WG Requests Suspension on Lemons from Argentina Rule

January 12th, 2017

On December 20, 2016, USDA’s Animal and Plant Health Inspection Service (APHIS) published a final rule that will allow for the importation of fresh lemons from Argentina. In response, Tom Nassif sent a letter to President-elect Trump’s USDA transition team requesting that the incoming Administration suspend the rule, pending review of the flawed underlying science behind the decision.

“By moving forward with this proposal APHIS is placing our industry in a potentially precarious economic situation, as APHIS has failed to demonstrate to the industry that it has adhered to its commitment to safeguard the California and Arizona agricultural industry,” stated Nassif in the letter.

Click here to read the full letter. For additional information, please contact Cory Lunde at (949) 885-2264.

Nassif Congratulates Perdue on Nomination to Head USDA

January 19th, 2017

President-elect Donald Trump announced today his choice for Secretary of Agriculture, naming former Georgia Governor Sonny Perdue to the post. Following the announcement, Western Growers President and CEO Tom Nassif released this statement congratulating Governor Perdue on his nomination:

“We support the nomination of former Georgia Governor Sonny Perdue as Secretary of Agriculture and congratulate him on gaining the confidence of President-elect Trump. Over the course of Governor Perdue’s career, he has proven to be a consummate champion for agriculture and will undoubtedly serve our industry well in this capacity. We look forward to working with the Governor to develop and implement the public policy priorities of the fresh produce industry.

While the secretary’s importance to agriculture is obvious, Governor Perdue will assume the role at a particularly vital time as our country reengages in a discussion about the future of our immigration system. Reform is essential to the long-term viability of American agriculture, which is unique among industries that rely on foreign workers in that our labor needs cannot be met by domestic workers. Foreign hands will harvest our crops, either here or abroad. It is our hope that once confirmed, Governor Perdue will be a relentless advocate for immigration reform that works for agriculture and will present our case to the president, other key cabinet members and members of Congress who will be engaged in future negotiations.

Additionally, we are confident that Governor Perdue will continue the legacy of past secretaries and drive forward other agricultural priorities in areas such as trade, the farm bill, nutrition, research funding and the environment.

On behalf of the nearly 2,500 Western Growers members who collectively grow more than half of the nation’s fruits, vegetables and tree nuts, we congratulate Governor Perdue on his nomination as Secretary of Agriculture and wish him a speedy confirmation process.”

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

WG Urges Brown to Intervene in Minimum Flow Standards Proposal Process

January 19th, 2017

Western Growers delivered a letter to Governor Jerry Brown on Tuesday, urging the governor to direct the State Water Resources Control Board (Board) “to begin anew” on a proposal that would update minimum flow standards for the Lower San Joaquin River.

In the letter, Western Growers President & CEO Tom Nassif calls for a “collaborative approach” in order “to pursue legitimate and meaningful settlement discussions with all involved parties.” Nassif claimed the Board has not collaborated with or effectively engaged Western Growers’ members and other stakeholders — including water rights holders — during the public process. The letter noted that the governor himself called on the Board to pursue a collaborative approach with all stakeholders in a letter dated September 16, 2016.

Click here to see the full letter

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

California Employment Development Department Issues Notice on AB 1513 Back Pay Reporting and Contributions

January 4th, 2017

The state of California Employment Development Department issued a guidance memo for employers regarding reporting AB 1513 (piece-rate legislation) back payments and paying required contributions to EDD. 

The notice advises employers to prepare a Quarterly Contribution Return and Report of Wages (DE 9), and pay unemployment insurance, state disability insurance and employment training tax contributions, in the quarter that the back pay is paid. A Quarterly Contribution Return and Report of Wages (Continuation), DE 9C, should be prepared for the quarters in which the employees earned the back pay (and should have been paid). 

EDD Piece-rate Legislation Back Pay Notice

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

Agricultural Employers May Be Required to Provide Day of Rest

January 4th, 2017

Agricultural employers have been exempt from California Labor Code section 551 which provides that “[e]very person employed in any occupation of labor is entitled to one day’s rest therefrom in seven” and section 552 which safeguards that statutory entitlement by providing that “[n]o employer of labor shall cause his employees to work more than six days in seven.” 

However, Labor Code section 554(a) provided an exemption to the above provisions (along with others in the same Labor Code chapter) to any person employed in an agricultural occupation. Unfortunately AB 1066 amended section 554, subdivision (a), to delete that exemption.  And because AB 1066 went into effect on January 1, 2017, the exemption was arguably eliminated on January 1, 2017. Even though AB 1066 was generally understood to phase-in the reduction thresholds for the payment of overtime beginning in 2019, poor and muddled drafting of the statute may have had the unintended (or intended) effect of eliminating the day-of-rest exemption on the enactment date and not with the phase-in of the overtime threshold reductions. 

However, Labor Code Section 554 contains an exception to the rule, allowing employers to accrue rest days when “…the nature of the employment reasonably requires that the employee works seven or more consecutive days, if in each calendar month the employee receives days of rest equivalent to one day’s rest in seven…”.  Section 554(b) also provides a “hardship” exemption when the DLSE determines that “…in her or his judgment hardship will result to the employer and employees.

An exemption to the day of rest rules may be claimed in the case of “emergencies, work performed in the protection of life or property from loss or destruction, or when hours worked do not exceed 30 in any work week or six hours in any work day.”

The California Supreme Court is currently considering open questions as to the intended meanings of the day of rest provision found in sections 551 and 552. In Mendoza v. Nordstrom, Inc., the court is considering the question: what does it mean for an employer to “cause” an employee to work more than six days in seven? Does it mean to force, coerce, pressure, schedule, encourage, reward, permit, or something else?

