Nassif Calls On Congress to Align Dietary Guidelines and Federal Policy

January 12th, 2016

Last week, the U.S. Department of Agriculture (USDA) and U.S. Department of Health and Human Services (HHS) released the 2015-2020 Dietary Guidelines for Americans.

As in previous versions, the federal guidelines continue to recommend an increase in consumption of fresh fruits and vegetables as part of an overall effort to promote healthy eating patterns and reduce the risk of chronic diseases. According to the report, about half of all American adults have one or more preventable, diet-related chronic diseases, including cardiovascular disease, type 2 diabetes and obesity.

Western Growers President & CEO, Tom Nassif, took the opportunity to highlight the gap in federal nutrition guidelines and federal spending on nutrition and food-assistance programs. While the dietary guidelines recommend that vegetables and fruits comprise of more than 40% of the daily diet, USDA spending on this food group totals less than 15% of spending on all food programs.

“Clearly, federal policies are out of alignment with dietary guidelines,” said Nassif in a letter to the House and Senate agriculture committees and the House Education Committee. Nassif concluded his letter by calling on Congress to “place greater emphasis on fresh fruits and vegetables” as they consider funding priorities for nutrition and food-assistance programs.

READ THE FULL TEXT OF THE LETTER

For more information, contact Cory Lunde at (949) 885-2264.

We’re Losing How Much El Nino Water?

January 28th, 2016

Today, the Coalition for a Sustainable Delta released data indicating that 125,000 acre-feet of water has been flushed out to the ocean this week alone as a result of environmental regulations restricting operation of the Delta pumps. And for the month of January?  The total amount of water lost so far is 208,000 acre feet and counting. This amount of water translates to nearly 70,000 acres of fallowed farmland and more than 1,600 lost jobs.

To mitigate this type of economic damage to our membership and industry, Western Growers has been actively pushing our elected officials to establish El Nino protocols that allow the Delta pumping plants to operate at maximum capacity during major runoff/flood conditions. We promise to continue this effort until every last opportunity to capture the El Nino rains has been exhausted.

For more information, contact Cory Lunde at (949) 885-2264.

Ducey Announces Members of Governor’s Water Augmentation Council

January 5th, 2016

In late December, amidst the fury of the holiday season, Arizona Governor Doug Ducey announced the members of the newly-formed Governor’s Water Augmentation Council.

According to a press release issued by the Governor’s office, the Council was created “to ensure the certainty and vitality of Arizona’s future water supplies” and is expected to begin meeting in the near future.

The Council consists of a combination of 29 prominent water resources experts, watershed groups, local government and industry leaders in Arizona agriculture, mining and homebuilding. Thomas Buschatzke, director of the Arizona Department of Water Resources, is serving as Chairman.

Two Yuma-based WG members will serve on the board: Mark Smith of Smith Farms Companies/Yuma Irrigation District; and Phil Townsend of Sunland Chemical Company. Grady Gammage, Jr., who was a panelist in the Water Rights’ workshop at the 90th Annual Meeting in San Diego this past November, was also named to the Council. 

To see the full release on this announcement from the Arizona Department of Water Resources, CLICK HERE

For more information, contact AnnaMarie Knorr at (602) 451-0658.

2016 Payroll Tax and Other Financial Information for Employers

January 7th, 2016

Western Growers works closely with the Grower-Shipper Association of Central California. Recently, that organization released some valuable tax, wage rate, insurance and other business related information for employers that we wanted to pass along to our members. Thank you to Jim Bogart, President/General Counsel, Grower-Shipper Association of Central California and his staff for compiling this information. We hope you find it useful. 

CLICK HERE to view for the 2016 Payroll Tax and Other Financial Information for Employers Fact Sheet

For more information, please contact Jason Resnick at (949) 885-2253.

APMA 36TH Annual Forum to be Held January 27-29 in Monterey

January 13th, 2016

The Agricultural Personnel Management Association’s  (APMA) Conference for Human Resource, Labor and Safety Professionals in the Agricultural Industry is just around the corner! The conference will feature keynotes and workshops on topics related to human resource management and employer practices.

Among the speakers are WG Vice President and General Counsel Jason Resnick and Sr. Vice President Human Resources Karen Timmins who will be speaking about the H-2A Program and talent development, respectively.

Register Now!  

For more information, contact Jason Resnick at (949) 885-2253. 

State Department Officials Visit Yuma to Talk H-2A

January 15th, 2016

Officials from the U.S. Consulate General in Nogales, Mexico, met yesterday with Western Growers members in Yuma to seek ways to better serve the H-2A-user community. Participants from the Consulate, included: Consul General, Christopher Teal; Vice Consul, Leshawna Johnson; and Public Relations staffer, Erika Munoz Burgos. Western Growers Board Member Gary Pasquinelli hosted the lunch meeting at Pasquinelli Produce’s headquarters, which was kicked off by Western Growers Board Member Sonny Rodriguez of the Growers’ Company in Somerton, Arizona. H-2A producers, including Tanimura & Antle, several H-2A labor contractors and WG staff were at the table.

The meeting follows a smaller outreach meeting held early last month in Somerton with Rodriguez and representatives from the Nogales and Tijuana Consulates. The purpose of that meeting was to help the consulates better understand our challenges and assist our industry with timely H-2A visa processing.

Mr. Teal spoke of the critical role the consulates play in facilitating free trade between the U.S.’s third largest trade partner (Mexico) and Mexico’s largest trade partner (United States). He also acknowledged the growing importance of the H-2 program to producers in the U.S. and the employees who gain employment through the program.

Ms. Johnson encouraged H-2A users to notify the consulate as soon as visa processing dates are anticipated so staff can be better prepared for the influx of workers needing to be interviewed and processed. As it stands now, the Nogales Consulate is well prepared for the increased activity that takes place the first couple of weeks of November as H-2A workers gain clearance to work the Yuma winter vegetable harvest.

