Western Growers Responds to Gov. Brown’s $1B Emergency Drought Legislation Package

March 19th, 2015

Western Growers’ President and CEO Tom Nassif released a statement today following Governor Jerry Brown’s announcement that he will expedite the use of $1 billion in funding to help local communities cope with the effects of the ongoing drought. The funding was made available from a legislatively-referred water bond (Proposition 1) passed by voters this past November.  The governor was joined by Senate President pro Tempore Kevin de León, Assembly Speaker Toni Atkins, and Republican Leaders Senator Bob Huff and Assemblymember Kristin Olsen. 

Nassif statement:

“Today the Governor said that if the drought continues, ‘there will be restrictions’ on water use by all Californians.  This may be interpreted by some to mean that so far, there haven’t been any restrictions placed on the state’s farmers.  In fact, California farmers and Californians living in some rural areas are the only people in the state who have had their water cut off.  Last year, the State Water Project only delivered five percent of the requested supply.  The federal Central Valley Project delivered no water at all to the San Joaquin Valley.  This year, the state project will deliver only 20 percent and the federal project is projecting another year of zero water delivered to the San Joaquin Valley.

Farmers bear the brunt of these restrictions.  Last year, 500,000 acres of highly productive farmland was left unplanted, and that number is expected to grow by as much as 40 percent this year.  For the farm workers and others whose economic security is tied to California’s farms, water supply restrictions mean lost jobs and family stress.  Last year, 17,000 farm jobs were lost due to water cuts and this year the number will be higher. 

We appreciate the intentions behind the emergency legislation announced today and we are grateful for the aid it might provide to some of the tens of thousands in our communities who are suffering, but real relief can only come from an end to this drought and the regulatory policies that have exacerbated it.   We continue to watch helplessly as scarce water that could be stored south of the Delta is instead sent to the sea in the name of species protection, notwithstanding the fact that through both wet and dry periods this has failed to halt the decline of the very same species.  

We urge members of both parties in Congress to recommit to the hard work of crafting legislation that would shield farmers, farm workers and cities in the San Joaquin Valley from this regulatory overreach without altering the Endangered Species Act.  It can be done, and nearly was done last year.  The good work of Senator Feinstein, Majority Leader McCarthy, and Representatives Valadao, Nunes, Costa and Calvert must not be abandoned.  We urge these leaders to restart their work quickly and seek rapid action on the legislation that was negotiated last year.”

Comment Period on Leafy Green Metrics Opens Tomorrow

March 19th, 2015

Western Growers (WG) continues to support the ongoing improvement, enhancement and strengthening of food safety in the production of leafy greens. WG has established a yearly review process to review and update the food safety guidance documents (LGMA metrics) utilized by the Leafy Green Marketing Agreements (LGMAs) in California and Arizona. This year’s review process starts tomorrow.

Starting March 20, 2015, WG will be gathering proposed changes to seven of the 15 issues included in the LGMA metrics. Proposed changes received during this comment period and vetted through this process will be presented to the Arizona and California LGMAs during this summer, likely in July.

Interested parties can participate in this process, but should keep in mind that proposed changes should be:

  • Comprehensive and auditable by government auditors (if they impact the audit checklist);
  • Accompanied by a statement on how proposed changes will advance or enhance food safety, and;
  • Clear and have a straightforward scientific basis or rationale including citations of relevant research if available

Proposed changes may be tracked in the Arizona and California draft documents and can be submitted by email to [email protected] or sent by fax to (949)809-6251.  

Below is a list of the current issues under review:

  • Purpose (Issue 1)
  • Environmental Assessments (Issue 3)
  • Water (Issue 4)
  • Water Usage to Prevent Product Dehydration (Issue 5)
  • Flooding (Issue 12)
  • Production Locations – Climatic Conditions and Environments (Issue 13)
  • Production Locations – Encroachment by Animals and Urban Settings (Issue 14)

For more details and information, join the WG LGMA metrics distribution list by contacting Sonia Salas or by accessing the leafy green community website.

AMPA Program Begins March 26

March 19th, 2015

Human Resources professionals working for agriculture companies face challenges unique to the industry ranging from hiring compliance to wage and hour issues. To assist those employees working in these ever-changing areas and to help them grow their HR careers, the Agricultural Personnel Management Association (APMA) is hosting a Human Resource Professional in Agriculture (HRPA) Certificate Program starting March 26.

APMA has built the program with working adults in mind. Eight core courses are required to earn the HRPA designation, along with one elective course, completed in any order. Attendees can take courses of interest or use the full curriculum to work toward their certification.

Classes in Santa Maria start March 26.  Western Growers Senior Vice President of Human Resources Karen Timmins, SPHR, will lead a course on managing employee compensation May 18.

AFF — Health Benefits from Produce “Absolutely Indisputable”

March 19th, 2015

This week, Consumer Reports released a “Buy/Don’t Buy” report on fruits and vegetables intended to provide consumers with information on how to make the “best choices” for their health and the environment.  The “Shopper’s Guide” lists dozens of produce items and attaches a pesticide risk level with each.  It also stipulates whether the item should be avoided based on its country of origin or how it was grown, differentiating between conventional and organic methods. 

The Alliance for Food and Farming (AFF) issued a strong statement refuting the “guide” saying, “The benefits of consuming plenty of fruits and vegetables is absolutely indisputable. Consumers should eat both organic and conventionally grown produce without worrying about minute levels of pesticide residues.”  AFF released a similar statement last month following the release of the Dirty Dozen list by the Environmental Working Group (EWG).  

As of the publication of today’s Spotlight, media coverage of the release of the information has been light with only one major news program featuring a story.             

Webinar Tomorrow – How to Make Your Data Work for You

March 19th, 2015

In today’s world – companies are scrambling to collect information to meet buyer specifications, satisfy regulatory demands and develop records in case something goes wrong.  This is often a massive paper chase that seldom allows key staff the time to put the information to beneficial use in improving company performance, efficiency or food safety programs.

