TRANSPORTATION Ag Exemption Eliminates Major ELD Hurdles

July 18th, 2018

The new rules governing the use of electronic logging devices (ELD) and hours of service in the world of produce trucking have eliminated many of the issues concerning the mandated use of ELD and basically given truckers back the time the use of an ELD would have taken from them.

In a nutshell, produce truckers—and truckers of other ag commodities—are off the clock as they travel the first 150 miles to and from the pickup point, including the loading of the product from its initial source. It isn’t until the trucker gets about 170 miles from the point of origin that the hours of service rules kick in. On June 7, the Federal Motor Carrier Safety Administration (FMCSA) published its guidance in the Federal Register clarifying the ag exemption and making it officially effective as of that date for the next five years.

The produce industry and other ag sectors have argued vehemently for the past several years that the ELD regulation, which officially went into effect in December of 2017, would add a day to the length of a cross-country trip for produce haulers because of the unique circumstances involved in the pickup of their load. As articulated, the argument held that produce is often not ready to be loaded when a truck arrives at the cooler of the grower-shipper. Because of its perishability, it cannot be held in inventory for an extended period like dry goods. This means that truckers often have to wait around for hours while the crops are harvested, packed and cooled before shipment.

Under the basic hours-of-service rules, this waiting around time counted against a trucker’s drive time. While the new ELD regulation didn’t change the hours of service rules, the use of electronic logging device does not allow truckers to alter their log book. With a written logbook, a trucker could wait until the truck is loaded and he is on the road to officially log in, and start the clock toward his mandated rest time. The ag exemption rules allows for that and even more.

Ken Gilliland, director of transportation for Western Growers, said that the ag exemption guidance, and a companion guidance concerning the use of a commercial vehicle for personal use are very helpful to the fresh produce industry. “We (the agricultural industry) basically got what we were looking for. Within the guidance, the FMSCA indicates that there may be need for some tweaking but generally it appears that they have covered all the bases.”

The FMSCA issued a temporary exemption for agricultural trucking after the new ELD regulations became effective in December of 2017. In January, a guidance about the exemption was published in the Federal Register and in late May a clarification about that exemption was released by FMCSA. The publishing of it in the Federal Register makes it official.

The ag exemption guidance clarifies two main points: one defining what a “source” is as it relates to the initial pickup of an agricultural commodity. The second point clarifies the exemption as it relates to operating a truck within 150 air miles (about 170 road miles) of a source prior to or immediately after picking up a load.

The new clarifications allow the pick-up point for the products—be it the field, packing shed or cooler—to be the “source” from which the ag exemption rules originate. While a trucker is within 150 miles of that sources—either going to pick up his load or leaving after having secured it—the hours of service rules are not in effect. When beyond that “exemption zone,” the hours of service rules and the mandated use of ELD governing transporters of all other goods will kick in.

For haulers of agricultural goods, after picking up a load, the hours of service limitations kick in when the trucker gets beyond 150 air miles from the point of pickup. Likewise, a hauler with an empty trailer going to a facility to pick up a load does not have to be concerned with violating the hours of service rules once within 150 air miles of the facility. When multiple pickups are involved, the 150 mile meter starts after leaving the first facility.

Two officials from the FMSCA further clarified the definition of a source in an email exchange with Western Grower & Shipper. Greg Bragg, who is with the California Division of FMSCA and FMSCA Chief of Operations Tom Yager, provided the definition of the “source” when answering a series of questions covering different scenarios. They revealed that there can be multiple sources for the same product covering different drivers. A driver taking the product from the field to an interim storage point would be covered by the 150 air-mile exemption, as would a separate driver taking the product from the interim storage point and putting it into interstate or intrastate commerce. The one caveat, however, is the hours of service exemption would not qualify “unless the only reason for the interim storage and multiple pick-ups is to skirt the intent of the regulation,” said Yager.

The FMSCA also defined a “source” as the U.S. facility where product coming from Mexico, Canada or overseas is off-loaded for shipment for processing.

They also clarified that the entire load has to qualify for the 150 air-mile exemption or the load does not qualify. “This follows the general policy that you cannot add any non-exempt items to an exempt load and still call it exempt. 100% is required,” wrote Yager.

However, he said a grower-shipper could re-ship product from one storage point to a cooler hundreds of miles away and each driver picking up that product would still enjoy the 150 air-mile exemption.

