Winegrape Decline and Farmers & High Fuel Prices
From the Western Ag Network, I’m Bob Larson with your Agribusiness Update.
**Since 2023, declining wine consumption left California winegrape growers with an oversupply of grapes, forcing many to sell their fruit at a loss or watch it rot on the vines.
To limit losses, growers cut back on labor, and vineyard owners removed roughly one-quarter of the state’s winegrape acreage.
According to industry leaders, the sector shed several thousand vineyard jobs, with some workers getting laid off and others losing hours.
**High fuel prices are another financial headache for farmers through transportation surcharges that ultimately reduce the price producers receive for their crops.
Diesel prices over six dollars a gallon are already putting pressure on farm budgets, but higher fuel costs also raise expenses for railroads, ocean vessels, and other transportation providers.
Their three choices generally include: pass higher costs to customers, absorb them, or pass them back to suppliers through lower prices.
**Farmers are increasingly turning to artificial intelligence for help with day-to-day decisions as they manage rising costs, weather uncertainty, and tighter margins.
A new McKinsey Global Farmer Insights report finds 17% of farmers worldwide now use generative AI for farm-related tasks, 23% in North America.
But farmers aren't ready to replace human expertise. Just 6% cite AI tools as a trusted source for farm decisions, compared with 56% who rely on technical agronomists.