Western Growers has partnered with iFoods to offer the TOOLBOX, a mobile, paperless, scalable, cloud-computing data management system. Data is captured in the field or wherever you may find it.  Once captured, you can access the data in the office, in the field, or through your phone.  You will spend less time completing and reviewing reports for compliance and can spend more time analyzing data and trends and using that information for the benefit of your operation.

The iFoods TOOLBOX offers data security, integration, warehousing and analytics through a private company dashboard that can be customized to assist you in achieving your management objectives.  The tools that are currently available will assist in managing environmental assessments, microbial testing and packing/processing facility verification.

Want to learn more about how to harness data to improve performance, reduce costs and demonstrate how your operation keeps food safe and protects the environment?  Join us TOMORROW for our webinar!

Managing your data – your business depends on it… regulators require it… the market place demands it!

Webinar Details

Your Data, Working for You
Friday, March 20, 2015
9:00 – 10:00am PDT

REGISTER NOW

For more information, please contact Stephanie Kettering at 949-885-2364.

WG Webinar — The Nexus of Nitrogen and Water Efficiency

March 24th, 2015

An op-ed last week in the LA Times from Dr. Jay Famiglietti of NASA’s Jet Propulsion Laboratory in Pasadena stated that California’s drought is so severe that the state’s reservoirs will run out of water in one year.  Enhancing water efficiency is more critical than ever.

WG’s Science & Technology Department has previously held webinars that highlighted regulatory issues related to water quality and safety, as well as strategies to maximize water efficiency.  Building on those topics, Western Growers is offering a webinar to discuss the current tools/technologies utilized in coastal and desert areas to assist with water efficiency, as well as some of the challenges growers face in these areas.  Experts will focus on the best management practices to handle nitrogen and how those techniques relate to water efficiency.

We hope you will REGISTER NOW to join us for this important webinar!

Webinar Details

Tuesday, March 31st

11:30 a.m.-12:30 p.m.

REGISTER NOW

Expert Speakers

Dr. Timothy Hartz, Extension Specialist/Agronomist – UC Davis

Dr. Charles Sanchez, Research Scientist, Soil, Water & Environmental Science – Maricopa Agricultural Center, University of Arizona

Arizona Environmental Services Division Schedules Listening Sessions

March 24th, 2015

Governor Ducey signed Executive Order 2015-01 on January 5th.  This order, to promote job creation and more customer-oriented agencies, requires all state agencies to provide an evaluation of their rules with recommendations for amending or repealing those that inhibit economic development, are burdensome, antiquated, or contradictory.

To comply with this order, the Environmental Services Division of the Arizona Department of Agriculture will host two listening sessions to gather input on:
•      Suggestions on current division regulations impacting stakeholder’s businesses;
•      Issues with current service delivery and suggestions for improvements; and
•      Regulatory priorities for the Environmental Services Division

Among the areas regulated by the division that will be discussed are: Pesticide Compliance and Worker Safety; Pesticide Registration; Seed; Feed and Fertilizer. 

The Listensing Sessions will be held on:

April 7, 2015 at the Maricopa Ag Center

April 15, 2015 at Booth Machinery – Yuma

Both events will begin at 9:30 a.m. and run until the last speaker is finished.

Interim ADA Director Jack Peterson said there is no registration necessary.  Interested parties can just show up at either session and express their viewpoints.  He also welcomed emails on the subject matter to: [email protected]

WG Board Members Conclude Sacramento Meeting

March 26th, 2015

The Western Growers Board of Directors wrapped up its Sacramento board meeting today with Chairman Vic Smith leading board members through a comprehensive discussion of issues affecting the industry, including water, labor and workplace rules, food safety, trade, and transportation issues.

Governor Jerry Brown visited with Executive Committee members on Monday to begin this week's meetings and members of his administration addressed board members on Tuesday.  Secretary Matthew Rodriguez of the California Environmental Protection Agency, Secretary John Laird of the California Natural Resources Agency, Cal/EPA Undersecretary Gordon Burns and William B. Gould, Chair of the California Agricultural Labor Relations Board (ALRB) engaged the board Tuesday afternoon, as was reported in Spotlight earlier this week. On Wednesday, Secretary Karen Ross of the California Department of Food and Agriculture was the lunchtime speaker and took numerous questions from board members.

Additionally, several legislators, including members of the newly-established San Joaquin Valley Caucus and the Latino Caucus, took time during the week to address members or attend board events.

Asian Citrus Psyllid Quarantine Expanded

March 26th, 2015

California has expanded the quarantine zone in Madera County to protect against the spread of the Asian citrus psyllid after an insect was found east of Madera, in the Bonadelle Ranchos-Madera Ranchos area.

The quarantine expansion adds 79 square miles, bringing the total quarantine area in Madera County to 179 square miles. The quarantine prohibits the movement of citrus and curry tree nursery stock out of the area. It also requires that all citrus fruit be cleaned of leaves and stems prior to moving out of the quarantine.  An exception may be made for nursery stock and budwood grown in USDA-approved structures that are designed to keep the psyllid and other insects out.

The psyllid is considered a serious citrus pest because of its ability to carry the tree-killing disease huanglongbing, also known as citrus greening. There is no cure for the disease. Only one case of the disease has been found in California, a backyard citrus tree in Hacienda Heights, Los Angeles County.

Legislature Adopts Water Bills

March 26th, 2015

The California Legislature, approved a $1 billion financing plan this week to speed up spending on water projects and allocated about $75 million in immediate aid for drought-stricken regions.

The legislation, which consists of two bills, reportedly accelerates water infrastructure spending, and establishes a grant system for funding water-recycling projects and provides funds for safe drinking water in small and poor cities.

AB 91 contains the financing plan, which passed with bi-partisan support in both houses. However, AB 92 contains long standing policy changes that created much concern from Republicans and some Democrats.  These two bills were fast-tracked through the legislative process this week just before legislators recessed for spring break.

