Lemoore shows they way on gas prices | John Lindt

Can anybody do something about these gas prices? Let the gas merchants in Lemoore run the show. Lemoore’s Fastrip is the cheapest station to buy gasoline in all of California at $5.21 gallon as of July 6. Gas prices across the U.S. have dropped in the past week.

As of July 6, crude prices are down to $98 a barrel compared to a high of $120 a barrel just a few weeks ago. Chevron’s posted crude oil price in California has dropped into the $90s this week for the first time since February.

According to GasBuddy,  the latest Energy Information Administration data says gas demand currently sits at 8.93 million b/d, which is lower than last year’s rate of 9.11 million b/d at the end of June. On the other hand, total domestic gasoline stocks increased by 2.6 million bbl to 221.6 million bbl. These supply/demand dynamics, along with decreasing oil prices, have pushed pump prices lower. If these trends continue, drivers will likely continue to see lower prices at the pump.

Now there is some relief from Sacramento.

Diesel fuelers will catch a break from the state’s sales tax as of October. Suspension of the state diesel tax will save about 23 cents a gallon. As for gasoline users, 23 million Californians will benefit from Sacramento direct payments of up to $1,050. The tax refunds would be distributed starting in October.

Friant will get bump in allocation

Bureau of Reclamation spokesperson Mary Lee Knecht confirms reports the agency will increase the allocation for Friant contractors above 15% later this month.

“Delta supplies are expected to improve this summer due to late season precipitation throughout much of Northern California; as a result, Reclamation is considering an update to allocations for the Friant Division in mid-July.”

Buttonwillow Warehouse continues growth

The Kings EDC says Buttonwillow Warehouse Co in Corcoran continues to expand. The family-owned business has more than 50 years of experience serving California growers. BWC arrived in Corcoran in the year 2000 with a purchase of a grain warehouse in the Corcoran Industrial Park along the BNSF Railway. Since that time, they have purchased the CDR and Homac Buildings, and purchased the Mercury/Seward Building in the past year adding over 150,000 s.f. to their Corcoran holdings and increasing their employment significantly.

Kings EDC president Lance Lippincott says Kings Country is a finalist in plans to locate a large anaerobic digester project in the Valley and the company is scouting for locations here now. Statewide, studies indicate that California could produce almost 300 billion cubic feet of renewable natural gas per year from organic waste, enough to replace 75 percent of all the diesel fuel used by motor vehicles in California.

Following the $97.5 billion state budget surplus, California lawmakers last week agreed to spend $4.2 billion in bond funds needed to finish the ambitious high-speed rail project’s 171-mile Central Valley portion which is expected to connect Bakersfield with Merced through Hanford by 2030, according to the agency’s current estimates.

State budget includes $40M for Allensworth

The recently passed California state budget includes millions in new funding for the historical Tulare County community of Allensworth, which was founded by Black settlers in 1908. Based on the idea that African Americans could own property, learn, thrive and live the American Dream, it was named for Lt. Colonel Allen Allensworth.

The funds include:

Colonel Allensworth State Park: Approves $28 million to build a visitor center and requires the Department of Parks and Recreation to conduct community engagement efforts to consult with stakeholders in the planning and design of the visitors center and related improvements.

Allensworth: Provides $12 million total to create the Allensworth Civic & Entrepreneurship Center ($1.6 million) and to expand TAC Teaching & Innovation Farm ($10 million). Authorizes the Department of Parks and Recreation to give “free days” access to the Colonel Allensworth State Park over the next three years.

Crop watch

According to Fresno County Farm Bureau CEO, Ryan Jacobsen, the tomato crop is less than expected because of the drought, at 6.9% below forecasts, according to Central Valley News.

The prospect of harvesting 2.8 billion pounds of almonds this year — just shy of the 2.9 billion pounds in 2021 and the record 3.1 billion pounds in 2020 — has industry leaders both excited and worried. That’s because about 1.3 billion pounds of unsold almonds are still sitting in piles at processing and packing facilities. The problem comes at a time when inflation and a historic drought are pushing the costs of production and water supplies to an all-time high, and the price of almonds has fallen to an all-time low of about $2 per pound. It’s a sharp reversal for the industry after four decades of relentless expansion across 1.6 million acres in California’s agricultural Central Valley, according to the LA Times.

Valley watermelon farmers are anticipating a booming business this summer. Watermelon prices for the San Joaquin Valley crop are running ahead of last year’s pace, according to data from the U.S. Department of Agriculture Agricultural Marketing Service. As of June 30, a 35-count carton of valley seedless watermelons was selling for $150 to $154, while the 45-count carton went for $158 to $161. That’s up $119 to $126 from June 2021.

Seedless miniatures — “personal size” — were going for $12.95 to $13.95 for cartons of six- to nine-count melons at the end of June 2022, according to USDA. Last year, the price was $8.95 to $10.95 per carton of six- to eight-count melons.

Growers say oversupply was a factor in last year’s market, noting that 2021 was a lower-price, lower-volume year, according to ag alert.

Kaweah Health budget projects $11.2 million loss

Like other hospitals across California, the Kaweah Delta Health Care District (Kaweah Health) Board of Directors has approved their 2023 operating budget with an operating loss for the coming fiscal year – the first time in Kaweah Health’s history. The new budget, which becomes effective July 1, projects an operating loss of $11.2 million for the fiscal year and it comes on the heels of a projected $17.9 million, COVID-driven operating loss for the fiscal year that ended June 30, 2022 ($35.8 million operating loss less $17.9 million in provider relief funds received from the CARES Act and American Rescue Plan Act). Despite the financial challenges, the Board and CEO say they are holding firm on providing annual employee pay increases and are unwilling to reduce employee benefits or to limit access to care.

“We are a compassionate and grateful organization. We want to continue to be a great place to work and we want to continue to attract and retain the very best employees to care for our community. The South Valley is already underserved medically, and we decided against closing services and further reducing access to care, even if some of those services lose money,” said Gary Herbst, Kaweah Health’s Chief Executive Officer. “While we have cash reserves to cover a bad year or two, it reduces our ability to invest in facilities and equipment, as well as our ability to borrow money. These losses are not sustainable in the long term.”

Kaweah Health is not alone. More than 51 percent of California hospitals are losing money. According to a recent study conducted by national consulting firm Kaufman Hall, California hospitals lost more than $20 billion in 2020 and 2021 due to COVID. These losses were only partially offset by $8 billion in Federal provider relief funds.

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