{"id":6718,"date":"2014-08-14T08:31:50","date_gmt":"2014-08-14T15:31:50","guid":{"rendered":"http:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/?p=6718"},"modified":"2014-08-14T08:31:50","modified_gmt":"2014-08-14T15:31:50","slug":"california-drought-transforms-global-food-market-bloomberg-news","status":"publish","type":"post","link":"https:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/index.php\/2014\/08\/14\/california-drought-transforms-global-food-market-bloomberg-news\/","title":{"rendered":"California drought transforms global food market – from Bloomberg News"},"content":{"rendered":"
\"From<\/a>

From Bloomberg News<\/p><\/div>\n

By Alan Bjerga<\/strong><\/p>\n

For more than 70 years, Fred Starrh\u2019s family was among the most prominent cotton growers in California\u2019s San Joaquin Valley. Then shifting global markets and rising water prices told him that wouldn\u2019t work anymore.<\/p>\n

So he replaced most of the cotton plants on his farm near Shafter, 120 miles northwest of Los Angeles, and planted almonds, which make more money per acre and are increasingly popular with consumers in\u00a0Asia<\/a>.<\/p>\n

\u201cYou can\u2019t pay $1,000 an\u00a0acre-foot<\/a>\u00a0to grow cotton,\u201d said Starrh, 85, crouching to inspect a drip irrigator gently gurgling under an almond tree.<\/p>\n

Such crop switching is one sign of a sweeping transformation going on in California — the nation\u2019s biggest agricultural state by value — driven by a three-year drought that climate scientists say is a glimpse of a drier future. The result will affect everything from the price of milk in\u00a0China<\/a>\u00a0to the source of cherries eaten by Americans. It has already inflamed competition for water between farmers and homeowners.<\/p>\n

Growers have adapted to the record-low rainfall by installing high-technology irrigation systems, watering with treated municipal wastewater and even recycling waste from the processing of pomegranates to feed dairy cows. Some are taking land out of production altogether, bulldozing withered orange trees and leaving hundreds of thousands of acres unplanted.<\/p>\n

There will be some definite changes, probably structural changes, to the entire industry\u201d as drought persists, said American Farm Bureau Federation President Bob Stallman. \u201cFarmers have made changes. They\u2019ve shifted. This is what farmers do.\u201d<\/p>\n

In the long term,\u00a0California<\/a>\u00a0will probably move away from commodity crops produced in bulk elsewhere to high-value products that make more money for the water used, said Richard Howitt, a farm economist at the University of California at Davis. The state still has advantages in almonds, pistachios and wine grapes, and its location means it will always be well-situated to export what can be profitably grown.<\/p>\n

That may mean less farmland in production as growers abandon corn and cotton because of the high cost of water. Corn acreage in California has dropped 34 percent from last year, and wheat is down 53 percent, according to the USDA.<\/p>\n

Cotton planting, Fred Starrh\u2019s one-time mainstay, has fallen 60 percent over the decade, while almonds are up by more than half.<\/p>\n

On its own, California would be the world\u2019s ninth-largest agricultural economy, according to a\u00a0University of California<\/a>\u00a0at Davis study. Shifts in its production reverberate globally, said Dan Sumner, another agricultural economist at the school.<\/p>\n

\u201cIt\u2019s a really big deal,\u201d Sumner said. \u201cSome crops simply grow better here than anyplace else, and our location gives us access to markets you don\u2019t have elsewhere.\u201d<\/p>\n

The success of California agriculture was built in large part on advances in irrigation that allowed the state to expand beyond wheat, which flourishes in dry climates. It\u2019s now the U.S.\u2019s top dairy producer and grows half the country\u2019s fruits, vegetables and nuts.<\/p>\n

\u201cWater has allowed us to grow more valuable crops,\u201d Sumner said. \u201cNow, we have fruits and vegetables and\u00a0North Dakota<\/a>\u00a0grows our wheat. Without irrigation, we\u2019d be North Dakota.\u201d<\/p>\n

An estimated 82 percent of California is experiencing extreme drought, according to the U.S. Drought Monitor. Agriculture has been hard hit as it consumes about four-fifths of the water that isn\u2019t set aside for environmental preservation. Some farmers are paying as much as 10 times more for water than what it cost before the drought.<\/p>\n

Another dry year in 2015 is a strong possibility, according to a study by the University of California at Davis released last month. The same study pegs drought-related farm losses at $1.5 billion, with 17,100 jobs lost statewide.<\/p>\n

Groups such as the California Citrus Mutual and California Farm Bureau Federation have been calling for bigger allocations from the state\u2019s watersheds for agriculture, asking the state to add storage capacity and ease environmental regulations that set aside water to preserve endangered species.<\/p>\n

California Governor\u00a0Jerry Brown<\/a>\u00a0last week called for a $6 billion \u201cno frills\u201d bond measure for this November\u2019s election to boost water storage, a key demand of farmers that\u2019s smaller than what some groups want.<\/p>\n

That puts the farmers on a collision course with environmentalists and urban advocates who say some choices — such as a switch to almonds — could worsen the scarcity.<\/p>\n

California grows four-fifths of the world\u2019s almonds, much of it for overseas markets. That has pushed the price up to more than $3 a pound, a record that has encouraged farmers to divert water from other crops.<\/p>\n

