Water Tech Updates

May 11th, 2018

SWIIM’s 2.0 in Beta Testing

With thousands of acres using its irrigation management software, SWIIM has its 2.0 version in beta testing and is in line for another round of funding to continue developing its cutting-edge water use tracking technology and add staff and offices.

Kevin France, founder and CEO of SWIIM (Sustainable Water and Innovative Irrigation Management), which is a member of the Western Growers Center for Innovation & Technology, said about 100 growers representing approximately 100,000 acres of cropland are using the program. In a nutshell, the company offers a suite of software packages and services that enable growers and others to plan, manage and track their crop-water budget.

SWIIM’s value proposition centers around the theory that information is power. A grower armed with accurate and up-to-date information about his water allocation, deliveries and crop usage can better manage that all-important resource. SWIIM offers a turnkey program complete with physical equipment and computer software. France said for many years water delivery and usage was achieved on a “close enough” system. If water is cheap, deliveries from your irrigation district and usage by your crops that were within 10-15 percent of what you contracted was close enough. Increasing costs and scarcity of that resource has changed that dynamic.

With SWIIM’s technology, water use is tracked on the farm, inputted into the system and the data is sent to individual growers and the respective district in the aggregate for monitoring and reporting. France said some people call it “QuickBooks for water accounting” and he agrees with that description. “You have all your data in one place,” which he adds, allows for informed decision making. Just as one’s bank account can be balanced to the penny, he said the same accuracy is available for one’s water account through SWIIM.

France said with version 2.0, SWIIM is improving the transparency and delivery of the information to its customers. The new version, he said, can interface with mobile devices and tablets allowing growers to have this information presented in a clearer format while they are in the field looking at the crops.

As time goes by, France believes his system’s to-the-drop accuracy, can be utilized to create a market for transferring water between customers or back to the water district, but he added that is a byproduct of the technology not its main purpose. He reiterated that the purpose is to enable growers to get much more accurate usage information on this all-important resource.

 

Netafim’s NFC300 Flow Computer

The NFC300 is a bluetooth data logger designed to capture accumulated volume and historic flow rates from up to two pulse output flow meters. Data is retrieved from the NFC300 using the accompanying mobile app on a Bluetooth enabled iOS or Android device. From there the data is uploaded to the cloud via the mobile device’s Internet connection or, if no Internet connection is available, the data is stored on the mobile device until an Internet connection becomes available.

“This is a great solution for areas where cellular service is unavailable,” according to literature from Netafim, which is the manufacturer of the product. As an added benefit, the NFC300 mobile app can display real time flow rate with a resettable totalizer for the meters in hard to reach places. While the NFC300 partners well with Netafim’s line of flow meters, it’s also compatible with third party flow meters. In fact, the NFC300 is compatible with most dry contact, open collector, or open drain pulse output flow meters.

“We recently worked with a customer that paired the NFC300 to a Seametrics AG 3000 meter. After connecting the wires, we programmed the meter to output a pulse, installed the battery in the NFC300 and configured the NFC300 to read the meter’s pulse resolution,” said an article on Netafim’s website.

Once a meter is connected to the NFC300, and its data has been collected by the mobile app, it can be viewed online through any modern web browser. The data can be analyzed on the web or it can be exported to a CSV file for use in other software.

Netafim’s business model for this product does not include a monthly or yearly subscription fees. The price of the NFC300 includes a lifetime archiving license which means a customer’s data will be stored in the cloud until the customer deletes it. As an added benefit, the NFC300 can receive software updates from the mobile app.

More information including manuals and training videos, is available on the firm’s website:  www.netafimusa.com.

 

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ICE Raids on Farmworkers Are Untenable

May 11th, 2018

“California fruit will die on the vine after ICE raids.”

“Immigration raids scare California farmers, not just their workers.”

“Farm leaders say California’s sanctuary status makes them a target for ICE raids.”

These are just a few of the headlines that have splashed across regional and national news outlets in recent months.

They remind us of the years of inaction by our lawmakers, despite overwhelming voter support for immigration reform for agriculture.

We have made our case. Americans will not do the hard labor required to pick our fruits and vegetables. To anyone who disputes this, I simply ask of them: “Are you or anyone you know raising your kids to be farmworkers?” The inevitable conclusion is that foreign hands will harvest our food.

This light bulb moment leads to a logical next question: “Do we want our food harvested by foreign hands here in our own country, in fields under our direct control, or on distant farms unregulated by the food safety and labor regimes that govern our farmers, and subject to the whims of foreign governments that may not always have our best interests at heart?”

For those of us old enough to remember the Arab oil embargo in 1973—a crisis that prompted President Nixon to promise energy independence to the American people “within 10 years,” —we understand the consequences of ceding jurisdiction of our vital needs to others abroad. While it took a bit longer than 10 years, the United States has relentlessly pursued—and has now essentially achieved—energy independence.

Why, as a matter of public policy, are we not similarly focused on maintaining American food independence?

American agricultural production is being siphoned off to other countries at an alarming rate, as evidenced by the growing balance of trade deficit in fruits and vegetables, which now stands at many billions of dollars a year.

For this reason, news of the recent round of ICE raids in California’s Central Valley is incredibly concerning. To be clear, Immigrations and Customs Enforcement was active [perhaps even more active] during the Obama administration, but the recent crackdown on undocumented agricultural workers under the Trump administration is jarring given the overwhelming support he has enjoyed from rural communities across the country.

While we fully support the administration’s effort to dislodge criminal aliens from our country, our farmworkers are, almost without exception, not felons. In fact, the agricultural workforce is almost uniformly stable with historic presence where they live, generating economic activity in their regions and giving back to their neighborhoods and communities. The ill-conceived concept of rooting out these men and women and sending them to their home countries is destructive on many fronts.

Furthermore, stripping farm businesses of our essential labor force is tantamount to an act of financial sabotage, with these ICE raids making the U.S. government a complicit agent in the crippling of its own citizens’ livelihoods. Compounding an already acute labor crisis, these ICE raids run counter to President Trump’s drive to bring jobs back to America.

Our industry is not unwilling to find solutions. We are not deaf to public misgivings and anger regarding illegal immigration or workers who have lived in America without citizenship. We join in agreeing that we can work to find answers and are determined to be positive partners in that process. We can accept ICE raids, E-verify and other interior enforcement (and border security) measures. But first, we need workable solutions to our chronic labor shortages.

Undeniably, the answer begins and ends with Congressional action, a candle of hope that has dimmed since the introduction of the Goodlatte bill. Absent a workable legislative fix for the agricultural labor force, the Trump administration must strive to minimize the impact of its immigration policies on our industry. To achieve this objective, the agriculture community must leverage the collective influence it has with this President.

I have spoken with Congressional leaders and fellow members of the President’s Ag Advisory group about the need for this administration to publicly assure farmers that the ICE raids are not going to target agriculture. Workers who are in fear of a raid are not showing up at their place of employment exacerbating the devastating labor shortage that already exists. Concerted action by agriculture is very important in order to achieve these objectives.

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Redefining Rural America, One Woman at a Time

May 11th, 2018

It’s the iconic depiction of agriculture—a farmer driving his tractor at sunrise, walking the fields to check on his budding crops and brushing the dirt off his freshly picked produce. Though this scene is thought to be the most common portrayal of farm life, something significant is missing: the women.

