Ag Harvest Tab 2015

HARVEST WEDNESDAY, OCTOBER 21, 2015

AG HARVEST 2015

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AG HARVEST 2015

AG HARVEST C O N T E N T S Stanislaus County top crops �����������������������������������������4 Local grower Matthew Staack �������������������������������������6 Greener almonds.......................................................................7 Ag Link.................................................................................................8 Dairy industry impact.........................................................10 Milk pricing...................................................................................11 U.S. farm income....................................................................12 Drought report.........................................................................13 Specialty crop funding.....................................................14 Trans Pacific Partnership..............................................15

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AG HARVEST 2015

Crop report reveals historic boost for ag commodities Almonds beat out dairy once again for top crop

BY ALYSSON AREDAS Turlock Journal

Stanislaus County agricultural producers not only managed to pull through another year of drought conditions in 2014 with a record-breaking year for agricultural commodities, but county growers also generated the greatest one-year value increase in the history of the Stanislaus County Agricultural Crop Report.

“The production values went up overall by $734 million from 2013, which is quite large,” said Agricultural Commissioner Milton O’Haire. “That’s almost equivalent to our entire crop report back in 1981, which was $743 million.”

According to the 2014 Stanislaus County Agricultural Crop Report, which was released Tuesday, last year managed to surpass 2013 numbers by $734 million, or 20 percent, with an overall $4.4 billion value of agricultural commodities.

This increase is primarily a result of the significant rise in the value of almond meats, cattle and calves, milk production, turkeys, silage and walnuts. Almond meats saw an increase of $224 million, followed by cattle and calves with $156 million and milk with $148 million.

“Those are some outstanding numbers,” said O’Haire. “Much of this credit goes to the industry for a lot of hard work and sacrifice, in spite of the drought.”

However, agricultural producers in 2014 were not able to escape drought conditions entirely with forced fallowing that led to more than 13,000 fewer harvested acres, most of which were vegetable and silage crops on the west side of the county, according to the report.

The 2014 report also marks the second time that the almond industry has achieved the number one commodity spot after overthrowing the dairy business and earning the title as the county’s first $1 billion dollar crop in 2013. In 2014, almonds had an overall value of $1.4 billion.

“This year we combined the almond meat, hulls and shells in the top 10 commodities, but even without that they would still be number one by far,” said O’Haire. “Almond meats alone increased by $224 million.”

Cattle and calves surpassed walnuts to secure the number three commodity crop at $392 million, a $156 million increase

Those are some outstanding numbers.

Much of this credit goes to the industry for a lot of hard work and sacrifice, in spite of the drought.

— Agricultural Commissioner Milton O’Haire

from 2013 numbers. Additionally, turkeys, which did not even make the 2013 top 10 commodity list, bumped up nine spots onto this year’s list with a value at $100 million.

The Stanislaus County Agricultural Crop Report is a yearly account of the region’s agricultural production data. Compiled from a myriad of sources, the report incorporates data that has been accumulated from surveys filled out by producers, associations, and water districts.

To view the 2014 Stanislaus County Agricultural Crop Report, visit stanag. org/crop-reports.shtm.

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AG HARVEST 2015 TOP 10 COMMODITIES 2014 #1 Almonds — $1.4 billion #2 Milk — $952 million #3 Cattle & Calves — $392 million #4 Walnuts — $299 million #5 Chickens — $252 million #6 Silage — $206 million #7 Turkeys — $100 million #8 Deciduous Fruit & Nut Nursery — $94 million #9 Eggs, Chicken Market — $60 million #10 Pollination, Almond — $59 million

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AG HARVEST 2015

Turlock almond farmer happy he didn't listen to his father's advice

BY NATALIE WINTERS Turlock Journal

Matthew Staack is a third generation almond farmer that harvests the same ground he grew up on.

“Knowing the area and the people makes what I do that much better,” said Staack. “It’s the kind of job you never get tired of.”

In 2014, almonds were Stanislaus County's top agricultural commodity, bringing in an overall value of $1.4 billion. Almonds came in at number two in California top crops in 2014, valued at $5.9 billion. The production of almonds in the Central Valley is vital to the success of not only the region, but the entire state.

