The agricultural industry faces increasing pressures from market, climate, and regulatory forces, such as rising costs for fertilizer, fuel, freight, and labor; higher frequency and intensity of droughts and weather events; and increasingly complex regulations. All of these affect future competitiveness of the west’s agricultural industry.
We analyze the complex questions facing agricultural businesses, associations, growers, and crop product industries. Our suite of economic models and data characterize the linkage between resources, input markets, and the domestic and international market for crops. We prepare analyses ranging from crop product benefit assessments to the impacts of changing costs and market conditions on crop prices, profitability, and land values.
The regulatory environment is increasingly complex, which affects the future competitiveness of the industry. We work with clients to analyze the economic impacts of proposed agricultural regulations and policy, and help explain those outcomes to policymakers to inform better regulations and policy development. We prepare data-driven economic analysis that illustrates economic impacts from farm-level costs to regional jobs, income, and higher food costs to consumers.
California agriculture is an export-driven industry. We prepare industry baselines and market assessments of current cost pressures and price outlooks. These assessments support industry outlooks and price negotiations with buyers. Our team distills complicated economic analysis into actionable insights for the industry.
Water and Climate Risk
Economic water risk measures how changing water supply availability, cost, policies, regulations, climate, and market conditions affect farming and lending financial outcomes. Water scarcity–due to climate, policy, and hardening demand–is increasing across the west, and in many regions the industry hardest hit is agriculture. Water risk has downstream effects on the entire agricultural supply chain and consumers.
Economic benefit assessments include studies to quantify the benefit of crop products to support regulatory approval or push back against potential use limitations. We also prepare economic contribution analyses that illustrate the economic value of an agricultural sector to the regional economy in terms of jobs, income, and regional tax base.