Women make up a third of the nation’s farmers, generating nearly $12.9 billion in agricultural sales on a yearly basis. These 970,000 female farmers are the thought leaders behind innovative concepts that bring more fresh produce into the homes of Americans. They are the full-time owners and operators, family matriarchs, community volunteers and agriculture advocates that are paving the way for a more nutritious future.

Take for example, Kay Filice, president and owner of Filice Farms in Hollister, Calif. Filice broke away from her rural roots when she decided to move from Iowa to San Francisco in the ‘70s to pursue a career in sales and marketing. When she met her husband, Chuck, shortly after, she found herself back in a rural setting and on the farm.

Chuck—a second generation vegetable farmer in Central California—managed the day-to-day operations of their family farm while she raised their boys and managed the summer apricot production and processing. When Chuck passed away in 1998, she was faced with a life-changing decision: sell the farm and start a new life with her three sons or continue the business her husband and his parents had passionately developed.

Though she had little to no experience in running a business, Filice decided to carry on Chuck’s vision and led the operation with the support and guidance of several dedicated employees. She quickly embraced new technologies being developed to improve farm operations and has since been a leader in implementing innovation in the field. Filice Farms was among the first to use tractors that were guided by GPS technology on its fields. These tractors allowed drivers to do a more efficient job of plowing the field, and in turn, saved the operation a significant amount on fuel and labor.

“Today, new technology for on-farm use is being developed at an astonishing rate, and in many ways, changing the way we farm,” said Filice. “Aerial imaging is just one of many such technologies Filice Farms utilizes to detect problems in early stages, allowing us to make important cost effective decisions.”

Today, Filice Farms rotates a dozen different crops on San Benito County ranches from Hollister to San Juan Bautista and has cemented its reputation as one of the most forward-thinking ag operations in the region.

“Agriculture is an exciting business, each day presenting new opportunities and new challenges. If you’re not constantly planning and looking toward future opportunities for your farm and your employees, you’re going to be left behind,” said Filice.

Filice’s story of taking over a family business and transforming it into an agricultural powerhouse is one that is starting to echo throughout the industry. When Christi Becerra’s father passed away in 2017, she made the decision to leave her career in IT and join one of her family’s businesses to insure that her father’s legacy would continue. Stepping into large shoes, Becerra has spent the last 14 months learning the mushroom business and managing the day-to-day operations as the managing partner of Global Mushrooms.

Becerra has adopted her father’s motto for the farm of “Quality First.” Her understanding of this motto was not to just grow the highest quality mushrooms, but also to ensure the highest quality programs within the company. These programs include employee benefits, employee safety, food safety and maintaining a state-of the art growing facility. When first taking over, Becerra reviewed the company’s benefits and noticed that employees were not utilizing their health benefits. After meeting with the employees, she learned that they did not fully understand the coverage or they could not find service providers in their areas. She immediately reached out to Western Growers Insurance Services to develop new benefits program and implemented an employee benefits education program. The new program combined affordability, accessibility and education to support her employees.

“In this short time, participation in the health plan has grown to 88 percent, the employees understand their benefits and now have access to health service providers in their areas,” said Becerra. “We are incredibly proud of the quality of our employee programs that we have created at Global Mushrooms and are delighted with the positive feedback we receive from our employees.”

In addition to leading revolutionary changes within their companies and making history today, female farmers are also growing ag for tomorrow. Carol Chandler, partner at Chandler Farms, and Catherine Fanucchi, manager at Tri-Fanucchi Farms, are two of the three women who sit on WG’s Board of Directors. As leadership of WG, Chandler and Fanucchi play a significant role in advocating for the hard-working farmers and farmworkers who provide over half the nation’s fresh produce and making legislators aware of the value the ag industry brings to the community.

“We have been incredibly involved in ag advocacy in Washington and Sacramento with Western Growers members,” said Chandler. “It is vitally important to tell our stories to elected and appointed officials who legislate and regulate our farming operations.”

Chandler is also an advocate for ag within higher education. She served on both the California State University Board of Trustees and the University of California Board of Regents to help develop education policy and ensure that students have a pathway to a higher education. In her roles, she consulted on system-wide initiatives that were geared toward shaping students into knowledgeable, highly-skilled professionals that would thrive in industries such as agriculture.

“There is a strong synergy between agriculture and higher education as we look for innovators to help us farm smarter and more efficiently,” said Chandler.

Rounding out the female leadership on WG’s Board of Directors is Lorri Koster, former chairman and CEO at Mann Packing—a women owned and operated company that was recently acquired by Del Monte Fresh Produce—and currently a consultant for Del Monte. Koster and her sister, Gina Nucci, brought new meaning to the term “value added.” They created numerous lines of Mann Packing products, such as their Sugar Snap Peas, Broccolini®, Single-Cut Full-Leaf Lettuce, Cauliflower “Fried Rice” Blend, Better Burger Leaf and Nourish Bowls (a ready-to-eat warm meal that is comprised of super foods), which allow consumers to spend more time with their families at the dinner table, rather than prepping and cooking in the kitchen.

“Mann Packing’s mission statement says it all—Fresh Veggies Made Easy,” said Koster.

Breaking into a male-dominated field such as agriculture is not easy, but farmHers throughout the nation are making strides and leading the way for all women. In honor of Women’s History Month in March, Western Growers featured stories throughout its social media channels of female farmers who are defying the odds and succeeding as a women in agriculture. To read more about the women who are redefining the typical depiction of rural America, visit facebook.com/westerngrowers or instagram.com/western_growers.

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Biologicals Effective, Sustainable, and Offer a Strong ROI

May 11th, 2018

Pam Marrone, a pioneer and leader in the bio-pesticide world, looks forward to the day when the majority of growers use biologicals because of their efficacies, not just because they offer other advantages.

She freely admits that biologicals are most often used today to stay below maximum residue levels (MRLs) and allow workers back into the fields more quickly. “Surveys tells us those are the top two motivators,” she said.

And they are two very good reasons. Chemicals typically have label specifications preventing application a set number of days before harvest, so often a grower will switch to a biological to maintain pest control during that time period. Biologicals can also be applied in the morning and the workforce can return to the field in the afternoon so often they are used for that purpose.

But Dr. Marrone, who is founder and CEO of Marrone Bio Innovations (and previously founded AgraQuest), said the many new biologicals on the marketplace are also efficacious. “They offer an ROI. I look forward to the day when the average grower will use a biological to improve crop yields, quality and the nutritional content of their fruit.”

She has spent her career developing biologicals and she knows they work and that they are equal to or better than the chemical alternatives that they are sold against. Marrone knows most growers don’t believe that and she believes it is a perception and an education problem, not an issue with the products themselves. She notes that most growers are not even sure what a biological is. One recent survey in the almond industry revealed that 83 percent of growers couldn’t define it. A biopesticide basically controls pests and disease through non-toxic measures such as disrupting the lifecycle of a pest. For example, the firm sells Venerate, which immediately—in less than one minute according to Marrone—stops the feeding of insects such as the Peach Twig Borer. Damage to the crop immediately stops and the bugs die off within a week.

This, Marrone said, is a great example of the perception problem facing the biologicals industry. Often researchers, at the land grant universities she said, will conduct a biological vs. chemical trial and use an unfair test to judge efficacy. In this example, a researcher might set up the test to determine how many of the pests are still alive 48 hours after application. The chemical could be judged as more efficient because a greater number of pests are dead. Marrone said this is a lack of understanding of the mode of action involved in the biological. In both instances, damage to the crop has been halted. A week later, the trees treated with the biological might show far fewer pests, but that was never measured.