Nearly two-thirds of the money, or $660 million, is slated for flood protection instead of the ongoing drought, now in its fourth year.  Gov. Brown and others claim that using money to prevent floods is related to the drought because climate change increases the likelihood of sudden storms overtaking communities, even in dry periods.  The Legislature faces a summer 2016 deadline to spend the flood-protection money that comes from a $4 billion bond measure approved by voters a decade ago.

The flood money allocated in this legislation did not specify where it would be spent but instead establishes a funding process that allows communities to apply for the funds.

The legislation is now headed to Governor Brown for his signature.

May 1 Effective Date Prompts Cal-OSHA to Issue Guidance on New Heat Standard

March 31st, 2015

As we previously reported in Spotlight, the California Occupational Safety & Health Standards Board approved amendments to the state’s Heat Illness Prevention (HIP) Regulations (Cal. Code of Regs. tit. 8, § 3395).  The revisions are expected to go into effect on May 1, 2015.

In response to questions from stakeholders about how the new requirements will be implemented, Cal/OSHA has posted guidance on the new requirements on their heat illness prevention page. A summary of the changes is available in English and Spanish.

Arizona Department of Ag to Hold Stakeholder Listening Sessions in April

March 31st, 2015

On January 5, 2015 Governor Doug Ducey signed Executive Order 2015-01.  The purpose of the order is to promote job creation and more customer-oriented agencies, and requires all state agencies to provide an evaluation of their rules with recommendations for amending or repealing those that inhibit economic development, are burdensome, antiquated, or contradictory.

As a result, two divisions of the Arizona Department of Agriculture (ADA) will be hosting separate listening sessions for their particular stakeholders.  ADA’s Plant Services Division and its Environmental Services Division will each host two separate listening sessions in early April to gather input on:

·        Current division regulations impacting stakeholder’s businesses

·        Current service delivery and potential process improvements

·        Regulatory direction/priorities for each division

The Plant Services Listening Sessions will occur on Tuesday, April 7, 2015 in Phoenix and its Yuma session will take place on Thursday, April 9, 2015.  Each session will focus on different stakeholder groups. The notice for each session is accessible through the links below.

Phoenix Listening Session — Tuesday, April 7, 2015

Yuma Listening Session — Thursday, April 9, 2015

The Environmental Services Listening Sessions will include discussion on the following topics: Pesticide Compliance and Worker Safety; Pesticide Registration; Seed; Feed and Fertilizer.  Its Listening Sessions will occur on Tuesday, April 7, 2015, at the Maricopa Ag Center and on Wednesday, April 15, 2015, at Booth Machinery in Yuma.  The notice for each session is accessible through the links below.

April 7, 2015, at the Maricopa Ag Center

April 15, 2015, at Booth Machinery – Yuma

Both events will begin at 9:30 a.m. and run until the last speaker is finished.

Interim ADA Director Jack Peterson said there is no registration necessary.  Interested parties can just show up at either session and express their viewpoints.  He also welcomed emails on the subject matter to: [email protected]

Submit LGMA Metrics Comments by April 24 Deadline

March 31st, 2015

Western Growers (WG) continues to support the ongoing improvement, enhancement and strengthening of food safety in the production of leafy greens. WG has established a yearly amendment process to review and update the food safety guidance documents (LGMA metrics) utilized by the Leafy Green Marketing Agreements (LGMAs) in California and Arizona. This year’s review process started on March 20, 2015. The deadline for receiving comments is April 24.

WG will be gathering proposed changes to seven of the 15 issues included in the LGMA metrics. Proposed changes received during this comment period and vetted through this process will be presented to the Arizona and California LGMAs during this summer, likely in July.

Interested parties can participate in this process, but should keep in mind that proposed changes should be:

  • Comprehensive and auditable by government auditors (if they impact the audit checklist);
  • Accompanied by a statement on how proposed changes will advance or enhance food safety, and;
  • Clear and have a straightforward scientific basis or rationale including citations of relevant research if available

Proposed changes may be tracked in the Arizona and California draft documents and can be submitted by email to [email protected] or sent by fax to (949)809-6251.  

Below is a list of the current issues under review:

  • Purpose (Issue 1)
  • Environmental Assessments (Issue 3)
  • Water (Issue 4)
  • Water Usage to Prevent Product Dehydration (Issue 5)
  • Flooding (Issue 12)
  • Production Locations – Climatic Conditions and Environments (Issue 13)
  • Production Locations – Encroachment by Animals and Urban Settings (Issue 14)

For more details and information, join the WG LGMA metrics distribution list by contacting Sonia Salas or by accessing the leafy green community website.

Statement from Western Growers’ President and CEO Tom Nassif on Governor Jerry Brown’s $1 Billion Emergency Drought Legislative Package

March 19th, 2015

FOR IMMEDIATE RELEASE

For interviews, contact:        
Wendy Fink-Weber
Senior Director of Communications
(949) 885-2256
or
Jeff Janas
Communications Manager
(949) 885-2318

“Today the Governor said that if the drought continues, ‘there will be restrictions’ on water use by all Californians.  This may be interpreted by some to mean that so far, there haven’t been any restrictions placed on the state’s farmers.  In fact, California farmers and Californians living in some rural areas are the only people in the state who have had their water cut off.  Last year, the State Water Project only delivered 5 percent of the requested supply.  The federal Central Valley Project delivered no water at all to the San Joaquin Valley.  This year, the state project will deliver only 20 percent and the federal project is projecting another year of zero water delivered to the San Joaquin Valley.

Farmers bear the brunt of these restrictions.  Last year, 500,000 acres of highly productive farmland was left unplanted, and that number is expected to grow by as much as 40 percent this year.  For the farm workers and others whose economic security is tied to California’s farms, water supply restrictions mean lost jobs and family stress.  Last year, 17,000 farm jobs were lost due to water cuts and this year the number will be higher. 

