State Farm Sales Hit Record $17.8 Billion in 1990 : Agriculture: The slight increase over 1989 came despite water cutbacks to growers. The drought will make the reductions larger this year.

Sales of California farm products reached a record $17.8 billion in 1990 in spite of the drought, the state Department of Food and Agriculture reported.

However, the department said Friday that the 1% increase in farmers’ sales was offset by increased energy and water costs resulting from the drought.

Milk and cream from dairy cattle continued to be the largest source of farm income in the state. Milk production reached a record 20.9 billion tons last year, up 8% from 1989.

Higher prices for corn, cotton, rice and hay helped boost sales slightly higher than the $17.6 billion in 1989.

California orchards last year yielded 12.7 million tons of fruit and nuts with a sales value of $4.4 billion. Production was down slightly, but the gross return was up 2%.

Production gains of more than 10% were registered by pistachios, pecans, almonds and oranges, but declines were reported for prunes, avocados and cherries.

Grapes continued to lead all California fruit and nut crops, with sales of about $1.4 billion.

Vegetable production last year amounted to 19 million tons, an increase of about 2%. Sales were at $3.9 billion, virtually unchanged since 1989.

California growers last year faced water shortages, but far smaller than what they face in 1991, the fifth year of the drought.

The federal Central Valley Project, the largest water distribution system in the state, has reduced water deliveries to agricultural customers between 25% and 75%, depending on region and type of contract.

Last year most growers got 50% to 75% of their normal supply.

The State Water Project, the other large water supply system, has halted all deliveries this year to the growers it serves, mostly on the west side of the San Joaquin Valley.

Last year the state project maintained 50% service for agriculture.

Some growers were forced to change crops or idle portions of their land, but many were able to turn to wells for help in meeting the shortage with more expensive water.