An Agtech Return on Investment

July 20th, 2017

On any given day, the Western Growers Center for Innovation & Technology (WGCIT) is buzzing with energy from entrepreneurs who are all collaborating on innovative ideas and technologies to help solve agriculture’s biggest challenges. You’ll see the young engineers of HeavyConnect working side by side in the collaborative cubicles, coding new software that will eliminate paperwork in the field and streamline farm operations. In the back, you’ll find TracMap conducting equipment testing on its precision guidance system that enhances the application of crop protection products. In the conference room, you’ll hear Inteligistics pitching potential clients on its new sensor, Pulse™, which monitors produce condition from ”field to store.”

What started as a brief conversation between the Western Growers (WG) Board of Directors in July 2014 has now blossomed into an unstoppable agtech incubator. The WGCIT first opened its doors on December 10, 2015, with six agricultural technology (agtech) start-up companies. The Center has since transformed into a hub of collaboration and innovation, now housing 37 startups.

“We usually have lofty expectations, but this has exceeded them for the short time we’ve been open for business. We are now up to 37 startups in the Center with more in the pipeline. It’s grown very quickly past our original target of 30-35 startups,” said WG President and CEO Tom Nassif in a recent interview with AgFunder News on the Center’s latest developments.

Each startup has a unique expertise and is working on technology that will help solve a range of issues farmers face on a daily basis. There are innovations being developed that enhance food safety practices, using everything from sensors to data collection software. Numerous startups are specializing in aerial imagery and precision agriculture to improve crop yield by providing growers with detailed analytics about their fields and plants. The most recent startups who joined the Center are helping combat pests through management platforms, magnets and guidance systems for ground applications.

 

Bonds Form Between Startups and Growers
Having just passed its one-year mark, the Center has laid the foundation to achieve its main goal: to bring innovative entrepreneurs together with farmers to create commercially viable technology that provides solutions to agriculture’s most vexing issues.

As part of its suite of benefits, WG has established monthly events and exclusive opportunities where WG members are introduced to new innovations and agtech startups are able to connect one-on-one with potential clients and investors.

For example, Taylor Farms—both a member of Western Growers and a sponsor of the WGCIT—has formed bonds with numerous startups within the Center.

Most recently, Concentric Power developed a pre-engineered, prefabricated, modular power plant design that was installed at Taylor Farms’ food processing facility in Gonzalez, California. The new cogeneration plant will help Taylor Farms generate onsite electric power for low temperature refrigeration, producing an annual energy offset of 64 percent.

Taylor Farms has also provided seed money to several startups, including HarvestPort. “We are working together to reach out to other growers in the industry,” said Brian Dawson, CEO of HarvestPort. “HarvestPort provides growers a means to earn additional profit offseason by renting their idle equipment to peers. Taylor Farms and HarvestPort are united in seeking to drive the highest return to the growers we touch. Ultimately, we both win if farmers end up with an additional dollar in their pocket at the end of the year.”

Another WGCIT resident, Alta Energy, has worked with Merrill Farms to assess its energy usage, develop a sustainable energy plan, identify five sites where solar would be cost effective and develop solar arrays at two of those sites. The solar photovoltaic systems will yield $60,000 per acre of revenue annually for Merrill Farms.

HeavyConnect, another WGCIT startup, has helped many WG members, including Dole, Driscoll’s and Gill’s Onions, remove the paperwork from farming operations by providing software that allows owners to utilize digital timecards, easily track equipment and complete food safety inspections with a click of a button…from a smartphone.

Additionally, California Safe Soil recently opened a new production facility that will turn 32,000 tons of discarded organics per year into nutrient-rich liquid fertilizer and feed for agricultural use. The company’s Harvest-to-Harvest fertilizer has helped farms like Ratto Bros. increase crop yields while reducing water usage.

 

Sponsors and Startups Partner for Success

The relationship between ag and tech goes beyond WG members and the WGCIT startups. Partnerships are now forming between the startups and sponsors of the Center. The early successes of the WGCIT would not be possible without the Center’s 17 sponsors, some of whom are playing an integral role in the launch of these start-up companies.

In April, Wexus Technologies, Inc., teamed with Pacific Gas & Electric, one of the newest WGCIT sponsors, to bring new water management tools to agricultural customers. Through the collaboration, Wexus and PG&E enable conservation of both water and energy.

“One of the most significant energy uses on farms is moving and pumping water. We will remotely connects pumps, buildings, PG&E electric SmartMeters and water flow meters via cloud technology,” said Chris Terrell, founder and CEO of Wexus. “This gives ag customers another option to track, interpret, and manage their water and energy use effectively.”

JV Smith Company is another sponsor that has already started working with numerous WGCIT startups and continues to be on the lookout for new, innovative technologies coming out of the Center.

“JV Smith Companies is proud to be a sponsor for the WG Center for Innovation & Technology as we believe the Center is a key to help us navigate the uncertainties of the future,” said Vic Smith, president and CEO of JV Smith Companies. “Our business survival is based on the knowledge and ideas that are being developed through this important facility. We have been fortunate to have met and developed relationships with some great new companies including, but not limited to, Trace Genomics, SWIIM and GeoVisual Analytics. By participating in this important forum we have gained access to the latest best technologies to enhance our competitive position.”

 

WG Playing Matchmaker

Western Growers will continue to facilitate relationships between the startups and the industry through unique events, regular programming at the Center and special initiatives. WG recently launched a Soil Microbial Health Initiative with Trace Genomics to assist farmers in understanding how soil biology is a key factor in crop productivity, disease susceptibility and crop quality. As part of the initiative, WG coordinated a “sit down” between growers, researchers, government entities and agribusinesses, where Trace Genomics had the opportunity to speak about their technology and demonstrate how to put it to use.

WG also provides startups with exclusive opportunities to connect with growers and garner feedback to help perfect their technologies. During Board of Director meetings, startups within the Center are afforded the chance to present in front of the Science and Technology Committee—a group of growers who are well-positioned to discuss the feasibility of implementing innovative ideas in their fields. WG also hosts AgSharks™ (formerly the Innovation Arena) during the WG Annual Meeting where startups present their technologies to the membership and receive advice from growers on how to best bring their product to market.

“All of these companies are still developing their technology and need to work with industry members to garner the appropriate input to help perfect their products,” said Hank Giclas, Western Growers’ senior vice president, strategic planning, science & technology. “It’s a win-win. Startups gain the insight needed to create a viable product and our members can become early adopters and be on the forefront of these leading-edge developments.”

WG is not just talking the talk, it’s walking the walk as it has formed official partnerships with both SWIIM and iFoodDecisionSciences. WG has tapped iFoodDecisionSciences to develop technological solutions that will help the industry better address, enforce and manage food safety concerns and outbreaks.

WG is also working with SWIIM to provide farmers with a technological solution that is designed to help manage water use more efficiently. SWIIM’s growth has exploded over the past several months and CEO Kevin France attributes part of the success to the support and guidance WG has provided his company.

“Key Western Growers staff, and especially Western Growers members themselves, have provided invaluable input on how we can start offering our package to all types of growers to benefit more of the industry,” said France.

 

What’s Next for the WGCIT?

In the future, WG hopes to obtain a location where startups can use the land as a deployment site or demonstration field. The results from the proving ground would then be available to consumers. For example, all the startups working on developing water sensors to improve water management would be able to test their technology for a season. WG would then gather the data to develop a consumer report, which would be available to the public as a guide on water sensors—including costs, differentiators, ease of implementation, types of data provided, etc.

WGCIT and WG staff are also placing a stronger emphasis on actively bringing in startups and technologies into the Center that solve WG members’ most pressing needs. The first effort of this “solutions-orientated” approach was addressing water needs in the Central Valley. WG recently held a Deeper Dive event in Fresno where water startups and growers came together to brainstorm the strategies and tactics that farmers AND technologists might utilize to better work together to solve issues surrounding water. Next on the list? Robotics and automation.

“The inability of our federal government to provide agriculture a legal workforce has been the driver for automation including robotics and mechanization,” said Nassif. “While technology is moving at a rapid pace, worker shortages are increasing faster. We have no choice but to automate as many agricultural jobs as possible, moving the farm worker into higher paying, less stressful technological jobs. It can’t happen fast enough, but it will happen, and we encourage and financially support those efforts.”

 

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Forbes AgTech Summit: WGCIT Scholarships & Labor-Saving Tech Featured

July 20th, 2017

For the past three years, the Forbes AgTech Summit has been an impressive showcase of the latest and greatest in agtech innovation from around the globe. This year, the jam-packed event went from impressive to spectacular.

More than 600 people gathered in the heart of downtown Salinas, California on June 27–28, 2017, to hear from industry leaders about the most pressing challenges facing agriculture, as well as from the entrepreneurs who are inventing technologies to help solve those issues.

Finding solutions to the industry’s labor shortage was top of mind for farmers during this year’s event. Panelists detailed critical labor issues such as the lack of immigration reform, and the scarcity of younger generation farmworkers as the current workforce ages out. The severe labor shortage in agriculture has reached a critical stage, and cutting-edge technologies to ease the deficit of labor must be created sooner rather than later.

“We have made technological advances from planting up to harvest but that’s where it stops,” said Brian Antle, president of Planttape USA, during the Help Wanted: How Labor is Shaping the Farm of Tomorrow session. Antle explained to the audience that no automation or technology has been developed that can mimic the expert skills of a farmworker to know which crop is ripe for the picking.

The possibilities, however, are gradually moving forward. Soft Robotics, one of the newest residents of the Western Growers Center for Innovation & Technology (WGCIT), has developed a gripping system that can adapt to handling objects of varying sizes, shapes and weights using air pressure. “The hand,” which has no metal structure, can easily package produce as delicate as a tomato without bruising it. At the event’s Innovation Showcase, the Soft Robotics team demonstrated how the hand has the ability to simply pick up a tomato from the packing line and gently place it into a box. The air pressure changes based on the size or shape of the fresh produce.

The challenge lies in inventing a robot that can simultaneously use the hand and also detect when a piece of fruit or vegetable is ready to be picked.

Bruce Taylor, CEO of Taylor Farms, took the solution in another direction. “It’s not a shortage of labor; it’s no labor. The way we grow needs to change,” said Taylor during a riveting session on brand growth. Taylor discussed the possibilities of different growing practices as a solution to the labor crisis, noting experimentation with new seeds that could produce a lettuce head that has a bulb on the bottom so it would be easier to harvest.

In addition to covering labor-saving technologies and strategies, sessions also highlighted tactics to overcome go-to-market challenges, growth opportunities for fresh organic produce, approaches to optimizing yields, and how farmers can prepare for future water shortages using sensors.

