NEWHALL LAND FARMS HURT DROUGHT, LOW PRICES TAKING TOLL.

Byline: Kathleen Sweeney Staff Writer

VALENCIA - Falling crop prices and two years of drought have hurt The Newhall Land and Farming Company's statewide agricultural operation, causing fields to lie fallow after crops died from lack of rain.

The company's agricultural income, which includes revenue from crops, oil and gas and filming, decreased by 55 percent during the first six months of the year, according to Newhall Land's second quarter results released this week.

``The issue of idle farmland is a temporary issue,'' said Marlee Lauffer, a company spokeswoman. ``Because of low commodity prices or dry land crop loss, the land fallowed, but the next year it most likely will become productive again. It's a temporary situation.''

Farming has been a large part of Newhall Land since the company was formed in 1883. It then owned 143,000 acres throughout California and its primary interest was in raising cattle and sheep.

The first few years were difficult. Late rain and fog ruined the hay and grain crop on Rancho San Francisco land, causing the company to lose $14,500. Greater losses followed and forced Newhall Land to sell acreage for development.

Today, about 15,000 acres are left for farming, with most of that land on the Columbia Ranch in Madera County. Barley, alfalfa and row crop fields in the local area remained idle this year because of the lack of rain and low commodity prices.

The company plans to try again next year, Lauffer said.

In Los Angeles and Ventura counties, Newhall Land uses land for cattle grazing and citrus orchards, and it also leases out some land for crops such as alfalfa, tomatoes and cilantro and for oil and gas activities.

Barley is usually grown on a portion of the Newhall Ranch site, planned for development, but that was lost this year due to a lack of rain. With less than five inches of rain, this has been the driest year in Los Angeles history

``Farming is a very challenging business,'' she said. ``It's not the same year to year. It's very challenging up and down the state, particularly pertaining to citrus.''

The company is also feeling pinched by the most dismal two years in the citrus market in Newhall Land's history. Acres of oranges have been uprooted in the area as production costs rise, fruit prices decrease and global competition grows.

While farming is no longer Newhall Land's primary focus, the company plans to continue to harvest crops, especially at its Columbia Ranch.

``Obviously, our primary focus is on community planning,'' Lauffer said. ``We expect to continue to farm the Los Angeles County portion until we have alternative land use that makes sense, just like they did in Valencia.''

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Photo:

(color -- ran in SAC edition only) Sprinklers are used to water crops along Henry Mayo Newhall Drive. The drought has made it a tough year for agriculture.

David R. Crane/Staff Photographer