Farming and Its Challenges in San Diego County Eric Larson Executive Director San Diego County Farm Bureau

National Rankings #19 farm economy among all counties # 1 in nursery production # 2 in avocado production # 1 in number of small farms #1 in number of organic farms # 1 in farmers with off-farm income

$1.7 Billion in Crops Nursery & Floral 65% Fruit 21% Vegetables 9% Livestock & Poultry 4% Nursery & Floral 65% Other <1%

251,000 Acres Livestock 75% Other 5% Fruit 13% Nursery & Floral 3% Vegetables 2%

Farming Has Done Well Here Climate Imported water Transportation Labor supply Local markets

Today’s Challenges Water Pricing Labor Pest Exclusion Competition Succession

Water Pricing New sources are expensive System fixes are expensive Transfers Desalination System fixes are expensive Sacramento Delta Storage Less water delivered by system means each gallon sold carries more costs Tripling of price in 11 years

Labor Farmers are dependent on foreign-born workers Substantial number are working with forged documents Obama administration failed on reform President Trump has only spoken of enforcement

Labor Current workforce is aging out Replacement workers are scarce Impacting farm operations Mechanization is limited answer here State of California making situation worse Minimum wage Agricultural overtime

Pests and Pest Exclusion Traveling public introducing exotic pests Increased volume of travelers and packages Agency budgets are an issue Fewer tools available to combat pests

Impact from New Pests Shipping restrictions for growers Additional use of pesticides Threat to organic growers

Asian citrus psyllid Kuroshio shot hole borer Fruit flies Light brown apple moth Asian citrus psyllid Kuroshio shot hole borer

Competition Agriculture a borderless world market U.S. has greatest regulatory burdens Foreign operations have significantly lower production costs Cut flowers Avocado Strawberries

Succession Average farmer age exceeds 60 Not a popular career pursuit Generational transfers declining Barriers to entry Cost of land Financing Lack of working knowledge

The Bottom Line Farming is a business and profitability will dictate above all else