Gilliland said the guidance on the use of the semi-truck for personal conveyance is also important. This guidance covers all drivers not just those hauling agricultural products. Under the hours of service rules, FMCSA has said that a driver who has run out of drive time is allowed to use the commercial vehicle for personal conveyance as the trucker goes to the nearest facility to begin the mandated rest period. Gilliland said this allows truckers with a full load to proceed a reasonable distance to a hotel or truck stop. While they have to account for that time, it is allowed. Previously, he said the rule allowed for personal conveyance but only if the trailer was empty.

Gilliland said that the ag exemption clarification does concede that there could be further clarifications as questions arise. Both Yager and Bragg agreed with that assessment.

Bragg also said that while truckers of agricultural commodities do have an exemption from hours of service rules with regard to receiving a citation, the basic rules of safety and liability apply. He said a trucker cannot operate his equipment when it is unsafe because he is tired. For example, if a driver took eight hours from 150 air-miles out and back to pick up the load, it would be unreasonable, unsafe and thus unlawful for him to start his ELD and drive 11 hours without a break. He also noted that if a driver had put in 10 hours of driving as he arrived at that point 150 air-miles from the packing shed, those hours of service do not go away. Bragg said when the trucker gets back to that spot (150 air-miles out), he only has one hour left, unless he has taken the required rest time in the interim.

With both documents published on June 7, 2018, they will remain in effect until June 7, 2023, unless there is a superseding guidance published in the Federal Register in the interim.

California Legislature Reflects on June Election Signals

July 18th, 2018

In June, California voters made the first cuts among a multitude of candidates seeking statewide and legislative offices in both Congress and the state legislature. Under the state’s relatively new top-two election reform, the term “primary election” is no longer quite accurate, as that term refers to a closed process whereby partisans of each party choose their nominees for various offices. Now, voters of all parties (or none at all) choose the top two finishers to square off in the fall election, irrespective of the candidates’ party affiliations (if any).

For the remainder of the state legislature’s two-year session—which concludes on the final day in August—the June election results could create new dynamics and, where new funding is contemplated, headwinds for major legislative initiatives.

The most prominently-watched matter was the recall of a little-known state Senator from a Southern California district. Josh Newman, a Democrat, was elected in 2016 in something of a surprise, given the historically Republican hold on the district, which includes parts of Orange County, Los Angeles and San Bernardino counties. He was not up for reelection until 2020, but Republican activists initiated the recall process immediately after Newman joined his colleagues last year in voting to approve SB 1: the $5.2 billion per year increase in gas and diesel taxes. Recalling Newman from office would have the effect of ending the Democrats’ supermajority in the state Senate, an important opportunity for Republicans to regain a precious if small measure of relevance in Sacramento.

Congressional Republicans are counting on the qualification of a statewide initiative to repeal the gas tax to help drive up Republican enthusiasm to turn out in the fall election. The recall of Newman was a sort of “proof of concept” as to the power of the gas tax as a political weapon in all but the most solidly Democratic districts. With both Newman’s supporters and recall proponents deploying many millions of dollars, the results—a 58 percent to 42 percent vote to recall the Senator from office—are undeniable.

Last year, the Legislature tackled—for better or worse—several high-profile spending measures that required two-thirds votes for approval. The most prominent among them were an extension of the state’s carbon credits cap-and-trade system to achieve emissions reduction mandates established in previous legislation, and the gas tax increase.

Now, with the recall of Newman and the suggestion that other state legislative and even U.S. House races could be impacted by voter anger over the gas tax, other unresolved matters that require a two-thirds vote face an even tougher climb.

That would include legislation supported by Western Growers, most other agriculture associations, several major corporations, Gov. Brown, and environmental justice advocates. Senate Bill 623 (Monning, D-Carmel) would shield farmers from state and regional water board enforcement actions for prior and ongoing applications of nitrogen fertilizer, conditioned on compliance with the existing Irrigated Lands Program and related requirements. The bill would also create funding mechanisms, through a modest increase in the fertilizer assessment and a small monthly fee on residential water users, to provide clean and safe drinking water to nearly one million Californians whose water supplies are seriously contaminated by nitrates and a host of other contaminants of concern.

Prospects for the bill improved in January when Governor Brown proposed it be included in the state budget package, but in mid-June the governor and legislative leaders dropped that option, indicating that more discussion was needed and declaring their intent to address the issue in August.

The obvious added difficulty ties back to the Newman recall, which will cause additional hesitation among Republicans sympathetic to the agriculture industry’s push for passage of this legislation, which requires a two-thirds vote on account of the funding mechanisms for both ag and residential water users. Some Republican votes will be required for this legislation to pass.

