Financial loss from converting farmland back
to natural habitat could be $11.5 million a year
Chico Enterprise Record - 10/1/02
By Heather Hacking, staff writer

WILLOWS - The Nature Conservancy unveiled a new study Monday trying to map out and predict the financial and social impacts of transforming farmland along the Sacramento River from Red Bluff to Colusa into natural habitat.

The study was introduced during an economic subcommittee meeting for the Sacramento River Conservation Area Forum.

The $134,000 study was funded through a CalFed grant. Committee members didn't have a chance to read the report but were given a briefing from Marlyce Myers, who works for the Nature Conservancy's Sacramento River Project.

The plan, over the next 30 years, is to create a limited meander zone on 30,000 acres of land.

This goal would require the purchase of another 9,390 acres of ag land over the four counties of Butte, Glenn, Colusa and Tehama. This land is now being farmed and would be converted to habitat.

The report concludes that the four counties could stand to lose a total of $11.5 million a year in agricultural production. Yet because ag income is so large in these counties, this represents only about 1 percent of the region's ag economy.

This broke down $2.5 million in lost income in Butte County, $1.2 million in Colusa, $3.8 million in Glenn County, and $4 million in Tehama County.

The study also addressed the increase in recreational opportunities as the river's edge is converted to habitat. However, Jones and Stokes, the firm that prepared the report, noted this is very difficult to quantify.

The company was fairly confident that increased numbers of fish would generate more money from fishing enthusiasts. But its difficult to predict how much more wildlife viewing and hunting would occur as more habitat is put into place. However, the company estimated the four counties could bring in millions from people who enjoy the outdoors.

When farmland is taken out of production, there are direct losses of jobs but also losses in other sectors that rely on farming, such as supply stores and miscellaneous businesses.

Jones and Stokes estimated that Butte County could lose up to 49 ag and ag-dependent jobs by 2030, for a loss of $1.66 million to the economy.

Colusa County could lose 19 jobs (loss of $586,000); Glenn County could lose 66 jobs and $2 million in personal income; and Tehama County could lose 96 jobs, at $3.19 million.

However, these losses could be offset by more jobs catering to recreational users of the land. The company estimated 4 recreation-related jobs could be gained in Butte County, 14 in Colusa, 3 in Glenn and 15 in Tehama.

The study also pointed out that there are benefits to society as a whole of knowing that habitat is protected. Plus, if the land helps to protect the endangered chinook salmon, society could save millions by not having to run the endangered species program. If the fish population recovered, commercial fishing of the fish could be restored, adding even more benefit to the economy.

The report is available online at www.sacrementoriverportal.org. Adobe Acrobat is needed to access the report.

Members of the SRCA Forum committee did not have a chance to read the report yet and are expected to submit comments to the Nature Conservancy by Oct. 30.

Myers said it was difficult estimating the economics of recreation because it is unknown what type of recreational infrastructure will be installed.

She said the goal of the whole process is to minimize the impacts and maximize the benefits of ag-to-habitat conversions. She said there are many funding programs in the state for improving recreational access, which could strengthen the economic impact outdoor activities can have in this area.

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