Panel sessions were interjected with networking opportunities and recognition of some of the industry’s leading agtech innovators and adopters. On Thursday, Western Growers awarded Vic Smith, president and CEO of JV Smith Company, with the association’s Forbes Impact Award, while the City of Salinas honored Lorri Koster, chairwoman and CEO of Mann Packing Co., with the city’s Forbes Impact Award. The Forbes Impact Awards are presented at each Summit to individuals who are leading, innovating and pushing boundaries in their given field.

“[Vic] has been a tireless advocate for advancement of the science, technology, research and development necessary to meet the demands of a rapidly changing agricultural and food supply system. Vic has constantly reminded us that to prepare for the future we must invest today,” said Sammy Duda, senior vice president of national operations for Duda Farm Fresh Foods and chairman of Western Growers, while presenting the WG Forbes Impact Award to Smith.

Smith has been one of the biggest advocates for technology in agriculture since the beginning. Several years ahead of others, he pursued technology that would allow him to thin, space and mechanically weed. When precision thinning equipment neared perfection, Smith challenged his team on what else they could do with these mechanization tools. With the flip of a switch, JV Smith Company started applying crop protection chemistry with precision. This allowed for significant savings through reduced chemical applications using the same equipment.

Smith is again leading the way in bringing new ideas and technologies forward with his support of the WGCIT. He has already created partnerships with multiple WGCIT residents including Geovisual Analytics, Trace Genomics and SWIIM Systems.

“We are not going to survive and move forward unless we start bringing innovation and technology into farming,” said Smith during his acceptance speech. “I’m very honored. To receive an award like this, it’s truly about a lot of people.”

Smith went on to speak about the support provided by industry leaders such as Bruce Taylor of Taylor Farms, John Hartnett of SVG Partners and Tom Nassif of Western Growers, and thanked them, as well as the JV Smith Company team, for helping advance technology and innovation.

The festivities continued to gain momentum during a private luncheon at the WGCIT. Nearly 100 agtech startups, venture capitalists, academia and Western Growers board members came together to discuss collaboration opportunities in the agtech space and celebrate the ongoing success and development of the WGCIT.

“It takes many partners to make the Center and this larger innovation effort work,” said WG President & CEO Tom Nassif during the luncheon’s opening remarks. “It takes financial support and many of you have helped underwrite the Center and its programs. It takes entrepreneurship, which is embodied by our startups who are working to solve problems and create business. It takes growers on the leading edge who are willing to work with technologists to perfect these solutions. We thank you.”

Wells Fargo then presented Western Growers with a $30,000 grant for the second year in a row to create scholarships for start-up companies who are looking to advance their innovations by joining the WGCIT. Past scholarship recipients include AgVoice, Ayrstone Productivity, Food Origins, Harvesting Inc, HeavyConnect, Intelligent Wireless Networks, PastureMap, Soft Robotics and Wexus Technologies. This year’s grant will again be used to further assist entrepreneurs in bringing their technologies—everything from automation and clean tech to water efficiency and food safety—from development to market.

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Annual Meeting Award of Honor: David Gill Triumphs Over Adversity to Become Distinguished Ag Pioneer

July 20th, 2017

A large “BOOM” echoes through the remote Salinas foothills in late October 1998. In the distance, there is a downed helicopter with a lone pilot, David Gill, crawling out of the wreckage. His body is nearly broken, but his spirit is more determined than ever.

Knowing that he is badly injured, Gill has to find help quickly. He limps for nearly half of a mile until he finds a house where he is able to use a telephone to call for assistance.

Gill nearly lost his life that day when the chopper crashed while practicing autorotation, an emergency landing procedure where the engine is shut off and the helicopter must land without power, but God had other plans. After being rushed to the hospital, Gill found out he had broken his neck in two places and damaged three vertebrae in his back. He spent a week in the hospital and three months in rehab. Despite the lingering thought of not being able to do some of his favorite activities such as working in the farm fields, golfing or mentoring local youth, he persevered and overcame the odds. Gill went on to win the AT&T Pebble Beach Pro-Am just 14 months later while simultaneously helping shepherd seven agriculture ventures to success, demonstrating to millions the resiliency and determination that friends and colleagues in agriculture have long admired.

This may sound like a plot from a Hollywood movie, but in fact, it is the story of David Gill—a fighter, survivor, innovator, philanthropist, farmer and industry advocate.

“What turned out to be the worst point in my life quickly turned around to be my best,” said Gill. Though winning the Pro-Am is one of the most cherished moments in Gill’s life, his renewed sense of purpose after the accident is clearly higher on his list.

“I have always been respectful of people, but it wasn’t until the accident that I realized how important relationships and friendships are to your well-being,” said Gill. “I couldn’t be more appreciative of the many people who sent me letters and visited me at the hospital and at home. They kept me going and my spirits up. After coming back from a close call like the one I had, I’m even more committed to giving back to both the industry and community.”

Growing up on a farm in King City, agriculture had always been engrained in him. Gill and his brother, Steven, worked with their father in the field, and they both knew early on that they wanted to be farmers. “Like dad, we wanted to own our own ranch, run our own operation and be our own boss,” he said.

After high school, Gill planned on attending Hartnell College to play football while working on the family farm. However, his agriculture teacher at the time, Don Carroll, had a different path for him in mind. One day, Carroll put Gill and his classmate into his pickup truck and drove for 80 miles until they reached Cal Poly San Luis Obispo. “We met with the Dean of the College of Agriculture at the time and he said ‘if they are good enough for you, Don, they are good enough for me.’”

Gill graduated with a bachelor’s degree in crop science in 1973 and returned to King City to apply his Cal Poly knowledge to the field.

Gill started his ag endeavors early with Rio Farms in 1978, in partnership with his father and brother. Rio Farms launched with less than 500 acres in the King City and Oxnard areas, growing a few commodities such as celery, broccoli and cauliflower. Through the Gills’ diligent leadership, Rio Farms is now ranked as one of the top 10 vegetable growers in the West with approximately 15,000 acres of row crops including spinach, lettuce, romaine, celery, broccoli, cabbage cauliflower, onions, peppers and tomatoes.

Shortly after the Gills founded Rio Farms, one of their pepper customers reached out with a request that spurred a new venture. “La Victoria Foods needed onions for their salsas. The one hitch was they had to be peeled,” said Gill.

With their first customer on deck, Gill teamed with his brother to establish Gills Onions. They developed proprietary equipment and processes to deliver the first fresh cut onions to the market. Before then, the only way to wash, peel, slice and dice onions was laboriously by hand. The company has since grown to become one of the nation’s largest family-owned onion growers and now operates one of the largest, most innovative and sustainable fresh-cut onion processing plants in the world—handling every aspect of production from growing, harvesting, processing, packing and shipping freshly diced onion packages to retailers and manufactures.

Gills Onions continues to lead the industry in innovation and technology with its sustainable platform. In an effort to further provide high-quality fresh market produce, reduce production costs and substantially reduce their carbon footprint, the Gills developed a system that uses onion processing waste to generate electricity. To combat the 35 percent waste factor in onion processing, Gills Onions built an Advanced Energy Recovery System (AERS) in 2009 that converts juice from onion byproducts into electricity for the processing plant. The technology eliminates disposal costs and saves approximately $500,000 annually in power costs.

In his most recent conservation efforts, Gill went “off-grid” and installed a massive solar installation at Rio Farms last year. The system is expected to provide more than 1.76 million kilowatt hours of solar power annually, which is enough power to fuel 110 homes a year.

Gill’s sphere of influence in the produce industry reaches beyond Rio Farms and Gills Onions. His visionary leadership has also played an integral role in the success of Growers Express, True Leaf Farms–Church Brothers Farms, American Farms, G&H Farms and Mission Ranches, growing the capacity of each company to bring fresh produce to the state, nation and world—and he continues to inspire other industry giants.

“I first met David in 1971 when we were both playing intramural football at Cal Poly,” said Steve Barnard, president and CEO of Mission Produce Inc. and Gill’s longtime friend and colleague. “David is one of the most generous, successful and unassuming champions in our industry.”

Gill is now looking to impart his philosophy of perseverance, as well as his dedication to keeping America’s food production strong and viable, onto the next generation of leaders. “My biggest mentor was my dad. I remember watching him navigate through life in a calm, organized manner—always treating people right and going out of his way to make them feel special,” said Gill. “Any spare time he had, he would volunteer in the community. Volunteering is something our family did and continues to do.”

Gill currently serves as chairman of the board for the First Tee of Monterey County and is an avid supporter of King City Young Farmers, Boy Scouts of America and the Future Farmers of America.

“David is the most generous person I know,” said Jamie Strachan, CEO at Growers Express. “His sense of giving to kids, community and industry is matched only by his competitive will and his unrelenting talent for negotiation. These remarkable combinations make him a revolutionary force in our business.”

Gill has recently put in extra time with the First Tee of Monterey County, where he helps at-risk youth discover successful pathways in life, away from the typical violence or gang activity they are used to seeing in their communities. Through mentorship, he introduces children to the nine core values of the program that represent some of the many inherently-positive values connected with the game of golf: honesty, integrity, sportsmanship, respect, confidence, responsibility, perseverance, courtesy and judgement.

“By interacting with fourth, fifth and sixth graders through fun activities such as golf and regularly practicing the nine values, I can expose them to positive experiences early and show them the different directions in life they can take,” said Gill.

Similarly, he also has a hand in guiding college students toward a fruitful career in agricultural or other vocational paths as the chair of the Hartnell College Ag Steering Committee. He is leading the charge in developing curriculum that cultivates students’ skills in everything from fabrication, welding and diesel mechanics to food safety, tractor maintenance and refrigeration technology so that when they graduate, they will have the training they need to excel in the workplace.

“The most importance piece of advice I give is that you can’t be afraid to make a mistake. Failure is something that happens, and if you want to succeed in farming or any other career you pursue, you need to take risks. I have had a number of failures, believe me; but the successes have outnumbered the failures,” said Gill.

To celebrate his achievements and service to the industry, Western Growers will honor him with the 2017 Award of Honor during the 92nd Annual Meeting on October 30, 2017, in Las Vegas, Nevada. The Award of Honor is Western Growers’ highest recognition of industry achievement and is given to individuals who have contributed extensively to the agricultural community.

“David’s compelling life story and incredible achievements are a testament to his commitment to agriculture,” said Tom Nassif, president and CEO of Western Growers. “His drive and perseverance is inspiring, and his impact will echo throughout the industry for years to come.”