“It’s awesome to be part of something like that,” said Staack. “California is more advanced in technology; 10 years ago it was all stop and go with harvesters and now a harvester doesn’t stop.”

The busiest months of the year for an almond farmer usually range from the beginning of August into the first couple weeks of November.

“It all depends on the rain,” said Staack. “This year we started at the end of July and finished up (the first week of October).”

Although California is entering its fourth year of the drought, Staack explained that this season had a week delay due to rain.

“We need the rain, no doubt—but timing is everything,” said Staack. “We got more rain than expected during harvest and if the growers leave the nuts on the ground we have to wait for them to dry out.”

A typical day during harvest starts before sunrise and ends when the day’s work is done—often times hours into the night.

“By 5:30 a.m. everything is loaded up, we’re at the orchard by 7 with the

machines serviced and ready to go, picking up by 7:15… it’s a process,” said Staack. “We work as long as it takes, depending on the size of the orchard, and it’s really the grower’s choice.”

Three harvesters, three sweepers and a tree shaker is Staack’s everyday recipe for a busy day on the job.

“There isn’t really an off season, but it’s less hectic the day harvest ends until the day it begins,” said Staack. “We’re still maintaining the orchards… spraying the ground, planting trees, putting fertilizer on them and keeping the orchard as clean as possible.”

This is all done for roughly 15 orchards that Staack tends to. Growing up he said that his father told him not to be a farmer; that he could do whatever he wanted.

“I didn’t listen to him… now I’m a farmer just praying for rain,” said Staack. “But I wouldn’t have it any other way.”

Matthew Staack stands proud in one of the orchards he farms with a handful of Turlock’s almonds.

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AG HARVEST 2015

Almond industry takes steps towards becoming carbon neutral

BY ALYSSON AREDAS Turlock Journal

California grown almonds are not only good tasting, but good for the environment too according to a new, independent study by the University of California, Davis, which revealed that almond producers are making strides towards reducing carbon emissions.

"This critical research further reinforces the importance of our longstanding commitment to independent, third-party analysis of next-generation farming practices," said Richard Waycott, President and CEO of the Almond Board of California. "Our ongoing research programs help drive development of innovative production solutions that lead to continued improvement in efficient and sustainable, environmentally responsible farming."

The study shows that through re-using byproducts from the production and harvest of almonds, which are keys to the industry’s environmental impact, producers can further reduce carbon emissions in order to become carbon neutral or even carbon negative in terms of greenhouse gases.

The study, which was funded in part by a grant from the Almond Board of California and published in “The Journal of Industrial Ecology,” comes as a comprehensive lifecycle assessment that examines several interrelated elements, including land preparation, planting the tree, the life term of the tree, and removal.

"We have identified several key areas where changes in orchard management, technology and policy have helped the California almond industry reduce greenhouse gas emissions in recent years,” said coauthor Elias Marvinney, doctoral candidate at UC Davis. “If these trends continue to be supported, there is very strong potential for almond production to become carbon neutral or even carbon negative."

“Almond orchards capture and store a significant amount of carbon both above and below the surface over their footprints,” added coauthor Alissa Kendall, associate professor in the UC Davis Department of Civil and Environmental Engineering.

Gabrielle Ludwig, the Almond Board of California’s Director of Sustainability and Environmental Affairs, noted that through California Almond Sustainability Program the almond industry assists the almond community in identifying the best practices in terms of environmental and economic impacts. It also works to incentivize and maximize re-use of all co-products in the production process.

“The comprehensive nature of this new research provides a solid foundation for our ongoing work in this area,’ said Ludwig. “California’s almond growers are deeply committed to responsible and sustainable growing practices and this new life cycle assessment helps illustrate where the industry can make the biggest impact in supporting the environment.”

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AG HARVEST 2015

Ag Link receives nearly $100K in USDA grant

$34.3 million awarded to support local food, farmers markets

BY ALYSSON AREDAS Turlock Journal

As a business whose goal is to connect consumers to locally sourced products, it only makes sense that the United States Department of Agriculture awarded Ag Link of Ballico nearly $100,000 in grant funding to bolster affordable access to local, fresh and healthy foods.

