On Tuesday, May 11, 2021 at 11:42:21 AM UTC-7, DirtBag wrote:
> How did you make out with last years crop?
> Was the Co-Op shipping overseas or were you able to get them sold closer.
Last year was good. We made a small profit. Oranges are considered healthy and we did well domestically. Some got to China and Korea but we are competing with Chile, Brazil, Egypt and China, itself. Port congestion in Long Beach and LA caused problems. Some ships returned empty to keep schedules. Sunkist even leased its own contrainer ship to get its citrus out. Too many navels in the valley. Many are now going to lemons. Our packing house may spend $5M to put in a dedicated lemon packing line. Water is an issue. We are watering all with wells. We can use Friant-Kern canal water but due to drought it is expensive and limited. You are penalized if you use more than your allotment. This water comes from the Sac delta. Lemons and blood oranges did bad last year because of the restaurant and bar closures. Also Sunkist did a bad job of marketing lemons. Out of fear, the lemons were dumped on the market and all got a very low price. This year sunkist will not make that mistake again. So tough to make money, packing or growing. Everything must be perfect. Got some nice packing house company losses on my tax return. Also unused carryover losses from previous years. Paid no tax last year and none this year. That situation could go on for several years. As a "farmer" with an LLC for the orange ranch, I do need to pay into social security. You cannot counter that with losses. I would sell the ranch if given the right price.