Domena A. Agyeman, UCCE Agriculture and Natural Resources Economics Advisor; Butte, Glenn, and Tehama Counties
Introduction
This report summarizes the primary challenges reported by agricultural producers from Butte, Glenn, and Tehama counties who participated in an economics needs assessment survey. Respondents were asked to indicate the top three challenges impacting the future success of their operations and to suggest what the University of California Cooperative Extension (UCCE) should focus on to improve the success of their operations.
Location of business and main products produced by respondents
Among 52 producers who completed the survey, 75% had their businesses located in Butte county, while 15% and 14% were based in Glenn and Tehama counties, respectively. Additionally, 37% reported they had businesses in other counties, including Colusa, Plumas, Sierra, Stanislaus, Sutter, Sonoma, Solano, Tulare, Merced, Lassen, and Yuba. Most respondents (71%) were crop producers, 42% were livestock and hay producers, and 4% were timber producers. Figure 1 shows the percentage of respondents by the types of products they produced.

Fig 1: Percent of respondents by types of products they produced.
Main challenges impacting the future success of operation
Among 50 respondents who listed the top 3 challenges impacting the future success of their operations, 74% cited regulations as one of the top three challenges (Figure 2). This was followed by concerns about low prices, which was cited by 42% of respondents, and high cost of production, mentioned by 38%. Notably, 92% of respondents indicated at least one of these challenges in their top three challenges, while 14% listed all three. “Other challenges” represents a combined list of challenges for which each was cited by a few respondents. These challenges included inflation, interest rates, insurance, trade, transportation, fire, drought, encroachment, and unstable world situations. This indicates that while these issues are not as commonly reported as the top challenges, they still contribute to the broader set of concerns impacting the future success of farm operations in the region.
Regulations were the only challenge cited by more than 50% of both crop and livestock producers as among their top three challenges. Only 2 of the 19 respondents who produced livestock reported low prices in their top three challenges, while 20 of the 37 crop producers did. Despite the small sample size, these results are reflective of the 2024 crop prices with livestock at record highs and many other commodities having depressed markets (e.g. rice, walnuts, almonds). All the rice producers who responded to the survey reported water availability as among their top three challenges, a historically common challenge among rice producers.
Respondents identified various regulations when asked to indicate the most challenging regulation of their operation (Figure 3). Groundwater regulation was the most frequently cited regulation by producers (36%), followed closely by the Irrigated Lands Regulatory Program (ILRP) for water quality and labor regulations, each cited by 32% of respondents, and then surface water availability (20%). These results underscore the critical role water management and labor issues play in agricultural operations in the region. Responses categorized under ‘other’ included spray regulations and regulations related to wolves.

Fig 2: Percent of respondents by their top three challenges.

Fig 3: Percent of respondents by type of regulation.
Producer request to UCCE
Thirty-one respondents provided recommendations on how UCCE could better support the success of their operations. The highest percentage (42%) of respondents called for UCCE to advocate for reduced government regulations and increase efforts to educate legislators and the public about the regulatory burdens on producers. Additionally, respondents expressed a desire for UCCE to provide economic insights into their operations, with 29% requesting strategies for reducing operational costs and improving profitability. A few crop producers requested insights into potential new crop candidates that are more drought and disease resistant and can command higher prices. Additionally, a few crop producers requested increased efforts to develop local markets for their products. Overall, UCCE is urged to continue providing valuable information and support while advocating for measures that alleviate the pressures faced by agricultural businesses in the region. Below is a response from a producer who seeks education of the public on the regulatory burdens producers face:
“Education of federal and state government officials and the public on the burdens put on farmers. They must let us farm if we are to keep the world in food. Cut the regulations!”
Recommendations
There is a need for increased awareness about the economic impacts of regulations on farm operations, along with education for producers on regulatory compliance requirements and streamlined pathways for fulfilling those regulations. In addition, research and education of producers on market trends, financial management, profitability, risks, and management practices are needed to help them improve profitability and identify new market opportunities. Producers should also receive guidance on evaluating economic factors before investing in new agricultural enterprises. The economic advisor program will contribute to addressing these producer challenges and respond to their requests by conducting research and education initiatives. Information will be delivered to producers via their preferred means including workshops, newsletters, field visits, webinars, and fact sheets.
Special thank you to the farmers and ranchers who took the time to provide their perspectives by completing the survey, and to the Butte County Farm Bureau for their assistance with its distribution. Acknowledgment to the staff at USDA-Farm Service Agency and to all the Advisors who helped distribute the survey.
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