Drought dries up business for contractors in Sacramento Valley’s rice industry
On a normal rain year, the cracks would be sealed and the holes filed. But in the fourth year of
"Our business has been down 50 percent since 2012," said
For small businesses like Taylor's that cater to
Last year, 434,000 acres of rice were planted statewide, compared to 567,000 in 2013, said
The
"We anticipate this year will be at least as challenging as last year, when about one-fourth of the rice acreage was not planted," said Morris. "We won't have any estimates on the size of the crop until water allocations are finalized this month." Last year, more than 100,000 acres of rice were fallowed.
For a crop duster like Taylor the drought has meant a deep cut in income. Worse yet is the insecurity that comes with waiting for water allocations. In Taylor's case, it means he spends more time watching and waiting rather than buying and hiring.
Normally in April, he is gearing up to drop rice seed, herbicides and fertilizers on fields of about 30 clients spread from
In 2012, Taylor dropped rice seeds on 22,200 acres. In 2013, it dropped to 16,000 acres.
Last year: His yellow AT-602 crop duster flew over only 12,000 acres. "That's a big drop for us," he said.
Taylor said he is making up for the income loss by laying off two employees and buying used plane parts instead of new ones. His wife,
The future looks so uncertain that Taylor is selling one of his two planes.
As for the single plane Taylor is keeping, it will endure bumpier landings, since the runway will not be repaired and he is postponing the purchase of new airplane tires.
"You do what you have to do," said Taylor.
And, he added, "It's not just me. It's the trucker and herbicide maker, and the mechanic (who) are feeling it. It's a trickle-down effect."
In normal rain years, Corral operates the 10 trucks he owns and subcontracts out another 50 trucks. This year, he will only operate his own vehicles.
"The people we lay off are the subcontractors," Corral said. "It's these little guys ... who will be in a world of hurt this year."
Hard choices loom for Corral if the drought continues next year. He said a continuing drop in his hauling contracts will force him to seek employment as a driver for someone else.
The drought has also affected those who provide aviation insurance to crop-dusting companies, said
On a normal rain year, Gault said, crop dusters have enough business to keep their planes insured throughout the year. During lean times, some crop dusters choose to remove planes from insurance plans to save money.
"I've been in business since 1979 and this drought, for the ag side, has been the hardest," said Gault.
Insurance is no small cost for crop dusters. Annual premiums can run from
Farmers, awaiting word on their water allocations, have not been able to tell contractors like Taylor and Corral how much work they can expect going forward.
Last year Butler got 75 percent of his annual water allocation; this year, he hopes to get at least that amount, which would enable him to plant 2,800 acres of rice.
"You can't just put an employee on hold for six months and say 'I'll call you next spring,' and expect them to be there," said Butler. "This is not the kind of work where you can just snag people off the street."
Ultimately, Butler said he believes that rice industry contractors stand to lose the most if farmers cut back.
"The employees of the farmers and the people that farmers do business with, they will suffer more than the actual farmer," said Butler. "The farmer can eliminate his employees and get rid of equipment to insulate himself, but the employees and other businesses are just stuck facing a much lower income."
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