Date post: | 23-Dec-2015 |
Category: |
Documents |
Upload: | frank-townsend |
View: | 215 times |
Download: | 0 times |
Agriculture, Water and the California Economy
Urban Water Institute Annual Water Policy Conference
San Diego Friday August 24, 2012
Daniel A. Sumner,
University of California Agricultural Issues Center and Department of Agricultural and Resource
Economics, UC Davis
California has a variety of climate and land use zones
• Natural diversity allows diverse agriculture to thrive
• A relatively small share of the total land mass is suitable for high-productivity irrigated crops
Cropland, pastured3% Other cropland
4%
Cropland, harvested
30%
Forest land5%
Other land6%
Pasture and rangeland
52%
Total agricultural area is 25.37 million acres
California agricultural land use
California 2010 cash receipts and acreage, by commodity grouping
Cash receipts Acreage
Dairy16%
Other livestock10%
Fruits23%Tree nuts
14%
Vegetables and melons
19%
Nursery/greenhouse10%
Grains and cotton
9%
Hay and forage crops19%
Fruits15%
Tree nuts13%Vegetables
and melons9%
Nursery/greenhouse
0.004%
Grains and cotton
38%
Crop revenue per acre
• Higher where fresh vegetables, berries, high-priced wine grapes and fruits predominate along the central and southern coast
• Lower where field crops predominate in the in the Sacramento Valley and southern deserts,
Top 20 California Commodities by Value, 2010
The top 20 commodities accounted for $30 billion of $37.5 billion in total sales.
California value of agricultural exports in 2010
Value by Commodity Group Value by Destination
Animal Products
10%
Field Crops 16%
Fruits20%Tree Nuts
27%
Vegetables7%
Wine7%
Other products and
mixtures13%
Total CA agricultural export value: $14.7 billion
Canada23%
European Union-27*
18%
China / Hong Kong11%
Japan9%
Mexico6%
South Korea5%
United Arab Emirates, 3%
Taiwan, 2%
India2%
Australia1%
Rest of World 20%
California precipitation map
California’s water system is characterized by an asynchrony of water availability and demand in space and time:
• Availability peaks in winter in the sparsely populated north
• Demand peaks in summer in the Central Valley (ag) and South Coast (urban)
Agricultural cash receipts per acre-foot of applied water, California, in year 2005 dollars
0
200
400
600
800
1,000
1,200
1,400
1960 1972 1980 1985 1992 2000 2005
Year
-200
5 in
flatio
n ad
just
ed d
olla
rs p
er a
cre
foot
app
lied
wat
er
Agricultural production value per acre-foot of applied water, California, 2005
Real (2005) value of California crops and livestock, 1967-2010
0
5,000
10,000
15,000
20,000
25,000
1967 1977 1987 1997 2007 2010
Mill
ion
dolla
rs (
2005
=100
)
Field Crops
All Other Crops
Livestock and Poultry
Index of California harvested acreage and real crop receipts
Indexed real prices of U.S. corn and wheat, 1866-2011
Index of real prices of California commodities, 1980-2011
Agricultural Production Share of GDP, 2007-2009 average
Country Agriculture's share of GDP
%United Kingdom 0.7Germany 0.9United States 1.1Japan 1.5California 1.4France 2.0Australia 2.5Mexico 3.9Brazil 5.9China 10.6India 17.9
California agriculture and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)Agricultural production and processing
Agricultural processing 98.3 197.6 20.5 657.9 64.4Ag-support activities 6.6 187.2 5.2 227.5 8.8Farming 40.9 194.7 16.4 424.2 35.6
Direct Effects Total Effects
147.0 589.8 42.6 1,323.2 112.0
Total California economy 3,223.3 19,857.0 1,874.6
California agriculture is more than farming and is liked to the rest of the economy
• About 600 thousand direct jobs in production and processing and about 1.3 million including the ripple effects.