Almonds use enough water to supply 75 percent of the state\u2019s population, according to Carolee Krieger, president and executive director of the California Water Impact Network, which supports bigger supplies for cities. Much of the crop is exported, meaning it isn\u2019t even feeding Californians, she said.<\/p>\n

\u201cFarmers should be profitable, but it can\u2019t come at the expense of urban water ratepayers,\u201d she said.<\/p>\n

The U.S. Interior Department\u2019s Bureau of Reclamation, which supplies water to a third of the state\u2019s irrigated farmland, cut off California water distribution to some areas, while leaving others with 75 percent or less of their normal allocation.<\/p>\n

Shawn Stevenson, who grows 1,200 acres of orange and olive trees outside Fresno, is in a zero-allocation area.<\/p>\n

Unable to obtain affordable water for his trees, he hired a bulldozer to uproot about 400 acres of orange trees. He called his farm the \u201ccanary in the\u00a0coal mine<\/a>\u201d for California agriculture, part of the 500,000 acres being abandoned this year, according to the University of California at Davis.<\/p>\n

\u201cWe\u2019re going to deliver 25 percent of our volume this year,\u201d Stevenson said over the crunch of bulldozed branches. \u201cThat impacts the packing house, the people who sell the fruit, the people that we buy pesticides and fertilizers from.\u201d<\/p>\n

\u201cIf this persists in the next year, the devastation we will see here and across the state will be biblical.\u201d<\/p>\n

Faced with chronic dryness, farmers have been figuring out ways to adapt. Starrh\u2019s drip-irrigation system was pioneered in\u00a0Israel<\/a>\u00a0and is now widely employed across California, cutting water use by supplying plants with smaller, targeted amounts.<\/p>\n

\u201cFarmers have done a remarkable job, scrambling around to get every piece of water they can,\u201d Sumner, the University of California economist, said. \u201cThey\u2019ve taken water out of rice, out of alfalfa and moved it into onions and carrots and kept the trees and vines alive.\u201d<\/p>\n

Will Terry grows peppers\u00a0and strawberries<\/a>\u00a0in Ventura County, a region 60 miles west of\u00a0Los Angeles<\/a>\u00a0that produces about $700 million of the fruit annually. The farm he runs with his father now uses about two-thirds of the water it used 20 years ago.<\/p>\n

\u201cPeople will try to grow the same things, but they\u2019ll have to change how they do it,\u201d said Terry as workers draped string across fields with which to hold up pepper plants.<\/p>\n

Brad Scott, a dairy producer near Riverside in the Los Angeles suburbs, supplies his farm with treated municipal wastewater. The chlorine makes his ranch smell a bit like a swimming pool, but it has allowed his property to disconnect from the city water supply.<\/p>\n

The disruption is worthwhile: Dairy prices reached an all-time high of $24.31 per hundred pound in April as export demand pushed dry-milk shipments to a record.<\/p>\n

he drought has put special pressure on ranchers raising livestock, drying out pasture land and making it more costly to cool the herd by spraying the animals with water.<\/p>\n

Brian Medeiros, a 26-year-old dairyman near Hanford, about 30 miles south of Fresno, is replacing the fields of corn and wheat he grows to feed his cows with sorghum and triticale, a heartier wheat and rye hybrid better suited for drought.<\/p>\n

Medeiros drives past a shed containing almond hulls and distillers\u2019 dried grains — the byproduct of ethanol and brewery production — and citrus pulp, all of which he buys from nearby vendors to feed his cows. Leftover pomegranate has been a herd mainstay, though less so as the consumer craze for anti-oxidants has faded, reducing the number of suppliers.<\/p>\n

He\u2019s also working with an engineer to create a cow-motion sensor. The system, deployed in his animal stalls, would change how animals are sprayed with water to keep them cool, ensuring that water only sprays while a cow is present.<\/p>\n

\u201cYou have to look at everything,\u201d Medeiros said between conversations in Portuguese with his father, who founded the farm, on his mobile phone.<\/p>\n

A warmer climate is forcing Cindy Lashbrook to phase out cherries on the organic farm where she also grows walnuts, blueberries and other fruits and tree nuts near Merced, about 100 miles southeast of\u00a0San Francisco<\/a>.<\/p>\n

Her cherries require 1,000 hours of temperatures under 45 degrees (7 degrees Celsius) between November and February, an amount her farm hasn\u2019t seen for several years. \u201cWe don\u2019t get the fog like we used to.\u201d<\/p>\n

Howitt, of the University of California, said the drought means the state\u2019s farmers will have to permanently reduce water usage.<\/p>\n

\u201cCalifornia needs to rebalance its agricultural portfolio in response to this drought,\u201d Howitt said. \u201cYou will see more fallowing of land. We have to reduce our water footprint.\u201d<\/p>\n

That means drip-fed trees for Starrh, a cotton-grower since when his family arrived on 30 acres in 1936 who now focuses on nuts.<\/p>\n

And solar panels.<\/p>\n

The Starrhs are leasing 480 acres to a sustainable-energy company on land that may never be watered again.<\/p>\n

\u201cIt was good land for production,\u201d he said. \u201cBut reality dictates.\u201d<\/p>\n

Link to story<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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