Steve Mohasci: MID helps wealthy farmers while soaking middle class
Since 2000, MID has overcharged electric customers $160 million to subsidize farm irrigation costs. In 2000, electric customers paid 65 percent of farm irrigation costs. In 2015, it was 75 percent. If the pending irrigation rate increase is approved, electric customers will still pay 75 percent.
In 2013, the average profit on a farm in Stanislaus County was $184,186, an increase of 17.6 percent from 2012. In 2014, average farm profit was $230,115, an increase of 24.9 percent from 2013. Currently, the average wage for 65 percent of county residents is only $31,353. A majority of the MID board of directors think it is appropriate to force an individual earning $31,353 to subsidize a farm proprietor earning $230,115.
Since 2000, the growth rate for total farm profit in Stanislaus County is about 12 percent. During that same period, per capita personal income for county residents has gone from a rank of 36th to a rank 42nd in the state. Food processing jobs in the county have gone from 11,500 to 9,000, a decline of 21.8 percent while food manufacturing jobs in the state only declined 1.9 percent. It would seem that subsidizing farm profit isn’t stimululating the local economy.
Steve Mohasci, Modesto
This story was originally published March 12, 2016 at 5:09 PM with the headline "Steve Mohasci: MID helps wealthy farmers while soaking middle class."