WG Continues to Oppose Isadore Hall’s ALRB Appointment

March 2nd, 2017

Opposing the appointment of former state Senator Isadore Hall to the Agricultural Labor Relations Board (ALRB), Western Growers has sent a letter to Governor Brown, penned an op-ed in the Sac Bee and testified against the appointment. Hall is a staunch UFW ally.

Last week, the Sacramento Bee published an op-ed by Western Growers President and CEO Tom Nassif, California Fresh Fruit Association President George Radanovich and California Citrus Mutual President Joel Nelsen criticizing the Brown administration for its appointment of Hall. Western Growers and industry partner also sent a letter to the governor stressing the importance of consulting with the ag industry before making such crucial appointments.

Yesterday, the Senate Rules Committee heard from Hall as well as witnesses both in support and opposed to his appointment. Western Growers’ director of California government affairs, Matthew Allen, testified in opposition, as did George Radanovich of the California Fresh Fruit Association.

“I’d like to highlight an additional factor that causes concern for our members and it goes right to the heart of the ability for the ALRB to be a fair and balanced adjudicatory body,” said Allen during his testimony.

Despite the opposition from farmers, the Senate Rules Committee approved the appointment of Hall with a 3-0 vote. Now, his appointment is subject to state Senate confirmation. 

To watch the testimony during the Senate Rules Committee, click here. The video is labeled “Senate Rules Committee, Wednesday, March 1st, 2017” and Allen’s testimony begins at 1:08.

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

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2017 March Board Meeting Concludes Thursday

March 16th, 2017

Chairman Sammy Duda, Duda Farm Fresh Foods, concluded the 2017 March Board Meeting in Sacramento, California, Thursday afternoon. During the three-day meeting, the 44-member board engaged with key state officials – including Governor Jerry Brown and California Department of Agriculture Secretary Karen Ross – on critical industry issues and deliberated Western Growers’ public policy priorities.

The following is a summary of the major issues discussed during the committee meetings and addressed by the full board:

Legislative: The Legislative Committee was briefed on federal and state legislation impacting agriculture and the business community. At the federal level, Western Growers’ priorities include blocking E-Verify until immigration reform is achieved and securing funding for the recently-passed federal water bill. Additionally, Western Growers will remain engaged with the Administration and Congress on trade policy, tax reform, Endangered Species Act reform, Affordable Care Act repeal and replacement and the Water of the United States rule.

In Arizona, Western Growers is supporting several bills currently in the state legislature, including legislation that would allow landowners to retain ag property tax status if there is a reduction in their water deliveries and they choose to temporarily fallow the land; and provide funding to the Arizona Department of Agriculture Plant Services Division to compensate for a loss of federal funds.

In California, Western Growers is directing its efforts on a range of bills, including those related to air quality, renewable energy, employment hiring practices, universal single-payer health care and the nitrate drinking water issue. 

Food Safety/Science & Technology (FSST): The FSST Committee held a conversation on “data-driven agriculture” and how Western Growers can help its members both identify best-in-class technology providers and use this technology to tell positive stories about their improvements in efficiency and performance based on quantitative data. It was noted that data is crucial to helping protect the social license of farmers to continue irrigating and fertilizing their fields.

The FSST Committee also discussed the Western Growers Center for Innovation and Technology, which has grown to over 30 startups since its opening in December 2015 and generated a high level of interest from investors, academia, government, startups and the industry. Now in its second year, the Center is shifting from its early organic growth strategy to a more focused, solutions-oriented approach to soliciting future technology providers and residents. Western Growers will continue to develop its network of growers engaged with the Center to pilot and mentor startups.

Other topics presented to the FSST Committee included updates on the Center for Produce Safety research and findings and the ongoing efforts to synchronize the Leafy Greens Marketing Agreement metrics and audits with the Food Safety Modernization Act.

Labor: At the federal level, the Labor Committee received updates on President Trump’s executive orders on immigration and their potential impacts on agriculture, as well as Western Growers’ efforts to educate its members on how to prepare for potential increased enforcement activities. The Labor Committee was also briefed on current efforts to modernize the H-2A program to make it more responsive to industry needs.

At the state level, the Labor Committee discussed the recently-enacted minimum wage increases in both Arizona and California, as well as the phase-out of agricultural overtime in California, including the uncertainties surrounding the 7th day of rest and irrigator exemptions.

The Labor Committee was also briefed on the industry opposition to the appointment of former state Senator Isadore Hall to the Agricultural Labor Relations Board (ALRB), Western Growers support for two court cases that challenge aspects of AB 1513’s safe harbor rules, and the latest activities of the PMA/United Joint Committee on Responsible Labor Practices, which is set to reconvene in April.

International Trade (IT): The IT Committee reviewed President Trump’s proposal to renegotiate NAFTA and provided direction on which provisions should be retained and what additional policies should be pursued, including those addressing border delays, Mexican subsidies and pesticide tolerances. The implications of other Trump Administration trade priorities, including the proposed border tax, were also discussed.

Water: Representatives from the Metropolitan Water District, San Luis Delta-Mendota Water Authority, Kern Water District, Friant Water Authority, the Exchange Contractors Water Authority and the Northern California Water Association joined the Water Committee in a roundtable discussion on the future of water supply in California. Topics such as the California Water Fix, biological opinions and the evolving science around the Delta, dam operations and flood control, development of water infrastructure projects, water rights and water conservation were all covered during the panel conversation.

