Loooking at Orange County’s Past Year Sheds Light on ’86 : Agriculture

As Orange County continues to be one of the world’s most rapidly urbanizing areas, the amount of land devoted to agriculture continues to shrink. In 1985, just 1% of the county’s work force, or about 8,645 workers, were involved in agriculture.

In 1984, just 30,708 acres remained in farming in the county, and while the Orange County Department of Agriculture does not yet have figures for 1985, that number almost certainly will be lower. In 1983, there were 34,521 acres involved in agriculture.

For the county’s remaining farmers, 1986 probably will be a tough year. In its annual forecast, the Bank of America said California’s agricultural industry will face “another year of financial stress in 1986,” largely due to low commodity prices, more competitive export markets and protectionism abroad.

Farmers’ net income “will remain stagnant at historically low levels, and highly indebted growers will continue to leave the business,” the B of A report said.

Figures for 1985 will not be available until early in April, but in 1984 the top three food crops in Orange County were strawberries, Valencia oranges and celery, according to the county’s Department of Agriculture. Farm economists say low cotton prices probably will prompt some farmers in the central and Imperial valleys to switch to the crops favored by Orange County growers, putting increased pressures on the local farmers in 1986.

Although farmers are suffering, the drop in commodity prices and the decline of the dollar is boosting the outlook for food processors, said Nomi Ghez, an analyst with Goldman Sachs & Co. in New York.

“These are generally well-managed companies (that) have introduced many new products in recent years.” In addition, many of them have been restructured, she said.

State, county and industry officials say small food processors continued to proliferate in Orange County as specialty foods find growing markets. But high land and labor costs will discourage expansion by larger food processors, the officials said, and a consolidation of larger operations will continue.