Californians will pay more to own and drive vehicles starting November 1, 2017. With the excise tax on gas going up $.12 on gasoline, $.20 diesel and an extra 4% sales tax on diesel. Electric vehicles will pay a $100 annual fee, starting in 2020. Then January 1, 2018 the new Transportation Improvement fee will be $25 to $175 per vehicle. The $52.4 billions over ten years will be used for road maintenance.
There will be an additional benefit for road maintenance of fewer vehicles on the road and less miles being driven. Then there is the fewer miles being driven because of people leaving California and fewer people coming to California.
What is the ripple affect for California Agriculture? Farmers are high mileage drivers just by the nature of the business. Then there is the cost to those who work on farms. Most of them drive more and farther to get to work. They will need to be compensated for the additional cost or that maybe the tipping point. To cause them to work else where or be in a position to need help.
I am bias but the reality is no one produces food on the scale that it is produced by California Farmers. Then there is the addition cost to all those who service California Ag. We might also want to consider the transportation cost of farm products, including transporting the finished product to the grocery store and restaurant.
For those in the rest of the nation don’t think that this won’t affect you. California Farmers help feed you. What will the extra cost of a cantaloupe shipped from Mendota or a head of lettuce shipped from Salinas be? I could go on.
Could this be part of the tipping point for the cost of food? Don’t count the California Farmer out just yet. They are an innovative and a creative bunch. I believe they will figure out ways to do it better. My money is on the California Farmer.
They have been on the verge of extinction all my life. But they always seem to keep farming and producing the safest and best food in the world. They are the most optimistic pessimist, that I know.
Why are they such pessimist? They have to plan for every problem and every potential problem known. Plus the ones that don’t yet exist. This is why they are such a optimistic bunch. They know they will figure it out and survive to farm another crop.