She also complains that biologicals are often trialed as a stand-alone crop protection tool against a cocktail of chemicals. Marrone said organic growers do use biologicals as a stand-alone or in concert with other products registered for use on organic crops. But, she said 80 percent of biologicals are used by conventional growers as part of a rotation or in the tank mix with chemicals. When being trialed, Bio Innovations uses these very common practices to test their products and she believes these type of real-solution trials should also be utilized by independent researchers when gauging their efficacy.

Another very important factor with biologicals, according to Marrone, is that their potential use expands and evolves once they are registered and being used by growers. She explained that a chemical typically takes about $300 million and a dozen years of testing to pass regulatory muster and reach the marketplace. Their toxicity requires that level of testing. As such, once these chemicals come into the market, the labels are complete and the researchers know everything there is to know about them. They have probably gone through thousands of trials on every conceivable crop and each of those crops is listed on the label.

To register a biological, it costs about $10 million and they usually hit the market within five years. These products do go through rigorous testing by government officials so their safety is assured, but their number of uses are not always known. They might have only had 250 trials on handful of crops. Marrone said typically about 10 crops appear on the label but as early adopters test the product, more crops are added and the use instructions are further refined, and improved. Marrone said this is a different business model and one that growers aren’t necessarily used to, but at the end of the day it produces what they are looking for: more crop protection tools in their arsenal.

She noted that for specialty crops there are virtually no new chemical crop protection tools being introduced. The big companies are concentrating on the large program crops. The biological side is a different story. She estimated that 20 new biologicals were introduced in the past year. Marrone clearly believes biologicals are the future for the specialty crop industry. She added that Bio Innovations is starting to focus some of its attention on bioherbicides. “I believe it has been 25 years since a new chemical herbicide has been introduced.”

Besides offering a superior ROI for growers in her estimation, the other factor in what she believes will be continued growth of the biopesticide industry is demand by consumers and the supermarket buyers who deal with the growers. They are demanding increased sustainability, which means more environmentally-friendly crop protection tools and fewer residues on the fruits and vegetables in the marketplate. Marrone said the crop protection industry is seeing total sales decline, while biologicals are growing at a 15-20 percent annual clip and achieving greater market share. Currently, the biological industry represents about seven percent marketshare of crop protection tool sales.

Marrone said younger growers and younger researchers—and she could have added younger consumers—are fueling the growth of the biological industry.

 

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Safe Drinking Water Bill Moving Toward Finish Line

May 11th, 2018

A unique coalition of agricultural and environmental groups are close to realizing their goal of passing Senate Bill 623, which will create a “Safe and Affordable Drinking Water Fund” and shield growers from enforcement activities concerning nitrate contamination.

“We need everyone’s help right now,” said Gail Delihant, director of California government affairs for Western Growers, in late April. “We need a grass roots effort by our members in contacting their state legislators and urge them to pass this bill,” which is a budget trailer bill (BTB) that will probably come up for a vote in late June.

Emily Rooney, president of Agricultural Council of California, was equally steadfast in the need for rural legislators to step forward and support this bill. But, she was also extremely confident that success is at hand. “It will pass,” she predicted.

The bill was introduced by Sen. Bill Monning (D-Carmel) more than a year ago, with a goal of funding projects to assist disadvantaged communities that lack access to safe drinking water. The concept itself is not controversial. Delihant said there are many different contaminants from many different sources that impact California’s water supply. While nitrates from agriculture play a big role, so do many other compounds from other sources, including nature. Smaller, poorer water districts, mostly in rural California, that don’t have the rate payer base to fund the construction of huge water treatment facilities suffer disproportionately.

Delihant said it is a statewide problem that needs a statewide solution. She called it a “social problem.”

Monning began building support for his bill last year, working with both environmentalists and grower groups to fashion a bill that could gain broad support. Environmentalists supported the fund concept and wanted agriculture to be materially involved in the funding of it. Agricultural groups needed the State Water Board’s Office of Enforcement to cease its threatening enforcement actions against growers for causing nitrate contamination of drinking water wells. Those enforcement actions have been ongoing.

After months of negotiations, Delihant said the two sides reached agreement on those two main tenants of the bill. “In short, SB 623/BTB changes the California Water Code in a manner that keeps the State Board and Regional Board from bringing such nitrate enforcement actions for 10 years, and from bringing clean up and abatement actions for an additional five years,” she said.

At this writing, the money for the fund will come from several sources. A fee, or tax if you prefer, will be attached to every dollar of fertilizer sold in the state. For homeowners it will work out to six cents per $100 at their local home improvement store. For growers, the calculations will produce a $6 fee for every $1000 purchase of any fertilizer product. Dairies and non-dairy livestock facilities will also be paying into the fund. Further, a charge of 95 cents per month will be levied on every household throughout the state, with the exception of poor households that qualify for an exemption. Large industrial users will be charged $10 per month. Those funding sources combined are expected to generate $140 million annually.

It is the fee/tax collected via the water agencies that has been the cause of most of the opposition. The Association of California Water Agencies (ACWA), some city governments and anti-tax Republicans have come out against the bill. Delihant said discussions with rural Republicans are turning the tide and garnering support. It should also be noted that a significant number of ACWA members—especially those water agencies in rural areas—have supported SB 623. That group includes: Arvin-Edison Water Storage District, Belridge WSD, Berrenda Mesa Water District (WD), Kaweah Basin Water Conservation District, Kern Delta WD, Lost Hills WD, Semitropic WSD, Sultana Community Services District and Wheeler-Ridge Maricopa WSD.

Rooney said politics often create “strange bedfellows” but never more than in this fight. She noted that her board of directors specifically wanted a broad funding mechanism that included industrial and residential participation. “That was 180 degrees different than ACWA’s position,” she said, adding that ACWA and the Ag Council are typically aligned on water issues.

In this instance, ACWA, and many of the opponents, want the money to come from California’s General Fund. Rooney said the ag coalition was opposed to that funding source because of its unreliability. In poor economic times, the General Fund is often strapped “and that funding could dry up quickly,” she said.

Another anomaly is that the fund will largely tax urban users to build rural projects. Yet the urban legislators, mostly Democrats, are behind the effort while the rural legislators, largely Republican, are against the effort.

“Over the next several weeks, we are going to be out there telling the story of who this is going to help,” said Delihant.

She believes as it become clear that it is the constituents of the rural legislators who will receive the greatest benefits, minds will change. Rooney agreed, noting that discussions recently have revealed a lot of open minds willing to listen to the arguments by agriculture.

In Governor Brown’s proposed 2018-2019 budget, the summary document included language indicating the administration will be advancing the framework of SB 623. The California Department of Finance posted the budget trailer bill language February 1st with the SB 623 language essentially intact. However, Delihant said negotiations are always ongoing on such bills and Western Growers and its agricultural partners on this effort will be diligent in making sure no critical changes are made to the bill.

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Pago: The Ag Labor Platform

May 11th, 2018

Envision a future where digital systems completely replace hand-written time sheets and where you can receive real-time visibility of crew time, production and labor costs. With Pago, that future is here.

Pago is the first product to serve both farm labor contractors and growers by offering a platform where the two parties can work collaboratively to carry out crucial labor activities. These include everything from scheduling crews and calculating time rate and piece rate to monitoring crew activity in real time and simplifying payroll systems and contract negotiations through easy-to-use digital systems.