Ag Link received a $99,280 Local Food Promotion Program Implementation Grant, which was administered by USDA’s Agricultural Marketing Service, for its Local Food Hub. This funding is a portion of the $11.9 million in LFPP grants that were awarded to 160 marketing and promotion projects for intermediary local food enterprises such as food hubs, aggregation businesses, local food processors and farm-to-institution activities.

This program, which began in 2014, has funded 351 projects totaling $24.6 million to support local and regional supply chain activities including processing, aggregating, storing or distributing local and regional food.

“It’s a huge privilege to get this grant and be recognized by the USDA as a business,” said Ag

Link CEO Jana Nairn. “This grant is exactly what we are working towards, which is supporting local businesses and connecting consumers to local products.

“It’s the basis of our business and it’s what we are very passionate about,” continued Nairn.

Nairn said that Ag Link will use the award to implement a marketing and sales campaign, add necessary systems and support equipment, and training for its food hub. This includes acquiring equipment for proper food handling and transport, developing a food handling safety program and investing in information technology to integrate the company’s web store to its accounting system.

Additionally, Nairn said that the funding will allow Ag Link to hire two to three additional employees whose main objective will be to facilitate the business’ expansion, including developing a marketing and outreach campaign.

“This will give us some really good opportunities to market, develop and advertise to help grow more efficiently and get the word out about our business,” said Nairn.

This grant is exactly what we are working towards, which is supporting local businesses and connecting consumers to local products.

— Jana Nairn

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AG HARVEST 2015 Nairn said that Ag Link will also use the grant to promote the business’ new retail location in Ballico. The warehouse and retail building is currently under construction and is scheduled to be completed by the end of the year.

Additionally, AMS also awarded $13.3 million in Farmers Market Promotion Program grants to 164 marketing and promotion projects involved with farmers markets, Community Supported Agriculture, and other direct-to-consumer outlets for local food, including $97,207 to the Modesto Certified Farmers' Market to develop educational training for junior high students that incorporates cooking classes at the farmers' market.

Since 2009, this program has funded 902 projects totaling over $59.2 million to support direct marketing efforts for local food.

LFFP and FMPP are just two of four grant programs that were administered nearly $35 million in new funding to kick off the nation's harvest season. These four grant programs support local and regional food systems, including farmers markets.

Agriculture Secretary Tom Vilsack has named strengthening local food systems as one of the four pillars of USDA's efforts to revitalize rural economies and communities. Purchases of locally-produced food

have surged to nearly $12 billion, while the number of farmers markets has exploded to more than 8,500 from 5,274 in 2009.

"Today, USDA is helping to create economic opportunities for producers, increase access to fresh, healthy food for consumers, and connect rural and urban communities across the country," said Vilsack. "Each of the grants announced today targets a unique part of the growing market for local foods. We are also expanding access for current SNAP participants to the wonderful array of fresh produce at America's farmers markets, which is important to a healthy diet."

"We will continue supporting local and regional food systems, which are drawing young people back to agriculture, generating jobs, and improving quality of life in rural communities,” said Vilsack. “Since 2009, we have seen a 75 percent growth in farmers markets nationwide and sales of local food rose to an estimated $12 billion in 2014, much of it through sales from farms to local grocers, institutions and restaurants."

The local and regional food systems grant projects support the USDA's Know Your Farmer, Know Your Food Initiative (KYF2) which coordinates USDA's support for local and regional food systems.

Ag Link Connect founder Jana Nairn explains the new application and the benefits to consumers and local agricultural business owners at an informational event co-hosted by the Turlock Chamber of Commerce in 2014.

Journal file photo

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AG HARVEST 2015

Study shows dairy industry contributes $21 billion to state’s economy

BY ALYSSON AREDAS Turlock Journal

For most Californians, the time spent thinking about the importance of the dairy industry throughout the state often equates to less than the amount of time spent pouring milk into a bowl of cereal.

