Frank Imhof, a Sunol cattleman is checking the weather constantly. If he doesn't get rain soon, "lots of people are going to be out of a job," he says.

He's considering culling nearly 40 percent of his breeding herd and selling calves that are four to five months short of their market weight, because he doesn't have enough grass in his pastures to feed them.

On Friday, amid California's driest year on record, Gov. Jerry Brown declared a drought emergency in the state. As days pass without snow or rain, dairymen, farmers and other livestock producers are finding themselves in the same predicament as Imhof. Without water to irrigate, produce growers fear they will have to leave some fields fallow.

Ranchers and farmers say that as long as the drought continues, the nation's largest agricultural state will remain in turmoil, with repercussions stretching to consumer pocketbooks in the form of higher prices for such basic staples as meat, milk, fruit and vegetables.

"If it doesn't rain in another month there will be ranchers and farmers going out of business," Imhof said.

For most, there is little to no financial relief or government aid to bail them out. Only 35 of California's 400 crops are eligible for farm insurance, said Karen Ross, secretary of the state Department of Food and Agriculture. Almonds, corn, cotton, citrus and avocados are a few of those crops. Livestock operations are not.

No farm bill

And without the passage of a farm bill, most federal disaster relief programs are not available. Federal lawmakers, still wrangling over a dairy price program, are more than a year overdue passing the bill. The 2008 bill, which included everything from farm subsidies to food stamps, expired in autumn 2012, but was extended until Sept. 30, 2013. The legislation typically carries provisions, offering cash remedies to livestock producers - especially cattle - devastated by natural disasters.

"We're hoping that a bill is passed and those programs are retroactive," Ross said. "But California doesn't have the money to duplicate those federal funds."

The U.S. Department of Agriculture is offering low-interest loans of up to $500,000 to growers and ranchers. The agency also administers the Noninsured Crop Disaster Assistance Program. Ranchers and farmers participate by paying $250 a year, and in hard times are eligible to receive a small percentage of their losses.

"It's not designed to make people whole," said Val Dolcini, California's executive director of the USDA's Farm Service Agency. "But it's more than a little something."

Luckily for Imhof, the wheat hay he grows to help feed his 200 head of cattle is insured. Without rain, there is little likelihood of a harvest.

"We've never bought crop insurance before," said Imhof. "But for some reason, when we planted, my wife said, 'We're getting insurance.' I guess God was trying to tell her something. I only wish God would tip me off on a horse at Golden Gate Fields."

He needs the winnings for the $5,000 he spent on hay - 24 tons he had trucked in from El Centro (Imperial County).

Some cattle ranchers are going as far as Utah for their hay, but an additional $85 a ton for freight can make that cost prohibitive, said Darrel Sweet, a Livermore cattleman. For now, he's buying feed and holding off on selling stock.

"Hope springs eternal," he said. "When you sell off your breeding heifers it takes three to four years to replace that income. I'll have to think long and hard before I sell them off. The long-term ramifications are too big."

But he knows that paying those feed bills isn't sustainable for long.

Robert Giacomini, a Point Reyes dairyman, said, "We're not ready to jump off the bridge yet, but we're very, very concerned."

He is not just worried for his 800 animals, but he's also wondering whether his farm will have enough drinking water since he relies on a well.

"If we don't get rain in the next two months that could become a problem," he said.

New troubles

Michael Marsh, CEO of the Western United Dairymen, said family dairies were just starting to recover from a series of financial pressures, including low milk prices and astronomical grain costs due to high demand for corn. Milk prices are up and corn costs have come down considerably.

"But now this," he said, adding that most dairymen grow feed for their cows in addition to pastures. With nothing to water their grass and crops, dairy farmers, like beef ranchers, are forced to buy hay. Those costs will eventually be passed on to consumers, Marsh said.

But no matter how bad things get, farmers are eternal optimists. "We have a saying in the industry: Tomorrow has got to be better than today."

Unfortunately for the San Joaquin Valley, where much of California's food is grown, tomorrow could get much worse if there is no rain. Even before the drought, the Central Valley had water issues and this only exacerbates the situation.

"Annual crops like melons and vegetables may not get planted," Ross said, adding that if that happens, local produce will be at a premium. "Yolo and San Luis Obispo counties (important agricultural producers) are also running very dry."

Wine grape growers in Sonoma County remained circumspect.

"We're concerned, but not at panic stage yet," said Karissa Kruse, a grower and president of the Sonoma County Winegrape Commission."

Norm Groot, executive director of the Monterey Farm Bureau, said that his county is in better shape than much of California because of its two major reservoirs - lakes Nacimiento and San Antonio. The Salinas Valley is the most agriculturally productive region of California, known as the Salad Bowl of the world. Lettuce, spinach, strawberries, artichokes and wine grapes are among its top crops.

"For now, we're OK," Groot said. "But if the drought persists, we may not be. In four months we'll reevaluate, and at that time decide wether to leave fields fallow, specifically the annual crops like leafy greens and other vegetables."

Even with his cattle ranch in jeopardy, Imhof too is trying to take the pressure in stride. His wife, however, is a different story. "She says her next husband is going to be a computer guy."

Source - http://www.sfgate.com/

USA - California drought: Farmers, ranchers face uncertain future

On Friday, amid California's driest year on record, was declared a drought emergency in the state. As days pass without snow or rain, dairymen, farmers and other livestock producers are finding themselves in the same predicament as Imhof. Without water to irrigate, produce growers fear they will have to leave some fields fallow. Ranchers and farmers say that as long as the drought continues, the nation's largest agricultural state will remain in turmoil, with repercussions stretching to consumer pocketbooks in the form of higher prices for such basic staples as meat, milk, fruit and vegetables.