Western Growers’ Statement on Agricultural Worker Program Act of 2019

January 17th, 2019

IRVINE, Calif., (January 17, 2019) — California Senator Dianne Feinstein and Representative Zoe Lofgren introduced a bill today that would provide a path to citizenship for certain farmworkers. In response, Western Growers’ President and CEO Tom Nassif issued the following statement:

“We recognize and applaud the efforts of Senator Feinstein and Representative Lofgren, as well as many other members of the House and Senate, to address the acute labor shortage that plagues production agriculture.

“Farm labor is incredibly challenging work that most native-born Americans are not interested in pursuing so we have long relied upon a skilled workforce who are new migrants to our country as well as guest workers.

“Solving the immigration crisis is a priority and necessity for the agricultural industry, and we need legislation that will create a new guest worker visa program and provide a workable path to legalization for our existing workforce and their families. As such, we welcome efforts by members of Congress to highlight the needs of agriculture.”

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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What Will Newsom Mean for California Agriculture?

January 7th, 2019

On November 6, Gavin Newsom rode into the California Governor’s Mansion on a blue wave (which some are dubbing a “blue-nami”) that all but wiped out Republican relevance in the state for the foreseeable future. At 61.8% of the vote—which included a victory in Orange County, which went for a Democratic governor for the first time in 40 years—Newsom tallied the largest gubernatorial point spread since 1950. California’s delegation to the U.S. House of Representatives now stands at 46 Democrats to 7 Republicans, with the Democrats flipping an incredible seven seats (again, Orange County will not have a single Republican House representative for the first time since 1940). To top it all off, Democrats, who in recent years briefly held a bare two-thirds supermajority in Sacramento, have now captured three-fourths “mega-majorities” in both chambers of the Legislature, which will allow them to pass tax increases, place constitutional amendments directly on the ballot and override the governor’s vetoes.

So, where does this leave a largely conservative industry like agriculture? What can Western Growers members expect out of a Newsom governorship?

What I’m about to suggest may come as a shock to some, but should not be considered provocative. In fact, it could more appropriately be viewed as pragmatic: Let’s give Governor Gavin Newsom the benefit of the doubt.

I’ll give everyone a moment to settle back into their chairs.

Now, let’s set aside any personal views toward Gavin Newsom (and, perhaps, the Democratic Party) and try to have a levelheaded conversation. As an industry, we must acknowledge the political landscape in California and play the hand we have been dealt. Certainly, we will not roll over and allow hostile forces to dictate our destiny, and we will address injustices toward our industry whenever and however they occur. But we must also recognize the need to work within the system, to engage in productive dialogue with reasonable actors on both sides of the aisle.

I, for one, believe Gavin Newsom could be that rational player—at least, at a minimum, on several key issues that impact California agriculture. Newsom is an entrepreneur, so he understands the profit-robbing consequences of burdensome government regulation and bureaucratic red tape. Furthermore, Newsom’s “real” job depends on agriculture, as he founded the PlumpJack wine store and related management group that operates nearly two dozen businesses, many in the winery and restaurant space. So, it would seem, agriculture and agricultural businesses should be natural allies of the new governor.

Indeed, Newsom appears to recognize the foundational importance of the agriculture industry. During his keynote address at the 2016 Forbes AgTech Summit, Newsom classified agriculture as one of the three most iconic industries in California, along with Hollywood and technology. He went on to admit that, “We have regulatory challenges in this state,” and conceded that the government cannot prescribe a “pill for every problem.” Instead, Newsom suggested that the role of government should be to create an environment where the private sector is fundamentally engaged in solving the big problems of the day, and pointed to the collaboration between agriculture and Silicon Valley to address issues like water scarcity and labor shortages.

Newsom concluded his speech by saying, “We are grateful for the work California farmers are doing… I think we have an incredible opportunity here in California, not just to survive in the agricultural industry but to truly thrive in a growing, competitive environment.”

If we take him at his word, then we have a duty to cultivate the seeds of respect and appreciation Newson has expressed for our industry. They may very well take root and blossom into a field of renewed prosperity for California agriculture.

Extended metaphor aside, our recent experiences with California state politics compel me to offer this disclaimer: Be prepared to be disappointed. But, he has given every indication that he cares about agriculture. Therefore, as collective stewards of the industry, we have an obligation to engage the new governor from a position of guarded optimism. In this spirit, we must put forward a good faith effort and work to establish a genuinely positive relationship with the new administration. Perhaps we will be able to find some common ground, after all.

2019 Chairman of the Board: Ratto Bros. Thrives with Unique Niche

January 7th, 2019

Modesto, CA-based Ratto Bros. Inc. is very representative of the agricultural industry at large. It has a long family history in agriculture and deep roots so commonplace in the fresh produce industry. But it also has developed its own unique niche that has set it apart from the norm and allowed it to thrive as a medium-sized California grower-shipper.

Leading that firm and also helming Western Growers as the 2019 chairman of the board is Ron Ratto, the third generation of his family to run the business, and fifth generation of the family to farm in California.

“My grandfather started selling vegetables when he was 16 years old in 1905 on Bay Farm Island,” said Ratto, who relayed that Antone L. Ratto would deliver vegetables to his customers via a horse-drawn cart.

Bay Farm Island was once an island in the San Francisco Bay dotted with farms. A landfill project connected it to Oakland and made it a peninsula. It now sits adjacent to the Oakland International Airport and is home to a 36-hole golf course, office and retail complexes, and several housing developments.

But the general area was the farming home of the Ratto family for the length of the 20th Century. In fact, it was still farming on land adjacent to the airport until 2005. That was the same year Ratto Bros. completed its state of the art packing and cooling facility in Modesto and switched the company headquarters to that location.

Antone L. Ratto actually first farmed in the Modesto area for a short time in the 1930s but Oakland was the sole focus of its operations until the 1960s. The original farm, as well as another near the airport, provided for his family of 10 children through the two World Wars and the Great Depression. In 1948 and not yet 60 years old, Antone had a heart attack and needed help with the business. His five sons started to come back to the farm and no doubt their involvement helped him live to the age of 98.

It was in the 1950s that those five sons formed the Ratto Bros. operation that exists today. Knowing that urbanized Oakland wouldn’t always be friendly to the farming community, the company bought 160 acres in Modesto in the early ‘60s and began the long transition to becoming a San Joaquin Valley organization. Over the years, the company has expanded and now has grown to more than 1,000 acres, all in the close proximity to three rivers—the Stanislaus, San Joaquin and Tuolumne. The micro-climate caused by the confluence of these three rivers allows Ratto Bros. to be a year-round grower and shipper of vegetables. The company grows dozens of vegetable items concentrating on greens and other specialty vegetables. “We grow 30-35 different leafy greens,” Ron said. “We are seasonal, but we have some crops growing all year long.”

The five members of the second generation that owned and ran the company for many years has evolved into four members of the third generation who are now part of ownership and form the management team. Ron is the president with his three cousins—Ray, David and Frank—handling production, sales and marketing. Ron said one of the family’s keys to success is that each partner takes responsibility for their own area of expertise. While discussions ensue for major decisions, there is a certain amount of autonomy within each department. “And everyone does a great job in their area. We produce great quality crops in the field and our sales and marketing departments do an excellent job.”

He added that the company has a diverse customer list, selling directly to many foodservice and retail clients. He opined that fulfilling your commitments is another major key to the firm’s success.

Ron’s path to the family operation was a straight line. After graduating from University of California at Berkeley with an agricultural degree in the 1970s, the second generation gave him the opportunity to join the family business, and he did so, making a career of it. He acknowledges that it is time for the four current shareholders to develop the next generation to take over the family business. “Retirement is lurking,” he quipped, adding that two members of the fourth generation do work for the company currently.

Ron is bullish about the future for that next generation though he also acknowledges that there are major hurdles to jump. “There are plenty of challenges to deal with, including labor, water and regulations. We deal with those challenges as we can, planning ahead the best we can.”

He said other grower-shippers have found success in diversifying by moving to other areas, states and countries to source produce but Ratto Bros. continues to manage with all its production in one district. It is this uniqueness that gives the company an edge. Virtually every other California vegetable operation is located in the coastal regions with the staple crops being their calling card. Other San Joaquin Valley farms tend to specialize in vines, nuts and tree fruit. Ron calls Ratto Bros. “a medium to small company” noting that its size “is viable for us” but admits to being an outlier as other vegetables grower-shippers are much larger, more geographically diverse and located elsewhere. No product dominates sales for Ratto Bros. but in aggregate, the sales add up. “There is only so much turnip greens a customer is going to buy,” he quipped.

It might have been being a small guy in a big pond that pushed Ron into being an active member in the agricultural community. Ratto Bros. joined Western Growers Association about 20 years ago and Ron was one of the early board members of the Leafy Greens Marketing Agreement. He noted that it was his participation on the LGMA board that acquainted him with growers from other districts and got him more involved in industry issues. When the WG board seat for the Central San Joaquin Valley opened up about a decade ago, he ran for it and won.

He’s not sure he would call himself an “activist farmer” but Ratto said he is willing to get out and talk to people about the issues and explain agriculture’s viewpoint. He said that is important as there are host of issues, including food safety and labor concerns, in which agriculture needs to have a voice.

He is confident that both the staff and board leadership of Western Growers is moving in the right direction and he sees his position as chairman as continuing the good work that is already being done. He said the organization is an industry leader and has a history of innovative thinking. He pointed to the development of the Western Growers Center for Innovation & Technology as a testament to that. “It is still in its infancy, but there are some really exciting and useful developments coming out of that program.”

But in his year as WG Chairman of the Board, change is going to be a prevalent theme. The association’s top two staff leaders—President Tom Nassif and Senior Executive Vice President Matt McInerney—have announced their retirement dates. Nassif will retire at the end of 2019 while McInerney is leaving in late March. Ratto said finding a new CEO will undoubtedly be an important task that the board undertakes. In late November, he said the details of the search were still under discussion but a plan would be forthcoming. “I will tell you that I have not been involved in a search of this magnitude before but I know many members of the board have. I will be relying on their expertise as we move forward and think this through. Finding a new president is going to be a very important task.”

Personally, Ratto still lives in the general area in which he grew up. He lives in the East Bay, not too far from Oakland, and about an hour’s drive from the Modesto office…when traffic cooperates. He has been married to his wife, Catharine, for 38 years, and has known her for quite a bit longer as they were family friends growing up. The couple has three sons in their 30s—Anthony, Andrew and Robert—and their first grandchild on the way. Anthony works for Ratto Bros. mentoring under Ray Ratto on the production end of the company. Andrew is also in the business, working in sales with a Salinas area shipper.