Gill has been a strong advocate for the industry, routinely reaching out to Congress and the California Legislature on ag’s most pressing concerns such as labor, water and regulatory compliance issues.

He is deeply engaged in the industry and actively participates in leadership roles within the Grower-Shipper Association of Central California, California Farm Bureau Federation and Produce Marketing Association. Elected to Western Growers Board of Directors in 1991, and serving as chairman in 2001, Gill continually inspires his friends and colleagues to give back to the industry and community. He has triumphed over personal and professional hardships to become one of the agricultural industry’s most distinguished pioneers, and there is no one more deserving of the 2017 Award of Honor.

“I’ve seen the caliber of individuals who have received this award in the past, and I’m truly honored to be this year’s recipient. I’m the kind of person who keeps his head down and does what I feel is right—working hard, doing a good job and treating people with fairness and respect. I’m humbled by this honor, and it’s an incredible privilege,” remarked Gill.

The award will be presented during the Award of Honor Dinner Gala, where he will be revered by his peers, friends and family. To attend the ceremony, visit http://www.wgannualmeeting.com.

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One Hundred Latino Republicans, and Counting

July 20th, 2017

Observers of California politics often preface their analyses by reminding us that “demographics are destiny.”  The original source of this quote is disputed, but few doubt its logic. In the last few years, Latinos moved past non-Hispanic whites to capture the largest share of the state’s population, and the trend appears to be increasing such that Latinos will soon constitute the majority. This demographic fact leads some Republicans to despair for the future of their already-reduced position in the Legislature and in other elected offices.

But maybe we should be a little more skeptical of the certainty implied by the assertion that demographics are destiny. Why, for example, should we assume and accept the premise that Latino voters in California will forever monolithically refuse to support Republicans?

Recent history paints a very dark picture for California Republicans, of course. Latino voters have, in fact, been largely antagonistic, if not monolithic, toward Republican candidates. Republican leaders and core constituencies of the party have been testing any number of strategies to make a new appeal to Latinos. Most fall in the category of “messaging,” that is, communicating to Latino voters in a different way that presumably establishes connection on issues like education, crime and jobs. There is value in these efforts, but experience so far suggests much more needs to be done.

That’s where Ruben Barrales comes in. He is the son of Mexican immigrants (his father was a bracero) who became the first Latino county supervisor to be elected in San Mateo County. During his two terms (1992-2000), Barrales focused on founding one of the state’s first charter schools in a predominately Latino neighborhood in Redwood City, implementing aggressive strategies to attack rampant gang crime in East Palo Alto, and imposing a debt cap on the county. President George W. Bush later appointed Barrales as Deputy Assistant to the President and Director of Intergovernmental Affairs in the White House. He later went on to lead the San Diego Regional Chamber of Commerce.

What came next is even more interesting. About five years ago, Barrales launched GROW Elect, a political action committee focused on recruiting and training Latino Republicans to run for local offices, providing campaign expertise, and funding campaigns to help them win. Today, more than 100 Latino Republicans hold local elected office (and one state Assembly seat) thanks to Barrales’s vision and hard work.

A self-described “center-right” Republican, Barrales imposes no ideological or issue-specific litmus tests on the Latino Republican candidates his organization supports. As a former Democrat, he seems to keenly understand the value in welcoming a diversity of opinion into the Republican tent. As he explained to one reporter, “Naturally as a young adult, I was a Democrat until I realized, looking around my community, that the lack of competition didn’t provide the kind of attention my barrio needed. Latinos should not allow their vote to be monopolized by one party.”

I recently met one of GROW Elect’s successful alumni. Ceci Iglesias won election to the Santa Ana Unified School District Board in 2012 and was reelected last year in spite of an aggressive union-backed campaign that tried to link her to President Trump in a district that is overwhelmingly Hispanic. It didn’t work, she says, because she worked hard to talk to voters directly, as a Latina, about the education issues they care about. Consequently, Latino parents dissatisfied with the quality of the public schools in Santa Ana now have a charter school champion on the school board. Whatever Ms. Iglesias’s future holds, she has already made a difference by challenging the status quo in public education.

In most cases, Latino Republican candidates supported by GROW Elect are heavily out-gunned in terms of campaign funding; unions are quite aware of this program and have immense war chests. But what Barrales and his team have proven is that Latino Republicans can win in places where Republicans haven’t succeeded in a very long time by being issue-focused and authentic, and by working exceptionally hard at retail politics—the demanding work of knocking on doors, showing up at community events, and calling voters.

In what amounts to a one-party state, could this effort to create a farm team of Latino Republicans make a difference? House Majority Leader Kevin McCarthy, a supporter of GROW Elect, says, “We are all better served when there is a vigorous and real two-party system, with candidates vying for the votes of, and seeking to represent, all Californians.”

Demographics may indeed be destiny. More than 100 Republican Latinos serving on city councils, boards of education and other elected offices across California are doing their best to shape their own destiny.

Go to www.growelect.com for more information.

 

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Protecting Seed Technology

July 20th, 2017

If developing new technology in the ag space is the first step, right behind it is protecting that intellectual property right so that it can be monetized by the inventor and utilized by the industry.

Protecting the work of plant breeders has been an ongoing concern for generations, but now that new technologies are being used and products introduced at an even faster clip, that protection has taken on an added sense of urgency. In 2011, the issue was discussed by members of the American Seed Trade Association (ASTA) and the result was the launching of the Seed Innovation and Protection Alliance (SIPA) to create a unified and consistent voice for education and best practices around intellectual property protection in the seed arena.

James Weatherly, who is the executive director of the Denver, Colorado, based organization, has become the one-person staff for the SIPA. In a sentence, the association sees its singular job as being “solely focused on innovation and intellectual property issues in the seed industry.”

Weatherly recently discussed the issue with Western Grower & Shipper and stressed the importance that ag community members be educated on the topic and know their rights and responsibilities. In fact, he said the forming of the group was incentivized by the “distinct lack of information about innovation.” He said the agricultural industry is fast moving and there is much work being done with regard to new seed technology, new planting technology and innovative seed treatments.

“Our goal is to get the word out concerning new innovations coming down the pike.”

SIPA is available to help innovators learn how to protect their innovations and it is also there to educate growers as to their rights and responsibilities in buying and using new seed technology. For the most part, Weatherly said the industry is aware of the issue, but there are always those who are uninformed and others who just don’t care.

Making it a bit more difficult, he said is the fact that there are rarely black and white answers. Every situation is different and types of protection are also different. There are various types of intellectual property (IP) protection. There are limited use agreements, Plant Variety Protection (PVP) and patents. Each comes with a different level of protection.

In general, Weatherly said growers should be aware that the purchasing of IP protected seed to grow a crop is often a one-time use. A grower basically is not allowed to save some of the seed, plant it and harvest a seed crop for use in future production. That same principle applies within seed companies and academic institutions. Weatherly said those protections are not always evident to the user and it is one of SIPA core responsibilities to educate the industry about this topic. It does so through articles such as this as well as attendance at industry conferences, shows and events, and through direct inquiries from growers.

Typically a seed purchase comes with a label indicating its level of intellectual property protection, but the SIPA executive said first and foremost growers need to ask the question. They need to ask their seed suppliers what they can and can’t do. And for the gray areas, SIPA is available to answer any and all questions.

Weatherly said specific coatings and even planting techniques can be and have been protected. Again, he said SIPA is available to not only point out wrong doing but to help innovators protect their own new technologies. The organization includes seed companies, growers, producers, authorized dealers, brokers, suppliers, service providers, universities, as well as state agencies.

More information is available on the organizations website at seedipalliance.com.

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LEGISLATOR PROFILE: Assemblyman Devon Mathis Representing California’s 26th Assembly District encompassing Tulare, Inyo and parts of Kern counties

July 20th, 2017

You were born and raised in the California’s Central Valley. Tell us a little bit about your family and your life growing up.

I was born in Porterville into the Jarvis family. The family had agriculture roots in California extending back at least four generations. Growing up we mostly had animals on our farm including goats, chickens, peacocks and horses—a little bit of everything if you will. The family itself is very large and tight knit, and I am the middle sibling of nine brothers and sisters that are part of extended families. My dad was, and still is, in the oil and trucking business and after my mother and him split up, he moved to Texas. She remarried and ended up on five acres at an elevation of 4,000 feet east of Orange Cove which is where I lived.

I attended Miramonte Elementary, Dunlap Jr. High, and Reedley High School, which was about a 90-minute drive, one-way, from our house. In junior high, I started my own handy-man business. That kind of work is especially rewarding since you regularly get to see the fruits of your labor. I think it is one reason I appreciate agriculture so much. I also participated in Boy Scouts and worked a lifeguard at YMCA camp at Lake Sequoia and at Wild Water in Clovis.

In high school, I was the captain of a small debate team and also participated on the water polo and swimming teams. Though I enjoyed sports, I learned it was more satisfying to debate. I enjoyed developing logical policy arguments that could help win debates for both the team and for me personally. I found it fun to win arguments through words. Plus, being from tiny Reedley, we were always underestimated, something I feel I have been my whole life.

 

You are a Purple Heart recipient who served your country as a sergeant in the Army National Guard for over 10 years, having done two tours in Iraq. We are indebted to you for your service and sacrifice. Can you tell us about your military experience? Do you come from a military family?

Yes, not only a military family, but also one dedicated to public service. My older brother, for example, graduated from West Point because he wanted to serve and later switched services and ended up in the Navy. I looked up to him so I joined the Army National Guard right out of high school. Several other family members over the years have been involved in civil or public service, so part of me felt compelled to serve. I guess you can say we have a “family culture of service.”

And it just wasn’t my family. Many families in Porterville had sons and daughters who served in various capacities. In fact, if I’m not mistaken, Porterville has one of the highest—if not the highest—number of veterans in any county in the country who were Killed in Action (KIA) or Prisoners of War (POWs). So serving was quite a natural thing to do in that area.

In high school, we never talked about what we were going to do after school. I was never quite sure until the time came. Joining the Guard was a good way to not only serve, but a good way to pay for college. I went to basic training in Oklahoma in 2001. I was there during 9/11. In basic training, they are prepping you to go to war, but after 9/11 happened, we knew it was only a matter of time when we would be seeing action.

One thing they drill into you in training is to “Shoot, move and communicate.” It’s a valuable lesson. If you don’t know how to communicate, you don’t know what to shoot at or where to move to. That applies to just about everything you do. This, along with the Boy Scout motto of, “Be prepared,” are two important lessons I carry with me through life.

While in the Guard, I moved up through the ranks fast and always found myself in a leadership position because I learned quickly and I ‘got it.’ It’s in my nature to always get things done and in military, if you got things done, you move up and get better responsibilities which means you are leading instead of doing grunt work.

