Strawberry case study: What if farmers had to pay for water?
nytimes.com
nytimes.com
More details here: https://www.theweathernetwork.com/en/news/nature/outdoors/fa...
https://www.fairlifts.com/helicopter-services/agricultural/f...
https://niagaranow.com/news.phtml/6869-vineyards-crank-up-gi...
Here are some large mixers, which might be mistaken for small windmills. These are powered by propane (I think), which is what the tanks nearby hold. The heat produced is a bonus, even a degree can make all the difference: https://maps.app.goo.gl/d6UwmpPsYih5xkZD9
So while helicopters used to shake water off of crops can sound crazy, it’s literally a big mobile fan you can call in when needed to save your established perennial crop from much more expensive problems (like a disease epidemic, which now requires bacteria codes/fungicides instead of just burning some fuel. Which can make sense.
We also use helicopters to harvest Christmas trees. It’s too damn wet in the fall/winter to run most wheeled equipment up and down those horrible on red clay hills, which often have artesian springs temporarily form, resulting in clay mud that can grab and hold all land vehicles.
https://www.youtube.com/watch?v=08K_aEajzNA
Agriculture is a whole lot of “sure it’s stupid, but it works and is cheaper than the alternative”
The fan idea is actually quite okay, cold pockets exist. But let us not forget that "cheaper than the alternative" depends on the prices of everything else.
The problem capitalism constantly keeps running into is that certain externalities are not priced into that "cheaper" choice. You can defrost your fruit with helicopters if the fuel and helicopters are cheap enough, but you may be happily stacking a debt elsewhere, e.g. in the form of polution, social costs, climate crisis, draught etc.
The problem here is that these externalized costs are often not paid by the people who stack them up, which is when regulation can become increasingly benefitial.
Granted, the "crazier" measures like defrosting fruit with helicopters are often just limited stop-band measures in a bad phase that can safe a whole harvest, but if they are used to battle the stacking hidden cost they are in the danger of becoming more and more common while making the problems worse (or at least masking it).
An example: I grew up in the Alps, where skiing is a thing. Each year ski resorts have to rely more and more on artifical snow, which uses extreme amounts of energy and water. Climate change means that the snow mark moves higher and higher each winter, but what about the communities that built a living around the slope and it's tourism if it is their resort that has no snow this winter? That's when you go in with the artifical snow. Twenty years ago that may have been a few bad days in the year or just small parts of the slope, and over slow creeping times it has become more and more. The problem is it just prolongs the needed change, it doesn't solve it. Maybe they are lucky and blessed with snow next year, but what about 10 years down the line? The good ski resort villages are already aware that this is an issue and try to move more towards summer tourism, with the artifical snow just buying them time to do that transformation.
But the only reason they have to do that is because energy is expensive and artifical snow works only down to certain temperatures (to warm and it cannot be produced). These limiting factors may not exist elswhere.
"Cadillac Desert" is a good read to see how bonkers the water system can be (and was devised to be) in the US West, because it basically tries to turn the desert into a garden. The only problem is that there's just not enough water to do that.
Another good story in the New York times: https://www.nytimes.com/interactive/2023/08/28/climate/groun... (which was discussed in HN, as well: https://news.ycombinator.com/item?id=37306841 )
"While corporate growers of premium products like berries, which are shipped to the shelves of major chains like Whole Foods, Safeway and Trader Joe’s, can absorb the price of Pajaro’s water, there is no way farmers of commodity crops like cotton, alfalfa and soybeans can make the economics work, said David Sanford, the agricultural commissioner of the Santa Cruz County, which includes the Pajaro Valley.
"In the years since the price on water was imposed, growers of those crops either shifted to high-priced berries and lettuces, or simply left the region for cheaper pastures."
The increased cost could only be handled by shifting to higher-margin crops.
On the other hand, anyone growing alfalfa or soybeans in the stinking desert deserves whatever happens to them.
It is a hot topic here in Scandinavia, because every season farmer will cry “no one wants to work!”, and then comes testimonies of indentured servitude at its worth, and sweat-shops at its best.
Many farmers here “import” Asian rice farmers to pick berries these days.
This is what governments are for. If the system doesn't pay people a livable wage to do the work to support our existence (food), then clearly we need to change the system to not be based on "maximizing profits".
But instead you justify it by saying the margins are "razor-thin", and farmers have to take advantage of people if they want to survive. And that justifies this terrible behavior. Move who you're blaming and call them to action, instead of just accepting terrible conditions for workers.
Farmers are responding to incentives, gov'ts have built subsidies for farmwork in the past, because food has to be cheap for people to live.
I know enough about their lives to know that your armchair quarterbacking is an absurdity.
Welcome to America. Where SV folk would scream slavery if they lived as a quarter of the nation does.