“When developing Pago, we first took the perspective of it working for labor contractors and then enhanced the system to benefit growers,” said Mike Dodson, CEO of Pago. “Our software team partnered with farm labor contractors and growers to build the product, ensuring that that the platform met the needs of both parties.”

Pago is the brainchild of the same agtech software team that built Lotpath Quality, a leading quality control system for fruits and vegetables that improves food chain visibility and ensures the highest quality products travel through the fresh supply chain. After the success of Lotpath Quality, the team wanted to take their experience and knowledge of ag and tech to build a new product that would help solve another pressing industry issue: labor.

HOW PAGO WORKS

For Farm Labor Contractors

For farm labor contractors, the Pago team can help configure an account or labor contractors can configure their account themselves. This includes importing employees and crews; setting up grower customer and field lists; and designing contracts to include compensation information for employees and billing details for customers. With contracts in place, the labor contractor or grower can start scheduling crews to work on particular fields on particular days.

In the field, the innovative technology behind the Pago employee badge is used. Pago badges allow for easy time keeping, as each badge is linked to an employee’s profile and photo and equipped with a chip that can be scanned with the Pago Timekeeper smart phone app. Recording an employee’s time in a crew, clocking in and out and collecting production information for each employee has never been simpler.

As data is recorded in the mobile app, the information is automatically sent in realtime to the Pago cloud servers. The time and production data is immediately visible to labor contractor office staff and the grower field personnel. The data can be used to pay employees and invoice the respective grower. In addition to crew scheduling, time keeping and payroll, Pago also offers labor contractors the ability to track labor costs, monitor crew production efficiency, create grower bills faster, and maximize profitability.

 

For Growers

Similarly, Pago provides growers with real-time visibility of productivity of every crew throughout the day. Growers are also able to see how must costs are accruing in real time.

To get started, a grower partners with the Pago team and the grower’s farm labor contractors to set up linked accounts, with online contracts that are accessible to each party. The online contracts include detailed compensation and billing parameters that enable time and production tracking and set the financial terms of invoices from labor contractors to growers. Growers can receive invoices from farm labor contractors through the online platform and export cost information to their accounting system for crop costing and initiating labor contractor payments.

“We are most proud of how easy the product is to use and the sophisticated technology behind the platform,” said Dodson.

To be useful to all growers and farm labor contractors across the nation, time rate and piece rate calculations are compliant with federal and state laws. Compliance rules apply to the jurisdiction where work is performed, and a real-time compliance engine monitors crew and employee time and production data to warn of any compliance issues (e.g., minimum wage, overtime, meal penalties, piece rate pay).

A WG PARTNERSHIP

Pago is currently headquartered in Fresno, CA, and now has reach in Salinas through the Western Growers Center for Innovation & Technology (WGCIT). Dodson was one of the inaugural entrepreneurs with a “hot desk” in the WGCIT. Joining the Center two years ago, and experiencing the benefits, he found it only appropriate to have the official public unveiling of Pago during WGCIT’s “Innovation in the Imperial Valley” event in Brawley this past February.

“The Western Growers Center for Innovation & Technology has provided us many opportunities to introduce our products to the industry,” said Dodson. “The Pago team especially appreciates the ongoing events where leaders from the industry are invited to meet startups and share ideas on innovation.”

Through the support from industry members and the drive, knowledge and skill of the Pago team, the product is continually being refined to be on the cutting-edge of ag labor platforms. Moving forward, Dodson said he hopes to enhance the product enough to where billing and payment processing can be done at a touch of a button and farmworkers can directly access Pago to receive information such as paycheck stubs and W-2s.

Both the web platform and mobile app are available in English and Spanish.

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Water Year 2017/18 Solid Spring Helps with Disappointing Winter

May 11th, 2018

A series of March and April storms helped California move much closer to a normal year in terms of precipitation and helped keep the dreaded “D-word” out of the conversation for at least another year.

“As of today’s date (April 16), we are still well below average with regard to snow depth,” said Doug Carlson, who is an information officer with the California Department of Water Resources. “We are only a bit over 41 percent of normal.”

He said a very dry February is the major culprit. Often the wettest month of the winter, this year February checked in with only about 15 percent of its normal precipitation. But Carlson said above average rain in March and April, plus a strong reservoir position going into the water year, has helped offset the less than stellar winter. Though the below average snow depth means less reservoir-filling runoff this spring, Carlson said many of the state’s largest reservoir are at or above normal as the rainy season winds down. For example on the April 16th date, the Shasta reservoir in Northern California was at 108 percent of normal while the Don Pedro Reservoir in the Central Valley was sitting at 123 percent of normal. And that same day, Northern California was being pelted with a cold storm that was sure to deliver a late blanketing of the Sierras.

Checking up-to-date data, Carlson said the state was at 84 percent of its average precipitation at its Northern California weather stations, which is where the vast majority of rain falls each year. Southern California was still tracking far below normal, but Carlson said those numbers are not as accurate as the north simply because the southern half of the state is not equipped with as many weather stations because that is not where the rain and snow typically falls and accumulates.

Though the numbers are looking better, Carlson said many are still concerned about the overall trend. From 2012 through 2015, those four years were historically dry. Carlson said some are wondering if the 2016/17 water year was just an outlier and dryer conditions are going to prevail once again. Again, a year that approaches 85 percent of average isn’t a huge concern assuming it is followed by a year that tops average. But, if this below-average year continues a string of below-average years, only interrupted by one rainy year, concerns will be heightened. As a point of reference, the four drought years produced an aggregate rainfall of less than 75 percent of average, which means the average of the previous 50 years.

Again, speaking in averages, about 75 percent of California’s annual statewide precipitation occurs from November through March with 50 percent occurring from December through February. The average precipitation is dependent on a relatively small number of storms. Typically, only a few storms during the winter season can determine if the year will be wet or dry.

The March storms underscored this fact. On March 1, the statewide snow pack was only at 23 percent of the average. By April 1, average snowpack had climbed to 52 percent of average.

In a press release distributed in early April, California Department of Water Resources Director Karla Nemeth expressed exasperation at the state’s weather patterns. “These snowpack results—while better than they were a few weeks ago—still underscore the need for widespread careful and wise use of our water supplies. The only thing predictable about California’s climate is that it’s unpredictable. We need to make our water system more resilient so we’re prepared for the extreme fluctuations in our water system, especially in the face of climate change.”

The snow survey found a snow water equivalent (SWE) of 12.4 inches, or 49 percent of average for this time of year. The snowpack normally provides about a third of the water for California’s farms and communities as it melts in the spring and summer and fills reservoirs and rivers.

Several days later, DWR released a report detailing the water available for aquifer recharge, which was also less than optimistic. The updated analysis of California’s water resources argued that investment, innovation, and infrastructure will be necessary to achieve the state’s goal of sustainable groundwater management. The report provided an estimate of the amount of water available to replenish groundwater basins to help inform development of local groundwater sustainability plans for critically overdrafted basins by January 2020.

“The WAFR (Water Available For Replenishment) report makes it abundantly clear that a diversified water resources portfolio is needed at the local, regional and state levels,” said Director Nemeth. “If California is to simultaneously bring sustainability to its groundwater basins, cope with climate change, and meet future demands, water managers must embrace a comprehensive, innovative approach.”

DWR estimates that 1.5 million acre-feet (MAF) of water may be available to replenish groundwater basins in an average year. With additional investments in programs such as water storage, conservation, recycling, stormwater capture, desalination, and conveyance improvements, more water could be available for replenishment in the future.