We appreciate the intentions behind the emergency legislation announced today and we are grateful for the aid it might provide to some of the tens of thousands in our communities who are suffering, but real relief can only come from an end to this drought and the regulatory policies that have exacerbated it.   We continue to watch helplessly as scarce water that could be stored south of the Delta is instead sent to the sea in the name of species protection, notwithstanding the fact that through both wet and dry periods this has failed to halt the decline of the very same species.  

We urge members of both parties in Congress to recommit to the hard work of crafting legislation that would shield farmers, farm workers and cities in the San Joaquin Valley from this regulatory overreach without altering the Endangered Species Act.  It can be done, and nearly was done last year.  The good work of Senator Feinstein, Majority Leader McCarthy, and Representatives Valadao, Nunes, Costa and Calvert must not be abandoned.  We urge these leaders to restart their work quickly and seek rapid action on the legislation that was negotiated last year.”

David M. Gowan, Sr. Speaker of the Arizona House of Representatives

March 1st, 2015

“Coming from a rural district like mine, we believe in our liberties and freedom.  We believe so much in family values and freedom…just freedom.”

 

(Editor’s Note: The questions and answers have been paraphrased for brevity and clarity.)

 

David Gowan, a Republican, was first elected to the Arizona House of Representatives in 2009.  He resides in Sierra Vista in Legislative District 14, which includes all of Cochise County, all of Greenlee County, all of Graham County except for the Indian reservation, and the Eastside of Pima County—an area about equal in size to the state of Massachusetts.  The district’s economy consists of farming and ranching, mining and military (active and retired), as Fort Huachuca is located in Cochise County.

Speaker Gowan was elected by the Republican Caucus to serve as Speaker of the Arizona House of Representatives in November, 2014.  He is a graduate of the University of Arizona.  He has been married to his wife, Jessica, for 18 years.  They have two sons.  Gowan is active in his local church and with his son’s Boy Scouts activities, where he acts as the chairman of Troop 48.  He is a member of the Sierra Vista ELKS Lodge and chairman of Tai Shin Ki Do Martial Arts System.

 

Where were you raised and where did you go to school?

I was born in Stockton in 1969, but my family name comes from Ukiah in Mendocino County and the family name has been in that county since the 1880s, as far as I can figure that out.  My dad was in the military, the Air Force, for eight years before I was born.  And my mom owned a restaurant, Manny’s, in Stockton, where the local farmers would come and order a bunch of burgers.  She also served great broasted chicken and hot dogs.  I was raised in both Mendocino and Stockton.  I attended school in Stockton until the 8th grade, and then went to school in Mendocino County and graduated from Ukiah High School.  I consider Ukiah my home town.  I remember there were a lot of pear orchards, but now there are wine grapes.

 

How did your upbringing influence and shape your political thinking?

I was born in the city but also grew up in a small town as well.  Stockton was a large city, but the areas around it are rural.  My family came from rural life and I was raised that way.  I was born in California when Ronald Reagan was the governor of California and went to high school in the 1980s when he was president.  I’ve always had conservative values—probably because of my father, and my mother and the way I was raised.  I am a freedom- and liberty-loving type, like most rural people.

 

How did you get involved in politics?

I was politically-minded in high school, so I paid attention to politics.  I moved to Arizona in 1993.  My wife, Jessica, was born in Tucson although her mother moved her to Fresno when she was a year old.  They then moved all the way up to the Leggett area for a while before moving down into Ukiah where we met in high school.  Later, Jessica’s mother moved back to Arizona and we followed her here.

In Arizona, I got a job working as a magazine vendor and also started learning martial arts (Gowan is a committed marital artist and teacher). I then went back to Cochise College and to the University of Arizona, earning degrees at both.  During that process I thought, “I want to get involved here,” as I was tired of just griping about things.  At college, I became the president of our honor society at the University of Arizona, and that process taught me how political organizations worked.  In the early 2000s, a friend and I started the Cochise County Young Republican League.  Through that I started to meet people in politics—representatives, local elected officials and Gail Griffin, who chaired the Cochise County Republican Committee (and is now a State Senator).  I also got to know Randy Graf, who was the Majority Whip in the Arizona House of Representatives.  He decided to run for Congress in 2006 and left a seat open, so I jumped into the race.  I lost the first two times I ran, won the third time and am still here!  I am the first southern Arizona Speaker in 28 years (Joe Lane was the last in 1986).

 

Do you have other mentors you look up to?

My first mentor is God.  Jesus Christ is in my life and has opened the doors to all these trails for me.  But the person here on earth who has helped me the most is my father.  He is why I am here with the values and the beliefs I have.

As for political people, my favorite president is George Washington because without him, we would not have a nation.  He believed in etiquette and respect and took that to heart.  Ronald Reagan is another.  How do you not have someone like Reagan to look up to?  I am a true Reagan Republican all the way and am sure we would see eye-to-eye on most things.

 

What issues will be the most pressing this regular session as the Speaker of the House?

The major issue is the budget—we are still trying to get it under control and need to get it structurally balanced.  The governor, as well as both houses, has put forth that idea and now it is time to figure out how we get there.  The governor talks about growing us out of this slow growth period.  We are growing, but not as quickly as we would want.  The major piece of legislation for the House that we have taken up is deregulation.  When business is free to grow and thrive, it can create more jobs for more people and make this economy roll.  It all falls into how regulation affects them.  Farmers and other business owners want to go from point “A” to point “Z” without all the letters in between, if they can.  There are always hoops, but if we can pull those hoops out and get free, we can put more people to work.

 

What do you do in your spare time?

I spend my spare time with my family.  We like movies and enjoy meals together.  Sometimes we go up to the city and shop.  And, of course, on Sundays we go to church.  I do what I do here in the state capitol because of my family.  I look at it this way—if John Adams can do four years across the ocean after a long war before that and be away from his family for duty and for his family—I am not doing too bad going to Phoenix on Monday mornings and coming back on Thursdays or Fridays.

 

Our members produce the finest fruits and vegetables in the world.  Are you a consumer of our products?  Do you have some favorites?

