) Diff: Status Quo Vs. Compact 154 Fillmore Moorpark Oxnard $349.63 $451.70 ($102.07) $358.94 $452.17 ($93.23) $312.45 $421.28 ($108.83) $537.53 $696.23 ($158.70) $268.30 $409.10 ($140.81) $740.34 $819.08 ($78.73) $461.31 $575.52 ($114.20) $350.08 $381.73 ($31.66) $358.38 $375.21 ($16.83) $312.87 $364.08 ($51.21) $535.53 $589.83 ($54.31) $270.19 $358.01 ($87.81) $737.12 $715.54 $21.58 $460.48 $494.61 ($34.13) $70.42 $76.40 $57.63 $104.39 $53.00 $100.31 $80.08 $291.57 $206.51 $85.06 $221.36 $261.04 ($39.68) $174.81 $160.67 $14.15 $409.17 $363.11 $46.06 $197.54 $186.76 $10.78 $525.69 $366.69 $159.00 $375.78 $312.39 $63.39 $291.68 $183.71 $107.97 $221.22 $212.64 $8.58 $174.92 $137.71 $37.21 $408.67 $308.12 $100.56 $198.01 $160.74 $37.27 $524.89 $321.27 $203.61 $375.39 $267.48 $107.90 $22.91 $48.26 $23.06 $54.49 $26.49 $44.61 $44.51 For each of the cities, the net revenue/cost balance is consistently more favorable under the compact scenario, but there is a wide range in impact depending on each city’s conditions. As shown, adopting the compact approach would have these beneficial impacts: • Camarillo would go from a net loss of $896,000 to a surplus of $300,000 • Fillmore would go from a $677,000 loss to a $96,000 surplus • Moorpark would go from a $1,946,000 loss to a much smaller $387,000 loss • Oxnard would go from a $1,656,000 loss to a $1,673,000 surplus • Santa Paula would go from a $997,000 loss to a smaller $425,000 loss • Ventura would go from a $951,000 surplus to a much larger $3,648,000 surplus. Figure 6 Cities Revenues/Costs at Year 2010 Comparison of Two Scenarios $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 -$1,000,000 -$2,000,000 Camar illo Fillmore Moorpark Oxnard Santa Paula Ventur a Status Quo Development Scenar io Compact Deve lopment Scenar io Difference Between Two Scenar ios 155 Table 6C and Figure 7 also compare the per resident and per job revenues and costs associated with the two alternative scenarios. As shown, for the six cities combined, on average: • Each resident generates about $460 revenue under either scenario; • Each resident costs $576 to serve under the status quo pattern compared to $495 under the compact approach; Thus residents create a net loss under both scenarios, but the loss is $114 under the status quo compared to $34 under the compact approach: • Each job generates about the same revenue, at $375; • The cost per job is $312 for the status quo pattern compared to $267 for the compact scenario; • Thus jobs create a net surplus under both scenarios, but less for the status quo, at $63, than for the compact approach, at $108 surplus per job. 156 Figure 7 Cities’ Revenues/Costs for Residents and Jobs at Year 2010 Comparison of Two Scenarios $175 $125 $75 $25 -$25 -$75 -$125 -$175 Camar illo Fillmore Moorpark Oxnard Santa Paula Ventur a Net Revenues/Resident Status Quo Net Revenues/Resident Compact Net Revenues/Job St atus Quo Net Revenues/Job Compact 157 County Costs & Revenues The County government will also be affected by the displacement of agricultural lands and the revenues and costs generated by the new growth in the six agricultural-dependent cities. This chapter evaluates the County fiscal impacts combining three methodologies: • Determining average County revenues and costs for each new resident and new job added to the six cities; • Calculating the County’s share of property taxes from the new development, both from infill and annexed lands; and • Evaluating the loss of revenues and costs from the reduction in agricultural land. The County will have no capital costs and no acre-related costs for serving the new development, all of which is expected to occur within existing or newly annexed city areas. Ongoing Average Revenues And Costs The same methodology that is used for the cities above is also used for the County to allocate costs and revenues attributable to residents and jobs based on current budget documents and then determine average per resident and per job revenues and costs. The results are depicted in Table 7. 