UNIVERSITY OF CALIFORNIA • COLLEGE OF AGRICULTURE AGRICULTURAL EXPERIMENT STATION BERKELEY 4, CALIFORNIA ■ FARMING IN CALIFORNIA FOR THE NEWCOMER ARTHUR SHULTIS December, 1944 UNIVERSITY OF CALIFORNIA • BERKELEY, CALIFORNIA CONTENTS Page Introduction 3 Climate 3 Soils 3 Irrigation 6 Agricultural regions 6 1. North coast 6 2. Central coast 7 3. South coast 7 4. Sacramento Valley 8 5. San Joaquin Valley 9 6. Mountain region 9 7. Desert region 10 Types of farms 11 Fruit farms 11 Field-crop farms 12 Poultry farms 13 Dairy farms 13 Livestock farms 14 Vegetable farms 15 Size of farm business 15 Large farms 16 Two-family farms 16 Family farms 16 Part-time farms 17 Small farm homes 17 Entering California agriculture 18 Farm labor 18 Contract work 19 Leasing IS Buying a farm 21 When to buy 21 New or old farms 21 Capital required 22 Financing the farm 23 Selecting the farm 24 Buying the farm 24 Farming in California 24 Acknowledgments 25 California Agricultural Extension Service offices 26 FARMING IN CALIFORNIA FOR THE NEWCOMER ARTHUR SHULTIS' INTRODUCTION What are the opportunities in California agri- culture, and how does a farmer become established? Questions like these are being asked by veterans, war workers, and others in search of new homes and occupations. This booklet will briefly describe the agriculture of this state and will offer a few suggestions to those who are planning to farm here. Sources of further information are frequently mentioned in the pages that follow. University bulletins and circulars are obtainable without charge from the University of California College of Agriculture, Berkeley 4, California, and usu- ally from the county offices of the Agricultural Extension Service, as listed at the end of this publication. The farm advisors and their staffs, called county agents in other states, represent the University of California College of Agricul- ture and the United States Department of Agricul- ture. They have factual information regarding local agriculture and will do their best to as- sist newcomers. Returning veterans will receive special service from the County Veterans' Farm Advisory Committee, of which the farm advisor is chairman. Most publications of the United States Department of Agriculture are supplied free by the offices mentioned above and by the Division of Publications, Office of Information, United States Department of Agriculture, Washington 25, D.C. All federal publications are obtainable from the Superintendent of Documents, Government Printing Office, Washington 25, D.C, for the small charge mentioned in the listing. California has a wide range in latitude, ele- vation, topography, and climate. Within its 155,652 square miles are many areas whose dif- ferent soils, rainfall, temperature, and other features result in a very diverse agriculture. It also contains mountains and deserts not suit- able for farming. Although it ranks high among the 48 states in total value of agricultural products — first in some years and second to Iowa in others — only 30 per cent of its land area is in farms, and only about 7 per cent is in har- vested crops. The high returns obtained from a limited area are due to a warm semiarid climate, irrigation, fertile soils, and productive graz- ing lands. CLIMATE California offers a great variety of climate, from the hot, dry, southeastern desert to the Extension Specialist in Farm Management and Associate on the G-iannini Foundation. cool north coast and the cold winters in the mountains on the north and east. As the map in figure 1 will show, diversity of climate results from the location and topography of the state, the adjacent Pacific Ocean with its moderating influence, the mountain barriers, and the great range in latitude from north to south. The re- sulting local differences in rainfall, summer and winter temperatures, length of growing sea- son, wind, humidity, and fog largely determine the crops and types of farming. Differences in frost hazard occur in small distances within an area, with resulting differences in the crops that may be profitably grown. Anyone planning to buy a particular farm should investigate the climate and weather hazards of the area. The climate in certain areas is doubtless more pleasant to some persons than to others. Some prefer the hot, dry interior;- others the cooler and more equable climate along the coast. A prospective settler should select a region for further investigation and trial, on the basis either of climate or of kind and type of'farming. To help in this choice, sample weather data have been prepared. These are presented in table 1 for typical stations in each of the seven major agricultural regions that appear on the map in figure 1. If climate means much to a newcomer or would affect his health, he might well spend a year in the area selected, before making his choice permanent. SOILS The soils of California are exceedingly vari- able because of differences in parent material, method of formation, climate, age, and location. As for method of formation, there are two main types: (l) the residual soils in the hills and mountains, formed in place from the underlying rocks; (2) the transported soils in the valleys, built up there by material largely deposited from water. The upland or residual soils are somewhat weathered and eroded. They are rather shallow — usually not more than 3 or 4 feet deep over bed- rock. They occupy most of the Coast Range and slopes of the Sierra Nevada and other mountains. Being almost entirely on hillsides, where topog- raphy makes irrigation difficult or expensive, and being too shallow or hazardous for dry farm- ing, these soils are seldom used for crop pro- duction. Where rainfall is adequate, they bear a good forest cover; elsewhere they support only brush or grass. Their main agricultural use is in the pasturing of range livestock, from 5 to ever 20 acres being needed to support a mature cow or steer for one year. Some of the foothill [3] TT i 6" ° °^ V^ MAJOR AGRICULTURAL AND CLIMATIC REGIONS 1. North Coast 2. Central Coast 3. South Coast 4. Sacramento Valley 5. San Joaquin Valley 6 . Mountain 7. Desert _»•- SCALE y ii M? y t 7 r t m,les -M»- ..[• Fig. 1. --Major agricultural and climatic regions of California. (Base map compiled by United States Bureau of the Census. TABLE 1 Sample Weather Data Representing Major Agricultural Regions in California* Eleva- tion Average annual precipi- tation Frost- free growing season Temperature Region and weather station Annual average All-time high All-time low 1. North coast 2. Central coast San Luis Obispo .... 3. South coast 4. Sacramento Valley 5. San Joaquin Valley Bakersfield 6. Mountain Alturas Yreka feet 62 167 45 300 133 851 67 136 327 404 4,446 2,625 -65 inches 39 30 14 21 12 11 20 16 9 6 13 17 4 days 277 204 256 316 304 270 271 251 289 274 69 129 302 51.6 56.9 56.4 58.6 61.7 62.8 62.6 62.3 63.1 64.6 46.8 51.4 71.9 85 112 110 110 112 118 118 116 115 118 105 112 124 20 15 18 20 22 21 19 17 17 13 -32 -7 7. Desert 22 *U.S. Weather Bureau. Climatic summary of the United States. California. Sections 15-18. 1934. areas, when irrigated and properly managed, yield commercial crops of fruit. The upland soils, however, are generally un- productive and restricted in crop adaptations as compared with the valley soils. Because of the great area involved and the low value per acre , one must be cautious about buying an abandoned or partially developed upland farm. Only a proved farm, in a locality that has an economic future under normal prices, would be a safe pur- chase on residual soils. The valley and terrace soils have been pro- duced largely by erosion of the mountains and upland soils from which they came. They make up the bulk of the farm lands of the state, the most extensive being the great interior valleys of the Sacramento and San Joaquin rivers and the southern California coastal plain from the sea- shore inland to Riverside and Redlands. There are, also, several large valleys in the coast counties, such as the Russian River, Santa Clara, Salinas, and Santa Maria valleys. Scattered throughout the state in the mountain, foothill, and desert areas are many other valleys contain- ing good soils washed down from the surrounding hills; these valleys contribute much to the ag- riculture of the region. The valley soils, although fertile as a group, vary in productivity and desirability. Some are coarse and poor; others so heavy and hard to work as to be limited in use. The older ones often contain, at depths varying from a few inches to a few feet, a layer of hardpan — an impermeable layer formed by the cementing together of fine soil particles and salts, which, over the years, have been leached to the same depth by the lim- ited seasonal rainfall. In such places, root and moisture penetration are largely limited to the soil above the hardpan, with resulting im- pairment of productivity and limitation in the crops that can be grown. The newcomer to Cali- fornia should insist on an examination of the soil, preferably to a depth of 6 feet; the greater the depth of the friable soil, the greater its productivity and the range of crops. Some of the low-lying soils where the water table is near the surface have accumulated a concentration of salts called alkali. These salts may, in extreme cases, render the soils worthless or limit their use to a few alkali- tolerant crops or to saltgrass pasture. Drain- age is a problem in some areas. There are also older terrace soils, less friable and lower in fertility than the more recent flood-plain soils. Even the highly fertile bottom lands may vary in productivity through coarseness of texture and other factors. Along some of the water- courses, flood hazard should also be considered. Since the soil of the farm may so definitely limit future success, the purchaser should de- C5] termine its nature, ease of handling, and pro- ductivity through actual inspection and local in- quiry. Most of the agricultural areas of California have been surveyed and mapped for soils by the College of Agriculture in cooperation with the United States Department of Agriculture. An individual farm may be located by its legal de- scription on these maps, and the general charac- ter of its soil learned. For areas of less than 30 acres, these maps should be supplemented by field inspection, since small areas of different and perhaps poor soils cannot be shown on a scale of 1 inch to the mile. Many of the area maps, with the booklets describing soil series and textures, are largely no longer obtainable for free distribution; but they may be seen in libraries, at the College of Agriculture, and at the county offices of the Agricultural Extension Service. Some of the counties have been covered by intensive land-use studies and mapped for recommended utilization, with detailed reports that may be consulted locally. Maps showing general land classes by quality or potential pro- ductive capacity may be studied at most of the local offices of the Agricultural Extension Service. A method of soil rating known as the Storie index may be applied to any soil or tract. 2 Most of the farming areas of the state have been rated roughly by this method, and maps of such ratings have been prepared. 3 IRRIGATION California as a whole is a semiarid state with an average annual rainfall ranging from less than 5 inches in the southeastern part to well over 60 inches in certain northwestern areas. Most of the farming is in valleys of low eleva- tion, receiving 15 inches or less of rainfall annually. Because this rainfall comes almost en- tirely during the cool winter months, intensive agriculture is largely dependent on irrigation. In 1939 some 84,310 farms, or about 64 per cent of the total, were classed as irrigated; and 57 per cent of' the land used for crops was under ir- rigation. Nonirrigated land in farms is devoted mainly to pasture or range and to small grains; but there is also some production of field, vege- table, and fruit crops. Very little additional land can be brought under irrigation without ex- pensive projects, since the easily available water is already fully utilized. Water, so es- sential to California agriculture, is often more precious than the land itself--land with water being sometimes valued at several hundred dollars Storie, R. Earl. An index for rating the ag- ricultural value of soils. California Agr. Exp. Sta. Bui. 556: 1-48. Revised 1937- (Out of print. Storie, R. Earl. Revision of the soil-rating chart. 4 p. California Agricultural Experiment Station. July, 1944 • (Litho.) "^Weir, Walter v., and R. Earl Storie. A rating of California soils. California Agr. Exp. Sta. Bui. 599: 1-157. 4 maps. 1936. (Out of print,) an acre, whereas similar land without water would be worthless. The purchaser of an irri- gated farm must look carefully to the adequacy, dependability, quality, and cost of the water supply. Newcomers to California will settle largely on irrigated land and will need to know or to learn the economics and science of growing crops _ under irrigation. The high costs usually in- ™ volved can be covered only by the income from in- tensive crop production. The water is measured in units of flow, such as gallons per minute, cubic feet per second, and miner's inch; or in units of volume--the acre-inch and the acre-foot. An acre-inch is enough water to cover an acre 1 inch deep and is equivalent to an inch of rain- fall on an acre. The amount of water required for irrigation will vary widely by crop and area--from a depth of a few inches, where only one or two applications are needed, to as much as 10 feet in the date gardens of the desert. In the Sacramento and San Joaquin valleys, irriga- tion requirements vary in depth from nothing for grain to 6 feet for certain irrigated pastures. Water for irrigation is obtained from streams, reservoirs, irrigation-district canals, and (by pumping) from irrigation wells. The cost per year will vary from almost nothing with some stream sources to $50 for the water for an acre in others. Beginners who wish to become familiar with irrigation in general may well obtain and study bulletins on the subject. 4 AGRICULTURAL REGIONS Farm lands in California occur mainly in the large interior valleys with their bordering foot- hills and on the seaward slopes of the Coast Range, but with mountains or distance separating them into areas. Natural barriers divide the state into several regions that vary in climate, topography, and soil, with resulting differences in local agriculture. A description of Califor- nia agriculture is simplified if one considers the seven major agricultural regions shown in figure 1, along with the sample weather data in table 1. A more detailed publication on this subject is available. 