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12 years ago · by · 0 comments

California drought: Jobs, money dry up in farm towns

Scurich Insurance Services, CA, DroughtJose Pineda Rivas could use the cash. He’s got rent to pay, and his tooth hurts so badly he needs to see a dentist.

But these days, money for fieldworkers like Rivas in this drought-parched stretch of California is about as scarce as rain. And the situation is likely to get worse before it gets better.

The 61-year-old farmhand, who lives in a small home with his wife and a friend’s family, is hardly making enough to cover basic expenses, let alone pricey dental work. He thinks he can afford to get his aching tooth removed, he said. But actually replace it?

Not a chance.

As he tipped back his straw hat and morosely gazed at his flip phone on a recent day, Rivas explained that the crew boss at a nearby tomato farm was supposed to contact him about returning to work. But the call hadn’t come.

It’s the same desperate story all over the Central Valley.

Like many fieldworkers in Mendota, a rural community 35 miles west of Fresno dubbed the Cantaloupe Center of the World, Rivas finds his seasonal job of more than two decades at risk of disappearing because of the statewide drought.

Drought leaves field barren

Fields that normally come to life by April with the planting of tomatoes and melons have been left barren due to insufficient water. And that means less farm work to go around.

“Usually this time of year, we’ll all be going out and weeding and laying irrigation line,” Rivas said in Spanish. “None of that work has happened, and who knows when it will?”

A near-record dry winter has put California in the grip of its worst drought in decades. While many parts of the state have yet to feel any real impact – no cutbacks, no stiff rationing – that’s not the case in the farm towns of the San Joaquin Valley, where water is the touchstone of the economy and underpins the region’s standing as the most agriculturally productive in the nation.

About 20,000 farm jobs statewide stand to be lost this year out of 400,000, the bulk of them in the valley, said Jeffrey Michael, director of the Business Forecasting Center at the University of the Pacific in Stockton.

The estimate does not include thousands of additional jobs supporting agriculture: the truck drivers, packers and processors, as well as the merchants, real estate agents and teachers serving these farm communities.

“We know that this year unemployment is going to be significantly worse than it’s been in a long time,” said Michael, whose job loss projections are based on the amount of farmland likely to be fallowed.

The lost work, he added, will only compound hardship that bedevils many valley towns where unemployment rates consistently rank among the highest in the state.

In Mendota, where about half of the 11,000 residents are in families living below the federal poverty line, the jobless rate stood at 37 percent as of the last count in March, according to state data.

The mayor of Mendota suggested that unemployment could hit 50 percent by summer as the effects of the drought fully play out – a level higher than what was seen during the recent recession.

Read the entire article here.

Content provided by http://www.sfgate.com/news/article/California-drought-Jobs-money-dry-up-in-farm-5431129.php

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12 years ago · by · 0 comments

Study: Strawberries boost CA economy by $3.4 billon

Scurich Insurance Services, CA, StrawberriesStrawberry Commission looks at positive impact of Santa Cruz County’s No. 1 crop.

Watsonville >> California strawberries employ 70,000 people and contribute $3.4 billion to the state’s economy each year.

That’s according to “Sustaining California Communities,” an economic report released Tuesday by the California Strawberry Commission.

The report comes as the harvest of Santa Cruz County’s premier crop begins. More than 240,000 pounds were picked in the Watsonville-Salinas region during the week that ended March 15.

“We want people to understand it’s not just the farmers and their crews out there,” said commission spokeswoman Carolyn O’Donnell. “The community is important to farmers, and farmers also realize it’s important how they integrate with the community.”

Nearly 90 percent of U.S.-grown strawberries come from California. Watsonville-Salinas is the top producer among the state’s four strawberry regions, accounting for 47 percent of the total harvest of nearly 1.8 billion pounds in 2013, according to commission statistics.