158 Table 7 County Ongoing Average Revenues and Costs(1) County Total New Population and Jobs Revenues by Use Classification Case Study, Other Residential/Job Split (2) Residential Total Revenues Per Resident and Per Job (2) $167,092,700 $229,181,000 $171,250,100 $567,523,800 New Revenue Costs by Use Classification Case Study, Other Residential/Job Split (2) Residential Total Costs Per Resident and Per Job (2) $24,978,500 $243,843,200 $206,412,900 $475,234,600 New Cost (1) Detail in Appendix B (2) Based on Ventura County Budget 1993/1994 Population 708,200 Jobs 356,497 Jobs @ 2/3 weight 237,664 Total Pop plus 2/3 Jobs 945,864 Residential Job 75,967 54,509 $171,595,402 $171,250,100 $57,585,598 $342,845,502 $484.11 $57,585,598 $161.53 $36,776,199 $8,804,928 $182,573,477 $206,412,900 $61,269,724 $388,986,377 $549.26 $61,269,724 $171.87 $41,725,618 $9,368,236 Total New Development $45,581,127 $51,093,855 % Share 74.9% 25.1% 100.0% As shown, the distribution of revenues (excluding case study items) comes to: • $484.11 per resident • $161.53 per job Yielding a total of $45.6 million annual revenue from the new development. The distribution of costs comes to: • $549.26 per resident • $171.87 per job Resulting in a total of $51.1 million in annual costs for the new development. 159 Property Tax Case Study In Table 4 on page 146, the shares of property taxes to each city and to the County were calculated for added property value in both infill and new annexation areas. The County’s shares are summarized in Table 8, along with the projected total added revenue to the County for both scenarios. As shown, the total County property tax revenue from new development is: • $8.25 million for the status quo scenario, compared to • $8.32 million for the compact alternative. The small difference is due to the generally higher share the County will receive from the compact scenario’s infill development. Table 8 County Share of New Property Tax Camarillo Development Information Residents Jobs 12,240 4,154 Fillmore Moorpark 4,332 6,878 Per Resident and Job Property Tax (from Table 4) Resident Add for Infill Prop Tax $99.68 $72.05 Add for Annex Prop Tax $91.94 $67.33 Job Add for Infill Prop Tax $24.92 $18.01 Add for Annex Prop Tax $22.99 $16.83 Total County Property Tax Status Quo (no infill) Compact (20% infill) 160 $1,220,818 $1,241,353 Oxnard Santa Paula 7,226 1,921 Ventura 18,600 5,555 16,730 21,682 $89.17 $98.40 $83.70 $78.22 $69.22 $67.67 $130.61 $117.33 $22.29 $24.60 $20.93 $19.56 $17.30 $16.92 $32.65 $29.33 $407,433 $1,966,851 $1,732,648 $413,146 $1,929,961 $1,756,921 16,840 14,319 Total Six Cities 75,967 54,509 $521,474 $2,395,812 $8,245,038 $523,855 $2,450,079 $8,315,314 Loss Of Agriculture Land Revenues/Costs Case Study Up to this point, we have evaluated the fiscal impact of adding new development to the cities and Ventura County. This subsection evaluates the revenue/cost impact to the County of losing the current agricultural uses as the urban growth occurs. Table 9 itemizes the County revenues and costs attributable to agriculture. The major revenue is from property tax. As shown in the lower part of the table, there are an estimated 89,961 total acres of agricultural land in the County, which at the County’s 33% share of the 1% property tax, generate over $4.2 million in total property tax revenue, or an average of $47.25 per acre. Those agricultural acres in the path of urbanization are estimated at an average 12% higher value, or $52.92 per acre. This higher average value is based on sample audits of Assessor’s parcel data by location using the GIS model, and is due in part to their speculative property value. Other revenues attributable to agriculture include Agricultural Commissioner fees and State aid, coming to a total of $58.00 per acre. 161 Table 9 County Loss of Agricultural Land Direct Revenue and Cost AGRICULTURAL IMPACT TO COUNTY GENERAL FUND Agricultural Acreage Lost Annual Revenue per Acre @$58.00 Cost per Acre @ $37.72 Net Revenue Lost Status Quo 10,162 Compact 5,904 Difference (4,258) % Change 589,358 383,318 342,426 222,713 (246,932) (160,605) 206,040 119,712 (86,328) -41.9% Support information County Total 89,961 100% Per Acre Status Quo 10,162 11% Compact 5,904 7% County Revenues Lost Property Tax (see below) (1) Agriculture Commissioner Fees Ag Commissioner State Aid-Agriculture Total Revenue Percent of total $4,250,859 NA $450,000 6,600 $4,707,459 100% $52.92 $0.00 $5.00 $0.07 $58.00 $537,782 $0 $50,830 $746 $589,358 13% $312,459 $0 $29,533 $433 $342,426 7% County Costs Reduced Agriculture Commissioner Sheriff - 1 patrol plus overhead Other County Costs (2) Total Cost Percent of total $1,793,500 $100,000 $1,500,000 $3,393,500 100% $19.94 $1.11 $16.67 $37.72 $383,318 11% $222,713 7% ($160,605) Net County Revenue Lost Net as a Percent of Revenues $1,313,959 27.9% $14.61 $206,040 35.0% $119,712 35.0% ($86,328) Assesssed Property Tax County Share Value (3) @1% @33% Total County Property Tax Agricultural Acres Lost Percent of total Agricultural Land Property Tax Calculation Acres Difference (4,258) Fruits & Nuts (4) 63,477 $16,218 $162.18 $53.52 $3,397,251 Vegetables (5) 26,484 $9,767 $97.67 $32.23 $853,608 $47.25 $52.92 $4,250,859 Total Selected Crops 89,961 Ag land near Cities is 12% higher than County Wide Average (1) Per