One advocate for the ag industry’s drinking water legislation—himself a former Republican legislator—recently observed that as with many compromises requiring a two-thirds vote, the votes to pass SB 623 would not be clearly evident until the roll is actually called. That’s another way of saying that whatever the political excuses offered up by legislators of either party on any tough issue requiring bipartisan agreement, the merits of the proposed policy actually do matter and can prevail, if the advocates persist.

Building a Food Defense Plan

July 18th, 2018

In his FDA Voice blog post on March 28, 2018, Commissioner Scott Gottlieb discussed the Food Safety Modernization Act’s Mitigation Strategies to Protect Food Against Intentional Adulteration (commonly referred to as the Food Defense Rule or IA Rule).

This rule applies to both domestic and foreign companies required to register with the Food and Drug Administration (FDA) as food facilities. It primarily covers large facilities producing products that are widely distributed. The Food Defense Rule is relatively flexible, but requires every covered facility to implement a written food defense plan. If you own a large facility, you must comply with the rule by May 27, 2019, while small and very small companies have until 2020 and 2021, respectively, to be compliant. Unlike the food safety plan required by the Preventive Controls for Human Food Rule, which focuses on accidental contamination, the Food Defense Rule is concerned with intentional contamination and sabotage of the food supply. In a press release on June 19, 2018, Dr. Gottlieb announced the release of the first of a three-part industry guidance for the rule. The goal of this guidance is to provide greater clarity and predictability to assist facilities to come into compliance with the rule. The second and third parts of this guidance are expected later this year.

While farms are not required to have a food defense plan, having one is a smart choice. In March 2013, I wrote an article about the benefits of having a food defense plan and discussed how terrorists can consider America’s agriculture and food production as tempting targets to impact the U.S. economic welfare and its standing as a leading exporter of agricultural products to the world. In 2002, the United States and allied forces discovered agricultural documents and al Qaeda training manuals targeting U.S. agriculture. More recently, an incident of chemical terrorism took place in Germany in 2017, when blackmailers added ethylene glycol to baby food and demanded a ransom of 10 million euros to stop. This and other incidents underscore the importance of intentional contamination awareness and prevention. An intentional attack to our food supply represents a very serious threat and can have devastating public health consequences.

Fortunately, the FDA, under the Homeland Security and Presidential Directives, has begun to work with several government agencies, local, tribal, territorial and private sector partners to implement coordinated efforts to prevent, prepare and respond to threats against the food supply. In addition, the FDA’s new Food Defense Rule contains requirements and information that food facilities can utilize to develop and implement a food defense plan. Preventing intentional contamination plays a critical role in ensuring the safety of consumers, the integrity of our food supply and market stability. FDA’s Food Defense Rule requires a food defense plan for facilities and addresses four steps for evaluating and protecting food products:

1. Assessing vulnerabilities for each step of the facility’s process by considering the severity and scale of the potential impact on public health, the ability for the product to be physically accessed, and the ability for product to be successfully contaminated. The FDA defines vulnerability as the susceptibility of a point in a facility’s food process to intentional adulteration.

2. Identifying and implementing mitigation strategies to ensure vulnerabilities will be minimized or prevented. Following the vulnerability assessment, mitigation strategies and protective measures need to be established and implemented to protect facilities, personnel, and operations.

3. Taking steps to ensure the mitigation strategies are being implemented properly. The Food Defense Rule requires written procedures for monitoring mitigation strategies so they can be managed and corrected as needed. If a mitigation measure is not implemented at all or is not properly implemented, the food defense plan requires corrective action procedures.

4. Ensure personnel receive appropriate training and keep records of monitoring, corrective action, and verification activities. Company-wide cooperation is needed for preventing an intentional adulteration incident. Once the food defense plan is established, it should be explained to all personnel. A food defense plan must be reviewed every three years and records must be maintained and retained for two years after they are prepared.

 

How to get started?

Mandating companies to have a food defense plan is new regulatory territory for the FDA. However, for more than a decade, both the FDA and the USDA have been encouraging companies they regulate to voluntarily establish food defense plans. To facilitate plan development, they created numerous resources for helping companies establish and maintain effective plans. The FDA’s Food Defense Rule requirements closely follow USDA’s food defense plan recommendations making USDA’s resources quite suitable and applicable for produce companies wanting to get started on developing a plan. In addition, to the FDAs’ Food Defense Rule Guidance, published last June, following is a list of helpful tools for companies to use in establishing and implementing a plan as well as training employees in food defense.

•  The Food Safety Preventive Controls Alliance (FSPCA) offers food defense awareness training. This course is intended to assist companies in complying with the FDA’s Food Defense Rule training requirements.