I hate the sentiment that because things are bad somewhere they should be bad elsewhere. Every time I bring up benefits that I have that others don't they start by saying "you shouldn't have those" instead of saying "I should have those too." It's like we're playing a weird game of the prisoner's dilemma, but there's not actually any benefit for the person defecting.
Maybe some blended rate, where you look at "buying housing for a family of 4 + rented apartment for a bachelor" and blend, to get living costs.
When I did research compared to where I live, I discovered a person makes more living near Ottawa, ON, making $70k USD/year, than someone making $250k/yr US in .. say, Palo Alto. This was of course primarily due to housing costs, although this was in 2020. Things have changed dramatically in most of Canada (re: housing) in the last 3+ years.
Of course yes, most certainly, if you buy + pay off a $3M USD house/land vs a $300k USD house, you have more money to retire on. You could theoretically move to a lower cost area, and retire with style. Yet who wants to (potentially) leave their kids who might settle in the region too, and additionally, all their friends, associates, etc, etc.
Any yet buying doesn't take into account "What if a person just rents for their entire life", which can happen. Nor does it take into account things such as property tax, and other associated housing costs (water tax, etc).
To give an idea of the massive cost differences, just the property tax on a typical $3M Palo Alto home is 4x my mortgage on my $250k house. My mortgage is $800 USD per month. Palo Alto monthly property tax on $3M home? A little over $3000/month. Paying 4x as much just in property tax, compared to my mortgage? Well, that money is gone, gone, gone in terms of 'life savings', and is pure additional cost.
For the record, my property tax is about $120USD/month. Let's call it 25x more for Palo Alto property tax.
Again, there have been dramatic changes in Canadian housing pricing in the last 3 years. There are also differences in how peoples are taxed. For example, I probably pay more federal and provincial income tax, and a little less property tax, with money tricking down from those levels to the municipal level. Yet, I also get free health care (quality debates and issues not relevant, just a point), $10/day state funded day care, and pharmacare coming soon.
So it's really hard to equate across national borders in terms of living costs, but I guess my point is living costs can be so dramatically different. I suspect that making $100k in Palo Alto makes a person much poorer than someone making $25k in rural Arizona.
Farmers who do human smuggling and steal labors passports in order to force people to work for nothing are a problem both about regulation and enforcement (and ethics). It the exact same problem in construction, cleaning, prostitution, and so on. Those industries can exist without human smuggling, and the bad actors only serve to make it worse for everyone.
Berry farms in Scandinavia do however have a problem with distribution. Most farms are located very far away from the consumer, with the distributor taking more than the major portion of the profits. The accounting can quickly look a lot better when a farming do not need to sell to gross distributors for 1/10th of the value of the product. Solving cheaper distribution and storage are possible, but is more similar to the issue of creating a competitor to Windows. Margins for farmers do not need to be that thin, but creating storage and distribution chains are complex when dealing with such perishable goods.
So the farmer has no variables to change because the problem is not in their jurisdiction, but rather the government's, no? (i.e. breaking up giant agri-businesses, or taxing them and redistributing to subsidize small operations)
But I recognize there's also geopolitics of food, so there are many layers I don't understand :)
A race to the bottoms, however, does sound like a wholesome family activity.
(Apologies for the grammar nerdery; I mainly want to make the joke.)
I'm all for setting price minimums on agriculture IMHO. We have such an excess of food already that, combined with food banks and stamps, I'm not concerned about people going hungry. Most of the expensive shit is from processing and logistics seems to be the biggest issue with food scarcity (there's a reason meals on wheels exists)
If farmers couldn't afford to pay reasonable wages _and_ turn a profit, then, at the system level, the externality of those lost wages is being paid somewhere else _by_ someone else. We're just not recognizing that externality or worse, it's being hidden.
And frequently in situations like this, where people aren't being paid livable wages, they turn to theft and other crimes. So one of the "externalities" we're talking about here is an increased crime rate. We then pay police to try to curb that, who are remarkably inefficient at reducing crime, so we have to over-pay to try to achieve that goal.
If, instead, we formally recognized that externality and addressed it at the source -- for instance, like the parent poster suggested, by subsidies (which would almost certainly be cheaper than the increased police budget that addressing that externality would otherwise demand in our current climate) -- then farmers could pay reasonable wages and keep or even increase their margins to a comfortable level. It's not in our best interests to keep farmers poor or just scraping by either!
Also, the US's Midwest has one of the best lands in the world for farming, there's zero need to farm in the deserts from the country's (not the rich farm owners') perspective.
That's true of everything from banks to shops to restaurants to tech companies and farms; if they're not viable businesses, then either the proprietor pays to keep them open out of their own pocket, or they shut down and make room for companies that are viable.