acre ag property tax of $52.42 is noted above as 12% higher than county wide average (2) Based on budget review and interviews with administration support staff. (3) Property value estimated based on Assessor tape of Ag land uses (4) Actual acres inc. non-bearing and non-harvested Tree crops. (5) 1/2 of 52,968 harvested acres to account for double cropping 162 The costs of providing County services include the Agricultural Commissioner’s budget, estimated sheriff patrol costs, and other items, coming to a total of $37.72 per agricultural acre. Thus there is a net surplus of revenues of $20.28 for each acre of agricultural land. As noted above, the status quo scenario of new development will use a total of about 10,200 acres of predominantly agricultural land, while the compact scenario uses only about 5,900 acres. Thus, the County will lose: • $206,040 in net revenue lost from the status quo scenario, compared to • $119,712 in net revenue lost from the compact scenario. • The difference is a $86,328 advantage (less revenue lost) to the County from the compact approach. Projections To Year 2010: Status Quo Vs. Compact The County’s revenues and costs are increased from the addition of the new County residents, jobs, and property value in the six focus cities, but they are also decreased by the loss of agricultural land. As evaluated above: • The County’s average revenues and costs are the same to serve the new development whether it occurs in the status quo or compact pattern. • The revenues from the new property value are slightly higher for compact scenario. • Finally, the County will lose some of the net revenue surplus it enjoys from agricultural acreage, with the compact pattern losing less than the status quo scenario. As shown in Table 10, for the status quo pattern, the County would: • Gain $53.2 million in revenue compared to • $50.7 million in costs, Yielding a net surplus of $2.5 million annually from the effect of new development. 163 Under the compact growth scenario, the County would: • Receive $53.5 million in new revenues, compared to • $50.8 million in costs, Yielding a net surplus of $2.7 million annually. Thus under either scenario the County is well above break-even. The compact development scenario has a slight advantage, with a $157,000 higher annual surplus than the status quo pattern. Table 10 County Revenues and Costs Status Quo Compact Difference County Revenues Average Revenues (Table 7) Property Tax Share (Table 8) Less Ag Revenue lost (Table 9) Total Revenue $45,581,127 $8,245,038 ($589,358) $53,236,807 $45,581,127 $8,315,314 ($342,426) $53,554,016 $0 ($70,277) ($246,932) ($317,209) County Costs Average Costs (Table 7) Less Ag Cost Reduction (Table 9) Total Cost $51,093,855 ($383,318) $50,710,537 $51,093,855 ($222,713) $50,871,142 $0 ($160,605) ($160,605) $2,526,270 $2,682,874 ($156,604) Net Revenue (Cost) Figure 8 Ventura County Net Revenues Comparing Two Scenarios Ventura County Net Revenues $2,700,000 $2,600,000 $2,500,000 $2,400,000 Status Quo Development Scenar io 164 Compact Deve lopment Scenar io Appendix A: City Revenue Detail ANNUAL REPORT 1992/93 - FINANCIAL TRANSACTIONS CONCERNING CITIES STATE OF CALIFORNIA, OFFICE OF THE CONTROLLER Camarillo Fillmore Moorpark Oxnard Allocation CS (1) CS CS CS CS (1) (1) (1) (1) Jobs.67 (3)Res.33 (4) Jobs.67 (3)Res.33 (4) Res/Jobs (2) Res/Jobs (2) Jobs (3) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Resid (4) Resid (4) Resid (4) Taxes Secured and Unsecured Prop Tax Indebtedness Property Tax Property Tax - Prior Year Other Property Taxes Interest, Penalties / Delinquent Sales and Use Taxes Transportation Tax Transient Lodging Taxes Franchises Business License Taxes Real Property Transfer Taxes Utility Users Tax Other Non-Property Taxes Benefit Assessments Fire Paramedics Lighting Other Licenses and Permits Construction Permits Other Licenses and Permits Fines and Forfeitures Vehicle Code Fines Other Fines, Forfeitures/Penalties Use of Money Investment Earnings Rents and Concessions Royalties Other Intergovernmental State Motor Vehicle InLieu Tax State Trailer Coach InLieu Tax State Cigarette Tax Santa Paula Ventura 1,679,455 9,625,488 358,373 320,739 1,017,647 10,783,293 6,185 34,522 2,411 2,227 415 2,947,942 439,249 406,577 2,039 10,159 123,550 83,263 3,604,366 475,952 897,155 11,252,058 150,186 12,702,647 1,354,702 304,117 685,461 2,391,190 1,294,894 1,339,087 557,300 949,759 586,881 147,257 34,902 158,137 14,957 10,570 63,074 1,208,852 1,907,900 1,992,679 177,667 511,688 48,241 209,147 122,466 1,762,948 822,238 850,642 174,525 328,338 1,552,555 3,678,474 25,837 19,550 5,060,787 5,198,370 115,488 21,938 444,045 350,977 835,529 