Section 551 provides that “[e]very person employed in any occupation of labor is entitled to one day’s rest therefrom in seven.” Is the required day of rest calculated by the workweek, or is it calculated on a rolling basis for any consecutive seven-day period?

Finally, Labor Code section 556 exempts employers from providing such a day of rest “when the total hours of employment do not exceed 30 hours in any week or six hours in any one day thereof.” (Emphasis added.) The Supreme Court is deciding whether that exemption applies when an employee works less than six hours in any one day of the applicable week, or if it applies only when an employee works less than six hours in each day of the week?

Answers to these questions before the Supreme Court will help all employers, including agricultural employers, understand how to comply with the day of rest requirement.

Employers are encouraged to make seventh-day work voluntary and to encourage employees who volunteer to work on the seventh day to sign a voluntary-work acknowledgement. Below are sample forms in English and Spanish created by Rob Roy at the Ventura County Agricultural Association for your use. 

Sample 7th Day Voluntary Work Acknowledgement Form

Sample 7th Day Voluntary Work Acknowledgement Form (Spanish)

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

Irrigator Exemption Probably Safe Until 2019

January 5th, 2017

As previously reported in Spotlight, agricultural employees are now thought to be covered under the seventh-day’s rest provisions in Labor Code sections 551 and 552, as of January 1, 2017, pursuant to AB 1066. However, the irrigator exemption is probably left unchanged until January 1, 2019.

AB 1066 has caused many employers and legal practitioners to question the viability of the various ag exemptions from overtime, particularly the irrigator exemption found in Industrial Welfare Commission (IWC) Order No. 14-2001. This provision states that the overtime provisions applicable to non-exempt agricultural workers do not apply to a Wage Order 14 employee “during any week in which more than half of such employee’s working time is devoted to performing the duties of an irrigator.”

While AB 1066 is not clear when it comes to the various ag exemptions, there is a defensible position that the irrigator exemption goes away beginning with the overtime threshold phase-in provisions of the bill – 2019 for employers of 26 or more employees and in 2022 for employers with 25 or fewer employees. 

AB 1066 added section 861 to the Labor Code, which provides:

Except as set forth in Section 860 and subdivision (a) of Section 862, all other provisions of Chapter 1 (commencing with Section 500) regarding compensation for overtime work shall apply to workers in an agricultural occupation commencing January 1, 2017.”

The overtime phase-in provisions appear in the excepted sections, which take effect in 2019 (for over -25 employers, 2022 for under-26 employers), and the ten-hour work day under Wage Order 14 stays in effect until that time. AB 1066 apparently does not expressly eliminate the irrigator exemption before 2019, at the earliest, and Labor Code section 861, quoted above, does not refer to the exemptions under Order 14.

However, since irrigators are deemed “agricultural employees” as defined by the statute, the seventh-day overtime rest provisions in Labor Code section 510 (which arguably began to cover all ag employees on January 1, 2017), likely apply to irrigators as well. While irrigators likely remain exempt from daily and weekly overtime requirements at least until 2019, it is recommended that ag employers provide one day’s rest in seven to all employees, including irrigators. If that is not possible or practical, then employers are encouraged to make such work voluntary and encourage employees that do volunteer to work on the seventh day to sign a voluntary-work acknowledgement.

Below are sample forms in English and Spanish created by Rob Roy at the Ventura County Agricultural Association for your use. 

Sample 7th Day Voluntary Work Acknowledgement Form

Sample 7th Day Voluntary Work Acknowledgement Form (Spanish)

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

Asm. Gray Tells State Water Board to ‘Start Over’ on Proposed Unimpaired Water Flow Rule

January 5th, 2017

The final State Water Resources Control Board (Board) regional workshop on proposed rule changes to the Water Quality Control Plan and unimpaired flow proposals for the Delta was held yesterday in Sacramento. The proposal, which would increase unimpaired flows from the San Joaquin River by a minimum of 40 percent to aid salmon populations, is strongly opposed by Western Growers and the agriculture community, water managers, elected officials and local governments.

Assemblyman Adam Gray (D-Merced) stated strong opposition in testimony and in a detailed letter he submitted to the Board. In the letter, Gray alluded to Chairwoman Felicia Marcus’ frustration that there was a “’disconnect’ between those who wrote the proposal and those who are impacted by it.”

Gray added, “The update (issued by the State Water Resources Control Board) is full of misinformation, is not realistic, does not reflect current circumstances, and, in the words of your own staff, is significantly flawed. As we advised, it has created enormous ill will and distrust in the adversely affected communities.”

Gray continued, “There is strong and justified belief that you and your staff have not acted in good faith up to this point…Given the litany of new information provided to you during the recent public hearings, my recommendation is that you send this report back to your staff and your consultants with a directive to start over.”

Please note, the deadline for written comments has been extended until noon on Friday, March 17.  Western Growers will continue to advocate for comprehensive, common-sense solutions for issues affecting the Delta.

For more information, contact WG’s Gail Delihant at (916) 446-1435.  

Ducey Lays Out His 2017 Agenda in State of the State Address

January 11th, 2017

Governor Doug Ducey gave his third State of the State address yesterday to open the 2017 Legislative Session. Addressing both the House and Senate and their newly-elected leaders — Senate President Steve Yarbrough and Speaker Javan Mesnard — including 24 freshman legislators, Ducey laid out his plan for the year.

Much of the focus of the speech was dedicated to his plan to increase funding for public education. In terms of business issues, the governor announced the opening of a new website dedicated to reducing red tape and called on Arizona businesses to help the state find hidden job-killing regulations. He committed staff to research all of the suggestions submitted through the website with the goal of repealing 500 regulations by the end of the year. He also called on the Legislature to continue repealing onerous laws and eliminating unnecessary licensing requirements and outdated boards and commissions.