 

Did your distinguished service in the Army National Guard influence your decision to serve in elected office? Tell us a little bit about your ideology, how you got to where you are now and who inspired you.

It affected me big time. I am very conservative, love the Constitution and I’m all about getting it done. That’s how I was in the service and that’s what I want to do for the region I represent. I didn’t come from a very rich family. I grew up in one of the poorest districts in the state and I want to change that for the people there. I had many inspirations, but my grandmother certainly influenced me. She was very political and many of my beliefs and positions I have come from her. I also think the time I spent on the debate team prepared me for holding this office.

 

You serve as vice chair of the Agriculture Committee in the California Assembly. What legislation is being considered that has the potential to help or hurt the ag industry?

There are lots of bills that affect agriculture. The hard part is that the majority of bills that affect ag, don’t go through the Ag Committee. They go through committees like Natural Resources, Labor, and Water and Parks and Wildlife. I also happen to sit on that committee. I do what I can to help the industry on bills that come through my committee and of course any bills that the Assembly votes on.

 

Earlier this week, the Assembly voted on AB 450, a bill that puts private employers in a no-win situation between federal immigration enforcement and state enforcement by punishing employers who voluntarily comply with federal authorities. Can you tell us your thoughts about that egregious legislation?

That bill is all about the left side of the political spectrum going after President Trump. The bill is nonsense. If another candidate was elected, would all this be going on? It’s truly asinine and it does not serve the people well.

 

What are the biggest issues or challenges in your district?

Water is by far the number one issue that I have worked on. Unfortunately for the general public, the really heavy policy stuff isn’t very sexy. Often times, the news about what we are doing, say for instance about a establishing a grant/loan program to get wells or septic systems fixed, doesn’t always get picked up by the regional media outlets. It can be really hard to get the word out. We rely on social media to reach people and we have one of the better followings in the whole Republican Caucus.

 

What advice would you give farmers who are fighting the “good fight” on the federal, state and local levels about the best way to convince policymakers that they are not the bad guys?

The UFW represents a very tiny fraction of the state’s food and ag workers, but they seem to have a big voice. It’s sad that a minority of people can have that much influence in the Capitol and we have to ask ourselves, “Why is that the case?”  The core definition of politics, I think, is using communication to get what one wants. For some reason, they seem to be able to appeal to the emotional side of an argument while we try to have logical policy discussions to work through issues. While we are doing that, they are bringing busloads of people to the Capitol with emotional pleas. Emotional messages seem to resonate better with legislators and the public and I think that is key. We are just not as good as that. We need to get better.

 

Tell us something about yourself or your family that a lot of people don’t know about.

For me on a personal level, I have a thirst for knowledge. I watch channels like the Discovery Channel to see how things are made and learn about them. I find it fascinating. I love studying human nature and culture as well.

One thing related to my work as an assemblyman that I enjoy doing is going out seeing how people run their operations because everyone does everything a little different. Hearing it from the horse’s mouth and having ‘boots on the ground’ is important. I love that. I’ve been to operations that grow pistachios, citrus, strawberries, peppers, green beans, stone fruit operations, and even chicken farms. So if anybody would like me to come out and take a tour, contact my office. I’d love to come out.

 

As the nation’s leading agricultural state, California produces a wide variety of fruits, vegetables and tree nuts. What are some of your favorites?

I have always been a pistachio and broccoli fan. In my bachelor days, I’d get a steak and cook it up with steamed broccoli with cheese. Of course because where I am from, citrus is a big favorite too. Not long ago I was afforded a tour of citrus orchards by WG Board Member Tom Mullholland. What a wealth of information he is and what a great family. He had me eat a mandarin right off the tree. It was the sweetest mandarin that I ever had. My kids love them too. If you put mandarins in front of them, they will just devastate them.

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Options to Maximize Retirement Income

July 20th, 2017

 

One of the most difficult conversations I have with my clients nearing retirement age is how much fixed income investments will pay them during the course of their retirement years. The most common question these clients ask me is: “What can I expect to earn on my money without risking too much?”

I proceed to tell them: Low-risk fixed income investment options range from FDIC-insured Certificates of Deposit (CD), which currently average 1.75 percent, to U.S. Treasury Bonds (T-Bonds), which currently pay between 1.34 percent for a two-year bond and 2.68 percent for a 30-year bond. By historical measures, these yields are very low, and many professional fixed income traders believe these low yields may be here for the foreseeable future.

Given the historically-low interest rate environment, which may limit the earnings potential of fixed income assets like CDs and T-Bonds, some retirees may wish to pursue additional options to provide greater return on their investments and maximize their retirement income, while maintaining a relatively low-risk portfolio.

 

OPTION #1: INVESTMENT GRADE CORPORATE BONDS

First, a bit on corporate bonds. In order to fund short- and long-term financial obligations, or to invest for growth, a corporation will issue debt to investors. These corporate bonds, which grow over time like a corporate stock, will typically offer an investor a greater yield than T-Bonds. They are issued at a fixed rate of return and generally have a date of maturity, at which point the corporation will return the original principal to the investor. Household names like Proctor and Gamble, General Electric, Microsoft and Apple all have corporate bonds available for investment.

While corporate bonds carry more risk than their government counterparts, and are subject to interest rate risks, they are generally considered safer than stocks and may have less principal fluctuations. To further dilute risk, an investor can buy a mutual or index fund containing hundreds of corporate bonds, such as the iShares Investment Grade Corporate Bond Fund (LQD), which has high liquidity and diversification. Over the last year, LQD has averaged a yield of 3.16 percent, far superior to short-term CDs and T-Bonds.

 

OPTION #2: INVESTMENT GRADE PREFERRED STOCK

Not all types of stock ownership are created equal. Preferred stocks represent a corporate ownership structure that, while lower in class than senior investment grade bonds, is higher than the interests of common stock holders. These types of stocks usually pay a fixed rate of interest, and preferred stock holders must be paid a dividend before common stock holders. The majority of preferred stocks are issued by financial institutions and utility companies.

Preferred stock dividends have been historically secure, and provided interest rates and economies remain relatively stable, they should continue to provide low-default options for retirement portfolios. Additionally, with increasing federal regulations and financial institutions becoming increasingly well-capitalized, many professional investors are gravitating toward preferred stocks.

Just as with corporate bonds, individuals can invest in a basket of preferred stocks, too. One common index fund is the iShares Preferred Stock Index Fund (PFF), which holds nearly 300 preferred stocks and has rewarded investors with a 5.6 percent return over the past 12 months.

 

OPTION #3: VARIABLE (FLOATING RATE) CORPORATE BONDS AND NOTES

These types of securities are considered a hybrid between fixed and floating interest rate dividend investments. While corporations do not issue them as much as investment grade bonds or preferred stocks, variable corporate bonds have been around for decades. These types of investments generally perform better in rising rate environments, because as interest rates rise, so does the yield.

Here’s how they work. A corporate issue may offer the investor a “floor” on the dividend. For example, a corporation issues a bond promising to pay the investor no less than 4 percent per year; however, should interest rates rise relative to some established benchmark (such as the Federal Funds Rate or LIBOR), the corporation promises to pay the investor additional interest. Some investors consider variable corporate bonds to be a protection or “hedge” against fixed-rate bonds and investments, which decline in value as interest rates rise.

One of the more widely available variable corporate bond funds is the PowerShares Variable Rate Preferred Portfolio Fund (VRP), an index fund that represents over 110 securities and has paid the investor a 4.79 percent yield over the past year.

 

OPTION #4: MASTER LIMITED PARTNERSHIPS (MLPs)

Finally, let’s look at master limited partnerships (MLPs). MLPs have historically been listed as common stocks that pay out a minimum dividend to the investor, and are traditionally popular among commodity-producing corporations in the oil and gas industry. While MLPs have generally been more volatile than investment grade corporate bonds and preferred stocks, they have also paid much higher dividends. The Alerian MLP Infrastructure Index Fund (AMLP) holds over 25 different corporations and has paid its investors 7.92 percent on average over the past 12 months.

Understandably, most retirees prefer to minimize risks in their investment portfolios, which gravitates them toward fixed income options such as CDs and T-Bonds. While these fixed income investments provide the intended security, it may make sense for them to diversify their mix of investments to hedge against the fluctuating and unpredictable interest rate environment, helping them help maximize their income during their retirement years.

You spent your life saving up for retirement, make sure your money continues to work for you. Western Growers Financial Services (WGFS) can provide you with a personal retirement assessment and help you craft a diversified retirement portfolio that both protects and grows your hard-earned dollars. For more information, contact Matt Lewis, WGFS President, at (949) 885-2379 or [email protected].

 

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Corporate Health and Wellness Centers – A Viable Option to Saving On Health Care Costs

July 20th, 2017

Sixty years ago, Western Growers Association launched the agriculture industry’s first program allowing agribusinesses to easily offer health plans to their employees: the Western Growers Assurance Trust (WGAT). Today, WGAT is the largest provider of health benefits for the agricultural industry specializing in highly customizable benefit plans to meet the diverse needs of owners, managers, field workers and seasonal employees. The Cedar Network, which features our four Cedar Health and Wellness Centers, is part of WGAT’s offerings.

We started including the Cedar Health and Wellness Centers and associated Cedar Network in every WGAT health plan five years ago to further deliver exceptional care options with lower copays than standard plans. With the annual cost of employer-sponsored family health coverage continuing to climb, we recognized that more needed to be done to control costs. As of last year, the Kaiser Family Foundation 2016 Health Benefits Survey indicated that premiums have reached $18,142 per family.

As I mentioned in the May-June issue of Western Grower & Shipper, by offering a company-sponsored health and wellness center to your employees, you save on health plan premiums and improve the overall health of your workforce. For example, a corporate health and wellness center can:

•   Help an employee manage (or better manage) a chronic condition. Local health centers make it more affordable for employees to meet with a doctor to make sure they are in compliance with their medication and on track with their treatment plan. Did you know that one chronic health condition, such as diabetes, is costing the U.S. economy more than $245 billion each year? According to the American Diabetes Association, direct medical costs are more than $176 billion and average medical costs more than double for someone who has diabetes as compared to someone who doesn’t.

•   Help decrease the use of more costly urgent care centers and emergency rooms. Studies show that employees with access to a local health and wellness center will use an urgent care center or emergency room less than working at a company that doesn’t offer that option.

•   Encourage employees to get their regular preventative screenings by making it easier to visit their local health center than seeing their regular doctor and for a lower copay. These screenings can also help a doctor catch potential chronic health conditions in the early stages when the treatment cost is far less than if the condition has progressed.