593,939 336 51,524 7,166 32,713 1,070,630 226,917 114,926 20,328 421,414 4,895 50,862 75,617 4,392 5,256 52,178 43,218 406,763 255,426 29,039 4,393 515,063 49,443 958,614 21,995 438,853 25,427 1,109,941 58,745 3,587,729 408,747 227,206 10,489,969 39,399 81,116 3,422,029 437,241 974,891 5,168,948 909,452 3,361,644 16,968 4,246 1,259 18,372 6,355 22,498 2,726 1,130 1,725 7,540 2,543 15,181 323,057 936,194 73,426 165 Appendix A: City Revenue Detail - continued Camarillo Fillmore Res/Jobs (2) Resid (4) Resid (4) Resid (4) Homeowners Property Tax Relief State Gasoline Tax Other State Grants County Grants of State Gas Tax County Grants Federal Revenue Sharing Other Federal Grants Other Taxes in-Lieu Charges for Services Zoning Fees and Subdivision Fees Police Department Services Fire Department Services Plan Checking Fees Animal Shelter Fees and Charges Engineering Fees Street, Sidewalk and Curb Repairs Weed and Lot Cleaning Sewer Charges/Connect Fees * Solid Waste Revenues * First Aid and Ambulance Charges Library Fines and Fees Parking Facilities Parks and Recreation Fees Golf Course Fees Water Charges/Connect Fees * Electric Revenues Airport Revenues Cemetery Revenues Housing Revenues Transit Revenues Quasi-External Transactions Resid Resid Resid Resid (4) (4) (4) (4) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Resid (4) Res/Jobs (2) Resid (4) Resid (4) Res/Jobs (2) Res/Jobs (2) Resid (4) Resid (4) Jobs (3) Resid (4) Resid (4) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Resid (4) Resid (4) Res/Jobs (2) Res/Jobs (2) 166 Moorpark Oxnard Santa Paula Ventura 6,326 26,000 18,546 283,627 31,529 184,900 878,331 55,989 214,000 176,316 443,706 359,840 1,745,009 322,653 438,093 119,735 1,594,631 3,240,421 10,123 587,984 339,275 2,174,128 257,358 1,718,641 54,057 390,111 53,298 157,983 5,727 1,709 19,298 294,273 2,220 17,618 123,887 776,430 1,105 29,715 37,486 612 254,937 317,174 433,606 12,761 29,114 8,597 548,502 10,640 16,043,223 1,634 994,035 16,015 9,386,327 32,833 13,660,771 1,102,798 798,933 550,223 502,837 176,780 33,034 551,680 2,865,756 41,281 35,596 35,192 4,481,133 775,342 29,533 413,280 5,396 86,146 1,024,970 1,150,988 13,107,009 9,784 1,465,552 1,524,362 11,294,461 6,053,925 2,456,653 8,421 Appendix A: City Revenue Detail - continued Res/Jobs (2) Sub of * above Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Other Current Service Charges Sewer/water/solid waste * Other Revenues Sale of Real and Personal Property Contributions: Non-Govt Sources Other Sources of Revenues Other Sources Sale of Bonds Notes and Other 700,893 46,413 4,773 91,764 1,292 63,911 270 10,810 53,628 34,420 934,174 139,597 403,313 41,425 52,989 4,884,157 124,324 17,924 415,292 712,680 5,765,743 Santa Paula Ventura 3,150,000 Appendix A: City Cost Detail ANNUAL REPORT 1992/93 - FINANCIAL TRANSACTIONS CONCERNING CITIES STATE OF CALIFORNIA, OFFICE OF THE CONTROLLER Camarillo Fillmore Moorpark Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Acre (5) Res/Jobs (2) Resid (4) Res/Jobs (2) Acre (5) Res/Jobs (2) Res/Jobs (2) Acre (5) Acre (5) Jobs (3) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) General Government Legislative 725,807 91,957 Management and 3,141,882 131,357 Support Public Safety Police 3,993,614 1,156,941 Fire 187,280 Emergency Medical Services Animal Regulation 168,251 29,513 Weed Abatement 3,540 8,598 Street Lighting 47,356 Disaster Preparedness 18,502 Other Transportation Street, Highways, & 4,003,373 1,033,489 Storm Drains Street Trees & 916,993 126,146 Landscaping Parking Facilities 506 Public Transit 331,685 127,396 Airports Other 23,634 1,142,479 2,155,332 Oxnard 1,561,597 8,477,076 18,028,416 2,901,097 14,531,623 6,878,156 616,853 7,640,305 66,703 389,994 235,496 1,711,585 661,973 10,019,670 88,914 2,557 765,213 42,379 2,592,102 49,901 836,684 2,309,531 13,886,298 1,367,605 8,467,636 742,409 466,860 148,153 117,976 16,981 167 Appendix A: City Costs Detail - Continued Camarillo Fillmore Moorpark Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Resid (4) Jobs (3) Res/Jobs (2) Res/Jobs (2) Resid (4) Resid (4) Ac(5)0.5 & Res/job(2)0.5 Ac(5)0.5 & Res/job(2)0.5 Resid (4) Res/Jobs (2) Resid Resid Resid Resid Resid Resid Resid Resid (4) (4) (4) (4) (4) (4) (4) (4) Ac(5)0.5 & Res/job(2)0.5 Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) Res/Jobs (2) 168 Community Development Planning 825,389 Construction and Engineering Regulation Enforcement 1,682,803 Redevelopment Housing Employment 867 Community Promotion 45,298 Other 663,182 Health Physical & Mental Health Hospitals & Sanitariums Solid Waste 2,593,844 Sewers Ventura 893,436 1,779,555 190,673 1,337,996 108,162 341,053 1,233,054 96,023 647,944 