As the details of governor’s plan and the budget become available, Western Growers will continue to work to ensure that members’ interests are protected on issues that affect them.

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

USDA Delays Effective Date for Organic Import Certificates from Mexico

January 12th, 2017

The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced it is delaying the January 16, 2017, effective date for requiring import certificates on shipments of organic commodities originating in Mexico. 

A new implementation date has not been announced. USDA-AMS stated it would notify stakeholders once the new effective date has been determined. It was reported that Mexico’s SENASICA certification requirements on U.S. exports to Mexico are scheduled for some time in early 2017, possibly early April.

According the USDA, Development of a certification program dates back to October 2013, when Mexico published implementing guidelines and regulations for organic production and marketing. To help achieve equivalency of organic products, in October 2016, USDA-AMS announced the establishment of a Joint U.S.-Mexico Organic Compliance Committee to increase transparency and to strengthen monitoring and enforcement controls on organic products traded between the two countries.

The objective of the joint committee was to:

  • establish requirements for the use of import certificates in both countries that would provide verification of each shipment of organic products between the U.S. and Mexico;
  • implement pesticide residue testing in each country and share the sampling results with each other’s regulatory authorities; and
  • engage with certifiers operating in Mexico by conducting listening sessions to determine any additional training, oversight, or policy guidance needs.

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

Brown Budget Proposes $1M Fee Increase to Support New Irrigated Lands Staff

January 12th, 2017

Governor Brown’s budget proposes an increase of five new positions and $1 million for the Irrigated Lands Regulatory Program (ILRP) Waste Discharge Permit Fund.

During the budget briefing conference call with state agencies, Western Growers’ staff questioned why the $1 million increase was necessary. 

Since 2004, the governor’s budget has capped the ILRP budget at 23 positions; however, four other regions have also adopted ILRP programs, necessitating the need for a larger budget. Those regions are:

  • Colorado River (R7);
  • Santa Ana (R8);
  • San Diego (R9); and
  • San Francisco Bay (R2) 

The $1 million budget increase for the additional positions will be collected from growers in these four regions as they enroll in the ILRP. However, it should be noted that if fund runs short, an increase may be assessed on agricultural entities across all regions to cover the costs. 

The current positions are divided up by region and in the following way:

  • Central Coast (R3): 2.2 positions;
  • Central Valley (R5): 18.2 positions;
  • Los Angeles (R4):  1 position; and
  • State Water Board: 1.7 positions. 

Growers currently pay .75 cents/acre for the 23 existing positions, an amount believed to be adequate to support the positions.

WG staff will continue to participate in the Water Quality Fee meetings with Water Board staff and will work diligently during the budget process to prevent any rate increases.

For more information, contact WG’s Gail Delihant at (916) 446-1435. 

Employers Must Use New Form I-9 by January 22

January 17th, 2017

On November 14, 2016, United States Citizenship and Immigration Services (“USCIS”) released a revised Employment Eligibility Verification Form I-9 for employer use. Employers must use the updated Form I-9 starting no later than Sunday, January 22, 2017.    

Among the changes in the new version, Section 1 asks for “other last names used” rather than “other names used,” and streamlines certification for certain foreign nationals. Other changes include the addition of prompts to ensure information is entered correctly; the ability to enter multiple preparers and translators; a dedicated area for including additional information rather than having to add it in the margins; and a supplemental page for the preparer/translator. The revised form does not change an employer’s obligation to collect or retain Form I-9s.

The revised Form I-9 is allegedly easier to complete on a computer, though early adopters report that the interface has some bugs. Enhancements include drop-down lists and calendars for filling in dates, on-screen instructions for each field, easy access to the full instructions, and an option to clear the form and start over. When the employer prints the completed form, a quick response (QR) code is automatically generated, which can be read by most QR readers.

Employers may download the updated Form I-9 (revision dated 11/14/2016) from the USCIS website.

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

Western Growers Comments on PMA/United Ethical Charter

January 17th, 2017

The Produce Marketing Association and United Fresh Produce Association Joint Committee on Responsible Labor Practices, has published a proposed “Ethical Charter.” The committee is seeking public feedback on the draft Ethical Charter, which purports to “provide a framework for demonstrating and driving responsible labor practices across the global fresh produce and floral supply chains.”

Western Growers submitted the following comment to the Joint Committee:

As you know, Western Growers’ members based in California, Arizona and Colorado already adhere to some of the strictest state labor protection laws in the country. Moreover, our members care very much about the wellness, respect and safety of the workers who help produce the majority of the fresh fruit, vegetables and tree nuts grown in the country. To that end, our members already comply with the Ethical Charter without having to make changes to their operations or the manner in which they treat their workers. In our view, the Ethical Charter is clear, comprehensive and uses appropriate standards. All members of the fresh produce and flower supply chain, including the buyers, should be doing these things already.

We are concerned, however, with how the Ethical Charter may be used by some in the buying community. Specifically, it appears that the Joint Committee’s initial goal of leading the industry to a single auditable standard has gone by the wayside due to a lack of consensus by the buyer representatives on the committee. Western Growers does not believe there should be any audits conducted by produce buyers into the business operations of their produce suppliers absent reasonable cause to question the compliance of the producer’s labor practices. However, a single audit is certainly preferable to a proliferation of buyer initiated audits, and resultant audit fatigue, such as we have seen in the context of food safety. If some buyers end up requiring their suppliers to adhere to the Ethical Charter plus additional, individual buyer-initiated requirements, then the committee’s efforts will be deemed by industry to be a failure.  We encourage the committee to do what it can, if anything, to avoid such a result.

