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California Farmers Face Rising Costs and Technological Challenges in a Changing Landscape

Farmers in rural Northern California are facing a tough road ahead. Labor costs are rising, farmland is shrinking, and there’s growing pressure to adopt new technology. Experts warn that these challenges could significantly reshape the region’s agricultural landscape in the coming decades.

At the annual Cherry Institute in Yakima, Washington, Walt Duflock of Western Growers spoke about statewide farming trends. He pointed out over the past 12 years, labor costs have increased significantly, particularly for farmers who rely on the H-2A visa program for seasonal workers. The program’s minimum wages, combined with housing and food costs, push expenses to $29 per hour in California—the highest in the country.

Many growers are struggling to absorb these costs, leading some to scale back operations or shift to crops requiring less manual labor. Others are turning to automation to reduce dependence on human workers. Companies like Carbon Robotics and Monarch Tractor offer robotic weeders and autonomous tractors, technologies that some believe are critical for sustaining specialty crop production.

Another major concern is farmland loss. USDA data shows California could lose one-third of its farm acreage and half its farmers by 2052, compared to 1997. As land disappears, ag tech companies—many of which rely on being close to crops—may move operations out of state. At the same time, investment in agricultural technology is slowing. Venture capital funding peaked at $53 billion in 2021 but has dropped 69%, partly due to the collapse of vertical farming startups. This makes it harder for new automation companies to grow and support the farmers who need them.

Policy decisions will play a key role in the industry’s future. Assemblyperson Heather Hadwick for District #1 has underscored the need for pragmatic, grounded support: “We must take these concerns seriously. That means investing in practical solutions like water infrastructure, modernized ports, and tax incentives that truly support producers on the ground. Innovation is important, but it must be paired with policies that make sense for rural California. If we want to preserve our state’s agricultural heritage and protect future generations of farmers, we need to ensure they have the tools, support, and voice they deserve.”

“I will continue to advocate for policies that protect our land, uplift our rural economies, and honor the vital role of agriculture in California,” Hadwick added.

Her comments echo what many in the industry already feel: that without targeted support, the future of California’s agriculture is uncertain.

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