The industry spends about $2 billion on wages, equipment and supplies, land and taxes, the report says. It generates another $1.4 billion indirectly through, for example, the restaurants and grocery stores that cater to agricultural workers and the police and teachers funded by the estimated $108 million the industry pays in taxes.

And it’s not just the berry-producing counties on the Central Coast and Southern California. Nurseries in the northern part of the state produce 2 billion plants for transplant in the strawberry fields.

The industry is labor-intensive, requiring a large pool of workers to handpick berries. But mechanics, researchers, educators and forklift drivers are among the thousands who work in berry-related jobs.

The report doesn’t assess costs associated with the industry, such as subsidized housing for low-wage workers. O’Donnell said that would require a more comprehensive and expensive report. But she pointed to the industry’s charitable giving. The report notes as an example, the $2 million in scholarships awarded by the commission to the children of farmworkers since 1994.

Read the entire article here.

Content provided by http://www.santacruzsentinel.com/watsonville/ci_25370176/study-strawberries-boost-ca-economy-by-3-4

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12 years ago · by · 0 comments

Private Crop Insurers Win As Taxpayers Lose in New Farm Program, Say Critics

Scurich Insurance Services, CA, Crop insuranceU.S. farmers last week finalized their crop insurance plans for spring planting with critics of the government-subsidized program saying insurers are set up for a bonanza after passage of the new five-year farm bill last month.

Farmers who sign up for crop insurance by March 15 won’t, in fact, enjoy the enhanced subsidies of the new federal law, which go into effect with the 2015 crop year. But grain farmers in 2014 will still see up to two-thirds of their insurance premiums paid for by the government. Private insurance companies will also still benefit from the government as their “reinsurer,” an arrangement critics say limits their losses while boosting underwriting gains. With the new farm bill, the government’s largesse gets even bigger next year. “I think taxpayers lost on that farm bill for sure. There was lots of money that could have been saved to reduce the deficit, but they chose not to,” said Bruce Babcock, an agricultural economist at Iowa State University who has studied crop insurance for more than a decade. “The industry lobbies heavily,” Babcock told Reuters. “It’s just rub my back, I’ll rub yours.” A new farm bill was held up for more than a year by wrangling over cuts in food stamps and subsidized programs for the poor. Backers also touted cuts in direct payments to farmers estimated by the Congressional Budget Office (CBO) at $40 billion over 10 years. But 80 percent of those savings—some $33 billion, according to CBO data—reappear in the new farm bill as “enhanced” crop insurance, reformers say. “The crop insurance program survived essentially unscathed in this farm bill,” said Craig Cox of the Environmental Working Group, which sees U.S. farm policies as wasteful to taxpayers. “This was the first farm bill where there was a lot of attention paid to trying to reform the crop insurance program. None of those reforms made it into the final bill.” Crop insurers, on the other hand, praised the new law. “For the taxpayer, it eliminated direct payments and reduced some of the price support policies of the past in favor of expanding crop insurance, which is purchased by farmers on an individual basis,” David Graves, president of the American Crop Insurance Association, said in a written response to questions. “For crop insurance companies, the farm bill underscored the fact that crop insurance is the top risk management tool for America’s farmers and ranchers.” Read the entire article here.

Content provided by:  http://www.insurancejournal.com/news/national/2014/03/17/323445.htm

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12 years ago · by · 0 comments

Second Saturday on the Farm

Scurich Insurance Services, CA, Farm EquipmentOur next Second Saturday On The Farm is on Saturday, March 8, 11 am – 3 pm at the Santa Cruz County Fairgrounds, Highway 152 outside Watsonville.  This event is FREE! Donations appreciated. Bring your whole neighborhood to participate!

This Second Saturday on the Farm features a scheduled talk on how robots are used in the agriculture industry in Santa Cruz County and around the world, plus LEGO building, robotic car races, programming, drawing a robot, competing sumo robots, hayrides, movies, practice cow milking, and other activities for children.