Western Growers members are encouraged to review the Charter and submit comments to the Committee here and also to forward those comments to Western Growers’ Jason Resnick.

Please direct any questions to Jason at (949) 885-2253.

Contingency in Place for Possible US/Mexico Border Protest Disruption

January 19th, 2017

The Secretary of Treasury in Mexico (SAT) has implemented a contingency plan in the event protesters block ports of entry between Mexico and the United States.

Information has circulated that various groups may block the ports tomorrow to protest President-elect Donald Trump’s swearing-in. 

Mexican border agents will work overtime tomorrow, and will work extended hours on Saturday and Sunday in case cargo crossings get affected. U.S. Customs and Border Patrol have not issued any notices about overtime activities.

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

Trump Executive Order Prompts USDA to Issue 60-day Stay on Importation of Lemons from Argentina

January 24th, 2017

Following a Trump White House directive signed on January 20, 2017, the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is issuing a 60-day stay on its final rule to allow the importation of fresh lemon fruit from northwest Argentina into the continental United States.

The final rule was promulgated on December 23, 2016. The stay commenced on January 23, 2017, after it was published in the Federal Register.

Western Growers previously sent a letter to the Trump Transition Team requesting a delay in the implementation of the final rule. 

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

Governor Urged to Intervene in State Water Board Minimum Flow Standards Proposal Process

January 18th, 2017

IRVINE, Calif., (January 18, 2017) — In a letter delivered to California Governor Jerry Brown yesterday, Western Growers President and CEO Tom Nassif urged the governor to direct the State Water Resources Control Board (Board) “to begin anew” on a proposal that would update minimum flow standards for the Lower San Joaquin River, calling for a “collaborative approach” in order “to pursue legitimate and meaningful settlement discussions with all involved parties.”

Nassif claimed the Board has not collaborated with or effectively engaged Western Growers’ members and other stakeholders — including water rights holders — during the public process. The letter noted that the governor himself called on the Board to pursue a collaborative approach with all stakeholders in a letter dated September 16, 2016.

Nassif cited a letter Assemblymember Adam Gray (D-Merced) provided to the Board on January 4, 2017, in which he said that the proposal “has created enormous ill will and distrust in the adversely affected communities.” In the same letter, Gray said that the update “is full of misinformation, is not realistic, does not reflect current circumstances, and… is significantly flawed.”  

Nassif’s letter acknowledged that delaying implementation of the draft proposal “may be costly, but I assure you that hastily enacting this ill-advised, poorly-informed and one-sided proposal will result in far greater long term damage, both for the Delta ecosystem and rural San Joaquin Valley communities.”

Text of the full letter:

January 17, 2017

 

The Honorable Edmund G. Brown, Jr.

Governor

State of California

State Capitol, Suite 1173

Sacramento, CA 95814

 

Re: Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary and the recirculated draft revised Substitute Environmental Document

Dear Governor Brown,

Recent public hearings held by the State Water Resources Control Board (Board) on a staff proposal to update minimum flow standards for the Lower San Joaquin River elevated very serious problems surrounding this endeavor.

You issued a pragmatic September 2016 letter to Chairwoman Felicia Marcus calling on the Board to pursue a collaborative approach inclusive of all stakeholders, including water rights holders. However, our members have not been engaged in any collaborative process. Rather, as Assemblymember Adam Gray wrote in his recent letter to the Board, the draft proposal “has created enormous ill will and distrust in the adversely affected communities.”

Assemblymember Gray goes further, writing that the update “is full of misinformation, is not realistic, does not reflect current circumstances, and… is significantly flawed.” We completely agree.

Indeed, in its current form, the draft proposal invites court challenges by the Turlock, Modesto and Merced Irrigation Districts, puts the Sustainable Groundwater Management Act process in jeopardy, fails to address non-flow stressors (e.g. predation, invasive species) and abandons the “faster, less contentious, and more durable” voluntary agreements you asked the Board and staff to implement in your September 2016 letter.

Even after receiving substantial and credible evidence that should trigger major revisions to the 3,000-page proposal, the Board inexplicably refrained from giving staff any kind of direction other than to ask for more information. I suggest, at the most elementary level, that the affected irrigation and municipal water districts should play a major role in the process and have the opportunity to provide direct and significant input in making needed revisions if the environmental and economic benefits of any settlement are to be fully realized.

Even though the deadline for written comment has been extended until March 17, 2017, I ask that you immediately urge the Board to begin anew on this proposal with the directive to pursue legitimate and meaningful settlement discussions with all involved parties. I agree with your September 2016 letter that delay may be costly, but I assure you that hastily enacting this ill-advised, poorly-informed and one-sided proposal will result in far greater long term damage, both for the Delta ecosystem and rural San Joaquin Valley communities. Let’s invest a little more time, and a lot more collaboration, to get this right.

Sincerely,

Tom Nassif

President and CEO

Western Growers

cc:           Felicia Marcus, Chair, State Water Resources Control Board

                Mark Cowin, Director, California Department of Water Resources

                Matt Rodriguez, Secretary, California Environmental Protection Agency

 

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California and Colorado. Our members and their workers provide half the nation’s fresh fruits, vegetables and tree nuts, including nearly half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

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Western Growers Statement on Perdue Being Named USDA Secretary Nominee

January 19th, 2017

IRVINE, Calif., (January 19, 2017) — In response to President–elect Donald J. Trump naming Sonny Perdue as the nominee to head the Department of Agriculture, Western Growers President and CEO Tom Nassif issued the following statement:

“We support the nomination of former Georgia Governor Sonny Perdue as Secretary of Agriculture and congratulate him on gaining the confidence of President-elect Trump. Over the course of Governor Perdue’s career, he has proven to be a consummate champion for agriculture and will undoubtedly serve our industry well in this capacity. We look forward to working with the Governor to develop and implement the public policy priorities of the fresh produce industry.