•  The FDA initiative, “Employees FIRST” (Follow company food defense plan and procedures; Inspect your work area and surrounding areas; Recognize anything out of the ordinary; Secure all ingredients, supplies, and finished product, Tell management if you notice anything unusual or suspicious), focuses on increasing food defense awareness and provides resources and training tools for employees.

•  The Food Safety and Inspection Service (FSIS) Food Defense 101 tool includes five free, online courses your company can use to understand the Food Defense Rule. The courses will prepare your team for establishing a facility-specific plan.

•  To help companies build a personalized food defense plan, the FDA developed a free, user-friendly software program, the Food Defense Plan Builder that walks them through the evaluation of the accessible and vulnerable steps in their production or areas within their facility and develop focused mitigation strategies.

•  The Mitigation Strategies Database, developed by the USDA, aids the food industry by providing a range of diverse countermeasures companies could consider implementing in their facility. This database identifies possible prevention methods for material receiving, storage, and transportation as well as general recommendations for security.

•  The FDA, in collaboration with the Center for Disease Control and Prevention (CDC), the USDA’s FSIS and Animal and Plant Health Inspection Services (APHIS) developed the Food Related Emergency Exercise Bundle (FREE-B). The FREE-B provides eight different scenarios based on both intentional and unintentional food contamination events to assist companies in testing their defense plans and procedures.

To conclude, the importance of taking steps towards preventing intentional contamination of our food supply cannot be overstated. Building a strong food defense plan goes a long way. Contact Western Growers Science and Technology Staff if you have any questions or comments related to this important topic.

 

Green Jobs Still a Small Fraction of the California Economy

July 18th, 2018

The concept of green jobs has increasingly been used as a tool to justify a broad range of environmental policies in California. Take, for example, AB 32 and SB 32, which individually require significant reductions in greenhouse gas emissions. Proponents of these expansive environmental mandates rely on claims that these regulations will be “cost-free” as expenses will be balanced by the number of increased “green” jobs.

Unfortunately, California’s vibrant ‘Green Economy’ is not what it seems. According to a recently released report from the California Center for Jobs and the Economy, factors such as miscounting of temporary jobs, inconsistent definitions of “green jobs” and reclassification of existing jobs give a false narrative about green job growth. This false impression is providing state policymakers with an inaccurate estimate of true green job growth and the strength and viability of the Green Economy. It also raises concerns about the ability of the Green Economy to create the jobs necessary to sustain California’s future economy.

The “California Green Jobs: An Updated Review” report details how California now has more than 17 million nonfarm jobs. Of that, there are only 171,300 new direct green jobs, a mere 1 percent of total jobs. Many studies have reclassified existing jobs with a “green” designation. If these reclassified jobs are taken into account, the number of jobs jumps to 361,300, still only 2.2 percent of the state’s job market.

Below are some additional key findings of the report:

•  Reclassification of existing jobs and inconsistent definition of “green jobs” overstates reality of Green Economy. Various federal, state and non-profit organizations have attempted to quantify green jobs, but with no consistent definition or metrics. Some estimates include reclassification of existing jobs, which leads to overestimating net job gain as a result of new state policy.

•  Most “green job” definitions rely heavily on reclassification of existing jobs. Beyond a lack of consistency, most studies seeking to define the Green Economy have simply reclassified existing jobs with a “green” nexus, which has significantly inflated the number of green jobs.

•  Current “green jobs” are just 2 percent of total nonfarm jobs in California. The total number of new direct jobs that can be directly connected to current state policies represent only 1 percent of total jobs in 2016.

•  Moving away from certain clean energy programs will further reduce green job estimates. Most current green job calculations include natural gas and other “clean energy” jobs that are no longer included in the regulations promoting a renewable Green Economy.

•  The current Green Economy is over-reliant on temporary construction jobs and is unsustainable for future middle-class growth. Most prior attempts to quantify green jobs include large segments from temporary jobs that may last a matter of weeks or several months, especially lower-wage service and short-term construction jobs. While state policymakers continue their attempts to transform the California economy and launch a green industry, a transition that is dependent on these short-term and lower-wage jobs will have a significant long-term impact.

To read the full report, visit https://centerforjobs.org/ca/green-job-reports/2018.

“Recalling” the E.coli Outbreak; Shield Your Exposure

July 18th, 2018

Since the deadly E.coli outbreak connected to romaine lettuce was announced on April 10, 2018, there have been 197 people infected, 89 hospitalizations, and five deaths across 35 states. If those numbers don’t stop you in your tracks and make you think about what you’re doing to protect your business, then I don’t know what will.

