This report provides a detailed statistical profile of California’s horticultural farm industries based on survey data collected from approximately one-third of all horticultural crop producers in the state in the spring of 2002. The survey was designed to elicit information on the current status of horticultural farm industries on their risk management practices and attitudes. The industries featured in this study accounted for more than $17 billion of gross farm revenue in 2002. The statistical information presented is the most comprehensive ever undertaken for this important segment of California agriculture. The main body of the report describes industries in seven sections: 1) farm size and regional profile; 2) crop diversification; 3) marketing; 4) yield, price, and profit fluctuations; 5) risk management; 6) crop insurance; and 7) financial characteristics.

In recent years, there has been a trend in California from harvesting hay in small hay bales of about 125 pounds to very large bales of 1,300 pounds or more. This shift is driven by both production considerations and the preferences of some consumers, but has significant implications for the hay market and its many consumer segments. We conducted a survey of rates and the rate-setting methods among custom alfalfa hay harvesters in the northern intermountain region and the San Joaquin Valley. The results show that large bales are cheaper to produce than small bales.

Marketing a Mediterranean Diet: Some Issues and Opportunities.

Farmland Values as an Indicator of Regional Economic Performance?

Brand Loyalty and Gasoline Pricing in Sacramento.

We used 11 years of data from video auction sales across the western United States to address two long-standing questions posed by California cattle ranchers. First, as expected, ranchers receive lower prices for cattle sold here compared to prices received by ranchers in the Midwest. Second, some (but not all) “value-adding” production and marketing practices raise prices received by ranchers. We report the average amount of location discounts and quality premiums for several market regions.

We analyzed video auction sales in the western United States from 1997 to 2003, in an attempt to answer two long-standing questions about the economics of cattle ranching in California. First, as expected, ranchers received lower prices for cattle sold here compared to prices received by ranchers in the Midwest; this is due to the cost of transporting cattle to Midwestern feedlots. Second, some (but not all) “value-adding” production and marketing practices — such as preconditioning, Quality Assurance Programs and natural beef production — did raise prices received by ranchers. We report on the average location discounts and quality premiums for several market regions.

Beef cattle remain one of California’s most important agricultural products, ranking fifth in 2001 at $1.35 billion in value of production, behind dairy, grapes, nursery products and lettuce. However, technological change, coupled with declining consumption of red meats during the 1970s and 1980s, triggered a wave of mergers and acquisitions in the beef-processing sector. To evaluate how such trends are affecting the industry in Calif-ornia, we undertook a survey during 2000 and 2001 and obtained responses from ranchers in 40 counties. Our results confirm that the industry appears to be at a crossroads, for a variety of reasons. Cow-calf ranching operations now predominate, and a significant percentage of cattle leave the state for feeding and slaughter. Auction yards, a principal marketing outlet for most of the survey respondents, require a large volume of activity in order to operate efficiently. As aging ranchers exit the business, this important exchange mechanism is threatened, possibly contributing to the industry’s further decline. Most ranchers reported having five or fewer potential buyers for their cattle.

Editors' Note

ARE Faculty Profile: Warren E. Johnston and Alex F. McCalla

California Agriculture in the 21st Century

Positioning California's Agricultural Cooperatives for the Future.

California Agriculture's Profit Performance.

The Bankruptcy of Tri Valley Growers:What Went Wrong and What Can We Learn From It?

Cultivar Diversity as a Risk Management Strategy for Tree Crop Growers.

Conditional Cash Transfer Programs: Are They Really Magic Bullets?

Regulations on Methyl Bromide Fumigation Thrown Out by the Court; Outlook for Farm Financial Conditions; Economic Costs of Recent Changes to the Wetland Permitting Process

The Bottom Line on the Conversion of Diamond Walnut Growers.

Industry Initiated Regulation and Food Safety: the New Federal Marketing Order for Pistachios.

The Relationship Between Price Risk Management Tools and Off-Farm Income.