Gary Pasquinelli: Steps Down after 45 Years of Service

January 7th, 2019

After 45 years on the Western Growers Board of Directors, Gary Pasquinelli stepped down in November having served the longest tenure in the 90-plus year history of the association.

“Our longest serving board member is not only one of the most active producers in the industry, he puts his time, talent and treasure into everything he does,” said Tom Nassif, president and CEO of Western Growers and a friend Gary for the vast majority of both their working lives. “He has been an invaluable resource for me whenever I need advice on issues affecting our members. His breadth of knowledge in the agricultural field is matched by his political acumen and personal involvement. He will always make the difficult call to any legislator. His love of the Lord and family adds a dimension to his persona that reflects in how he treats friends and neighbor alike. He is a dear friend and will be missed by us all.”

Pasquinelli told Western Grower & Shipper that he is also stepping back a bit in other aspects of his life. He has been a deacon in the Catholic Church for the past 27 years with official duties in his local Yuma church. He is also relinquishing those official duties. With regard to his company—Pasquinelli Produce Company, he is also beginning the transition process to new leadership, which he expects to occur on “the near horizon…over the next three years.” Son-in-law Alex Muller, who has focused on food safety issues at the company, is moving into a more senior administrative position to assume some of Gary’s duties as time moves on. Muller was also elected by his Yuma area peers to succeed Pasquinelli on the WG Board of Directors.

Pasquinelli attended boarding school in San Jose at Bellermine College Prep. Upon graduating in 1961, he was accepted into several different universities, but the letter from Notre Dame was the one that caught his eye. “When I got that letter, it was like a slam dunk,” he once told Western Grower & Shipper. It made sense. For a youth who attended Catholic grade school and high school with the Jesuits and who served as an altar boy, Notre Dame was the end-all of universities.

In 1965, after graduating cum laude from Notre Dame, Pasquinelli headed west to attend law school at UC Berkeley. But soon he decided that he wanted to follow in his father’s footsteps and join the fresh produce industry. In 1967, he joined Pete Pasquinelli in the family business. His first assignment was in the cabbage patch where he was responsible for its harvest. Compared to the rest of the 4000-acre farming operation, it was a small slice of the pie, just 40 acres…but it was all his. Having successfully managed the cabbage harvest, the following year he was assigned to manage the produce field trucks. For two years, he oversaw the trucks that hauled the lettuce from the fields back to the cooling plants and then was promoted to the position of overseeing the entire harvest.

The next 18 years were formative for the young Pasquinelli and provided a platform for constructing the man he is today. During those years he got to know every worker in the operation, all 230 of them. He knew their names, their families and their interests. And he got to where he could speak Spanish fluently. As he described it, “I lived with them out in the field and was with them morning to night. I really respected those people. I got an appreciation for what tough work that was.”

Between 1975 and 1983, Pasquinelli estimates he ran about 65 percent of the company and his dad ran 35 percent. When his dad passed away in 1984, Gary took over the entire operation.

But farming wasn’t the only calling in Pasquinelli’s life. As mentioned above, he was ordained a deacon in the Diocese of Tucson in 1991 after several years of taking the required training. Besides tending to his own family matters, Deacon Pasquinelli has provided many services for his church, including preaching at Mass, running the infant baptism program, performing baptism interviews, teaching classes and delivering communion to nursing homes on occasion.

Pasquinelli and his wife, Barbara, have four daughters. Their daughter, Kirsten, passed away from Adrenocortical Carcinoma and a foundation was established to cure this disease thereby supporting her legacy. He also called his sister and silent business partner, Adrienne McLaughlin, a great help over the years in all aspects of his life.

Though Pasquinelli Produce was a member of Western Growers for many years under the tutelage of his father, it wasn’t until the late 1960s, when the labor battles came to Yuma, that the company got more involved with the association. Gary began working with WG lawyers and President Daryl Arnold to defeat the unionization efforts. As the ‘70s dawned, the fight intensified. “We ended up beating the union and were able to harvest our entire 2,000 acre cantaloupe crop under strike conditions. I remember Daryl Arnold saying of me that I am the kind of ‘young leadership’ that the board needed. I was about 28 at the time.”

A couple of years later, longtime WGA Yuma director Sid Woods retired. “With his blessing, I ran for the position and have been a director ever since. My blood is in the bricks,” he said of WGA, recalling many services and activities that he was intimately involved in over the past five decades. He spoke of the advent of harvest-time strike insurance and noted that he was the person who came up with the name Quail Street Casualty for the association’s off-shore insurance entity. The name came from the street that housed the association headquarters in the 1970s.

Pasquinelli recalls that he was asked to serve as chairman in the early 1990s but his deacon duties took precedent and he declined the honor. In 2000, he did serve as chairman under President Dave Moore. “I was very close to Dave and delivered the eulogy at his funeral.” The following year he chaired the search committee that brought Tom Nassif to the president’s position. Pasquinelli remembers meeting Nassif during the tumultuous labor battles when the future WG CEO was a young labor attorney.

As chairman, and throughout the years, Pasquinelli said he has been guided by the notion of being a “servant leader…leading by example. I got so much more out of it than I ever gave,” he said, greatly undervaluing his service.

He believes deeply in the work of Western Growers and the concepts of “circling the wagons” and “strength in numbers.” And he also knows it was time to step down. There is a fire in the belly that informs this work and Pasquinelli said that while the flame is still there, it’s not burning quite as bright.

McInerney Set to Retire after 43 Years with Western Growers

January 7th, 2019

After 43 years with Western Growers—the last 25 as the number two person—Western Growers Senior Executive Vice President Matt McInerney is retiring in March of 2019, after the association’s first board meeting of the year.

McInerney grew up in Southern California’s San Gabriel Valley, the youngest of five kids. His mother was a registered nurse and his father worked as a sales manager in the Keds shoe division of U.S. Rubber, and were very much believers in higher education. McInerney followed the lead of one older brother and went to the University of Southern California. He majored in Business Administration with an emphasis in marketing, but upon graduation didn’t have a clear idea of what career path he would take. “I graduated in 1975, which coincided with a dip in the economy,” he said. “I sent out a multitude of applications but I was finding it difficult to find full time employment.”

A family friend with Belridge Farms in Bakersfield, CA, paved the way for an interview with WGA President Daryl Arnold, who was also an alumnus of USC and had a great affinity for the school. There was a position open at the association for a field representative. “Mr. Arnold encouraged me to give it a try for a few months at a salary of $900 per month,” Matt recalls.

He spent the next two years on the road visiting members and pushing association products, such as the WGA Claims Service. “In those days, lots of freight moved in refrigerated rail cars through the Southern Pacific,” he said, noting that the department was busy helping shippers with claims. McInerney attempted to “sell” the service to members during his visits. “I spent two full weeks of every month on the road and half of the days the other two weeks. My territory was all of California and Arizona,” he said.

He learned the produce business from the ground up from the top minds in the industry…and loved it. “I called on some incredible people. They welcomed me into their businesses and answered any questions I had with patience.”

He recalls meeting industry veteran Paul Fleming of Admiral Packing many years ago wearing a coat and tie on a hot desert day. “It was mid-June and I was in the Imperial Valley during the cantaloupe season… and it was very hot. I was wearing a sports coat and tie. Paul said to me ‘You must be new. Farmers don’t wear ties.’”

He also recalls meeting Bill Ramsey of Mann Packing Company who gave the young WG employee a sense of the high regard in which farmers held their workers. “That has stuck with me all these years.”

In 1977, McInerney had an opportunity to move to the claims department, an area he worked in or oversaw for the entirety of his career from that point forward. He became fully immersed in the nuances of the Perishable Agricultural Commodities Act. In fact, he became one of the industry’s foremost experts on the subject, often participating in panel discussions from coast to coast, as well as conducting regular seminars for WG members and their sales teams.

Discussing the highlights of his career, it is work with the PACA that he lists first, recalling the extremely important passage of the PACA Trust amendment in 1984. He remembers the charge was led by John Norton, a politically active Arizona grower-shippers and cattleman, who was also a former WG chairman of the board. Patterned after a similar amendment in the livestock business, Norton advocated for the trust provision, which put produce suppliers in a priority position in the event of a bankruptcy by a firm on the buy side of the equation. Over the past 30 years, that provisions has helped the produce industry recoup hundreds of millions of dollars.

Another highlight he recalls was the establishment of the Dispute Resolution Corporation, the tri-national (Canada, Mexico and the U.S.) dispute resolution system that gave shippers from all three countries a road map and guidance on how to handle disputes no matter where they shipped their product. McInerney served as chairman of the DRC from its inception in 2000 through 2017.

In 2007, Western Growers, in conjunction with C.H. Robinson, established the Western Growers Transportation Program. McInerney worked closely with CHR over the past decade fine tuning the program and helping to pitch it to members, as well as helping to expand it to other associations around the country.

Still another highlight for McInerney was the six years he served as chairman of the Alliance for Food and Farming—another collaborative industry effort designed to solve an industry problem.

During his career. McInerney served Western Growers in a variety of positions. Over the years he oversaw almost all WG activities at one time or another. He served a stint in Washington D.C. in between lobbyist hires and also was named interim president for a period of time as the association traversed the very difficult period between the untimely death of president Dave Moore in 2001 and the hiring of current president Tom Nassif in 2002.

After being named president and CEO, Nassif remembers fondly meeting McInerney for the first time. “He pledged to me that he would support everything I wanted to do and do it as best he could, and he has.”

Nassif continued: “He is one of the most respected ag leaders in the country. He is admired for his unmatched knowledge of the fresh produce industry and his willingness to tackle any issue that benefits the industry and our members. He avoids being in the spotlight and taking credit for the many invaluable successes he has spearheaded. We will find others to do his work but no one will replace him. It will be a great loss for us all.”

McInerney is equally effusive about Nassif’s impact on the association. “For the past 17 years I have been very lucky to work for Tom Nassif who has been a great leader and has brought a great entrepreneurial spirit to the organization. Over those years we have seen phenomenal growth in the services and products we offer to our members. We are a solution-driven association.”

In fact, McInerney said that has been the approach at Western Growers since he joined the organization 43 years ago from both the staff and the volunteer leaders. He said he has served with many generations of the same families as the organization leaders are often second, third and fourth generation family members of the growers who founded the organization and have taken it on its 90-year journey. “There are just too many to name,” Matt said. “I can’t recall one board member that I wouldn’t want to go out and get a beer with.”

