(October 5, 2007) Governor Arnold Schwarzenegger has signed two California Chamber of Commerce-supported bills that will provide relief for farmers affected by the freeze that hit the state in January.

• AB 297 (Maze; R-Visalia) provides a limited property tax exemption for fruit-and nut-bearing trees that were severely damaged by the January freezes.
• SB 114 (Florez; D-Shafter) provides income and property tax relief for those family farmers, businesses, and local governments that suffered losses as a result of the January freeze.

SB 114 applies to the 18 counties for which Governor Schwarzenegger proclaimed a state of emergency: El Dorado, Fresno, Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara, Stanislaus, Tulare, Ventura, and Yuba.

California’s agriculture industry is a crucial and significant contributor to this state’s economy, generating about $32 billion in direct farm sales in 2004, according to the latest figures available from the California Department of Food and Agriculture. Food crop sales accounted for $19.87 billion of this amount. California’s agricultural exports were $8.2 billion in 2005 --14 percent of all U.S. agricultural exports.

January’s freeze is reported to have caused $1.32 billion in losses, with thousands of workers losing their jobs. Fruit and nut tree crops bore over 70% of these losses - around $947.4 million. Providing relief through temporary changes in the tax structure will help farmers and ranchers and their employees and communities to survive and recover from these losses.

Staff Contact: Kyla Christoffersen