Almond Facts, May-June 2021

ADVOCACY REPORT Massive State Budget Surplus Creates an Opportunity for Ag & Water Investments With California well overdue to take action and address water supply, climate, energy and other needs in our communities, Ag Council is advocating to support Blue Diamond Growers on multiple fronts within state budget negotiations. An unexpected $75.7 billion surplus deriving from tax revenues and a prosperous stock market presents an opportunity for state leaders to strategically invest in critical unmet needs, including addressing immediate drought-related issues, while ensuring farmers can thrive into the future. The budget surplus in California is a chance to leverage state funds with private dollars through partnerships to help both farmers and ag cooperatives like Blue Diamond Growers achieve the ambitious environmental and labor standards set by the State of California, as well as take vital steps to fund critical water infrastructure and help us better prepare for drought and Sustainable Groundwater Management Act (SGMA) implementation. The following is an overview of key state budget issues Ag Council is advocating for as Gov. Gavin Newsom and legislators negotiate a final budget, which must be approved in the State Legislature by June 15 and then sent to the governor for his signature. Water Conveyance Ag Council supports the allocation of $200 million provided in Gov. Newsom’s water, drought and climate package announced in early May. These initial proposed dollars are a good start to help begin to fund crucial projects, such as: repairing the degradation of the Friant- Kern Canal, the Delta-Mendota Canal and major portions of the California Aqueduct, all of which are losing water due to subsidence. Special appreciation goes to Sen. Melissa Hurtado (D-Sanger) and other San Joaquin Valley legislators for championing this issue through SB 559 legislation to increase water supply for farms, provide clean drinking water, as well as alleviate pressure on California’s overall water system. Sustainable Groundwater Management Act (SGMA) Ag Council, along with ag partners, is advocating for the inclusion of $1 billion to fund the implementation of the Sustainable Groundwater Management Act. Three areas are essential under the SGMA umbrella: planning, projects and multi-benefit land retirement. First, funding is critical to further assist in SGMA planning at the local level. Second, projects such as widely effective recharge projects are excellent climate and drought mitigation tools. Those efforts must continue to be supported through state funding. The governor in his May Budget Revision and the State Senate are currently considering $300 million in these categories and we are urging more. Third, given that SGMA may require the fallowing of almost a million acres of farmland, we support a multi-benefit land 2 0 A L M O N D F A C T S