The outlook for some California crops is better.

According to Bank of America agricultural economist Frederick L. Cannon, the outlook is positive for producers of such specialty crops as fruits, nuts, wine and nursery products. Huge surpluses of milk, sugar beets and grains and low market prices cloud the horizon for those commodities, but government subsidies will keep income from those crops elevated as well as cotton. But the remaining 40% of the industry--vegetables and nonsubsidized field crops--will continue to find prices low and domestic and foreign competition strong, Cannon said, though there are some signs of improving demand.