The Water Committee was also briefed on Western Growers’ efforts to secure federal funds (under the WIIN Act) as match money for proposed Prop 1 water projects.

Trade Practices & Commodity Services/Transportation (TPCST): The TPCST Committee received an update on the Western Growers Transportation Program and ongoing trends in trucking industry. Other issues addressed by the TPCST Committee included master container labeling compliance for multi-unit packages, mobile refrigeration equipment regulations and potential Canadian legislation establishing a PACA-like payment protection program for growers and shippers selling product into Canadian markets. 

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

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Nassif Concludes Specialty Crop Farm Bill Alliance Meetings in Washington, D.C.

March 28th, 2017

Last week, Tom Nassif joined his Specialty Crop Farm Bill Alliance (SCFBA) co-chairs, John Keeling of the National Potato Council and Mike Stuart of the Florida Fruit and Vegetable Association, for a series of meetings with House and Senate leadership in an effort to preserve and advance key specialty crop priorities in the upcoming Farm Bill.

The SCFBA leadership met with Chairman Rep. Mike Conaway (Texas) and Ranking Member Rep. Collin Peterson (Minnesota) of the House Committee on Agriculture and Chairman Pat Roberts (Kansas) and Ranking Member Debbie Stabenow (Michigan) of the Senate Committee on Agriculture. The group also met with Rep. Rodney Davis (Illinois) and Rep. Michelle Lujan Grisham (New Mexico), the chair and ranking member, respectively, of the House agriculture subcommittee overseeing fresh produce, as well as the National Association of State Departments of Agriculture and Chuck Connor, President and CEO of the National Council of Farmers Cooperatives.

While the specialty crop priorities are still in the process of being formally adopted, during the meetings, the SCFBA co-chairs encouraged the federal government to continue its commitment to funding both short- and long-term research projects designed to address critical industry needs, such as food safety and citrus greening. Additionally, the Alliance leadership stressed the importance of fully funding Farm Bill programs that promote trade and enhance export opportunities, as well as pest and disease prevention programs.

Separate from the Farm Bill discussions, the SCFBA leadership took the opportunity to press the lawmakers on the need for Congress to tackle immigration reform.

The Specialty Crop Farm Bill Alliance is a national coalition of more than 120 organizations representing growers of fruits, vegetables, dried fruit, tree nuts, nursery plants and other products. The alliance was established to enhance the competitiveness of specialty crop agriculture and improve the health of Americans by broadening the scope of U.S. agricultural public policy.

For more information, contact Dennis Nuxoll at (202) 296-0191 ext:7303. 

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March 29 Webinar — Preparing Employers for Possible ICE Audits and Raids

March 15th, 2017

There is plenty of uncertainty in Washington D.C. and across the country about how the Trump Administration will move forward on immigration and enforcement issues following the issuance of several Executive Orders and memoranda by the Department of Homeland Security. Some of the orders and memoranda suggest enforcement efforts may be bolstered in non-border areas. It may never happen, but is your business prepared if Immigration & Customs Enforcement (ICE) comes knocking at your door?

Even if you think you are prepared for such a visit, we strongly suggest registering for our upcoming workshop entitled, “What to Do during an Immigration and Customs Enforcement (ICE) Visit.” This webinar will help key staff prepare for such an event. Participants will learn:

  • How to Prepare BEFORE ICE Comes Knocking
  • Understanding the Difference Between a RAID and an AUDIT
  • Understanding the Roles and Responsibilities of Key Team Members
  • The DO’s and DON’Ts of an ICE Visit

Registration is complimentary for WG members.  Non-member registration fee is $199. 

Webinar Details

What to Do during an Immigration and Customs Enforcement (ICE) Visit

Date: March 29, 2017

Time: 10:00 a.m. 11:00 a.m. PDT

REGISTER NOW

For questions on registration, contact Ryan Zilker at (949) 885-2249. For questions related to enforcement activity, contact Jason Resnick at (959) 885-2253.

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WG Hosts Annual Ag Tour of Legislative Interns at Rousseau Farms

March 21st, 2017

Last Friday, Western Growers teamed with partner Arizona agriculture organizations to host an agricultural tour for a bi-partisan group of legislative interns from the Arizona House and Senate. The tour, which took place at facilities west of downtown Phoenix, is an annual event designed to educate up-and-coming young professionals on the importance of agriculture in Arizona.

Western Growers’ member company Rousseau Farms hosted the group. During the visit, Kami Weddle of Rousseau Farms led the group and gave an overview of the produce industry, vegetable processing and food safety rules and regulations.  

Western Growers would like to thank the interns and other ag organizations who participated in the event. We would especially like to thank WG board member Will Rousseau, Kami Weddle and the rest of the Rousseau Farms employees for their time in hosting the tour. 

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

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APHIS Issues Second Stay on Final Rule to Allow Lemons from Northwest Argentina

March 21st, 2017

On March 17, 2017, the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) issued a second 60-day stay on the effective date of its final rule, published on December 23, 2016, to allow the importation of fresh lemons from northwest Argentina into the continental United States. 

No details were provided in the announcement as to the reason for the second 60-day stay.

Read WGs’ previous Spotlight story on the first stay and our opposition to the final rule.