As he retires, McInerney is extremely confident that the association is in great hands. “I am very optimistic about the future of this organization as we have a number of young professionals who have come aboard in the last 10-15 years and are taking key position. These people are passionate about what they do and love the industry. They are the right people for these positions.”

He noted that Bryan Nickerson, who has an industry background, has become the manager of the trade practices division. “He will answer to Jason Resnick, vice president and general counsel, who has a keen legal mind and will be very helpful to Bryan.”

McInerney took the opportunity to bid farewell to Ken Gilliland, another long term WG employee, who retired at the end of the year and worked with Matt for the majority of the past four decades. “Ken was a great help and those international trade issues that he and I were involved in have been shifted to our Washington D.C. office where

“Growth” A Resonating Theme throughout WG Annual Meeting

January 7th, 2019

This past October, California’s Coachella Valley hummed with energy from the 500 leading agricultural professionals who flooded the ballrooms of the JW Marriott Desert Springs Resort & Spa for Western Growers’ (WG) Annual Meeting.

The 93rd Annual Meeting offered a host of workshops and events that embodied the theme of “growth.” Guests had the opportunity to participate in educational sessions that focused on expanding their knowledge in the hottest science and technology trends, as well as listen to world-renowned speakers who provided tools to influence behavior. Attendees also enjoyed a flurry of networking activities that provided an opportunity to reflect on 2018 and ignite conversation on how to grow the industry in 2019.

 

RATTO TAKES HELM AS 2019 CHAIRMAN

The Annual Meeting was filled with celebration, thanking outgoing chairman Craig Reade, of Bonipak Produce, for his service and welcoming Ron Ratto, of Ratto Bros., Inc., as the 2019 Chairman of the Board. During Reade’s moving farewell address, words of inspiration filled the room as he spoke about the next generation of leaders who will disrupt current norms and spark an evolution in agriculture.

“The increasing regulations on agriculture are an increasing burden,” said Reade during his speech. “Technology allows us to overcome these regulations. Millennials understand how to adapt to use technology and the innate innovativeness of millennials will allow agriculture to thrive.”

This theme of growing young talent was also reflected when the new roster of board members was announced on day two of the Annual Meeting. The Board of Directors welcomed four former Future Volunteer Leaders to the team: Neill Callis, Turlock Fruit Company, Brandon Grimm, Grimmway Farms, Alex Muller, Pasquinelli Produce Company, and Kelly Strickland, Five Crowns Marketing, Inc. They join Steve Martori, Martori Farms, and now represent five current board members who have graduated from WG’s Future Volunteer Leaders program, a two-year cohort designed to cultivate the next generation of leaders within WG member companies.

Next year, the board will convene under the leadership of Ratto, who was elected to serve as chairman for a one-year term.

“Ron has made significant contributions in his current role as a board member and senior vice chairman, advancing both the innovation and advocacy side of agriculture,” said WG President and CEO Tom Nassif. “I look forward to working with him as our new chairman, along with the rest of the board, to facilitate the ongoing growth of Western Growers in support of our members and the fresh produce industry as a whole.”

 

PATRICIO HONORED FOR SIGNIFICANT CONTRIBUTION TO AG

Steve Patricio, Westside Produce, who has helped move the needle on critical issues facing ag such as water scarcity and food safety, was designated as the 2018 Award of Honor. In addition to the Award of Honor, Patricio was also presented a resolution from the California Legislature—a Joint Members Resolution from Representatives Anthony Cannella, Heath Flora and Adam Gray.

Preceded by introductory remarks from Nassif, Patricio delivered an inspirational speech that resonated with each and every guest.

“Growing up, our parents instilled an important principle in us that I have tried to impress on my children,” said Patricio. “That simple principle was hanging around with the good kids. By being around the better kids, it would make you better. By being around the best kids, it could make you work harder and achieve more. Western Growers are the better kids. They are the best kids, and hanging around these kids have made me better.”

 

STARTUP WINS $250K TO DEPLOY LABOR-SAVING TECH IN THE FIELD

Augean Robotics, an early-stage robotics company that has built an autonomous vision-based robotic platform, walked away from the WG AgSharks® Competition with a $250,000 equity investment offer after facing off against four other startups.

The seed funding, which was awarded by S2G Ventures, will allow the robotics startup to continue to scale and fine tune their product toward early commercialization next year. Its product, Burro, is a robot that follows farmworkers and functions as a virtual conveyor belt between pick points and collection points, allowing hand pickers to pick continuously rather than wasting up to 30 percent of their time shuttling produce.

“In S2G and Western Growers, we see a group with boots on the ground and eyes on the horizon—keenly aware of the day to day needs of farmers and the incredible potential for robots in agriculture over the coming decade,” said Charles Andersen, CEO of Augean Robotics. “We are honored to have their support and look forward to working together as we bring collaborative robots to the industry that needs it most.”

 

WORLD-RENOWNED SPEAKERS LEAVE GUESTS WITH POWERFUL MESSAGES

The topic of embracing growth and change were top of mind during the Changing Minds to Influence Results with Arbinger and Advances in Genomics sessions during the Annual Meeting.

Juan Enriquez, one of the world’s leading authorities on the uses and benefits of genomic research, shared a presentation on genomics and how advancements in the field will fundamentally change life in the future, while Mike Merchant, senior consultant for the Arbinger Institute, facilitated an emotional and eye-opening conversation about achieving an outward mindset. Through personal stories from WG members, the workshop demonstrated the importance of taking into account one’s impact on others and focusing on the needs of the organization as a whole.

“Arbinger is more than a culture. This is a healing,” said Merchant. “It’s a way to humanize every interaction and speak the same language.”

Additionally, keynote addresses from Judge Andrew Napolitano, Robert O’Neill and Jon Dorenbos left guests in awe. During the PAC Lunch, Fox News’ Senior Judicial Analyst Judge Napolitano shared insights on the current political environment. On the following day, O’Neill took the stage and provided an inside look into leadership and decision-making as a Navy SEAL Team Six leader.

“This nation will never quit,” noted O’Neill during his keynote. “It will do everything it can to preserve and protect its people.”

O’Neill—who released the famous three shots that dispatched the world’s most wanted terrorist, Osama bin Laden—has held leadership roles in more than 400 combat missions and shared some of his personal key principles to success with the audience:

•  Separate emotions from decision-making.

•  Never quit. Only move forward.

•  Complacency kills.

•  Trust your team. Trust your people.

“Bravery is recognizing fear and putting it aside. Put your head down, don’t give up and keep moving forward,” said O’Neill.

The Annual Meeting culminated in a jaw-dropping magic performance by former Philadelphia Eagles long-snapper Jon Dorenbos, where he wowed the audience with his skills as a sleight-of-hand magician and inspired the crowd with his life story.

Though the festivities of the 2018 Annual Meeting have concluded, it is never too early to begin thinking about WG’s next annual conference. WG is headed to Wailea Beach Resort – Marriott, Maui, on November 10 – 13, 2019, for another Annual Meeting filled with growth opportunities, interactive activities and ag collaboration.

Augean Robotics Hailed as “Comeback Kids” during AgSharks Competition

January 7th, 2019

Augean Robotics is a true testament to the phrase “persistence pays off.”

The robotics start-up company—which builds a fully autonomous, vision-based farming robot called “Burro”—returned to the AgSharks® Competition stage this past October for a second shot at winning $250,000 in seed funding. The early-stage company first competed in AgSharks in 2017 during the Western Growers Annual Meeting in Las Vegas. After fiercely pitching Burro to a panel of investors from S2G Ventures and specialty crop farmers, Augean Robotics was not selected as a winner and subsequently did not earn the investment capital at stake.

The startup, which is headquartered in Philadelphia, PA, with another office in Salinas, CA, at the Western Growers Center for Innovation & Technology, used the experience as a learning opportunity. Implementing the feedback they received from the AgSharks judges and other stakeholders, the principals refined their product to better fit the needs of agricultural industry.

They came back this year, looking to change the outcome.

“We’ve been very persistent,” said Charlie Andersen, CEO of Augean Robotics. “We pitched last year and didn’t win. Since then, we’ve assembled the world’s best team, found initial customers and have been through a whirlwind of progress. We believe that we are the best play in the world in which to deploy capital into agtech robotics, and I’m glad that we won the judges over this year.”

Augean Robotics walked away from the 2018 competition with a $250,000 equity investment offer, as well as access to farm acreage for pilot testing, to take its collaborative robotic platform from development to market. The seed funding was awarded by S2G Ventures (Seed 2 Growth) after competing against four other start-up companies also inventing new technology solutions to solve agriculture’s most pressing issues.

Burro can follow workers; autonomously move cargo by acting as a virtual conveyor belt from where people are working to where the crops are being collected; and captures the data needed to further automate farm work. According to Andersen, farmworkers often spend 20 to 30 percent of their day running produce back and forth to a collection point. Burro eliminates that.

“Our launch product, Burro, automates repetitive in-field transit, and is the first step towards completely autonomous farming in the most labor-intensive, highest-margin crops,” said Andersen. “We are giving growers a platform that can be expanded to do more tasks autonomously and will enable farmers to make improvements in operational efficiencies.”

In addition to winning the favor of the judges, the robotics startup also won over the audience. Annual Meeting attendees who watched the pitch session had the opportunity to rank each of the five competing companies’ technology as: buy, try or deny. Augean Robotics received the highest percentage of “buys,” which played a role S2G Ventures’ decision to invest.

“When we went backstage to speak about the pitches and choose a company to invest in, we walked into it with a certain vision and walked out of it with a different outcome,” said Sanjeev Krishnan, S2G Ventures’ chief investment officer and managing director. Krishnan was among the judges’ panel, which also included Kevin Andrew, chief farming officer at Vanguard International; Robby Barkley, president & CEO of Barkley Ag Enterprise; Cristina Rohr, vice president at S2G Ventures; Vic Smith, president & CEO of JV Smith Companies; and Matthew Walker, managing director at S2G Ventures.

“The top two in the try, buy, deny poll were Augean and Bird Control Group. The audience was comprised mostly of Western Growers members and hearing how they felt led us to make offers to both companies,” said Krishnan.

Though Bird Control Group was made an investment offer, officials decided to decline the deal at hand and are currently in discussion with S2G about other potential opportunities.

Augean Robotics left the stage as the sole victor of the competition, receiving the funding needed to deploy more prototypes into field trials with growers. They plan to use any feedback they receive to fine tune their product toward early commercialization next year. The startup expects to deploy 100 robots in 2019.

