Crop Values Up, Inflation Up

Values on the Rise in the County’s Ag Report

Merced County’s farm products were valued at $3.7 billion according to the 2021 Agriculture Commissioner’s Annual Report released at the end of 2022. Photo: Steve Newvine

This mural at the Merced County Fairgrounds reminds visitors how important local growers are to agriculture.

Farming continues to form the foundation of economic life in the community. The latest report from the County Ag Commissioner affirms that and offers a ray of hope for ag producers.

In late 2022, the County Board of Supervisors received the annual Agriculture Report from Agriculture Commissioner David A. Robinson.

The good news within the report comes on page four where the value of commodities is listed at $3,711,557,000.

That’s up from $3,401,610,000 in the 2020 report. The increase is approximately nine percent.

The annual inflation rate is seven-point-five percent. So while ag grew at a higher pace than inflation, many growers could live without the rising costs associated with farming.

For a column on the nut crop earlier this year, Merced County Farm Bureau President Joe Sansoni was not encouraged by the trend of rising costs for the things he and his members need to run a successful enterprise.

“For example, repair parts for equipment have doubled and in some cases tripled in cost, and often are back ordered or simply unavailable,” Joe said. “This goes for every single category including labor.”

Joe elaborated on the rising cost of fuel to run his farm equipment.

“A harvesting operation that had a $6,000/month fuel bill in 2020 would've had a $10-11,000/month bill during the 2022 season.”

Joe said situations like this will force some growers to take drastic steps.

“If costs don't begin to decrease along with much-needed increases in crop prices, many farmers will be forced out of business very soon.”

Pages from the 2021 Ag Report for Merced County. Photo montage: Steve Newvine

The report is done in compliance with the state Food and Ag Code. It summarizes the gross value of the County’s agricultural commodities, along with updates to the amount of acreage and production in the farming sector.

The numbers in the report represent only gross returns to the producer. It does not take into account the costs of production, marketing, or transportation.

MERCED COUNTY TOP FIVE COMMODITIES (2021 Ag Commissioner’s report released in late 2022)

• Milk $1,093,632,000 31.8%
• Almonds $485,858,000 14.1%
• Sweet Potatoes $317,789,000 9.2%
• Chickens $276,215,000 8%
• Cattle & Calves $278,246,000 7.5%

A breakdown of each category is available on the County website 906 (countyofmerced.com) . There are graphs and more detailed explanations included in the report.

The report also contains summaries on Agriculture Commission programs such as pest detection, weights and measures, and nursery inspection. In the report’s summary of all the countries that buy farm products from Merced County, there are twenty countries listed.

The top three importers are India, Spain, and Japan.

One thing for certain that will change when the next annual report comes out will be the name of the person running the department.

The County’s Agriculture Commissioner David A. Robinson retired at the end of 2022. In December, the Board of Supervisors named Sean S. Runyon as the new Commissioner

The previous year’s report had the shadow of COVID as farmers dealt with all the many issues the pandemic brought about.

The new report has the shadow of inflation. Rising costs continue to worry growers and their strategic partners.

The mural at the fairgrounds depicts a proud lifestyle in farming. While that may never go away, it continues to face challenges in 2023 for growers.

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Steve Newvine lives in Merced.

Two of his books, California Back Roads and Can Do Californians are available for purchase at the Merced Courthouse Museum Gift Shop.

His other titles are available at Lulu.com, Amazon, and Barnes and Noble.com