The Impact of Regulations For Farmers
February 6, 2020
Regulations Affect California Farmers in a Big Way
By Tim Hammerich, with The Ag Information Network of The West
Most Californians will tell you they enjoy the local and diverse amounts of produce available in this state. High labor costs and other heavy regulations are encouraging some farmers to shift more focus on crops that are less labor intensive.
"So with a minimum wage going up, with the overtime rules ratcheting down, we're kind of caught in a vice," said Cannon Michael, President of Bowles Farming Co and the 6th generation of his family to farm the land near Los Banos. "And to put one wage across an entire state where you really have different costs of living in different counties, it's pretty drastic differences, really makes it difficult," he added.
"And then when you couple that with the fact that the Federal minimum wage is much lower in a lot of other producing areas of the country that compete with us, don't have even close to what the minimum wage that we have," said Michael. "And they don't have the overtime because they have the federal exemption for overtime."
And then so not only that, but you look outside of the U S and there's Mexico and some of our close competitors there, which have no regulatory standards. "They do not have the standards that push up our fuel prices, chemical costs, really every single input that we have is a higher cost here."
We are always looking for the right mix of crops that we can grow, that deliver the highest value while again, just not stretching our folks too hard, and too far. "Because it is hard as you diversify into a lot of different things, it gets to be challenging,” he said.
Even though the regulatory pressure is there, Michael said he is very committed to making it work, but the regulatory environment is certainly a challenge.