“With this capital from S2G and partnership and support from Western Growers, we can continue to scale and create more value for the agriculture industry. We hear so much dialogue about robots, robots, robots, and we are looking forward to finally putting an automated solution into the hands of growers,” said Andersen.

AgTechx Events Sparking Technology-Led Disruption in Farming Regions

January 7th, 2019

It is no secret that automation, big data and blockchain are disrupting traditional farming models. What may be unclear, however, is how this digitization of ag can be relevant to the specific crops you grow or how new technologies can be used to solve problems faced in the regions you farm.

Last year, Western Growers launched AgTechx to bring technology to farmers in an effort to address issues in their own backyards. The first AgTechx premiered in the Imperial Valley on February 8, where nearly 200 farmers, researchers, technologists and agtech startups participated in R&D tours, fireside chats and panel discussions to dissect the labor and water issues in the desert region and discuss specific technologies being invented to help solve those challenges.

Since then, AgTechx has traveled to Reedley, CA, to highlight progress around robotics and automation; to Coalinga, CA, to cultivate discussion on improving connectivity on the farm; and to Delano, CA, to delve into new technology that can aid the implementation of California’s Sustainable Groundwater Management Act and minimum wage increase. To date, AgTechx events have educated more than 650 people.

In 2018, AgTechx was comprised of three portions:

•  R&D Tours: Exclusive morning field tours where start-up companies and research and development specialists from tech giants such as Microsoft and Yamaha visited with Western Growers members to learn, first hand, what problems farmers are facing and what types of technologies can be developed to relieve those difficulties.

•  Junior AgSharks: Local junior high, high school and community college students acted as “AgSharks” for the afternoon, where they heard pitches from start-up companies and teamed with venture capitalists to judge the startups and select a winner.

•  Education Session: In-depth panels and fireside chats about cutting-edge technologies and regional growing issues took place, encouraging discussion on how to bring forth new innovations that can address farmers’ most pressing concerns. A networking component was also built in, where start-up companies housed in the Western Growers Center for Innovation & Technology (WGCIT) provided 90-second pitches about their invention and attendees could later touch base with any desired startup during the exhibition showcase.

This year’s AgTechx plans to bring much more.

“We are going to focus on becoming more outcome-orientated,” said Dennis Donohue, lead of the WGCIT. “With that in mind, we are going to continue to collaborate and reflect the changes that are going on in the agtech world itself, but we are now going to plant more strategic flags to find solutions for our members as quickly as possible.”

AgTechx events in 2019 will focus on bridging the information gap between Silicon Valley and rural America. New strategic initiatives such as building an “AgTechx Community” to foster future collaboration and discussion, as well as hosting stand-alone R&D days will play a significant role in identifying which technologies are most beneficial in key production areas. For example, a stand-alone AgTechx R&D day would entail a group of engineers visiting vineyards in the Central Valley to work with farmers to see what their automation needs are and discuss what features in a machine can be built to resolve those needs.

“In a world that is becoming increasingly technical, there is a going to be a massive amount of information coming at our members in an accelerated speed. AgTechx is going to distill and translate that information and bring it directly to growers in their backyard,” said Donohue. Expect to see changes in the next AgTechx, which will be held in Sacramento at Bayer on February 7, 2019.

In addition to enhancements to AgTechx, WG plans to integrate the “outcome-orientated” focus throughout all technology initiatives this coming year:

•  Grower Trial Network: A Grower Trial Network will be introduced this year, where a select group of WG members will be trialing and evaluating innovations coming out of the WGCIT. Members will be providing feedback to the start-ups, so entrepreneurs can fine tune their product and bring it from development to market as quickly and effectively as possible.

•  Crop-Collaborative Initiative: Keeping in mind that an automated solution that works for one crop will not necessarily work for another, WG will launch a cross-collaborative initiative to accelerate automation for all crops. The initiative will include activities such as the following:

     Global Collaboration: Convening game-changing innovators from around the world to share labor-saving technologies.

     Robotics Collaborative: Working with the robotics community to learn about inventions that can potentially emulate the human function.

     Road Show: Traveling to multiple key production areas within a couple of weeks to discuss automation needs and new labor-saving technologies.

•  AgTech Innovation Directory: WG has soft-launched an interactive directory that acts a marketplace for agtech startups. By visiting www.agtechpages.com, users are able to see details about each startup including years in business, number of WG members using and acres deployed. Also, WG members are able to filter through desired startups by commodities served, issues addresses and solutions offered.

•  Expand Global Reach: The Center will continue to host delegates from foreign countries and formalize partnerships abroad in an effort to expand our global network. Additionally, WG will learn about technologies these partners developed to overcome labor, food safety and water obstacles in their respective countries and translate those into findings that will benefit WG members.

“Our center is now in its third year, and we are more committed than ever to helping our members battle ongoing challenges such as labor shortages, water scarcity and kill-step validation,” said Hank Giclas, WG senior vice president, strategic planning, science & technology. “We are now working more strategically in a ‘ready, aim, fire’ fashion to ensure that the issues our members are facing are being solved with the right technology.”

 

Speed Breeding: New Technology Shows Promise

January 7th, 2019

Researchers in Australia first began looking at a new technique called speed breeding eight years ago, and U.S. researchers have followed suit with their own trial projects in recent years.

The concept involves exposing plants to an inordinate amount of light in a close greenhouse environment in an effort to speed up the growing process and produce new generations of seeds in a much quicker fashion. The initial research in Australia involved wheat but there have also been some efforts to apply the new technique to vegetables and other crops.

Stephanie Sjoberg, a PhD candidate in plant breeding in the Crop & Soil Science Department at Washington State University, is one U.S. researcher working on the idea. She is currently working on wheat and came to WSU in 2016 to pursue this line of research. Previously she was in the vegetable seed industry with Bayer for a half a dozen years and also worked for H.M. Clause and Monsanto. Her career is in plant breeding and admits that her current work with wheat revolves around the fact that it is a major agronomic crop and there is available funding for such crops.

She said the speed breeding work in Australia is very interesting, the concept is well known among the plant breeding community, and she believes there is applicability for a variety of crops, noting that work has been done on wheat, barley, canola, chickpeas and brassicas among others. Sjoberg believes the tomato would be a good candidate as well. She explained that the concept involves exposing a plant to 22 hours of artificial light and two hours of dark. “That technique has significantly sped up the life cycle of production,” she said.

In Australia, researchers have been able to produce six generations of wheat plants per year as opposed to one annual crop in the field and two or three under normal greenhouse conditions. This technique allows for much quicker development of new varieties with positive traits being bred into the plants in a much quicker fashion. Sjoberg said the research has shown that the speeding of the plants production has no adverse effect on the development of the seeds being produced about every six weeks or so. She did say that this technique would not work when actually trying to produce a fruit or a vegetable as the passage of a time in a plant’s normal growth is needed to grow a crop to fruition, but harvesting seeds has proven to be a different matter.

The importance cannot be overstated as it typically takes five or six generations of plant breeding to develop new parental lines to produce seeds with the new positive traits that a producer would be looking for. If those parental lines can be produced in one year rather than five or six the advantages are obvious. Sjoberg said the development of the speed breeding work across many different plant lines will have a “huge impact” on the industry. She said it has the promise of cutting new variety development time in half or less.

Of course, speeding up the development of new varieties has been an elusive goal of plant breeders for many, many years. Biotechnology and work at the gene level has promise and has led to the use of “markers” to identify and transfer positive traits easier and more quickly. Sjoberg said genetic sequencing allows researcher to detect genes linked to markers and transfer these traits between varieties without going through the entire time-consuming, plant-breeding process. For example, there is a determinate and indeterminate gene in tomatoes that are utilized for production of varieties based on whether they are developed for fresh or processed production. A bush or processed tomato variety will have the determinate gene, which means it will grow to a specific size for the goal of achieving a uniform, one time harvest. A fresh market tomato variety will include the indeterminate gene, which allows it to continue to grow and produce marketable tomatoes over a long period of time. Researchers have the ability to identify those traits by utilizing gene markers during the breeding process.

Sjoberg briefly discussed a couple of other breeding techniques being utilized that also can speed up the process. One is the use of a technique called double haploid or dihaploid. It is a tissue culture technique that allows breeders to develop uniform lines from a population of plants in one generation. Copies can be made without going back to the traditional method of combining parent 1 and parent 2. The WSU researcher said it is another way to shave time off of the original breeding timeline.

Of course, speeding the breeding process is great for seed companies and growers who are always looking for varieties with improved traits, be it disease resistance, increased shelf life, more flavor, easier to harvest, more uniform and a host of other positive characteristics. But the Australian breeders pulled no punches in discussing their motivation for speed breeding. In a video report found online, researcher Lee Hickey of the University of Queensland said: “Nine billion people…nine billion mouths to feed by 2050, and our crops that we are growing today aren’t good enough to get the job done. So we need breakthroughs in genetics. We need to build these crops to be more productive under warmer climates, (and) more variable droughts. Not to mention rapidly evolving pests and pathogens.”

The research has been going on for eight years with several articles published in scholarly journals explaining the effort more thoroughly, available on the internet.

Legislator Profile Arizona State Representative TIM DUNN Representing the 13th District

January 7th, 2019

(Editor’s Note: Tim Dunn was appointed to the Arizona House of Representatives to represent Arizona’s 13th Legislative District. After earning his Bachelor’s degree in Agriculture from the University of Arizona, Rep. Dunn started his own grain company alongside his father.  As a proud Yuma native, he understands the agricultural needs of his city.)

 

Being born and raised in Yuma, how would you describe Yuma to an outsider who has never visited?

Yuma is what I would consider a big little town. Everyone who has grown up here knows each other. The people who gradually moved into Yuma still uphold the same core values which transcend to the bigger community. I believe that is why people like to come back and move here, especially military, who tend to come here to complete their duties. They generally want to come back and retire here because we have small town rural values, but yet we’re an up and coming progressive town.

 

What personal accomplishments are you most proud of and why?

Among my proudest personal accomplishments is raising my two sons alongside my wife, Eileen.  We’re also helping to establish a church within our community. We’ve built the church from the ground up and are continuing to help it grow. Over the last 15 years, I’ve also been involved in the Arizona Farm Bureau. I was the vice president for 12 years, so that experience helped lay the groundwork for my appointment to the [Arizona House of Representatives].

 

You have two sons, Kirk and Timothy. What are you most proud of about your sons?