And yeah, if society values the work enough but it isn't profitable to do, then the answer is that the government or some other organisation funds it, not that people get exploited or rules get relaxed to make it 'viable'.
I hope that with universal basic income we will be able to bring back market forces to food production instead of relying to artificial incentives for the farmers.
Their point was that if it was significantly cheaper than their number, the owners most likely didn't pay minimum wages or some similar shenanigans was going on.
I've often since thought other groups, like farmers, should do something similar. I've got no clue how much a small basket of strawberries should cost for the farmer to make a decent living and the pickers to get a decent salary. Same with most other things I buy in the grocery store.
The price point is determined by the costs involved. If everyone had to pay employees decently, the price would adjust.
Later, govt got involved and enforced minimum wage standards. That previous relationship was no longer viable. The students could not return enough income for minimum wage. So, instead, those positions changed and the students had to pay instead, and not a small amount either because now there govt involvement in your training institution etc.
So did the situation get better? I feel as though no, because now, to ‘get into it’, you need a thousand dollars or whatever, where as before you just had to be keen and show up.
Are you arguing for unpaid/reverse paid internships here?
Look, people need to eat. There will always be a need for farmers. We're literally suffering from success. As far back as the 30s we were paying farmers to dump or destroy their produce to prevent racing to the bottom. The supreme court declared that was unconstitutional so they ended up just doing a ton of subsidies instead. We don't want farming to be maximally price efficient. A surplus of food is a good thing, since crops sometimes fail or disaster strikes.
Farming mega Corp domination is a fairly new thing and thanks to this guy
Usually, on those permaculture "internships", you get a roof over your head and food to eat. You don't get any money on top of that, the assumption is that you're being paid in skill acquisition. It's a fair deal for many people.
U.S. thermoelectric plants are the largest source of U.S. water withdrawals, accounting for more than 40% of total U.S. water withdrawals in 2015: https://www.eia.gov/todayinenergy/detail.php?id=50698
https://www.usgs.gov/mission-areas/water-resources/science/t...
Calfornia farmers pay $30 to $120 for an acre foot (325,851 gallons or 1,233 cubic meters) which is ridiculously cheap and is wasted growing things like rice (California grows about 20% of the rice produced in the U.S. each year.)
I bet. There aren't many agricultural areas in California that could be considered high desert
But yeah an increase in ag water pricing for all arid areas commensurate with their aridity would be a step in the right direction
Yes, but most of their water goes to Los Angeles so there's less agriculture than there could be (related: the movie Chinatown)
"But in the 1980s, disaster struck. Growers over pumped the coastal groundwater, allowing saltwater from the Pacific Ocean to seep in below their fields, up through the roots of the berry crop."
It doesn't seem likely that a similar change would happen elsewhere without a similar crisis.
for which the "unit cube"(block?) would be like 1" x 1" x ~2300 miles by my (fast, bad) calculations.
Farmers in Pajaro will pay $500 per acre-ft (3.3e5 gal) of non-potable recycled water in 2024. By contrast, a New York City resident paid $5,000 for the same volume of potable water and attached sewer charges in 2023.
Estimating irrigation requirements at 1.5 inches per week for 24 weeks, if I add 3 acre-ft of water for $1,500 to a 2014 report on the economics of strawberry production in Oregon (https://agsci.oregonstate.edu/sites/agscid7/files/oaeb/pdf/A...), the costs of growing (dominated by labor for picking (60-70%), followed by land preparation and planting (20-25%)) would increase by 7%.
Elsewhere, some estimates show as few as 12 weeks to grow strawberries, or that California acres have 5x the yield of Oregon acres. For strawberries (yield $25,000 per Oregon acre with plasticulture), it seems easy to absorb the $1,500 cost of water. Other crops (TIL: alfalfa, wheat, corn, soy, oat, rice: yield up to $1,000 per acre, need 2-5 acre-ft of water per acre) and other locales will have a different calculation.
Ultimately, farmers in different places will face different economic landscapes considering: sun/land, air, water, labor, market access. Where land and water are expensive, only high-value (possibly high-labor) crops make sense; where land and water are cheap, lower-value (and low-labor) crops and scale may make more sense.
I'm pretty sure the colony that lives by me has been exporting them (given the number of babies and new dams I've seen) but they're not likely to cross the Rockies on their own.
In Australia water has financial value as an asset class and is bought and sold, in a futures model as well as at time of use (irrigation)
I just think you're wrong on so many levels. Only primary mining can be said to not pay for anything in this model and they pay rent and royalties and other costs.
https://www.ers.usda.gov/webdocs/DataFiles/100812/commodity_...
Also, that document only refers to export value and not production. Most agricultural production in the US is not exported.