- Author: Dan Macon
Over the weekend, much of the Sierra foothills was impacted by another PG&E Public Safety Power Shutoff (or PSPS, as the company calls it). This time, the advertised windstorm actually materialized - and while shutting off the electrical grid probably made sense from a wildfire prevention perspective, PG&E's actions had unforeseen consequences for many foothill farms and ranches.
For customers of the Placer County Water Agency, the power shutoff meant no American River water during an especially dry period. Citrus growers, especially, are entering a critical timeframe in the ripening of this year's mandarin crop. Many livestock producers rely on winter water during this time frame to provide drinking water for livestock - others pump groundwater for livestock (which is difficult without electricity). This evening, I'm filling a water tank in the back of my truck to haul water to our sheep in the morning.
But water (or the lack thereof) isn't the only challenge. Talking with Bob Bonk of Snow's Citrus Court this morning, I realized that growers who require cold storage where especially hard hit. Bob reported that he'd exceeded his fuel budget keeping generators running over the weekend. He'd also exceeded his capital purchase budget buying an additional generator. These added costs are difficult to anticipate, but necessary to staying in business. Bob also reported that many direct-market vegetable growers lost product without cold storage. Some growers who couldn't pump groundwater were not able to wash their produce.
Finally, I received a notice from my cellular provider late yesterday that I'd burned through most of my data for the month. Like many other producers, I imagine, I had turned to my cell phone to keep up with weather and fire conditions, information from PG&E, and other local news. All of these costs add up!
In the coming week, we will be working on a survey to document impacts to farmers and ranchers - we hope you'll take a few minutes while the memory of these recent outages is fresh to share your story. And over the winter months, we'll be working with the agricultural community to develop plans for dealing with these challenges in the future. Stay tuned!
- Author: Dan Macon
Please complete this short survey regarding irrigation water shutoffs due to the October Public Safety Power Shutoffs:
- Author: Hannah Meyer
- Editor: Cindy Fake
Have you completed a cash flow analysis?
Cash flow is not profitability, it is the statement of incoming dollars and outgoing dollars at different times of the year, which results in a cash flow statement. Analyzing your cash flow will help determine if you are able to pay your employees throughout the year, seasonally, or if a budget needs to be made to ensure cash is available when needed.
Have you calculated the full cost of employees you want to hire?
The minimum hourly wage has increased but that still doesn't account for the myriad of costs attached to hiring an employee. Fulfilling legal requirements for worker's comp, insurance, and other costs can derail your budget; causing not only financial hardship for the farm but also your employees. It is always a good idea to consult with employment experts to find out what exactly it will cost to hire your prospective employee.
Do you understand the legal requirements for becoming an employer?
First, you will need an employer identification number for tax and legal purposes. Laws and requirements are constantly changing so consulting an expert is recommended.
Are you prepared, or have you identified a person who is responsible, for handling payroll, taxes, workers comp and other related paperwork and payments?
Handling payroll and other employee needs should be the responsibility of a single person in your operation. While employees can report their hours and submit forms, a trained individual needs to be responsible for making clerical decisions and correcting common mistakes to avoid headaches later on. If the owner is not able to perform these duties, someone else must. However, that person does not need to be an expert in all of these areas as long as they have qualified advisers in place to help them with tax, insurance, and regulatory decisions.
Get your labor questions answered by Bryan Little, from the Farm Employers Labor Service, who will be our guest speaker at the Farmer-to-Farmer breakfast on March 14th, 2019 at Happy Apple Kitchen. Sign-up now at https://ucanr.edu/survey/survey.cfm?surveynumber=26870 . Put it on your calendar today!
Additional labor related resources:
- Labor Readiness Self-Assessment Tool - University of Vermont
Answer a list of 21 questions and a personalized report will be generated letting you know what areas to work on. http://www.uvm.edu/aglabor/dashboard/node/add/readiness-assessment
- FELS –Farm Employers Labor Service - a division of the California Farm Bureau Federation
“FELS strengthens the working relationship between farmers and field workers and helps farmers comply with labor and employment laws” https://www.fels.net/1/30-labor/605-vineyard-worker-fatality-highlights-importance-of-machinery-safety-training.html
- FELS Personnel & Labor Audit Checklist
Use this checklist to ensure you are up to date with requirements regarding overtime, minimum-wage, posters, etc. https://www.fels.net/1/images/Audit-Checklist-May-2018-with-FELS-letterhead2.pdf
- Understanding Cash Flow Analysis - Iowa State University
This page has links to cash flow budget sheets, cash flow decision maker tools, etc. https://www.extension.iastate.edu/agdm/wholefarm/html/c3-14.html