As we look back on the way this outbreak has impacted the industry, you can see the devastating ripple effect that being unprepared for such events can have. Whether you are a family farm, major producer, retailer, restaurant owner, or consumer, this outbreak has left no aspect of the industry untouched.

When thinking about possible outbreaks that could occur in the future and protecting your business from product recalls, it may be hard to believe that a situation like the romaine event could happen to you. I’m sure many of you are thinking right now, “This will never happen to us.” But in this day and age, anything is possible. The important thing is not whether it is going to happen, but it is being prepared for the worst case scenario.

Now is the time that you should ask yourself some very important questions: Do you know the full costs of a product recall and what it could do to your business should you be impacted? Along the lines of protection, how do you round out your food safety team? How would you deal with a possible contamination event? How do you educate your employees? How do you recover? How long will it take?

What many people don’t realize is that when it comes to recall losses, there is a huge gap between the perceived expenses and reality. Many people believe the highest losses are incurred in the areas of logistics and retailer charges, but, in reality, the highest losses are usually in the loss or replacement of stock and in the interruption to your day to day business. Both of which could be lessened with a little more preparation.

The main areas of contamination exposure are liability of your product; loss of your product; income interruption, whether it be loss of income or extra fees; and various recall expenses. This also includes liability to directors and officers in that they can face civil and criminal liability.

However, there is a light at the end of the tunnel. This light is a well-rounded recall policy. The benefits of a recall policy include balance sheet protection, as well as profit and loss protection. This can help cover recall losses and expenses associated with brand damage control. Another benefit is brand and reputation consultation, where experts can help you manage the effect that the contamination event might have had on the public’s perception of your business. The benefit of recall coverage could even include first and third party protection for anyone else in the supply chain who may have been impacted.

Producing safe products and building confidence in your brand is a primary focus of your business and ours. Over 1,000 food and ag-related companies rely on Western Growers Insurance Services to help protect their businesses. Western Growers Shield™ is our latest product evolution, bringing together the whole of our experience and connections with industry partners to deliver a comprehensive product recall management solution.

Ultimately, we want to save you time and money, protect your brand, preserve your supply chain, and trigger the right insurance coverage for your business. The next recall situation our industry faces is not going to be nice and gentle. It is only going to get worse and with more devastating impacts on those who do not prepare now. I will leave you with one last question, how are you going to shield your business from potential contamination events?

If you would like to learn more about Western Growers Shield, feel free to call me at (602) 757-7869.

Influencer Marketing is Powerful Weapon for Brand Growth

July 18th, 2018

The spread of “fake news” has caused a significant rift between the public and media. Consumers used to look to their media allies for guidance and the truth, but this sweeping phenomenon has changed where trust is placed.

As consumers’ demand for authenticity increases, the rapid rise of social media has created a network of influencers that have the ear of the public. These influencers are everyday people who have established credibility by becoming expert in a certain topic and posting about it online. Through engaging content that inspires, they have built a large following and have the power to persuade others by virtue of their authenticity and reach. This can be the home cook who garners hundreds to thousands of views a day on their how-to videos; the mommy blogger who shares her journey of parenthood with her expansive readership; or the fitness guru who reveals tips to their extensive Instagram following on how to live a healthier lifestyle.

According to a recent Nielsen Survey, 90 percent of consumers noted that they trust recommendations from people they know, while 70 percent trusted customer opinions posted online. This means that people are tired of seeing traditional advertisements and are now gravitating toward like-minded people who present them with trustworthy information.

Tapping into the loyalty and trust that these influencers have established with their audiences can be a powerful weapon for brand growth. Additionally, their organic reach is something the agricultural industry can utilize to help bridge the gap between consumers and where their food comes from.

Some in our industry have already jumped on the influencer marketing trend and are changing the conversation about agriculture. For example, the California Strawberry Commission has hosted a #PickReal farm tour for the past several years to give food and lifestyle influencers a behind-the-scenes look at the care that goes into strawberry farming in California communities, as well as debunk strawberry and strawberry-farming myths.

Similarly, the Alliance for Food and Farming recently launched a “Facts, Not Fears” three-day tour where nutrition, diet and science bloggers visited farm fields and facilities to hear the truth about produce safety. Through presentations, tours and workshops, the bloggers learned that misinformation about pesticides can breed fear and confusion, and the best thing consumers can do to benefit their health is eat more fruits and vegetables. The result? The bloggers penned posts sharing how “produce shoppers’ guides are a disservice to consumers and confusing because they are not based upon sound science and are often in direct conflict.” They also dispelled myths noting that “many think that the term ‘organic’ means that produce has been grown without pesticides [but] this is not true.”