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

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Nassif: 65 Percent Initial Water Allocation for South of Delta Ag ‘Defies Logic’

March 23rd, 2017

Yesterday, the U.S. Bureau of Reclamation (Bureau) announced a 65 percent initial allocation for farmers south of the Delta. The long awaited announcement came almost a month after farmers in other parts of the Central Valley received 100 percent initial allocations.  

Farmers had hoped this winter’s seemingly endless storms which have filled key storage facilities like the San Luis Reservoir to capacity would pave the way for the Bureau to announce a 100 percent allocation. The 65 percent allocation roiled farmers and water managers alike, as well as WGs President and CEO Tom Nassif who issued a statement saying, “With record-level precipitation and flooding, and fear of more to come, a 65 percent Central Valley Project initial water allocation for farmers south of the Delta defies logic. While an improvement over the zero to five percent allocations of the past three years, the stark reality is inescapably obvious:  Regulatory actions are depriving farmers and millions of Californians dependent on the farm economy of their livelihoods.”

Read Nassif’s Full Statement

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

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APMA Offering HR Certification Program in Napa Starting in Early April – Register Now

March 28th, 2017

The Agricultural Personnel Management Association (APMA) will be offering a series of courses in the Napa Valley area designed specifically for agricultural human resources professionals and others who address personnel matters for their company. Classes can be taken individually or as part of a curriculum leading to a certificate and designation. Western Growers is a co-sponsor of the program.

Professionals with HR responsibilities should consider completing this certification to stay current on various issues that include legal compliance and employee relations.

The series of sessions will be offered at the offices of Malloy Imrie & Vasconi Insurance Services, LLC in St. Helena, California beginning on Wednesday April 5, 2017, and will conclude on Tuesday, September 12, 2017.

For more information and online registration, please visit www.agpersonnel.org.  

Course Resources

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Bulk Citrus Safeguarding Enforcement to Begin April 3, 2017

March 30th, 2017

As reported in Spotlight on March 9, the California Department of Food and Agriculture (CDFA) temporarily postponed enforcement of a new regulation requiring the tarping of citrus that is being transported in open trucks to prevent the potential spread of the Asian citrus psyllid.

Enforcement was delayed to provide the citrus industry with additional time to comply with the new rule.

Enforcement of this regulation will now become effective on April 3, 2017.  According to the announcement, all bulk citrus loads must be safeguarded if moving from or within an Asian citrus psyllid quarantine area. Failure to comply with the regulation is subject to a fine of up to $10,000.

Read CDFA’s full announcement  

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

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UFW Ordered to Pay $1.2M in Wage & Hour Case

March 30th, 2017

The United Farm Workers of America (UFW) has been ordered to pay $1.2 million in unpaid overtime and other penalties in a class-action lawsuit filed on behalf of current and former employees.

On Monday, Monterey County Superior Court Judge Thomas Wills ruled in favor of about 160 UFW employees, finding that their employer failed to pay overtime and meal periods.

The lawsuit was filed in 2014 by former UFW organizer Francisco Cerritos. The plaintiffs are represented by Michael Masuda, Ana Toledo and Lindsey Berg-James with the Salinas-based law firm of Noland, Hamerly, Etienne & Hoss.

Mr. Cerritos was awarded $50,995 in overtime wages and $14,269.32 in premium wages for meal period violations. $119,600 was awarded to class members for violations under Labor Code Section 226 for the UFW’s failure to include the pay period dates on wage statements. Nearly $1 million was awarded in Private Attorneys General Act of 2014 (“PAGA”) penalties. In addition, the UFW will have to pay a substantial, yet to be determined, amount to cover Noland, Hamerly’s attorneys’ fees. 

The UFW said it will appeal the judgment.

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

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New FDA Sanitary Transportation of Human and Animal Food Requirements for Loader/Shippers

March 30th, 2017

On April 6, 2017, the FDA Rule on Sanitary Transportation of Human and Animal Food became effective. With some exceptions, the rule applies to shippers, receivers, loaders, and carriers who transport food in the United States by motor or rail vehicle. Shippers, receivers, or carriers that have less than $500,000 in average annual revenue are exempt from the rule. Transportation activities performed by a farm are also exempt.

Motor carriers that are not also shippers and/or receivers, employing fewer than 500 persons and having less than $27.5 million in annual receipts, DO NOT HAVE TO COMPLY with this rule until April 6, 2018.

Yesterday, WGs’ Director of Transportation and International Trade Ken Gilliland highlighted the responsibilities of shipper/loaders in the Tommy O blog. In case you missed it, check out the Tommy’s blog to see how the rule affects shippers, receivers, loaders, and carriers.

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

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Western Growers Statement on Waters of the United States Rule Executive Order

March 1st, 2017

IRVINE, Calif., (February 28, 2017) — In response to President Trump’s executive order regarding the Waters of the United States (WOTUS) rule released during former President Obama’s administration, Western Growers President and CEO Tom Nassif issued the following statement:

“The health of our nation’s water is of paramount importance to Western Growers and its 2,500 members who grow more than half of the country’s fresh fruits, vegetables and tree nuts. Our collective livelihoods depend on the abundant availability of clean water, which has been protected over the years by the reasonable application of the Clean Water Act.  

“However, we believe the 2015 WOTUS rule exceeded the federal government’s jurisdiction as defined by Congress in the Act, which only intended to give the Environmental Protection Agency (EPA) authority over navigable waterways affecting interstate commerce. Indeed, this interpretation has been confirmed by the Supreme Court in Rapanos v. United States.

