John Michelena: As prices fall, farmers don’t need government’s ‘help’

California’s long-standing experiment with high taxation and excessive regulation is reaching a boiling point. Sacramento and their mad political scientists are always cooking up new regulations, and the self-employed are angry and tired of constantly fighting bureaucracy.

Here’s the new red tape being piled on farmers.

We had a March 1 deadline for sending in a Farm Evaluation Survey with sections covering pesticide practices, crop fertility, sediment discharge, irrigation practices, erosion control, field descriptions, well locations, cultural practices and more. Also by March 1, a Nitrogen Summary was required for crops harvested in 2015. On Tax Day, April 15, a Nitrogen Management Plan – which must be certified – is required for every 2016 crop. Then in November, there’s an Erosion and Sediment Control Plan, with the details for submission still pending.

This new paperwork is required by the State Water Resources Control Board; the same regulators who find every environmental excuse not to provide water for agriculture. Many farmers feel doubly persecuted as they will probably not be getting water from these fish-obsessed regulators this year, either. I’m sure more environmental regulations and more taxes are coming, especially for use of groundwater.

All this leaves farmers unsure of what to grow, as all commodity prices have been collapsing. Meanwhile, some believe trade numbers from around the world are pointing to something ominous, like a worldwide economic depression.

California is unlikely to escape any global economic contraction. California’s farm economy hasn’t really performed that well during the drought, despite record income in 2014. High almond prices and large increases in almond acreages have greatly distorted California’s gross farm income. The public thinks California’s man-made drought isn’t affecting overall production because almonds have made major contributions to total revenue and profitability. Almonds have also boosted the value of farmland.

But almond prices have crashed in recent months, falling about 55 to 70 percent. From Europe to Asia, every country that has been buying almonds and other American food products will likely roll back their purchases as their economies and currencies are falling in value. If, as some believe, the American economy is in worse condition than is being reported, demand for luxury food items also will collapse.

This is not the time for California to be doubling down on new environmental regulations, as it will cost jobs, productivity and increase debt for farmers. These regulatory costs will discourage young people from entering farming and older farmers will retire early. Only corporate farms will have the legal and administrative resources to weather the regulatory overload, driving out small farmers.

Farmers don’t need to be micromanaged by bureaucrats. Our state already has the toughest regulations governing air, water, labor and pesticides. Stanislaus County is also proposing increased fees for hazardous materials and wells.

Government should move aside and let us conduct our business.

This story was originally published March 23, 2016 at 1:36 PM with the headline "John Michelena: As prices fall, farmers don’t need government’s ‘help’."