While the secretary’s importance to agriculture is obvious, Governor Perdue will assume the role at a particularly vital time as our country reengages in a discussion about the future of our immigration system. Reform is essential to the long-term viability of American agriculture, which is unique among industries that rely on foreign workers in that our labor needs cannot be met by domestic workers. Foreign hands will harvest our crops, either here or abroad. It is our hope that once confirmed, Governor Perdue will be a relentless advocate for immigration reform that works for agriculture and will present our case to the president, other key cabinet members and members of Congress who will be engaged in future negotiations.

Additionally, we are confident that Governor Perdue will continue the legacy of past secretaries and drive forward other agricultural priorities in areas such as trade, the farm bill, nutrition, research funding and the environment.

On behalf of the nearly 2,500 Western Growers members who collectively grow more than half of the nation’s fruits, vegetables and tree nuts, we congratulate Governor Perdue on his nomination as Secretary of Agriculture and wish him a speedy confirmation process.”

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California and Colorado. Our members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including nearly half of America’s fresh organic produce. Some members also farm throughout the U.S. and in other countries so people have year-round access to nutritious food. For generations, we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

Western Growers Center for Innovation & Technology Celebrates One Year of AgTech Success

January 19th, 2017

IRVINE, Calif., (January 18, 2017) — Today, the Western Growers’ Center for Innovation & Technology® (WGCIT) celebrates its one-year anniversary as a premier technology incubator aimed at bringing entrepreneurs together with farmers to develop innovative solutions to the biggest challenges facing agriculture.

The WGCIT first opened its doors on December 10, 2015, with six agricultural technology (agtech) start-up companies. In just one year, it has transformed into a hub of collaboration and innovation, now housing 27 startups. Western Growers officially honors the one-year anniversary today with an “open house” at the WGCIT in Salinas, Calif. The event features entrepreneurs collaborating with farmers on current and future technologies, as well as leaders from the agricultural industry and the City of Salinas speaking about the development of agtech and networking with agtech innovators.

“We are proud of the achievements we, and our startups, have accomplished thus far and have found our footing to create a solid foundation for the Center,” said Hank Giclas, Western Growers Senior Vice President, Strategic Planning, Science & Technology. In its first year, the WGCIT has quickly influenced the future of agtech development. The Western Growers Center for Innovation & Technology:

  • Launched arguably the first scholarship program of its kind, providing scholarship winners with residence at one of the country’s premier agtech incubators designed to assist start-up companies who are developing agricultural technologies.
  • Developed an initiative with Trace Genomics (one of WGCIT’s residents) to launch a Soil Microbial Health Initiative, assisting farmers in understanding how soil biology is a key factor in crop productivity, disease susceptibility and crop quality.
  • Created a partnership with SWIIM (one of WGCIT’s residents) to help farmers conserve more water and simultaneously earn money for the water they do not use.
  • Crafted a program of regular classes and workshops to help startups bring their technology from development to production.
  • Assisted and provided resources to help the agtech start-up companies housed in the WGCIT develop new technologies, including HeavyConnect’s Pesticide Use Reporting tool, iFood Decision Sciences’ data management app called “The Toolbox,” and more.

With the first year under its belt, the WGCIT plans to further agtech excellence throughout the local community, state, nation and industry.

“During this first year, the Center has grown organically and going forward we are going to take a more solutions-orientated role,” said Giclas. “We have engaged Dennis Donohue, former Mayor of the City of Salinas, and under his leadership we plan to zero in and seek out agtech startups who are developing technologies that solve the industry’s most immediate needs.”

This new solutions-oriented approach includes hosting short sessions that highlight specific technologies that solve targeted industry needs; connecting with other incubators and accelerators; solidifying ties with academia; and more formalized trials and beta testing with the Western Growers community. Key targets include solutions to issues surrounding water quantity and quality, technologies that focus on mechanization to provide relief to labor challenges and food safety innovations.

For local media, the one-year celebration begins at 4:00 p.m. PST at the Center for Innovation & Technology: 150 Main Street, Suite 130, Salinas, CA 93901.

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California and Colorado. Our members and their workers provide half the nation’s fresh fruits, vegetables and tree nuts, including nearly half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook.

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The Impacts of the Election in Arizona and Projections for 2017

January 18th, 2017

The only poll that matters is the one taken on Election Day when voters go to the polls and cast their votes.  This was especially true this year.  Nationally, the presidential election certainly proved the pollsters wrong.  In Arizona, pollsters also got it wrong.  All of the hype that Arizona was turning blue was laid to rest on November 8.  As the votes came in, Donald Trump won Arizona rather handily and the Republicans maintained solid majorities in the Legislature.  In fact, Republicans managed to maintain control of all of the statewide elected offices that were up for grabs.  Republicans swept the Corporation Commission races and Sen. John McCain defeated Congresswoman Ann Kirkpatrick.  The balance of the congressional seats also stayed the same.

In the legislative races, Democrats gained in one district, but lost in another to make it a net zero gain for either party.  However, it is noteworthy that the two Democrat gains were in Maricopa County, a very urbanized area.  Republicans picked up their seats in rural districts that currently maintain a Democrat registration advantage.  While the changing dynamics of the voting population in Arizona could certainly shift the politics of the state to the left in the near future, it didn’t happen in 2016.

