Friday, Mar 25 2011 9:34AM

Rising water prices and an increase in foreign competition has made it difficult for many farmers in rural areas of San Diego and Riverside Counties to break even on expenses, reported the North County Times.

Recent droughts and population increases have reduced the supply of water and increased prices, according to the newspaper, creating problems for local avocado farmers who require a generous amount of water to raise their crops.

While the industry used to thrive, the paper said recently it has been stunted by crop diseases, a deep freeze, and in 2008, a state-mandated 30 percent cut in its water supply. Moreover, population increases in Nevada and Arizona have created more competition for water from the Colorado River, causing water prices in San Diego County to jump 80 percent between 2005 and 2010.

Although the California town of Fallbrook used to be known as the Avocado Capital of the World, rising prices have caused more people to purchase avocados from suppliers in Mexico, Chile and Peru, reported the source, affecting the economic community development of the area.

"Should I walk away? I don't know. I've been facing that, and worrying the last couple years," Joe Ponder, a Fallbrook avocado farmer, told the paper.

President Barack Obama's proposed 2012 budget also includes funding cuts that would directly affect many California farmers and their workers. One provision would cut numerous programs that support the state's organic and sustainable agriculture industry, reported the Santa Cruz Sentinel.