Posts Tagged: economic impact

Feeling the economic pain of drought

Reduced water allowances for farmers could mean layoffs and other economic impacts, says an article in the Wall Street Journal by Jim Carlton.

The article reported that some farmers have been told to expect just 30 percent of their allotments. In response to water cutbacks, many farmers must reduce planting and leave some fields fallow.

The article referenced a UC Davis study, co-authored by Richard Howitt, of 2009 water cutbacks that resulted in "285,000 acres going fallow and the loss of 9,800 agricultural jobs, for a $340 million loss in farm-related revenues."

Pistachio Association uses UC data to calculate the crop's economic impact

The economic impact of the pistachio industry in California, Arizona and New Mexico amounts to $1.9 million for each day of the year, $682.5 million annually, according to a report commissioned by the Western Pistachio Association. The greatest economic impact is in California, where the majority of pistachios are grown.

Consultant Dennis H. Tootelian arrived at these figures using data from the Census of Agriculture, USDA, CDFA, and the University of California Cooperative Extension's Sample Costs to Establish and Produce Pistachios, according to a news release WPA distributed today via PR Newswire.

"The goal of the study was to demonstrate the overall impact of the pistachio growers' spending and their ability to generate business activity, employment, personal income and tax revenue for other industries and the states they operate in overall," Tootelian was quoted in the release.

The $682.5 million economic impact takes into account the "ripple effect" of pistachio business activity. For example:

• Pistachio growers spend nearly $415.3 million each year to produce the pistachio crop
• This spending spurs creation of 5,910 full-time equivalent jobs each year
• The employment generates more than $224.4 million each year in wages and salaries for new employees, and expanded incomes for existing industry jobs
• More than $24.4 million annually in tax revenue and other business licenses and fees are generated

"This report shows us how we as an industry contribute to the economy – through substantial job creation, funding for community programs, literally millions in tax revenues to the states where growers operate – all by simply growing the best possible product for consumers," said WPA executive director Richard Matoian.

The complete economic impact report may be viewed on the Western Pistachio Association's website.

UCCE's pistachio cost study.

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