However, a California Milk Advisory Board’s study, conducted by the University of California Agriculture Issues Center, is guaranteed to make consumers stop and foster a growing appreciation for the industry, since it was revealed to have contributed approximately $21 billion to the state’s economy in 2014.

Included in the $21 billion to California’s economy is $7.4 billion that represents income to industry workers and owners, as well as $13.4 billion through related, outside industries. The tax revenue resulting from these jobs benefitted many statewide initiatives, including improving K-12 education, health care, roads, community services, and the environment.

When combined with the related economic activity, including the contribution of dairy production and processing, California Milk Advisory Board CEO John Talbot pointed out that the overall ripple effect of the dairy industry was $65 billion last year.

“It’s important for Californians to understand the significant part California dairy families play not only in their own communities, but in contributing to the state’s economy and the overall health of the state and nation by supplying nutritious dairy foods,” said Talbot.

“This study demonstrates California dairy’s continued role in providing significant economic value to the state in both gross state product and employment,” continued Talbot.

Just last year, farm milk sales created $9.4 billion gross revenue and the sale of wholesale dairy products, including cheese, fluid milk, ice, cream, and butter, generated $25 billion.

California is the country’s leading producer of fluid milk, butter, ice cream, nonfat dry milk, and whey protein concentrate, as well as the second largest producer of cheese and yogurt.

Approximately 189,000 jobs depend on the California dairy industry, including 55,000 milk production and processing jobs. Additionally, for every “on the farm job,” there are six more jobs outside of the farm.

According to the study, this can be broken down to 50,000 jobs directly provided by the dairy industry and another 139,000 created indirectly through other industries.

“The dairy industry’s contributions are vital to California’s economy, from creating jobs to stimulating local and regional economies to providing nutritious and enjoyable products to consumers everywhere,” said Talbot. “A large number of California residents depend on the dairy industry for employment and these jobs would not exist without it.”

“Overall, these findings demonstrate that the health of the California dairy industry is a critical part of California’s economy,” concluded Talbot.

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AG HARVEST 2015

California dairy industry advocates for better milk pricing

BY ALYSSON AREDAS Turlock Journal

The inequity between the prices paid to California dairy producers and the costs necessary to maintain dairy operations in the state has not only cost the industry upwards of $1.5 billion since 2010, but has significantly contributed to the loss of more than 600 California dairies over the last decade.

These deficits and more were addressed

by California Dairy Campaign Executive Director Lynne McBride, one of the state’s many dairy producers who testified at the United States Department of Agriculture’s federal milk marketing order hearing in support of the federal order proposal that was submitted in February

by California Dairies, Inc., Dairy Farmers of America, Inc. and Land O’Lakes, Inc. “Since our organization was founded, we have called for California to join the federal milk marketing order system to bring our prices and the process for determining prices in line with the federal order system,” said McBride. “Our organization firmly believes that the only way to restore equity to dairy producer pricing in our state is by joining the federal milk marketing order system.

“The federal order proposal put forward by the cooperatives will comprehensively address our state’s unique marketing conditions, align dairy producer prices here with prices paid in the federal order system, restore orderly marketing conditions and sustain dairies across the state,” continued McBride.

The California dairy industry currently represents 20 percent of all milk production throughout the nation and is regulated under a state marketing order.

In August, dairy producers in California were paid $14.63 per hundredweight (cwt). This amount is well below average production costs that total $19.12 per cwt, which has caused California dairy producers to consistently be among the lowest paid nationwide.

If the state were to join the FMMO, dairy producers will be given the right to vote for a fair milk price in order to restore equity to dairy producer pricing in California, which is a fundamental difference between the federal order system and the state system.

The National Farmers Union also testified before the USDA and called for the adoption of the federal order proposal put forward by the three cooperatives earlier

CORN MAZE & PUMPKIN PATCH this year to establish a federal milk marketing order in California.

“This hearing is of particular importance to our California members, but also to our organization as a whole,” said NFU Senior Vice President of Programs Chandler Goule. “Our policy holds that the establishment of a federal milk marketing order should include California so that California dairy producer prices are brought in line with prices paid in the federal order, which will benefit all dairy producers nationwide.