“We are pleased with President Trump’s executive order directing the EPA and Army Corps of Engineers to formally reconsider WOTUS. While we recognize this order will not immediately repeal the rule, it will provide adequate space for these federal agencies to engage state and local governments to craft an alternative solution that both fits within the boundaries prescribed in the Act and serves the best interests of the environment and key stakeholders.

“More importantly, we believe the order should spur Congress toward much-needed legislation clarifying the reach and extent of federal jurisdiction under the Act. Since the Rapanos decision, there has been significant inconsistency in interpretation and application of the Act, which has resulted in harmful unintended economic consequences for landowners. After decades of inactivity, we call on Congress to enact legislation defining the limits of the Clean Water Act.”

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.
 

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Illogical Federal Water Allocation to Farmers South of Delta

March 22nd, 2017

IRVINE, Calif., (March 22, 2017) — In response to the U. S. Bureau of Reclamation’s initial water allocation announcement of 65% today for farmers south of the Delta served by the federal Central Valley Project, Western Growers President and CEO Tom Nassif issued the following statement:

“With record-level precipitation and flooding, and fear of more to come, a 65 percent Central Valley Project initial water allocation for farmers south of the Delta defies logic. While an improvement over the zero to five percent allocations of the past three years, the stark reality is inescapably obvious:  Regulatory actions are depriving farmers and millions of Californians dependent on the farm economy of their livelihoods. Populations of the fish species these actions purportedly protect have not recovered, yet this year federal and state agencies will again redirect massive amounts of water out to sea while shorting farmers. Meanwhile, local water managers are struggling to create plans that comply with a state groundwater management law that prohibits excess pumping of groundwater while their main supply of water to recharge those basins continues to be throttled down.

“It is time for California to get serious about the building of additional storage capacity, as directed by the voters in approving the 2014 water bond. It is equally important for our elected officials to work with the appropriate government agencies to remove the punitive and unjustified regulatory chains jeopardizing the future of thousands of California farmers and the economic and social vitality of millions of our fellow Californians.”

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.

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Jason Verhoef Promoted to Director of Employee Benefit Sales at Western Growers Insurance Services

March 27th, 2017

IRVINE, Calif. (March 27, 2017) – Western Growers Insurance Services (WGIS) is pleased to announce the promotion of Jason Verhoef to Director of Employee Benefit Sales. In his new role, Verhoef will lead sales efforts to provide affordable health care insurance options for agribusinesses throughout California, Arizona and Colorado, as well as assist, mentor and support the employee benefit sales team.

“For more than seven years, Jason has been one of the most consistent and successful regional sales managers within Western Growers,” said Jeff Gullickson, Senior Vice President of WGIS. “Jason’s remarkable ability to build strong relationships with our members and skill in finding clients the absolute best options is invaluable. We look forward to seeing him further instill confidence with our clients and internal team as a director.”

In his past role as regional sales manager for Northern California, Verhoef averaged between $3 million and $10 million in sales every year. As Director of Employee Benefit Sales, Verhoef will continue to drive sales but will also be developing efficient communication and sales growth through various distribution channels with broader reach into agricultural members and clients. Additionally, he will build and strengthen agricultural relationships and foster sub-broker partnerships for long-term success.

“I’m extremely proud to be part of an organization that is so dedicated and committed to supporting each one of its members on legislative, labor, water and food safety issues,” said Verhoef. “Being in the heart of the Central Valley has given me a new found understanding of these challenges. I’m looking forward to doing my part in helping our member organizations navigate and purchase competitive health care benefits for their employees and families.”

Prior to joining Western Growers, Verhoef made a career in finance, investments, insurance and eventually specialized in group employee benefits.  He and his wife, Melody, owned and operated a full service insurance agency that handled both individual and group insurance products for their clients. Verhoef graduated from California State University, Long Beach with a degree in Business Administration – Finance and enjoys partaking in a variety of outdoor activities with his wife and two daughters, Tiffany & Caitlynn.

High-resolution image of Jason Verhoef is available here.

About Western Growers Insurance Services:

Western Growers Insurance Services, Inc. is the wholly-owned insurance brokerage of Western Growers and offers full-service risk management solutions to agricultural and related industry members in California, Arizona and Colorado. Since first offering health insurance and employee benefits back in 1986, WGIS has expanded to include property and casualty insurance, safety and loss control services and health care reform consulting. Connect with and learn more about Western Growers and WGIS on Twitter and Facebook. 

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Western Growers Applauds Senate Ag Committee Perdue Vote

March 30th, 2017

IRVINE, Calif., (March 30, 2017) — In response to the Senate Agriculture Committee vote to favorably report the nomination of U.S. Department of Agriculture Secretary-designate Sonny Perdue to the full Senate, Western Growers President and CEO Tom Nassif issued the following statement:

 “On behalf of the 2,500 Western Growers members who collectively grow more than half of the nation’s fruits, vegetables and tree nuts, I applaud the bipartisan decision of the Senate Agriculture Committee to advance Secretary-designate Sonny Perdue’s nomination as U.S. Secretary of Agriculture to the Senate floor.

Secretary-designate Perdue performed admirably during his confirmation hearing, demonstrating the type of leadership and commitment to agriculture that secured our endorsement more than two months ago when he was first nominated by President Trump. We are confident he will act as a tireless advocate for the U.S. Department of Agriculture and the industry it serves, working to preserve and enhance support for department priorities vital to the sustainability of farmers across the country.