WG extends our gratitude and appreciation to the State Department for its continued engagement with the industry on this issue and for their efforts to seek information to better serve the H-2A-user community.

For more information, contact AnnaMarie Knorr at (602) 451-0658.

Annual Governor’s Forum on Colorado Agriculture to be Held February 18

January 20th, 2016

Governor John Hickenlooper and the Colorado Agricultural Leadership Program, in conjunction with the Colorado Department of Agriculture and Colorado State University are set to host the 25th annual Governor’s Forum on Colorado Agriculture on February 18 in Denver.

The focus of the 2016 Governor’s Ag Forum will be “The Next Generation of Agriculture” and will feature numerous ag experts from around Colorado and the country, including WG’s Jason Resnick and WG members Robert Sakata (Sakata Farms) and Michael Hirakata (Hirakata Farms).

Colorado’s Agricultural Leadership Program is focused on developing Colorado’s future agricultural leaders. Its focus is to explore relevant industry issues and provide insight into potential outcomes and solutions to help ensure the future success of Colorado’s agricultural industry.

For more information and to register, CLICK HERE.

Senate Ag Committee Continues Fruit & Vegetable Mandate

January 22nd, 2016

Child nutrition programs have been the source of contention for the past two years with fights occurring over everything from whole grain-rich requirements and sodium restrictions to a fresh produce mandate. Yesterday, the Senate Agriculture Committee Nutrition and Forestry Committee put those fights to rest — at least for now — when it favorably reported the Child Nutrition Integrity and Access Act of 2016 out of committee. The bipartisan bill, which reauthorizes over $20 billion in child nutrition programs for five years, was lauded by both Pat Roberts, the chairman of the committee and Debbie Stabenow, the committee’s ranking member.

The biggest item in the bill for Western Growers’ members was the discussion of the mandate requiring school lunches to include a half-cup of fruits or vegetables as part of every meal. Opponents of the requirement argued the “half-cup” requirement should be eliminated. Western Growers has long advocated for the reauthorization of the mandate which was ultimately maintained in the bill.

In addition, the Senate created a hardship exemption to the fruit and vegetable program which will allow schools to be exempted from the mandate if they can show lack of access to fresh fruit and vegetables, lack of cold storage or lack of other equipment to prepare fresh product. The exemption CANNOT be granted based on financial hardship.

Though the exemption was included in the bill, it will be difficult to secure. If granted, the provision requires the school to remedy the hardship within four years so they can implement the program and comply with the mandate.

On the advancement of the bill and inclusion of the fresh produce requirement, President and CEO of Western Growers Tom Nassif said, “Western Growers is pleased that the committee kept the fruit and vegetable mandate in place. Requiring that schools provide healthy lunches for our children that include fresh produce is a victory for school children across the country. We support the bill and this provision and look forward to working with USDA on the regulations governing hardship exemptions as we believe providing children with fresh fruits and vegetables teaches healthy eating habits for consumers of the future. Western Growers would like to thank Chairman Roberts and Ranking Member Stabenow for their dedication and hard work on moving this bill forward for a floor vote. We hope that the Senate passes this measure and also hope the House will soon take up the reauthorization and maintain the fruit and vegetable mandate.“

For more information, contact Dennis Nuxoll at (202) 296-0191.

USDOL Expands Definition of Joint Employment

January 22nd, 2016

Yesterday, the Wage and Hour Division (WHD) of the U.S. Department of Labor released new guidance called an “Administrator’s Interpretation” (AI) that expansively defines joint employment under the Fair Labor Standards Act (FLSA) and Migrant and Seasonal Agricultural Worker Protection Act (MSPA).

The guidance identifies common scenarios where the WHD would consider an employee to be jointly employed, and therefore both employers are jointly liable for wage and hour law compliance. The AI was deemed necessary as a result of “continual changes in the structure of workplaces,” and WHD’s view that a worker is jointly employed by two or more employers has become more common in recent years. WHD will decide if a joint employment relationship exists in FLSA and MSPA cases, particularly if (1) the employee works for two employers who are associated or related in some way with respect to the employee; or (2) the employee’s employer is an “intermediary employer” (e.g., a farm labor contractor or other agency that provides labor to another employer.) 

For detailed information about the new guidance, click hereIf you need additional information or have questions, please contact Jason Resnick at (949) 885-2253.

WG Launches International Website Page for Members

January 26th, 2016

Trade is top of mind for many companies. In 2015, Congress debated and passed Trade Promotion Authority (TPA), providing the executive branch with the flexibility to craft trade deals and Congress with the ability to streamline their review and passage. Negotiations with member countries of the Trans Pacific Partnership (TPP) also concluded in late 2015, paving the way for Congress to approve the massive trade agreement in 2016 which is expected to provide a significant boost to the U.S. economy as well as U.S.-based companies doing business overseas. Other issues, such as the West Coast port strike and the development of a Canadian risk mitigation tool for U.S. produce companies, have provided additional kindling making trade a hot issue for many.   

With many of our members involved in importing and exporting commodities across the globe, Western Growers has developed an International Trade Assistance page on the Western Growers’ website designed to provide members with helpful importing and exporting information. Members can use the page to determine such things as foreign country phytosanitary requirements and tariffs, or use it to find useful links to various USDA foreign offices, and the Global MRL Database. Western Growers will use the page to post WG position papers and statements that affect trade related matters.

Additionally, a function at the bottom of the page will allow members to submit specific questions to the WG staff in both Irvine and Washington, D.C. on trade related questions. Both the question and response will be confidential between WG staff and the member making the inquiry.