“NFU was proud to support the ‘California Federal Milk Marketing Order Act,’ and the process it established, which brought us all here today,” said Goule.

“We would urge voting members of the referendum to vote in favor of joining the federal system for the benefit of the state’s dairy producers. We believe this step will increase minimum prices paid to producers, which in the end could prevent the ongoing closures of dairies that we have seen over the last ten years in this state.”

The hearing, which is expected to last several weeks according to the USDA, commenced on Sept. 22 at the Clovis Veterans Memorial District Building, 808 Fourth Street in Clovis. The hearing is open to the public. The USDA will hear testimony and receive evidence regarding four proposals for a FMMO in California.

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AG HARVEST 2015

Farm income, crop prices expected to decrease in 2015 Across nearly all measures, farm sector profitability is forecast to decline for the second straight year. Net cash income is forecast at $100.3 billion, down about 21 percent from 2014 levels. Lower crop and livestock receipts are the main drivers of the change in 2015 net cash farm income from 2014, while cash production expenses are projected down by 1.1 percent. Net farm income is forecast to be $58.3 billion in 2015, down 36 percent from 2014’s estimate of $91.1 billion. The 2015 forecast for net farm income would be the lowest since 2006 (since 2002 in inflation-adjusted terms) and a drop of nearly 53 percent from the record high of $123.7 billion in 2013.

As a measure of profitability, net cash farm income is generally less variable over time than the broader net farm income measure. One explanation is that it is possible to exercise greater control on the timing of cash receipts and expenses and thereby moderate large swings from year to year.

"Today's farm income forecast is heartening for all Americans. The past several years have seen unprecedented highs in farm income, and despite the fact that farm income is forecast to be down from record levels, today's projections provide a snapshot of a rural America that continues to remain stable and resilient in the face of the worst animal disease outbreak in our nation's history and while the western United States remains gripped by drought. Thanks to its ability to be competitive through thick and thin, American agriculture remains fundamentally sound, supporting and creating good-paying American jobs for millions," said Ag Secretary Tom Vilsack.

Crop receipts for 2015 are expected to decrease by $12.9 billion (6.2 percent) in 2015, led by a projected $7.1-billion decline in corn receipts, $3.4 billion in soybean receipts, and $1.6 billion in wheat receipts compared to 2014. Livestock receipts are forecast to decrease by $19.4 billion (9.1 percent) in 2015 largely due to lower milk and hog prices. Government payments are projected to rise 16 percent ($1.6 billion) to $11.4 billion in 2015. Total production expenses are forecast to decrease by $1.5 billion (less than 0.5 percent) in 2015.

Farm asset values are forecast to decline by 3.5 percent compared to 2014, and farm debt is forecast to increase by 5.8 percent. The farm sector equity measure combines both of these, and is down by $123.9 billion, or 4.8 percent compared to 2014. The primary driver of the drop in asset values is farm real estate, down $49 billion (2.1 percent). Debt is driven by increases in both real estate debt (up 5.3 percent) and nonreal estate debt (up 6.5 percent). While the movements in the balance sheet show an increasingly leveraged farm sector, financial risk ratios remain in acceptable ranges for now.

Highlights of the forecast: • Both net cash and net farm income are forecast to decline for the second consecutive year after reaching recent historic highs in 2013. Net cash income is expected to fall by 21 percent in 2015, while the forecast 36-percent drop in net farm income would be the largest since 1983 (in both nominal and inflation-adjusted terms).

• Crop receipts are expected to decrease by over 6 percent ($12.9 billion) in 2015, led by a forecast $7.1-billion decline in corn receipts, a $3.4-billion drop in soybean receipts, and a $1.6-billion drop in wheat receipts.

• Livestock receipts could fall by over 9 percent ($19.4 billion) in 2015, due to a forecast 29-percent drop in dairy and a 27-percent decline in hog receipts.

• Total production expenses are forecast to fall for the first time since 2009. Energy inputs and feed are expected to have the largest declines. Expenses are forecast to increase for labor, interest, and property taxes.

• Government payments are projected to rise 16 percent ($1.6 billion) to $11.4 billion in 2015. At $11.4 billion, 2015's payments would be the largest since 2010.