Just this June, Western Growers partnered with the California Farm Water Coalition to host a farm tour where four bloggers visited ag operations throughout Monterey County to learn what it takes to feed a nation. These lifestyle, mommy and food bloggers had the opportunity to hear about the labor challenges facing agriculture, learn about innovations being developed to help solve the industry’s most pressing issues, see how food gets from the field to the store and interact with the family farmers who grow the food they feed their children every day. Throughout the tour, each blogger posted on social media in real-time showing their audience exactly what they were seeing and experiencing. At the time of this writing, the social media posts had already garnered nearly 300,000 impressions.

Though blogger tours are effective, the creativity with influencer marketing goes well beyond a field visit. Take, for example, Taylor Farms, which reaches out to food bloggers for “blog takeovers.” These notable foodies creates recipes using Taylor Farms’ products and post videos, photos and stories about their creations on their own channels. They then take over Taylor Farms’ blog and social media accounts to post similar content, resulting in more exposure for both the influencer and Taylor Farms.

Influencer marketing is a trend that is likely to ramp up in the coming years, and this is our opportunity to build a bigger community of ag advocates and ambassadors. Through authentic storytelling, these influencers can share the truth about ag and help deliver our key messages. For this reason, we encourage you to start incorporating influencer marketing into your business strategy.

IN MEMORIAM: Ernest J. (Ernie) Bontadelli 1925-2018

July 18th, 2018

Ernie Bontadelli passed away peacefully at his home Friday, June 22, 2018, at the age of 92. He and his brother Charles were pioneers in the Brussels sprout industry on California’s central coast.

Ernest Bontadelli was born in La Selva Beach, CA, on September 30, 1925. He continued to reside in that Santa Cruz County community for his entire life. He attended San Jose State University where he met and married his life-long spouse, Beverley, who preceded him in death in 2016. Upon graduation, he joined his brother who had been farming with their father, Earnest, in the Watsonville area. They formed Bontadelli Brothers and farmed many of the usual commodities grown in the area, from sugar beets to strawberries to cole crops, but eventually specialized in the production of Brussels sprouts in the 1970s.

In the early 1980s they partnered with Pfyffer Brothers and created Pfyffer Associates, a packing and shipping operation in Santa Cruz, which handled several area growers product in addition to their own. Mr. Bontadelli learned the ins and outs and excelled at growing artichokes in the Davenport area, north of Santa Cruz, for more than 20 years. But his primary focus was always the production and promotion of Brussels sprouts. The company was instrumental in the development of mechanized harvesting, building one of the first self-propelled harvesters in the industry.

Mr. Bontadelli was greatly involved in promoting agriculture through his various affiliations with industry groups, and was honored as the 1984 Farmer of the Year by the Santa Cruz County Farm Bureau. The Bontadelli Brothers joined Western Growers in the 1950s and the firm has remained an active member ever since, marking almost 70 years with the organization. Today, the membership is held under Bontadelli Inc. The brothers and their companies were also very active members of the Grower-Shipper Association of Central California.

His son, Steve, rejoined the family business in the mid-1980s, and together, the son with his father and uncle, continued to farm and develop the packing and shipping operation where Mr. Bontadelli’s influence was greatly felt throughout his life. They still farm under Bontadelli Inc. and pack and ship under the Pfyffer Associates banner, with Brussels sprouts still being their number one item.

Steve said his father loved farming, which extended to his passion for gardening and cultivating flowers at his home. “It was not unusual to find him out on a tractor, out weeding with his ever present shovel, trapping gophers and any of the other jobs that needed to be done,” he said. “He was well-respected by his work force, many of whom spent their entire work lives on the farm, with some of their children still working here.”

Steve said his father, who continued to be materially involved in the company up until his death, was amazed with the popularity that Brussels sprouts achieved. “He asked me every day what the market was,” Steve said. “And could hardly believe that it could climb to $60.”

There will be a private family service. A celebration of life is being planned for later this summer for those who wish to honor him. In lieu of flowers, donations may be made to the Ernest and Beverley Bontadelli Memorial fund through the organization Agri-Culture in Watsonville, CA.

 

Steve Patricio Honored for His Significant Contributions to Agriculture

July 12th, 2018

Western Growers will award Patricio the prestigious 2018 Award of Honor on October 30

IRVINE, Calif. (July 12, 2018) – Western Growers will honor Stephen (Steve) Patricio, whose visionary leadership has advanced the agricultural industry by leaps and bounds, with the 2018 Award of Honor. 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.