Though the majorities didn’t change in the Arizona Legislature, the faces occupying many of those seats did.  Term limits have given us a larger-than-normal crop of new legislators on both sides of the aisle.  Further, with the speaker being termed out and Senate President Andy Biggs’ election to Congress, both the House and the Senate will start the New Year with new leaders.  Speaker J.D. Mesnard hails from Chandler.  Mesnard, in his mid-30s, is very young compared to his predecessor.  He also admits that he doesn’t know much about agriculture.  To his credit, one of his first moves was to appoint Rep. TJ Shope to serve as speaker pro tem, acknowledging that the chamber needed someone in leadership who understood agriculture and the rural areas of the state.

Newly-elected Senate President Steve Yarbrough has been around the Legislature for quite some time and he also comes from a suburb in east Phoenix.  While Yarbrough isn’t from an ag district, he was the sponsor of a Western Growers bill a few years ago to change an Arizona statute to make it easier for growers to donate crops to food banks across the state.

Though the politics in Arizona didn’t shift much through this election cycle, the labor laws in Arizona were changed dramatically as a result of Proposition 206.  With its passage, Arizona’s minimum wage rose to $10 per hour on January 1, 2017, and will hit $12 per hour in 2020.  The biggest impact might be the mandated sick leave provisions that will go into effect this summer.  Unfortunately, the business community in Arizona was unable to coordinate a successful “no” campaign and the impacts of the new law could cause budget issues in public school districts across the state.  In addition, state contractors are asking for increases to comply with the new law.  These additional cost burdens on the state may give way to a lawsuit challenging the validity of the new wage law, as Arizona requires any initiative that causes the state to expend additional revenues to provide a specific funding source.  It remains to be seen if and when a lawsuit will be filed and to what extent it will prevail in rolling back these new mandates.  (After this article was written, a lawsuit was filed but rejected by the Arizona Supreme Court.  The new minimum wage has gone into effect.)

Looking forward to the legislative session, the state has ample revenue projections.  The days of massive cuts to government services should be history for now.  There will be a lot of different interests vying for a piece of the additional general funds: state agencies, roads, and education among them.  With the positive economic outlook and Governor Ducey’s campaign promise, it’s likely there will be additional tax cuts enacted as well.

Change always presents opportunities, and WG is working to educate all of the newly-elected legislators from both sides of the aisle on the importance of the agriculture industry in Arizona and its $17 billion economic impact to the state.

SAMMY DUDA: Ag Work Is All He Ever Wanted to Do

January 18th, 2017

t was not necessarily ordained that Sammy Duda would join the family business when he came of age, “but to be honest, I don’t think I ever thought about doing anything else.  I have such great memories and experiences growing up in the business and interacting with employees and other family members, it is what I always thought I would do.”

The Duda family business dates back 90 years as Sammy’s great grandfather started the agricultural company in 1926 in Florida…at about the same time that the Western Growers Protective Association was getting off the ground on the other side of the country.  Andrew Duda had emigrated to the United States, and specifically Florida, in 1909, with his wife and three sons.  In 1926, he and those three sons—John, Andrew Jr. and Ferdinand—harvested their first crop of celery from 10 acres of land near Oviedo, outside of Orlando,  and launched the firm.

The three sons, which the Duda family refers to as the “Three Seniors,” were the “architects of A. Duda & Sons,” according to Sammy, who is a grandson of John.  “My great-grandfather died in 1956.  I never actually met him.  His three sons all had different skill sets and took care of different parts of the business.”  John was involved in operations while Andrew was the sales and marketing guy and Ferdinand was the farmer.

While the three were the architects of the family business they were also prolific architects of the family tree.  “My grandfather had three sons.  Those three sons produced 14 offspring in my dad’s generation.  All eight men and some of the son-in-laws joined the company.  The 14 produced 44 in the fourth generation, which is my generation.  In the 5th generation, there are more than a 100 and still counting.”  There are currently 132 shareholders of the 100 percent family-owned business

The three seniors produced more than a lot of kids and a farming company.  They built a very diversified company.  Sammy explains that today there are four pillars, or business entities, of the family firm.

There is Duda Farm Fresh Foods, the family’s produce operation and where Sammy serves as vice president.  That entity grows many different crops with celery being its signature item.  But it also grows and markets many other vegetables and fresh citrus.

Duda Ranches is the farming entity involved in several other crops including juice oranges, sugar cane and turf grasses.

The Viera Company is the third entity, which runs the cattle ranch as well as the master-planned community of Viera in Brevard County, Florida.  That company builds between 300 and 400 homes a year and manages the community, which includes the infrastructure.

The 4th pillar is the commercial real estate entity.  Sammy Duda said that A. Duda & Sons, like most large farming operations, is necessarily a real estate company as well.  There is a lot of commercial property owned by the company, which must be bought, sold and managed.

As mentioned earlier, there are a lot of people in the family tree, but there are also lots of jobs.  You don’t have to be an agriculturalist to work for the firm.  Sammy said the company employs people in basically every discipline so no matter what you want to do when you grow up, you can do it for A. Duda & Sons.  However, he did note that as a practical matter, now a majority of the family shareholders are not working within the company.

Sammy’s entry into the firm took a fairly direct route, though he briefly entertained a baseball career while in college.  Sammy was an excellent high school baseball player, who started his college career at the University of Florida not playing baseball.  But he missed the sport so he went back to junior college, put up some good numbers and got recruited by Mississippi State.  The school had a good baseball team and an excellent ag school so he moved to Mississippi.  While majoring in ag economics, Sammy was fortunate enough to play alongside several eventual Major League all-stars (Will Clark, Rafael Palmeiro, Bobby Thigpen, Jeff Brantley) and played in the College World Series.  He was very realistic about his own baseball talents and after college came back to Florida to join the family business.