WG welcomes and encourages members to review the page which can be found by hovering your mouse over the ‘Membership & Services’ button on our main page (to the right of our logo) and then by clicking the International Trade button. Or you can go to: https://www.wga.com/services/international-trade. We are open to receiving any feedback or suggestions you might have which may greater assist you in the global marketplace.

We hope you find this page useful and we look forward to any feedback you may have.

For more information, please contact Ken Gilliland at (949) 885- 2267.

Psyllid Quarantine Area Expands in Fresno County

January 26th, 2016

The following is an excerpt of a press release issued by the California Department of Food and Agriculture (CDFA) on additional areas in Fresno County that have been quarantined due to Asian Citrus psyllid detections: 

“A new portion of Fresno County has been placed under quarantine for the Asian citrus psyllid (ACP) following the detection of one ACP within the City of Fresno.  The quarantine zone measures 97 square miles, bordered on the north by W Alluvial Avenue; on the south by W North Avenue; on the west by N Chateau Avenue; and on the east by S Chestnut Avenue.  The quarantine map for Fresno is available online at: www.cdfa.ca.gov/go/acp-maps.  Please check this link for future quarantine expansions in this county, should they occur.  Quarantines in new counties will be announced separately.
 
The quarantine prohibits the movement of citrus and curry leaf tree nursery stock, including all plant parts except fruit, out of the quarantine area and requires that all citrus fruit be cleaned of leaves and stems prior to moving out of the quarantine area.  An exception may be made for nursery stock and budwood grown in USDA-approved structures which are designed to keep ACP and other insects out. Residents with backyard citrus trees in the quarantine area are asked not to transport or send citrus fruit or leaves, potted citrus trees, or curry leaves from the quarantine area.

For the full release CLICK HERE.

Trained Supervisors Are Key to Preventing Sexual Harassment

January 26th, 2016

If you own a business in California or do business here and your company has 50 or more employees, anyone who acts as a supervisor at your company must, by law, take sexual harassment prevention training. Even if you don’t have 50 employees or operate your business in California, training is strongly recommended to protect your business and employees – every company needs supervisors who know the law.

We understand many sexual harassment courses are expensive and are tailored to suit the needs of supervisors based in an office environment. However, they may not understand what managers in the agriculture industry go through outside of the office. We do.

That’s why Western Growers is offering sexual harassment prevention training courses next month in Santa Maria. As the leading partner in the growing and shipping industries, we know the unique challenges your managers face.

Send your managers to our in person, interactive, two-hour, AB-1825 and AB-2053 compliant workshop to:

  • learn the legal definitions of sexual harassment and employment discrimination
  • practice how to address issues
  • discuss legal obligations managers have to their employees
  • study the consequences of sexual harassment on individuals and your company
  • learn about abusive conduct in the workplace and why you need to address it

We offer courses in English and Spanish for a minimal cost:

  • Western Growers members: $50/attendee
  • Non-members: $70/attendee

Tuesday, February 23, 2016 – 10:00am to 12:00pm (English session) > REGISTER

Tuesday, February 23, 2016 – 2:00pm to 4:00pm (Spanish session) > REGISTER

If you have questions or would like to inquire about private training for your company, please contact Adriana Robles at [email protected].

Governor Ducey Announces Public Budget Meeting in Yuma on February 1

January 28th, 2016

Arizona Governor Doug Ducey announced that he will hold a hearing in Yuma on February 1, 2016, to brief the public and media on the proposed Fiscal Year 2017 executive budget. Lorenzo Romero, director of the Governor’s Office of Strategic Planning and Budgeting (OSPB), will brief the public on the proposal and will take questions. The Governor’s office announced it will also hold a public budget hearing in Prescott later that same day. Similar meetings were held previously in Tucson and Flagstaff.

Read the Full Media Advisory

Meeting Details

Public Budget Hearing

February 1, 2016, 10:00 a.m. MST

Yuma City Hall

City of Yuma Council Chambers

One City Plaza

Yuma, AZ 85364

For more information, contact AnnaMarie Knorr at (602) 451-0658.

Telecommuting Requires Special Workers’ Comp Attention

January 4th, 2016

Many companies are now using telecommuting as a regular work option for some of their workforce—
and why not?

Even in agriculture, there are many reasons why allowing workers to work from home can provide many benefits to the workers and the company.  This work option allows the company to draw from a wider pool of workers as employees do not need to be physically located near the main office of the entity.  Since much of today’s work can be done electronically through computers, phones and fax machines, employees can be located almost anywhere and still perform their work effectively.

From the employer’s viewpoint, the firm can hire the best people for the job and not require them to relocate.  This may also enable the employer to hire a more affordable candidate, since it will have a larger number of prospects to recruit from.  Once the employee is onboard, he or she can be more productive as less time will be spent traveling back and forth to work.  The employee will also be working when she is most productive during the day, which also adds to the person’s productivity.  From the view of employees who get this benefit, they get a job that they really want, get to work out of the comfort of their home and save time and money because they don’t have to drive into the office on a daily basis.  It can truly be a “win-win” for both parties, making for happy employees who produce a better work product for the employer.  Telecommuting can be a very positive work option for many firms.

However, with employees working out of their homes, the company has created a new work exposures that it needs to deal with.  Even though the employees are working out of their homes, the company is responsible for injuries and accidents related to work that occur.  How can a company deal with the workers’ compensation exposure of its telecommuters?  First and foremost, companies need to be aware of the working conditions in the homes of their telecommuters.  Although it may be difficult, it is advisable to inspect the “office” of each home worker to insure the work area is free from any conditions that might cause an accident or an injury.  The telecommuter should have an area specifically set aside as their work area that has a desk, chair, computer, printer, fax machine and proper lighting so they can work safely without risk of suffering an injury.  It would not be advisable for a worker to try to operate out of their garage or even their kitchen since those areas have other uses and might present a higher risk than a typical office exposure.