“Steve has been a tireless advocate for agriculture, and his ability to turn some of the most tumultuous challenges that our industry has faced over the past few decades into opportunities is unmatched,” said Tom Nassif, president and CEO of Western Growers. “He has already left a tremendous legacy as someone who shoulders the responsibility of igniting change that advances the industry as a whole.”

Patricio is being recognized for his immeasurable leadership and contribution to the agricultural industry, making significant advancements in food safety and the protection of public health. Steve led the creation of the first-ever mandatory food safety compliance program for the California cantaloupe industry, as well as helped raise millions of dollars to fund research geared toward preventing foodborne illness. He also played an integral role in the establishment of the California and Arizona Leafy Greens Marketing Agreements, which today have become the model for produce safety and accountability.

“When you look at the success of California agriculture, Steve is a true representative of why the ag community is as successful as it is today,” said Bonnie Fernandez-Fenaroli, executive director of the Center for Produce Safety. “He truly embodies passion and proactivity, and his commitment to food safety to benefit both the consumer and industry is unlike any other.”

Patricio’s tenacity does not just stop at food safety. Patricio has spent countless hours throughout his 45-year tenure in the industry advocating for a sustainable supply of water for farmers to grow the food that feeds the state, nation and world. He has taken every opportunity, as he did when he was asked to join former California Governor Arnold Schwarzenegger at the San Luis Reservoir, to call attention to the need for more surface water storage and stress the need for a comprehensive water solution. Furthermore, Patricio launched the industry’s first orientation program for agribusinesses that focused exclusively on water rights.

“Steve has one of the brightest minds and quickest wit in the industry,” said Bob Gray, past chairman of Western Growers and former president/CEO of California Ag Leadership Foundation. “He is a contributor of substance, and the expertise and competence he has brought regarding food safety and water has made major impacts for the industry.”

A Los Banos-native, Patricio is deeply involved in the community and industry. He has served as chairman for Western Growers, Center for Produce Safety, California Cantaloupe Advisory Board and Monrovia Nursery Company. He has also held leadership positions at Western Growers Assurance Trust, Monsanto Vegetable Seeds Advisory Council and the Produce Marketing Association.

“I was speechless when I found out I was selected for this award,” said Patricio. “I never thought that, in the end of it all, I would be a farmer or involved in this honorable and wonderful world that I am so engaged in today. I often tell youth that your career chooses you, and because I followed the path life decided to take me on, I am proud to say that I am a farmer. I couldn’t imagine being in any other industry.”

Patricio’s accomplishments and passion for shaping the ag industry will be recognized at the Award of Honor Dinner Gala at the Western Growers Annual Meeting on October 30, 2018, in Palm Desert, California.  There, Patricio will be honored by his peers, friends and family. To attend the ceremony, visit http://www.wgannualmeeting.com/.

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

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WG Offers Sexual Harassment Training Next Month in Salinas

July 17th, 2018

Sexual harassment training is an important topic to cover in the workplace. Western Growers will be offering workplace training next month in Salinas to help leadership teams understand the issues surrounding appropriate communication and proper team dynamics.

As business leaders, we all share the responsibility for ensuring a safe environment for every employee. Failing to properly handle rumors and complaints of inappropriate behavior not only threatens your company’s culture, but can also permanently damage its reputation.

According to an article published by the Society for Human Resource Management, “failing to prevent an issue — or worse, ignoring an existing problem — can have monumental negative consequences, all of which have significant financial ramifications. If the victim complains to the U.S. Equal Employment Opportunity Commission (EEOC), the company will be the subject of an investigation, and, if meritorious, a lawsuit by the EEOC on behalf of the victim. In 2016, the EEOC received approximately 27,000 charges of sexual harassment.”

Creating a safe workplace culture begins with education. Western Growers University training will cover management’s responsibility for preventing, addressing and responding to incidences of sexual harassment.

TRAINING DETAILS

DATE: Thursday, August 16, 2018

LOCATION: Monterey County Agriculture Center (1432 Abbott Street, Salinas, CA 93901)

COST:

  • WG Member: $60
  • Non-WG Member: $75

TIME:

For more information or for questions regarding the training, please contact Adriana Robles at (949) 885-2297. 

What Constitutes Acceptance of Produce by a Buyer Under Contract Terms

July 18th, 2018
  • The receiver offloads the commodity and releases the trucker is deemed to have accepted the load.
  • The receiver diverts the load (while in-transit) to a destination other than that disclosed and negotiated for in the contract is deemed to have accepted the load
  • Multiple customers (drops): A receiver has multiple customers (drops), the first produce item(s) is tendered for delivery under the contract, which are accepted at the first location (drop), the acceptance functions as acceptance of the entire load under the contract terms between the   shipper and buyer commonly referred to as commercial contract sale. The entire load has been accepted and the buyer waives his/her right to a rejection.  Any subsequent rejection of a portion of the load by any of the receiver’s subsequent customers would not be allowable between you, as the shipper, and your buyer who you contracted with.