Absolutely I do.  I like to eat, but I love to wear clothes too, and there is a lot of cotton in my district.  I like to eat apples, oranges and tangerines, and who doesn’t like lemonade?  We all love our lettuce, too.  I especially like asparagus with meat, and I also like broccoli.  My sister likes to eat tomatoes raw like an apple, but I tend to eat them sliced on a burger or cut up in a taco.  I really like olives and love ground pepper.  How do you not love everything farmers and ranchers do for us?  Without them we don’t live.  My dad sent me an article once from the lovely San Francisco Chronicle.  It was complaining about hunters and asked why they hunt animals for meat?  Don’t they know they can just buy it at the grocery store where it’s made?

Governor Doug Ducey Takes Over in Arizona

March 1st, 2015

As Arizona’s 23rd Governor, Doug Ducey is somewhat of a newcomer to politics.  Although most recently he served a four-year term as State Treasurer, his path to the Ninth Floor is not a usual one.

Because of a string of deaths in office, resignations and an impeachment, Ducey is only the second Governor in 40 years to take office due to “normal” election circumstances.  His background as a successful entrepreneur and businessman bucks the traditional model of climbing the political ladder.  In fact, most of his opponents in the primary and general elections were life-long politicos.  At this point, it is much too early to know what a Governor Ducey Administration means for our state.  Here are some things we do know:

 

Priorities

Governor Ducey has held on to the priorities he outlined during his campaign: opportunity for all, growing the economy and balancing the budget.  As if finding a consensus on opportunity for all is not hard enough, his goal to balance the state budget in the midst of a potential billion dollar deficit is not how you want to start your first term as governor.  However, Ducey seems up for the task with his office releasing its initial budget proposal, including various cuts to universities and municipalities, in addition to several hundred million dollars in fund transfers.  His plan is also void of any new tax proposals, consistent with his pledge not to raise taxes as governor.

In terms of growing the economy, Ducey has authorized an Executive Order, similar to that of his predecessor Jan Brewer, extending a moratorium on rule making, which is intended to reduce the propagation of burdensome regulations.  The order also stipulates that state agencies should strive to repeal any unnecessary laws and rules and become more customer-service oriented with the public and businesses they serve.

In terms of agriculture, Ducey has said he intends to make “sure leaders in every part of the state know that I want their communities to have a seat at the table in my administration.”  He also has publicly remarked on the importance of the agriculture sector in a strong economy.

Agriculture Industry

With the retirement of former Arizona Department of Agriculture (ADA) director Don Butler nearing the end of Governor Brewer’s last term, ADA has been operating with an interim director for almost a year and a half.  One of the first things Governor Ducey will do to impact our industry is to appoint a new director for our flagship agency.  There are two individuals who were recommended to Brewer.  Governor Ducey has the option to appoint one of them, as recommended by various ag organizations, or to convene a committee of five ag producers, as defined in statute, to interview and recommend up to three names to him.  Either way, we are hopeful that the new governor will act quickly in providing the department with a leader who can work with the industry to grow agriculture in Arizona.

In terms of his budget proposal, the governor maintained general fund revenues to ADA despite the looming budget deficit.  Western Growers applauded the governor for recognizing the vital services provided through this agency and we are hopeful that the strength of the department can be maintained through this budget cycle.  Along with ADA, the governor also did not propose cuts to the Department of Water Resources (DWR).  DWR has experienced drastic cuts in recent years, and we are thankful Ducey acknowledges the importance of a strong water agency in ensuring the future of agriculture in Arizona.

 

Agenda

Other than the priorities outlined, it is difficult to determine what a Ducey Administration will look like over the next four years.  It’s clear he intends to make his own way, as evidenced by the ouster of several employees from the previous administration.  His private-sector background will bring a fresh perspective to the office, but it will also require a lot of education on the part of industry to ensure that the services and government functions necessary to conduct business are maintained.

Ag Labor Hassles— Will They Never End?

March 1st, 2015

(Excerpted and adapted from a keynote speech given by Mr. Nassif to the National Council of Agricultural Employers at its annual meeting on February 4, 2015.)

Agriculture faces great obstacles today, especially for those engaged in labor-intensive agriculture where certain challenges feel particularly acute.  Over the course of my career, I have participated in some of the major battles our industry has waged over workforce and labor issues.  Unfortunately, as we are all too aware, the battles of the past continue to this day.  You need to look no further than the debate and litigation raging over piece-rate compensation and the recent efforts by the United Farm Workers to resurrect a 20-year-old labor election.

The UFW continues its efforts to gain a following by wreaking havoc for both workers and employers.  Its latest attempt to resurrect the Gerawan case along with efforts to undermine employers who use piece-rate compensation are just the most recent cases worthy of review.

As too many of you know, the UFW’s modus operandi is to unionize workers who have demonstrated no desire for such representation.  The Gerawan case demonstrates that the UFW’s intent is not fairness and justice for workers, nor is it increased wages.  It is about the employment of strong-arm tactics in order to boost union rolls.  Whether or not those tactics are successful, the UFW is content to see workers and employers suffer the consequences.

At the same time, dozens of farm companies are facing huge financial liability over piece-rate compensation thanks to the efforts of a few plaintiffs’ attorneys.  Dozens of class action lawsuits have been filed in California.  Businesses that are sued under the state’s Private Attorney General Act, a section of the state Labor Code that empowers private parties and their attorneys to act with the same powers as the state attorney general, choose to settle.  They do this because the potential exposure, when you include all of the various penalties, can mushroom into the millions of dollars.

Potential legislation that would mitigate the possible retroactive exposure has proven controversial in our own industry because employers who have not been sued do not want to toll the statute of limitations on these claims during the grace period intended to make retroactive payments.  Others don’t want to give up the opportunity of challenging the appellate court decision that created this exposure.  So the potential legislation is either very good or very bad, depending upon whether you’ve been sued or believe you won’t be.