• About $43 billion in direct GDP and about $112 billion including ripple effects.
• Overall agriculture accounts for about 6% of the economic activity in California
• Farming itself is more than half of that with fruit leading the way, but California farming has great diversity
California farming and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)
Farming 40.9 194.7 16.4 424.2 35.6Grains and oilseeds 1.3 16.2 0.5 22.7 1.0Vegetables and melons 8.0 29.0 3.6 84.5 7.7Fruit 11.8 48.4 5.5 147.7 12.1Tree nuts 3.7 29.2 1.9 57.8 3.8Greenhouse and nursery 4.0 21.2 2.0 45.1 4.0Other crops 4.0 13.8 1.2 38.7 3.1Beef cattle 1.7 8.6 0.3 16.1 0.9Dairy cattle and milk 4.5 20.6 1.0 40.9 2.8Poultry and eggs 1.3 1.6 0.2 6.9 0.7
Direct Effects Total Effects
Central Valley agriculture and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)Agricultural production and processing
Agricultural processing 38.0 68.7 7.0 252.8 21.6Ag-support activities 3.7 114.0 2.8 137.6 4.7Farming 23.4 108.8 9.4 259.0 19.5
Direct Effects Total Effects
65.5 293.3 19.3 636.7 46.6
Total Central Valley economy
395.5 2,889.9 224.1
Central Valley agriculture is large and diverse comprising a significant share of
the whole economy• About 22% of Central Valley jobs are tied to
agricultural production and processing, about 40% linked to farm processing
• About 9% of GDP is tied directly to agriculture and this grows to about 21% when we include the ripple effects.
• Fruit, tree nuts, vegetables and dairy are the big contributors to farm value added and employment.
Central Valley farming and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)
Farming 23.4 108.8 9.4 259.0 19.5Grains and oilseeds 1.2 14.5 0.5 21.3 0.9Vegetables and melons 3.1 7.9 1.4 32.1 2.9Fruit 8.1 26.8 3.7 105.3 8.0Tree nuts 3.5 28.1 1.8 60.2 3.6Greenhouse and nursery 0.7 2.3 0.4 6.5 0.7Other crops 1.0 3.4 0.3 10.3 0.7Beef cattle 1.0 5.2 0.1 10.0 0.5Dairy cattle and milk 3.9 17.4 0.8 35.4 2.1Poultry and eggs 0.5 0.5 0.1 2.7 0.3
Total EffectsDirect Effects
Southern California agriculture and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)Agricultural production and processing
Agricultural processing 39.0 79.1 8.4 297.9 30.4Ag-support activities 1.1 30.8 0.9 39.6 1.7Farming 9.2 44.5 3.6 111.4 9.2
Direct Effects Total Effects
Total Southern California economy
1,793.1 11,550.5 1,064.6
49.6 157.6 13.1 458.6 41.8
Agriculture also contributes significantly to the Southern California economy
• About 460 thousand jobs and $42 billion in GDP derived from agricultural production and processing when ripple effects are included
• Farming in Southern California accounts for about a quarter of these totals in the region.
• Greenhouse and nursery, fruit and vegetables are all major contributors.
Southern California farming and economy, 2009
Industry Jobs Value Jobs Valueoutput added added
($ billion) (1,000) ($ billion) (1,000) ($ billion)
Farming 9.2 44.5 3.6 111.4 9.2Vegetables and melons 2.1 9.6 1.0 28.2 2.4Fruit 1.6 9.8 0.7 26.3 1.9Greenhouse and nursery 2.1 12.2 1.1 29.1 2.5Other crops 2.1 6.5 0.6 23.1 1.9Beef cattle 0.4 1.5 0.1 3.8 0.3Dairy cattle and milk 0.4 1.9 0.1 4.5 0.3Poultry and eggs 0.3 0.4 0.0 1.6 0.2
Direct Effects Total Effects
Thank you, Dan Sumneraic.ucdavis.edu