As Boomers Retire, Latchkey Kids Become New Face of Farming

March 14th, 2019

While the time-honored tradition of passing the family farm from one generation to the next holds strong, the scene on today’s farm is much different than what may have been familiar in the past. These days, you are just as likely to see a young farmer swiping quickly through multiple screens on a smartphone as seated on a tractor or plowing a field.

According to the U.S. Department of Agriculture, the average age of farmers has grown from 50.5 years to 58.3 years in the past 30 years. As the age of farmers and ranchers increases, so does the number of mouths to feed. Our global population is expected to exceed 9.6 billion people by 2050, and farmers will be tasked with producing 70 percent more food by then.

With farmers reaching retirement age and leaving their farms, how will we meet the global demand for food? Three words: The. Next. Generation.

 

Generation X Cultivated to Take Over

There is a reason why 99 percent of the 2.1 million farms in the United States are family owned and operated. Farmers take pride in cultivating the next generation, bringing their children to play and work on the farm at a young age. They pass on the lessons they have learned over the years to keep the farm sustainable and profitable, while teaching them how to care for Mother Earth and her land.

Caught between the vast waves of boomers and millennials, members of Generation X have come of age and are next in line to carry the torch of feeding the world. Gen Xers, those born between 1965 and 1980, are now applying their “latchkey kids” traits, such as uber-independence, to enhance the workplace.

The Nunes Company, one of the nation’s largest grower-shippers of conventional and organic fresh produce, recently elected Tom M. Nunes to serve as its president. At 42 years old, Nunes—known as “T5”—will be the fourth generation to run the company.

“I grew up around the business and around a lot of family and great mentors that have been involved with the business for the past four decades,” said Nunes (T5). “When my dad and grandfather offered me a position with the family business, it was a no-brainer.”

During the summer of 1999, he moved to Yuma and began his career at the family farm. Nunes worked his way up through the company, gaining experience in all aspects of the organization including harvesting, production, cooling, shipping, sales and marketing. He eventually took the reins as vice president of operations where he not only built upon longstanding partnerships with industry stewards such as BlazerWilkinson and Peri & Sons Farms, but is in the midst of creating new ones.

“Tom has always been a huge supporter of our Center, bringing the perfect blend of pragmatism and optimism when it comes to technology on the farm,” said Dennis Donohue, director of Western Growers Center for Innovation & Technology. “He’s always willing to give his time to support our agtech startups and understands the value of establishing relationships with them to, together, develop tools that fill real-world needs for food producers.”

 

Millennials Bridging the Gap Between Technology and Farm

Generation Y (those who turn 23 to 38 in 2019) are also playing a significant role in the sustainability of farming and agriculture by bringing technology to the field as a solution for feeding a growing population. This generation, also known as millennials, is said to be incredibly sophisticated and tech-savvy as they have been exposed to all types of digital engagement since early childhood.

Domenick Buck—a fourth-generation farmer—currently serves as assistant ranch manager for Anthony Vineyards, managing his family farm’s table grape operations in the Bakersfield area. At 30, he is always on the lookout for new technologies that can be game-changers for table grape production.

“Table grapes are an extremely labor intensive commodity,” said Buck. “Our company estimates, from the time that we start pruning until the end of harvest, it’s roughly 700 man hours per acre to farm. Due to increasing labor costs, we have to find ways to be proactive and focus on mechanization and automation that can supplement the human element of harvesting.”

He notes that the way table grapes are harvested today is “archaic,” in that those picking the grapes walk half a row (could be up to 300 feet in difficult terrain), fill their picking bins on top of a wheel barrow and walk them to the end of the row.

“I estimate 15 percent of their day is just walking up and down the rows. We need to find a technological solution that is both practical and affordable. This will allow the labor force to focus solely on harvesting, which would be extremely beneficial in productivity and cost savings,” he said.

Understanding how technology can play a role in battling regulatory hurdles and crippling labor shortages, companies are now creating positions dedicated to sourcing promising inventions. Bowles Farming Company, one of the early adopters of agricultural technology, has a team of young employees solely dedicated to researching new and emerging technologies for the farm and developing integration strategies for scaling proven solutions.

