Farm Bureau of California President Bob Crouch will give a $1 million bonus to more than 100 farmers as part of an agreement with state lawmakers, the agency announced on Tuesday.
The deal is part of a larger $1.8 billion farm subsidy package passed by the California legislature last year.
Crouch said in a statement the money will go to more workers and farmers who work in fields where the state requires farmworkers to have health insurance.
He also announced the state will pay for two new crop insurance programs.
Cattle ranchers in Oregon will get an additional $500,000 in subsidies in the first year of the deal, and California’s agricultural lobby group will provide $1 billion in farm subsidies for next year, Crouch said.
The move is part, however, of a broader effort to help farmers survive the drought that has hit California agriculture and helped to fuel a state economic recovery.
Crouch has been pushing to raise farm prices for years, especially after a devastating drought forced California farmers to cut prices on everything from soybeans to wheat.
The drought has also led to a surge in imports from the United States, especially from Mexico.
Crop insurance is a popular form of agricultural insurance that covers crop damage, crop losses, livestock and livestock operations.
California’s Farm Bureau has already paid out $1 trillion in farm insurance since it was created in 2012, and Crouch announced the incentives would be worth $2.5 billion in 2018.