California Strawberry Commission Economic Impact Report by SantaCruzSentinel


									Sustaining California Communities
Economic Contributions of Strawberry Farming

California Strawberry Commission Report | february 2014

Strawberry farming is responsible                 California’s 400 family strawberry farmers:
for raising the standard of living                • Create 70,000 jobs
                                                  • Grow nearly 90% of U.S. strawberries
and elevating the quality of life
                                                  • Invest 97 cents of every farm dollar back into
throughout California’s Central                     the community
Coast and around the state.                       • Pay taxes that support teachers, police and firefighters
                                                  • Contribute time, financial resources and in-kind
                                                    contributions to food banks and dozens of other
                                                    charitable groups
  “Without the support of the strawberry
                                                  • Provide college scholarships for children of
   industry, we would have to look                  strawberry farm workers
   elsewhere for business, which would
   make it a challenge for our firm to
   maintain an office in Watsonville.”
                               – lee hanna
               Partner, Hutchinson & Bloodgood
               LLP Certified Public Accountants

Blessed with perhaps the best                     • Strawberries are California’s fourth highest value
                                                    crop and the sixth overall agricultural commodity
geography on the planet for                         (which includes meat and dairy).
sustainably growing strawberries,                 • Strawberries are California’s #1 crop in value
California farmers continue to                      per acre.
                                                  • This value is produced on fewer than 40,000
lead the world and United States
                                                    acres – less than one percent of all California
in strawberry production.                           farmland.

• If California were a country, it would be the   • Strawberry farms in other countries rely on
  world’s largest producer of strawberries.         seedlings from California nurseries: they export
                                                    more than a billion plants annually around
                                                    the world.

Strawberry farming creates                            On-Farm                  Education & Manufacturing
70,000 California jobs.                               • Supervisor             • Researchers
                                                      • Foreman                • Extension and outreach
Strawberry farming is responsible for generating an
                                                      • Shop mechanic          • Agriculture teachers
estimated 70,000 jobs throughout the Golden State.
                                                      • Tractor driver         • Input manufacturers
Strawberry-related jobs span nearly 30 different                                 and distributors
                                                      • Irrigator
categories throughout the state’s economy – from                               • Equipment manufacturers
                                                      • Pest control advisor
exporters and grocers to university researchers and
                                                      • General labor          • Packaging manufacturers
harvesters in the field. These jobs create upward
mobility in communities throughout California.
Delivery & Distribution
• Freight drivers         • Logistics
• Compliance officers     • Human resources
• Quality assurance       • Information technology
• Packaging               • Retail
• Marketing               • Food service
• Sales                   • Exports
• Cooler management

About 35 percent of the crop                       Strawberry farms are also responsible for
                                                   many other jobs around the state. These
value goes to pay the cost of labor.               include the jobs in strawberry nurseries in
California’s 400 strawberry                        Northern California, firms that provide fertilizers,
                                                   pest controls, fuel, equipment, and packaging.
farmers employ a massive labor
                                                   Additionally, there are the workers who deliver
force – an estimated 70,000                        strawberries within California, to all the regions
seasonal farm and non-farm jobs.                   of the U.S. and to foreign consumers.

Jobs                                               Taxes
The average on-farm strawberry job pays more per   Strawberry farming generates an estimated
hour than the average shopping mall job or food    $108 million in annual tax revenue. This in turn
service job.                                       supports local, state and regional government services.

                                                   In some regions, the annual payroll taxes of
                                                   strawberry farmers is about the same as the salaries
                                                   of all of the elementary school teachers in the area.
       What happens to Strawberry Farm Revenue?