 Furthermore, we trust that Secretary-designate Perdue will pursue a resolution to one of our industry’s greatest needs, ensuring that immigration reform – one that works for all of agriculture – remains a top priority for the president and other key cabinet and Congressional members who will be engaged in future negotiations.

 We look forward to building a partnership with Secretary-designate Perdue, working together to advance agricultural priorities in areas such as immigration, the farm bill, trade, nutrition, research funding and the environment, and urge the Senate to swiftly confirm his nomination.”

 

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.

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Western Growers Supports Justice Department’s Focus on Felons, Not Farmworkers

March 31st, 2017

IRVINE, Calif. (March 31, 2017) – In response to Attorney General Jeff Sessions’ statement on Fox News clarifying that the Justice Department does not intend to target illegal immigrants who have not committed crimes beyond illegally entering the country, Western Growers President and CEO Tom Nassif issued the following statement:

“We are encouraged by Attorney General Jeff Sessions’ recent statements that U.S. Immigration and Customs Enforcement (ICE) will not focus its efforts on illegal immigrants who have, other than entering the country illegally, abided by our nation’s laws. The Attorney General’s comments confirm what we in the agriculture industry have understood to be the Administration’s interior enforcement policy: ICE activities will be directed toward deporting felons, not farmworkers.

“A strong, dependable agriculture industry is the foundation upon which our country has been built, and its continued viability is directly linked to the future prosperity of our citizens. Much of our agricultural productivity is owed to the hard work of foreign hands, in particular the harvesting of our nutritious fruits and vegetables.

“However, agricultural employers are facing a chronic shortage of workers, which is driving production overseas and beyond our control. We cannot afford to exacerbate this problem by threatening to deport our farmworkers, which the Administration clearly understands. Instead, our task is to simultaneously purge our country of illegal immigrants convicted of serious crimes while pursuing an immigration reform policy that provides a pathway forward for the men and women who diligently serve our country by toiling in our fields to produce healthy foods.”

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.

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ATTRACTING TOP TALENT: Mastering the Art and Science of a Total Rewards Package

March 23rd, 2017

By Karen Timmins

WG Senior Vice President, Human Resources

Your company’s success depends on the ability to compete for, attract, and retain exceptional employees. Unfortunately, as the entire agriculture industry faces a tightening labor market, it’s more difficult than ever for the fresh product industry to fill essential positions.

Regions, such as California’s Central Valley, are experiencing a shrinking pool of talent as skilled labor gravitates toward tech-centric areas of the country. Meanwhile, immigration reform threatens to reduce the availability of field workers, and new minimum wage and overtime regulations create even greater pressure for agricultural employers already struggling with rising costs.

To profitably navigate these external challenges and continue to fill critical roles within your organization, you must have a comprehensive total rewards strategy as well as a clearly-defined compensation philosophy. Total rewards encompasses everything involved in the employee value proposition, including cash, benefits packages, and additional perks (perquisites) such as educational reimbursement, sabbatical leave, subsidized cafeterias and housing, on-site childcare, and wellness programs. Your compensation philosophy is then developed within the context of this total rewards package. It starts with understanding what matters most to your employees, then using base pay and incentives to better position yourself in this competitive labor market.

An effective total rewards package is a dynamic balance of science and art — the market data and the guiding principles for integrating that data — working together to help direct your spending and attract the best talent possible to your organization.

 

The Science: Market Data

Research, verified data and facts give you what you need to build the framework of your total rewards package.  A true understanding of human resource (HR) policies, total cash compensation, benefits, and perquisites offered by employers in your labor market allow you to craft your employee programs to be competitive while remaining fiscally responsible.

Without the relevant employment market data to guide your decisions, you’re forced to rely on intuition and anecdotal information, reacting to moment-to-moment pressure with little more than gut feelings to justify any one choice over another. Salaries are set, raises are awarded, HR policies are written; all in a vacuum and without any insight into how these decisions relate to actual market rates and best practices. Data such as position-specific average base pay and industry-wide incentive program trends are critical to making well-informed decisions and getting the most value from your scarce resources. Timely and specific market data deliver key insights into roles across your entire organization, provide objective reference points to support your compensation recommendations, and help you to avoid underpaying or overpaying for talent.

The following points highlight how your day-to-day employment decision-making process can be greatly enhanced with the relevant market data:

•  Analyzing your overall labor market competitiveness: Know how you measure up against other employers competing for the same talent, which incentives (health care plans, bonuses, etc.) employees care about most, and the HR practices that have the greatest impact on employee retention.

•  Hiring or promoting an employee: Understand the range of what companies similar in size, business segment, ownership type, and location are paying for that same job.

•  Considering pay raise requests: Determine if the employee is already fairly compensated, or perhaps even worth paying an above-market rate based on the value he or she contributes.

•  Creating a new job for your organization: Gain insight into the qualifications and responsibilities other companies require for that position.

•  Determining merit increases: Identify trends within the produce industry and consider potential budget adjustments in order to remain competitive for top talent.

•  Adjusting your compensation mix: Understand the percent of total annual cash compensation that is delivered through an annuity (base pay) versus performance pay (incentives). Market data will help you understand the role of incentives in total cash compensation and how they differ by job responsibilities.