•   Make it easier for employees to see a physician when they have a cold or flu. This allows the employee to recover quicker, maintain productivity and take less days off from work than if they didn’t see a doctor because it was less convenient.

As executive vice president of the WGAT health plan, I am pleased with the success I have seen our clients experience when they have utilized the Cedar Network, especially when they have encouraged employees to use their local Cedar Health and Wellness Center. For example, one of our clients who incorporated a Cedar Health and Wellness Center benefit, enjoyed substantial savings on medication costs. Analytics showed that 92 percent of the medications that were dispensed at the health center were generic, with an average cost of $10.29 versus $104.63 for the brand medication. This center also received a 92 percent employee satisfaction rating on internal corporate surveys that showed it was a win-win for both employees and employer. As I mentioned earlier, the Cedar Network is included in every WGAT health plan and self-funded employers can purchase the network as an add-on to their benefit plan.

These financial savings really add up for an employer, which is why the trend for implementing an onsite or near-site health center has continued to grow in popularity. An employee benefits survey reported that while larger employers are leading the way in implementing onsite and near-site health care centers, small- and mid-size employers are implementing these centers too, and the numbers are increasing each year. The findings showed that, of those interviewed, 24 percent of employers with 3,000 or more full-time employees offered onsite health centers in comparison to 14 percent of employers with 100-2,999 employees and 9 percent of employers with 100 or less employees.

Just think of all the ways an employee can be healthier by having easier and more affordable access to a corporate health center. The benefits include going to the emergency room less often, receiving earlier treatment for illnesses and injuries and reducing the number of absences at work due to illness. Studies also show that employees’ loyalty improves for companies that offer a wellness program and/or corporate health center, which can attract talent and increase retention. These benefits translate into real savings for you as an employer. And who isn’t cost conscious these days!

For more information on purchasing a WGAT health plan, which includes access to our Cedar Health and Wellness Centers, please contact Western Growers Insurance Services at (800) 333-4WGA.

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AG INNOVATIONS: Companies Abound with New Technology to Explore

July 20th, 2017

Ag technology is the new buzz word and most suppliers operating in this space currently have cutting edge products on the market, in production or on the drawing table.

There are certainly many other firms operating in most disciplines and every grower-shipper is encouraged to call your supplier or distributor and find out what’s new. Solutions to your biggest challenges may already be available. Here are several innovations to consider.

Acuity Agriculture: Headquartered in San Francisco and founded two years ago, this irrigation specialist is the brainchild of water expert Steve Dodge and his engineer partner John Zahng. The company has developed a wireless system to collect field data with regard to soil moisture which can be accessed remotely in real time by a hand-held device. “We are trying to become your pocket consultant,” said Dodge. “What we have done is simplified the data so it is easy to understand and very affordable. We can offer this information at a fraction of the cost of other providers.”

The company goes into a field with a grower, discusses his or her needs as they relate to salinity, soil moisture and climate monitoring. A data logger is developed and a dashboard is created and loaded on the growers iPhone, iPad or other device. From that dashboard, the grower con constantly monitor those inputs and remotely manage those processes.

Dodge said what he brings to the table is a grower mentality. He has been a grower and knows the specific information they need to cut through the clutter and make informed decisions with regard to their irrigation system.

Food Origins: This firm is a data-driven company that works with growers to assess the impact of potential innovations. Recently, it helped a berry grower realize he could pick faster and more cost efficiently using a machine rather than simply hand picking. Nathan Dorn said the company followed 10 workers for a week, collecting hand-harvesting data from each worker. The next week, a harvesting aid was employed and harvesting data from the same workers was again collected. Workers were able to harvest 40 percent more fruit in the same time frame. Food Origins then presented the data to the strawberry grower, who determined that an investment in $1 million worth of equipment was a sound financial move. “That’s what we do,” Dorn said.

North American Pipe: It’s a stretch to call it “new technology,” but PVC pipe with compounds that make it both UV and shatter resistant is an older innovation that is currently making headway in agricultural irrigation. Brad Pinnell, senior territory manager for agriculture for company, said the industrial side of the business world has been using this pipe for a long time, but it has been slow to come to agriculture.

Designed to replace aluminum piping, Pinnell said the chemical compounds added during manufacturing that produce the UV and shatter resistance is what makes this iteration of PVC suitable, and he believes superior, for irrigation. The minimal weight allows for easily moving the pipe in the field producing savings on labor and causing less of an impact on field operations. The pipe, with its patented locking connections, also greatly reduces leakage.

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WGCIT SPONSOR: Hayashi Wayland: Accounting Experts for Agriculture

July 20th, 2017

In 1976, a couple of accountants—Douglas Hayashi and Warren Wayland—launched their firm in Salinas, California, and naturally matriculated to the agricultural industry as the number one industry in town. Forty-one years later they are still serving that constituency and have become ag accounting experts. So much so that they are a sponsor of the Western Growers Center for Innovation and Technology (WGCIT).

Gina Cochetti, partner in charge of the tax department for the firm, said the ag connection is not by accident as the firm nurtures the relationship. She personally received her undergraduate degree in agricultural business management, which is not rare for the firm’s employees. Cochetti and Business Development Manager Lynn Schrock recently sat down with Western Grower & Shipper to discuss the advantage of dealing with ag-centric accounting professionals and also explore the firm’s interest in ag innovation and technology.

The company has 80 employees, including 36 CPAs (certified public accountants) and three offices in Monterey County with another in Paso Robles. Schrock said that agriculture is unique and farmers have distinct needs that only an ag specialist knows.

“We can talk their lingo,” Cochetti added, noting that when growers talk about their businesses, there are nuances that a non-ag tax advisor won’t understand. For example, she said very few industries have different entities intertwined like they are in agriculture. Many companies and their principals have multiple partnerships and multi-tiered entities under one roof. “That’s unique to agriculture and we understand it. We can unravel it because we deal with it all the time.”

She said there are other aspects of tax law where the firm’s accountants can bring information to the table that some agriculturalists might not know. She said research and development credits are a great example. Under tax law, R&D, in many instances, can be taken as a credit as opposed to a business expense, which is less benefical. “Many people think R&D credits are only available for new technology but that’s not true,” Cochetti said. “Ag can use these credits for many different R&D projects. If you are experimenting with different size beds or planting an experimental crop, you can get an R&D credit for both your federal and state return.”

She said the credit has been in existence for many years, but just recently the regulations were loosened making it available to more firms with R&D projects. It is this type of knowledge that Cochetti believes makes the company a perfect fit for any ag firm.

Schrock said Hayashi Wayland got involved in the WGCIT sponsorship as a way to help innovators launch their ideas and form business entities to capitalize on the technology being developed. Often, she said these innovators are tech-savvy but do not have the same expertise in creating a business. “We can help them from the start,” said Cochetti. “It’s a lot easier to set up a company correctly at the outset than to unravel the business later.”

Schrock noted that some of these tech wizards get deeply involved in development and forget to file their taxes or take care of the business end of the new entity.

She also pointed out that Hayashi Wayland has an alliance with RSM, the fifth largest accounting firm in the world. The alliance allows the Salinas firm to have access to expertise that may go beyond the skill set of the local company. “That gives our clients the benefits of a small local firm with access to national resources. Our back office is enormous,” she added.

Working in agriculture, Hayashi Wayland has also had to work closely with the satellite operations of their clients. Every year, teams from the firm go to the desert and Mexico to make physical observation of their clients’ other facilities.

With regard to WGCIT, Schrock said the company is on tap to make a presentation to the tenants with regard to their business obligations but had not scheduled that as of this interview. It’s a value-added opportunity for tenants and sponsors alike.

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Cause for Concern Over Organic Fertilizer Made from Food Waste?

July 20th, 2017

By Stephen Meyer & Thomas Marrs

In December 2016, the National Organic Program (NOP) issued guidance 5034-1 that can be interpreted as approving of food waste for use in organic crop production (for example, as an input in fertilizer) without regard to whether such waste contains prohibited synthetics, posing potential risks to investments relying on this guidance as well as to the organic brand itself. Combine this with the absence of guidance, regulation, uniform definition, or oversight by the NOP of the rapidly expanding use of anaerobic digesters to process food waste, and the risks are further exacerbated.

The idea that organic crops may be produced with inputs containing synthetics recently made news for a different reason. In June 2016, in a decision that generated much interest in the organic industry, a court vacated NOP guidance that approved of green waste compost containing the synthetic Bifenthrin, a residential insecticide, for use in organic crop production.

In light of the NOP’s more recent guidance that affirmed the use of numerous substances, including food waste, the scrutiny of the inputs that are used to create organic crops deserves renewed attention. Several companies are investing significantly based on the assumption, or the hope, that fertilizer produced with food waste is or will be approved for use in organic crop production. In fact, several companies are already selling organic fertilizer made from food waste for use in organic crop production.

To the extent the NOP 5034-1 is interpreted as a blanket approval of food waste that fails to distinguish among the substances within the food waste, one could argue that it is inconsistent with the Organic Foods Production Act of 1990 (the “OFPA”), which generally prohibits the use of synthetics in the production of organic crops. More clarity is needed regarding the use of food waste as an input in fertilizer used in organic crop production. In the interim, organic food producers should be cautious about using fertilizer created from food waste.

 

NOP’s Subsequently Vacated Guidance Regarding Green Waste

On June 20, 2016, a federal district court invalidated NOP Guidance 5016: The Allowance of Green Waste in Organic Production Systems. In that case, the court granted Western Growers amicus status in the lawsuit.

NOP 5016 was issued to address the problem that composters cannot always control their green waste feedstock and that synthetics can find their way into the composting. The pesticide Bifenthrin (a prohibited synthetic) was increasingly found in green waste compost sold for organic crop production, and a complete ban of synthetics was not seen by some as practical.

NOP 5016 was a compromise. It allowed pesticide residue so long as the green waste was not subject to direct application of prohibited substances during the composting process and that any residual pesticide levels do not contribute to the contamination of crops, soil or water. NOP 5016 defined “green waste” to include “domestic and commercial food waste.”

The federal court held that NOP 5016 violated the Administrative Procedures Act, and the court issued an order of vacatur effective August 22, 2016. This essentially put the composting industry in the same position that it was in prior to NOP 5016. The vacatur of NOP 5016 demonstrates the inherent risk in relying on NOP guidance that may be inconsistent with statutes.