616,032 475,673 405,628 2,252,062 2,220 20,928 1,004,552 1,423,925 26,101 7,453 34,259 56,394 1,031,499 1,579 Santa Paula 84,524 Cemeteries Other Culture and Leisure Parks and Recreation 168,872 Marina and Wharf's Libraries Museums Golf Courses Sports Arena/Stadiums Community Center/Auditoriums Other Public Utilities (Enterprise) Water 4,252,044 1,043,401 Gas Electric Other Other Costs Oxnard 967,540 12,783,188 1,029,367 17,936,654 2,025,541 4,519,843 8,612,706 450,339 8,775,682 739,846 2,087,225 163,481 2,179,273 1,740,533 1,166,143 86,617 139,571 1,952,663 13,428,104 8,929,403 Appendix B: County Revenues & Costs Detail COUNTY BUDGET, 1993-1994 (1) Per population and Job Calculation 1993-1994 < - - Divide By - - > County Cost Population(1) Pop+Empl (2) 945,864 74.9% Employ share 25.1% $2,146,900 $15,286,100 $2,871,300 $357,200 $20,661,500 $15,469,949 $5,191,551 $55,399,400 $3,189,200 $3,988,000 $1,772,300 $0 $1,790,000 $10,972,400 $97,772,800 $55,399,400 $3,189,200 $3,988,000 $1,772,300 $0 $1,790,000 $10,972,400 $77,111,300 $57,735,783 $19,375,517 $529,400 $529,400 COSTS General-Legislative/Administrative Board of Supervisors $2,146,900 Special Accts & Contribs $15,286,100 Chief Admin Office $2,871,300 Clerk-Board of Supervisors $357,200 Total $20,661,500 Finance County Counsel Personnel Elections Property Management Plant Acquisition Other General Total General Public Protection Judicial County Clerk 708,200 Superior Court Municipal Court District Attorney DA-Child Support Public Defender Workers Comp Fraud Unit Fish & Game Prosecution Indigent Legal Services Grand Jury Total Judicial $8,809,100 $10,091,400 $13,801,700 $11,801,000 $5,113,600 $250,000 $78,200 $78,200 $1,896,400 Case Study $184,900 $52,555,700 $78,200 $8,809,100 $10,091,400 $13,801,700 $11,801,000 $5,113,600 $250,000 Sheriff-Police Services Sheriff-Detention Service Corrections Services Agy Total Sheriff-Police Services $54,319,700 $26,520,900 $18,834,000 $99,674,600 $54,319,700 $26,520,900 $18,834,000 $18,834,000 $184,900 $50,581,100 $80,840,600 Pop Share $37,871,744 $12,709,356 $60,528,034 $20,312,566 169 Appendix B: County Revenues & Costs Detail - continued Protective Inspection RMA-Building & Safety Solid Waste Management Agriculture Commissioner RMA-Weights & Measures Total Protective Inspection $1,807,900 $1,807,900 $1,524,000 $1,524,000 $1,793,500 Agricultural Related (see case study) $450,400 $0 $5,575,800 $0 $3,331,900 $2,494,704 Other Protection RMA-Planning Animal Regulation Spay/Neuter Program RMA-Operations Fish & Game Recorders Office HCA-Medical Examiner Public Administrator Local Agy Formation Com Total Other Protection $3,415,000 $2,722,500 $181,700 $2,139,400 $36,300 $1,743,800 $897,800 $531,800 $185,700 $11,854,000 Public Ways & Facilities PWA-Roads Total Public Ways & Facilities $13,252,700 $13,252,700 Health & Sanitation HCA-Admin & Support Services HCA-AB75 Admin/Clearing HCA-Emergency Medical Services HCA-Public Health HCA-Mental Health HCA-Alcohol/Drug Programs HCA-Drinking Driver Programs RMA- Environmental Health HCA-Women/Infant/Children HCA-Child Disability Total Health & Sanitation Public Assistance Total Administration Aid/Families/Dep Children PSSA Total Aid to Children in Instit Total Aid-Other Total General Relief Total Other Assistance Total Public Assistance 170 $837,196 $3,415,000 $2,722,500 $181,700 $2,139,400 $36,300 $1,743,800 $897,800 $531,800 $3,472,300 $1,103,800 $3,213,600 $1,222,600 $1,103,800 $3,213,600 $1,222,600 $7,357,000 $32,169,700 $5,930,700 $1,909,700 $3,461,300 $1,184,500 $3,641,600 $61,194,500 $7,357,000 $32,169,700 $5,930,700 $1,909,700 $42,347,500 $66,242,200 $42,347,500 $66,242,200 $185,700 $8,381,700 $6,275,656 $2,106,044 $13,252,700 $13,252,700 $9,922,735 $3,329,965 $2,591,590 $869,710 $3,461,300 $1,184,500 $3,641,600 $57,733,200 $10,212,500 $10,212,500 $1,070,200 $1,070,200 $990,500 $990,500 $5,432,300 $5,432,300 $126,295,200 $126,295,200 $3,461,300 Appendix B: County Revenues & Costs Detail - continued Education Total Library Services Ag Education Farm Advisor Total Education $6,882,600 $6,882,600 $176,700Agricultural Related (see case study) $7,059,300 $6,882,600 $5,153,230 Total Costs Per Capita/Job Case Study Costs: $475,234,600 $206,412,900 $243,843,200 $182,573,477 $291.46 $257.80 Total $549.26 Residential $1,970,200 $388,986,377 Agriculture Costs County population as of Jan 1 1994 County Employ (1990 Census) times 66.7 percent Population plus 66.7 percent employment $1,729,370 $61,269,724 $171.87 708,200 356,497 237,664 945,864 Appendix B: County Revenues & Costs Detail COUNTY BUDGET, 1993-1994 (1) Per population and Job Calculation REVENUES Taxes Property Tax Sales Tax