• Declining assets resulting from a modest decline in farmland values and higher debt are forecast to create a 4.8-percent decline in equity, the first drop since 2009.

• After several years of steady improvement, farm financial risk indicators such as the debt-to-asset ratio are expected to rise in 2015, indicating increasing financial pressure on the sector. However, debt-to-asset and debtto-equity ratios remain low relative to historical levels.

Falling crop prices and receipts forecast for 2015, except for California fruits and nuts The annual value of U.S. agricultural sector production is expected to fall to $435.2 billion in 2015, as both crop and livestock output decline. The falling value of crop production (to a forecast $186 billion in 2015) represents a second consecutive decline from 2013’s record high of $233.2 billion, and the third straight year of declining crop cash receipts despite a net inventory reduction. The value of U.S. livestock production is also forecast to decline (to $197.2 billion) in 2015 as a large drop in receipts more than offsets the sector’s inventory expansion.

Crop cash receipts are forecast to fall 6.2 percent in 2015, led by broad declines for many field crops. Corn cash receipts are expected to decline the most, falling by $7.1 billion in 2015. Since hitting a record high in 2012, corn receipts have fallen 35 percent. Corn prices are expected to fall further in 2015, while production is also expected to drop slightly relative to 2014. Cash receipts for soybeans and wheat are also expected to decline from 2014 on quantity and price forecasts that fall by 8.5 and 13.8 percent, respectively. Rice cash receipts are expected to decline by 21.9 percent on lower expected production and calendar-year prices.

Despite an expected decrease in production, cash receipts for fruits and nuts are expected to rise slightly in 2015 due to higher prices received by farmers. Production of grapefruits and oranges (particularly non-Valencia) are both expected to fall as citrus greening has been widely reported throughout Florida. Despite continued drought conditions, California citrus production has held steady or increased relative to 2014. California has historically accounted for a large portion of U.S. vegetable and fruit/nut cash receipts. According to the Census of Agriculture, 43 percent of U.S. fruit/nut and vegetable plantings are in California. For California’s vegetable, berry, and orchard production, the impacts from reduced off-farm surface water deliveries have been partially mitigated by increased use of groundwater.

California—the second largest rice producing state—is expected to experience the largest decrease in rice production as the drought continues to affect planted acreage and yield. Drought is also expected to reduce Califor-

nia’s cotton receipts, particularly the long-staple varieties in which it specializes. The 385,000 acres planted to rice in California in 2015 was about 30 percent below the long run average from the years before the current drought. Similarly but in more of a long-run shift, less irrigation for the water-intensive crop and higher returns for other crops have reduced California’s cotton acreage from over 1 million acres in the 1990’s to just 161,000 acres in 2015. Likewise, corn for silage, and hay have seen large acreage reductions, but only constitute a limited share of total farm income in California and the U.S. Median income of farm operator households expected to dip in 2015 The median income of farm households has increased steadily over the past 5 years, peaking at an estimated $80,620 in 2014. However, farm household median income is forecast to decrease slightly in 2015, to $79,287.

Given the broad USDA definition of a farm, many farms are not profitable even in the best farm income years.

The projected median farm income of -$1,504 is lower than the 2014 estimate of -$869. Most farm households earn all of their income from off-farm sources—median off-farm income is forecast to increase 4 percent in 2015 to $72,494. (Note: Because they are based on unique distributions, median total income will generally not equal the sum of median off-farm and median farm income.)

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Report: Drought costs state ag $1.84B and 10,100 jobs in 2015

The drought is tightening its grip on California agriculture, squeezing about 30 percent more workers and cropland out of production than in 2014, according to the latest drought impact report by the UC Davis Center for Watershed Sciences.

In 2015, the state’s agricultural economy directly will lose about $1.84 billion and 10,100 jobs because of the drought, the report estimated, with the Central Valley hardest hit.

The analysis also forecasts how the industry will fare if the drought persists through 2017.

‘Not a free lunch’ Currently, the industry overall remains robust. The agricultural economy continues to grow in this fourth year of severe drought, thanks mostly to the state’s vast but declining reserves of groundwater, which will offset about 70 percent of the surface water shortage this year, the researchers said.