The second concern is determining when a worker is actually performing work-related activities and when they are doing “other” things not related to work.  If a telecommuter is injured at home, one of the first questions that need to be addressed is whether the injury is work related or not.

The following scenarios demonstrate the issue.  Which of these situations are work-related injuries?

•   Employee drives to store to pick up office supplies for their home office.

•   Employee goes out to car to retrieve a work document, trips in the garage and breaks his leg.

•   Employee gets up in the middle of the night to check voicemail, falls down stairs and injures her back.

Although these might not seem to be workers’ compensation injuries, they could be considered a work-related injury.  Practically, any injury that occurs while a telecommuter is doing anything even remotely related to “doing their job,” could be considered a workers’ compensation loss.  Employers need to anticipate the potential for these losses and minimize the chances for them occurring.  Employers should take the following steps in preparation of telecommuting situations:

•   Inspect employee home offices to insure that it is safe;

•   Make sure office, desk and chair are ergonomically sound;

•   Define the “home office” boundaries clearly—outside of this area is not workspace;

•   Establish regular hours for work so that unusual work times are not considered typical;

•   Have well documented job descriptions and clear definitions of employee responsibilities and duties;

•   Communicate clearly that telecommuting is a privilege and failure to follow guidelines can result in termination of the privilege.

Finally, finding the right workers’ compensation carrier with experience dealing with telecommuters is extremely important.  The insurance company can provide safety tips and training for employees on how to stay safe while telecommuting.  Western Growers Insurance Services has many providers that are well versed in telecommuting.  If you want more information, contact Greg Nelson, WGIS vice president, for more details.

The UFW’s Back Office Support

January 4th, 2016

In 2011, the National Labor Relations Board (NLRB) ordered all employers (both union and non-union) to post notices informing employees of their rights under federal labor law.  The NLRB claimed the “Poster Rule” was necessary to help employees understand their rights.

Business groups brought legal challenges, arguing the NLRB had exceeded its statutory authority and was biased in favor of labor unions.  The rule was blocked and ultimately invalidated by two U.S. Courts of Appeals rulings.  In January 2014, the NLRB gave up, presumably assessing its chances of success before the U.S. Supreme Court to be slim as poster paper.

Fast forward to 2015.  The California Agricultural Labor Relations Board, led by Chairman William Gould who is a former chairman of the NLRB, is doubling-down on the NLRB’s flawed attempt to “educate” workers.  But instead of requiring employers to hang an 11 by 14 inch poster, the California Board is proposing to go much further, compelling agricultural employers (both union and non-union) to grant ALRB agents access to their private property for purposes of “educating” farmworkers about their rights to unionize.

Last September, the ALRB held hearings in Fresno, Salinas and Santa Maria on the proposal, and as expected, industry representatives voiced unanimous opposition while the UFW registered staunch support.  Many farmworkers testified in opposition to the board’s proposal.  They testified about their distrust of the ALRB, an agency that has repeatedly sided with the union and against the interests of farmworkers in recent years.  This should come as no surprise to anyone who has been following the protracted Gerawan Farming v. ALRB saga.

The ALRB staff subsequently concluded that the board has the authority to impose a rule allowing ALRB staff to take access on the worksite for purposes of “advising, notifying or educating” employees about their rights and obligations under the Act.  The agency’s justification for the proposal cites the “influx of a new and growing group of (indigenous) farmworkers with little or no understanding that they have any rights under law and the ineffectiveness of traditional methods for education engaged in by the Board to reach significant numbers of farmworkers.”

ALRB staff has now introduced a draft proposed regulation to create a new ALRB “Worker Education Unit” (WEU).  This is ostensibly to allay employers’ concerns about the obvious conflict of interest when the prosecutorial and enforcement staff of the board are the same ones doing the educating.  To say we lack confidence in the integrity of this supposed firewall is an understatement.

The proposal requires that upon the filing (by just two employees) of a notice seeking ALRB education, the ALRB regional office must determine whether a notice of intent to take access or notice to organize is on file.  If the regional office determines that no union is involved, the Concerted Activity Director must serve the notice on the employer who must, within 24 hours, provide the location of the employer’s fields, the number of employees employed at that time, and the employer’s peak seasonal employment—information that the union would find very helpful when attempting to organize workers.

Despite unanimous industry opposition, and with ardent union support, last month the ALRB voted 3-0 to move forward with the rulemaking process.  Industry lawyers are confident that the board lacks the authority to implement the proposed regulation.  In the words of the Fourth U.S. Circuit Court of Appeals, the national act “only empowers the board to carry out its statutorily defined reactive roles in addressing unfair labor practice charges and conducting representation elections upon request.” (Emphasis added.)

We believe a court reviewing the ALRB’s proposal would reach a similar result.  And like the NLRB poster challenge, there is ample evidence of pro-union bias that taints this agency.  Exhibit 1 is the board’s abject refusal to count the ballots in the Gerawan Farming workers’ decertification election despite the clear preference of the vast majority of the workers in that case.

Let’s be clear about why the ALRB is pursuing this rule: The UFW has lost its relevance.  The farmer-farmworker relationship has evolved since the 1960s and 1970s, and the UFW can no longer deliver value to farmworkers in exchange for a compulsory payment of three percent of the workers’ wages to the union.  Because of that, the UFW has failed to persuade workers to join the union.  So in a bid to remain viable, the UFW wants the state ALRB to use its police powers to do for the union what the union has failed to do for itself.