Water deliveries from the State Water Project and the federal Central Valley Project have reduced groundwater overdraft in many basins in the state; however, average deliveries have declined in recent years due to drought and regulatory requirements to protect water quality and critical species in the Sacramento-San Joaquin Delta and tributaries. Climate change is expected to further exacerbate these challenges. The WAFR report states that constructing additional storage north and south of the Delta and improving Delta conveyance infrastructure would limit the decline of water project deliveries and provide a more reliable supply of surface water for replenishment and other purposes.

The WAFR report analyzed water supply, demand, and runoff in 10 regions of the state to estimate how much surface water could be available to replenish groundwater basins. It provided a visual depiction of supply and demand in each region, as well as a range of potential water available for replenishment estimates. It is available through DWR.

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WGCIT Sponsor: City of Salinas Offered Impetus for AgTech Movement

May 11th, 2018

Today, the Western Growers Center for Innovation & Technology is fulfilling its potential and helping connect agriculture and technology in a way that is moving the industry forward and tackling some difficult challenges.

Dennis Donohue, consulting director of the Center, played an integral role in the establishment of the concept when he was mayor of Salinas, and the city, through its Economic Development Department, was a founding sponsor and continues to support the center financially as well as through collaborative efforts.

Andy Myrick, manager of that department, said the sponsorship has been well worth the money and effort. He noted that, before he came aboard, the city of Salinas identified agtech as part of its long-term strategy to create jobs within the community. He recalls that a financial institution decided to close down an operation, which meant the elimination of hundreds of jobs. Mayor Donohue convened a committee of stakeholders in 2007 in which the long term strategy was developed and embarked upon.

In fact, Donohue, with deep roots in the Salinas Valley produce industry, ran for mayor in 2006 proclaiming he would be the “Mayor of AgTech.” During his first year in office, he was also the chairman of the board of the Grower-Shipper Association of Central California. Marrying city politics with the agricultural industry was a natural for the leader of both at the time. But Donohue quickly gives credit where it is due, noting that many people played vital roles in bringing the idea he ran on in 2006 to fruition in 2015 with the opening of the center. Along the way, Bruce Taylor of Taylor Farms and John Hartnett of SVG Partners got involved and helped give the agtech concept shape. The idea of a center bridging the gap between the Silicon Valley and the Salinas Valley took root. Others contributed ideas and pledged funds. And then, Western Growers stepped forward to man the operation and nurse it into flight. “It was an evolutionary process with the right people at the right time stepping forward to make it happen,” Donohue said.

Myrick said the results so far have been satisfying. He noted “at last count, there were 51 companies in the center. At least three or four have left the nest and started businesses of their own where they are hiring people.”

He added that Salinas has become the place to be if you are an agtech entrepreneur. Recently, he hosted a South Korean delegation that included a trip to Salinas and a visit with government officials on its U.S. ag tour. Myrick noted that for foreign delegations especially, the government is the focal point when they come to visit. “We are often the point of entry for new companies.”

Donohue, who left office in 2012, said his successors have followed suit on the idea and Salinas has changed its reputation. He told the story of a Sacramento legislator identifying the current mayor as coming from the city doing all the work in the agtech sector. It has been a game changer for the city and the center is helping lead the tech charge for agriculture at large.

While Salinas, of course, is home to many industries, Myrick said there is no doubt that agriculture is at the core of the city’s foundation. City officials recognize that. Moving forward, he said the city does see one of its roles as identifying barriers faced by agtech entrepreneurs and addressing those problems that have a governmental component. He said the high cost of living in Salinas is one of those challenges and the city is involved in searching for answers. He pointed to farmworker housing projects developed by at least two different companies in the recent past as one solution to that problem. In general, he noted that Salinas is on an upward trend with an unemployment rate that is dropping.

 

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Crisis Management Plans Need to Include Media Engagement

May 11th, 2018

Although rare, any company can come under the scrutiny of the media spotlight when faced with a food contamination event including a product recall. The media may converge on your facilities with reporters trying to get interviews with anyone they can—be they employees at the site, consumers, or people working at adjacent businesses.

If this scenario were to play out at your company, would you be prepared to handle it? How would you deal with the media? What would you tell your employees? These are all difficult questions to answer, but they can be dealt with if you devise a crisis management plan specifically to deal with the media.

Steve Gray and Marv Rockford of the media consulting firm of Rockford Gray have spoken at industry events detailing what should be included in a company’s media management plan. They note that while many companies have crisis management plans in place, few of those plans address dealing with the media.

To develop an effective crisis management plan, consider the following:

•   To start, the plan should have a checklist outlining what needs to be done and who is going to do what in case of a crisis. Each task should have someone designated to it—and a backup person, just in case.

•   Write a template press release where the blanks can be filled in quickly and correctly and given to the media. One of the most useful tools is a “buy time” statement or “hold statement.” It engages the media and lets them know you’re trying to help them.

     Gray recommends something similar to the following statement:

   “…[I] can confirm that there has been an incident, but we don’t have details. We want to help you with your story, but we need to gather the facts before saying anything. I don’t have enough information to answer your questions. I know we all want to get the story right. Our spokesperson will be back in contact with you in 60 minutes to give you an update. All briefings will come from this safe area.”

•   Appoint a spokesperson who can show that the company is in command of the situation, provide the information that is available, and who can demonstrate sympathy for the victim or victims. If the employer does not properly tell its side of the story, someone else becomes the source. Once the bad story is out, there is no way to reel it back in, Rockford says.

•   Without a company spokesperson to disseminate information, reporters will seek out anyone for information. They will jump on the Internet and research past incidents and they will call on experts to speculate and even assign blame.

•   All other employees should be told unequivocally not to speak to the media. If employees start answering questions before all the facts are known, inaccurate information is liable to get out.

•   Don’t hide from the media, or take too long issue a statement. According to Rockford, “If you play hard to get, they’ll come right after you. Not presenting a spokesperson makes everyone a spokesperson.”

•   Never say ‘no comment.’ “It means you’re hiding something. It indicates guilt,” Gray says. “It says we’re out of control here. We don’t know what we’re doing. It can sometimes be taken as a confirmation of information.”

•   Remember that all this is secondary to first dealing with the victims and their families—the first priority in any crisis plan. Who are the victims will be the first question asked by reporters.

•   A plan is useless unless it gets a dry run, warned Rockford, saying: “It doesn’t help if you have a plan but don’t take it off the shelf, dust it off and look at it occasionally and actually drill on the plan.”

 

Some tips for speaking to the media:

•   Anticipate questions reporters will ask. Determine ahead of time what you will say and what you won’t or can’t say.

•   Have fact sheets prepared. Prepare a written statement for distribution, preferably with the help of your attorney. Be sure to share this information with your staff. They may feel very threatened and/or demoralized by the bad publicity and may be receiving front-line questions from clients, families and friends.

•   Speak in sound bites—short sentences and concise thoughts. Don’t ramble. Emphasize key points made in the news release, and don’t deviate from them.

•   Avoid extremes. Do not defend yourself too strenuously, appearing too eager to avoid blame.

•   Maintain an open mind and a good attitude about dealing with the media. Much of the time these professionals want to work with you, not against you. Your comfort level or attitude toward the media could influence the treatment you receive.

•   Don’t lie. The media is relatively kinder to those who openly admit they screwed up. It’s disarming. Although they may not become your friend, they will at least realize that you have a conscience.

