Fewer Kings County people living in poverty

Kings County's poverty rate last year took a sharp nose dive from 21.6 percent to 15.1 percent, one of the steepest drops in decades, according to 2007 census data released this week. A surge in farmwork hiring has pushed down what was once a stubbornly sky-high poverty rate, according to one expert. Another says Kings County's five largest employers -- retail, manufacturing, government, agriculture and health care -- have ballooned, helping the poverty rate tumble to a historic low this decade.

Renowned for its high poverty and low-wage workforce, Kings County has faced a five-year boom that has surprisingly lifted thousands of people out of poverty. The sizzling economy has also helped the county's median household income leap to an all-time high of $46,756, just a few thousand dollars less than the national figure.

The plunging poverty rate is in stark contrast to the slumping economy statewide, powered by the mortgage meltdown and housing crisis that has battered the Central Valley particularly hard. Spiking food and gas prices have hampered domestic consumption, which is roughly two-thirds of the national economy.

But some experts attribute rising food prices and a weakening dollar to stronger exports that have helped the agriculture sector reach record profits.

Indeed, the value of Kings County's crops hit a record high last year, at $1.76 billion, a whopping 36.7 percent increase from 2006. The dairy industry, which accounts for nearly half of the county's agricultural output, had earnings last year that mushroomed by nearly 69 percent from 2006. The earnings from vegetables alone last year spiked by 61 percent from 2006. Grocery shoppers' pinched pockets have been a boon for the agricultural sector.

Kings County currently exports 17 commodities, including cherries, nuts, cotton and wheat, to some 45 countries, led by the surging demands from Japan, Taiwan and the United Kingdom.

"Export-oriented agriculture is doing better, thanks to a weakening dollar and rising food prices," said Alex Whalley, an assistant professor of economics at UC Merced. "American exports have become more competitive. It's really good news."

As a result, the agricultural sector has hired droves of farmworkers and increased their working hours, helping to hammer down Kings County's poverty rate.

"There's an increase in labor demand with a weak dollar and increase in food prices," Whalley said.

Still, not everyone is convinced that Kings County's economy is vibrant. Some say Kings County lacks jobs.

"The economy is really tough now," said Dan Chin, vice-mayor of Hanford. Hanford's new IHOP was inundated with over 1,000 applicants vying for 45 open positions, he said. "The competition for jobs is at an all-time high."

But John Lehn, president of Kings County Economic Development Corporation, is more optimistic. He says agriculture and government, Kings County's two biggest employers, have boomed in the past five years, helping to inject more jobs into the local economy.

"As the worldwide demand for food continues, there's going to be an increased demand for processing and production in agriculture," Lehn said.

Kings County's red-hot manufacturing, retail and health care sectors have also dug many out of poverty, he added, particularly those who work entry-level jobs.

"The local economy has created more jobs, allowing people to move out of poverty, even for those with minimal skills," he said.

The reporter can be reached at 583-2423.