Score one for the California cotton industry.
It is widely known that California has among the highest prices for electricity in the United States. It does not much matter whether the electricity is for a commercial operation or residential areas; electrical costs in California are too high.
This is definitely what makes California so attractive to outside organizations and other states when trying to sell the business-friendly nature of their particular area.
I recall talking to dairy producer who once who said his cheese making operation was looking to buy a facility in Tulare County, Calif. because of the availability of milk there. Things were progressing nicely until he said they put a pencil to the utility costs and opted against the purchase. The company has since built a facility in another state and is doing quite well there.
According to an article published in The Cotton Chronicle, a newsletter of the California Cotton Ginners and Growers Association (CCGGA), the organization successfully sought a new rate tariff for cotton gins that receive their power from Southern California Edison. Under the new agricultural rate tariff, the typical cotton gin in Central California will save about 30 percent on its power bill.
“These new rates are a direct result of the CCGGA’s efforts to seek out competitive electricity rates for our members,” according to the newsletter.
Over the years I’ve spoken with representatives of different state consortiums geared at promoting agriculture in their regions. For instance, in fly-over country from the Panhandle region of Texas to the Dakotas, organizations are heavily invested in attracting agricultural operations, particularly dairies.
The World Ag Expo (WAE) in Tulare, Calif., seems to be a popular place for these groups to gather and promote their regions. Word is even various governors have visited the WAE to personally promote their states. It makes one wonder how California would be promoted in other states if our governor went there. But I digress.
California in general could benefit from the efforts of groups like the CCGGA to reduce the cost of living and cost of doing business. After all, the growing region and ability to capture and store ample amounts of water already exists here.
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