California farmers are facing tough times ahead with regulations, drought and water rights issues. Nearly 88 percent of the state is consumed by drought, and state water regulators are hopeful as it announces water allocations for the coming year.
Dairy farmers in the state are feeling the squeeze. The Federal Agricultural Mortgage Corporation, or Farmer Mac, believes while the ag economy is feeling the pressure right now, this is nothing new to farmers out west because regulations that impact all of agriculture usually start in California.
“They’ve been preparing for these issues over the last 40 years,” said Curt Covington, senior vice president of Farmer Mac. “California farmers probably are more able to deal with those kinds of things because they’ve been dealing with it since the 60s.”
According to Covington, farmers have seen the worst regulations and things will start to turn around for that sector in 2017.
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