California Farmers Face Rising Costs and Uncertain Future

California farmers Craig Underwood and Larry Thorne recently shared their challenges with rising fuel, energy, and labor costs, which threaten the future of agriculture in the state.

Thorne has been farming in Malibu for nearly 80 years, witnessing the Pacific fog roll in over his fields. However, now he faces significant challenges due to soaring diesel prices, increasing electricity rates, and a regulatory environment that many local farmers see as a “master plan” to push the working class out of California.

As the last remaining farm with a million-dollar estate in his area, Thorne feels the pressure as the Mediterranean climate can no longer provide the relief it once did. “California’s state government is completely silent when it comes to energy,” he remarked on a bright morning during an interview. “For decades, we’ve been told to ‘go big or go out.’ Those who tried to expand are still around, but small farmers struggle.”

About 40 minutes north lies Underwood Family Farms, managed by 83-year-old Navy veteran Craig Underwood. With over 50 years in Ventura County’s soil, he recalls market crashes and droughts but has never encountered prices this high—$70 strawberries and $1,600 per acre just for regulatory costs on a head of lettuce. “Each year, we try to cut costs, but they keep rising, and we’re earning less,” he explained, echoing the tough economic climate that many farmers are feeling, reminiscent of the struggles in the 1980s.

These farmers embody a diminishing lineage in California’s agricultural sector. They confront the harsh reality of nearly $7 per gallon diesel and pressures to transition to electric machinery, which the current power grid may not support.

“When I was a child, diesel was just 5 cents a gallon,” Thorne recalled. “In just three years, costs for seeds, fertilizers, and fuel have skyrocketed by at least 25%. Transporting vegetables, once around $60, now costs me about $200. It’s the transportation costs that hit consumers hardest.”

Despite their different farm sizes, both men share a deep commitment to their work. Thorne recently picked ripe strawberries, savoring their rich flavor, while Underwood highlighted various events at his farm, including a Spring Festival featuring a wide selection of pick-your-own produce. Their love for agriculture shines through, yet concerns remain that regulations and fluctuating costs may favor the wealthiest, sidelining everyday families and smaller businesses.

Thorne expressed worry that state policies seem designed to shrink California’s population from 40 million to just the wealthiest individuals who can afford high living costs. “It appears to be a systematic plan to drive people out,” he stated. Meanwhile, Underwood emphasized how high costs would lead to unfulfilled export plans and disrupt the entire supply chain. “Transportation adds significantly to food costs,” he explained.

Currently, California gas prices are among the highest in the nation, a result of heavy taxes, low-carbon fuel standards, and limited refinery capacity.

The state aims for a 100% electric future by 2035, but previous legislative efforts to enact mandates were blocked. Underwood pointed out the considerable regulation costs, estimated at $1,600 per acre for growing lettuce, leaving farmers with slim profit margins, often between $100 and $200. The average age of farmers is now 60-67, and acquiring modern equipment has become a major financial burden.

Both farmers acknowledged it might be cheaper to move their operations out of state but are reluctant to give up the unique California climate that allows them to grow certain crops. “We can’t grow strawberries or avocados in Nevada,” Thorne said. “Our climate is unmatched.”

As farming merges into both business and a lifestyle, Underwood affirmed that resilience is key. “We will overcome these challenges, just as we have before.”

Thorne and Underwood are advocating for a return to practical energy solutions, calling for investments in refineries and nuclear power instead of enforced electrification. “We need refineries built as quickly as possible,” Thorne asserted. Underwood echoed this sentiment, urging the state to prioritize the needs of small businesses and consumers over large energy companies.