CIRS Blog about Rural California
WASHINGTON — The political terrain appears favorable for a mega-million-dollar irrigation drainage deal, with Congress still fully in Republican hands and California’s sprawling Westlands Water District with influential allies.
But there are complications. One is a legal cloud over a neighboring water district. The other comes with the state’s two Democratic senators, who remain uncommitted.
Legislation putting the drainage deal into effect could be introduced at any time.
“I think I have the support of leadership,” Rep. David Valadao, R-Hanford, said in an interview.
But with that legislation will come a Capitol Hill fight.
WASHINGTON —California Republican Rep. David Valadao of Hanford is pushing for an immigration overhaul, placing himself in the middle of the very issue that’s ripping both parties apart.
Through public statements, legislation and now an earnestly worded plea to President Donald Trump, Valadao has positioned himself as one of the few congressional Republicans daring to support a comprehensive package that includes a pathway to legal status for immigrants who are already in this country illegally.
“For too long, extremes on either side of the aisle have discouraged constructive discussion regarding immigration,” Valadao said in the two-page letter sent to Trump on Tuesday, “but I believe with new executive leadership, now is the time to enact meaningful reform.”
California's farm sales fell from $54 billion in 2014 to $47 billion in 2015, largely because of the declining price of milk, whose value fell from $9.4 billion to $6.3 billion. The value of almonds fell by $0.5 billion, and the value of walnuts by almost $1 billion.
However, farmers are continue to plant more nuts. Bearing almond acreage has more than doubled from 418,000 acres in 1995 to 900,000 in 2016, and yields rose even faster from 370 million pounds to over two billion pounds. Walnut acreage rose from 177,000 in 1988 to 315,000 in 2016, and production more than doubled to 670,000 tons. California has 310,000 acres of pistachios expected to generate 555 million pounds in 2016.
Most nut farmers generate profits of $1,000 to $2,000 an acre, with pistachios the most profitable nut crop.
More acres of nuts are expected to come into production, including 220,000 acres of almonds, 70,000 acres of pistachios, and 65,000 acres of walnuts. The cost of establishing an acre of walnuts is estimated to be $3,800, an acre of almonds $2,300, and an acre of pistachios $1,900. Much of the new nut acreage is being developed by pension and hedge funds seeking current returns and capital gains as land prices rise.
California enacted a law in 2016 (SB 3) raising the minimum wage from $10 to $15 an hour by 2022 and requiring farmers to pay 8/40 overtime (AB 1066), that is, 1.5 times normal wages after eight hours a day and 40 hours a week by 2022 (employers with 25 or fewer employees have extra time to comply). The state's minimum wage went to $10.50 an hour on January 1, 2017.
Western Growers surveyed its members in November 2016, and 150 growers reported that they plan to increase mechanization (77 percent) and reduce production of labor-intensive crops in California (33 percent), including 60 growers who hired fewer than 100 workers at peak.
Responding growers reported that their employees worked an average 9.6 hours a day and 56 hours a week at $12.40 an hour, suggesting 5.5 day workweeks. Instead of paying overtime wages, most farms said they will reduce hours to 8/40, so that workers would be employed 16 fewer hours a week. A third of respondents said they would reduce benefits provided to farmworkers because of higher minimum wages and 8/40 overtime by having employees contribute more for heath insurance or reduce employer 401K and retirement contributions.