Some California ag employers have begun to challenge the issue, hoping to get another appellate court to see it differently, and setting up a possible conflict with the previous appellate court decision, which could be resolved by the California Supreme Court.

In other words, the plight of farmers hasn’t changed much from the early days of my career when I represented Imperial Valley growers engaged in legal, and sometimes physical, conflict with the union.  Between union power plays and lawyers who use our complex workplace rules to leverage settlements that enrich themselves, farmers in the fresh produce industry face pronounced risks and liabilities that come with a labor-intensive business.

I have invested as much into the cause of agricultural immigration reform as anyone, but I am here to say that even if the political process can give us the best immigration solution we could imagine, that is not going to guarantee our future success.  Don’t get me wrong, we need to fix our broken immigration system, but as the economies in neighboring countries continue to improve, the availability of labor will not increase over time.  In light of our continued reliance on increasingly unstable human labor, the agricultural industry must take a giant leap into the “Precision Ag Era.”  Technology holds the key.

Mechanized labor is probably the long-term solution to this challenge.  Even though fully-autonomous harvesters will probably not arrive during our lifetimes, many innovative pioneers are working on labor-assisting technologies like harvesting aids and accessories.  Western Growers’ member company Ramsay Highlander is one of these.  It has developed mechanical harvesters for a variety of leafy green vegetables.  It also is currently in development of a “select pick” broccoli harvester that will utilize a high-speed vision system and advanced robotics.  This machine will employ Simultaneous Localization and Mapping—or SLAM—computer algorithms that allow a robot to map an unknown environment while simultaneously keeping track of its own location within it.  Hey, if the technology is good enough for the Mars Rover, it’s good enough for a broccoli field in the Salinas Valley, right?

Imaginative approaches to encourage innovation and technological advancement in agriculture will one day help us manage limited resources, including human resources.  Historically, agriculture—especially American agriculture during the 20th century—has been able to surpass each new challenge with a combination of innovation and hard work.  It will be the innovators and adapters most able and ready to take advantage of the opportunities.  In the long term, we must strive for efficient and innovative methods and inventions that will help us lessen our need for and dependence on human labor.  Perhaps it’s time to look toward transforming the way we farm into a new industry that frees us from this kind of battle fatigue.  Robots anyone?

Future Leaders Class Kicks off Program with Orientation

March 4th, 2015

In mid-February, Class III of the Western Growers’ Future Volunteer Leaders Program completed an introductory orientation session in the association’s Irvine office.  This is the group’s first activity in what will be a two-year program.

In attendance were ten outstanding young individuals from Western Growers’ member companies: Pete Aiello, Uesugi Farms (Gilroy, CA); Brian Antle, Tanimura & Antle (Salinas, CA); Neill Callis, Turlock Fruit Company (Turlock, CA); Brandon Grimm, Grimmway Farms (Bakersfield, CA); Charlie Montgomery, Rousseau Farming Company (Tolleson, AZ); Alexander Muller, Pasquinelli Produce (Yuma, AZ); Bixby Ramsey, Mann Packing (Salinas, CA); Trey Rodriguez, The Growers Company (Somerton, AZ); Bridget Rotticci, Bengard Ranch (Salinas, CA); and Kyle Smith, JV Smith Companies (Yuma, AZ).  Cannon Michael of the Bowles Farming Company (Los Banos, CA) is also in the program but was unable to attend the meeting.

During the two-day orientation session, class participants were provided an overview of the history and organizational structure of Western Growers, the member products and services offered by the association, and the federal, state and local issues affecting the California and Arizona fresh produce industry.  Members of Class III also had the opportunity to experience Arbinger’s Leadership and Self-Deception course, which encourages leaders to examine novel approaches to resolving personal and professional conflict.

“As with our first two classes, Class III represents the best and brightest of the next generation in the Arizona and California fresh produce industry,” said program administrator, Cory Lunde.  “With all of the uncertainties facing our members and the industry, it is reassuring to observe the level of talent and passion represented by our Future Volunteer Leaders.  The future of our industry is in good hands.”

During the course of the next two years, members of the Future Volunteer Leaders Program will participate in the board meetings held in Sacramento, Washington, D.C., and Newport Beach, as well as Annual Meeting events.  Additionally, during the second year of the program, Class III will travel to Florida as part of an exchange program with the Florida Specialty Crop Foundation’s Emerging Leader Development Program.

Blythe’s Soon To Be Centenarian Still “Growing” Strong

March 4th, 2015

Nish Noroian

Nish Noroian Farms

Blythe, CA

Member Since 1975

On July 9, 2015, Nish Noroian, the patriarch of Nish Noroian Farms, in Blythe, Calif. turns 100.  This member profile piece highlights the 80-plus years he has spent in agriculture.  Nish’s daughter Nisha recently gave an interview about her family’s farming history and about her dad.  Although a partner in the Arizona law firm Poulton and Noroian, Nisha still plays a vital role at Nish Noroian Farms as an assistant farm manager.  The Poulton and Noroian law firm is also a member of the Western Growers Ag Legal Network, representing small businesses on employment issues and in civil litigation.

Family History: Nish Noroian’s parents, Nazaret and Shooshan, were both born in Armenia and fled their home country due to persecution. Nazaret arrived in Boston when he was 18 in 1897.  After a year of working in a factory, he moved to Fresno where, among other things, he milked cows at the county hospital.  Nazaret left Fresno and eventually ended up in Reedley, Calif., in 1906.  There he bought 40 acres of grape vineyards and met his future wife, who arrived separately in Reedley from Armenia the same year.

Nish grew up in Reedley working in the family’s vineyard during the Great Depression.  As with most people who experienced it, the Depression had a profound and lasting effect on the young Noroian.  “My grandfather instilled in my dad the mentality that if you can’t afford something, you don’t buy it,” Nisha said. “He has never bought anything on credit his whole life.”  She relayed a story that when he was growing up, he saved enough money to buy a car; but instead of buying one from a dealer, he took a bus to Detroit and bought one there instead.