It is pathetic that the state of California so willingly steps forward, beyond its authority, to act as an agent of the union.  The ALRB was created as an investigatory and adjudicatory agency, charged with protecting the rights of employees, employers and unions alike.  Nowhere in the law is the ALRB authorized to use the powers of the state to advance the interests of unions or employers absent a properly investigated and adjudicated dispute.

In appointing Mr. Gould as chairman of the ALRB, many of us hoped and believed that Governor Jerry Brown was seeking to return the agency to its core mission and restore its independence in investigating and resolving disputes.  If the ALRB continues to push this euphemistically-named “worker education rule,” we will know that our hope was misplaced.

The industry will have to come together quickly to oppose this union-backed, government-sanctioned encroachment upon private property rights.  If the broader business community could successfully derail the NLRB’s attempted overreach with a mere poster, we can stop an initiative that is just as wrong-headed but vastly more intrusive. Western Growers stands ready to lead the charge.

New Personal Transport Carrier Regs in Effect

January 4th, 2016

A regulation approving the limited use of agricultural personnel transport carriers (PTCs) in California goes into effect January 1, 2016. General Industry Safety Orders §3441 has been amended at new subdivision (i) to create an exception for PTC use under certain circumstances.

Here is a brief summary of the new regulation:

•   Use of PTCs would be limited to employees installing, removing or maintaining irrigation pipe for low-lying row crops. No other employees are allowed to board or ride on PTCs.

•   Employees may ride in PTCs only in the furrowed area of fields while performing irrigation activities.

•   The slope of the fields where employees ride on a PTC may not exceed a 5% grade.

•   PTCs built prior to January 1, 2016, must be inspected and approved by a qualified person for structural integrity and design prior to the units being placed into service.

•   PTCs must be equipped with: 1) approved seat belts and seat cushions; 2) steps and handholds so that employees can maintain three-point contact while entering and exiting the platform; 3) a door, gate or safety chain at passenger entry/exit points. Additionally, PTCs must be equipped with an “effective and reliable” means by which passengers can communicate with the tractor operator.

•   PTCs must be constructed of steel strong enough to support anticipated loads.

•   Speed is limited to five miles per hour. Employees must exit the carrier whenever the tractor reaches the end of the row, and may reenter only after the tractor completes the turn.  Passengers are not be permitted to ride on the PTC when it is within 10 feet of a ditch, canal, retention pond, or other location that presents an overturn hazard.

•   Safety training for all employees using PTCs, including tractor operators, is required before the initial use and at least annually thereafter.

PTCs have been used for about two decades to transport workers in operations involving the installation and removal of irrigation piping, but their legality had been placed in doubt by the Division of Occupational Safety and Health (DOSH or Cal-OSHA) since 2012. In response to a consolidated petition requesting that the Board develop general safety standards related to the use of PTCs, the Standards Board convened an advisory committee last May consisting of stakeholders, including Western Growers staff, to discuss a draft proposal. The regulation now brings PTCs into the specter of compliance provided that all requirements for use are met.

For additional information or questions, please contact Jason Resnick at (949) 885-2253.

INNOVATION & TECHNOLOGY: Western Growers Celebrates Opening of Salinas Center

January 4th, 2016

By Cory Lunde and Stephanie Thara

On December 10, 2015, Western Growers President and CEO Tom Nassif and a trio of prominent past and present Western Growers chairmen were on hand to formally open the Western Growers Center for Innovation and Technology (WGCIT) housed in the Taylor Farms headquarter building in Salinas, Calif.

Attending the event were nearly 250 Western Growers members, industry partners, academia, local officials and media, as well as the inaugural group of WGCIT tenants.

Bruce Taylor, chairman and CEO of Taylor Farms, Salinas, CA, opened the ceremony with brief remarks about the new Taylor Farms building, followed by Nassif; Vic Smith, president and CEO of JV Smith Companies, Yuma, AZ; and current WG chairman Larry Cox, owner of Lawrence Cox Ranches, Brawley, CA.  Together, they addressed the origins and purposes of the WGCIT, as well as highlighted the impact that the new facility will have on the region, state, nation and beyond.

“In an era of diminishing natural and human resources and growing regulatory and marketplace demands, the future of agriculture depends on technology,” said Nassif.  “The Center will serve as a hub for the accelerated development and rapid deployment of innovative solutions to help farmers feed more people with fewer inputs.”

The idea for the WGCIT first originated in 2014 during Taylor’s tenure as Western Growers chairman.  At Taylor’s urging, the WG Board of Directors identified the need to promote creative solutions to the most pressing problems facing the industry.

“The fresh produce industry is labor intensive, requires significant inputs and faces a stringent regulatory environment.  Collectively, these challenges threaten the future viability of agriculture throughout the West,” Taylor stated.

Eventually, the WG Board of Directors coalesced around a single, unified goal: to feed more people with fewer inputs and leaving a smaller impact on the world.  But how exactly would this vision be realized?

The answer was by creating a mechanism to accelerate the development and deployment of technology.  “It is our mission to discover, to nurture and to promote innovation in the field of agriculture,” said Nassif in his remarks to the audience.

To accomplish this task, Western Growers decided to establish the WGCIT, an agricultural technology incubator aimed at bringing innovative entrepreneurs together with farmers and other agricultural companies to collaborate on bringing emerging technologies to market.

As outlined by Cox in his statements, the WGCIT will help prioritize industry needs, work with young innovators to develop and refine technologies to address these priorities, and communicate the most promising advancements to the industry and investment communities.

“We don’t have a shortage of issues facing our industry…but out of adversity comes opportunity,” said Cox.  “I don’t know what type of innovative solutions will be coming out of (the Center) but what I do know is that we have issues with fertility, saline water, labor and all kinds of diseases that need to be solved.  I’m looking forward to what our young generation’s fresh eyes and minds come up with.”

