High-priced land, expensive equipment and cheap foreign imports
that undercut local farmer’s profits make it tough for newcomers
who want to sow their future in agriculture to break into San
Benito County’s number one business.
On average, fewer than five new farmers start working land in
the county each year, according to San Benito County Agriculture
Commissioner Paul Matulich.
Hollister – High-priced land, expensive equipment and cheap foreign imports that undercut local farmer’s profits make it tough for newcomers who want to sow their future in agriculture to break into San Benito County’s number one business.
On average, fewer than five new farmers start working land in the county each year, according to San Benito County Agriculture Commissioner Paul Matulich.
“Our numbers stay pretty much the same,” Matulich said.
The number of acres available for row-cropping are limited in the county, and the large amount of capital required to buy land and equipment may discourage some prospective farmers, according to Matulich.
“New farmers must be able to acquire the capital in order to start, and this business is capital intense,” said Greg Renz, a life-long San Benito County farmer. “Capital investments for machinery alone can cost millions.”
According to Mitt French, who runs day to day operations at San Benito County Cattle, a major blockade to prospective farmers is the price of land, which is shooting up as the state continues to increase in population and development.
“California is difficult because of land prices, which have increased due to urbanization,” he said. “It’s very difficult unless you own property.”
Also, he added, competition from foreign countries also makes it difficult to get started in the farming business.
Joe Tonascia, who has been farming in the county for more than two decades, agrees that finding land to farm on is a major challenge for those trying to break into the business.
“Farmers in San Benito County have to compete with developers and other farmers for land,” he said.
And even when land is available, he added, getting a loan to purchase it can prove daunting.
“It’s hard to find financing. Lenders require a lot of collateral – either property or cash,” he said. “Renting land does not give you collateral.”
Not only are new farmers not starting up in San Benito County, there are fewer farmers in the county than there were five years ago, according to Paul Hain, President of the San Benito County Farm Bureau who grows organic walnuts and raises free range chickens.
“If someone wants to get started in farming, they have to be born into it, marry into it or rent the land,” he said.
San Benito County is not unique. Even in the Midwest – America’s Corn Belt – high priced land is keeping people from becoming farmers.
Steven Ford, a farm-loan manager for the Farm Service Agency in Normal, Ill. said that he’s seen fewer and fewer aspiring farmers.
“A couple years ago … prices were maybe $3,500 an acre,” Ford said. “At this point they’re $4,500 an acre or more. It’s definitely dropped off to minimal interest.”
Back in San Benito County, French has some unfortunate advice for people considering becoming farmers.
“If you want to make money, you don’t get into farming,” he said.
The Christian Science Monitor contributed to this report.
Luke Roney covers politics for the Free Lance. Reach him at 831-637-5566 ext. 335 or at [email protected]