 

The Food Waste Problem

“Food waste” is a general term for the unused portion of our food supply, including food from retailers and consumers. An estimated 40 percent of the U.S. food supply, or 133 billion pounds annually, is wasted. This discarded food waste constitutes the largest part of our landfills and its decomposition is the third largest source of methane emissions. Not surprisingly, converting food waste to energy in the form of methane and subsequently a fertilizer rather than letting it rot in landfills has generated considerable interest as a solution to the environmental food waste problem.

 

Anaerobic Digestion

Anaerobic digestion is one method of transforming food waste into fertilizer products. Anaerobic digestion is a collection of processes by which bacteria break down biodegradable material in the absence of oxygen. The process can be used to manage waste and produce fuels. Feedstocks can include biodegradable waste materials such as waste paper, grass clippings, leftover food, sewage and animal waste. The primary products of anaerobic digestion are biogas, digestate and water.

Although the process of anaerobic digestion is not new, its use on an industrial scale has increased exponentially since 2000. The Organic Materials Review Institute (OMRI) recently noted that the rapid growth of the anaerobic digestion industry has resulted in a “sharp increase in [organic] applications submitted to OMRI for [anaerobic digestion] derived products.” OMRI also noted that most products derived from anaerobic digestion do not meet NOP’s criteria “for compost or processed manure, even if they are pathogen free.”

For industrial production, food waste is dumped into large, sealed tanks that look like silos. The digestion of food waste produces a biogas consisting of methane, carbon dioxide and traces of other gases that can be used as a fuel. For example, in Oakland, the East Bay Municipal Utility District uses anaerobic digestion to turn food waste into energy.

The anaerobic digestion of food waste also results in nutrient-rich liquid that can be used to make fertilizer. The remaining solids can be dried and used as a soil amendment but also has other applications such as bedding. This begs the question whether fertilizer created in this manner is suitable for use in organic crop production.

 

The Controversy Over Creating Organic Fertilizer From Food Waste

The organic industry is flourishing. The industry’s annual double-digit growth can be attributed, at least in part, to the public’s belief that chemicals and synthetics can be harmful to human health and the environment, and the public’s perception that organic foods are free of such substances.

Marketing fertilizer created from food waste for use in organic crop production can be very lucrative, as well as environmentally beneficial. Companies have therefore started using anaerobic digestion to generate organic fertilizer from food waste while enthusiastically claiming that they can earn a healthy profit doing so while helping the environment.

A February 2017 New York Times article focused on American Organic Energy (AOE), which boasts plans for the largest anaerobic digester east of the Mississippi, capable of processing over 180,000 tons of food waste annually. The article quoted AOE’s self-described process of breaking down the food waste using machinery that “would crush the cans and bottles that would inevitably ride in with the food; metals would be extracted and packages shredded, and with the addition of water, random plastic would float to the top of the tanks while glass and grit settled to the bottom. ‘We know we’re gonna get loads from supermarkets with unopened tuna cans and expired bacon packages…while residential food is going to be in a plastic bag with a soup can or broken glass in it—that’s the way Americans throw out their garbage.’”  The article continued that AOE’s philosophy “was diametrically opposed to that of community composters, who insist that participants honor and defend the integrity of their organics, down to the removal of tiny stickers from lemons and limes.”

Anaerobic digestion is not the only way to convert food waste into fertilizer. Other companies are finding novel ways to convert food waste into fertilizer for use in organic crop production. California Safe Soil (CSS) recently opened a production facility in McClellan, California to recycle 32,000 tons of food waste per year and change that waste into fertilizer for 128,000 agricultural acres using its patented technology. CSS has also partnered with the Sacramento Kings to collect food waste (such as lettuce or pizza dough) from the restaurant and food operations after Kings games and other events at the Golden 1 Center, for use as a fertilizer input.

Other companies are following suit and using food waste to create fertilizer. WISErg Corporation (WISErg), located in the Seattle area, already sells an organic fertilizer made from food waste. Both OMRI and the California Department of Food & Agriculture (CDFA) have approved several of WISErg’s fertilizer products made from food waste for use in organic crop production.

 

Organic Products Are Generally Presumed Free Of Synthetics

Organic agriculture is governed by the general rule that natural substances are allowed while synthetics are prohibited. However, organic products are not, and have never been, completely free of synthetic and artificial ingredients. To be labeled “organic,” a product need only comply with the legal framework, which allows synthetic and artificial products to be used in organic farming under certain, limited circumstances.

The OFPA required the establishment of an organic certification program, the NOP, for products that have been produced using organic methods. The OFPA also established standards an agricultural product must satisfy to be sold or labeled as organic. Among other things, the agricultural product must “have been produced and handled without the use of synthetic chemicals, except as otherwise provided in” the OFPA.

The OFPA defines “synthetic” as “a substance that is formulated or manufactured by a chemical process or by a process that chemically changes a substance extracted from naturally occurring plant, animal, or mineral sources, except that such term shall not apply to substances created by naturally occurring biological processes.”

The OFPA also directed the establishment of a National List of approved and prohibited substances for use in organic production (“National List”). The National List includes a small number of synthetic chemicals that are approved for some limited applications in organic production. In order to be included within the exceptions on the National List, a synthetic substance must go through a comprehensive and open review process and receive approval.

Consistent with the OFPA, USDA organic regulations specifically prohibit the use of any “[s]ynthetic substances and ingredients” in organic crop production unless the synthetic substance is on the National List.

The distinction between synthetic and nonsynthetic (natural) substances is important. In contrast to synthetic substances, natural substances are generally approved for use in organic crop production unless specifically prohibited by the National List.

This basic framework also applies specifically to fertilizers allowed for use in organic crop production. NOP regulations governing fertilizers provide that the “producer must manage plant and animal materials to maintain or improve soil organic matter content in a manner that does not contribute to contamination of crops, soil, or water by plant nutrients, pathogenic organisms, heavy metals, or residues of prohibited substances.” Some have interpreted “plant and animal materials” as used in this regulation to include food waste. Importantly, however, this NOP regulation governing fertilizer also provides that a producer of organic crops must not use “[a]ny fertilizer or composted plant and animal material that contains a synthetic substance not included on the National List.”

The only practical exception to the no synthetics rule as applied to fertilizers are the few items listed on the National List at 7 C.F.R. § 205.601(j). The National List does not include either “food waste” or the various prohibited synthetics that are commonly found in food waste. Some would therefore argue that before it issued its December 2016 guidance, the NOP regulations contemplated the use of food waste in fertilizer for organic crop production so long as the food waste did not contain prohibited synthetics.

In short, at least historically, to label their product as organic, fertilizer producers must have documented that all of their inputs are free from prohibited synthetic materials.

 

The NOP’s 2016 Guidance Generally Approving of Food Waste

On December 2, 2016, the NOP issued guidance document 5034-1 which lists “materials which are considered nonsynthetic (natural), and are not required to be included on the National List.”  The list includes “Food Processing By-Products” and “food waste” as nonsynthetic materials. The relevant portion of the guidance states that “Food Processing By-Products includes food waste, cannery waste, and pomaces. Plant and animal materials chemically altered by a manufacturing process are not permitted unless resulting material is provided for under § 205.601” (i.e., the National List).

Some, relying in particular on the last sentence, may view this guidance as simply restating the existing law described above and providing that natural food waste (pure animal and plant materials) may be used in organic crop production but only if such waste were completely free of prohibited synthetics. This interpretation would appear to be consistent with the OFPA.

Others, however, may view this guidance as authorizing the use of food waste as an ingredient in fertilizer used in organic crop production without having to scrutinize the contents of the food waste for prohibited synthetics. Under this interpretation, the last sentence of the quoted guidance means that food waste is considered natural unless it is chemically altered by the fertilizer producer after the food waste is collected.

It is more difficult to reconcile this latter interpretation with the OFPA’s prohibition of all synthetics that are not on the National List. Based on a strict reading of the OFPA and regulations, it is relatively clear that all inputs in fertilizer approved for use in organic crop production should be scrutinized and found to be free of prohibited synthetics.

To obtain approval from OMRI for fertilizer used in organic crop production, an applicant must provide a complete written description of the manufacturing process. In addition, an applicant must submit a Total Ingredient List, which must provide the name, function, supplier, manufacturer and a detailed written description of how the ingredient is made, and the percentage of each ingredient, based on weight, in the product. A product must also be reviewed periodically to confirm that it continues to comply with OMRI Standards and Policies, which are based on the NOP regulations.

The OMRI Policy Manual states that in “order to conduct accurate and thorough reviews, OMRI must access all pertinent information regarding each product. This includes the identity and source of every ingredient and the manufacturing process for all ingredients and the final product.” In addition, the OMRI Policy Manual provides that “OMRI requires applicants to fully disclose all ingredients and their sources to OMRI in order for products to be reviewed for listing.”

In the wake of this guidance, it appears there are at least two views of the current regulatory landscape related to food waste. Organic certifying agencies as well as those who are in the organic fertilizer business, deserve more clarity.

 

The NOP Should Clarify Its Stance on Food Waste

It is generally understood that the NOP’s current position is that unaltered food waste is considered a nonsynthetic and therefore permissible, but food waste that has additional prohibited synthetics added during the post-harvest production process (for example, the fertilizer producer’s addition of a chemical to control odor) is not allowed. As long as additional synthetics are not added to the food waste during processing, food waste is therefore ostensibly permitted for use in organic crop production since NOP has deemed it a natural substance and it is not prohibited by the National List.

The problem with the NOP’s current position is that not all food waste is created equal. One need only look at the waste bins in kitchens, restaurants and grocery stores to understand that food waste, almost by definition, is not pure but instead consists of many different substances, some nonsynthetic and others synthetic, which are prohibited for use in organic crop production.

The NOP’s recent guidance, which could be construed by some as labeling all food waste as a nonsynthetic, does not alter the reality that some of the components of food waste likely meet the OFPA’s definition of a “synthetic.”  For example, if a producer were to include plastic bags with food waste as an input for fertilizer presumably most people in the industry would agree that the product should not, and currently would not, be approved for use in organic crop production.

It is generally understood that food waste derived from processed foods contains synthetic materials that normally would not be allowed in organic products. Preservatives such as butylated hydroxyanisole (BHA) and butylated hydroxyttoluene (BHT) are found in food products such as butter, cereals, snack foods and beer. BHA and BHT are not naturally occurring substances and meet the OFPA’s definition of a synthetic. They therefore should be prohibited for use in organic crop production. Yet food waste that contains BHA or BHT can now possibly be accepted by Material Review Organizations (MRO) as a “nonsynthetic” and an authorized input for organic fertilizer by the NOP.