 

The Art: Integrating the Data

The art of compensation is in how you use the data. The data is simply your starting point; a guideline to set parameters from which to operate. The art is the process that happens within those parameters. You use the data to develop or refine your compensation philosophy and apply it to your culture and your employees.  Start by taking a very close look at your employees and ask the right questions to help make the data relevant to each specific situation.

•  What is their performance level?

•  Are they meeting or exceeding expectations?

•  How much value do they create for our organization?

•  Are their skills and experience in higher demand than usual?

•  Have they ever held this particular job before?

The answers to these types of questions, combined with the relevant market data, will help you determine an appropriate cash compensation package for each position in your organization. Depending on skills, experience, and merit, one employee’s compensation may be higher or lower than another’s in a similar role.

The art also includes navigating the political and legal landscapes, such as the impact that legislative changes have on the cost and availability of labor within the agriculture industry. Consider the following laws and political trends taking effect in 2017:

•  Increased minimum wages at the state, county, and city level (SB 3 in California, Prop 206 in Arizona, Amendment 70 in Colorado), as well as tighter restrictions on ag overtime and rest day requirements in California (AB 1066).

•  Expansion of California’s equal pay law (SB 1063 and AB 1676), prohibiting any compensation disparity between workers based on gender, race, or ethnicity.

•  Requirements to maintain a private, qualified retirement savings plan, or enable employees to make automatic contributions from their paycheck to a California Secure Choice Retirement Savings Trust savings account (SB 1234).

•  Expansion of the ACA Marketplace employer mandate to offer affordable, comprehensive health benefits coverage to full-time employees and their dependents.

•  Executive branch pressure for tighter restrictions on immigration, such as President Trump’s executive orders regarding the building of a border wall as well as the call for increased interior enforcement.

These and other legislative changes will likely reduce your room for error as you calculate and plan for future labor costs, and may have a significant impact on your total rewards package and compensation philosophy. While it might be tempting to preserve profits with sweeping cuts to labor expenditures such as benefits and incentives, it’s important to also evaluate your compensation strategy within the context of labor market realities. Requiring employees to contribute more to their healthcare coverage or reducing vacation days and company-paid 401(k) contributions may save money in the short term, but could be costly in the long run as quality employees look elsewhere for a better deal.

Incorporating a balance between both the science and art into your decision-making process can help you mitigate these external pressures while still remaining competitive.

•  External data: Understand market compensation rates, requirements, and responsibilities for each role within your company in order to avoid overpaying for talent in some areas of your organization, freeing up resources to help compensate for higher minimum wage and overtime costs in others.

•  Internal data: Audit internal compensation rates to ensure compliance with equal pay laws by avoiding unsubstantiated pay gaps between employees in similar positions.

•  HR policy communications: Demonstrate your commitment to fair labor practices through regular employee communications. Create clear HR policies that reflect both the external legal realities and your internal compensation philosophy, as well as assist employees in understanding how to avoid potentially costly breaches, such as not taking adequate rest days or unnecessarily applying for ACA subsidies.

 

Transitioning to a Data-Driven Process

While the long-term payoff of adopting a more proactive approach toward your organization’s total rewards strategy can be substantial, the transition to a data-oriented process is not always easy. Seeing the market reality through the data may shine a light on past mistakes as well as ongoing systemic problems, including favoritism and overcompensation to those with long tenure.

It’s important to recognize these errors and quickly refocus on making better decisions in the future. Help managers throughout your organization understand the value of market data by demonstrating how it can be used to estimate competitive pay and attract the best candidates for the jobs they are looking to fill.

Western Growers is committed to providing the market data you need to make the best employment decisions possible and compete for top talent within the industry. The Western Growers 2017 Professional Compensation and HR Practices Survey will give you the insights you need to recruit and retain outstanding employees, make key budgeting decisions, and plan a competitive total rewards strategy. This is the only compensation survey specific to the California and Arizona specialty crop industry, with distinct data sets to help you focus on the information most relevant to your company’s size, business segment, ownership type, and location.

All participants will receive a free copy of the 2017 survey results. To learn more, visit agsalary.com.

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The Nitrate Troubles

March 23rd, 2017

You and those who farmed before you are not industrial polluters.

It seems odd to have to say that, but thanks to the state of California, which evidently believes otherwise, we must repeat this truth, and we must retrace some very important history to put the problem of nutrients in groundwater into the proper framework.

Farmers in the Salinas Valley and the Tulare Lake Basin are being threatened by the State Water Resources Control Board with punitive enforcement action unless they agree to pay for replacement drinking water for people served by small well systems with nitrate levels exceeding the state’s standard.

The need to provide safe drinking water to these affected people is widely supported. Targeting farmers to pay for this need, however, is very much in dispute.

The state’s regulators wield California’s strict water quality statute, which conveys to them the power to issue cleanup and abatement orders against any landowner applying a substance to the ground believed to be “causing a condition of pollution” to the water below.

The fact that the statute provides this power does not justify the state’s use of it in this case.

We have been pressing the Brown Administration to rethink this approach and consider a more equitable and effective strategy. There is no disagreement that throughout California, in both rural and urban regions, many groundwater basins that provide domestic water, or could be utilized for domestic water, contain excessive levels of any number of contaminants. Nitrate gets all the attention, but it is quite possibly the least harmful of the contaminants of concern. Hexavalent chromium, arsenic and lead are all quite clearly more dangerous than nitrate, and the groundwater basins containing these contaminants are found in much more heavily-populated parts of the state.

