The AgNet News Hour continued its coverage of California’s pivotal governor race, while also highlighting mounting cost pressures facing farmers—from fertilizer and fuel to packaging—at a critical time for the state’s agricultural industry.
With the June primary approaching, the conversation centered on how leadership decisions could shape the future of agriculture in California. Hosts emphasized that the stakes are high, with policy direction impacting everything from water access to input costs and overall farm viability.
At the same time, growers are facing increasing financial strain. Rising fertilizer prices are a growing concern, driven in part by global supply disruptions and shipping challenges. “We’re going to continue to see fertilizer prices rise… it’s impacting pricing and our ag industry for sure,” Josh McGill explained.
Fuel prices remain another major pressure point. California continues to see significantly higher diesel and gasoline costs compared to other states, adding to production and transportation expenses for farmers.
“We’ve had the same problem for 10 to 15 years… we’re always about $2 a gallon higher than anyone else,” Nick Papagni said, pointing to regulatory and tax structures as key drivers.
In addition, the cost of plastic packaging—used widely across produce sectors—is climbing. Materials like clamshell containers for fruits are becoming more expensive, further squeezing margins for growers already dealing with tight returns.
“It could get a lot worse before it gets better,” McGill said, noting the connection between global oil markets and plastic production.
Beyond input costs, the discussion also touched on broader concerns about government spending and regulatory complexity in California. Both hosts pointed to large-scale projects and programs that have faced delays or cost overruns, raising questions about efficiency and accountability.
“It ends up taking so long… the money gets eaten up in approval processes and never makes construction,” McGill said.
The episode also featured interviews with gubernatorial candidates Chad Bianco and Steve Hilton, both of whom emphasized reducing regulations and increasing support for agriculture.
“We know how it can be done… it’s not rocket science,” Bianco said. “You identify what’s broken and you fix it.”
Hilton echoed that sentiment, calling for a major shift in direction. “We need a complete change… they’ve made it impossible to run your business,” he said, referencing regulations, energy costs, and water challenges.
Both candidates stressed the importance of involving farmers directly in decision-making and improving coordination between state and federal leadership.
As the race continues, the conversation made clear that California agriculture sits at a crossroads, balancing rising costs, regulatory pressures, and the need for leadership that understands the realities of farming.
Listen to the full interview below or on your favorite podcast app.
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