In fact, the company has already implemented and deployed numerous innovations coming out of the Western Growers Center for Innovation and Technology, including WaterBit’s automated irrigation solution and HarvestPort’s equipment sharing marketplace.

Sun World Innovations, a division of Sun World International, is also looking to the millennial generation to identify new agricultural technologies that can potentially be trialed and adopted on Sun World farms. Victoria Kovacevich joined the Sun World Innovations team after graduating from Cornell University in 2017. As an agriculture technology analyst, she is responsible for identifying, validating and assessing new ag technologies relevant to Sun World’s farming pursuits and those of its licensees.

“Labor and automation, especially with specialty crops, are struggles that need to be addressed. Bringing technology companies together with growers to form relationships and collaborate on creative solutions is really the way that anything is going to advance and is the way that everyone will be successful in the end,” said Kovacevich during the View from the Farm: The Next Generation panel at Western Growers’ AgTechx event in Delano this past September.

“Being at the beginning stage of this industry is exciting. I’m looking forward to see what the future holds and to continue working with tech startups to try to come up with solutions to our challenges,” Kovacevich remarked.

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From NASA to the Farm

March 14th, 2019

Director Profile

Neill Callis

Sales & General Management

Turlock Fruit Company

Turlock, CA

Director Since 2019 | Member Since 1944

 

 

New Western Growers Board Member Neill Callis isn’t a rocket scientist, but he rubbed shoulders with plenty of them during a 17-year career at NASA prior to joining Turlock Fruit Company a half a dozen years ago.

Callis’ story begins on the East Coast, where he was raised, educated and began his career at the Universities Space Research Association, a longtime National Aeronautics and Space Administration contractor. He grew up in Roanoke, VA, where his dad enjoyed a 27-year career with the Kroger Company in store operations. Both of his parents hailed from North Carolina, which is where the family spent many summer vacations and where Neill went off to college. He graduated from Elon University in 1997 with a degree in political science and an interest in working on Capitol Hill in some capacity. But the young man exhibited some economic savvy and decided to join NASA as a systems engineer, which had a brighter future than becoming an overworked and underpaid congressional staffer.

“I worked in Washington D.C. for six years before I had the opportunity to transfer to the Bay Area in 2003,” he said.

That proved to be another fortuitous decision as it was at NASA’s Universities Ames Research Center in Mountain View (about an hour south of San Francisco) where Neill met Hilary Smith, granddaughter of Don Smith, daughter of Steve Smith…and great granddaughter of the legendary Cantaloupe Smith, who started Turlock Fruit a century ago in 1918. “Hilary and I worked together on the SOFIA Mission for 10 years,” Neill said, explaining that the mission uses an airborne telescope mounted on a Boeing 747 to take pictures of the outer reaches of the universe. “Three to five times a week, the telescope uses infrared technology, 44,000 feet in the air to study the origins of the universe. It does phenomenal science,” he said, noting that SOFIA is an acronym for Stratospheric Observatory for Infrared Astronomy.

Callis reiterated that he was not a scientist but rather a project manager and a systems engineer that processed the data and worked on the design of the project. Hilary also worked in the operations end of the effort becoming a project manager in her own right.

And most importantly, Hilary and Neill clicked personally. They were married in 2006 and welcomed their first child into the world, Daniel, in 2011. Since then, in 2014, daughter Elin joined the family pod. But it was Daniel’s birth that had Hilary and Neill considering options for a different life. Living in San Francisco was great for a young couple, but with a family to think about and traffic congestion becoming more of a problem, the two of them started to explore other potential work sites around the country.

“We were looking for an exit,” said Neill. “Out of the blue, my father-in-law (Steve Smith) asked me if I’d consider joining the family farming operation. And so I did consider it. I am a methodical thinker. I analyzed the opportunity from every angle.”