5 1. North Coast This region comprises the counties along or near the Pacific Ocean north from San Francisco Bay to the Oregon line. It is largely occupied by the Coast Range, with elevations seldom ex- ceeding 3,000 feet above sea level. The moun- ^ewis, M. R. Practical irrigation. U.S. Dept . Agr. Farmers' Bui. 1922: 1-69 . 1943- £ Veihmeyer, F. J., and A. H. Hendrickson. Es- sentials of irrigation and cultivation of or- chards. California Agr. Ext. Cir. 50_: 1-23. Revised 1943- 5 Crawford, L. A., and E. B. Hurd . Types of farming in California analyzed by enterprises. California Agr. Exp. Sta. Bui. 654_: 1-127- 1941. [6] tainous area is mostly covered with forest or brush, but includes considerable grazing land and many livestock ranches. Farming is largely lim- ited to the valleys and a narrow shelf along cer- tain portions of the coast. This is a region of comparatively high average rainfall, ranging in different areas from 20 to 60 inches; it has fairly early fall and late spring rains, but still a considerable dry period during the sum- mer. Its climate varies widely with elevation and with distance from the coast. Along the shore and extending inland for a few miles is a belt of cool, foggy, windy climate but mild, wet winters; the weather data given for Eureka in table 1 are typical. Farther inland in the major farming valleys there is less rainfall, the sum- mer temperatures are higher, and the winter tem- peratures are lower than on the coast, as shown by the data for Santa Rosa. Lumbering of the coast redwood and of Douglas- fir is a major activity around Crescent City, Eureka, and Fort Bragg. This region contains the coast redwood belt and the famous Redwood Highway (U.S. Highway 101), which runs north from San Francisco through a large part of the farming and redwood country to Oregon. Beef cattle and sheep ranches, depending largely on owned range, occupy most of the hill country that is open to grazing. Dairying is the major type of farming in the Smith River Valley of Del Norte County, the Mad and Eel river deltas in Humboldt County, and much of the coastal portions of Mendocino, Sonoma, and Marin counties. Farther inland in Mendocino and Sonoma counties lie the Russian River Valley and adjoining agricultural areas, where prunes, pears, wine grapes, and hops are important crops. Petaluma in Sonoma County is the center of a large commercial poultry industry. The Sebastopol area near by is the main shipping center for Gravenstein apples. The Napa Valley farther east produces wine grapes, prunes, and a variety of other crops. Lake County, which con- tains Clear Lake in a large basin surrounded by mountains, is an important pear and walnut dis- trict with some dairy, livestock, and general farms. The north-coast region as a whole is fully developed agriculturally, with its crops and livestock stabilized. It contains about 340,000 acres of cropland. Although this is only 4 per cent of its area, practically all the good farm land is fully utilized. Parts of the area are under irrigation, but an increase of this prac- tice would not create many additional farms. 2. Central Coast This region comprises the counties on and near the coast south from San Francisco Bay, to and including the northern part of Santa Barbara County. In general it is a little warmer and has less rainfall than the north-coast region. The climate is mild and equable near the ocean, but warm and dry farther inland. Although the Coast Range dominates the area, the region is somewhat lower and less rugged than the north coast. It contains more open grazing and farming land and less commercial timber. Considerable livestock is produced on the ranges, which are largely privately owned. The lower rainfall and higher temperature result in a green-feed period somewhat shorter than farther north. With proper management, however, stock can be maintained mainly on range the year round with a little sup- plemental feed, easily secured from the crops and crop residues of the valley farm lands. All the counties in this region contain im- portant crop areas in the valleys and on some of the hill slopes. Grain and grain hay, with some other crops, are produced without irrigation, al- though the intensive production of fruit and truck crops is largely dependent on the use of irrigation water from individually owned wells. The central-coast region presents a wide range of conditions, which lead to crop specialization. The valleys in the Bay area and the Santa Clara Valley centering at San Jose contain apricot , walnut, prune, almond, and pear orchards and wine- grape vineyards, besides some plantings of field crops and vegetables. The Pajaro Valley (sur- rounding the town of Wat s onvi lie ) includes Cali- fornia's chief late-apple district and is also important for truck crops. All along the coast are vegetable areas that permit the summer pro- duction of cool-climate crops such as lettuce, artichokes, peas, and Brussels sprouts. The largest valley in the region is the Salinas. The northern end of this is a major vegetable dis- trict, with lettuce and carrots as the chief products, but with a large acreage of beans, sugar beets, and many other crops. The southern end, being hotter and drier, is devoted mainly to field crops and livestock. The Santa Maria and Santa Ynez valleys farther south are heavy producers of vegetables and flower seed. In most of these vegetable areas double-cropping, or more than one crop a year, is possible with irrigation. There is considerable dairying, scattered throughout the region. Poultry pro- duction is also important in many localities. This central-coast region as a whole contains about 950,000 acres of harvested crops, which is 10 per cent of its entire area. The valley soils are usually good. Production could be increased if more water were available, but there are no large opportunities for irrigation development. The region is largely one of family-sized and large commercial farms, fairly profitable and strongly held. Only around the cities are there many small and part-time farms, made possible by employment opportunities in agriculture and other occupations. Some of the soil and other problems of the area are illustrated in an available pub- lication on the land of Santa Cruz County. 6 3. South Coast This region includes the southern coastal shelf of Santa Barbara County and the western Storie , R. Earl. Natural land divisions of Santa Cruz County, California: their utilization and adaptation. California Agr. Exp. Sta. Bui. 638 : 1-56. 1940. [7] portions of the counties to the south, oh or near the coast. It is progressively warmer and has a lower annual average rainfall than the central- coast region; yet proximity tc the ocean gives it a milder, more equable climate than any of the other regions. The hills, dry and brush-covered, are used for watershed, with little or no graz- ing. Crops depend almost entirely upon irriga- tion water, which is fully utilized, some of it being obtained at high cost and from great dis- tances. The chief crops of the region are oranges, lemons, walnuts, avocados, berries, a variety of vegetables and a few field crops. This is the major citrus belt, or area, of the state. It pro- duces almost all the lemons grown in the United States and many of the oranges. Near Los Angeles is a large market-milk dairy business, unique in that most of the feed is produced outside the area on cheaper land and shipped in by truck or train as concentrates and baled alfalfa hay. Al- though there is an intensive poultry district, the region as a whole is on an import basis for both eggs and poultry meat. Its large popula- tion, which includes Los Angeles, consumes a great volume of agricultural products, many of which are produced elsewhere and shipped in. The soils are not all of the best; but with proper management, an adequate water supply, the warm climate, and the long growing season, profitable use can be made of any but the poor- est soils. Much agricultural land has been sub- divided into suburban homes and part-time farms, and the active real-estate market has long been encroaching on commercial farming areas near the larger centers. Since the available water is rather fully utilized, there is not much oppor- tunity for future irrigation developments. This region contains 900,000 acres of harvested crop- land, which is 12 per cent of its entire area. The frequently high earnings of some of the crops, plus the demand for homes, have resulted in land values that may not be justified by long-time earnings from commercial farming. At any rate, in this region a large investment is required for a farm of adequate size. Land values are probably the highest in the United States — bare land costing $300 to $1,000 an acre, and good citrus orchards going as high as $3,000 an acre. From 15 to 30 acres may be required to support an average California farm family, even with in- tensive high-value crops. There are, however, many small places and part-time farms, which will make attractive homes and perhaps produce some income to supplement that from annuities or outside employment. The purchaser of such a place should first be assured of adequate de- pendable income, since the operating costs and the taxes continue high even in times of low farm prices and slack employment . 4. Sacramento Valley The Sacramento Valley is the northern half of what is called the Great Valley. Being farther north, it is enough colder and wetter to have somewhat different climate and crops from those of the San Joaquin Valley, with which it merges in the delta of the two great rivers at the north- eastern arm of San Francisco Bay. Rainfall in and around the Sacramento Valley ranges from 15 to 35 inches. The watershed yields more water than is needed for summer irrigation; and the Central Valley Project, now under construction, will store and transfer part of this water to * the San Joaqui-n Valley. Irrigation is needed for most orchards and field crops, but not fcr the grain that grows during the rainy season. The Sacramento Valley has a less equable cli- mate than the coastal regions; summers are hot- ter and drier, and winters colder, as shown by the weather data in table 1. The soils are vari- able, with some hardpan land and fine-textured basin soils. The basin soils produce heavy yields of rice and grain, but are adaptable to fewer crops than the medium-textured alluvial soils along the many streams that enter the valley. The region is largely devoted to field crops and general farming, with some dairying. It also contains several important fruit districts producing peaches, prunes, almonds, pears, wal- nuts, olives, and even a little citrus fruit. Commercial poultry farms are found in several localities, especially around Sacramento, the state capital. Over half the land harvested in the region is in grain and grain hay. In addi- tion, this region contains most of the rice fields of California and is well suited to the economical production of rice under efficient large-scale mechanical methods. Alfalfa, sugar beets, dry beans, and canning tomatoes are other important crops. In the delta of the Sacramento and San Joaquin rivers a large acreage of very fertile friable peat soil, now protected by levees, grows a variety of vegetable and field crops and some fruit. The delta is devoted to large commercial farming operations. Partly be- cause of local living conditions, it is not an area of farm homes. Livestock, both cattle and sheep, are win- tered in and around the Sacramento Valley, to be pastured in near-by private range lands and national forests in the mountains during the sum- mer. Some stock are kept in the valley the year round to utilize the numerous pastures and the crop residues such as grain stubble and sugar- beet tops. Swine production is scattered throughout, not heavily concentrated in any area. The Sacramento Valley region is a large one and includes some foothills to the east and west, besides the arable valley floor. It has 1,422,000 acres of harvested cropland (12.8 per cent of its area). Although all the farm land is in private hands and already in use, there is considerable 9 opportunity to intensify production further and to increase the number of farms. Some good crop- land now dry-farmed to grain can be devoted to general or dairy farming. Water can be made available for all the good land, but the new- comer is warned of much poor land that cannot [8] be profitably farmed to intertilled crops. In the foothills to the east are some fruit and other farms of less than adequate commercial size which, because of the more desirable climate at elevations of 1,000 to 3,000 feet, might make attractive homes for those with assured outside income. 5. San Joaquin Valley This region extends from the delta area, where it joins the Sacramento Valley, southeast to the Tehachapi Mountains, which separate it from the south-coast region. On the east it is bounded by the Sierra Nevada, from which comes most of its irrigation water; on the west by the dry side of the Coast Range. Its average rain- fall is as much as 20 inches in the north, less than 10 inches in the south, and is higher along the eastern side than on the west. Its climate — a little warmer than that of the Sacramento Val- ley, with a longer growing season in general — gives it a greater variety of crops. The soils are variable, with much land of high quality, but also with some shallow hardpan and some low basin lands where alkali is a limiting factor. This is the most important agricultural re- gion in California, containing 2,283,000 acres of harvested crops (14.4 per cent of the area). The crop acreage is one third of the total for the state. The San Joaquin Valley presents a great diversity of products and types of farms; specialization, in some local areas, has dis- tinct advantages. Here are grown over 70 per cent of the grapes in the state — nearly all the raisin and table grapes, and some of the wine grapes. There is a considerable acreage of de- ciduous fruits — mainly peaches, apricots, almonds, and walnuts. Figs and olives are also important. In the southeastern part of the valley, mostly in Tulare County, is a large citrus area producing navel and Valencia oranges, with some lemons. But field crops occupy most of the land — grain, alfalfa, cotton, beans, potatoes, flax, and sugar beets. Vegetables, such as asparagus, to- matoes, melons, onions, sweet potatoes, and peas, are widely grown (in areas to which they are es- pecially adapted) from the delta area in the north through the entire valley to the south. Livestock is produced and fed in the region, some of it being pastured on the ranges and national forests of the adjoining foothills and mountains. Some irrigated pastures are used for feeding and dairying. The region is the most im- portant dairy district of the state, with consid- erable production of market milk and cream for the San Francisco, Los Angeles, and local consum- ing centers and with a large manufacture of dairy ) products in widely distributed plants. Poultry production is scattered throughout. Practically all the land that has an adequate water supply is farmed to irrigated crops. Part of the water is obtained through irrigation agen- cies which store the winter and spring runoffs. Especially in the southern part of the valley, much of the water comes from wells that draw on [9] a diminishing underground supply. The Central Valley Water Project, now under construction is expected to irrigate 500,000 acres for the first time and to bring additional water to 1,500,000 acres already irrigated. This development and the resulting intensification of production should make possible about 10,000 more farms, mostly in the San Joaquin Valley. It is yet too early to predict just where, when, and how these new irrigated farms will be available; but they will probably not appear for several years, and then only gradually, over a long period. Being already under private ownership, they will be ob- tained on a different basis from the public land in some of the new reclamation projects. This San Joaquin Valley region, though entirely in farms, still offers some opportunities for shift- ing to intensive crops of higher value and labor requirements suited to smaller farm units when and if markets are available. With its large normal turnover of farms and its planned future development under the Central Valley Project, it can probably absorb more additional farmers than any other part of the state. 