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Fallout from Valley dry spell could affect beef prices

- The Fresno Bee

Wednesday, Jan. 18, 2012 | 10:34 PM

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For nearly two months, Valley farmers and ranchers have been praying for rain to grow native grasses and give the region's parched soil some much-needed moisture.

And while their prayers may be answered this week with a storm that could bring up to an inch of rain to the Fresno area by Friday, it does not mean their worries are over.

"It is the start of a possible solution, but in a way we are just starting from scratch in terms of grass production," said Kevin Kester, president of the California Cattleman's Association and a rancher in Parkfield, southwest of Coalinga. "There are a lot of places that are completely dried up."

Sixty days of no rain in the Valley has left the region's rangeland dotted with dry grass and nut and fruit orchards with little to no moisture in the ground. The dry spell has forced some farmers and ranchers to pay high prices for hay to feed their animals or get irrigation water delivered months ahead of the regular season.

The added cost could cut into farmers' profits. And if local ranchers have to trim their herds for lack of grass on grazing land, it could mean higher beef prices at the meat counter.

Nut and fruit growers are fretting what no rain now will mean later in the year.

Growers need to get water into their orchards to prepare them for the warm season, said David Doll, a University of California farm adviser in Merced County specializing in almonds. "Because what may happen during that first hot week in April or May is that without deep moisture, the tree will start to wilt and stop growing."

That can mean fewer nuts or fruit per tree, reducing a farmer's potential for a good season.

The Sanger-based Kings River Water District has been providing water to its farmers over the last three weeks. The district normally starts its water deliveries at the end of March.

"It is almost unheard of to be delivering water in January," said Richard Cosgrave, secretary-treasurer of the water district. "But it has been so dry and we are getting requests for water."

Ranchers of beef cows and sheep who can't find healthy rangeland are feeding their animals hay or moving them onto lands with adequate grazing. But that is becoming tougher to do.

The Fresno State agriculture program has about 200 cattle on leased land near Coarsegold and has fed hay to its cows on a limited basis. Hay prices are hovering around $300 a ton -- a high price for hay.

"Basically there is no green grass anywhere," said Randy Perry, an animal science professor at California State University, Fresno. "And we are at a real critical stage right now. If we don't start getting some decent rain pretty soon, things are going to get real tight and people will have to start selling their herds."

That is already happening at the Fresno Livestock Commission. Owner Cindy Tews said she has seen an increase in cows being sold for meat.

"What we are seeing is guys tightening their belts a little sooner than normal because of a lack of feed," Tews said. "But if something is not producing or it is not gaining weight because there are no natural grasses, then that cow will get sold."

California cattle industry officials are hopeful the situation will improve, but they are also aware they are at the whim of Mother Nature. If the region's dry spell continues, and farmers reduce the size of their herds, it could cause prices at the grocery store to rise.

Stevie Ipsen, spokeswoman for the California Cattleman's Association in Sacramento, said the nation's herd is at its lowest level since the 1950s. The numbers have dropped, in part because of droughts in California several years ago and one last year in Texas. The droughts have contributed to a rise in beef prices -- up 9.8% in November (the most recent statistics available) compared with a year earlier.

"If the size of the cow herd is cut further, supply and demand dictates that prices for beef could continue to rise for consumers," Ipsen said. "Ranchers in California have been trying to build back their herds to meet the demand, but a lack of rain could stall that growth."


The reporter can be reached at brodriguez@fresnobee.com or (559) 441-6327.

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