Communication management is just one of the many resources included in Western Growers Insurance Services’ exclusive program Western Growers Shield™ —designed to maximize your loss recovery—and minimize your exposure to risk in the first place. To learn more about this program, please contact me at (602) 757-7869 or [email protected].

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Small Compliance Errors Can Become Large Liabilities

May 11th, 2018

By Jonathan A. Siegel, ESQ.  of Jackson Lewis P.C.

Employers managing for success should foster a culture of workplace compliance now more than ever. As operations expand, systems supporting the business should grow with it. Additionally, employers should consider reviewing their operations to ensure there are not systematic compliance issues which have not been previously identified or addressed.

In light of recent decisions that have made it more difficult to bring a class action against an employer for wage and hour issues, especially if the employer maintains arbitration agreements, and the procedural hurdles in bringing a class action, plaintiff lawyers are turning to the California Private Attorney General Act (Labor Code Section 2698 et seq.), known as “PAGA,” at an increased rate.

An employer who is proactive in workplace compliance will have more options to address the issues and may be able to be more creative in fashioning solutions than if responding to a PAGA lawsuit. When navigating the minefield of workplace compliance issues, it is important to “look under the hood” from time to time before something breaks. The fact an employer has not been subject to past litigation should not lull the employer into a false sense of security.

In California, small compliance issues can grow into significant liabilities under PAGA. Before January 1, 2004, when PAGA became effective, only several agencies in California had the authority to enforce most provisions of the Labor Code, and to recover civil penalties for violations. Under PAGA, employees themselves not only are able to sue employers for violations if a state agency has not already acted, but they may do so on behalf of all other employees. Under the statute, plaintiff lawyers and employees can gain substantial financial rewards for bringing such claims against employers.

Before doing so, the aggrieved employees must comply with administrative procedures and provide written notice of the intent to pursue a PAGA case by providing notice of the claim to the California Labor and Workforce Development Agency (“LWDA”) and the employer. The employee must state, “the specific provisions of [the Labor Code] alleged to have been violated, including the facts and theories to support the alleged violation.” By giving notice, the employee provides the LWDA with an opportunity to determine whether to investigate the claim further and likewise provides the employer with an opportunity to cure the alleged violations. If an employer receives a letter addressed to the LWDA alleging Labor Code violations, it is important to immediately consult legal counsel since there may be opportunities to cure violations.

 

Under PAGA, Penalties Can Grow Quickly

Employers not in compliance with California’s wage and hour laws regarding minimum wage, piece rate, off the clock work, overtime pay, meal and rest periods, accurate time keeping records, itemized wage statements or other Labor Code provisions, such as recordkeeping and posting requirements, could face potential exposure from one violation.

Why? PAGA provides for the imposition of potentially harsh penalties in the event of a violation. If no penalty for a particular Labor Code violation is specified, the statute provides:

 

If, at the time of the alleged violation, the person employs one or more employees, the civil penalty is one hundred dollars ($100) for each aggrieved employee per pay period for the initial violation and two hundred dollars ($200) for each aggrieved employee per pay period for each subsequent violation.”

 

The “aggrieved employees” are entitled to retain 25% of the civil penalties recovered under PAGA. The remainder is distributed as follows: (a) 50% to the General Fund; and (b) 25% to the Department of Labor and Workforce Development for programs aimed at the education of employers and employees about their responsibilities and rights under the Labor Code.

Some plaintiff’s lawyers have tried to argue that the penalties should be “stacked” which could lead to even greater exposure. For example, if it is alleged the employer failed to provide rest periods, meal periods and failed to properly pay overtime, PAGA could provide $100 to each aggrieved employee per pay period for the initial violations and $200 for each subsequent pay period which would cover all three allegations. By arguing the penalties should be stacked, the plaintiff’s lawyers are arguing there should be PAGA penalties for each violation, multiplying exposure by three times what it should be. We disagree with this argument but it is the type of litigation which employers could face.

There also have been some recent cases which employers should try to take advantage of in defending PAGA cases and related wage and hour claims. In Kim v. Reins International California, Inc. (B278642, Cal. Ct. App., December 29, 2017), the Court of Appeal for the Second Appellate District held an employee-plaintiff, who had settled and dismissed his individual claims under the Labor Code, was not able to maintain a PAGA claim on behalf of other “aggrieved employees.” The Court held that because of the settlement and dismissal of his individual claims, the employee-plaintiff was no longer an “aggrieved employee.”

 

Cost of Solutions vs. Possible Exposure

In some cases, the cost of avoiding such claims may be incredibly minor versus the potential exposure. For example, increasing the number of time clocks at an employer’s entrance, and also having time clocks at the employer’s break room, may avoid or minimize certain type of wage and hour claims.

If an employer has only one time clock at the entrance to its facility and 100 employees who must clock in and out at shift change, there may be a concern the employees must wait in line for five to seven minutes to clock in. It could be alleged the employees are at the control of the employer while working and the employees should be paid for the unusually long wait time. A plaintiff lawyer may allege the employees should have been paid for the time and could also try to allege related claims like unpaid overtime, incorrect itemized wage statements and, for former employees, violations of Labor Code section 203 dealing with not paying all wages upon end of employment. Here, the employer may consider adding four or more additional time clocks at the entrance and the break room so the employees are not subject to any wait time or minimal wait time to clock in. The cost of these clocks is minor in compared to the possible exposure.

 

Culture of Compliance Can Be a Profit Center

We recommend employers invest in their Human Resource function, payroll and time and attendance systems. Employers should consider preventive wage and hour audits to review their systems. It is also helpful to invest in your management team by training and educating members of management regarding the importance of wage and hour compliance and the most common mistakes front line supervisors can make. While changing workplace culture can be difficult, this is one area where the employer will see a return on investment.

California employers will likely be faced with wage and hour claims at some point so why not be proactive in compliance initiatives? An employer who is proactive in wage and hour compliance is turning an area of possible exposure into a profit center.

 

Jonathan A. Siegel is a principal at Jackson Lewis P.C., a national law firm with 5 offices throughout California and more than 56 offices across the country dedicated to representing employers with respect to workplace law.

 

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Avoiding Problems with Employee Leave of Absences

May 11th, 2018

Leave laws are complex and employers face serious compliance challenges tracking the eligibility of their employees’ leave of absences. If an employer fails to comply with state or federal leave of absence laws or their own company policies, it can face potential liability.

As an employer, it is important to minimize the effects an employee’s leave of absence may have on your business, while still providing the time away from work your employee may be entitled. With a fortress of leave laws protecting employees, employers should exercise caution to guard against costly litigation should a dispute arise. Extended leaves may place a hardship on business operations, including the cost of replacement labor and lost productivity.

The following is a summary of some applicable provisions, not a complete recitation of all governing laws, and should not be construed as legal advice or an opinion on specific facts that may apply to you.

 

The Family Medical Leave Act (FMLA) is a federal law that protects a covered employee’s job while he or she takes an unpaid leave of absence for medical or family obligations. The FMLA requires covered employers to maintain employees’ health benefits during leave and restore employees to their same or an equivalent job after leave. FMLA leave generally extends up to 12 weeks during an employer-specified 12-month period, but up to 26 weeks of leave are available to care for a military family member. It sets requirements for notice, by both the employee and the employer, and provides employers with the right to require certification of the need for FMLA leave in certain circumstances. The law protects employees from interference and retaliation for exercising or attempting to exercise their FMLA rights and includes certain employer recordkeeping requirements. The FMLA also provides for continuation of group health insurance coverage.