He entered Duda’s rotational program in which he spent the next year moving around various facets of the company for two to three months at a time.  “During that time you were expected to find an area of interest and I did.”

Like his grandfather before him, Sammy enjoyed the operations end of the business.  So after the initial rotation year, he moved to McAllen, Texas, and joined Duda’s vegetable operations.  He remained in the Rio Grande Valley in Texas until 1992, when he moved to Yuma, AZ, to be part of Duda’s burgeoning West Coast vegetable program under the tutelage of Bob Gray.  For the next four years, he split his time between Yuma and Salinas, as production shifted from one area to the next.

“My wife, Amy, and I permanently moved to the Salinas area in 1996 and we’ve been here ever since,” he said, noting that the couple has a pretty impressive memento from each of his major Duda stops.  “We had three kids in three and a half years in three different locations.  Mary Beth, who is 25, was born in McAllen; Samantha, who is 23, was born in Yuma; and Jackson, who is 21, was born in Monterey.”

His two older kids graduated from college and are now living and working in Seattle, and his youngest is an ag economics major at the University of Arizona.  Sammy has no expectations that they will join the company firm but the opportunity is there.  “Either way, I think it is great they go out on their own and do something else first.  I didn’t do that, but I do think it’s a good idea.”

Though born in Florida and cutting his produce eyeteeth in Texas, Sammy is very happy to have landed on the West Coast.  “I don’t want to slight Florida or Texas but, to use a baseball analogy, California is the Major Leagues.  It didn’t take much convincing to move out here.”

He said the top vegetable companies in the country are in California, most of which are headquartered in the Salinas Valley.  “The clout and stature that exists in this community is beyond compare,” he said.

He added that the innovation that takes place on the West Coast is also top notch and, to his thinking, it is the epicenter of the vegetable supply business.  For many years, and even to this day, he enjoys the challenge of living up to the standards set in the community.  “I had to prove if I was any good.  Am I legitimate?  This is where you have to do it.”

Duda believes that the competition makes every company better, and makes the individuals strive for the top.  When he was in Yuma, and ensconced in operations, he still made the time to go to the Produce Marketing Association conventions in Anaheim and San Diego to learn more about the business.  Marketing wasn’t his responsibility, but he wanted to be more well-rounded and have a more complete produce education.  He believes it was time very well spent.

He has changed positions and moved up the ladder attaining his current slot in 2010 as vice president and general manager of western vegetable operations for Duda Farm Fresh Foods as well as a corporate vice president for A. Duda & Sons.  His duties also include oversight for the specialty citrus operation in Visalia, California.  He also serves on the board of the company as one of the six family members—two from each of the three branches of the family—on the 10-member board.  The position is a one-year term and is an elected post.  He has sat on that board since 2011, being elected each year by his branch of the family, which are the descendants of John Duda.  Sammy said the majority of the shareholders are no longer employees of the company so the position on the board requires representing the interests of all family members, whether they are directly involved in agriculture or not.  He considers it an honor to be elected each year, and said it is not a rubber stamp election.  “Last year five of us ran for the two positions (representing the “John” branch).”

When Sammy talks about Duda Farm Fresh Foods, he leads with the company’s main crop.  Celery was first grown by his great grandfather more than 90 years ago and it is still the firm’s signature crop.  The Salinas operation manages about 11,000 acres of vegetables in six states with celery being the top volume item.  “We employ three full-time Ph.D.s working on new varieties.  We have 30 patented varieties and more celery germplasm than any company in the world.  We consider ourselves the world leader in celery.”

The company also produces a fair amount of iceberg lettuce, romaine, leafy green items, broccoli, cauliflower and other assorted vegetable crops.  In its citrus operation it has Meyer lemons, regular lemons, and mandarins, as well as navel oranges.

Duda the firm got involved in Western Growers as a way of paying its respects to the West Coast produce establishment.  “I got involved through Bob Gray in the late 1990s when he was involved and serving on the board and as an officer.  It has always been important to Duda to be involved and part of the industry.”

He said the Western Growers board has long been populated with the leaders of the western produce industry, and as such it was very important for Duda to be involved in the organization.

As the leader of the organization for the next year, he is encouraging continued innovation at the Western Growers Center for Innovation & Technology.  Duda said that while it will always be important for Western Growers to remain active in the regulatory and legislative environment that means so much to the business, he sees new innovation as the way to thrive in the future.  “Those other issues are not going away but to remain competitive, we need to innovate and modernize.  We are not one of those businesses looking for disruptive change.  We need incremental change.”

He said over-regulation is a problem and he is hopeful for some regulatory fixes that can help minimize the burden of doing business, especially in California.  But to keep pace with rising costs across the board, Sammy Duda believes technology is the answer.  He believes Western Growers has taken an important step with the innovation center and he wants to see the industry embrace that effort.

Sailing His Way to California

January 18th, 2017

California Director Profile

Kevin Murphy

CEO

Driscoll’s

Member Since 1972  |  Board Member Since November, 2016

 

BACKGROUND:  Kevin Murphy was born in South Africa in 1962.  His family was in the farming business when he was growing up, mostly involved in timber.  He went to the University of Natal, which he said is similar to U.C. Davis with an agricultural focus.  (The university has since merged with other South African institutions and is now called the University of KwaZulu-Natal.)  Kevin received his undergraduate degree in ag economics and then was promptly drafted into the South African Army.