The experience of the Depression, combined with the values instilled in him by his family, made Nish a tireless worker with a work ethic Nisha describes as “workaholic.”  But some youthful memories are not meant to be happily remembered.  “Since then, he never has grown a grape in his life.  He wanted to get away from that,” Nisha says.

So while in high school in the early 1930s, Nish started growing his own watermelons and he hired the entire football team to work for him.  When he had the time, he would double as a shipper and use the truck he bought to deliver produce to San Jose, Fresno, Los Angeles and Reno.  It was a lot of hard work, but he was able to make and save money.  “He didn’t necessarily want to be a farmer, but it was just something that kind of happened,” Nisha explains.

Business was booming when Pearl Harbor was attacked in 1941.  At 26 years of age, Nish immediately enlisted in the Army Air Corps.  He wanted to be pilot, but his eyesight was not good enough.  He was never deployed overseas, but was instead stationed in Louisiana where he trained Army Air Corps crews.  He rose to the rank of master sergeant and served from January 20, 1942, until November 28, 1945.

Service to his country came at a price.  Prior to Pearl Harbor, Nish had saved enough money to go to college and attend law school at Stanford.  The bombs that rained down that day, not only changed the lives of the thousands that were killed and injured, but they also changed the life of Nish Noroian.  Though he had not planned to be a farmer, the war redirected him back to that occupation.  Nisha said his service time is something he is very proud of and remains important to him to this day.

Move to Blythe: Once his time in the service ended, Nish started growing produce in the Reedley area again.  In 1947, he started to pay people to grow crops.  However, the man he hired to grow watermelons for him in Blythe skipped town for unknown reasons, leaving Nish with a crop that needed to be harvested.  Having invested a lot of money in the ground and not wanting to lose the melons, Nish went to Blythe in the summer of 1947 for the harvest.  Once he was there, he ended up staying.  At the time, Blythe was a perfect place to grow watermelons.

Currently the company employs five full time employees and, in peak season, about 30 farm laborers.  Although he grew watermelons most of his life (as well as cantaloupe and other leafy greens), Noroian stopped growing his favorite melon about three years ago.  The company now grows banana squash, cotton, alfalfa and wheat in the north end of the valley on the approximately 800 acres it owns—a significant decrease from years past when he also leased land for his growing operation.

Involvement with the Company:  As the owner/founder of the 68 year-old company, Nish Noroian still remains heavily involved in the day-to-day operations.  Every morning, he makes the rounds on the farm with his wife, Linda, checking the fields and getting an update from the foreman about the farm’s activities before he heads back to the office for the rest of the day.  Though Linda holds the informal title of operations manager, Nish’s counsel is sought often by the farm’s employees, including the farm manager who meets with him daily to brief him about what’s happening.

Nisha Noroian says that her father has no plans to retire or slow down anytime soon.  Despite his age, working every day helps him thrive.  She said his mother’s father lived to be 104 and he was planting a peach orchard when he was 100.  “So longevity runs in the family,” Nisha said. “Nothing seems to slow him down.”

Toward the end of last year, over a three-month period, he had four different heart procedures.  Nisha recalls, “His last procedure was on a Friday, he was released from hospital on Sunday, and was back to work on Monday.  He’s a hard worker.”

Nisha recalls further, “The only time I ever saw my dad relax was when he was at the Balboa Bay Club.  He was the club’s 50th member.  Having massages, eating out and being close to the water can make anyone relax.”

Company’s Biggest Issues: Like nearly every other grower in the west, Nish Noroian’s two biggest issues are water and labor.  But for someone who originally settled in Blythe because it had the first water rights to the Colorado River, water is the most important issue.  Without that, nothing else happens. “It’s kind of funny,” Nisha says, “because back then, that was the reason he wanted to stay (in Blythe), and now it’s even a bigger reason for wanting to be there.”

Short-term water transfers have been done previously in Blythe, including by Nish, but never would he consider doing long-term deals that would send the water to Los Angeles.  He views long-term water transfers as bad for the local farm economy.  Nisha pointedly relays her father’s fears saying, “If a third of the valley dries up, then what is everyone going to do?”

Nisha also says that her father has a level head when it comes to immigration.  He’ll be the first to tell you that no one wants to do the work.  “We need those people.”  Though, due to the size of their current operation and the location of the farm, labor is no longer much of an issue for the company.

Community Involvement: For Nish Noroian, a life of farming would be incomplete without also giving back to the community.  After all, such generosity was instilled in him by his parents who also had a history of being generous and hard-working.  A symbol of that generosity still stands today.  Nish’s dad, Nazaret, built the first Armenian church in Reedley called the Armenian Apostolic Church.

Following in his parent’s footsteps, Noroian helped establish the Cotton Gin in Blythe.  It was a big deal for the folks in the area because it meant jobs.  Early on, there had been talk about building it in Parker, Ariz., and that would have been to the detriment of the farmers in Blythe since they would have had to transport everything there.  Instead, it was decided to have the Gin built in Blythe and Nish was instrumental in getting that done.  Now everyone who grows cotton in that region comes to Blythe to get their cotton ginned.  He served as the Cotton Gin’s treasurer for more than 20 years and has also been on its board since the early 1980s.  He recently received an award for his many years of service.

Nish also often gives back to the community by sponsoring local baseball teams and by donating produce for various events.  He helps promote the fair in Blythe by purchasing animals from 4-H kids and is known in the community as someone people can go to if they need something.  His involvement in politics was also a way of giving back to the community as it was important for him to try to get good candidates elected.  He served on California’s Republican State Central Committee and was close with several California governors, including Ronald Reagan.  His involvement in politics earned him the title around the state as “Mr. Republican.”

That same generous mentality translates to his own family.  As the oldest sibling, he put two of his four sisters through college.  He also insisted that, regardless of their involvement on the farm and in agriculture, both of his daughters needed to have an education so that they had something to fall back on because of the uncertainty in the industry.  His youngest daughter Nikki is finishing pharmacy school and is awaiting placement.