                                        97¢ to Community                                                          3¢ to Farmers

     35¢                              20 ¢                     25¢                5¢ 5¢ 7¢ -2¢ TO +7¢

   Farm labor*                     Land rental,           Inputs: Irrigation,                            Average return = 3¢
                                 soil preparation           fuel, fertilizer
                                     & plants*              & packaging*                       Regulatory paperwork costs

Source: Sample Costs to Produce Strawberries, University of California
                                                                                       Services & equipment rental
Cooperative Extension, 2010 & 2011
* These include additional regulatory compliance costs.                         Organic & chemical plant care*
                                               “Strawberries are a big part of our
                                                commitment to nutritional health for
                                                our students and we value all that our
                                                farming community does for us locally
                                                in Santa Maria.”
                                                                             – liz powell
                                                                 Coordinator for Food Services
                                                           Santa Maria-Bonita School District

“Without the support of the strawberry
 employees my dealerships would have
 to look elsewhere to replace those
 prospects and quite honestly it would
 put the city of Watsonville in a very
 difficult economic situation.”
                       – rocky franich
             President, Marty Franich Ford &
                         Chrysler Jeep Dodge
“We depend on our local strawberry
 growers and their workers to
 support and patronize our
 local businesses.”
                        – julio barrera
    President, Julio’s Auto Insurance of Oxnard

                                                  “Without them we would
                                                   not be in business.”
                                                         – richard cowell
                                                         Rancho Nipomo BBQ &
                                                            Cal-Mex restaurant
                                                 BUILDING LOCAL ECONOMIES AND
                                                 COMMUNITIES : A $ 3.4 BILLION IMPACT

                                                 Strawberry farming has a
                                                 multiplier effect that leads to
                                                 more jobs and more income
                                                 beyond the farm.

                                                 Overall Impact
“California strawberry farming is
                                                 The direct impact is $2 billion. An estimate of the
 a tremendous asset to the state and             economic impact from dollars that move off the
 nation. The dollars that come into              farms is $1.4 billion. This makes strawberry
                                                 farming’s total economic contribution $3.4 billion.
 strawberry farms go back out as wages,
 land costs, payments for farm inputs            Supporting Communities
 and services, regulatory costs, and             Additional economic impact also generates more
 property and business taxes. The                jobs, tax receipts that support public services, and
                                                 diversification of the economic base.
 workers and farm suppliers then spend
 these dollars, injecting these dollars into
 wages, purchases of goods and service,
 and taxes. These circulating dollars
 in the private sector and the outlays
 of tax dollars generated by strawberry
 farming on schools, libraries, roads
 and public safety, build local economies
 and communities.”
                      – jim schaub, ph.d.
            Economist, James Schaub Consulting
                       Economic Multiplier Effect
                                                                                                            $3.4 billion economic
                                                                                                            contribution generated
                                                                                                            by California strawberry

                 Contribution is $3

                                   .4 Bi
 otal Stra                              llion
                                          rs               Local Busin
                               zer, Tracto
                        Fertili ms, Trucks,              Restaurants ess:
               x         Unifor rs, Tools,                            ,
                                                        Dealers, Rea Auto                   Pu
           , Bo ds,
        ing ailroa
                          Conta ngs, etc.               Health Care
                                                                     ltors,              Poli blic Se
     ck R                       edli                                                         c        r
  Tru nies, uses,           Se                                      , etc.              Park e, Tea vice:
      a       o    .                                                                  Libr s, Ro chers
   mp reh etc                                                                             arie ads
 Co Wa ailers,                                                                                s, e .
            t                                                                                     tc.       Indirect impact of
                                                                                                            strawberry farmers is

                                                Equipment                                                   $1.4 billion
                                        Farm                  Labor
                               Land    Supplies                         s
                           g    Cost
                     cka ing
                                                                                 es                         Direct impact of
                   Pa hipp
                     &S                                                                                     strawberry farmers is
                                                                                                            $2 billion

                                                                                                            Nearly 90% of US-grown
                                                                                                            strawberries are from

                                                                                                            70,000 jobs created

                                                                                                            Approximately 400 family-
                                                                                                            owned strawberry farms

In 1994, California strawberry
farmers created a scholarship fund
to help children of strawberry
farm workers to pursue their
dreams though higher education.
Since that time, an estimated 1,500 children of
strawberry field employees have been awarded nearly
$2 million in scholarships for higher education and
trade schools. Many are the first in their families
to attend college. Every penny makes a difference
in helping them achieve their goals.
“A lot of farmers are very generous and
community-minded. Their involvement
extends well beyond the crops they
grow and the jobs they create. They
offer hands-on support to make our
community a better place to live.”
                                   –ed schatz
                 Chief Operating Officer, Foodbank

In addition to their role in creating jobs, generating
taxes and boosting the state economy, California
strawberry farmers also play a vital role in their
communities – generously providing time,
leadership, financial resources and in-kind
contributions to local non-profit organizations.