6. Mountain Region The northeastern part of the state is domi- nated by the Siskiyou Mountains, Cascade Range, and Sierra Nevada. Its agricultural importance is small with only 350,000 acres (1.7 per cent) in harvested crops. Farming is in mountain val- leys at elevations between 2,000 and 6,000 feet. The frost-free growing season is relatively short, as compared to the rest of the state. It is cold in winter and moderately warm in summer with low annual rainfall in many of the farming areas and a climate that resembles the intermountain states, rather than the rest of California. Farming in the mountain region is largely the production of hay and grain for the wintering and feeding of range livestock and farm dairy herds. Cattle and sheep are grazed by permit in the na- tional forests and on the grazing lands of the public domain, such grazing rights being regu- lated and made available to the established ranch- ers in proportion to their ranch operations. Such public ranges, as well as those that are privately owned, are fully utilized. To obtain grazing rights, the newcomer would have to buy or rent an established ranch. The farming areas in this mountain region are across rather high mountains from the Sacramento Valley and, hence, have different climatic, price, and market conditions. Wild meadow hay, alfalfa, and grain are the major crops. Irrigation is necessary for crop production in most areas, and in some of them there is not enough water for all the arable land. Although livestock is the preva- lent type of farming, there is some dairying and some cash field-crop production. The Tulelake Reclamation Project in the north- eastern corner of Siskiyou County and the north- western corner of Modoc County, extending north into Oregon, has developed an intensive irrigated field-crop-production area, with potatoes as the main cash crop, but with alfalfa, grain, and other field crops also grown. The project is not fully completed; some 10,000 acres of addi- tional land will be made available in the early- post-war years. This is public land, which will be open to entry in tracts of suitable size, about 100 acres; the construction costs assessed against it will be payable over forty years, without interest. Since veterans have preference, all such farms will probably go to the few quali- fied ex-servicemen who can be accommodated. lassen, Yosemite, Kings River Canyon, and Sequoia national parks are in this region to- gether with most of the high mountain scenic and recreational areas of the state. Practically all of the high mountain country not in national parks is in national forests, which provide not only grazing, but camping and recreation. The region also contains a considerable part of California's timber and mineral resources and supplies most of the hydroelectric power for the state and most of the irrigation water for the Great Valley. Hence, in some of the mountain valleys, certain local jobs may be combined with a small farm or rural home. Since the region is fully developed agriculturally, opportunities for newcomers will be rather limited. 7. Desert Region The largest region of the state is the desert in the southeastern part. It is not so important agriculturally, however, since only 1.5 per cent of it, or 403,000 acres is in harvested cropland. Since the rainfall is, in general, too low to produce timber or grazing, this is called the desert area even though it includes numerous mountain groups besides the valleys and plains. Farming is possible only in irrigated valleys, of which there are several, all separated, how- ever, from one another and from the coast region by mountains and desert plains, and all having low rainfall and high summer temperatures. The Imperial Valley is the main agricultural area of the region. It is irrigated from the Colorado River; the completion of Boulder Dam and the All-American Canal have given it an ade- quate and dependable water supply. Flax and al- falfa are the major crops in acreage, but grain and truck crops are also produced. Grapefruit and dates, the principal fruits, have not been extensively planted. There is some dairying and feeding of livestock in the valley on the locally grown alfalfa and on irrigated feed and pasture crops. Most of the alfalfa is baled, however, for use in the Los Angeles dairies over 200 miles away. Lettuce, carrots, cantaloupes, peas, to- matoes, and watermelons are raised here for inter- state shipment at times of the year when sup- plies from other areas are not large. A circu- lar on the soils and crops of this valley may be consulted. 7 Some additional land on the East Mesa of the Imperial Valley will be brought under irrigation with the extension of the All-American Canal-- perhaps 66,000 acres that may be suitable to farming. This public land will be opened to en- try when water becomes available. The settler agrees to repay without interest, over a forty- year period, the construction costs assessed against the land, plus the costs of operating and maintaining the irrigation system. The soils of the area have been mapped in detail; the maps may be consulted at the Agricultural Extension Q Office in El Centro and at other public-agency offices near the area. 8 Most of the land is poor and will be difficult to farm profitably. The soils, being unlike those on the floor of the Imperial Valley, may result in a somewhat dif- ferent agriculture. Working and living in the valley, however, may be a good preparation for the task of developing and operating a new farm on the mesa. The Coachella Valley, a northern arm or con- tinuation of the Colorado Desert north of the Salton Sea, somewhat resembles the Imperial Val- ley. It is much smaller, however, and its pres- ent production is more largely of dates, grape- fruit, table grapes, and early vegetable crops. At present irrigation is from wells, although an extension of the All-American Canal is under way to bring Colorado River water for existing farm lands and considerable new land — perhaps 60,000 acres. Most of the land is already privately owned. How new farms may be sold to the new- comer has not yet been announced. The quality of the land in this valley is variable, and the settler or purchaser should carefully investi- gate the soil. The Palo Verde Valley at the eastern margin of Riverside County around the town of Blythe is another separate project irrigated from the Colorado River. Alfalfa, flax, cotton, grain, and grain sorghums are the main crops; but there is also considerable production of lettuce, car- rots, and other vegetables. The irrigated and well-drained land of the valley is fully utilized at the present, although there is talk of addi- tional developments. Drainage problems exist in some places. Certain other desert farming areas, such as the Antelope Valley in the northeastern part of Los Angeles County and the near-by Mojave Valley in the northwestern part of San Bernardino County, are irrigated from local or underground water supplies. There are also many desert ranches with inadequate water and poor earning capacity, some of which may look promising in good years. The desert contains much good land that cannot be developed because of a lack of water. It is dotted with the remains of many previous fail- 7 Crosby, S. W. , and L. G. Goar. Soils and crops of the Imperial Valley. California Agr. Exp. Sta. Cir. 334: 1-108. 1934- (Out of print; f may be consulted at libraries and Agricultural Extension offices.) 8 Storie, R. Earl, W. W. Weir, R. C. Cole, and Esther P. Perry. Soils of Imperial East Mesa. 7 p.+ 24 maps. California Agricultural Experi- ment Station. June, 1944- (Litho.) (For con- sultation by the public, but with distribution limited to public agencies only.) [10] ures, silent warning to the newcomer. This re- gion also contains some mineral resources and some recreation and health resorts. It is hot and dry in summer, but pleasant in winter. To many the climate is a difficult one in which to work and live the year round, although modern air conditioning can now make the houses more com- fortable . TYPES OF FARMS California farms may be roughly classified on the basis of their principal crops or livestock. Each crop or kind of livestock is called an en- terprise. A farm business is composed of one or more enterprises. A specialized farm will have only one or two; a diversified farm, several. Although California agriculture as a whole is highly diversified, most of its farms specialize in the products best adapted to local conditions. An available publication (footnote 5, page 6) shows, in detail, the distribution of farm types according to major enterprises. Table 2 classi- fies California farms by major source of income. Fruit Farms Farms with a major source of income from fruit or nuts exceed any other type in California. They vary widely in the kind of fruits grown. In size they range from small part-time farms up to 5,000 acres, but mostly 10 to 30 acres. Fruit production involves a considerable investment for developing the orchard or vineyard ; hence the operator must make a high capital investment for a farm large enough to support his family. Or- chards and vineyards are usually specialized, with only one kind of fruit or at most a few kinds. The result is a high seasonal labor re- quirement at harvesting time, since about 10 workers are needed to harvest the fruit from an orchard which one man can care for the rest of the year. Specializing in a single crop that cannot be changed involves a hazard: there may be years of low income or no income, for cli- matic or economic reasons; and perhaps a long period of low prices and income, due to continued overproduction. In general, however, over the years, net income or earnings per acre from fruit have been good as compared with those from other products. Since practically all fruits have brought good prices the last three years (1942 to 1944) , the purchase prices of good orchards are now probably above those justified by long- time future earnings. On the other hand, when a given fruit has remained unprofitable for a num- ber of years, as happened in the 1930' s, the purchase prices of the farms have tended to fall below those justified by long-time earnings. Since it takes five to ten years to bring an or- chard into commercial production, one planted now may not arrive in bearing until oversupply has brought unprofitably low prices. The long- time outlook for fruit prices in general and the specific fruit in particular is important. As a rule, an orchard or vineyard once planted is brought into bearing and remains long in pro- duction, despite unprofitable markets. Hence the total acreage of any fruit is rather stable, and the normal production may be forecast several years. A comparison of this probable future out- put with probable domestic and foreign demand, in the light of past supply and price relations, enables one 'to foresee probable price trends. If the total production is no greater than can be marketed satisfactorily, the outlook will be good. If, on the other hand, future production appears unprofitable, the outlook is poor. The prospects for some California fruits are better than for others. Many factors, such as post-war domestic consumer purchasing power and foreign outlets, are too uncertain to warrant the inclu- sion here of forecasts for the many fresh, canned, and dried fruits produced in California. Such information, as it can be developed, will be cur- rently available at Agricultural Extension of- fices. Before buying or developing an orchard TABLE 2 Census Classification of Farms in California by Major Source of Income, 1939* Kind of farms Farms Total value of products in 1939 Average value of products per farm in 1939 Fruit and nuts number 45,850 18,277 14,548 14,263 9,568 6,398 1,877 16 , 460 579 4,838 132,658 dollars 129,237,986 108,112,886 41,117,057 75,760,659 57,119,570 38,625,696 11,374,676 4,060,894 dollars 2,819 Field crops 5,915 Poultry and poultry products . . . Dairy products 2,826 5,313 Livestock and livestock products . Vegetables 5,970 6,037 Farm products used in household 6,060 247 Total .... 465,429,424 *U.S. Bureau of the Census. Sixteenth Census of the United States, 1940. California. Third series, p. 9. 1942. Agriculture , [11] or vineyard, the prospective fruit grower should inquire concerning the outlook. The citrus fruits — navel oranges, Valencia oranges, lemons, and grapefruit--are the most important in value and in number of growers. They are planted chiefly in the south-coast region. Lemons, being the least hardy to frost, are grown in limited areas along valley terraces and near the ocean. Navel oranges, the variety har- vested in winter and early spring, are more widely grown in the warmer parts of the south- coast region and in the southeastern San Joaquin Valley. Valencia oranges, the summer variety, are also produced in many places, but most ex- tensively near the coast, for example in Orange County. Grapefruit are grown commercially in the hotter parts of the south-coast region and in the Coachella and Imperial valleys. Most cit- rus orchards, therefore, specialize in a single variety, although in some regions two, three, or even all four varieties may be found on a single farm. About 20 acres of citrus orchard is re- quired to furnish sufficient employment and an adequate family income over the years. Many cit- rus orchards are smaller, however, perhaps be- cause of their suitability to part-time farming, but also because of their high per-acre cost. Good bearing orchards cost $1,500 to $3,000 an acre, depending on the times and on current earn- ings. For an adequate family farm the capital investment would probably be $30,000 or more in normal times, and much more now. A detailed presentation of costs, returns, and management factors in orange and lemon orchards in southern California is available. 