My oldest son, Kirk, is recently married and returning to work on [our] farm and grain company. I am very proud of his drive. He’s forward-thinking, always questioning what we can do next with a “the world is at your fingertips” mindset. My youngest son just graduated and is in the Air Force. In September, he enrolled in a linguist school in Monterey to learn Farsi. As a fresh recruit out of the Air Force’s basic training, he found something that he was passionate about, which also makes me very proud.

 

Tell us a little about your business and how your experiences in business and agriculture have shaped your political views.

I own Dunn Grain Company, which is a company my dad and I started when I graduated from college. Over the last 20 years we’ve tried to create contracts that complement the produce industry in Yuma; for example, our black eyed pea contract. We used to grow produce, but 20 years ago we decided to stop—which may or may not have been a good decision. We grow our own seed crops so we can be in-house from beginning to end on a project.

Being in agriculture has definitely shaped me politically. In agriculture, we are constantly being introduced to regulations that we have to respond to. This is something we’ve had to deal with for years and by default has made me aware of these situations. What can be done to limit and reduce these regulation burdens? As [part of the Arizona Farm Bureau], we have always had to work on regulations, and now as a representative, I try to minimize that impact if I can, or at least do my best to make sure there is no increase. Lower taxes and fewer regulations is the goal. Anything we can do to be an advocate for labor and for helping our area of labor and immigration is important.

 

How were you appointed to replace Don Shooter?

The Legislature was completing their investigation and their initial plan was to censor Shooter, but at the last minute, the Legislature decided they were going to expel him. Following that decision, I received the phone call from a member of a group that loves the political agriculture community. Due to the way the process works, once a person is expelled, the committee has five days to submit names to the supervisors. The supervisors then appoint the person to replace them. It was very quick considering there were only five days. I received the phone call saying they wanted me to go forward and put my name up. At the time, we were in the middle of spring crops which meant I could not walk out on my responsibilities at our grain company. My father came out of retirement to tend to our seed and wheat crops so I could transition into this position.

 

What are your legislative priorities in the house?

One of my top priorities is water. We’re in the middle of working on the Drought Contingency Plan, drafting contingency plans for Arizona to work with the seven states on the lower basin. There are ongoing meetings happening in order to get stakeholders to come together and consider ways to prevent the water levels [in Lake Mead] from going below 1075. When the water level drops to a surface elevation below 1075 feet, there will be mandatory cuts for the Central Arizona Project and central Arizona. When you take mandatory cuts for central Arizona agriculture, there’s a big part of the economy at stake, so how can we do some things to keep that agriculture going?

For the state of Arizona, one thing to note is that we are one of only a few states that charges a tax on fertilizer. That puts us at a disadvantage. We addressed this with the committee last year, though we didn’t have a bill in place, talking and discussing to try to get to some level playing field. It was in statute before, but the Department of Revenue has a different version on what should and should not be taxed, so that will help all of agriculture if we could get that out.

There are also a few bills we’ve been working on; nothing major as far as revamping things. The department is moving our agriculture lab so we’re having a discussion on what that is going to look like because we need to make sure we don’t do anything that’s going to hurt our economy in Arizona.

Sometimes our agenda needs to be keeping people from messing up what is going right. I believe we should not pass bills just to pass bills, which is something I’ve said before and will continue to say.

 

Any last remarks?

I encourage everyone to make sure they are engaged, not only with their association but creating their personal relationships with their representatives. Although as representatives we believe we understand the needs of our constituents, I would encourage people to make sure they build those relationships because you’re not always going to agree on everything, and often we just don’t understand where you’re coming from. But this is a great opportunity for me to represent agriculture at the state Legislature and I appreciate the support.

 

Implementing California’s Groundwater Management Law in a Silo

January 7th, 2019

Across California, landowners, water managers and local government officials are struggling to develop sweeping plans to bring more than 100 groundwater basins and sub-basins into compliance with the most dramatic change to the state’s water laws in over a century.

In the few short years since the passage of the Sustainable Groundwater Management Act (SGMA), dozens of conferences, hundreds of analyses produced by academics, hydrologists and water lawyers, and a mind-numbing cascade of meetings have consumed the attention and work of local water managers and those they serve.

This is inevitable and necessary, given the huge area of productive farmland affected and the thousands of public water entities and other local governments that had to suddenly form legally-mandated local Groundwater Sustainability Agencies (GSAs), which in turn must quickly create detailed plans to meet the law’s requirements, as judged by the State Water Resources Control Board.

The law’s mandate to achieve basin “sustainability” by 2040, we are told, will inevitably require the retirement of some as-yet-unknown number of productive acres of farmland. That number is likely to be at least 500,000 acres in the San Joaquin Valley alone.

State government leaders and regulators often express their appreciation for the difficulty that will come. They might ameliorate some of the pain by taking SGMA out of its silo.

From the moment SGMA was proposed, issues regarding declining surface water supplies have been shunted aside. Setting aside the various motives of the state’s elected and appointed leaders (and environmental groups) that pushed SGMA in the first place, the result is an illogical march to restrict and reduce groundwater access to farmers, most pronounced in the San Joaquin Valley, while simultaneously choking off those regions’ only means of recharging depleted basins as required by SGMA.

At least four surface water supply realities play outsized roles in how SGMA will impact the economies and social health of entire regions:

Delta exports. Beginning with the 1992 Central Valley Project Improvement Act and continuing with Endangered Species Act and other policies, water deliveries to federal and state contractors south of the Sacramento-San Joaquin Delta have been in steady and serious decline. Even if the California WaterFix (Delta tunnels) project advances to construction, there will not be a return to historical allocations for south-of-Delta water users, all of whom are in SGMA’s crosshairs.

Above-ground storage capacity. The hope of the 2014 water bond, Proposition 1, was in its text governing the allocation of $2.7 billion for new storage infrastructure. Those provisions, carefully crafted in 2009 by the Schwarzenegger Administration and the late state Senator Dave Cogdill, the author of the bond act, were designed to create a competitive process that valued benefits that only surface storage projects can deliver. The actual result left much to be desired, however. State bureaucrats manipulated a convoluted regulatory process to score competing projects, finally coughing up partial funding for the Sites Reservoir project north of Sacramento and effectively dismissing the Temperance Flat project. Smaller surface storage projects, such as the expansion of Pacheco Reservoir (serving Silicon Valley), received full funding.

Repair and enhancement of existing infrastructure. The voters’ narrow rejection of Proposition 3 in 2018 dealt another blow to regions dependent on imported water to recharge and sustain their groundwater basins. That bond measure included $750 million to repair the damaged Friant-Kern Canal and improve the Friant-Madera Canal. The Friant-Kern Canal has been damaged by subsidence, resulting in the loss of more than half of its conveyance capacity. Critics of this funding blamed farmers for over-drafting the basin and causing the subsidence; they ignore the role they played in forcing greater groundwater pumping by successfully advocating for decreased Delta exports to the San Joaquin Valley.

Increased instream flow requirements. The State Water Board’s push to reduce diversions from San Joaquin River tributaries in order to increase river flows to the Delta has been marked by glaring inequities and the rejection of warnings of independent scientists that simply forcing greater volumes of water down a river will not, absent habitat restoration and other heavy lifts, improve the outlook for native fish species. But the most dissonant aspect of this forced regulatory march is the conflict between SGMA’s mandate to reduce over-reliance on groundwater and State Water Board staff actually suggesting that to mitigate the impact of its flow requirements, growers and cities could just pump more groundwater! Only in California.

• • •

California was the last state in the West to impose groundwater management, but it could be the first state in the West to restrict access to groundwater while simultaneously choking off the very surface water supplies needed to recharge and sustain its groundwater basins. The cruel economic and social fallout over the horizon gets polite lip service.

The agriculture industry and our water managers have been vocal about this disconnect, and we need to be even louder. One big question now is whether our new governor will hear and take action.

New Congress to Bring New Challenges & Opportunities

January 7th, 2019

As we ring in the New Year we will be welcoming a new Congress to Washington. As all of you know that Congress will look very different in the House of Representatives than what was in place after the 2016 election, as Democrats are in control.

Democrats flipped 40 seats—the fourth largest total of seats to flip since World War II. In the Senate, the Republicans expanded their majority by two seats. In our four home states of Arizona, California, Colorado and New Mexico, Democrats picked up 10 House seats and a Senate seat (four state tally: Senators: 6 Democrats – 2 Republicans; House: 58 Democrats – 14 Republicans).

What can we expect in the next Congress with these changes? Clearly the administration can expect significantly more oversight than it has had before. Executive branch-driven policy will be more aggressively challenged; regulatory rollback efforts will be challenged. Discussions over budget priorities will be contentious.

However, an area of compromise might be infrastructure. A potential area of progress could be immigration. An area of continuing upheaval is likely to be trade policy.

Rep. Peter DeFazio (D-OR), likely to chair the Transportation and Infrastructure Committee when Democrats assume the House majority, has a goal: producing a major infrastructure bill providing $500 billion for highways and transit, plus additional funding for airports and water projects. Likely Speaker Nancy Pelosi (D-CA), in outlining Democrats objectives next year, said: “We will deliver a transformational investment in America’s infrastructure to create more good-paying jobs, rebuilding our roads, bridges, schools, water systems, broadband networks…housing and beyond.”

President Trump ran for election on infrastructure and tried to push it last year. This could be a major area to explore that could bring bipartisanship.

With respect to infrastructure, Western Growers obviously supports repairing bridges and roads, but we will also explore some policy areas. For example, the lack of qualified drivers is a chronic issue for our industry so we may look at short term solutions around allowing more truck drivers at age 18. We will also take this opportunity to push for investments in Western water infrastructure necessary to meet current and future demands. Our existing water infrastructure is aging and in need of rehabilitation. We need new water storage in order to adapt to a changing hydrology and develop usable and sustainable supplies to meet growing demands. We need to also address conveyance in any package. Failing to improve infrastructure and expand useable supplies will inevitably result in more conflict as pressure grows to “solve” urban and environmental water problems by taking water from agriculture. Funding must consist of an expanded toolbox of loan programs that can finance projects at lower cost and innovative authorizations for public-private projects, as well as traditional federal grant funding. Beyond funding, we must also streamline the permitting process and realign regulatory agencies so that decisions on projects can be accomplished in a timely manner (thus allowing construction to be expedited) as well as ensuring that water management policies improve.