 

GROWING UP DURING TUMULTUOUS TIMES:  Kevin Murphy grew up in South Africa during very interesting times to say the least.  It was in the 1970s and ‘80s when South Africa’s racial segregation system of apartheid was largely criticized worldwide.  Sanctions were enacted and condemnation continued to grow.  As the situation intensified in the ‘80s, Murphy was in college and then in the military.  After that he went on a three-year journey around the world and moved to California around 1990 when apartheid began to be dismantled.  He in fact, was in California when the system officially ended in 1994.

While living in South Africa as a kid and even through college, Murphy said he was somewhat insulated from the issues.  But he did note that those were difficult times.  The sanctions imposed by much of the world were having an impact and there was world pressure to change.  As time went on, there was much unrest and violence in South African.  While the University of Natal was technically integrated and quite progressive in those times with regard to educating and graduating Black Africans, Murphy said there was not much integration.  The system had different campuses and his campus was not integrated as far as he remembers.  When he served in the Army in the mid-1980s he was exposed to the rancor and saw it from a different viewpoint.  “Those were tumultuous times and seeing it as a member of the Army was very interesting and let’s just leave it at that.”

But when he left South Africa and began traveling around the world, Murphy was exposed to many different viewpoints.  “As I traveled a bit, the absolute unsustainability of it (apartheid) became more clear.  I was exposed to different perspectives and it was clear that the human logic of it all was very much flawed.”

As he has moved through his career, and especially in those early years when apartheid was under fire and his South African accent was more evident than it is today, Murphy was asked about the subject quite a bit and did have to speak to it.  Toward this end, he said it helped being in the ag business in the United States.  “Ag people are open and friendly and pretty straight up.” He encountered questions, but was rarely put on the defensive.

 

A GREAT ADVENTURE: By the time he was out of the Army and looking for work, his family’s farming operation had been sold and Kevin had wanderlust.  So he decided to see a bit of the world.

As a young man, in his early 20s, Kevin signed up to work on a sail boat and took off from Cape Town.  The boat sailed around South America and up into North America.  That was the beginning of a three-year odyssey that had Kevin seeing a good portion of the world.  “I didn’t quite get around the world, but I saw a lot of great places.”  He supported this lifestyle by being a crew member on a number of ships that flew many different flags.  It was, in fact, this adventure that led Murphy to his wife and ultimately to California’s Salad Bowl.

“I ended up meeting a gal and we became a pair.  We made our way back to South Africa and eventually got married and moved to California.”

 

AN AG CAREER IS HATCHED:  Kevin’s wife, Mary, grew up in Seattle with a family connection to a frozen food company.  But by the time Kevin met her, she had been living in Santa Cruz, California, which is where Kevin and Mary came back to after leaving South Africa in the late 1980s.  It was here that Kevin began looking for work in an attempt to utilize his ag economics degree and agricultural background.  He ended up at Bruce Church, which soon became Fresh Express.  For the next 15 years—from 1989 to 2004—Murphy had a front row seat during the packaged salad revolution.  At Fresh Express, he held a variety of management positions in virtually every discipline.  He spent significant time in farming and operations and also was in charge of the human resources department for a while.  “I saw the company grow from basically zero to a billion dollar business.”

He stayed through the first sale of Fresh Express, but left shortly after it was sold to Chiquita.

During that time however, he did manage to earn an MBA from Edinburgh Business School at Heriot Watts University, Edinburgh, Scotland, through a distant learning program in 1999.

 

THE NEXT CHALLENGE: After being involved with one of the fastest growing companies and products the produce industry has ever seen, Murphy embarked on a totally different challenge after he left Fresh Express.  He soon joined Capurro Farms, a family-owned business, headquartered in Moss Landing, California.  Murphy was brought in as president in an effort to bring in some outside leadership.  He stayed with Capurro for several years, helping to transition the family operation into an attractive merger partner.  Eventually, Capurro did merge with Growers Express.  By that time however, Murphy had moved on to Driscoll’s.

He has now been with Driscoll’s for almost a decade, serving in a variety of senior management positions before being named CEO two years ago.  He has managed operations, including the nursery end of the business, and was also very involved in the global strategy that the firm embarked on aggressively over the last handful of years.  In fact, he was president of the global business unit and then COO, before taking the CEO position when Miles Reiter stepped back a couple of years ago.

 

A CAREER PATH: While Murphy’s career path appears to have traveled a fairly straight line from management, then senior management positions to a CEO slot, he said that was never his ultimate goal.  “I never looked at it that way.  I was not positioning myself to become a CEO.  I just have looked for interesting opportunities that have new challenges.”

He said the opportunity at Driscoll’s made great sense to him after spending the first portion of his career on the vegetable side of the ledger.  He called Driscoll’s a “dynamic company” that is doubling its size about every five years.  He finds the international involvement intriguing and notes that the current push to expand the company’s operations in Asia is very rewarding.  “We now have operations in 26 countries and sell in 60 countries.  The opportunities are very exciting.”

Closer to home, Murphy said the challenges of navigating increasing regulations, including an expanding minimum wage, are robust and require diligent attention and new strategies.

 

THE FAMILY LIFE: Kevin and Mary have two kids in their 20s—daughter Hala and son Sean—both of whom have graduated from college and followed in their parents’ footsteps a bit.  Currently, they are each traveling, as their college graduation gifts were round trip tickets to anywhere they wanted to go.  Murphy said traveling before he began his career was life altering and he wants his kids to have that same opportunity.

Kevin and Mary are just settling into empty-nesting.  He enjoys golf, they enjoy hiking and Mary is very involved in a number of charitable ventures.  She specifically works with Driscoll’s philanthropy program and is also very involved in working with the homeless population in Monterey County.