9 Deciduous fruits are those that shed their leaves and become dormant during the winter, in contrast to citrus, olive, and avocado, which are in leaf all year. Deciduous fruits are produced in most of the cooler regions; in fact, certain varieties require some cold winter weather. Peaches, pears, apricots, prunes, plums, cher- ries, apples, almonds, and walnuts are extensive- ly grown in the favorable localities. The proper size for a family farm may be 15 to 30 acres on irrigated productive valley land, somewhat larger on poorer soils or without irrigation. In normal times, good bearing orchards have cost about $1,000 an acre; but there is considerable varia- tion with locality and kind of fruit, because of current earnings and the future outlook. In gen- eral an adequate family- si zed deciduous fruit farm would cost about $20,000, but the figure might range from $15,000 to $30,000. Three principal types of grapes have been planted extensively in California — raisin, table, and wine. Each type and sometimes each variety, however, is grown in smaller areas best suited to it. Raisin grapes, largely the Thompson Seed- less (Sutanina) variety (sold to some extent for table use) are widely produced in the San Joaquin Shultis, A. Citrus enterprise-efficiency studies in southern California. California Agr. Sta. Bui. 620: I-65. 1938. Valley, where the long warm, dry summers develop the necessary sugar and facilitate natural sun- drying. The major area of table-grape produc- tion is also in the San Joaquin Valley, but in subareas of special adaptation—for example, the Flame Tokay grape around Lodi and the Emperor grape in Tulare County. Both table and raisin grapes are used in wine making along with the • special wine varieties—particularly for dessert wines and brandy. Dry wine grapes are produced mainly in the central-coast and north-coast re- gions, but inland, where they attain moderate yields and high quality without irrigation. The minimum size of vineyard for a family farm varies by kind of grape and location. It may be as low as 25 acres in the best table-grape areas. With raisin grapes, 30 to 50 acres would be required; with nonirrigated wine grapes, up to 60 or 80. Prices per acre vary widely; but the capital re- quired in normal times will probably be about $20,000 for a family-sized vineyard. There are several other types of fruit farms in California, each more or less limited to a particular area or set of conditions. Avocados are produced in small frost-free areas in the south-coast region. Olives are grown in many of the warmer interior districts, especially around Corning in the Sacramento Valley and Lind- say in the San Joaquin Valley. Figs are pro- duced mainly in Fresno, Merced, and Tulare coun- ties in the San Joaquin; but there is some com- mercial acreage of certain varieties in the Sac- ramento Valley and the south-coast region. Such farms would require 20 acres or more for an ade- quate unit. Dates are found only in the Coachella and Imperial valleys; and, because of the high labor requirement, a date garden of 10 acres is considered adequate. Strawberries and bush ber- ries are grown in small units, sometimes in con- nection with vegetables, in all but the desert and mountain regions, the greatest production be- ing in the central- and south-coast regions near large consuming centers. Field-Crop Farms Field-crop farms are of many different types — nonirrigated grain farms, irrigated diversified farms, irrigated specialized farms (producing, for example, rice, cotton, or alfalfa). Small grains, barley, wheat, and some oats are grown in California, largely on nonirrigated land or under soil and other conditions unsuited to high- er-value crops. Grain and grain hay are planted from late fall to early spring, in order to take advantage of winter rains, and are harvested in the dry summer. In some areas land is summer- fallowed for a year, a single crop being obtained once in two years, or once or twice in three f years. Grain farms are usually specialized, though some growers also keep sheep or cattle to utilize the stubble and pasture. Some grain is grown under irrigation as a catch crop on other- wise idle land or in rotation with irrigated field crops, such as cotton and flax in the San [12] Joaquin and Imperial valleys. Grain farmers tend to large operations because land can easily be rented, usually for one fourth of the crop, and because full use must be made of the large , ex- pensive tractors and combines. A competent man with several thousand dollars' worth of equipment and a good local reputation can sometimes rent enough land for a minimum-sized commercial busi- ness. From 200 to 300 acres is considered neces- sary—more with summer-fallow or poor land. The investment would be about $6,000 for equipment and $15,000 or more for land, plus some operat- ing capital. Rice farming is limited to heavy basin soils, largely in the Sacramento Valley, where the land may be economically flooded during the summer, when growth takes place. In type and equipment, rice growing is similar to grain growing; the two are sometimes combined, since the riceland needs rest or rotation. Acreage of crop for a family farm can be smaller with rice than with grain; but the capital requirement is probably somewhat higher. Alfalfa, sugar beets, dry beans, and in some areas potatoes and certain vegetables, such as melons, tomatoes, onions, and sweet potatoes, are widely grown on irrigated field-crop farms, usually in suitable local combinations, but often as single crops, one to a farm. This type of farming is common in San Joaquin, Sacramento, Imperial, and Salinas valleys; but the crops se- lected will be different in different areas. From 40 to 80 acres of good irrigated cropland is considered necessary for an adequate estab- lishment. Such land varies widely in value, ac- cording to location and the quality of the soil. In normal times it costs $100 to $600 an acre, but mostly about $200, without improvements or equipment. An adequate farm with buildings and equipment would normally cost about $20,000. Many subtypes are possible, some with beef or dairy cattle, sheep, or hogs as a supplemental enterprise. A detailed study of the organiza- tion of such farms may be consulted. 10 Poultry Farms Poultry production in California is largely on small, specialized farms where all feed, ex- cept a little green feed, is purchased, or where poultry raising is combined with some nonrelated enterprise. The land required for a recommended family unit of 1,500 to 3,000 hens is small--2 to 5 acres--and its quality is unimportant. It should be located, however, within a few miles of a feed source and also a market for eggs, such as a branch of one of the cooperative poultry asso- ciations, which cover most of the state. Enter- prise-management studies conducted by the Agri- cultural Extension Service over the last twenty years show the net farm income of the competent poultryman to average a little over $1 per hen ^Adams, R. L. , and L. A. Crawford. Tests of farm organization in the Turlock area. Cali- fornia Agr. Exp. Sta. Bui. 544: 1-128. 1932. (Out of print. ) annually--in some years as low as 45 cents, and in other years over $2. This net farm income is the amount by which income exceeds cash costs and depreciation, but not interest. The prospec- tive poultryman may safely plan on making about $1 per hen for living and debt retirement. He may estimate the size of business needed on the basis of one hen, one dollar, and decide whether he needs 1,500 or 2,000 or some other number of hens to support his family. The capital invested, including the stock, averages about $5 per hen; but new construction would cost more. The land, buildings, equipment, and operator's dwelling for a 2,000-hen farm may cost as little as $10,000; but since it would take some months and another $3,000 or more of operating capital to stock the place from baby chicks, the total capital required will usually be $12,000 to $15,000. Poultry-meat production has not been a stable business over the years. Sometimes the broilers or fryers will scarcely pay for their feed, and production must be discontinued. The enterprise is recommended only as a side line to some other business — usually egg production. Poultry farm- ing in general involves constant but not arduous manual labor and offers gainful employment to some with physical limitations. It may be readily combined with other enterprises on a limited scale. For example, a 10-acre orchard and 1,000 hens will make an adequate family unit, with some advantages over a specialized single-enterprise unit of either. In several parts of the state, turkeys and turkey eggs for hatching are produced on specialized farms and also in connection with other enterprises. Dairy Farms Dairying is widely distributed and important in California. Although it is sometimes found in connection with other enterprises on diversi- fied farms, most of it is on specialized dairy farms where crops are grown mainly to furnish pasture, hay, silage, and other forage for the herd. A detailed presentation with sample costs and returns is available. 11 The feeds produced vary widely by regions and areas. In some of the coast counties, natural pasture is depended upon; and production is high- ly seasonal to fit the feed supply, the milk usu- ally being sold for manufacturing. In the irri- gated interior valleys, dairy enterprises are associated with alfalfa and irrigated pasture, about 1 1/2 to 2 acres of irrigated land being sufficient to feed a cow and the usual proportion of young stock in the herd. Some of these dairies sell manufacturing milk, and some sell market milk. The latter, in California, usually re- quires artificial refrigeration, because of the high health standards that must be met. It has a higher production cost, but usually also a high enough selling price to make it more profit- ii Shultis, A. Dairy management in California. California Agr. Exp. Sta. Bui. 64_0: 1-94- 1940. ' [13] able than the manufacturing milk. In some cor- ral or dry-lot dairies near Los Angeles, cows are fed hay from distant areas, and milk production is almost a factory process, utilizing purchased feed and replacement cows. A dairy farm of the minimum size to support a family will range from 15 to 40 cows, depending on the kind of feed, the quality of the herd, and the needs of the family. According to enter- prise-management studies conducted over the years, the net farm incomes from the dairy enterprise and associated feed-production enterprises have averaged about $100 per cow. The 20-cow to 30- cow farm with enough land to produce the needed forage should, if well managed, have an average net farm income of $2,000, although in the past this has fluctuated between $300 and $4,000 be- cause of changes in prices. In the interior irrigated valleys, with alfalfa and irrigated pasture as forage , a 20-cow dairy would require 30 to 40 acres. In nonirrigated coastal regions, with natural range as the main feed, the land re- quirement may be as high as 500 acres. A single- family dairy farm of about 20 cows, with the necessary land, buildings, equipment, stock, and dwelling, will probably involve, in normal times, an investment of $15,000. Since the size of the herd definitely limits the net-income possibili- ties, it is safer to have a liberal number of cows to meet living and debt-retirement costs-- perhaps 25 or 30, instead of 20. Using modern milking machines and other facilities, a man with some help from his family can handle most of the dairy and field work for this number in Califor- nia, where most of the feed can be obtained from pasture the major part of the year. Some farms are rented, the tenant usually owning the stock and movable equipment, which requires an invest- ment of about $250 a cow, or $6,250 for a 25-cow dairy. Rent is a fixed monthly payment, or a pcrtion of the milk check, or the income from an agreed quantity of milk. Because of the constant nature of the work, a larger dairy farm involving a family and a hired hand, or two families, is recommended and is ac- tually more common in California. Usually the owner acts as manager, does most of the crop work, and hires a milker to handle the 40 to 60 cows. Such a farm would be at least double the family farm in size and investment. By providing for two full-time year-round workers it would permit vacations, superior working conditions, and more efficient utilization of equipment. Livestock Farms There are two main types of livestock farms in California: the range-stock ranch, and the general farm where livestock are raised or fed in connec- tion with crop production. Much of the land in farms, as tabulated by the Census of Agriculture, is in natural pasture or range; and some addition- al public and privately owned land is utilized for grazing livestock, mostly beef cattle and sheep. Grazing in the national forest and public domain is by permits or allotments, granted to allocate the available range among the various ranchers, according to their needs and their past operations. The range resources of Cali- fornia are fully utilized, and the newcomer must purchase or rent an already existing ranch. The natural growth of grass here is seasonal; since the forage in any area is of high quality for only part of the year, range livestock must be % moved to different areas or must receive supple- mental feeds. The nature of cattle and sheep operations varies widely with the kind of range and supple- mental feed available. Some ranchers operate breeding herds and sell feeder calves, steers, or lambs. Others, on better ranges, can market grass-fat animals. Still others have supple- mental feeds for finishing the stock raised and hence can sell fat stock for immediate slaughter. Some few ranchers on seasonal ranges , as in the Coast Range , buy feeder calves or yearlings for further development on their ranges, selling them for slaughter or further feeding at the end of the pasture season. Cattle and sheep ranches vary widely, by lo- cation and kind, in the size of herd, and the acreage required for an