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Drought Worries California Farmers

By Amanda Brodhagen, Farms.com

California’s agricultural community is dealing with unprecedented drought conditions.

On Friday, Gov. Jerry Brown called a Drought State of Emergency amid what is believed to be the driest year in recorded state history. Brown asked state officials to assist farmers and communities who are affected by the drought conditions. “I’ve declared this emergency and I’m calling all Californians to conserve water in every way possible,” Brown said in a news release.

California is the largest agricultural producing state in the nation, which uses about 80 percent of the state’s water supply. The announcement was welcomed by California growers who are looking for a solution to the state’s water problems, but also know that the declaration won’t result in an immediate solution. The proclamation serves as a short term measure and gives state officials more authority to manage the water supply throughout the state.

In addition to allowing more flexibility related to the state’s water regulations, this latest announcement represents a series of orders issued by the governor.  Last May, Brown gave an executive order to state water officials asking them to review the administrative process for allowing voluntary transfers of water. Also, in December, the governor created a drought task force to prepare for water scarcity in anticipation of a drought related emergency.

“We can’t make it rain, but we can be much better prepared for the terrible consequences that California’s drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas,” said Brown.
 


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The 12-day war between Iran-Israel came to an end sending crude oil futures plunging as the big fund speculators removed the war risk premium.

The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

Instead, funds were chasing and sending tech stocks higher with the S&P 500/NASDAQ indexes setting new all-time record highs!

June 1 USDA Hogs and pigs report was slightly bearish while the U.S. $ Index traded to new contract lows as the de-dollarization that began in 2014 continues.

Feed in the form of soybean meal futures for livestock producers got cheaper, trading to new contract lows.

The Stats Canada seeded acreage update was bullish canola and wheat.