The next Congress may also offer an opportunity around immigration. As we all know, the fate of DACA kids is up in the air and moving through the courts. In 2019, the Supreme Court is expected to hear and decide on a case on the topic, which will likely force Congress to act on the Dreamers. There is no consensus on what a package might look like. Many Democrats may want to use this as a spring board to comprehensive immigration reform. Hardline Republicans in Congress and within the administration have for years been pushing for a package to include additional enforcement measures such as increased funding for detention facilities, more ICE funding, mandatory E-Verify, and even inclusion of proposals to reduce future legal immigration levels in exchange for helping Dreamers.

For our sector, an immigration deal must not only provide a new and better guest worker program, but we also must deal with the workforce we have in the United States already. We will see if there is room for us as part of a package.

Finally, 2019 will be a busy year on trade. The President came into office promising to shake things up on trade and he has certainly done that. To date, the President ended U.S. participation in Trans-Pacific Partnership (the other 11 countries in the deal completed the agreement, which goes into effect Jan. 1, 2019). The President promised to start negotiations with Mexico and Canada on NAFTA 2.0 and two years later we appear to have a deal in place pending ratification. Congress will debate ratification in the spring of 2019. The President has aggressively used U.S. trade laws to punish China as well as other countries for ‘unfair trade’ practices. China and other major trading partners have retaliated in kind, and we hope that during 2019 we are able to make progress in rebalancing trade or export markets will remain problematic. Finally, the President promised new bilateral trade deals and negotiations will start in 2019 with Japan, the European Union and the United Kingdom. It is likely these negotiations will take at least 18 months to complete.

To say the least, it should be an interesting year in DC!

WGCIT Sponsor: All Terrain Mower Has Roots in Czech Republic

January 7th, 2019

As an installer of ground-mounted solar panels, Russell Pacific was continually being asked for help regarding the maintenance of those installations, particularly in regard to the overgrowth of weeds and other ground cover. After a while, the overgrowth can block the sun’s view and cut down on the efficiency of the panels.

Vice President of Sales Jay Miles said the company started looking around for solutions to the overgrowth issue, which led them to the Czech Republic. There they found a remote controlled mower being used on steep terrain, where it was difficult and dangerous for a tractor-driven mower to operate. The manufacturer had several sizes that would fit perfectly underneath a solar panel, clearing the ground and eliminating the overgrowth problem.

Russell Pacific liked the product so much that it launched a company called AutoMOW and became one of two U.S. distributors of the line of mowers of that Czech company. AutoMOW is based in Monterey and is serving the ag community as well as other potential buyers of the product.

The product is a low-to-the-ground piece of equipment run remotely by an operator in much the same way as a drone. Miles said the European technology being utilized is top notch and allows for completion of the task without harming the panels. The equipment has been designed for steep terrains so he said it was good for many agricultural uses, including mowing vineyards and other agricultural fields on steep slopes.

There are several models for different uses but Miles said the one that appears to have the most utility for agriculture is the AutoMow Spider ILD02. It has a 49-inch cut area and retails for $36,500. The company’s representative said that is an attractive price compared to many of the zero-turn mowers on the market that are used by many farmers. He said the price is also competitive for owners of larger solar farms—an acre or larger—that are relying on laborers with weed whackers to accomplish the same task. AutoMOW has also sold its equipment to third-party landscape maintenance companies that specialize in providing mowing services to farms and solar farms.

Miles indicated that a purchase by a farmer can be justified especially if the mower can be utilized for multiple operations, including the maintenance of a solar farm. The company’s website touts the equipment as being perfect for “hard-to-mow areas, AutoMow all-terrain slope mowers are patented and innovative radio remote control mowers. A unique piece of equipment, they’re designed for the maintenance of almost all types of terrain. Slope mowers are versatile machines capable of mowing fine turf as well as heavy brush, from flat areas to slopes up to 55 degrees.”

Miles said the connection to the Czech Republic appears to be coincidental as opposed to specific to any special need in that country.  He explained that Europe tends to be the home to many engineering innovations and this is another one. He said the Spider mower, as it is known in Europe, has a strong market position, especially in the municipal market, as many government entities use the equipment to maintain public properties. The original mower was developed in 2004.

Russell Pacific has been a resident of the Western Growers Center for Innovation & Technology since 2016.

 

ZAG Bringing IT Security Awareness to WG Center for Innovation & Technology

January 7th, 2019

ZAG Technical Services, Inc.—a leading IT consulting and services company—joined the Western Growers (WG) family a few years ago as a Partner Sponsor for its Center for Innovation & Technology (WGCIT) in Salinas, CA. In addition to assisting agtech start-up companies in bringing their inventions from development to market, ZAG is dedicated to helping its larger grower clients and WG members succeed by reducing systemic risk, increasing productivity and ensuring security.

“It has 100 percent been a time well spent as a sponsor of WGCIT,” said Greg Gatzke, president and co-founder of ZAG. “We’ve gotten to know more leaders throughout the ag industry.” He believes their sponsorship has made them more knowledgeable and gives them the opportunity to pass that knowledge on to their clients.

ZAG, a term signifying “going in the right direction” according to Gatzke, works with a number of residents in the Center to better understand the services and products they offer. ZAG uses the information coming from the WGCIT to better understand what is coming in the industry and how IT must be ready to support the future advancements.

While many of the start-up companies working out of the WGCIT focus on groundbreaking technology such as sensors, mapping/visualization and Internet of Things (IoT) devices, ZAG concentrates on the network necessary for the technology to work properly.

“With the proliferation of technology everywhere, every company becomes an IT company, so we help to ensure that businesses can compete,” mentioned Gatzke. “Companies have quickly become dependent on technology, and technology is heavily dependent upon the strength of the network.”

Take, for example, supervisory control and data acquisition (SCADA) systems, which is a network of software and hardware elements that allows organizations to:

•  control processes locally or at remote locations

•  monitor, gather and process data in real-time

•  directly interact with devices such as sensors, valves, pumps and motors

SCADA systems serve as data-collection instruments that send information internally in order to prevent problems. Temperature sensors are a perfect example; if a temperature sensor in a cooler notices the temperature is getting too warm, it adds in extra cooling or notifies someone that the cooling is not working. The same goes for water moisture sensors in the soil and other things in the field. SCADA systems are put in place to inform growers of the issues sooner rather than later. That being said, without secure SCADA systems in place, organizations will open themselves up to greater cyber security risks.

For instance, Gatzke recalled a time when a client reached out to ZAG after being breached, requesting their help on recovering data and rebuilding systems. ZAG helped the client get their business back online, but the incident resulted in a loss of millions of dollars due to the fact that their client was out of commission for many days while the breach was being repaired.

Every cyber security breach presented to ZAG has been preventable, according to Gatzke, but organizations tend to be reactive rather than proactive.

“Companies initially have a hard time seeing the need to invest in secure networking,” said Gatzke. “However, following the breach, they immediately realize that it would’ve been worth spending the time and money on security.”

As president, Gatzke’s responsibilities include leading the company and helping to define its future. With offices in Salinas, San Ramon and San Jose, he spends countless hours meeting with various agricultural organizations throughout Salinas and all of Northern California, constantly seeking out new technology and trends within the industry. Although ZAG mostly works with ag-related companies, its network expands to Silicon Valley.

“I’d put the speed of ag manufacturing against Silicon Valley any day of the week,” Gatzke exclaims, noting the speed and evolution of the ag industry. “People outside of ag manufacturing think they run 24 hours a day and seven days a week, but ag manufacturing really is 24/7. You have to always have your systems up and trucks have to be ready to ship. If trucks don’t ship, product doesn’t keep. There are so many moving parts, constantly surrounded by high speed and high pressure.”

When asked if it has been difficult keeping up with the ag industry, Gatzke responded that “the industry has never been slow but it’s never been as fast as it currently is. It is not necessarily difficult to keep up, but it requires more focus. A wide vision is crucial in this industry. You can’t afford to focus on what happened yesterday because what you did yesterday isn’t going to get you where you need to be tomorrow.”

He also added continuous learning is key in this industry and as president, he is obligated to learn every day and if he’s not, he is “falling behind.”

Gatzke comes from an ag background, having been born into a family of vegetable farmers. It was natural for him to couple his background with his passion for computers to create ZAG Technical Services. He said it was also natural to support and sponsor the WGCIT.

“We see Western Growers enabling the advancement of the industry as a whole, and the technology focus that Western Growers is bringing to the world of ag is not just the future, it is the present,” said Gatzke. “To be a part of something like this is an honor.”

WGAT The Importance of Educating Employees of Their Health Benefit Coverage

January 7th, 2019

Despite the uncertainty of the Affordable Care Act mandate, employers continue to pay a significant portion of the cost for employee health benefits. Now more than ever, employers need to educate their employees on the true value of those benefits, not just at open enrollment time, but throughout the year. Here are some reasons why communicating more about your health plan to employees is important and tips on how to share the information successfully.

Why Communicate

According to a February 2018 study conducted by America’s Health Insurance Plans, researchers found that the majority of employers surveyed believed that providing employer-sponsored health coverage was important for recruiting efforts, but even more important for employee retention. In another study, conducted by the Harris Poll of the American Institute of CPA’s, employees believed that having a good health plan was a stress reliever as they knew they could see a doctor without having to pay the entire cost. That peace of mind was enough for an employee to stay at a job longer so they wouldn’t lose their health benefits.

Another key finding was that most employees underestimate the full cost of what employers are paying. Yet, when employees were educated about the cost of their health plan, they thought more favorably of the company. In addition, with consistent communication from the employer, employees tend to be more responsible in how they spend their company’s healthcare dollars, which can help to reduce overall costs and improve employee wellness.

Do your employees know the true cost of their health plan? According to the Kaiser Family Foundation, the premium to cover one employee and their family is approaching $20,000 a year (specifically $18,764 in 2017) and employees typically pay a third or less of the cost.

 

What to Communicate

While it’s a good start to share details of how much the health plan costs and the percentage the company is paying for it, it can also help to provide details on historical trends so employees understand the reasons behind cost increases and what the projections are for future costs. If you can, show employees what the cost of health benefits would be if they had to pay through local and national insurance markets.

How about also sharing ways employees can save on their out-of-pocket health costs? Some cost-saving tips include:

•   Before scheduling a medical procedure, get pre-approval through the provider. Most doctor’s offices will contact the insurance company in advance. Confirm in advance any copays or deductibles required.

•   Seek care only from in-network providers whenever possible.

•   Limit going to the emergency room except for a life-threatening situation. For other medical needs, use a 24/7 telehealth program if available, visit an urgent care center during after hours, or a doctor during office hours.