adequate family farm. Usually 100 breeding cows are considered neces- sary, with sufficient owned or rented range land, and sometimes with enough cropland to produce the required hay for supplementing the range. Where all land is owned, as in the Coast Range, 500 to 5,000 acres is required for a herd of this size, with an investment probably around $20,000 for the range alone. Even in the mountain region, where grazing rights on public lands are avail- able to ranchers, the total investment for a stock ranch is rather high, since hay land and private range are also required. The land, build- ings, and livestock would mean a minimum invest- ment of $25,000 to $30,000 for a cattle business of 100 cows, with the usual bulls and young stock. In fact, cattle ranches are usually larger than this minimum and are rather strongly held by owners of substantial means, so that there is little opportunity for the newcomer with limited capital. Sheep ranches are somewhat similar to cattle ranches in the acreage required for a family farm, but would need 600 to 1,000 breeding ewes in place of the 100 breeding cows. Sheep are better suited to some of the more seasonal ranges, because of the lower flock feed requirement after lambs are sold at the end of the best pasture season. An enterprise-management study over the last thirteen years in the north-coast region has shown that a sheepman with 700 ewes in that re- gion, owning his range free of debt and doing his own work, made an average annual income of about ♦ $2,000 a year — some years much less and some years more. His investment was about $21,000 for the range and sheep enterprise, not including the cost of the dwelling. On the average he needed about 3 acres of range land per ewe, but this [14] varied on the coast from a little over 1 acre to more than 5 acres, depending on the location and quality of the range. Farther inland, under poorer natural-feed conditions, where only feeder lambs are produced, 1,000 ewes and 6,000 acres or even more might be required for a minimum family-sized sheep ranch. There is also considerable livestock produc- tion and feeding on general or diversified farms in the valley. Cattle, sheep, and hogs often utilize surplus grain, grain stubble, and other crop residues. Beef steers and lambs from the ranges are fattened in irrigated pastures and on other crops and in feed lots. California produces locally less than half its consumption of pork, since hog production is profitable, in the long run, only where pasture or some by-product or crop residue is available to keep the cost below that of grain alone. Hence hogs are found on several kinds of farms where there is grain, grain stubble, or irrigated pas- ture; or where cull fruits, garbage, skim milk, or whey can be used to reduce the feed cost. In general, livestock production on irrigated pasture is less profitable than dairying or the growing of field, vegetable, or fruit crops. Irrigated land will be devoted to pasture largely where more profitable land uses are not available or where, in diversified farming, it makes pos- sible better utilization of other crops or natu- ral pastures and range. A family-sized diversi- fied crop and livestock farm on irrigated land will probably require 60 to 100 acres and an in- vestment of $15,000 to $20,000. Such a unit appears well suited for some of the new lands that may be brought under irrigation in the Great Valley. It would have the advantages of diversification — namely, several sources of in- come, fuller utilization of crop residues, better maintenance of soil fertility, and a more stable labor requirement throughout the year. No standard organization can be recommended. The acres of each crop and of irrigated pasture will differ with the locality, and the kind of live- stock will vary with the crops and the prefer- ences of the operator. The system must develop to fit the individual farm and operator; it can- not be recommended in advance. Vegetable Farms California is a great vegetable-producing state. Within the last twenty-five years it has developed distant markets for large volumes of head lettuce, carrots, asparagus, peas, tomatoes, cauliflower, Brussels sprouts, snap beans, melons, artichokes, and other crops. High quality of product and time of marketing have made this possible. Production in any area is rather large-scale and specializes in a few locally adapted crops for carlot or truck-load shipment to distant markets. There are not many market gardeners who grow a considerable number of vege- tables in small amounts for the local market. In- stead, most vegetable farms resemble the irri- gated field-crop farms already discussed, except that large-scale commercial operations, rather than family farms, dominate the field. Many of the vegetables for eastern shipment are produced by grower-shippers, who not only raise them but operate large, efficient packing-houses and do their own marketing. Since much of the land is rented, the large commercial grower can move his operations in order to concentrate on the most profitable crops. Rent is usually cash and cur- rently is $25 to $75 an acre annually. Two crops a year are obtainable with some crops in most of the vegetable areas. Although production is usually large-scale, there are small vegetable farms, especially around the larger cities, producing mainly for the local markets, but with some interstate ship- ment . As a rule , such producers are under more of a marketing handicap than the small fruit growers, who have more cooperatives available. The able and industrious vegetable worker with a little capital can, however, often rent land and produce crops with a chance of making a liv- ing and increasing the scope of his operations to a profitable level. In some of the best dis- tricts where two crops annually are possible, 20 acres of land (40 acres of crops) would prob- ably be the minimum for a family farm. Since it is seldom possible to double-crop all the land or to have it all in short-period crops, the general minimum of 40 acres is recommended. This will vary with the area and the crops grown; it should, in some cases, be 80 to 100 acres. The total capital required for land and equipment would be $15,000 to $20,000 in normal times. SIZE OF FARM BUSINESS A highly important factor in the success of the individual farmer is the size of his busi- ness — not necessarily the number of acres he owns, but the size as it determines his net in- come or meets his needs. Net farm income is de- rived from the gainful employment of three things — labor, capital (including land), and management. The proportion of the income from each of these items will vary with the size and type of farm. The man with no capital and little or no managerial ability has only labor to offer and so will obtain his best living by working as a laborer for others. The man with managerial ability but no capital will probably also work for others, at least for a while. The man with only capital will need to make a large invest- ment, find a good manager, and employ several laborers in order to obtain a return. But the man who wants to be an ordinary farmer with a comfortable living must depend on his own labor, capital, and management. One of his most im- portant managerial jobs is to select a farm of the right size. Experience has shown that the average farmer just about makes wages for his labor, plus a small return or rate of interest for his invested capital. Farmers who manage [15] better than the average obtain a profit over and above wages and interest. Net income over the years, will be determined largely by the amount of labor and capital employed and by the quality of the management. These factors must be con- sidered in determining the size of farm best suited to any individual. Large Farms California contains some large farms — owned by corporations, partnerships, estates, or indi- viduals. By "large" is meant larger than the two- and one-family farms discussed in the following two sections. A few farms are large through in- heritance of tracts from the early days of Span- ish and Mexican land grants, before California was a part of the United States. Some are large through the investment of capital earned and saved in other pursuits or through the higher profits obtained by combining production with marketing. But some farms become large through the efficient farming operations of a good mana- ger—usually over a long period. Some remain profitable under good economical management. Others prove unprofitable for various reasons and ultimately may be dispersed or subdivided. All enjoy certain advantages over the small farm be- cause of greater buying and selling power and fuller utilization of the most efficient large- scale equipment. But all are vulnerable to poor management and high overhead and labor costs where employees are incompetent or lack interest. The disadvantages practically offset the advan- tages. Large farms vail not dominate California agriculture and swallow up all the small farms, nor will they all fail and be replaced by family- sized units. For the man with considerable capi- tal who wishes to own and operate a large farm and to make a small return on his invested capi- tal, there are places occasionally for sale in all the regions in California. Two-Family Farms The two-family farm provides continuous em- ployment for two full-time workers and sufficient net income for the support of two families. The two may be a father and son, a supervising land- lord and working tenant, two partners, or a work- ing owner-operator and a year-round hired hand. Such a business offers many of the advantages of larger size, since it is large enough for effici- ent operation, ownership of required equipment, and a desirable degree of diversification. Two available workers facilitate the operations re- quiring two men and permit vacations and rotation of work even where livestock need daily attention. The farm is also large enough to support both parties involved while ownership is passing from father to son or from retiring landlord to tenant. And the higher net income available to the owner- operator will facilitate payment for the place from its earnings during his active years. Under current and foreseeable conditions, this size is probably the most desirable, especially for live- stock, dairy, and irrigated diversified farms with livestock. The acreage and capital required would be about double those mentioned for the minimum-sized family farm. Family Farms The goal of the family farm is the support of a family from commercial farming activity alone. It should provide security, with an income ade- • quate to keep the family effective members of the community, able to survive climatic hazards and economic depressions. Since the plane of living in California is rather high, an average annual net income after all expenses, including rent or mortgage payments, of around $2,000 a year is suggested as a goal, although the sum can vary from $1,200 to $3,000 according to the needs and abilities of the farm family. The size of busi- ness to provide this net income naturally varies by locality and type of farm. With a cattle ranch the investment and acreage are large, but the labor requirement is low, so that most of the net income is from invested capital. With a citrus orchard of 15 acres, $30,000 should, over the years, have an average return of 5 per cent or $1,500, while the operator's labor of 1,000 hours annually would give him perhaps another $500 to make an average total net income of $2,000. With poultry an investment of $10,000 for a 2,000-hen business should return $500, while the 3,000 hours of labor annually would bring $1,500 — a total of $2,000. In this example the net farm income is largely from labor. A buyer cannot be sure that his investment will re- turn 5 per cent. It cannot if he invests more than is justified by the long-time earning power of his farm. He can usually depend on making farm wages for his labor on his own place. An adequate farm business should provide him with full employment during that part of the year when there is work to be done, so that these hours at going wages will approach those needed to provide a minimum living for his family in years of low capital returns. 'Where a 5 per cent return on invested capital plus the farm wages earned by the operator does not meet income needs, the farm is too small, since management cannot be ex- pected to make much on a small farm. A good check on the size of a contemplated farm business is local inquiry. Local farmers, the county farm advisor, and others will know, through experience and observation, what size farm of each local type will support a family. The penalty for getting too small a business is so severe and lasting that the buyer must take all precautions to insure adequacy. Where part of the net income must go for rent or repayment of a purchase debt , a larger farm is required. If the family need were $1,500 an- • nual income for living and they had the $7,500 to buy a 1,500-hen poultry farm outright, they could earn a living — at least if they saved in good years to carry them over poor ones. But if they had only $3,000 capital they might well bor- row $7,000 and get a $10,000 poultry farm with [16] 2,000 hens in order to have enough income to make a debt payment of around $500 a year and still have about $1,500 left to live on. The annual net farm income from a given farm is subject to wide variations from natural, mana- gerial, and economic causes. To a certain extent a family can absorb a part of these income changes in the amount they spend. But a little extra size is recommended to provide a buffer against prolonged periods of low prices and low income and as a surplus for growth of business and progressive improvement in standard of living. The final and safest check on the size of the business is to calculate a budget of probable income and expenses of the farm chosen for pur- chase. Income estimates should be careful yet conservative. They should be based on reasonable average yield or production expectations for that particular farm, as determined by local inquiry among informed but disinterested persons. Price estimates should be based on actual past prices over a period of years, but adjusted to the out- look for the commodities in question. The prices used should be applicable to the grade of product, method, and point of sale. Costs of operation (including taxes, water, or power costs, hired labor, and all other expenses) should be ascer- tained on a liberal basis and subtracted from to- tal income to obtain the expected future average annual net farm income. If this net income is too small to meet estimated living requirements and required loan payments, then the farm is too small or too poor. This