Other Tax Total Tax Licenses, Permits and Franchises Animal License Business License Construction Permits Road Privileges & Permits Zoning permits Franchises Other licenses & permits Total Licenses, Permits & Franchises 1993-1994 < - - Divide By - - > County Revenue Population(1) Pop+Empl (2) 0.0% Employ share 25.1% $83,414,200 Case Study (see Table 7 A - Property Tax) $5,928,900 $5,928,900 $2,039,600 $2,039,600 $91,382,700 $7,968,500 $5,966,280 $2,002,220 $446,500 $2,305,200 $775,900 $152,100 $14,900 $1,544,800 $1,670,300 $98,292,400 $2,002,220 708,200 945,864 Pop Share $446,500 $446,500 $2,305,200 $775,900 $152,100 $14,900 $1,544,800 $1,670,300 $14,431,700 $5,966,280 171 Appendix B: County Revenues & Costs Detail - continued Fines, Forfeitures & Penalties Vehicle Code Fines Other Court Fines Forfeitures and Penalties Total Fines, Forfeitures & Penalties Use of Money & Property Interest Rents & Concessions Total Use of Money & Property Intergovernmental Revenue Intergovernmental Revenue Transfer Airports-State Grants State Highway Users Tax State Motor Vehicle In-Lieu Tax Auditor-Controller State-Public Assist Admin State Aid for Publ Assist State Health Admin State Aid-Calif Children State Aid-Mental Health Other State Aid-Health State Aid-Agriculture State Aid-Construction State Aid-Corrections State Aid-Disasters State Aid-Veterans Affairs H/O Prop Tax Relief State Trial Court State-Other District Attorney Auditor-Controller Auditor Controller Elections Division Superior Court DA-Child Support Public Defender Sheriff-Police Services Corrections Services Agy RMA Planning HCA-Medical Examiner HCA-Mental Health Chief Admin Office District Attorney DA-Child Support 172 $709,200 $5,768,400 $1,474,700 $7,952,300 $709,200 $5,768,400 $1,474,700 $7,952,300 $5,954,150 $1,998,150 $5,779,400 $97,500 $5,876,900 $5,779,400 $97,500 $5,876,900 $4,400,230 $1,476,670 $584,400 $584,400 $10,000 $10,000 $10,086,300 $10,086,300 $37,625,300 $37,625,300 $700 $700 $9,436,100 $9,436,100 $47,215,400 $47,215,400 $1,870,500 $1,870,500 $1,378,800 $1,378,800 $13,429,700 $13,429,700 $8,609,700 $8,609,700 $6,600Ag Related - See Ag Case Study $422,400 $422,400 $192,700 $192,700 $84,700 $84,700 $54,900 $54,900 $1,488,400 Case Study (see Table 7 A - Property Tax) $10,257,400 $10,257,400 $4,900 $285,400 $63,700 $98,000 $29,500 $289,300 $10,400 $46,100 $48,700 $37,200 $3,200 $268,000 $100 $825,100 $124,000 $4,900 $285,400 $63,700 $98,000 $29,500 $289,300 $10,400 $46,100 $48,700 $37,200 $3,200 $268,000 $100 $825,100 $124,000 Appendix B: County Revenues & Costs Detail - continued Public Defender Workers Comp Fraud Unit Sheriff-Detention Services Corrections Services Agy Solid Waste Management Agriculture Commissioner RMA-Weights & Measures HCA-AB75 Admin/Clearing RMA-Environmental Health PSSA-Income Maintenance PSSA-Adult Services PSSA-Children's Services HCA-AB75 Admin/Clearing Auditor-Controller District Attorney Public Defender Sheriff-Police Services Corrections Services Agy Total State Aid Intergovernmental - Federal Federal Public Assistance Admin Federal Aid-Public Assist Federal Health Admin Federal Aid-Construction Federal Aid for Disaster Federal Forest Reserve Rev Federal In-Lieu Taxes Federal-Other Other In-Lieu Taxes Other Governmental Agency Total Federal Aid Total Intergovernmental Revenue Charges For Services HCA-Child Disability Interfund Charges Assessment & Tax Coll Fees Auditing, Accounting Fees Election Services Legal Services Personnel Services Planning & Engineering $243,900 $243,900 $15,400 $15,400 $158,600 $158,600 $588,800 $588,800 $13,200 $13,200 $1,113,400 Ag Related - See Ag Case Study $13,400 $13,400 $949,700 $949,700 $28,900 $28,900 $10,807,500 $10,807,500 $3,057,800 $3,057,800 $126,300 $126,300 $2,048,800 $2,048,800 $24,899,900 $24,899,900 $167,000 $167,000 $100,200 $100,200 $1,746,000 $1,746,000 $295,200 $295,200 $191,261,600 $90,956,300 $97,696,900 $12,366,300 $73,148,903 $24,547,997 $4,458,800 $61,300 $9,291,100 $16,080,300 $12,039,853 $4,040,447 $154,606,400 $113,777,200 $85,188,756 $28,588,444 $12,366,300 $43,199,400 $43,199,400 $8,084,400 $8,084,400 $85,900 $2,183,200 $28,300 Not Applicable $406,400 Not Applicable $4,458,800 $61,300 $9,291,100 $80,165,100 $63,650,100 $271,426,700 $359,600 $13,480,700 $3,655,400 $10,100 $144,700 $594,800 $222,400 $3,548,000 $85,900 $2,183,200 $359,600 $13,480,700 $3,655,400 $10,100 $144,700 $594,800 $222,400 $3,548,000 173 Appendix B: County Revenues & Costs Detail - continued Agricultural Serv Commissioner $318,800 Ag Related - See Ag Case Study $424,000 $424,000 $1,919,200 $1,919,200 $103,600 $103,600 $103,800 $103,800 $17,620,000 $17,620,000 $1,635,300 $1,635,300 $2,000 $2,000 $797,000 $797,000 $10,046,300 $10,046,300 $24,600 $24,600 $592,400 $592,400 $25,700 $25,700 $3,815,000 $3,815,000 $118,800 $118,800 $159,100 $159,100 $1,204,900 $1,204,900 $60,926,200 $15,698,200 $44,909,200 $33,625,005 $11,284,195 Miscellaneous Revenues HCA-Public Health Welfare Payments Other Sales Miscellaneous Total Miscellaneous Revenues $24,100 $474,900 $720,100 $13,352,400 $14,571,500 $720,100 $13,352,400 $499,000 $14,072,500 $10,536,547 $3,535,953 Other Financing Sources $25,047,400 $28,145,000 $21,073,093 $7,071,907 $567,523,800 $171,250,100 $229,181,000 $171,595,402 $241.81 $242.30 $57,585,598 $161.53 Sheriff-Police Services Court Fees & Costs Estate Fees Humane Services Law Enforcement Services Recording Fees Road and Street Services Health Fees Mental Health Services California Children's Serv Sanitation Services Adoption Fees Institutional Care & Services Educational Services Library Services Other Total Charges for Services Total Revenues Per Capita/Job 174 $24,100 $474,900 Geographic Information System Edward S. McNiel University of California, Davis Table of Contents Background The Ventura County Agricultural GIS Map and Data Sources 176 177 177 Source Table 179 Sample Map 177 175 Background Geographic Information System (GIS) data bases are used to provide the spatial dimension to analyses that normally are performed solely on numbers or text. The GIS is a series of graphic map overlays with text and numeric information attached to each element on the maps. The logic for the organization of these overlays comes from Systems Theory. It is based on the notion that the environment and the social network of human activities it supports can be broken into a series of smaller coherent units of analysis. Investigating these units in relative isolation will result in a greater depth of understanding about the characteristics and dynamics of individual systems. These systems are then recombined in the GIS according to hypothetical conceptual models created by the user to test the validity of the underlying assumptions about how holistic environment works. Analysis can be carefully controlled and be more precise because of the integrity of the individual systems represented in the layers. In selectively discovering causal relationships between a limited number of variables, the growing body of knowledge helps the investigator validate and calibrate each conceptual model. In research design this would be the same as reducing the number of independent variables so a few can be studied in detail for their influence on the dependent variable. The systems are conceptually grouped into two sub-categories; Natural Systems and Cultural Systems. Natural systems describe the landscape in basic units dealing with topography and landforms, soils, hydrology and vegetation. Cultural systems are those concerned with the activities and artificial boundaries determined by the actions of humans. Since this data base was constructed to support economic analysis, most of the cultural information is available at the parcel level, the primary economic unit of agriculture. The data available at parcel level was provided by the Ventura County Assessor's Office. They include information about the ownership, use and value of each parcel. The GIS application adds spatial information including location, size and adjacency. The way textual and numerical information is stored is the same as for all flat file data bases, using "records" and "fields". Records can be thought of as an entire form that has many pieces of information on it, similar to an inventory sheet or questionnaire. Each object on the map has a record attached to it. The actual information is stored in fields within the record. Some records have only one field containing the name of a road or a degree of slope while others will have many fields containing a wide variety of information. Some fields are calculation fields and perform mathematical operations. All record formats will be the same for a particular layer, although all the fields for a particular record may not contain data. 176 The Ventura County Agricultural GIS Study sponsors felt a GIS was essential to make the kinds of analyses needed for a comprehensive, strategic farmland conservation program. By linking a large data base to layered maps, the GIS enabled the research team to view land use patterns and economic values as they changed over time and space. The Ventura County Agricultural data base covers the majority of southern Ventura County and combines maps with data for each parcel of farmland. The system will produce maps from user specified criteria or will return the information associated