# California Farmers and Drought



## Vol (Jul 5, 2009)

AgWeb....

Regards, Mike

http://www.agweb.com/article/california-farmers-reap-record-sales-in-record-drought--naa-associated-press/


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## Teslan (Aug 20, 2011)

Now I don't know anything about farming or marketing almonds, but I really doubt this statement from the article. "California farmers have passed the higher costs of water on to consumers, with almond prices soaring from $2.40 a pound in 2012 to $5 last year." Since when have farmers been able to pass on the higher costs of growing any crops on to the consumers? I have thought the price of crops, especially of those prices not listed as commodities, were simply supply and demand.


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## Vol (Jul 5, 2009)

Teslan said:


> Now I don't know anything about farming or marketing almonds, but I really doubt this statement from the article. "California farmers have passed the higher costs of water on to consumers, with almond prices soaring from $2.40 a pound in 2012 to $5 last year." Since when have farmers been able to pass on the higher costs of growing any crops on to the consumers? I have thought the price of crops, especially of those prices not listed as commodities, were simply supply and demand.


When the producer has the benefits of supply and demand working on their side, you can pass on additional costs to the purchaser. Sort of a take it or leave it situation....and the Chinese have been doing a lot of taking with nut crops for the last several months....not only almonds but also pecans.

Regards, Mike


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## somedevildawg (Jun 20, 2011)

Ya, article should have read " however, high demand for almonds has kept pace with the rising costs of water....."


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## luke strawwalker (Jul 31, 2014)

Teslan said:


> Now I don't know anything about farming or marketing almonds, but I really doubt this statement from the article. "California farmers have passed the higher costs of water on to consumers, with almond prices soaring from $2.40 a pound in 2012 to $5 last year." Since when have farmers been able to pass on the higher costs of growing any crops on to the consumers? I have thought the price of crops, especially of those prices not listed as commodities, were simply supply and demand.


It is...

That's just voodoo economics on the part of the writer of the article...

Later! OL J R


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