approach to the problem may seem difficult and complicated. Local ad- vice will be available, however; and most financ- ing agencies require such a budget or will help to make it in connection with granting a loan. Part-Time Farms A part-time farm is one with some agricultural produce for sale, but with an income too small to maintain a family. The success of such a farm depends, therefore, upon the reliability of outside income, whether from investments, pen- sions, or employment away from home. In size the business can vary from just smaller than a family farm on down to the subsistence farm, or small farm home; the latter differs in that no produc- tion for sale is undertaken. California already has many such places--in some counties over half the farms listed by the census are too small to qualify as family farms under normal conditions. Many of these were developed or purchased in the mistaken idea that they were adequate for a fam- ily; unfortunately they continue to be resold on that basis. Occupants of such farms without ad- ditional income are forced to seek local employ- ment, and their own agricultural production is liable to suffer. During the depression, when agricultural prices and wages were low and work opportunities lacking, many of these part-time farmers were forced to seek relief. There is a limited but definite place, however, for the part-time farm provided the buyer realizes what he is getting and perceives its possibilities and limitations. [IV] The part-time farm offers an attractive mode of life to partially disabled or retired persons with dependable annuities — persons who wish to employ a little capital and labor in suitable small commercial farming activities and to pro- duce some of their food supply at home. It may also enable the seasonal worker in industry or in local agriculture to supplement his wage in- come and develop and enjoy a home of his own. Those dependent on outside employment should look to its suitability and dependability and perhaps should be locally employed at least a year before buying a part-time farm. The purchase of such a place because of inadequate capital to cover a full-sized family farm, and with only the hope of obtaining employment, will certainly lead to disappointment and failure. Part-time farming should not be undertaken by an owner who is fully employed off the farm un- less other members of the family have time and ability to carry on the agricultural production, or unless he is willing to devote his few free hours to an enterprise that fits his daily schedule. A part-time farm cannot be depended upon to carry an otherwise employed person over prolonged periods of unemployment, because the profit from a small-scale agricultural enter- prise is also apt to be lacking at just such pe- riods. Certain operating and overhead costs con- tinue even when there is no income. The disadvantages of part-time farming should be fully realized. It is difficult to produce many fruit and vegetable crops of satisfactory market quality and quantity on a small scale and without expensive equipment. Where certain op- erations requiring such equipment can be hired on a contract basis, as in some citrus districts, the charge must be high per acre or per tree be- cause of the smallness of the job. In comparison with full commercial farms, production costs tend to be higher on small part-time enterprises, and prices and profits lower. Part-time farms usually cost more per acre and have higher taxes because of their location in a suburban residential area. With many crops, difficulty is encountered in marketing a small volume of product. Some enter- prises such as livestock, dairying, and field crops are not suited to part-time farming. Some fruits and vegetables, flowers, poultry, and rab- bits are about the only opportunities. Small Farm Homes The subsistence farm, or suburban or rural home, is not intended as a commercial undertaking. It is purely a home in the suburbs or the open country, with production limited to food for family use and with only occasional small surpluses sold or given away. These homes are usually based upon personal preference for such a location and upon the hope of reducing costs or enjoying a better living for the same expenditure. Such a home can offer some advantages to suitable families, es- pecially where water, electricity, gas, and tele- phones are available and where transportation costs to and from work or town are not large. It is usually better suited to the fully employed person or to one with adequate income than the part-time farm mentioned in the previous section. The amount of money saved by producing part of the family food supply can easily be overesti- mated. Such production is not without expense for water, seed, fertilizers, feed, and other items. Nowhere in California can a family pro- duce its entire supply of fruit, vegetables, milk, eggs, and meat. Around Los Angeles on high- priced land, where the small farm home is common, few attempt to keep a cow or to raise large meat animals. Home food production is limited to a few locally adapted fruits and vegetables, poul- try for eggs and meat, and sometimes rabbits. Only l/4 acre of land can be profitably used un- der these conditions, including space for the home. The saving in food cost can seldom be over $200 for an average family. Where land is less expensive and it is feasible to keep a cow, an- other $100 can be saved. Under certain condi- tions the production of veal, beef, lamb, or pork can further increase these savings. Although more common near the cities, country homes are also found in some remote areas, occu- pied by workers in mines, sawmills, and road crews. Home food production, though usually limited by the soil, climate, and water supply, can contribute materially to the welfare of such families. To retired or disabled persons with adequate income, former mining and lumbering towns in the Sierra Nevada foothills and along the north coast offer some opportunities for eco- nomical homes where considerable food can be pro- duced. These small farm homes should be undertaken only by those with adequate income and with a preference for this way of life. If properly developed and utilized, they can improve the nu- trition and standard of living of the occupants. Although they cannot support a family during peri- ods of unemployment or low income, they do cush- ion distress and are probably a better place to be poor than a rented house in town. ENTERING CALIFORNIA AGRICULTURE The safest way for a man with little capital and experience to enter the farming business is to start at the bottom. As a footloose hired la- borer he can explore the different regions and types of farming before choosing a permanent ac- tivity and location. He will gain experience also and, if industrious and frugal, can save a little toward future progress. With some types of farming his next step is to rent a piece of land or a farm and there increase his earnings by employing a little capital and his managerial ability. The next step is the down payment on a farm of his own, with expectation of completing the payment during his working lifetime and fi- nally arriving at full ownership — having made a living over the years and saved the capital in- vested in the farm. Although a newcomer with adequate means can buy in at the top, his posi- tion will be less secure than if he had come up the slow, hard way a step at a time while obtain- ing experience and developing his managerial ability. In modern times, however, with high land values and intense competition, progress up- ward is slow; and there is room for only a limited number of farm owners at the top. Other positions along the way are worthy, however, of considera- ^ tion. Farm Labor Farm workers in California differ somewhat from those in midwestern and eastern states. Con- ditions of employment, housing, and relations with employers are also different. Some of this difference dates back to early days when large numbers of newly arrived Orientals were housed and handled apart from the farm and social life of the day. The farm hand who lives with the owner's family was not common and even now is sel- dom encountered. Until rather recently, most farm workers were single men, hired by the day or hour, lodged and fed in bunkhouses or labor camps for the time being, and left to shift for themselves and move on when the work was finished. The high- ly seasonal nature of such operations as pruning, thinning, hoeing, weeding, and harvesting neces- sitated a partly migratory labor force. The ad- vent of the automobile and the autocamp enabled many families to follow this work; and now cer- tain seasonal jobs are performed by families, al- though single men still predominate in some areas and types of employment. In California, during the spring of 1940, the United States Census of Population showed an em- ployed male labor force (men and boys fourteen years and over) of almost 2 million, of which 231,700, or 12.2 per cent, were in agriculture. These were divided as follows: 93,869 farm opera- tors, and tenants; 2,618 farm managers; 126,971 farm laborers and foremen; 8,242 unpaid family workers. The 1940 Census of Agriculture listed for California 132,658 farms, operated as fol- lows: 89,843 by operators owning the land; 13,991 by operators who owned part and rented part of the land; 25,399 by tenants; 3,425 by hired mana- gers. In March, 1940, those farms reported 105,680 hired workers. The previous year, in September, which is the peak month of seasonal work, 210,831 hired workers were reported. A survey of seasonal labor needs conducted by the Agricultural Extension Service Farm Labor Project showed, for 1943, a low of 80,000 seasonal workers needed in March and a high of 213,000 in September. These are largely in addition to the regular work- ers needed for cultural and livestock work on a year-round basis. The unskilled seasonal worker in California ^ agriculture is at the bottom of the agricultural ™ ladder. When there is heavy demand for workers, as in harvesting valuable crops, hourly and piece- work rates are comparatively high and earnings are good. During part of the year, however, there is little employment available; many of these workers must move to other areas or occupations [18] or maintain themselves with only occasional jobs. Housing or camping facilities for families, camps and bunkhouses for single men, although still far from adequate, are being improved and increased. The skillful and diligent family can make a fair- ly good living at these seasonal jobs, but such people are exceptional and usually settle down to more permanent work as soon as possible. Seasonal work can, however, provide an opportunity for support while one is seeing the state and gaining some experience. There are also in California many workers who are hired more or less on a year-round basis. In August, 1944, the Farm Labor offices of the Agri- cultural Extension Service estimated that a total of 82,000 such workers were employed, as compared with 167,000 seasonal workers. The regular work- ers include skilled tractor drivers, truck driv- ers, milkers, and irrigators, besides general farm hands who can perform a variety of tasks without supervision. Some are engaged on a month- ly basis; others are paid by the hour, but have regular work over most of the year. Often the family men are provided houses and other per- quisites in addition to their wages. Sometimes skilled local workers have homes in town or small farms of their own and commute daily to their permanent or seasonal jobs. For many years, farm wages have been consid- erably higher in California than elsewhere. Some permanent employees receive, besides regular wages, a bonus from the profits; such men may have annual incomes equal to what they might earn in other occupations or on small family farms of their own. From 1935 to 1939, wage rates varied from 30 to 50 cents an hour, with a 9-hour day and a 26-day month prevalent, and with monthly wages around $100 plus a house. By 1944, hourly rates were 60 to 90 cents, and monthly rates about $200. Regular farm employment offers an op- portunity to gain experience, to become estab- lished in a community, and perhaps to make limited savings toward a start in farming. It is about the only way in which a newcomer with little capi- tal can qualify himself for better farm jobs, or for opportunities to rent or operate farms on shares. Contract Work There are also job opportunities in farm serv- ice occupations such as the servicing and repair of equipment, the handling and marketing of products, and the performance of operations on a contract basis. In areas where there are many small farms, contract operators do much of the plowing and other tillage, the spraying and other pest control, and the application of fertilizers. In some of the field-crop areas, contract opera- tors with large efficient equipment do consider- able harvesting work, such as threshing and hay baling. Contract operators who possess equipment and who can obtain a skilled crew may often per- form certain operations more economically than can the farmer himself with owned equipment and sea- sonal help. Most of the alfalfa hay sold from the Imperial Valley is cut, raked, baled, and hauled by such independent contractors. In the citrus area in southern California, spraying and fumi- gation of citrus orchards are usually performed by contractors or, in a similar way, by coopera- tive associations. Much orchard tillage is also hired on a contract basis, since the prevailing size of less than 15 acres can scarcely justify the ownership and operation of a tractor and till- age equipment. With the development of other large expensive machines, such as the beet topper and the cotton picker, this type of business will increase. Thus the experienced farm worker with sufficient capital, or the part-time farmer, can improve his earnings by obtaining equipment, as- sembling a crew, and serving a number of farmers and absentee owners on a contract basis. Leasing The renting of family-sized farms is less preva- lent in California than in the central and eastern states. The 1940 Census of Agriculture listed 25,399 tenants in California, with 13,991 more who rent part of the land farmed. Many of these are large commercial operators specializing in cer- tain crops; they rent here and there to concen- trate on the preferred crop or crops and to avoid the necessity of crop rotation. Some of these are grain growers, rice growers, lettuce growers, and potato growers who rent considerable acreages and own expensive special equipment. There will al- ways be opportunities to rent irrigated land for field and vegetable crops. In Humboldt County and in the Imperial Valley, many dairymen are ten- ants. Orchards and vineyards are seldom rented, because the owners, even if living elsewhere, prefer to operate their own farms, using employees or contractors. Even so, a tenant can sometimes operate such a farm for an absentee owner or es- tate — usually on a share basis. With field crops, the rental payments are usually a share of the crop but with vegetables they are predominately cash, usually payable in advance. Leasing and leases are fully discussed in a recent bulletin. 