The New York Times’ account of potential food waste collection includes the glass, plastic bags and other synthetics that contain such waste, which includes preservatives, strongly suggests that any number of things that would otherwise be prohibited in organic crop production could arguably now be included based on this guidance, as long as they are characterized as “food waste.”  This is a slippery slope, and it is not difficult to imagine how it could eventually damage the organic brand.

 

More Clarity Is Also Needed On Anaerobic Digestion

It may be argued that as long as food waste is processed using anaerobic digestion the resulting fertilizer should be approved for use in organic crop production. But the OFPA and the regulations do not recognize such a distinction.

A 2012 OMRI publication noted that some argued that “allowance of AD [anaerobic digestion]-derived products in organic production would boost the industry by providing an abundant source of low-cost fertilizers.” The OMRI publication also acknowledged, however, that the anaerobic digestion process “doesn’t really fit the current criteria for compost.”

The differences between anaerobic digestion and traditional composting may be material. The case has yet to be made that the process of anaerobic digestion mineralizes synthetics to the level of simple compounds that are usable by the plant. The scientific literature to date indicates that whether or not this level of decomposition occurs depends on the type of synthetic. For example, according to one article, “complete anaerobic mineralization has been demonstrated for phthalate, dimethyl phthalate, diethyl phthalate, dibutyl phthalate and butyl benzyl phthalate” whereas “no anaerobic degradation, or only partial conversion was established for dioctyl phthalate and bis(2-ethylhexyl) phthalate.”

There may be other significant differences between aerobic (traditional composting) versus anaerobic digestion. For example, another analysis has concluded that E. coli “survived significantly longer under anaerobic than under aerobic conditions. Survival ranged from approximately 2 weeks for aerobic manure and slurry to more than six months for anaerobic manure.”

The process of using anaerobic digestion to convert food waste into organic fertilizer remains in legal limbo. A petition was submitted to the NOP to include “anaerobic digestate—food waste” on the National List of approved synthetic substances. The petition is currently under submission and the requested Technical Review (TR) was just released. The Crops Subcommittee of the National Organic Standards Board (NOSB) is scheduled to review this TR and the petition and make a recommendation for a formal vote at the October 2017 NOSB meeting. It is therefore also important that the NOP clarify its position on food waste prior to that vote.

Perhaps there is a way to use food waste as an input for fertilizers allowed in organic crop production without running afoul of the clear intent and meaning of the OFPA. For example, producers could ensure that they only use food waste that is free of prohibited synthetics as an input in fertilizer used in organic crop production.

The NOP should clarify its stance for the industry and confirm that food waste that contains any prohibited synthetics may not be used in organic crop production. After all, the OFPA represents a Congressional determination to prohibit all synthetics in organic crop production other than those contained on the National List. And federal agencies such as NOP, lack authority to issue rules or guidance that conflict with the intent of Congress.

 

Food Producers Should Use Caution Before Buying Organic Fertilizers Made From Food Waste

At least until further guidance is received from Congress, the NOP, or the courts, care must be taken in construing the NOP’s recent guidance as authorizing all food waste, regardless of its contents, for use in organic crop production. Producers—as well as growers, certifiers, and MROs—should be cautious as they navigate the uncertain regulatory landscape of organic fertilizer made from food waste. In sum, food producers should use considerable caution and await NOP clarification before buying organic fertilizers made from food waste that may contain prohibited synthetics.

 

Authors: Stephen Meyer ([email protected]) and Thomas Marrs ([email protected]), Downey Brand LLP

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Posted in WG&S Magazine, July / August 2017 Issue | No Comments »

The Business End of Our Association

July 20th, 2017

Few things make me cringe more than being told, “That’s the way it’s always been done.” It represents a way of thinking that can stifle imagination, innovation and creativity, and in any competitive marketplace it almost always leads to failure. We take great care here at Western Growers to continually ask ourselves, and our members, what needs to change, what do we need to do differently, what do we need to create, and to do all of it at the speed of an entrepreneurial business. Our members do that every day; they should expect nothing less from their trade association.

We recognize that we exist for one purpose: “To enhance the competitiveness and profitability of our members.” One way we fulfill this mission is by providing competitive products and services that boost their bottom line.

This requires us to operate in the same industrious manner as our members, and to make smart investments in new ideas today that will reap extraordinary rewards for our members in the future. This requires us to look into the distance and anticipate the challenges—both seen and unseen—that will impact our member operations.

Take, for instance, product recalls. When I ask our members what keeps them up at night, invariably they mention the financial liability related to recalls. To date, no insurance program has been available to help our members manage this type of risk. Quite frankly, the only options were off-the-shelf policies that did not meet the unique needs of the agriculture and food industries. Then Western Growers got involved. We searched the global insurance marketplace to develop a proprietary product that addresses the three main types of financial liability associated with contamination recalls. This product—The Shield™—covers personal injuries related to the contamination, the costs associated with conducting the actual recall, and any loss of the product itself. I imagine our members will breathe a collective sigh of relief when they hear more about this game-changing program.

WG members have come to expect innovative endeavors from us. Initiatives like contamination recall protection stem from the same philosophical roots that were planted 92 years ago in the Imperial Valley with the founding of Western Growers. A commitment to advancing the common interest of our members has driven one bold idea after another, as it did with the creation of the Western Growers Assurance Trust in 1957.

At the time, health benefits for the agriculture industry were not available from major health insurance carriers. Western Growers stepped in to fill the void, and has been providing member-driven, service-oriented and agricultural-specific health benefits for the past six decades. Along the way, we have leveraged our expertise to form other insurance-related entities, including our brokerage firm, Western Growers Insurance Services and our third-party administration company, Pinnacle Claims Management, Inc.

These entities, along with other revenue-generating programs developed within the Western Growers Family of Companies over the years, provide market-based solutions at competitive rates to meet the varied needs of our members. Herein lies the beauty of the Western Growers model. While enhancing the profitability of our member companies, the revenues derived from these products and services fuel the association, allowing us to deploy the industry’s most talented professionals who pursue an ever-growing portfolio of strategic initiatives aimed at protecting and enhancing our members’ bottom lines. We can do all this with one of the lowest member dues structures in the industry, which has remained unchanged during my 15-year tenure at Western Growers.

As an example, in 2012, Western Growers’ war chest allowed us to lead an industry effort targeting (and successfully ousting) two particularly hostile California state legislators through an independent expenditure campaign. The unexpected outcome of the election sent shockwaves through the Capitol and put the California Legislature on notice. We are looking to replicate this program in the 2018 election cycle.

Western Growers funds have gone to support an array of other strategically-important activities ranging from Cultivate California, a public relations campaign designed to reframe the debate about agricultural water use, to the Center for Produce Safety, where we contributed $1million to aid in the development of science-based solutions to produce safety vulnerabilities, to the WG Center for Innovation & Technology, which has grown to more than 40 startup and development stage companies working on technology to solve the most pressing challenges facing our members.

All of this comes from a non-profit trade association. But look underneath and you find a family of companies, both for-profit and non-profit, that drive toward the same common purpose: To enhance the competitiveness and profitability of our members. Our newest venture—development and deployment of a viable market-based solution to managing the risk around food recalls—is the crystallization of that mission statement.

Posted in July / August 2017 Issue | Comments Closed

Western Growers’ 92nd Annual Meeting: Las Vegas Event to Focus on Adding Value

July 20th, 2017

For the 92nd time in its storied 92-year history, Western Growers will be hosting its Annual Meeting, a yearly opportunity for members to gather and reflect on the recent achievements of the fresh produce industry, and to chart a collective, sustainable path forward. Just as many of our members are looking for ways to add value to the products they bring to market, Western Growers is approaching the 2017 Annual Meeting event schedule and featured guests with a singular focus on adding value to the bottom line for our members.

Taking place from October 29th to November 1st at the Encore in Las Vegas, a Forbes Travel Guide Five-Star Resort, each of the 2017 Annual Meeting activities will be specifically designed to benefit Western Growers members in multiple ways.

 

Advocacy

The founding philosophy of Western Growers, that there is strength in numbers, continues to serve as the guiding force behind all of the work being done by our association, in particular when it comes to influencing public policy. In addition to the unpredictable forces of Mother Nature, our members must also deal with an unending onslaught of legislative and regulatory mandates, which place undue burden on the industry. Our teams in Sacramento, Phoenix and Washington, D.C., fight for our industry on a daily basis, and their voices are effective because they speak on behalf of a powerful membership.

 

WG PAC Luncheon: “Off the Record” with PJ O’Rourke

In addition to our lobbying efforts, the Western Growers Political Action Committee (WGPAC) is instrumental in protecting the Western fresh produce industry by providing critical support to our elected officials. The Annual Meeting PAC Luncheon is an opportunity to raise funds to ensure that the WGPAC remains effective in advocating for the industry on tough issues like immigration, water supply, environmental overregulation and food safety.

Our PAC Luncheon keynote speaker will be PJ O’Rourke, author of numerous books on politics, international relations, and economics, as well as a host of other topics. His book about Washington, Parliament of Whores, and his book about international conflict and crisis, Give War a Chance, both reached number one on the New York Times best-seller list. He is a contributing editor at The Weekly Standard, H. L. Mencken fellow at the Cato Institute, a member of the editorial board of World Affairs and a regular panelist on NPR’s Wait Wait…Don’t Tell Me! O’Rourke will help place our advocacy efforts in a global context.

 

Innovation

Western Growers recognizes that the challenges facing our members in areas like labor and water are too complex to solve with public policy alone. The dynamics of the Western fresh produce industry are undeniably changing, and the long-term viability of our member operations will depend on the acceleration of innovation and technology, which is why Western Growers has committed substantial resources to initiatives such as the Center for Innovation and Technology (WGCIT). The WGCIT serves as a hub of collaboration between innovators and Western Growers members with the goal of revolutionizing how we farm.

 

AgSharksTM

As an extension of the Western Growers technology initiative, the third Annual Meeting installment of this innovation showcase (formerly called the Innovation Arena) will highlight some of the best and brightest minds at the intersection of fresh produce and technology. Those in attendance will learn about innovations and specialized services designed to help our members manage scarce resources, overcome marketplace pressure and deliver higher quality produce. Selected start-up companies will present new ideas in ag technology before a panel of judges, venture capitalists, and audience members.

 

Education

At the root of Western Growers’ value proposition is its ability to provide timely information and resources to help members make more informed and better business decisions. The Annual Meeting workshops provide an unparalleled opportunity to explore trending topics that matter most to the membership. The goal is to gather experienced speakers to give idea-focused talks that foster learning and provoke conversations that move these ideas forward.