11:00 am – 3:00 pm:  LEGO building, Robotic car races, Programming a BeeBot robot, drawing a robot, Sumo robotics, and other fun activities for children.

1:00 pm – 1:30 pm:  Learn to Discover, an educational nonprofit organization, will be discussing Robots in the Agriculture Industry.

Ongoing:  Our popular tractor driving, practice cow milking, water pumping, and other fun activities for kids.

Brian and Shelly Laschkewitsch from Learn to Discover will be facilitating many of the fun learning activities about robotics at this event.

Learn to Discover is a 501 c(3) nonprofit that designs, develops and delivers high-quality, hands-on STEAM (Science, Technology, Engineering, Art & Math) courses and activities to kids from pre-school through high-school.

Content provided by http://www.aghistoryproject.org/event/second-saturday-farm-robotics-agriculture/

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12 years ago · by · 0 comments

California’s Drought: A Shocking Photo And Other Updates

Scurich Insurance Services, CA, DroughtFarmers in California, where Gov. Jerry Brown declared a state of emergency last month, are facing hard choices as a drought threatens to ruin their crops. They must weigh the costs of paying for irrigation against the chance that their fields will never get enough water this season.

A striking picture illustrates the severity of the situation, as Northern California’s Folsom Lake, a reservoir northeast of Sacramento, is seen in January at only 17 percent of its capacity. In July 2011, “the lake was at 97 percent of total capacity and 130 percent of its historical average for that date,” according to NASA.

The federal agency says it is working with the California Department of Water Resources to help the state manage its water resources. Last month, NASA released other images showing the drought’s severity. As NPR member station KQED reported, the state’s snowpack is shown in January 2013 and last month. Much of it did not return.

Here are other updates on the situation:

NASA said today that it’s working to share satellite and weather data with California farmers and water officials to help them avoid wasting water, and to use it in the most efficient way possible. The space agency says a trial run of its Satellite Irrigation Management Support system in 2012 and 2013 “demonstrated sustained yields while reducing the amount of water used by up to 33 percent relative to standard practice.”

Growers of almonds — a state crop valued at $5 billion in 2012 — have been pulling trees out of the ground while they’re still in their prime, in desperate actions driven by high water costs. The AP spoke to a grower who watched crews rip 20 percent of his orchard out of the ground. A man who does that work for a living says business is up 75 percent because of the drought, and his crews are working from sunup to sundown.

Forecasts of rain and snow were welcomed by many Californians, as parts of the state could see more rain this week than they’ve had in the previous eight months together. But Time’s Bryan Walsh warns that even with that rainfall, “much of California will still be below average for precipitation this month. Since February tends to be the wettest month for California, that means that the state still has a larger and larger rainfall deficit to make up if this drought is to ever end.”

Contact Scurich Insurance Services today to get a review of your agriculture insurance.

Content provided by http://www.npr.org/blogs/thetwo-way/2014/02/25/282624536/california-s-drought-a-shocking-photo-and-other-updates

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12 years ago · by · 0 comments

California Drought Causing Early Wildfire Risk

Scurich Insurance Services, CA, California DroughtCalifornia’s worst drought in decades is feeding what may become a devastating wildfire season, one that is starting about five months early.

Extremely dry conditions have sparked 487 wildfires so far in 2014, compared with only 2 for the same period a year ago, according to the state Forestry and Fire Protection Department, known as Cal Fire. Potential power failures, home losses, lost tourism dollars and crop damage could jeopardize the world’s 10th largest economy as California struggles to emerge from the deepest recession since the 1930s.

“Having this occur statewide is unprecedented, certainly in my career,” Cal Fire Director Ken Pimlott, who started out as a firefighter almost 30 years ago, said in a telephone interview last week. “We anticipate the potential for a very long and sustained fire season throughout the rest of the year.”