Comprising of 2,800 square feet, the WGCIT can eventually house more than 30 startup technology companies.  These tenants will have access to hot desks or work stations, both with the amenities of a traditional office, including internet and phones, printers and copiers, and meeting and conference rooms.

Additionally, these startups will have access to routine classes, workshops and networking opportunities—all designed to provide them with the business and legal knowledge and customer connections they need to bring their technology from development to production.

Representatives from most companies currently housed in the WGCIT were on hand to participate in the grand opening ceremony:

California Safe Soil recycles food from supermarkets that can no longer be sold or donated, converting it into Harvest-to-Harvest fertilizer (H2H) for use in commercial and organic fertilizer and feed and retail lawn and garden markets.

GeoVisual Analytics’ OnSight platform is an early warning and monitoring system (using aerial imagery, ground-based leaf-level photos, and expert observations) that helps improve crop yields and reduce losses by detecting problems in the field earlier and with more precision.

HeavyConnect provides growers with tools that automate and simplify many of the tasks that consume a farming manager’s day.  The cloud-based platform utilizes mobile devices to reduce the operational complexity common among successful growers.

iFoodDecisionSciences (iFood) provides flexible food safety software applications.  They have developed paperless, easy-to-use solutions for food safety data entry, reporting, and analysis for growers, harvesters, packers, shippers, and processors.

Inteligistics offers innovative cool chain temperature visibility solutions to the fresh produce industry using “Internet of Things” and “Big Data” technologies.

Concentric Power is an innovative clean energy infrastructure company dedicated to sustainable agriculture and industry.  Concentric develops onsite cogeneration facilities to deliver electric power and low temperature refrigeration from high efficiency, pre-engineered and pre-fabricated systems.

Rao Mandava, chairman and president of Inteligistics, stated that his firm is excited by “the opportunity to showcase solutions for the industry and connect with like-minded entrepreneurs in this fast-paced environment,” echoing the sentiments of other WGCIT tenants.

The work of these startup companies will be supported by a host of sponsors currently providing financial support to the WGCIT.  The contributions of supporters like Bayer CropSciences, Farm Credit, JVSmith Companies, Monsanto, Prophet North America, Taylor Farms and Toro Micro-Irrigation will help keep the costs low for current and prospective tenants.

“We have this huge need for innovation to set us forward and propel the entire industry,” said Smith during his remarks. “We aren’t getting it done individually.  This initiative is tremendous and bold, particularly because we are doing it in a cooperative and collaborative manner.”

Nasser Dean of Bayer expressed his company’s enthusiasm for the WGCIT saying, “Bayer CropSciences is proud to be an early supporter of this forward-thinking initiative.  We look forward to continuing our long, productive strategic partnership in an effort to propel farming’s future in the fresh produce industry.”

As an additional benefit, these sponsors will have the opportunity to participate in an Advisory Group that will help the WGCIT identify and prioritize key technologies and programming for tenants of the Center.

After the grand opening concluded with a technologically-savvy laser light show, Nassif invited the crowd to enjoy refreshments, mingle and tour the WGCIT and Taylor Farms headquarter facilities.

After the event, Nassif reflected on the potential significance of the WGCIT stating, “By providing resources and relationships for start-up technology companies, the Center will spur innovation and bring products to market that will reduce reliance on inputs and enhance the bottom line of Western Growers’ members.”

HIGH-TECH ANALYSIS: Using Imagery to Build a Better Crop

January 4th, 2016

(Editor’s Note: As one of the two winners of the “Shark Tank” session at the 2015 Western Growers Annual Meeting, GeoVisual Analytics won the right to have a feature article in WG&S.  The second winner will be featured in a future issue of this magazine.)

 

In several ways, Jeffrey Orrey, chief executive officer of GeoVisual Analytics, has been prepping for a business connection with agriculture for a long time.  He grew up in California’s Castro Valley in the Bay Area and got his undergraduate degree at UC Santa Barbara.  For years he was in close proximity to the fertile valleys that he is mapping today as a key element of the value proposition his company has identified for the agricultural industry.

Orrey’s route to agriculture can be mapped fairly clearly.  While getting his doctorate in physics at the University of Colorado in Boulder, he envisioned a career working with lasers and did that for a while at the university’s laser lab.  That got him involved in atmospheric work and into the field of geophysics, which is concerned with the physical processes and physical properties of the Earth and its surrounding space environment, and the use of quantitative methods for their analysis.

“I began working with a professor that was involved in the verification of nuclear tests by what was then the Soviet Union,” he said.

Orrey explained that this work, and later work he would do studying earthquakes in South America, revolved around utilizing different ways to study these impacts, such as satellite imagery and 3-D maps.  He also worked for a company that used satellite images to map New York City for the bio-terrorism unit of the police force.

These various stops along his career path gave Orrey a profound understanding of mapping and using mapping analysis to solve various problems.  In 2010, he went out on his own and put together a team under the GeoVisual Analytics moniker.  Over the past four or five years, the company has had several contracts with NASA using mapping for various projects such as one involving studying satellite imagery to detect forest fires.

Orrey said it has been the forestry work that led him and his team to consider the direct applicability to agriculture.  “We were thinking commercially and thought there was a good opportunity to utilize drone technology with mapping analysis in agriculture.”

GeoVisual became aware of the Thrive Accelerator that Western Growers co-sponsored with SVG Partners, and applied for inclusion.  “We were picked as one of the 10 finalists,” Orrey said of the program that began in early 2014.

Each of the Thrive Accelerator participants were mentored by a produce industry expert to help the research remain focused on real industry problems.  “We were mentored by Taylor Farms and now we are under contract with them,” said Orrey.

As it did with its earlier contracts with NASA, GeoVisual is using imagery to define problems, and as Orrey said “put the right resources in the right place at the right time.”