 

Cannabis

The cannabis breakout session will delve into the current growth of California’s marijuana industry and the role this commodity will play in the state’s agricultural future. Ultimately, the question of what the growing popularity of legalized marijuana means for the established agriculture community will be discussed.

 

Healthcare

Whether or not we’ll have clarity on repeal-and-replace, the fact remains that our healthcare landscape is ever-changing. The healthcare workshop will provide members with expert analysis on the current state-of-play and offer the latest guidance on providing effective and compliant health care benefits for their workers.

 

Immigration

Immigration remains a critical issue for agriculture. For years, Western Growers has fought for a legal and stable workforce that not only supports the industry, but ensures those who have worked alongside our members are afforded the basic human dignity they deserve. The immigration session will provide up-to-date analysis on the prospects of immigration reform under the Trump Administration.

 

Cultivation

Arguably more than any other industry, the foundation of agriculture is built on relationships. The Western Growers Annual Meeting offers the opportunity for members to cultivate their networks by connecting with key players in the fresh produce industry. With a variety of events spanning from the opening Welcome Reception to the closing Golf Tournament—and everything in between—attendees will benefit from the chance to reconnect with old friends and discover future business partners, potential customers or valuable suppliers.

 

Celebration

Above all, the Annual Meeting is a celebration of what makes Western Growers so successful and our fresh produce industry so special: the people.

 

Chairman’s Luncheon and Keynote

The Luncheon will recognize the superb year of leadership provided to Western Growers by outgoing Chairman Sammy Duda. His much anticipated Chairman’s Address will be followed up by a keynote speech from Kristen Soltis Anderson, a political writer and media personality, pollster and co-founder of Echelon Insights, a research and analytics firm. She was one of TIME’s “30 Under 30 Changing the World” and has been featured as one of ELLE’s 2016 “Most Compelling Women in Washington.”

 

Award of Honor Dinner Gala

The Gala will honor one of the agriculture industry’s most distinguished pioneers, David Gill, as the 2017 Award of Honor recipient [see coverage of the award on pages 17–22]. The Award of Honor is Western Growers’ highest recognition of industry achievement and is given to individuals who have contributed extensively to the agricultural community.

“David’s compelling life story and incredible achievements are a testament to his commitment to agriculture,” said Tom Nassif, president and CEO of Western Growers. “His drive and perseverance are inspiring, and his impact will echo throughout the industry for years to come.”

The evening’s entertainment will be courtesy of the King of Clean comedy, Jim Gaffigan.

 

For more information or to register, visit the 2017 Western Growers Annual Meeting website (www.wgannualmeeting.com) or contact Cheryl Hall (949.885.2268).

 

Posted in July / August 2017 Issue | Comments Closed

CA DWR Announces Initial Notification Period for Basin Boundary Modification Requests under SGMA

July 13th, 2017

The California Department of Water Resources’ initial notification period for Basin Boundary Modification Requests under the Sustainable Groundwater Management Act (SGMA) opened on July 1, 2017. The notification period allows Groundwater Sustainability Agencies (GSAs) or local agencies to begin the required meetings and coordination to support modifications.

A tentative schedule for 2018 deadlines related to modification requests is as follows:

Tentative Schedule

  • January 1, 2018 – Submission Period opens
    • During this three month window, GSAs and local agencies can submit the required information to support a Basin Boundary Modification in the BBMRS on the SGMA Portal: http://sgma.water.ca.gov/portal/#intro.
  • March 31, 2018 – Submission Period closes and 30-day Public Comment Period opens
    • All information to support a boundary modification should be submitted to the BBMRS
  • April 30, 2018 – Public Comment Period closes
    • DWR begins boundary modification requests and public comments
  • Approximately July 2018 – Draft Basin Boundary Modifications released
  • Approximately August 2018 – Final Basin Boundary Modifications released

Western Growers continues to encourage members to be an active participant in all phases of the program in their local areas.

For more, information on SGMA please contact Gail Delihant at (916) 446-1435.

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USCIS Releases Revised Form I-9

July 18th, 2017

On July 17, 2017, the United States Citizenship and Immigration Services (USCIS) released a revised version of Form I-9, Employment Eligibility Verification. Employers may now use the new form or continue using the prior Form I-9 with a revision date of 11/14/16 N through September 17, 2017. However, the new form with a revision date of 07/17/17 N must be used on and after September 18, 2017. Employers are encouraged to start using the new form right away to avoid potential non-compliance after the September 17 deadline.

The new document includes relatively insignificant updates, namely:

  • The reference to the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) has been changed to its new name, Immigrant and Employee Rights Section (IER).
  • The instructions on Section 2 have been slightly changed to read: “Employers or their authorized representative must complete and sign Section 2 within 3 business days of the employee’s first day of employment” (rather than “the end of” the first day of employment”).
  • The new version also renumbers all List C documents except the Social Security card and streamlines the certification process for certain foreign nationals.

The new version also: 1) includes space to enter the names of multiple preparers and translators as well as a new space for including additional information; 2) dispenses with the need to write information in the form’s margins; and 3) includes a supplemental page for the preparer or translator to complete.

The changes to the form can be found in the newly revised Handbook for Employers: Guidance for Completing Form I-9 (M-274).

Members should discard older versions of the blank forms and train hiring managers and human resources representatives to download and begin using the new version of the form for new hires going forward. Employers must continue following the existing storage and retention rules for any previously completed Form I-9.

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

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Western Growers’ Statement on Passage of Valadao Water Bill by the House

July 12th, 2017

IRVINE, Calif., (July 12, 2017) — In response to the passage of H.R. 23, Gaining Responsibility on Water Act of 2017, by the U.S. House of Representatives, Western Growers President and CEO Tom Nassif issued the following statement:

“We appreciate the efforts of the House to pass the Valadao water bill, which aims to restore reliable water deliveries for countless California homes and farms. We understand this bill faces opposition from California’s Senators and several state politicians. However, as was accomplished last year with passage of the WIIN Act, we hope the Valadao legislation will spur the continued search for constructive, bi-partisan solutions to the ongoing water challenges in California and throughout the Western United States.”

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 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. 

Posted in Press Releases | No Comments »

Bogey, Par, Birdie, Eagle and Albatross! Register for Golf at WG Annual Meeting

July 20th, 2017

The Western Growers’ Golf Tournament is back—and this time, it will be held at the Revere Golf Club, designed by Billy Casper and Greg Nash, just minutes from the Las Vegas Strip. The 2017 “Tee it High, Let it Fly” Golf Tournament will be held during the WG Annual Meeting, on Wednesday, November 1 at 8:00 a.m.

This year’s course presents a blend of beauty and challenge unlike any other in southern Nevada. Draped through the rugged desert canyons and valleys of the Las Vegas foothills, the Revere Golf Club offers unending, awe-inspiring views of the Las Vegas Skyline and mountains beyond. The Lexington course’s stunning 7,143 -yard, par-72 layout will test your shot making capabilities with classic risk/reward scenarios. Prior to teeing off on this Las Vegas golf adventure, golfers can warm up their game at Revere’s expansive practice facility offering an all grass driving range plus two putting greens and short game pitching and putting areas.

The WG Golf Tournament includes unlimited range balls, Revere GPS app, bottled waters on the cart, golf tees, golf towels, scorecards, bag handling, dedicated PGA Tournament Coordinator and professional post-round scoring. Breakfast before tee-off and post-tournament lunch is also included. Contests for the longest drive, closest to the pin and longest putt will also be offered.

Sign up and register today to reserve your spot!

EVENT INFO

“Tee it High, Let it Fly” Western Growers Golf Tournament
Date: Wednesday, November 1, 2017
Time: 8:00 a.m.
Location: The Revere Golf Club (2600 Hampton Rd, Henderson, NV 89052)
Price:

  • Full Price: $255.00
  • Golf Tournament Only (no club rentals): $225.00

Register: http://www.wgannualmeeting.com/register/

For questions about the golf tournament or the Annual Meeting, please contact Cheryl Hall at (949) 885-2268

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AZ Ag Department Issues Reminder of Statewide Export Services and Enhancements

July 13th, 2017

Ahead of the upcoming export period, the Arizona Department of Agriculture is reminding the agriculture industry of the range of export services it provides, as well as enhancements they have made in providing these services.

Yuma County Federal and State Phytosanitary Certificate 

  • Plant Services Division inspection staff will be offering a new 6-day-a-week service Monday through Saturday beginning on September 1, 2017, and running through March 31, 2018, for international and domestic export inspection and certification needs in Yuma County. 
  • There will be no additional charge for the Saturday service; Saturday service will continue as long as there is demand. 
  • Staff will continue to offer extended hours each day to meet export demands.
  • The cost for a federal phytosanitary certificate (international shipments) is $56 ($50 plus $6 Federal administrative fee) and the cost for a state phytosanitary certificate (domestic shipments) is $50 for the first load on site at the time of inspection and $10 for each additional load on-site at the time of inspection. Please note these fees cover both the inspection of the commodity lot presented for export and the certificate.

Statewide Federal and State Phytosanitary Certificate 

  • International and domestic export inspections and certification are offered state-wide, Monday through Friday with extended hours (except in Yuma County). 
  • Both export certifications can be requested and paid for through the electronic PCIT system. If you need assistance with accessing PCIT for the first time, division staff can assist. Contact information to request service or for any questions is as follows:
    • Phoenix Operations (Maricopa, Pinal, Gila, Navajo, Apache, Yavapai, and Mohave Counties) – (602) 542-0981
    • Tucson Operations (Graham, Greenlee, Cochise, Santa Cruz and Pima Counties) – (520) 628-6314
    • Yuma Operations (Yuma and La Paz Counties) – (928) 341-1780

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

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Advocate, Innovate, Celebrate During WG 92nd Annual Meeting

July 25th, 2017

The brightest minds in agriculture are coming together for Western Growers’ 92nd Annual Meeting in Las Vegas, Nevada, on October 29 – November 1, 2017. This year’s event includes dynamic and engaging sessions across a wide range of topics impacting agriculture.

Breakout session will highlight timely topics such as:

  • Healthcare: guidance on providing effective and compliant healthcare benefits during the ever-changing landscape of healthcare
  • Cannabis: the growing popularity of legalized marijuana and what this means for ag
  • Immigration: discussions on how members’ goals will be met with the new administration to ensure a legal and stable workforce
  • AgTech: innovations and specialized services designed to manage resources, overcome marketplace pressures, deliver high-quality produce and more

[VIDEO::https://youtu.be/A5Uzmaq-Dcw::aVideoStyle]

Click here for the full event schedule. Register today at http://www.wgannualmeeting.com.

For questions about the Annual Meeting, contact Cheryl Hall at (949) 885-2268.

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