Growth in Ag Continues – Dark Clouds
over Next Year
By
Rick Elkins
Tulare County - Fears there might be a drop-off in Tulare County crop values last year were dashed this week when Agricultural Commissioner Gary Kunkel reported that the county's gross production value topped $5 billion for the first time.
Total crop value for 2008 was $5,018,022,800, an increase of 3 percent over 2007. The 2007 figure of $4,874,039,000 was a record and only the third time crop values exceeded $4 billion in Tulare County.
“It's better than expected,” said Kunkel, noting the drop-off in milk prices in late 2008. “I was surprised we were over $5 billion.”
A 2 percent increase in milk production and good prices earlier in the year offset the massive losses at the end of the year for dairymen. However, those losses continue and Kunkel admits next year's report could be very much different than the one for 2008.
“I would not expect 2009 to be as good a year – dairy prices are extremely low,” he cautioned.
Kunkel always likes to remind people that the crop report does not reflect the state of the ag industry. He acknowledges these are trying times for the industry, especially for the dairymen. The ag commissioner noted the values are gross figures and do not reflect net profit.
Still, the numbers for 2008 are indeed impressive. Overall, prices paid for ag commodities were up 3 percent over last year, which was a record year, led by a rebound in the value of oranges.
“It reflects the citrus industry recovering from the freeze of 2007,” noted the ag commissioner. In 2007, a devastating freeze wiped out much of the citrus crop and the recovery is reflected in a 58 percent increase in production and a 25 percent increase in the value of citrus – the county's No. 2 crop in terms of value.
Bob Blakely, California Citrus Mutual director of industry relations, said last year was a good year for citrus growers, both in terms of crop yield and prices.
“Last year was probably one
of the largest, if not the largest crop we've seen in California,”
he said, adding he was not surprised the value of the orange crop was
so high, especially since prices held up fairly well, considering such
a large crop.
And, it was not just a good year on paper. Blakely said more fruit went
to fresh markets than juice, meaning a higher return for the grower.
“I think when it's all said
and done, growers will have had a good year,” he said.
This year's crop appears to be normal – not light or heavy, he said.
However, it is the dairy industry that has the greatest impact on agriculture in Tulare County. In 2008, the value of milk was nearly $1.8 billion, down from $1.85 billion in 2007.
Cows in Tulare County produced a staggering
10.8 billion pounds of milk last year.
“It (milk) is always either a big winner or big loser,” noted
Kunkel. He said milk is getting close to a $2 billion commodity in Tulare
County and is 36 percent of the county's total commodity value.
“I don't know of any other single
commodity worth $1 billion anywhere,” he said.
And, it is not just milk. Four of the other top 10 crops are all related
to dairy – Cattle and Calves at No. 3, Alfalfa at No. 4, Corn at
No. 6 and Silage at No. 9. The value of those four commodities was more
than $1 billion. Another sign in the strength of dairy and dairy cows
– manure was the 39th highest valued crop at $2.8 million.
In fact, of the county's 45 million dollar commodities, nine are tied to the dairy industry.
Tulare County is the No. 1 milk producing county in the nation and nothing in 2008 will change that. The county reported 638,000 head of cattle and calves last year – up from 615,000 the year before.
There was a big jump in the value
of field crops – mainly dairy feed which, unfortunately has added
to the woes of dairymen. The value of all field crops was up 37 percent
last year, with prices for corn, alfalfa and silage all way up.
Fruit and nut crops also had a good year, although prices for most nut
crops dropped at the end of the year.
Even with the record value, Tulare County remains the No. 2 crop-producing county in the nation. Fresno County also reported an increase in crop values, topping $5.6 billion – a record for that county.
Surge in Some Crops
Good returns on pomegranates, pistachios and tangerines are all reflected in more acreage being devoted to those crops. Kunkel agreed that the number of non-bearing acreage for some crops shows young orchards that have been put in recently.
The crop report showed more than 9,000 acres of non-bearing pistachios, more than half of the acres that produced a crop in 2008. There were 1,350 non-bearing acres of pomegranates, compared to just 1,920 that did produce.
Tangerines are rapidly growing in popularity. The easy-to-peel, seedless citrus fruit moved into the top 10 crops in terms of value for the first time. The value of tangerines more than doubled last year – from $32.4 million to $86.3 million – and the number of acres harvested grew by more than 55 percent.
“We've seen a tremendous increase in acreage in mandarins (tangerines),” agreed Blakely. He said tangerines have been in popularity for a while “and now we're seeing those groves planted a few years ago beginning to produce. That's a trend that's going to continue for the next few years.”
Blueberries continue to grow in popularity – both for consumers and farmers. Kunkel said for a crop that did not even appear on the radar a few years ago, blueberries now rank 18th in value – worth $33 million last year. That crop ranked 23rd in 2007.
Silage, a food staple for cows, moved into the top 10 crops as well at No. 9 with a value of $82 million. There were 11,000 more acres of silage planted last year than in 2007. Wheat jumped from the No. 27 crop to No. 17 last year.
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