The firm has developed a software system—the OnSight platform—that can utilize any imagery—satellite, drone, aircraft, smart phone—to map a ranch or a farm.  Then through quantitative analysis identify problem areas.  He notes that there are several companies currently selling imagery and imagery analysis in the agricultural space.  “Our key piece—what sets us apart—is the ability to integrate it with information on the ground.”

He said the company’s software package allows all of this imagery to come together in the cloud and provide a fairly complete picture.  As Orrey envisions it, drone or satellite imagery can be combined with a smartphone photo taken in the field by the agronomist or PCA (pest control advisor).  The GPS capabilities of the smartphone allow those images to be married perfectly with aerial imagery.

Looking down the road, the GeoVisual CEO sees several uses for this information.  In the first place, he said a grower can have a visible digital record of what is happening in his fields at all times.  He believes this may have some regulatory applicability with regard to record keeping, but most importantly it gives the grower the potential to identify problems and fix them quickly.  He reiterated that leveraging this imagery record with on-the-ground information and people is the key to success.

GeoVisual Analytics is up and running and open for business.  Besides its headquarters office in Boulder, CO, the firm is also one of the initial tenants in the Western Growers Center for Innovation & Technology in Salinas, CA.  While much of the work in the past 18 months has revolved around developing the company’s value proposition and prototype imagery, Orrey said “we are in the process of scaling up our people and infrastructure and we can do that fairly quickly.”

He indicated that as clients come aboard, the company will be able to accommodate the extra work.  He noted that the company’s software can use imagery provided from anywhere.  If a firm is already working with a drone company mapping its fields, GeoVisual can take that imagery and plug it into its own system

As he said earlier, Orrey acknowledges that there are quite a few firms operating in the imagery and analysis space and he expects some consolidation as time goes on.  But with that said, he noted that the agricultural sector offers a lot of niche opportunities for innovators.  He suspects that firms may enter the space with a niche play and then exit by selling that piece to a larger company.

Assembly Speaker Anthony Rendon, who represents parts of Southern Los Angeles County, including Lakewood, Paramount, Lynwood and South Gate

January 4th, 2016

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

 

Anthony Rendon was elected in his first try for public office in 2012.  He served as chair of the Water, Parks and Wildlife Committee, which crafted the $7.5 billion state water bond that was passed by the electorate in November 2014.  In September, he was selected by his colleagues to the top post in his legislative body:  Speaker of the Assembly.

 

Where were you born and raised and tell us a little about your youth?

I was born and raised in Los Angeles.  My mom was a teacher’s assistant and my dad worked in the mobile home industry.  I was a terrible high school student and what you would call a late bloomer.  In my high school and neighborhood—mostly Montebello and Whittier—not too many people were going to college and it wasn’t on my radar.

After high school, I worked in factories unloading trucks during the midnight shift.  I would take the bus home in the morning and went right past the local community college.  I saw people getting off the bus and going to school and that seemed like a much better life than I had.

 

Your resume notes that you went to Cerritos Community College and then received a Bachelor’s and Master’s from Cal State Fullerton and a doctorate from UC Riverside, studying political science.  What led you down that path.?

I am a product of the low-cost, high-quality public college education system we offer here in California.  At the community college level, I had a teacher I really liked who influenced me, and then I took a great class in philosophy that exposed me to many different political philosophies.  After that, I continued to take political science classes and achieved degrees at the various levels.

 

How and why did you move into the political arena as a candidate?

After college, I entered the non-profit sector and ran several different non-profits, mostly in early child education.  In that arena, I met many elected officials and was attracted to the work they did and the impact they could have.  One of the first who influenced me was Judy Chu, who was in the Assembly at the time and is now in Congress.  I became close to her and actually managed her husband’s election campaign when he ran for her seat.

 

When you ran and were elected in the Assembly, did you have a signature issue?

One of my key issues then and still today is early childhood education.  I worked in that area for a long time and I know how important it is.  In fact, I advanced two bills on the subject, but they were vetoed by the governor.  They were both designed to make it easier for kids to qualify for these programs and for the programs to be used by the various non-profit groups.  Sometimes you have to stitch together benefits so half of the benefit comes from one agency and the other half comes from another.  I have worked in situations where you literally have to stop in the middle of the day and provide the child with a different curriculum because the money came from a different funding source.  One of my bills was designed to make this a seamless transition.

 

I know you were also very involved in the development and the passage of the water bond.  Agriculture is very interested in water storage.  Now that projects are starting to move into the funding arena, what do you think the prospects are of water storage facilities being built?

There is a couple of billion dollars in the bond for water storage purposes.  But to complete these big projects, there is going to have to be federal funding as well, and I just don’t know how that’s going to work out.  The political reality is it is going to be very difficult.  I think initially smaller, local water projects are going to be easier to get done.

I feel the same way about the Delta tunnel projects that are being talked about.  That is one of those large scale concepts that is going to be difficult to get done.  It is going to be tied up in lawsuits for a very long time.  I think smaller, localized projects will have a much better chance of success.

 

When you came into the Legislature three years ago, it was very partisan and seemingly very difficult to get across the aisle cooperation.  Has that remained the case?

When I got here, people did tell what I should expect, which was a government divided.  But things have changed.  Many of my best friends are Republicans and we do work together on many different issues.  Sure there are some ideological differences, as there should be, but there does seem to be much more bipartisan cooperation than there used to be.  We are meeting in the middle on many issues.  The Water Bond is a great example.  We got 70 votes with only two votes against it—one Democrat and one Republican.

 

Many people have pointed to the passage of the Open Primary proposition as the reason there is more cooperation, arguing that elected officials are more toward the center then they used to be.  Do you think that’s true?