12 Opportunities to rent are not open, however, to newcomers with little capital. Adequate equipment and a good local reputation are usually required. The operating capital required in leasing will vary widely with the type of farm. With grain and rice a large tractor and other equipment, costing about $10,000, may be required, plus sufficient cash to continue operations until further capital can be borrowed on the growing crop. With live- stock and dairy farms the tenant usually owns the stock and movable equipment, although sometimes a man with no stock and little capital can operate a place on shares. In general, to become the full renting operator of an adequate-sized farm will require $1,000 to $4,000 of capital in stock, equipment, and cash. To provide the same family income, after rent is paid, the rented farm must be larger than the farm that is owned. 12 Adams, R. L. , and William Smith, Jr. Farm tenancy in California and methods of leasing. California Agr. Exp. Sta. Bui. 655 : 1-119- 1941- [19] PERCENT PRICES (19)0-14=100) LAND VALUES (1912-14 = 100) mm 1946 U90 1821 f*«fc . U.S. DEPARTMENT OF AGRICULTURE NEC. 3*932 BUREAU OF AGRICULTURAL ECONOMICS Fig. 2. --Farm prices and land values for the United States during and after World War I and for World War II up to the first quarter of 1944. (From: United States Bureau of Agri- cultural Economics. Farmers and the fight against inflation, p. 4. Office of War Infor- mation. July, 1944- ) BUYING A FARM The purchase of a farm may easily be the most important step in the buyer's lifetime. His fu- ture financial success will largely depend upon his selection and upon the price or the terms of payment. The basic considerations involved are more fully presented in a recent publication. 13 The purpose to be served by the purchase is the first item to be considered. If the farm is bought as an investment for leasing or operation by employees or for later resale, it may not be the same kind of place that would be selected as a combined home and livelihood. Personal prefer- ences concerning climate, community, and type of farming become important in the choice of a life- time home and occupation. Since climate and local social conditions and types of farming do vary widely in California, the newcomer might well try living a while in the community before making his choice permanent. When to Buy The best time to buy a farm would be when land is relatively inexpensive and there is likely to be an early increase in prices of farm products and hence in land values. The worst time, es- pecially if purchase debt is incurred, would be during a period of high farm prices and recent increases in land values and just before a drop in the prices of products and a corresponding decline in land values. As this is written (1944) many farm purchases are being made at land values probably above those that could be justi- fied by post-war earnings from farming. The price of a farm where purchase debt is incurred must be low enough, or the debt must be small enough, to permit payment from farm earnings over a lifetime, despite cycles of good and poor prices and despite wide variations in farm earn- ings. Since land values follow these price and earning cycles, it is sometimes advantageous to await the return of more appropriate land values. Figure 2 presents graphically what happened dur- ing the last war and what is happening new. The inflation of California land values in the last war, resulting from the wartime demand for farm products, did not reach its peak until 1921, three years after the war, when the price of an acre stood at 168 per cent of its pre-war level. Unlike the rest of the country, California saw little decline in these land values until the de- pression of the early 1930 T s, when they fell to 109 per cent of their 1910-1914 average. Land worth $168 in 1921 would have been worth only $109 in 1933, a drop of $59, or enough to wipe out many equities. In that year farm foreclo- sures and bankruptcies in California reached 38 per 1,000 farms, or about the same as elsewhere in the United States. From 1935 to 1939, Cali- fornia farm land values per acre had risen only to 120 per cent of the 1910-1914 base, which was 13 Adams, R. L. California farms: to buy or not to buy. California Agr. Exp. Sta. Cir. 358: 1-12. 1944- considered by many as a normal value in harmony with the long-time normal price of agricultural products. But by June of 1944 they were up to 170 per cent of that base, or 40 to 50 per cent over the 1935-1939 average, with volume of' sales the greatest on record. It is impossible to pre- dict how much higher land will go in California, when the decline will begin, and when the bottom will be reached. It was not reached until fif- teen years after the last war. Although history will probably not repeat it- self exactly, the post-war era is sure to bring some downward adjustment in agricultural prices and land values. A purchaser of a farm cannot always wait for the best time to buy. But he should consider carefully how much he is paying and make sure that the price and the resulting debt are not higher than those considered, by informed persons and competent appraisers, to permit repayment. The budget test (p. 17) men- tioned under "Family Farms" is a proper safe- guard. The potential farm buyer may well also obtain and use an available free bulletin that discusses the importance of price more adequate- ly. 14 The purchaser with enough capital to buy outright will not incur the danger of foreclosure and loss, provided he keeps the farm clear of in- debtedness; but he may still suffer a shrinkage in his invested capital if he buys at inflated values. Hew or Old Farms Before selecting an individual farm, one may also consider the possibilities of new land and the development of a farm as compared with the purchase of existing property. A known and tested farm in a good community is the result of local experience and experimentation. Its price may appear high. But such a farm with production under way will have immediate net-income possi- bilities that can be estimated. Under good con- ditions the purchase debt may be retired in a few years, perhaps before new lands could be made ready to produce. Some new land will be brought under irrigation in California in the next few years in the Central Valley Project and in the Imperial and Coachella valleys. These areas are mapped in detail for soils, and their crop adap- tations will be fairly well known in advance. There will be some public land available for homesteading or purchase at a conservative ap- praised value; the payment of irrigation-develop- ment costs will be assessed against it over a forty-year period, without interest. Some of these lands will be similar to established irri- gated farming areas not far away, so that the problems of establishing local community life and marketing facilities will be less than in an entirely new region. Under these conditions qualified settlers (the veterans will have pref- United States Farm Credit Administration. About that farm you're going to buy. Cir. E. 29 : 1-12. 1944. (Available free at Federal Land Bank, Berkeley; and at local offices of National Farm Loan Association. ) [21] erence) may find opportunities ultimately to ob- tain farms with less capital. They must not overlook, however, the difficulties and costs. Considerable investment will be required for lev- eling land, making ditches, installing pipe lines, and constructing necessary buildings. New farming equipment will cost more than the depre- ciated but serviceable facilities usually ob- tained with an existing farm. Even with annual crops, time and capital will be required to get a new farm into production. Difficulties may arise--the crops tried may not be suited or profitable, or the soil may prove less fertile or more difficult to handle than expected. Fi- nally, to organize a new farm for its size, its layout, its crop and livestock enterprises, and bring it to early profitable production requires much more experience and managerial ability than to take over a proved farm and continue its op- eration. Capital Required Capital is the money needed for the purchase, equipping, and operation of the farm business. The buyer must have considerable capital of his own, in money or stock and equipment, part of it for the required down payment and part of it for stocking, equipping, and operating the farm until income begins. Of the total investment already mentioned as necessary for each type of farm, part might be borrowed on the security of the farm itself, and part on the security of live- stock, equipment, and crops. But a loan must be repaid with interest. The greater the debt or borrowing, the greater the interest and principal payments, and the less of the net farm income will be available for living. Tests of repayment possibilities, based on the past, show that the one-family farm can make a living for the opera- tor and his family and repay with interest about half of the capital invested in twenty years and perhaps three fourths in forty years. Table 3 shows the effect of the size of loan on the annual payment required to retire indebt- edness over different lengths of time and with interest rates of 4 and 5 per cent. The amount available for living from an average annual net farm income of $2,000 after meeting those debt payments is also shown. This $2,000 net income could be considered as $1,000 from interest at 5 per cent on a $20,000 investment and $1,000 as wages for labor and management. If $1,200 were the minimum living cost, the maximum loan that could be repaid even over forty years with in- terest at 4 per cent would be $15,000, which is a 75 per cent loan on a $20,000 investment. An 87.5 per cent loan cannot be repaid from earn- ings of the small farm except where the annual net income is higher than usual for the invested capital, or where the purchase price is lower than usual for a farm producing that net income. For a family-sized farm requiring a total in- vestment of $20,000, about $5,000 capital is re- quired; and more would be desirable. If the $20,000 included $15,000 for real estate and buildings and $5,000 for equipment and livestock, a loan of 90 per cent on the real estate ($13,500) and 30 per cent on the equipment and stock ($1,500) Annual Payment on Amortized Loan TABLE 3 and Amount Available for Living from $2,000 Net Farm Income Amount of loan, dollars Item 5,000 7,500 10,000 12,500 15,000 17,500 Borrowed portion of $20,000 purchase price, m per cent 25.0 37.5 50.0 62.5 75.0 87.5 Dollars per year With ten-year repayment : Payment with 4 per cent interest Available for living Payment with 5 per cent interest Available for living With twenty-year repayment: Payment with 4 per cent interest Available for living Payment with 5 per cent interest Available for living With thirty-year repayment: Payment with 4 per cent interest Available for living Payment with 5 per cent interest Available for living With forty-year repayment: Payment with 4 per cent interest Available for living Payment with 5 per cent interest Available for living 616 1,384 648 1,352 368 1,632 401 1,599 289 1,711 325 1,675 253 1,747 291 1,709 925 1,075 971 1,029 552 1,448 602 1,398 434 1,566 488 1,512 379 1,621 437 1,563 1,233 767 1,295 705 736 1,264 802 1,198 578 1,422 651 1,349 505 1,495 583 1,417 1,541 459 1,619 381 920 1,080 1,003 997 723 1,277 813 1,177 632 1,368 728 1,272 1,849 151 1,943 57 1,104 896 1,204 796 867 1,133 976 1,024 758 1,242 874 1,126 2,158 -158 2,266 -266 1,288 712 1,404 596 1,012 988 1,138 862 884 1,116 1,020 980 [22] would come to $15,000, or 75 per cent of the in- vestment, leaving the operator's capital require- ment at $5,000. If further borrowing were needed for living costs and operating capital until in- come began, the additional debt would make repay- ment and living more difficult. Hence the mini- mum capital required to purchase a family-sized farm is 25 per cent of the total investment (in- cluding livestock and equipment not usually pur- chased with the farm) plus enough operating capital for family support and farming operations until income begins or crops can be financed or sold. With a poultry farm where the total invest- ment for a family-sized farm is lower, the buyer's initial capital must still be high, since financ- ing is not available for the stock. A poultry farm of 2,000-hen capacity costing $10,000 might require a down payment of only 10 per cent or $1,000; but an additional $3,000 to $4,000 would probably be needed to obtain and raise chicks to stock the place and to provide a living for the operator until production begins. Although first income would come in a few weeks or months, it would be two or three years before operation to normal full capacity was reached. The prospective farmer with insufficient funds to make a safe purchase might well wait and ac- quire more capital or find a time or opportunity when his money will buy more. Renting, where possible, offers a better opportunity to the man with limited capital than the purchase of a farm. If he buys an adequate -si zed farm with too small a down payment, living costs and the large debt payments cannot be covered by current net farm income, especially in years of low prices; as a result, he becomes delinquent and may lose his property. If he buys too small a farm the lower income available will likewise be inadequate to meet living costs and the required smaller debt payments. The carefully prepared budget of es- timated farm income, costs, and net income will serve to test the adequacy of the buyer's initial capital. A man not thrifty enough or not suc- cessful enough to obtain the capital for a safe purchase will probably not be a success at farm- ing. Financing the Farm California agriculture is well served by credit facilities, both for short-term loans of operating capital and for purchase loans. Pri- vate banks, cooperative production credit asso- ciations, and cooperative and private marketing agencies extend short-term credit or make ad- vances for harvesting crops; repayment is from the proceeds of the crop, which is security for the loan. Credit for purchase of breeding or dairy stock (with repayment over several years) can be obtained through some cooperative live- stock credit associations, private