More to the point, we argue that the application of nitrogen fertilizer to grow food is entirely different than the careless dumping of industrial chemicals from a factory.

Indeed, the application of nitrogen fertilizer was one of the first advances in agriculture thousands of years ago, and the use of fertilizer on farms through the history of humankind has saved untold millions from starvation. It is painfully revealing that we even have to argue this point.

As we continue to press the Brown Administration to support a broad-based mechanism that addresses all groundwater contaminants in all parts of the state, we are also gearing up to fight for relief in the federal Farm Bill.

Our case is strong and simple:  Our own federal government and the land grant universities encouraged and guided farmers on application of nitrogen fertilizer for decades to increase food production and efficiency. Farmers relied on that advice, and used that guidance, which represented the best management practices of the time. In other words, farmers did not carelessly over-apply fertilizer, which, like other inputs, hits the bottom line.

Fast forward to today: Possessed of greater scientific knowledge, farmers now have information and guidance to help them apply fertilizer more precisely to both maximize yield and reduce movement of nitrates below the root zone. Best management practices have advanced in parallel with scientific research, much of which came from the land grant universities, just as before.

Yet as noted above, in California, and in other regions of the country as well, regulators are attempting to penalize the farmers of today for the perfectly legal and encouraged practices of decades past. That is fundamentally unfair and we’ll fight it.

We do not, however, wish to ignore the legitimate needs of communities lacking safe drinking water due to nitrate contamination. They should be helped right away, and the right way to fund upgraded water systems, temporary replacement water and other forms of assistance is through the federal Farm Bill. This recognizes that farmers are not guilty of pollution and that these legitimate drinking water needs ought to be the focus of our federal farm policy.

Our team has already begun working with California Secretary of Food and Agriculture Karen Ross to organize her counterparts in a coalition with industry to secure funding. Separately, I have raised this issue with the other co-chairs of the Specialty Crop Farm Bill Alliance, the large industry coalition that advocates on the Farm Bill.

From time to time, I hear people in the fresh produce industry say that the Farm Bill isn’t important to them. There are dozens of reasons why that is not accurate, and now we can add another big one to the list.

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Love of the Outdoors Leads to Farming Career

March 23rd, 2017

CA Director Profile

Don Cameron

Vice President

Terranova Ranch Inc.

Helm, CA

Director Since 2016

 

NORTHERN CALIFORNIA ROOTS: Don Cameron grew up in Redding in Northern California, a couple hundred miles north of San Francisco. His father worked for the Public Utilities Commission and it was his dad’s transfer to Fresno when Don was in high school that brought him to the San Joaquin Valley.

 

FRESNO STATE LAUNCHES A CAREER: After high school, Don went to CSU Fresno majoring in biology and expecting a career in wildlife management. He loved the outdoors and wanted a position close to nature. He attained an internship with the Mendota Wildlife Area, took a test for a permanent position with the organization and thought he was on his way. “I passed the test but received a letter stating that I was NOT randomly drawn by the computer to begin the interview process.”

Still hankering for an outdoor job, Don took a training internship with the University of California Extension Service. He worked with ag advisors and very much enjoyed the work. That led to a position at an ag lab where he collected soil samples. His next career stop was for a chemical company working on that side of the ag sector. Around this time he became a licensed PCA (pest control advisor), which eventually led to a position with Terranova Ranch in 1981.

 

THIRTY-FIVE YEARS WITH THE FIRM AND COUNTING: Three and a half decades have gone by quickly with Cameron moving up through the ranks and landing the general manager position in 1987. Today as vice president, he oversees the operation which counts more than 7,000 acres of crops including almonds, wine grapes, seed crops, carrots, vegetables and several other commodities. Within that acreage, about 10 percent of it is in organic production. The company focuses on the production end of the business selling its output through various established shippers such as Grimmway Farms and Harris Ranch. It is currently in the process of converting some wine acreage to vegetable production because of what Cameron calls an over-production in the California wine grape business.

 

A FARMER AT HEART: By necessity, Cameron has to spend a good portion of the time behind the desk working on all the projects endemic to a larger farming operation; but in his heart, he is a farmer. “I like to be considered a farmer,” he said. “Field work is what I like best.”

Partly to indulge that habit, he is a grower in his own right with close to 400 acres of his own land in production. His operation is called Prado Farms and consists mostly of almonds, walnuts, processing tomatoes and an alfalfa crop grown for seed. Recently he traded a pistachio grove in one county for some land in another, largely because of the availability of water on his new land. “It’s in Fresno County, which has a much better water situation,” he said.

 

FAMILY LIFE: Don and his wife, Elisa, have been married for about 14 years and have a blended family that includes two grown sons and two grown daughters. None of the four are directly involved in agriculture as their professions are a water attorney, an entrepreneur with wine.com, a special education teacher and a city college professor. Cameron says his love for the outdoors continues to dominate his life including his free time with hunting and fishing being regular pursuits. The couple live on the farm which he says “is in the middle of nowhere, north of Helm and 35 miles southwest of Fresno. It’s an unverified address,” he says, seemingly proudly.

Cameron has absolutely no regrets about his career choices noting that “it takes a special kind of person to be in agriculture. It’s a lifestyle. You have to be committed to it.”

While he loves the outdoors and living on a ranch with no neighbors within earshot and very few that can even be seen, quite ironically Don and Elisa’s favorite place to get away is New York City. “We love to come to New York a couple of times a year, stay in Manhattan and take in a play. We really enjoy that.”

