The California and Arizona agricultural economies are coming off one of their best seasons in a decade, and the next year looks to be a continuation of this trend, according to Western Farm Press.
"Overall, however, it was a good year, so a good many of the bank’s customers are embarrassed to talk about how good it was," Vernon Crowder, the vice president and agricultural economist for Rabobank, said at the World Ag Expo in Tulare, California. "We expect this year to be as good as well — just maybe not as good as 2011."
According to the news source, Crowder remains optimistic for the sector, as he estimates that agricultural exports will remain strong, interest rates will stay low and the overall economy may pick up.
Water issues have emerged due to the dry winter this year, something he feels that farmers will have to prepare for. However, despite this fact, he doesn't expect the people who have used farm equipment to suffer, as their production will likely stay the same as 2011.
The Associated Press reported that a recent string of winter storms has alleviated some of the fears held by California farmers, as an increased level of snow may help to add water to the ground.