with any object on any of the many map overlays. A map, following at the end of this chapter, illustrates layers including State Department of Conservation Farmland Mapping and Monitoring Program classifications, City and Sphere of Influence boundaries and individual farmland parcels. Since GeoNavigator™, the GIS application used for this study, works with the real world scale of the objects portrayed on the maps, accurate measurements can be made directly on the maps themselves, returning distances and area calculations. This type of information is extremely helpful in the assessment of the spatial magnitude of a particular land use or similar spatially defined variable. On the data side, the application will perform basic and complex mathematical operations and print reports that combine text and numbers in almost any way desired. The GIS will be utilized by the Ventura County Agricultural Land Trust to demonstrate economic impacts of farmland conversion and to develop strategies for long term farmland conservation. The County of Ventura Planning Division will also use this farmland data base GIS in concert with their broader-based, multipurpose GIS now in development. Map And Data Sources The base map itself, consisting of a detailed local street map and the parcel layer was provided by the Ventura County Public Works Agency. The labels for roads, districts and water features have been taken from a variety of maps including the Ventura County Public Works Agency’s master base sheet and from various road maps, U.S. Geological Survey quad maps and city plans. A number of the layers include information assembled by the Ventura County Planning Division. The software has a feature called regions that allows for a multi-tiered data base. Regions are large areas that can be used to help select the elements within them. For example, one set of regional polygons in the Ventura County data base are the greenbelts. 177 Hydrology of the area; surface streams, wetlands, washes and riparian zones are all based on USGS maps and have a resolution of 1:2400 so that any map printed at that scale up to 1:62,500 and beyond are going to be reasonably accurate. At scales of 1:1200 and smaller, the confidence level that a line on the map would be in the correct spot when transferred to the ground is about half as good as at its original scale (1:24,000). In many cases, the accuracy of the areas is relatively unimportant, for example in trying to gain a general idea of the percentage of farmland growing a particular crop. In other instances, for example, when trying to estimate the exact value of a parcel, the accuracy of the data is much more critical. The Source Table illustrates the source for each of the data layers so that each user can assess the confidence level of the data depending on what they are trying to learn or illustrate. Since each layer has its own map source, its important to take into account the accuracy of various layers when making decisions. Knowing the inherent level of inaccuracy in the various layers should allow the analyst to use the appropriate amount of caution when basing a decision on a map produced within the GIS. 178 The following Source Table describes the information used in the development of this initial version of The Ventura County Agricultural GIS: Source Table Type Source Scale Important Farmlands Individual City, County, FMMP mapping Water Course USGS Quads 1:24,000 1:48,000 Aerial Photo Mapping Roads USGS Quads Public Works Agency 1:24,000 Aerial Photo Mapping/County Public Works Lakes/Marshes USGS Quads Public Works Agency 1:24,000 Aerial Photos Political Boundaries USGS Quads 1:24,000 1:48,000 County Planning Division LAFCO Annexed Territory LAFCO Indiv. Cities Varies LAFCO, Indiv. Cities Ventura County Planning Wetlands and Riparian Habitat Ventura County Planning 1:24,000 Aerial Photos, Ground Surveys LCA Contract Maps Ventura County Planning 1:24,000 Ventura County Planning General Plan Land Use Ventura County Planning Division 1:24,000 Ventura County Planning Areas of Interest and Spheres of Interest LAFCO Varies Ventura County Planning and Indiv. Cities Zoning Ventura County Planning 1:24,000 Ventura County Planning Steep Slopes NRCS (formerly SCS) 1:100,000 Aerial Photos Roads USGS Quads Public Works Agency 1:24,000 Cal Trans Major Roads USGS Quads Public Works Agency 1:24,000 Cal Trans Geographic Names USGS Quads Public Works Agency 1:24,000 Public Works Agency Parcels USGS Quads Public Works Agency 1:24,000 Public Works Agency Varies based on USGS Quads Source of Original Data County Records Ag Commissioner, FMMP maps GIS Version 1.0 - Feb. 1996 179
© Copyright 2026 Paperzz