Additionally, Nisha says, in general, Nish is a proud husband and father and was an early supporter of women.  In many situations he feels women are smarter than men and are better equipped to do some things than men are.  It’s no wonder why Nisha proudly boasts, “My dad is my hero.”

Involvement with WG: Nish Noroian Farms has been a Western Growers’ member since 1975.  Just like with farming, politics and the community, Nish’s work with Western Growers also has been prolific.  According to Nisha, his political involvement was instrumental in establishing the Western Growers Political Action Committee.  Though his direct involvement with Western Growers has diminished over the years, his company still relies on Western Growers’ insurance and legal services, as well as the association’s government affairs office to help operate his business.  As Nisha succinctly puts it, “He loves Western Growers.  It’s his favorite organization.”

TRANSPORTATION OUTLOOK Low Fuel Rates are a Welcome Sight …But Only One Component of Cost

March 4th, 2015

Fuel rates are as low as they have been in years, which will have a positive impact on freight rates as long as the current situation exists.  However, that doesn’t mean freight rates are going to drop precipitously.

“By all means challenge your carrier about the cost dynamics,” said Luke Gowdy, general manager in the Salinas Valley office of C.H. Robinson.  “But we don’t expect a huge (freight rate) decrease because of fuel costs.”

Gowdy explained that when it comes to raw freight costs, there are three main components in the bucket, each with a fairly equal weight: fuel costs, equipment costs including the cost of complying with safety and pollution regulations, and labor costs.  While fuel costs are lower than they have been in many years, both labor and equipment costs are on the rise.

He said labor costs took a big hit last year as, coming out of the down economy, many carriers found it necessary to significantly raise base pay to attract drivers.  Gowdy said construction, manufacturing and many other industries tend to draw from the same labor pool that supplies carriers with their drivers.  When those jobs are plentiful, experienced drivers tend to choose those professions because they can stay at home and have a more “normal” life.  “We heard of carriers giving a 15–17 percent increase in base pay,” he said.

Besides the cost of buying additional equipment to comply with regulations, many carriers and independent owner-operators are also having to replace their tractors and trailers.  During the recession, truck replenishment rates fell significantly, causing the overall age of the U.S. truck fleet to increase to unheard-of figures.  Truck orders are now picking up, but that also adds to equipment costs.

“With two out of the three components going up, I don’t think it is realistic to expect lower freight rates,” Gowdy repeated.

He added that one of the more significant factors in the cost of hauling of perishables is supply and demand.  Demand increases are fairly constant as increased population requires a measurable increase in traffic each year, everything else being equal.  More restrictive hours of service means more equipment and drivers are needed, yet they are not out there.  He said the utilization of U.S. equipment is running at the 98–99 percent level.  That translates to a potential shortage situation most of the time, with very little switch in supply or demand needed to create a shortage.  For example, Gowdy said a holiday period, such as the Fourth of July, which takes some drivers off the road to stay at home with their families, creates a shortage.

“We think the market in 2015 is going to be similar to last year, but we do expect quite a bit of volatility around events of any magnitude,” he said.  “Celebratory weekends will pull drivers off the road.”

Gowdy said the CHR/WG Transportation Partnership continues to provide benefits for Western Growers members both in terms of supplies and cost.  The buying power amassed by the many WG members involved in this program does help create a better supply of transportation at competitive rates.

In addition, the CHR executive said the transportation firm continues to explore and expand creative solutions for the grower-shipper community.  One program involves the use of forward distribution facilities.  CHR has invested in facilities throughout the country that allow for the creation of an inventory of product close to the point of delivery.  He said many receivers would rather get several pallets of a product on a daily basis than a truckload once a week.  The forward distribution solution allows a supplier to ship a load to a warehouse facility near the destination and then provide that daily delivery of smaller quantities.  In 2014, Gowdy said CHR added one new forward distribution facility and it continues to explore opportunities and needs in other geographic regions.  Currently its facilities are strategically located throughout the country allowing it to have same-day deliveries virtually everywhere.

Another transportation solution that is utilized by many WG members is being able to quote a delivered price.  While the produce industry traditionally operates on an FOB basis (product priced from point of origin without the freight rate included), Gowdy said a delivered price has its devotees.  “Like many business options, it tends to go in cycles.  Sometimes retailers wants to go in that direction and other times they don’t.”

When transportation is tight and trucks are hard to find, retailers are often looking for delivered quotes to relieve themselves of that headache.  Or maybe a retail executive needs to get a better handle on his transportation costs and is looking for all FOB buys.  Some end users are open to it, others are not.  In any event, Gowdy said CHR is able to offer this transportation option to shippers looking for it.

Largely because of these many services, he said the CHR/WG program continues to grow and the CHR staff continues to tout it to the association members.  While one might think that after eight years of operation, virtually every shipper would be familiar with the program, Gowdy said that is just not true.  “Things change.  People move from one place to the next.  I’m always challenging the sales executives to check back with the customers.  Just because you discussed the transportation program with a shipper six months ago, doesn’t mean you know their needs today.”

Rail remains an option especially for hardware items such as potatoes, onions and hardy vegetables.  But Gowdy admits the percentage of market share that the rail industry owns is very light.  He said lack of consistent service and cost from the few large companies running the rail programs is the problem.  The equipment is there, but the rail companies control the rail lines, and they don’t seem to be able to create a good, sustainable program for perishable product.  In the past year, a couple of dedicated rail programs have gone out of business for a variety of reasons.  In one case, the business was there, but the rail line had other customers (most notably oil transporters) that it valued to a greater extent.  In the other instance, a start-up had difficulty surviving the initial slow-growth period.

For the long run, Gowdy said it is hard to imagine a future that doesn’t in some way include rail as a transportation option.  There is no doubt it is more fuel efficient to ship product via rail than on individual trucks.  He said at some point it should become a more viable option than it is today.