banks, and finance companies. The amount of such credit varies greatly with the borrower's needs and re- payment possibilities; but farming operations can rarely be financed entirely with borrowed funds. Purchase or long-time mortgage credit is available from private individuals, national farm loan associations and the Federal Land Bank Commissioner, insurance companies, and private banks and financial institutions. The various agencies have somewhat different policies in de- termining the value of the farm, the maximum per- centage of the appraised value that may be loaned, the rate of interest, and the repayment schedule. Federal Land Bank loans are currently avail- able through local farm loan associations cover- ing most of California. The maximum loan of this kind is $50,000, or 50 per cent of the appraised normal value of the land plus 20 per cent of the appraised value of the permanent insured improve- ments, whichever is smaller. Interest is cur- rently at 4 per cent and repayment may be amor- tized over periods up to forty years, with the privilege of earlier repayment. Until July 1, 1945, a Land Bank Commissioner loan up to $7,500, with interest at 5 per cent, may also be obtained to supplement such a loan, bringing the obtain- able amount up to 75 per cent of the appraised normal value of the property. Normal value is based upon long-time earning power of the farm under normal prices. The Veterans' Farm and Home Purchase Act of California provides for financing the purchase of farms and homes by qualified veterans who were residents of the state when entering the service. The plan provides for the purchase of a farm by the Veterans' Welfare Board for resale to the in- dividual on a purchase contract. At present the Board may invest up to 90 per cent of the value of the farm or $7,500, whichever is smaller; the total value of the place purchased may not ex- ceed $15,000. Interest at 5 per cent is charged on the outstanding balance, and repayment is amortized over twenty years. Appraisal by bank or outsiders is required as a safeguard to both the veteran and the Board. This program was in operation after the last war and assisted about 450 veterans in farm purchases. It is now again in operation. Its scope is limited by the funds available, which are from bond issues approved at the state elections; by the low maximum lim- its on size of loan and value of farm; and by the 5 per cent interest rate. In the near future the plan will perhaps be liberalized to make its service more adequate. In financing the purchase, the buyer should elect as short a repayment period as possible, with the privilege of earlier repayment. Early repayment reduces the total interest that must be paid. It also lessens the danger of losing the farm at some future time through a change in economic conditions or in the operator's physical capacity. Table 3 shows the amortized annual pay- ments required for different interest rates and different time periods. A loan of 25 per cent of the investment can be repaid in ten years, and all net income thereafter is available for the [23] operator's personal use. A 50 per cent loan can be repaid, with frugal living, in twenty years. If the time is prolonged to thirty years, annual payments on a 4 per cent loan of $10,000 are re- duced only $158 annually, during the first twenty years, and total payments are $17,340 for the thirty-year period, an increase of $2,620 over the $14,720 for the twenty-year repayment period. A loan of 75 per cent of the investment cannot be repaid with interest much under forty years, by which time the borrower will have paid more in interest than he borrowed originally. Where ob- tainable, a variable annual payment plan may well be elected — one based upon current income rather than upon a fixed annual amount. Selecting the Farm Having adequate capital and having decided to buy a farm of a certain size and type in a par- ticular area, the buyer should select a particu- lar place from among those available. The search may entail much inquiry, travel, and pa- tience. There is no central bureau where all farms for sale are listed. The seller may put up a sign on the property, advertise it, list it with real-estate brokers, or merely pass the word along to neighbors and to possibly inter- ested persons. Often a farm not intended for sale can be purchased through a satisfactory of- fer. Interviews or correspondence with those familiar with the territory may locate one or more suitable farms. The county Veterans' Farm Advisory Committee may be able to assist the veteran in his search. The buyer should inspect and check the farm thoroughly to make sure it is good enough and large enough for his purpose. He should care- fully consider the soil, water supply, age and condition of fences, buildings, pumping plant, and pipe lines. He should also determine the age, condition, and productive capacity of the trees and crops — preferably with the help of a competent, disinterested person. If physical re- quirements are met, the budget test should be applied (see p. 17) . Most financing agencies will make or require an adequate appraisal and assist in the budget test. Before making a de- posit, one should inquire about the financing; the purchase contract may well be made condi- tional on a satisfactory arrangement for a loan. Where financing or help by a public agency is not required, the buyer may well secure an inde- pendent appraisal before making an offer. If at any step in the negotiations about price or fi- nancing the farm fails to qualify, the buyer should regard such failure as a safeguard to him- self, not as evidence that the appraiser or the financing agency is too conservative. He should look further and find an adequate farm at a price that can meet all requirements for a successful purchase . Buying the Farm California real-estate laws provide that when a buyer or seller seeks and obtains from a li- censed broker any service in connection with the sale of a listed property, a broker's commission of 5 per cent of the purchase price is collectable. Usually the seller pays the commission from the proceeds of the sale and thus reduces the net amount received for the property. It does not always follow, however, that the price would be lower by the amount of the commission had the _ broker not been consulted. The broker does per- ™ form services in locating a farm, bringing buyer and seller together, negotiating the price, exe- cuting the contract of sale with its appropriate terms, and arranging for the escrow, title in- surance, and financing. Exchange of money and mortgage notes or a deed of trust on the part or behalf of the buyer on the one hand, in return for the deed or title to the property on the other, is usually accomplished in escrow by a local bank or title insurance company. The val- idity of a title to California property may be assured through the purchase of the title insur- ance at a cost of 1/2 to 1 per cent of the pur- chase price--about $117 on a $20,000 deal, with some local variations. The insuring company in- vestigates the title. If it grants the insur- ance, it guarantees the title to be good, at the time of transfer, to the amount of the purchase price. It will reimburse the policy holder for that amount if some earlier flaw in the title shows up at any later date , so long as he holds that property. Financing companies loaning on a mortgage usually require title insurance. Deeds and mortgages should be recorded with the county recorder, and federal documentary tax stamps are required on the deed to an amount of 55 cents on each $500 of the purchase price. Prepaid or ac- crued taxes, insurance, and other overhead or ex- pense items may be prorated between buyer and seller according to specification in the contract of purchase. The expense of appraiser, broker, escrow, and title insurance can be avoided; but then both buyer and seller should recognize the hazards incurred and substitute additional ade- quate safeguards. FARMING IN CALIFORNIA Farming in California is usually an intensive specialized commercial undertaking, conducted for the purpose of making a living or securing an in- come from the labor, managerial ability, and capi- tal employed. It is not an occupation of last resort for those who cannot succeed elsewhere. Success in farming requires good management, the application of correct technical knowledge, skill at the jobs involved, industry, and thrift. The California farmer is more of a business man than a laborer; the traditional "strong back and weak mind" might make a fair worker but not a farmer. % In this day of labor-saving farm machinery and available special workers for certain tasks, the strong back is the least necessary part of a farmer's ability. Many women, elderly men, and physically handicapped persons are successful farm operators. They simply select the essential [24] things to do or provide and then see that instruc- tions are carried out in an adequate, timely, and economical manner. Cash costs in producing crops and livestock are greater in California than in most states. Local taxes are higher because of the public services available. One must consider irriga- tion-water costs, the high pest-control and fer- tilizer requirements of specialty fruit and truck crops, the great seasonal need for labor, the high wages of hired help, and the elaborate me- chanical equipment required. To meet these ex- penses adequately but not extravagantly, the farmer must be a capable financial manager. He must also be a skillful farmer so that his yields or production will cover these costs and leave a profit. His products must be good enough to com- mand an adequate price, and he must market them at the proper time and place. Costs, returns, and profits for many important California farm enterprises have been studied by the Agricultural Extension Service over the last twenty-five years. These studies show that yield or production per acre or per cow or other pro- ducing unit is the most important profit-determin- ing factor. The best profits go to farmers with good farms who manage to achieve good production. On the methods employed, the newcomer can obtain much technical information from the College of Agriculture through its local Agricultural Ex- tension Service offices and farm advisors. The second important consideration is the price re- ceived for products as it reflects the quality of the- product and the marketing choice of the operator in any given year. The usual producer in California can choose his marketing outlet among several excellent cooperative and private agencies, dealers, or processors. High costs seldom make a good farm unprofitable, and low costs seldom rescue a poor one. In determining profit, the more important factors are yield and price. Costs will, however, whittle away at profit or net income if not watched carefully. The successful farmer in California keeps good records, analyzes his business, attends educa- tional and other farm meetings, and pays a siz- able income tax. ACKNOWLEDGMENTS The information presented herein has been drawn from many sources; the author acknowledges the use of many earlier and more detailed publi- cations, especially those listed in the footnotes. Major use was made of the study by Crawford and Hurd (footnote 5, p. 6). Particular thanks are due to R. L. Adams, Professor of Farm Management, Agricultural Economist in the Experiment Station and on the Giannini Foundation, who furnished initial suggestions and assisted in the final re- visions of the manuscript. [25] CALIFORNIA AGRICULTURAL EXTENSION SERVICE OFFICES LOOK FOR THIS SIGN State Office B. H. Crocheron, Director, 140 Giannini Hall, Berkeley 4. Tel. AS 6000, Local 362. C. F. Elwood, Public Service and Information, 108 Giannini Hall, Berkeley 4. Tel. AS 6000, Local 351, County Offices Alameda County - P. 0. Bldg. , Hayward. Tel. Hayward 176. Butte County - Federal Bldg. , Oroville. Tel. Oroville 78. Colusa County - P. 0. Box 179 (Federal Bldg.), Colusa. Tel. Colusa 27. Contra Costa County - Hall of Records, Martinez. Tel. Martinez 1240, Local 15. El Dorado County - P. 0. Bldg., Placerville. Tel. Placerville 157. Fresno County - Room 20, Federal Bldg., Fresno 1. Tel. Fresno 3-2284. Humboldt County - P. 0. Bldg., Eureka. Tel. Eureka 284. Imperial County - Court House, El Centre Tel. El Centro 701. Kern County - P. 0. Box 791 (2610 M St.), Bakersfield. Tel. Bakersfield 7-7671. Kings County - P. 0. Box 707 (131 E. 8th St.), Hanford. Tel. Hanford 587. Lake County - Kelseyville. Tel. Kelseyville 5-W. Lassen County - Memorial Bldg., Susanville.. Tel. Susanville 391-B. Los Angeles County - 808 N. Spring St., Los Angeles 12. Tel. Mutual 3383. Madera County - P. 0. Bldg., Madera. Tel. Madera 337. Marin County - P. 0. Bldg., San Rafael. Tel. San Rafael 64. Mendocino County - Jamieson Bldg. , Ukiah. Tel. Ukiah 128. Merced County - County Adobe Bldg., Court House Square, Merced. Tel. Merced 1866. Modoc County - P. 0. Box 245 (Court House), Alturas. Tel. Alturas-Red 962. Monterey County - Court House, Salinas. Tel. Salinas 3911, Local 39. Napa County - P. 0. Bldg., Napa. Tel. Napa 843. Orange County - 220 Ramona Bldg., Santa Ana. Tel. Santa Ana 3000, Locals 301, 302. Placer County - 135 Court Street, Auburn. Tel. Auburn 330. Riverside County - P. 0. Bldg., Riverside. Tel. Riverside 0670. Sacramento County - 315 Federal Bldg. , Sacramento 2. Tel. Sacramento 3-8041 , Ex. 280. San Benito County - Court House, Hollister. Tel. Hollister 344. San Bernardino County - Federal Bldg., San Bernardino. Tel. San Bernardino 2134. San Diego County - 404 U. S. Customs Bldg., San Diego 1. Tel. Main 3811, Ex. 255. San Joaquin County - 145 S. American St., Stockton 7. Tel. Stockton 5-5697. San Luis Obispo County - P. 0. Box 911 IP. 0. Bldg.), San Luis Obispo. Tel. San Luis Obispo 1267. Santa Barbara County - P. 0. Box 126 (Federal Bldg.), Santa Barbara. Tel. Santa Barbara 5189. Santa Clara County - 201 P. 0. Bldg., San Jose. Tel. Columbia 3866. Santa Cruz County - Court House Annex, Santa Cruz. Tel. Santa Cruz 756. Shasta County - P. 0. Box 560 (County Office Bldg.), Redding. Tel. Redding 420. Siskiyou County - Court House, Yreka. Tel. Yreka 417. Solano County - County Library Bldg., Fairfield. Tel. Suisun (Fairfield) 421. Sonoma County - Court House, Santa Rosa. Tel. Santa Rosa 116. Stanislaus County - Federal Bldg., Modesto. Tel. Modesto 257. Sutter County - P. 0. Bldg., Yuba City. Tel. Yuba City 1364. Tehama County - Federal Bldg., Red Bluff. Tel. Red Bluff 224. Tulare County - P. 0. Bldg., Visalia. Tel. Visalia 583. Ventura County - 52 N. California St., Ventura. Tel. Ventura 5441. Yolo County - Court House, Woodland. Tel. Woodland 92. Yuba County - P. 0. Box 910 (Federal Bldg.), Marysville. Tel. Marysville 437. [26] lOm-Dec. ,' 44(2743!