California is the world’s richest foodproducing region. Continued strong global demand and prices for many of its fruits, nuts and vegetables has helped sustain the farm economy along with intrastate water transfers and shifts in growing locations.

“We’re getting by remarkably well this year — much better than many had pre-

dicted — but it’s not a free lunch,” said lead author Richard Howitt, a UC Davis professor emeritus of agricultural and resource economics.

The heavy reliance on groundwater comes at ever-increasing energy costs as farmers pump deeper and drill more wells. Some of the heavy pumping is in basins already in severe overdraft — where groundwater use greatly exceeds replenishment of aquifers — inviting further land subsidence, water quality problems and diminishing reserves needed for future droughts.

Further, several small rural communities continue to suffer from high unemployment and drying up of domestic wells because of the drought, particularly in the Tulare Basin.

“If a drought of this intensity persists beyond 2015, California’s agricultural production and employment will continue to erode,” said co-author Josué Medellín-Azuara, a water economist with the UC Davis Center for Watershed Sciences.

Major conclusions The UC Davis team used computer models and the latest estimates of surface water availability from state and federal water projects and local water districts federal state and local water projects.

They forecast several drought-related

impacts in the state’s major agricultural regions for the current growing season, including: • The direct costs of drought to agriculture will be $1.84 billion for 2015.

The total impact to all economic sectors is an estimated $2.74 billion, compared with $2.2 billion in 2014. The state’s farmers and ranchers currently receive more than $46 billion annually in gross revenues, a small fraction of California’s $1.9 trilliona-year economy.

• The loss of about 10,100 seasonal jobs directly related to farm production, compared with the researchers’ 2014 drought estimate of 7,500 jobs.

When considering the spillover effects of the farm losses on all other economic sectors, the employment impact of the 2015 drought more than doubles to 21,000 lost jobs.

• Surface water shortages will reach nearly 8.7 million acre-feet, which will be mostly offset by increased groundwater pumping of 6 million acre-feet.

• Net water shortages of 2.7 million acre-feet will cause roughly 542,000 acres to be idled — 114,000 more acres than the researchers’ 2014 drought estimate. Most idled land is in the Tulare Basin.

• The effects of continued drought through 2017 (assuming continued 2014

water supplies) will likely be 6 percent worse than in 2015, with the net water shortage increasing to 2.9 million acrefeet a year. Gradual decline in groundwater pumping capacity and water elevations will add to the incremental costs of a prolonged drought.

Groundwater regulations could help The scientists noted that new state groundwater regulations requiring local agencies to attain sustainable yields could eventually reverse the depletion of underground reserves.

“The transition will cause some increased fallowing of cropland or longer crop rotations but will help preserve California’s ability to support more profitable permanent and vegetable crops during drought,” said co-author Jay Lund, director of the UC Davis Center for Watershed Sciences.

The report was primarily funded by the California Department of Food and Agriculture.

Other authors on the report include Daniel Sumner, a UC Davis professor of agricultural and resource economics and director of the UC Agricultural Issues Center, and Duncan MacEwan of the ERA Economics consulting firm in Davis.

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USDA awards $113 million to support specialty crop production The U.S. Department of Agriculture awarded more than $113 million — including over $5 million to UC Davis — in program grants to support farmers growing fruits, vegetables, tree nuts, and nursery crops, also known as "specialty crops," through research, agricultural extension activities, and programs to increase demand and address the needs of America's specialty crop industry.

"Increasing market opportunities for local food producers is a sound investment in America's rural economies, while also increasing access to healthy food for our nation's families," said Agriculture Secretary Tom Vilsack. "These investments will support local and regional markets, and improve access to healthy food for millions of children and supply thousands of farmers markets, restaurants and other businesses with fresh, high-quality fruits and vegetables. The grants also help growers solve technology needs or make better informed decisions on profitability and sustainability, leading to stronger rural American communities and businesses."