Generally, an employer is covered under the FMLA if it has 50 or more employees on its payroll for 20 or more calendar workweeks (which do not need to be consecutive) in either the current or preceding calendar year.

An employee is generally eligible to take FMLA leave if the employee has worked for the employer for at least 12 months, worked 1,250 hours over the 12 month period prior to taking leave; and at least 50 employees work for the employer within a 75-mile radius.

The state counterpart to the FMLA is the California Family Rights Act (CFRA), which mirrors the federal law in most, but not all, respects. For example, pregnancy as a serious health condition is covered under the FLMA, but not under CFRA. As a result, leave under CFRA runs consecutively with the Pregnancy Disability Law (PDL), not concurrently. For purposes of this article, any reference to the FMLA would also apply to CFRA leave.

While these laws and others (including, but not limited to, the Americans With Disabilities Act, workers compensation, and the California Fair Employment and Housing Act) protect employee rights, employers can take the following actions to protect their rights to effectively manage FMLA leave specifically and stay ahead of issues that may arise.

 

Document All Absences

Documentation is critical in administering the leave as it can support any action that might be needed in the future. Employers who fail to track employee leave eligibility may expose themselves to potential liability, including a costly wage and hour dispute, or cause their employee to lose their health plan benefits just when they need the coverage the most.

All absences, whether they are due to illness or injury and including vacation requests, should be documented. This allows such requests to be compared with requests for FMLA leave to help detect possible abuse as well as limit liability.

 

Double-Check Eligibility

When an employee requests FMLA leave, it is critical that the employer verifies that the employee is eligible for FMLA leave. Courts have ruled that if employers represent that an employee qualifies for FMLA leave and the employee acts based on that representation, the employer would need to honor such eligibility. Double-checking eligibility can minimize this potential risk.

 

Employers May Require Employee to Submit Certification to Support FMLA Need

Employers should generally request a medical certification and provide the form to the employee within five business days of when the employee notifies the employer of the need for leave or, if the leave is unforeseen, within five business days of when the leave starts. Employers often request the certification when providing the required notice of eligibility, rights, and responsibilities to the employee. The certification is a document or form that is completed by the employee and, when appropriate, a health care provider.

The certification will allow the employer to:

• Understand the likely periods of absences; and

• Verify that an employee, or the employee’s ill family member, has a serious health condition (or, in the case of military family leave, that facts exist to support the employee’s request for such leave).

The employee is required to provide the initial certification if his or her employer requests it. Employees are responsible to find a health care provider to provide a complete and sufficient certification, and to pay for the cost of the initial certification. After acquiring a complete and sufficient certification, an employer is not permitted to ask for more information, such as requiring a doctor’s note for each FMLA-related absence. Requiring a doctor’s note for each unpaid FMLA related absence may be considered interference with the employee’s use of FMLA leave.

 

Train Managers and Supervisors

Managers and supervisors should know the basic provisions of the law as it pertains to leave of absences, details relative to employers covered FMLA and the requirements for employee eligibility. This information is in addition to your company’s specific policies and procedures relative to leave of absences. Educating your leadership will not only help them understand their employee’s rights to FMLA leave, but helps the company avoid risks and aids in identifying leave abuse

To prevent problems with wage and hour claims and health plan eligibility, it is important to ensure that your Human Resources Department is educated on the industry’s best practices for legally complaint leave and disability policies and enforces them. Western Growers provides training, resources and legal specialist referrals to ensure that your Human Resources Department is educated, informed, and up to date on the law’s latest requirements.

For more information about training, Western Growers members may contact Lupe Cuevas at [email protected].

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Update on 2018 Regulatory Issues

May 11th, 2018

The 2018 California legislative year is proving to be very active for Western Growers staff on a wide variety of topics including the perennial issues of labor, water, and the environment. As we continue our engagement on these issues at the Capitol, WG staff is also focused on safeguarding the best possible outcomes for our members within the regulatory arena. It is interesting to note that Governor Brown is in his last year as the state’s chief executive. While his administration has pursued an aggressive schedule of regulatory proposals, it has also embraced pragmatism in addressing the specifics of many (but by no means all) of the regulations themselves. Some of the important regulatory items which we are currently working on include proposed regulations on the prevention of heat illness in indoor places of employment, the update of Wage Order 14 pursuant to the recently enacted statute on agricultural overtime, and implementation of the Funding Agricultural Replacement Measures for Emission Reductions (FARMER) program at the California Air Resources Board (CARB).  There are numerous other regulations that we could highlight but the list above represents those that have direct impact upon your agricultural operations. A brief synopsis of each of these topics follows below.

The California Division of Occupational Safety and Health (Cal/OSHA) is undergoing development of an indoor heat illness prevention standard that would apply to all indoor work areas where the temperature equals or exceeds 80 degrees Fahrenheit. The development of this standard is required by SB 1167 which was signed into law in 2016. Protecting employees from heat illness, whether indoor or outdoor, is important to ensuring a safe, effective, and efficient workplace. WG is working closely with other industry partners and the greater business community to ensure that compliance costs are minimized as much as possible and that any specific regulatory directives are actually feasible. WG also played a significant role in advocating that any new standard on indoor heat illness be separate and apart from the outdoor heat illness prevention standard in order to avoid confusion for employers and employees alike. Our industry already has well understood training and implementation policies for complying with the current outdoor heat illness prevention standard.

WG staff continues to explore and work with the California Department of Industrial Relations (DIR) and the Division of Labor Standards Enforcement (DLSE) regarding the statutorily required update to Wage Order 14. SB 1066 (the bill extending agricultural overtime in California) mandated that the wage order be updated to reflect the new overtime requirements for agricultural employers. WG continues to advocate that the long-standing exemptions that are currently delineated within Wage Order 14 (irrigator exemption and others) be maintained in the updated order. These exemptions were previously vetted by the Industrial Welfare Commission and found to be necessary and applicable to the agricultural industry. WG is also supporting the establishment of the FARMER program at CARB. This program will allocate $135 million from the Air Quality Improvement Fund, Alternative and Renewable Fuel and Vehicle Technology Fund and the Greenhouse Gas Reduction Fund to incentivize farmers to purchase cleaner trucks and equipment that will reduce atmospheric emissions. The majority of this funding will be allocated to the San Joaquin Valley Air Pollution Control District since this is where the most significant air quality challenges currently exist. However, other air districts will also be receiving a portion of the funding based on their inventory of agricultural equipment. This program will help farmers reduce emissions from the agricultural sector in a very cost effective and efficient manner.

If you have any questions about these issues, please contact WG staff for more information.

 

 

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Trump, China, Tariffs, and TPP

May 11th, 2018

By Christopher Oerman

With the presidency of Donald Trump, the United States has found itself on the brink of a trade war with China. On President Trump’s first full day in office, he notoriously backed out of TPP, or the Trans Pacific Partnership. The Trans Pacific Partnership was an agreement between 12 countries: the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It had long been a campaign promise to pull out of the deal and even mirrored the opinion of his counterpart, the Democratic candidate Hillary Clinton. Both cited TPP as an unfair deal where America loses and the rest of the trade members received the majority of the benefit.

