Agribusiness in California is facing a wide range of fall-out as the state enters its third year of drought conditions. Groundwater and reservoirs are at dangerously low levels and the snow pack has a water content of only 20% of normal. With no fall and winter rains bringing spring grasses, cattle auction houses which usually sell 100-150 head per week during the off-season this time of year are selling 800-1,000 head per week. Most of the cattle are being sold to Texas which is expanding its herd as it recuperates from its own drought. The drought has had other unforeseen effects upon the cattle industry. During times of drought oak trees increase their production of acorns. With the lack of grass cattle are eating significant amounts of acorns which are toxic in large amounts and can damage the animal’s internal organs. Without the rain the state’s alfalfa crop has not come in which sheep ranchers depend on for their lambs which are born over the winter. Nut sizes are smaller due to lack of moisture causing a decrease in the volume of the state’s critical almond and pistachio crops. Almonds however are one of the 35 crops eligible for farm insurance in the state while the livestock industry is not; and until the farm bill is passed many disaster relief programs are not available. If California does not receive significant rains in the coming months national prices of dairy, meat and produce could all increase.
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