 

THE FUTURE OF CALIFORNIA AGRICULTURE: Though urbanization has not played a role in the limiting of Terranova’s agricultural pursuit in what is very rural California, Cameron said the future of agriculture in the state is still very challenging. “We have a difficult road ahead. There are a lot of hurdles to jump if you want to be successful.”

He said he is an optimist but listed over-regulation as one challenge that makes it very difficult to survive. “We have a lot on our plate in California,” he said.

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TRANSPORTATION OUTLOOK: No Pain, No Gain

March 23rd, 2017

By John Stenderup

Director of Business Management, Sourcing, C.H. Robinson.

It’s about that time of the year again…time to gear up for peak season on the West Coast. Despite some recent rain delays, let’s assume that most of your crops are planted and you are in the stages of finalizing pricing with your customers. What is left to be done? Have you considered recent trends in the freight industry? Over the past two years, depressed pricing and an overabundance of supply has caused transportation to become an afterthought, but it shouldn’t be in 2017.

The domestic trucking industry is primarily driven by the laws of supply and demand, and after a very profitable 2014—when truckload rates spiked and fuel prices plummeted—many carriers’ overinvestments resulted in an oversupply of equipment. In its current state, the freight industry is a buyer’s market and has been for almost two years, after an extended period of depressed pricing. The compression of margins caused carriers to focus on cost management, cutting costs by limiting investment in tractor units and drivers. With any cyclical industry, it’s not a matter of ‘if’ the conditions will tighten, but rather ‘when.’

Based on some key industry indicators, many experts anticipate 2017 to be the answer of ‘when.’

•  FTR Intel’s “Active Truckload Utilization Rate” is the percentage of the population of active trucks that is required to move U.S. truck freight. In Q1 of 2016, the percentage hovered around 93 percent but has increased by more than 4 percent, at nearly 98 percent, over the past 12 months.

•  DAT Solution’s “Load-to-Truck Ratio” represents the number of loads posted for every truck posted. Comparing January 2016 vs. 2017, the national reefer ratio has increased by 62 percent, which demonstrates a shift towards a seller’s market.

 

So what does this mean?

Nothing immediately, but, we can clearly see that the nation is using a higher percentage of available trucks, demand from shippers is increasing on internet truck boards, and the price of diesel has increased over the past 12 months. So why does truckload pricing remain depressed? The phrase “No Pain, No Gain,” refers to the pain that shippers must experience for there to be a gain or increase in truckload rates. That pain comes in the form of challenges in locating the capacity necessary to get our product to market. When we as shippers feel the pain of a difficult truck market, we are inclined, and in some cases forced, to pay more for freight to ensure timely pickup and delivery.

While it is impossible to predict how much rates will increase in 2017, it’s a safe bet that shippers will face two significant challenges if these trends continue:

•  Delays in Getting Product to Market: Periods of surge demand will result in capacity shortages and the potential for delayed deliveries.

•  Increased Freight Costs: Will occur as a result of capacity shortages but the severity of which, depends on how much pain is felt by the shipper community.

 

How will this impact your business?

Make no mistake, the market is tightening and that pendulum is loading. Your customers, the retailers and foodservice companies know this and are expected to take advantage of the depressed market conditions. In fact, many are already considering a tightening market and increased truckload rates a forgone conclusion which is demonstrated by the sharp increase in demand of transportation procurement activities for product purchased on an FOB basis. In the event that they are unable to secure favorable pricing or predict severe volatility, they are likely to pass the buck to you, through purchasing product on a Delivered basis.

 

What should you do?

Be Aware: “Don’t be a frog in boiling water.” What does that even mean? The frog that is dropped in boiling water, is immediately aware and hops out. The frog that is placed in lukewarm water just to have it slowly heated to a boil, will become comfortable and complacent, eventually boiling to death.

Be a “Shipper of Choice”: A phrase that is making a comeback within the industry is “Shipper of Choice.” What does it mean? It refers to shippers that demonstrate consistent industry best practices at origin that are perceived as favorable by over the road carriers. It means, making your freight more desirable than the shipper down the road, who is competing for the same capacity. Do you consider yourself a Shipper of Choice?

Understand Contract Terms & Pricing Strategy: Be cognizant of contract terms when you submit “Delivered Pricing” during this bid season and DO NOT simply resubmit the same freight costs as 2016. Work closely with your partner carriers to establish mutually agreed upon rates and to secure capacity commitments for any business that has the potential to be sold as “Delivered.” Talk to your teams about how they are managing their freight procurement, bids, surge strategy and contingency plans for a volatile market.

Over-Communicate: Discuss current and future market conditions with both your customers and your carriers. In most cases, your customers are already aware of truck market volatility, and it’s in your best interests to help them understand how that may impact your Delivered Price.

Leverage Resources: Work with your carrier partners to gain a better understanding of movement in the market, so that all parties are on the same page. We recommend regular business reviews with your partner carriers and score carding their performance. Does your team use technology to optimize your supply chain, monitor freight spend and manage service levels?

Remember, it is impossible to predict precisely when transportation markets will become volatile, but through use of these best practices, you can ensure that your company is prepared to navigate any obstacles down the road. Our team of perishable transportation experts on the Western Growers Transportation Program would be more than happy to review with you and help you set up pricing that fits your program needs. We are always here to support your business.

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