•   If a care management program is offered, encourage employees to participate if they have a chronic condition. Participants are often eligible to receive coaching from a nurse, educational information, medication discounts and more.

•   Ask for Tier 1 prescriptions or generics whenever possible.

 

How to Communicate

Lastly, how you communicate to your staff is equally as important as what you communicate. Here are some suggestions on how to enhance your employee benefit communications:

•   Use all your communication channels to educate employees such as company newsletters, bulletin boards, intranet, social media, emails, payroll stuffers and face-to-face meetings.

•   Make your communications engaging, colorful and interactive. Consider providing infographics and role-playing scenarios during healthcare plan enrollment presentations to enhance employee understanding.

•   Consider hosting a benefits fair, with participation from your benefits plan administrator, to provide employees an opportunity to meet with them and have their questions answered directly.

•   Provide tools like a benefits calculator for employees to see how much is paid out in total compensation and benefits for the year. One is available at Calcxml.com/calculators/total-compensation. Also ask your benefit plan administrator what member materials are available to share.

In addition to these tips, remember that if you have the WGAT plan, your Western Growers Insurance Services account manager can assist you as needed. If you don’t have the WGAT plan but want more information or are interested in purchasing the plan, contact a WGAT sales representative at (800) 333-4WGA.

 

Always Put Our Members First

January 7th, 2019

By Matt Luis

 

Being born and raised in the Central Valley, I’ve been surrounded by farming and production agriculture my entire life. But it wasn’t until a couple of years ago, when I came to Western Growers, that I embarked on a journey that allowed me to truly understand the complexities of an agricultural operation so I could help better protect businesses from potential losses.

I’ve been in the insurance sales industry for nearly a decade now, and over the years I’ve noticed a trend among other insurance providers. The focus is on why the client should work with their office. The salesperson requests a copy of their current policies, with the goal of matching current coverages and beating current pricing. Once they have made their case, they move on to the next opportunity that is most likely in a different industry, not food and agriculture.

That is not my philosophy. Nor is it the philosophy of Western Growers Insurance Services. All we do is Agriculture—working with growers, packers and shippers. I am proud to say that we are one of, if not the only, insurance brokerage out there that truly specializes 100 percent in agriculture. Yes, our primary competitors may have clients in agriculture, but they also focus on a whole host of other industries. Everything we do, every product we’re working on, every carrier we work with is in an effort to become a better solution for the agriculture industry.

One of the things I love most about what I do is having the opportunity to visit a growing operation or tour a packing facility to see, first hand, what our clients do and what value they provide to their customers. The more I understand about what they do, the better I’m able to translate what their needs are and put that into content for insurance solutions—as opposed to simply visiting a company and reviewing their existing insurance policies. I strive to be of value to my current and potential clients and it is important to me to be a part of a team that takes the time to understand what our members really do…to a level that other brokers do not.

We recently rolled out a comprehensive contaminated products program designed to guide food and agriculture companies through managing a contamination-related event and mitigating exposure with the goal of preventing the need for future recalls. This is part of what we refer to as the Western Growers Shield®.

The foundation of this unique program is working with the members to develop a customized solution for their business needs. For example, more than a year ago, we sat down with Harold McClarty and his management team at HMC Farms in Kingsburg, CA, to listen and learn what components of contamination/recall coverage they were looking for. After months of working diligently with the company and the underwriters, the WGIS team presented a solution that was priced competitively and met all the coverage needs of HMC Farms. We all learned from the development of this opportunity, and I am excited to say that Harold and his team still depend on us for their policy needs!

Western Growers Insurance Services is continuing to create and expand these types of comprehensive insurance solutions to ensure that our clients are properly protected. Western Growers Insurance Services is MUCH more than just a healthcare agency; we are a full-service risk management solutions provider and a true resource and viable solution for your commercial or business needs.

Editor’s Note: Matt Luis was a recipient of the 2018 Producer of the Year Award. Dedicated to serving the Central Valley, Luis is a resource to Western Growers members for all their commercial lines and insurance needs. He can be reached at [email protected] or (559) 368-5026.

New California Employment Laws for 2019

January 7th, 2019

The Democratic-controlled California Legislature was very busy last year, passing over 1,200 bills, more than 1,000 of which were signed into law by the governor. Dozens of employment and labor bill were signed into law, and several of those were instigated by the #MeToo movement. All of the laws summarized below are effective January 1, 2019, unless otherwise noted.

 

Sexual Harassment Prevention Training

SB 1343 provides that employers with at least five employees must provide at least two hours of sexual harassment prevention training to all supervisory employees and at least one hour of sexual harassment prevention training to all non-supervisory employees in California by January 1, 2020, and every two years thereafter. This is a major change from existing law, which required companies with 50 or more employees to provide such training, and only to supervisors. The law also directs the California Department of Fair Employment and Housing (DFEH) to develop, and make publically available, training materials that comply with the new requirements. Employers can direct employees to the DFEH online training materials or use those materials to develop and deliver their own training.

The law applies to temporary and seasonal workers. Beginning January 1, 2020, employers are required to provide such training to any employee hired to work for less than six months within 30 days after the date of hire or within 100 hours worked, whichever comes first. “Temporary services employers” (i.e., temp agencies and staffing companies) are required to provide the training to their employees, not the client.

 

Non-Employee Harassment

SB 1300 amends the Fair Employment and Housing Act (FEHA) relating to workplace harassment claims. First, it prohibits an employer from requiring an employee to agree not to sue or bring a discrimination claim under the FEHA in exchange for a raise or bonus or continued employment. Employees also can’t be compelled to sign a non-disparagement agreement or other document that denies the employee the right to disclose information about unlawful acts in the workplace, including sexual harassment, except as part of a negotiated settlement agreement resolving an employee’s claim brought in an official forum or through the employer’s complaint process.

The new law also greatly expands the legal standard of harassment, including for example, expressly stating that a single incident is sufficient to prove harassment if the conduct unreasonably interfered with the plaintiff’s work performance or created an intimidating, hostile or offensive work environment. Under SB 1300, employers may be liable for sexual harassment committed by non-employees if the employer knew or should have known of the harassment but failed to take appropriate corrective action.

 

Restrictions in Confidentiality of Settlements

SB 820 prohibits settlement agreements from containing provisions preventing the disclosure of factual information related to claims of sexual harassment, sexual assault, and workplace harassment or discrimination based on sex, including retaliation for reporting such behavior.

The law still permits parties to keep the settlement amount and information about the claimant’s identity confidential, if the claimant requests. The new law applies to agreements entered into on or after January 1, 2019.

Under AB 3109, parties are prohibited from entering into an agreement that waives a party’s right to testify regarding criminal conduct or sexual harassment in an official proceeding, where such testimony is otherwise required by a court, agency or legislative body. Such provisions are unenforceable in any agreement entered into on or after January 1, 2019.

 

Lactation Accommodation

AB 1976 requires employers to provide a private location, other than a bathroom, for employees to express milk for the employee’s child and to afford employees a reasonable opportunity and amount of time to do so. The law expressly states that an agricultural employer is deemed to be in compliance if it provides an employee with a private, enclosed, and shaded space (e.g., an air-conditioned cab of a truck or tractor) to express milk.

 

Human Trafficking Notice

AB 2034 requires specified businesses, including farm labor contractors, to post a compliant notice regarding human trafficking in a conspicuous location in clear view of the public and employees where similar notices are customarily posted and to conduct employee training. Businesses subject to this posting requirement must comply starting January 1, 2019, and may use the model notice that is available for download on the State of California Department of Justice’s website.

 

Ag Overtime

AB 1066, which was signed into law in 2016, will gradually reduce the standard 60 workweek in agriculture to eight hours in a day and 40 hours in a workweek, over a four-year period. Beginning January 1, 2019, the requirement to pay overtime will kick in after an agricultural employee works 9.5 hours in a day or 55 hours in a workweek. The change applies to only those employers who employ 26 or more employees. Employers who employ 25 or fewer will be subjected to these new requirements on January 1, 2022, with an 8/40 workweek phased in over four years.

While the Department of Industrial Relations has not, as of this writing, received final approval from the Office of Administrative Law to update Industrial Welfare Commission Wage Order 14 (which covers wages and working conditions for agricultural employees), the updated wage order is expected to eliminate the overtime exemption for irrigators working for large employers on January 1, 2019.

 

State Minimum Wage Increase

The state minimum wage is set to increase to $12.00 per hour for employers with 26 or more employees. The rate is $11.00 for employers with 25 employees or fewer. The minimum salary under the white collar overtime exemption test is two times the state minimum wage or $49,920. Also, there are about 25 cities and counties that have their own minimum wage, and many of those will also increase on January 1, 2019.

The Adverse Effect Wage Rate, payable to H-2A workers and others in “corresponding employment” is expected to increase to $13.92 in California, $12.00 in Arizona, and $13.13 in Colorado and New Mexico, respectively.

 

Feed Truck Drivers

AB 2610 provides a limited meal break exception for commercial drivers transporting commercial feed to customers in remote rural areas, and authorizes them to commence the meal period after six hours of work under certain conditions. To qualify, the driver must be transporting nutrients and byproducts from a licensed commercial feed manufacturer to a customer located in a “remote rural location” and the driver must be paid at least 1.5 times the state minimum wage and receive overtime compensation as required by law. In addition, the driver must be provided a second meal period at the tenth hour of work in a day.

 

Payroll Records

Existing law allows employees to “inspect or copy” their personnel records. SB 1252 makes clear that employers must furnish copies of personnel files, wage statements and other employment-related records to employees, not just provide the employee the opportunity to make their own copies.

 

Salary History

Existing law prohibits employers from inquiring about an applicant’s salary history and requires employers to provide the pay scale for a position to an applicant upon request. AB 2282 amends the Labor Code to clarify that:

•  Employers can consider salary history information disclosed voluntarily and without prompting;

•  Employers may ask about an applicant’s salary expectations for the position they applied for;

•  Only applicants other than current employees may request and receive the pay scale for a position, and only after completing an initial interview; and

•  The pay scale provided only needs to include salary or hourly wage ranges (not bonuses or equity ranges).

In addition, employers may make compensation decisions based on a current employee’s existing salary if justified by one or more factors such as a seniority system, merit system, system that measures production, or a bona fide factor other than race or ethnicity, such as education, training or experience.

 

Paid Family Leave

AB 2587 removes the seven-day waiting period before an employee is eligible to receive Paid Family Leave wage replacement benefits to take time off to care for a seriously ill family member or to bond with a new child.

