UC Blog
Fuel prices cut deeply into ag profit
Fuel prices have settled down a little bit since their record highs in the middle of last summer, but farmers are just now tallying up the damage. The first half of a Stockton Record story about the impact of the fuel price surge focused on producers of processing tomatoes. Tomato farmers typically negotiate a fixed price for their crop in late winter to help them secure loans and make planting plans, according to the Record's story. Tomato farmers won a record cannery price of $70 a ton in January, up $7 a ton from the year before.
"When the contract price was negotiated, everybody felt pretty good about it," the story quoted UC Cooperative Extension farm advisor Brenna Aegerter. "It seems like ... in retrospect, they probably should have held out for more."
The article said that UCCE cost studies found that total cash costs for producing an acre of processing tomatoes rose to $2,440 this year, an increase of more than $300 from 2007 mostly due to higher fertilizer and fuel costs.
The increasing fuel costs pushed up the price of all inputs related to petroleum, such as diesel, tractor tires, oil and fertilizer. The story said farmer Joe Ratto was satisfied when the $70 a ton contract price was settled, but the rising costs slice deep into that return.
"If we don't get a real decent yield, ... we're going to lose money," Ratto was quoted.
The Stockton Record story also appeared on Macro World Investor.
Food safety program remains unfunded
While the news has been replete with talk about large sums of government money in the last week or so, one UC program considered vitally important by the American Veterinary Medical Association is closing its doors because it couldn't get a cash infusion from the federal government.
AVMA issued a news release yesterday lamenting the impending closure of the Food Animal Residue Avoidance Databank (FARAD), administered by the USDA’s Cooperative State Research, Education, and Extension Service and operating out of North Carolina State University, the University of Florida and UC Davis. The Wall Street Journal's Market Watch Web site ran the release.
FARAD needs $2.5 million per year to continue its work. AVMA's release included indignant commentary about the amount in folksy language we're hearing more often from people frustrated with Washington insiders.
"Really, that’s all it needed… less than a penny per American to help make sure that drugs and pesticides don’t end up in our food. A penny per American, folks. That’s it."
The release said AVMA worked with Congress to have the $2.5 million for FARAD inserted in this year's Farm Bill.
"Unfortunately, the USDA never incorporated the funding in its budget, and Congress has provided neither emergency funding, nor passed the agriculture appropriations bill that could have funded the program. Oh and, FDA hasn’t coughed up any pennies either."
AVMA encouraged the public to contact USDA to request FARAD funding be reinstated.
Elusive, endangered mammal at center of forest debate
Pacific fishers are at the center of a conundrum. Most people have never seen them, but judging from photos of researchers cuddling the furry creatures, they are adorable. The nocturnal and obsessively shy fisher is related to the mink, otter and marten. They once ranged from British Columbia down through California's Sierra Nevada, but only two native populations remain today -- one around the western California/Oregon border, and one in the southern Sierra Nevada Mountains, according to the Environmental Protection Information Center.
Fishers' preferred home in dead trees and their tendency to move around put them at odds with fire prevention goals, according to a story last week in the Sierra Star. The article was based on a community meeting held by a group of scientists who are working together to protect wildlife and promote forest health. The scientists have formed the Sierra Nevada Adaptive Management Plan (SNAMP).
The event, covered by reporter Jill Brackett, was intended to collect community input on management of the local forest and wildlife.
"It's your meeting," the story quoted Kim Rodrigues, the director of UC Agriculture and Natural Resource's North Coast and Mountain Region whose academic specialty is forestry. "The ultimate purpose is collaboration. You are embarking on this with us."
The story said SNAMP is in the early stages of their "adaptive management loop," and that no decisions were made at the meeting. A follow-up discussion was proposed for October.
Researchers hold Pacific fishers
Consider every eventuality before planting vineyard
Sacramento Bee food editor and restaurant critic Mike Dunne devoted two columns in a row to the sad saga of winegrape grower Harmon Overmire. After retiring from the aerospace industry, Overmire planted four acres of Malbec wine grapes in Sheldon, Calif. A somewhat uncommon winegrape variety, Malbec creates an inky red wine with plum-like flavor and is often used for blending, according to the Malbec entry on Wikipedia.
Overmire's sorrow, according to Dunne's first column (published Sept. 24), springs from the inability to find a buyer for his crop. "I haven't found a soul. No one was even interested, and the grapes are ready to pick right now," Overmire was quoted. "I would just like to break even."
In today's column, Dunne looks to a UC Cooperative Extension expert for perspective on Overmire's plight. He spoke to Lynn Wunderlich, the viticulture farm advisor for El Dorado and Amador counties. Growing and making wine is probably one of the more romantic pursuits for whiling away an active retirement. But Wunderlich warns, "If they need to make money at it, think again."
According to Dunne, Wunderlich suggests would-be winegrape farmers must be serious about growing quality fruit. She urged farmers to join the local grape-growers association and to network with winemakers.
And all this should be done early. "Harvest time isn't the best time to sell," Wunderlick told Dunne.
Overall, Dunne said, Wunderlick is upbeat about prospects for new winegrape growers.
"There are still opportunities for growth, but it needs to be well thought out," she was quoted.
A cluster of Malbec winegrapes.
Debate over Prop. 2 continues in earnest
An article in the San Diego Union Tribune over the weekend presented both sides of the debate over Proposition 2, the initiative on the November ballot that, if passed, will set new standards for farm animal confinement.
The story implied that UC Riverside poultry specialist emeritus Don Bell is an "opponent of the measure" when it followed a statement about concerns that Prop 2 will increase food prices with his quote.
According to the story, Bell said:
“Pennies, nickels, dimes and dollars add up as today's prices for everything (increase) – not just eggs and not just food. Unjustifiable cost increases are a luxury we simply can't impose upon the public in today's troubled economy.”
The story included a wide variety of viewpoints on the measure:
“It will put us out of business.” - Ryan Armstrong, Valley Center farmer
"It would be a bad idea.” - Nancy Reimers, Gustine veterinarian
“These animals are sacrificed for the benefit of people. The least we owe them is to treat them humanely.” - Wayne Pacelle, president of the Humane Society of the United States
“If anybody who buys eggs went to one of those factories, you would have a hard time convincing them to keep buying those eggs.” - Nigel Walker, Dixon farmer
"'Battery' cages are certainly promoting suffering." - Ixchel Mosley, Eastlake veterinarian
“This is not a trivial effect for the individual farmer, to the allied businesses associated with egg production and to the egg-consuming public." - Don Bell
“The most likely outcome . . . is the elimination of almost all of the California egg industry over a very few years.” - Dan Sumner, director of the UC Agricultural Issues Center