CFWC posted the following comment in the LA Times that corrected Beacon Economics’ confusion about the difference between “record revenues” and “net farm gate sales.”
Christopher Thornberg of Beacon Economics says California agriculture enjoyed “record revenues” during the drought and, therefore, should be able to afford the tunnels. He confuses “revenue” with “income.” Costs were skyrocketing at the same time revenue spiked, resulting in reduced income for farmers. According to the California Department of Food and Agriculture, in 2013 when farm sales rose 5.1 percent to a record high of $53.5 billion, costs rose even more pushing net farm income down 11 percent.
Readers should beware of the difference between facts and reckless commentary. And it is facts that public water agencies will use to make decisions on whether it’s affordable to participate in big projects like WaterFix.