USDA's Agricultural Marketing Service is awarding $63 million to 755 Specialty Crop Block Grant Program projects nation-wide. The grants are issued to State departments of agriculture for projects that help support specialty crop growers, including locally grown fruits, vegetables, and nursery crops, including floriculture through research and programs to increase demand.

Since 2009, AMS has awarded 385 grants totaling $392.9

million for 5,484 projects, including those announced today.

USDA's National Institute of Food and Agriculture is announcing $50 million in grants funded through the Specialty Crop Research Initiative, which is made available through the 2014 Farm Bill. This program develops and disseminates science-based tools to address the needs of specific crops across the entire spectrum of specialty crops production, from researching plant genetics to developing new production innovations and developing methods to respond to food safety hazards.

In fiscal year 2015, NIFA made 15 new awards totaling more than $40 million. Funded projects include a project at the University of California working to sustain the supply of high quality lettuce in the face of changing technology and climate. The University of Florida will research management strategies for Laurel wilt, a lethal disease in avocadoes. And Michigan State University aims to use applied genomics to increase disease resistance in cucurbit crops. Since 2009, NIFA has funded almost $285 million for 138 research projects.

AMS works to improve global opportunities for U.S. growers and producers. AMS grant funding supports a variety of programs, including organic certification costshare programs, the Specialty Crop Block Grant Program, the Farmers Market and Local Food Promotion Program, and the Federal-State Marketing Improvement Program. This funding is one of the ways that USDA

invests in the future of rural America and the nation's agricultural sector.

NIFA invests in and advances agricultural research, education, and extension and seeks to make transformative discoveries that solve societal challenges. To learn more about NIFA's impact on agricultural science, visit nifa.usda.gov/impacts or follow us on Twitter @usda_ nifa, using the hashtag #NIFAImpacts.

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Trans-Pacific Partnership to benefit local growers

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The U.S. Department of Agriculture released a series of fact sheets illustrating how the newly reached Trans-Pacific Partnership agreement can boost the U.S. agriculture industry, supporting more American jobs and driving the nation's rural economy.

Trade ministers from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam concluded TPP negotiations earlier this month in Atlanta, Georgia. Trade with these countries accounted for 42 percent of U.S. agricultural exports in 2014, contributing $63 billion to the U.S. economy.

"Increased demand for American agricultural products and expanded agricultural exports as a result of the Trans-Pacific Partnership agreement will support stronger commodity prices and increase farm income. Increased exports will support more good paying export-related jobs, further strengthening the rural economy," Agriculture Secretary Tom Vilsack said. "All of this activity benefits rural communities and keeps American agriculture on the cutting edge of global commerce. The TPP agreement will contribute to the future strength of American agriculture and helps to ensure that the historic agricultural trade gains achieved under President Obama since 2009 will continue."

The United States runs an agricultural trade surplus which benefits farmers,

ranchers, and all those who live, work and raise families in rural America. Agricultural trade supports more than one million American jobs. TPP will remove unfair trade barriers and help further the global expansion of American agricultural exports, particularly exports of meat, poultry, dairy, fruits, vegetables, grains, oilseeds, cotton and processed products.

According to the USDA's fact sheet, California will benefit mainly from the following commodities: Fruits: Japan, Malaysia, and Vietnam will eliminate tariffs on all fresh and processed fruits, including citrus.

Tree Nuts: Japan, Malaysia, and Vietnam will eliminate tari s on all tree nuts, including almonds, pecans, macadamia nuts, and walnuts.

Dairy: Japan will eliminate tari s on cheese and whey and create tari -rate quotas (TRQs) for whey, butter, milk powder, and evaporated and condensed milk. Malaysia and Vietnam will eliminate tari s on dairy products. Canada will eliminate tari s on whey and create TRQs for cheese, fluid milk, butter and other products.

Vegetables: Malaysia and Vietnam will immediately eliminate all tariffs, and Japan nearly all tariffs, on fresh and processed vegetables. All three countries will eliminate tariffs on potatoes and potato products.

Learn more about TPP and its benefits to the agricultural economy at http:// www.fas.usda.gov/tpp.

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Malaysia and Vietnam will immediately eliminate all tariffs, and Japan nearly all tariffs, on potatoes and potato products.

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