Consequences of the buyers Acceptance of the produce:

  • The buyer must pay the contracted price for the accepted goods less any provable damages, if any
  • The buyer loses its right to reject after unloading and acceptance
  • Time sensitive that the buyer must immediately call for inspection to establish a breach of contract, or be barred from any remedy
  • The burden always resides with the receiver to establish a breach of contract

Keep in mind that just because the buyer has accepted the goods and lost its right of rejection, it does not mean that the buyer has lost the right to recover from the shipper any loss suffered due to the shipper’s failure to ship the agreed upon produce, which if handled under normal transit, must meet good delivery.

When the produce has been accepted, they buyer must, within a reasonable time, establish a breach and notify the seller of the breach or be barred from any remedy.  Although “reasonable time” is not defined under the PACA, as a general rule, it is same day as arrival. Delayed notice such as three days after arrival is not considered timely notice and would be considered too remote to provide evidence of what the load of produce looked like at actual time of arrival.

Please consider contacting the Trade Practices Department with any real time dispute issues, or need for guidance with any sales contract.  Email Ken Gilliland at [email protected] or Matt McInerney at [email protected]

July/August Edition of WG&S Magazine Now Online

July 24th, 2018

The July/August issue of Western Grower & Shipper is now available online.

In this issue:

Almost everyone who knows him mentions his dedication to the ag community—especially when it comes to water rights and food safety. One thing that might surprise people, given his influential leadership in the industry, is that Patricio’s roots are not ag-based.

When Cyrille Habis and Prasad Nair embarked on their journey into agricultural technology, they did not envision that their end product would be a revolutionary data imagery package that could forecast yields weeks to months in advance.

The new rules governing the use of electronic logging devices (ELD) and hours of service in the world of produce trucking have eliminated many of the issues concerning the mandated use of ELD and basically given truckers back the time the use of an ELD would have taken from them.

If you have any questions about Western Grower & Shipper magazine, please contact Stephanie Metzinger at (949) 885-2256.

State Water Board Sticks to Failed Fish Justification for Water Grab

July 9th, 2018

Last Friday, California water officials released a final proposal of amendments for the Lower San Joaquin River and Southern Delta flow objectives, as well as a draft Final Substitute Environmental Document. This plan, called Phase 1, can be found here.

Phase 2, which will soon follow, will update flow requirements for the Sacramento River, its tributaries and the Delta and its tributaries—including the Calaveras, Cosumnes and Mokelumne Rivers—Delta outflow objectives, Delta interior flow objectives and cold-water habitat.

The State Water Resources Control Board staff report says the “analysis shows that 40 percent of unimpaired flow, within a range of 30-50 percent unimpaired flow will ‘reasonably protect fish and wildlife while moderating impacts to water supply for human uses.’” Although the framework document allows for adaptive management, it must occur between the ranges of 30-50 percent unimpaired flows which could result in an average of 288,000 acre feet less for the “cities of San Francisco, Modesto and Merced and hundreds of farms in the San Joaquin Valley.” The State Water Board says that a major goal of the plan is to restore depleted salmon migrations.

Western Growers is adamantly opposed to this regulatory assault on the state’s water rights system.

In response to this plan, Assemblymember Adam Gray (D-Merced) released a statement condemning the State Water Board for ignoring a decade’s worth of science and public opinion by adopting radical new requirements to seize critically needed San Joaquin Valley water supplies.

“The State Water Resources Control Board’s decision today is the first shot fired in the next chapter of California’s water wars,” said Gray in his statement. “This is what theft looks like. A small group of special interests have spent years plotting one of the largest water takes in our state’s history. They attempted and failed to change the law and win in court, so instead they have infiltrated government itself. They positioned their allies to influence the process from within and spent hundreds of millions of dollars of taxpayer money to prop up their house of cards. Despite entire agencies at their disposal and seemingly unlimited funds, no amount of trickery can obscure the truth – their fish first philosophy will decimate our region, poison our drinking water, and provide no environmental benefit what-so-ever.”

WG encourages its members to communicate directly to the State Water Board. The final public comment period is now open until July 27th with final adoption scheduled for August 21st. You can submit comments via email to Jeanine Townsend, Clerk to the Board, at [email protected].