In March, President Trump announced a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. This was met with hostility from trade partners as well as American politicians as a hindrance to trade and essentially a tax on the consumer. The Trump administration argued that the trade agreements in place and current U.S. regulations made it nearly impossible for domestic steel producers to compete with foreign importers.

In addition to the steel and aluminum tariffs, President Trump also recently announced an initial 25 percent tariff on $50 billion of Chinese imports and potentially an additional $100 billion in tariffs on China. Along with these tariffs, the administration also announced a technology investment ban on China, citing national security concerns. The announcement from the Trump administration immediately sparked a retaliatory tariff from China on $50 billion of U.S. exports with a 25 percent tariff on pork and similar products, and a 15 percent tariff on fruit along with 120 other commodities. China currently exports $506 billion worth of products so a $50 billion tariff would represent roughly 10 percent of Chinese exports. However, the United States only exports $130 billion to China, so a $50 billion tariff against the U.S. represents 38 percent of United States exports to China.

President Trump has recently cited that the United States is charged a 25 percent tariff on U.S. vehicles being exported to China, while the United States only charges China 2.5 percent on the other end. Along with a 25 percent automobile tariff on U.S. exports to China, China also requires a “50-50” partnership between foreign car makers who wish to produce and manufacture in China and Chinese companies. President Trump has expressed that these unfair trade practices need to stop and be rewritten in fairer terms.

The recent tariff “stand-off” between the United States and China has sparked the interest of the Trump administration to potentially re-join the Trans Pacific Partnership. Rejoining TPP would put further pressure on China and provide relief to America’s farming community. Initially, withdrawing from TPP has hurt America’s farming community, even before China announced its tariffs on U.S. exports. Net farm income in 2018 is projected to decrease by 6.7 percent, to $59.5 billion. This amount represents the lowest amount seen in more than a decade.

The problem with re-joining TPP is that it may not be an easy task. There are a few scenarios that can play out. It would be considerably easier if the U.S. were to approach the other 11 participating countries and ask them if they could re-enter the agreement under the same terms it had before they had initially exited the agreement. This seems unlikely as the President has expressed that he wants a better deal than the U.S. initially had. It took five years for TPP to be negotiated among the 12 members with the U.S. ultimately abandoning the agreement. An additional year was spent to modify the agreement between the 11 remaining nations. If the U.S. is aggressive in its demands, it may leave a sour taste in the mouths of the other 11 negotiators who have finalized a new deal.

Along with the collaboration issues the United States can expect to face with the other 11 TPP nations, the U.S. also faces another problem. With midterm elections happening in November, the Democrats may take control of the House of Representatives. If this happens, there’s heavy certainty that the Democrats would not want to push through a Trump-endorsed TPP deal. This essentially puts a strict deadline for a deal to get done, or face total uncertainty past November.

In the coming months, we will see if President Trump and his administration can deliver on what he is perhaps best known for, “The art of the deal.”

 

 

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Rick Lester Antle (1956 – 2018)

May 11th, 2018

Rick Lester Antle, president and CEO of Tanimura & Antle, the largest lettuce and vegetable producer in the Salinas Valley, died after a brief battle with cancer on Saturday, April 14. He was 61.

Mr. Antle was born on December 15, 1956, in Salinas, CA. He grew up in the family business as the grandson of vegetable pioneer Bud Antle and son of the equally-imposing Bob Antle. He began his career at Bud Antle Inc., in the 1970s, and launched Tanimura & Antle with his father and brother and the Tanimura family in 1982. That continued a tradition of the Antles selling the crops that the Tanimuras grow dating back to 1949. Together the two families built a powerful and innovative company with Rick Antle taking a lead role in guiding the course for the past three decades.

Over the past 35 years, T&A has been every bit the industry leader that its predecessor Bud Antle Inc. was. It has been involved in all aspects of the industry and is the largest grower-shipper in the commodity business. He also led the company into many different innovative areas of the industry as it currently has a greenhouse, artisan lettuce operation in Tennessee and is greatly increasing its presence in the organic sector.

His latest achievements include the development of a housing project that provides homes for 800 farmworker employees at Spreckels Crossing. Additionally, he spearheaded the transition to an Employee Stock Ownership Plan (ESOP), which gives employees the chance to be part owners. Mr. Antle was fond of introducing new technologies and systems into the industry and never lost sight of its essential elements—customers, growers and employees. One of his proudest personal accomplishments was working alongside his sons Brian and Jeff. He constantly challenged his team to provide innovative solutions, even when the ideas were against conventional practice. He believed that creative solutions made Tanimura & Antle the nation’s premier independent produce grower, shipper, and distributor.

Mr. Antle was the embodiment of the phrase “larger than life” with a very big personality. Those close to him say he had an even bigger heart. He loved and absolutely mastered the art of adventure—on the mountain, the water, the air, and of course on the farm. Skiing, boating, flying and farming took up most of his life, but people always came first. Family, employees and friends regularly describe him as a fun-loving, work-hard-and-play-harder kind of guy. He was thoughtful, magnanimous and a respected mentor.

Mr. Antle served in many leadership positions within the Tanimura & Antle family of companies, charities, and community organizations. He was formerly the chairman of Monterey County Water Resources Agency. He also served on numerous boards including Pacific Ag Rentals, Iceberg Lettuce Research Board, United Fresh Produce Association, Earthbound Farm LLC, Ready Pac Produce Inc., Dulcinea Farms LLC, and the Cal Poly College of Agriculture Advisory Council.

He was the recipient of many industry awards and recognitions, including The United Fresh Produce Association 2016 Lifetime Achievement Award along with his wife, Tonya, The Packer 2005 Produce Man of the Year, and Cal Poly 1994 Department of Agriculture Distinguished Alumnus. He was also recognized by the Salinas Chamber of Commerce as its outstanding young farmer.

In 2001, Rick married his soulmate Tonya and they spent the last 17 years enjoying boating, traveling the world and their family. He adored his children and grandchildren and was proud of their many accomplishments.

He is survived by his beloved wife, Tonya Antle; his mom, Sue Antle; his sons, Brian (Amanda) Antle, Jeff Antle, and Anthony Pavich; his daughter, Natalie (Eric) Drobny, and grandchildren, Cameron and Spencer Antle. He is also survived by his siblings and many nieces and nephews.

A Celebration of Life Ceremony was held at the Tanimura & Antle headquarters in late April. In lieu of customary remembrances, the family requests that donations be made directly to The Rick & Tonya Antle Community Foundation Fund (www.cfmco.org/AntleFund) to support Mr. Antle’s favorite charities.

 

 

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May/June Edition of WG&S Magazine Now Online

May 10th, 2018

The May/June issue of Western Grower & Shipper is now available online.

In this issue:

If you have any questions about Western Grower & Shipper magazine, please contact Ryan Zilker at (949) 885-2249.

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Registration Now Open for WG’s Annual Meeting in Palm Desert

May 22nd, 2018

Western Growers will be hosting its Annual Meeting on October 28 – 31, 2018, at the JW Marriott Desert Springs Resort & Spa in Palm Desert, California. Registration is now open.

This year’s annual meeting will include riveting sessions on topics ranging from genomics and agtech to changing mindsets to influence results. Click here for the event overview.

Register today to receive the $995 early-bird pricing, for the full conference ticket. Guest passes can be purchased for $595. These rates expire September 1, 2018, so register today!

To register or for more information, visit http://www.wgannualmeeting.com/.

If you are interested in becoming a sponsor for this year’s annual meeting, contact Cheryl Wood at (949) 885-4798.

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