Western Growers members are encouraged to review their existing employment practices and employee handbooks, and to make all necessary updates to ensure compliance with the new laws.

Are You Prepared for the Produce Safety Rule Inspections?

January 7th, 2019

By Sonia Salas

 

The Food Safety Modernization Act (FSMA) expanded the U.S. Food and Drug Administration’s (FDA) inspectional authority and imposed many new requirements. Do you know what to do if a Produce Safety Rule (PSR) inspector knocks on your door?

PSR regulatory inspections are around the corner! They are set to begin in the spring of 2019. In most states (including Arizona, California, Colorado and New Mexico), inspections will be conducted by your state department of agriculture under a cooperative agreement with FDA.

Because prior notice to a company of an impending inspection is not required, you may not receive it. If an inspector contacts you to schedule an inspection, respond promptly as unresponsiveness will likely result in an unannounced inspection. Unless there is an urgent matter, inspectors will generally seek to inspect during normal business hours. In addition, an inspection has the weight of the law behind it; the inspector is specifically there to check for regulatory noncompliance. Noncompliance could lead to enforcement as simple as a follow-up inspection or as severe as operational shutdowns, penalties/fines, criminal investigations, and under the worst-case scenario, imprisonment.

PSR inspections will be prioritized based on operational size, where the operations are located, and which commodities are grown and/or handled. Inspections will involve verbal questions, records reviews and observations of covered activities. Record reviews will cover training, biological soil amendments of animal origin, food contact surface cleaning and sanitizing, water related records, and documentation related to exemptions that apply to your operation. PSR inspections represent new territory for growers and regulators and add uncertainty as to what to expect.

Being prepared in advance will go a long way to helping you feel confident when faced with your first PSR inspection. Fortunately, there are tools and resources available to accomplish this. There are three aspects you should consider: 1) assembling an inspection team, 2) requesting an On Farm Readiness Review (OFRR); and, 3) utilizing industry resources.

 

Assembling an inspection team

Having an inspection team and procedure in place is fundamental. An inspection team is commonly formed by a minimum two employees and it is best if headed by a senior level company representative. One person should be designated as the main contact and another one designated to take notes. An inspection team is responsible for greeting the inspector, participating in the opening conference, accompanying the food inspector during the inspection, providing documentation, answering questions and participating in the closing conference.

The inspection team should be familiar with the PSR requirements and be responsible for understanding your company’s policies, legal rights and responsibilities. This team should develop an inspection plan/procedure in writing and conduct drill inspections so that when an inspector shows up at your door, everyone knows what to do. Before an actual inspection takes place, an inspector should present credentials, a notice of inspection and discuss the nature of the inspection.

At the time of the inspection, the inspector will want to observe all activities conducted and performed on your operation that are covered by the PSR. If the inspector sees anything of concern, he or she should discuss it with you immediately and provide regulatory reference and scientific rationale to support such concerns. Any corrective actions that you commit to will be documented. At the end of the inspection, the inspector should summarize any discussions you had during the inspection, answer any questions you may have, discuss any follow-up steps, and provide your team with a copy of the inspection report. Western Growers has an Inspection Manual that provides information and suggested guidelines for members to follow during food regulatory inspections. This manual can be accessed at www.wga.com/resources

 

Self-Assessments and On-Farm Readiness Reviews

View preparing for a PSR inspection as an opportunity to conduct a self-audit of your food safety program activities, procedures, documentation, and record systems. WG has produced a PSR self-audit checklist along with an illustrated PS Rule Implementation Guide that is available to members on our website www.wga.com/fsma. This resource provides you with an opportunity to self-assess your operation.

Also, in 2017 the FDA released four guidance documents to help those subject to the PS Rule to establish and implement the required practices and procedures. These guidance documents culminated in the October 2018 release of a comprehensive Draft Guidance to Industry: Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption and Draft Guidance for Industry: Guide to Minimize Food Safety Hazards of Fresh-cut Produce. This document is open for comments and we welcome your thoughts and careful review. Any comments can be submitted to us by March 30, 2019, or to the FDA by the comment deadline of April 22, 2019.

Industry guidance can assist you in assessing your operation. In addition, you could also request a non-regulatory On-Farm Readiness Review (OFRR). These are designed to help growers better understand what to expect from an actual PRS inspection. An OFRR is a voluntary, on-site assessment of your operation’s food safety and good agricultural practices coordinated by your state department of agriculture. OFRRs provide you with an opportunity to learn about the applicability of the rule to your operation and to ask questions. Western Growers has a dedicated OFRR website page that includes videos and additional information to better understand how OFRRs work and how to request one (www.wga.com/ofrr).

In conclusion, being prepared is a must to deal successfully with the upcoming PSR inspections. If you have assembled an inspection team, have inspection procedures in place and have assessed your operation regarding PSR requirements, you are better prepared ahead of any PSR inspection. Nevertheless, it is not too late if you have not addressed inspection preparedness. We encourage you to use tools and resources available to you. Please contact WG’s Science and Technology staff for assistance or if you have any questions about this matter.

2019 Economic Outlook

January 7th, 2019

By Chris Oerman

 

2018 turned out to be a lackluster year for the equity markets after an unprecedented nine quarters of earnings growth and a historic bull run dating back to 2011. All of the major indices had flat or negative returns for the year, and it’s been hard to find any sort of growth out of equities with consumer discretionary, healthcare, and utilities – typically viewed as defensive sectors – leading the way (and barely clinging on to positive returns).

After nine straight quarters of accelerating earnings growth, we started to see a shift in Q4 2018, with the equity markets falling from their highs in October. We expect this trend to continue into 2019 as the global economy continues to slow.

The U.S. dollar went on a bullish tear in 2018 as it reinforced its role as the world’s reserve currency. We’ve seen inflation slow as a consequence of the strong dollar. Further evidence of a strong dollar includes the U.S. commodities index declining more than 7 percent for the year, crude oil dipping below $50 per barrel after rising to $70 just a few months earlier, and foreign currencies underperforming compared to the dollar.

If the Federal Reserve decides to turn dovish in 2019, we could see the dollar fall from its recent highs versus foreign currencies and an acceleration in inflation, which means consumers could see goods become more expensive in 2019.

In 2019, we may find a resolution to the tariff war with China, especially if both countries become desperate. To put things in perspective, the U.S. equity markets are down 13+ percent from their September highs while the Chinese markets are down 20+ percent from their 2018 highs. A tariff resolution may result in a short term boost to the equity markets, but it is yet to be seen if the effects will have an impact on long-term growth.

We may also hear more about bonds and corporate debt in 2019, as a rise in fear over the accuracy of bond ratings and credit quality among some of the U.S.’s major corporations could become more prominent in the media. In the event of an economic downturn, we could see some BBB-rated corporate debt downgraded to high-yield, with the fear of a negative impact on some of the world’s largest bond funds and ETFs.

With the volatility currently seen in equity markets, we should be cautiously optimistic for 2019. U.S. companies are healthy, but we’ve seen Wall Street take a “shoot first, ask questions later” approach many times in the past. Meanwhile, interest rates and the credit yield curve should continue to be closely monitored.

Western Growers Financial Services would like to wish everyone a prosperous new year.

Brand Journalism Puts Companies in the Publicity Driver’s Seat

January 7th, 2019

What is brand journalism, and why should you care about it?

Because traditional media is dying, and brand journalism offers a way for you to tell your story, the way you want it told.

The weekday circulation for daily newspapers—both print and digital—in the United States dropped 8 percent in 2016, marking the 28th consecutive year of declines. Print circulation fell from a high of nearly 60 million in 1994 to a combined 35 million for print and digital today.

Additionally, the people’s lack of trust in mass media is contributing to the decline of newspapers, television and radio. In 2016, around the election campaign and the emergence of fake news, Republicans who said they have trust in the media plummeted to 14 percent from 32 percent the previous year. This is on top of the fact that Americans’ trust and confidence in the media has been steadily eroding since 2007, according to Gallup.

The advancement of technology has also played a role. Digital progression has allowed our society to pen and publish our thoughts in a moment’s notice. Between Twitter, blogs and podcasts, you can receive the latest updates from a cadre of other news sources. Not to mention create your own news and stories.

We are no longer bound to the ink of the press. Technology has torn down the walls and changed the game. We are all in the media business now.

With that being said, brand journalism allows us to be a leading player in the game. Brand journalism is creating and publishing journalistic content for your own company, rather than waiting for the media to do it. Companies now have the tools (websites, blogs, emails, social media, etc.) at their disposal that allows them to directly communicate with their customers using journalism-style storytelling.

Different from content marketing, which seeks to capture interest to generate leads and conversion, brand journalism focuses on storytelling and creating honest, meaningful connections with the audience. These stories are “human” and authentic.

People do not want to see a myriad of pop-up ads on a website that preach marketing jargon to them; they want to read real and interesting stories they can relate to and that provide value to their lives. A well-told story is the best way to get your message across.

And who better to relate to people than the ones who grow their food?

With brand journalism on the rise, agriculture has an opportunity to tell the industry’s story without the journalistic filter. However, jumping into a new trend can be intimidating. Using case studies from some of the most successful food and drink giants in the world, here are some tips on how to use brand journalism effectively at your company:

•  Be Transparent. McDonald’s, who is said to be the founder of brand journalism, squashed rumors about a secret contract they had with Coca-Cola to make their soda taste better. The fast food chain investigated their customers’ concerns and provided factual evidence and information through social media and the web. They were transparent and honest which helped them mitigate what could have turned into a public relations crisis.

   Misinformation is not uncommon in agriculture, especially when it comes to food safety and plant breeding. Brand journalism allows you to share the truth, while helping you build a loyal following that will be an advocate for you and your industry when issues arise.

•  Don’t make it all about your company, make it about the people. Starbucks uses brand journalism to tell the stories of their employees. For example, in 2014, they shared the story of the employee whose artwork was used for their annual holiday mug. By focusing on a person in the company, rather than the organization itself, readers were able to better relate to the brand, which expanded their exposure and helped lead to an increase in sales.

   This is a win-win. By highlighting the goodwill of your employees, you not only create a positive work environment and make your employees feel valued, but your audience will trust you more. When consumers see your label in the marketplace, they will remember the stories you told about real people and will be more willing to purchase your product.

 

Brand journalism helps to get the conversation started, but do not forget to utilize social media to keep it going. Simply providing content is not enough; you have to get the content in front of the right audience. If you need assistance getting started with brand journalism or need tips on bolstering your social media presence, the Western Growers Communications Team is here to help.