For a state already reeling from a drought that officials say could be one of the worst in California’s history, fires would only add to the misery. They could damage critical power lines and cause blackouts, disrupt water supplies and destroy sensitive ecosystems, said Bill Stewart, a forestry specialist at the University of California at Berkeley.

Last year, prolonged dry conditions led to the third- largest fire in California’s history. The “Rim Fire” shut power lines and hydroelectric generators, charred parts of Yosemite National Park and threatened the Hetch Hetchy Reservoir watershed, which supplies 85 percent of the drinking water to San Francisco.

‘Poster Child’

The Rim Fire has become the “poster child” for future wildfires in California and the U.S. West, according to a 2013 report from CoreLogic Inc., a real estate data and analytics firm. Homes valued at about $78 billion in total are at risk from wildfires, estimates CoreLogic.

Fires could even pose a risk for the state’s $22 billion wine industry. In 2008, smoke from smoldering wildfires in Mendocino County contaminated crops of pinot noir grapes, said Bill Pauli, a grower and general partner of Yokayo Wine Company in Ukiah, California.

“Some wines had the odor of someone who had been standing next to a barbecue,” Pauli said in a telephone interview. “It was not a good situation and we all hope it doesn’t happen again.”

Extra Firefighters

Fire season usually begins around May and typically ends in November with the onset of winter storms, according to Cal Fire. This year, the department says it has hired 125 additional firefighters, staffed 25 extra fire engines and retained crews and aircraft that would normally be idle this time of year. The state has banned campfires and smoking in several parks.

“Right now, all of our planning is for the worst-case scenario,” said Pimlott of Cal Fire. “We want to make sure we are ready.”

The wildfire danger is of more concern to Los Angeles Mayor Eric Garcetti than the prospect of running out of water because of the drought, he said during an interview at Bloomberg News’s Los Angeles office.

“I think we are going to see fire season around the clock for much of the year,” Garcetti said. “We are going to have to keep deployments much higher.”

The city expects to spend an extra $12 million this year on fire department coverage due to the dry conditions, Garcetti said.

Transmission Lines

At the same time, utilities including PG&E Corp. and Sempra Energy’s San Diego Gas & Electric are implementing plans normally reserved for high-fire season, such as stepping up patrols of electrical lines and bringing fire crews along for routine repairs.

“Wildfires are always a risk in California,” said Alvin Thoma, director of power generation at San Francisco-based PG&E. “With the dry conditions we’ve had, the soil moisture content right now is much lower than usual, so that makes wildfires much more of a concern.”

The California ISO, the state grid operator, said it will keep an “eagle eye” on high-voltage transmission lines, which will be needed to import more power this summer to make up for dwindling hydro-electric supplies and the retirement of a 2,200- megawatt nuclear plant in Southern California. The state typically imports one-quarter of its power needs, according to the ISO.

“The wild card is always fires,” said Stephanie McCorkle, a spokeswoman for California ISO. “They can affect the transmission and that literally cuts imports that we can’t afford to lose.”

Extra Vigilant

If lines go down, the grid operator can reroute electricity and ramp up local generation production, McCorkle said.

Edison International’s Southern California Edison utility, owner of the San Onofre nuclear plant that was retired last year, will need to be extra vigilant if the dry conditions continue, said Chairman and Chief Executive Officer Ted Craver.

“You can’t say there wouldn’t be some combination of events, a heat storm and a fire that takes out a transmission line,” Craver said in a telephone interview.

Upgrades to power networks and new gas generation that has come online in the past two years will help “the grid to be able to withstand the shocks,” Craver said.

Although rainstorms in the past week have provided some respite, the odds are that the drought will persist along with the risk of more wildfires, according to Cal Fire.

“Everybody is probably sitting back on pins and needles,” said Thomas Jeffery, a senior hazard scientist at CoreLogic. “The potential for a really disastrous wildfire season is very high.”

Content provided by http://www.claimsjournal.com/news/west/2014/02/11/244295.htm

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