California Farms Revive

California's farm economy is on the rebound after several years of sharp decline, with farmers gearing up to plant thousands of acres of idled fields, rehire laid-off workers and resume buying tractors, trucks and other equipment.

Behind the resurgence: The region's wettest winter since 2006 is allowing water officials to open crucial irrigation spigots after three years of sharply curtailed supplies. Plus, a global uptick in crop prices means the products of California's vast farm region are seeing growing demand.

Although unemployment in the Central Valley region remains among the highest in the state and nation, many farming towns report the early signs of a rebound. The upsurge is likely to help the economic recovery of the nation's most populous state, where seasonally adjusted March unemployment was 12.3% compared with the national average of 8.8%, despite pockets of prosperity such as Silicon Valley.

In Firebaugh, Calif., west of Fresno, sales-tax receipts rose 12% to 15% in the first quarter from the same period a year ago. A local tomato processor ramped up its employee head count to 1,100 from 800 over the same time period, said City Manager Jose Antonio Ramirez. "It's a big trickle down effect going on here," he said. "The restaurants are busy, the auto parts stores are busy, everybody is busy."

Labor economists say the valley's unemployment rate, which normally tops that of most other parts of California ahead of the big spring growing season, is likely to drop significantly in coming months because of the new planting.

The U.S. Department of Agriculture projects that the number of acres in California planted with cotton this year will jump 26% to 385,000 compared with 2010, while acres planted with wheat will rise 18% to 915,000 and acres growing barley will increase 36% to 150,000.

Farm employment already is rebounding throughout the valley. In Tulare and Modesto counties, farm jobs jumped 19.6% and 21.2%, respectively, in March from a year ago, while statewide it rose 2.3%, according to estimates by the state Department of Economic Development. Nonfarm employment dipped slightly in both counties in the same period, and increased 1.4% statewide.

The farm rebound could be short-lived if crop prices decline or drought returns. But the state is currently seeing a turnabout from a three-year drought emergency that Gov. Jerry Brown, a Democrat, officially declared over after March 30 readings by state hydrologists showed mountain snowpack at 165% of normal, the highest in five years. With abundant precipitation across the West this year, water managers in California and other states including Arizona and Colorado also have increased shipments to farmers.

In California, managers of the federal Central Valley Project, which delivers water to the driest southern reaches of the valley, have raised allotments to farmers to 75% of the maximum, up from 45%. The farmers, many in the 600,000-acre Westlands Irrigation District, have been among the hardest hit in the state because their allotments at one point during the drought were cut to zero.

Now most are busy trying to get operations back to normal. Harris Farms along Interstate 5 near Fresno has increased planting this year by 59% to 11,000 acres from 6,900 acres a year ago, while boosting its work force to 542 from 371, said John Harris, chairman and chief executive of the family-owned business.

Mr. Harris said the farm also is upping its spending on equipment like tractors to $2.5 million this year from $500,000 in 2010. He credited his company's rebound to increased water shipments as well as strong prices for commodities such as cotton and wheat. If next winter also is wet, he added, Harris Farms would likely plant all 13,000 of its acres.

Mark Borba said his family's nearby 8,600-acre farm bought five tractors this year, bringing the total to 20, and replaced five of its 25 pickup trucks. "Some had over 350,000 miles on them, so this was due," Mr. Borba said.

That buying has boosted revenue at dealers such as Kern Machinery Inc., whose sales of tractors, harvesters and other equipment are up 15% to 20% so far in the fiscal year begun Nov. 1 compared with the same time a year ago, said Clayton Camp, president of the Bakersfield company.

Work orders so far this year are up by the same amount at Britz-Simplot LLC, a seller of fertilizer and other farm products in Five Points, Calif., which has boosted its hiring to 85 employees from 70 as a result, said Scott Foth, a manager of the company.

"When the farmer makes money," he said, "everybody in the valley makes money."