I’ve heard that, but I do not know if it’s true.  I’m a political scientist and I’d like to see the data on that before I am convinced that is what is happening.  I think you’d have to look at how people vote over a five-year period or so to see if they are more moderate.

The other factor that happened at about the same time was the expansion of the term limit.  I think that has had a much bigger impact.  That has created a behavioral change because you are going to be here for a much longer period working with the same people across the aisle for as long as 12 years.  It makes sense that you try to get along and reach compromises.

 

Because of urbanization and less connection to the land, the agriculture industry believes it has lost some of the connections that were there in years gone-by.  Does agriculture have much clout in the Legislature?

Agriculture has significant clout.  When we were talking about hearings on the Water Bond, we held them all over the state.  We did that because many legislators from these rural areas and from all around the state advocated that we hear from their agricultural constituents.  We held 16 public hearings all over the state.  We were in Hanford, Modesto, Fresno and Shasta.  Members (of the Assembly) wanted us to get input from their constituents.  There is a significant amount of clout in the agricultural world.

 

You are now the Speaker of the Assembly, which is a powerful leadership position.  Do you have future political aspirations?

I have not thought about that at all.  Because of the possibility of a 12-year term, I suspect that this is where I will be for the next nine years.  I have not thought beyond that, but I suspect I will go back to the non-profit sector.  I do not expect to be a politician for my entire career.

 

Our members produce some of the finest fruits, vegetables and nuts in the world, do you consume our products and do you have a favorite?

I definitely do.  When I was a kid we had a plum tree in our yard and I used to live off those plums.  Today, I am a big fan of Korean barbecue and all the vegetable side dishes that come with it.

Moderate Democrats on the Rise in Sacramento

January 4th, 2016

By Dave Puglia

In recent years, business and industry groups have been cautiously hopeful that as Democrats ran up their numbers in the California Legislature, a moderate faction would emerge within their ranks that could help deflect at least some of the annual barrage of legislation promoted by environmental groups, trial lawyers and labor unions.  For the cautiously optimistic, 2015 marks the emergence of just such a faction.

Whether the so-called “New Democrats” impact a larger swatch of legislation this year is an open question, and for Sacramento veterans with long memories, there is even reason to worry about the longevity of this newfound moderation.

Under the leadership of Fresno-area Assemblyman Henry Perea, the New Democrats rose up in 2015 to effectively derail one of the environmental lobby’s priority measures and force them to strip the heart out of another.  Both bills dealt with climate change.

One would have doubled down on the state’s already-ambitious (and, charitably speaking, economically-questionable) mandates for reducing greenhouse gas emissions.  That bill was shelved for the year in the face of strong opposition from the moderate Democrats.  Because no Republicans would vote for the bill, the opposition of the New Democrats sealed its fate.

The second measure proposed three mandates to reduce air pollution.  The first sought to impose new “green building” rules to increase the efficiency of heating, cooling and other commercial building systems.  The second component would increase the state’s mandated production of energy from renewable sources like wind and solar (but not hydropower, which environmental groups dislike in spite of its unmatched track record of providing clean renewable power).  Finally, the legislation would require that California reduce petroleum fuel consumption for transportation by half by 2050.  It was this last provision that drew the strongest opposition from the moderate Democrats in the Assembly.

In spite of the very public support of Governor Jerry Brown and a flotilla of environmental activist groups, the bill’s author (Senate President pro tem Kevin DeLeon of Los Angeles) was forced to strip out the petroleum reduction mandate in order to avoid watching the entire measure go down in flames on the Assembly floor.  The bill ultimately passed, and was approved by the governor, without the petroleum reduction mandate.

Western Growers actively lobbied against both of these bills, which would have imposed dangerously-high energy costs on farmers and food processors.  Matthew Allen, director of California Government Affairs for WG, personally lobbied dozens of legislators as part of a large coalition of business and industry interests.

All things considered, the outcome on both bills was good news for California agriculture.  But the reality is that the cognoscenti in Sacramento defined these events as victories for the petroleum industry, not agriculture or any other energy-intensive industry.  That raises a couple of important questions for the agriculture industry.

First, will the New Democrats stand as firmly when environmental activists single out agriculture (as compared to the petroleum industry)?

Second, will the New Democrats be as courageous when it comes to job-killing legislation sponsored by labor unions?

As to the first question, the transition of leadership of the New Democrat caucus suggests that our industry will be heard.  Although the departure of Henry Perea (who retired from the Assembly a year before his final term ended) caused initial anxiety, the selection of new co-chairs of the caucus resulted in Bakersfield Assemblyman Rudy Salas taking the reins in partnership with Assemblyman Jim Cooper of Sacramento.  Salas has been a fairly reliable advocate for agriculture and Cooper has made efforts to be engaged with the industry.

The second question is more troublesome.  While the moderate Democrats have been willing to flex serious muscle, and dictate outcomes, on legislation promoted by environmental interests, there is less evidence to suggest that labor unions have cause for similar concern.  Perhaps this is because most moderate Democrats view environmental activism (espoused mostly by coastal legislators) as a direct threat to jobs and opportunity for the people they represent (in mostly inland working class districts).  While we argue that labor union-sponsored legislation, which usually undermines the competitiveness of agriculture employers, is just as threatening to jobs, most Democratic legislators—moderates included—show less temerity in backing down their labor union allies.

All of this is to say that we have much more work to do.  Realistically, we know we probably won’t see the moderate Democrats act as brakes on the agendas of environmental groups and labor unions alike.  After all, a moderate Democrat is not a Republican.  But if it is the desire to protect working-class jobs that motivates moderate Democrats to resist the job-killing agendas of the political left, we must not let labor unions off the hook when they propose legislation that is just as harmful to employers and the jobs they support as anything the environmental activists can cook up.