Strawberries represent a true                           In Northern California, roughly 2 billion plants
                                                        are nurtured in open fields from October to February.
California success story. From                          Hardy, healthy nursery plants are then shipped to the
inception to harvest, the entire                        Central Coast – considered the world’s premier
                                                        bioregion for growing strawberries.
lifecycle of a strawberry begins
                                                        Every step of the way, hundreds of communities
and ends in California.                                 rely on strawberries for jobs, income and tax revenue
Leading university and private plant breeders           necessary to sustaining families, businesses and
establish cuttings and plants raised in nurseries       local economies.
from the Central Valley to the Oregon border.

The strawberry industry is critical to                  “Our restaurant depends on the strawberry
Santa Maria and to our hotel’s success . . .             growers and shippers who patronize our
We definitely have a strong relationship                 local restaurant…Without them, we would
with our local strawberry growers.”                      not be in business.”
                            – karen gridiron                                  – kevin & gee kajihara
       Director of Sales, Radisson Hotel, Santa Maria                      Owners, Imura Sushi, Wastsonville
             From San Diego to Mt. Shasta: A California Native

                                  1   Seedlings are grown in
                                      nurseries from Stockton
                                      to Oregon border.

                                                          2     Researchers develop natural
                                                                varieties of plants at the
                                                                University of California, Davis.

Seedlings are delivered   3
to the Central Coast
growing regions.

A number of key factors have
helped make California the heart of
the nation’s strawberry production
and made it possible for just 400
family farmers to produce nearly
90 percent of all the strawberries
grown in the United States.

Generations of Skilled Farmers
The state’s farmers draw on generations of expertise
that benefit from these prime growing conditions.
Many have learned their trade from parents and
grandparents especially among Mexican-American
and Asian-American farming families, who account
for an estimated 85 percent of all strawberry farmers.

Innovative Farming Practices
For generations, California strawberry farmers
have distinguished themselves as innovators who
embrace new technologies and opportunities. Whether
it’s pioneering drip irrigation, incorporating organic
methods or funding research, California strawberry
farmers are among the state’s most efficient – producing
nearly 90 percent of America’s strawberries on just
0.16 percent of California’s farmland.
              SANTA                                         A Unique Region
              CLARA                                         Throughout the growing process, California’s ideal
                            SANTA CRUZ                      climate plays a significant role in the success of
                                                            strawberry farming. First, hardy young strawberry
                                                            plants are raised with cold temperatures at Northern
                                      SAN BENITO
                                                            California nurseries. Once they are ready, the plants
                                                            thrive in fields near the coast, where warm sunny days,
                       MONTEREY                             cool foggy nights and moderate temperatures combine
                                                            with sandy soil to create perfect growing conditions.
                                                            California’s primary production regions stretch
                                  SAN LUIS                  along the coast, delivering strawberries to market
                                                            throughout the year.

                                                        VENTURA        LOS ANGELES


                                                                                              SAN DIEGO

“Successful players in the coming years will embrace growing
 demand with greater production efficiencies and innovation,
 taking advantage of new varieties and technology advancements.”
                                              – karen halliburton barber
             Author of “The U.S. Fresh Berry Boom – Who Will Profit from the Growth?”
                                                     (Rabobank Report: Nov. 1, 2012)
California Communities are Strawberry-Powered
with a $3.4 Billion Economic Contribution.
           Sustaining California Communities
California Strawberry Commission Report | february 2014

 P.O. Box 269, Watsonville, CA 95077-0269 · P: 831.724.1301 · F: 831.724.5973
           info @ ·

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