In 2012, just as the Jensen Farms’ Listeria outbreak put cantaloupes in a tailspin, Neill began what he calls “an internship” at the sales office of Turlock Fruit Co. His analysis convinced him that the move looked good on paper. The internship was the last step to make sure he melded well with the other team members and the day-to-day activity was to his liking. The Jensen debacle aside, he determined it would be a good move for both him and his family.

At that point, and still today, the management team consisted of Don, Steve and Steve’s son Alec, a graduate of Yale, who loves the production side of the business. Neill’s forte is in helping run the business side of the entity, with a strong emphasis in packing, cooling, shipping and sales. He said Turlock Fruit is of such a size that it’s too large to run itself but it’s small enough that Neill has a diversified job description. During the cantaloupe season, he’s on the sales desk in the morning and coordinates production in the packing plant in the afternoons. During the spring asparagus season, which was just getting underway at the time of this interview, Neill serves as general manager of the asparagus packing operation. He also noted that the company is currently centralizing operations at its Firebaugh plant and he is heavily involved in that.

As a Western Growers board member, Callis is part of a group of five relatively new members that have graduated from the Western Growers Future Volunteer Leaders Program over the last several years. He said the group does represent a generational shift that is occurring in the industry but to his observation it is a seamless shift as far as the Western Growers Board is concerned. He said each board member has accepted him with open arms and his thoughts and viewpoints appear to be accepted as well as any others. He follows a long line of the family tree that has served Western Growers, with each of the preceding generations serving multiple stints on the board. In fact, Don Smith still holds the record as the youngest chairman of the board in the history of the association.

“Steve encouraged me to apply for the Future Volunteer Leaders Program, which I participated in from 2014 to 2016 as part of Class 3,” Neill said. “I loved every minute of it. It was inside baseball.”

When he had a chance to join the board, Neill calls it a “no brainer. As long as I can remember, Steve was talking about Western Growers and what a great organization it is.”

As this conversation was taking place, it appeared as if the government shutdown would end soon (and it did the next day). “I am hoping we can get something done on immigration reform now,” he said. “Sometimes it takes an unpopular actor to get something going and it’s possible our current situation can be the catalyst for change.”

Toward the future, Callis is optimistic that four-generation-old Turlock Fruit will be able to sustain the fifth generation. But he admits, changes are inevitable. “We are getting ready to start our California asparagus deal. California used to have 40,000 acres and now it only has 2,000 and 500 of them are ours. I am a realist and there are very specific factors not in our favor.”

On the other hand, he said Turlock Fruit first and foremost is a melon grower and shipper and “from the end of June to the end of September, there is no better place in the world to grow melons than right out here. We have the best melons there are and I think you can continue to be a seasonal shipper when you have that advantage.”

Along with the other members of the fourth generation of the Smith family, Callis is poised to lead the company down the road, but he noted that both the second and third generations are still going strong. Don Smith appears to have no interest in slowing down and Neill said Steve is cut from much the same cloth with the same commitment to the company and the industry that his father has exhibited in his 80+ years.

As far as his own family is concerned, Neill said the move to the Central Valley has been a good one. The kids are growing up in a more rural environment and wife Hilary has traded in her NASA hat for that of an entrepreneur. She has launched two different endeavors—“Hey! Turlock,” a social media effort to chronicle everything happening in the community, and she also self-publishes knitting designs on the internet, some of which have done quite well and gone viral.

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Father/Son Team Innovate Potato Category

March 14th, 2019

Bob & Nathan Bender

Tasteful Selections

Bakersfield, CA

Member since 2010

 

In the 1990s, Bob Bender was a chip potato grower in Nebraska for a major manufacturer. He and his teenage son, Nathan, would often bring home the baby size potatoes that didn’t make grade because of their size.

“It was only the large ones that you could make into potato chips,” said Nathan. “We would bring them home and cook them on the grill or prepare them in some other way. Friends and family loved them.”

The Benders remember thinking that there was “something there” that could be exploited but how to turn that item into a business proposition wasn’t even idle chatter. Life went on. Nathan finished high school and went on to the University of Nebraska majoring in agricultural business. Bob continued growing chip potatoes for CSS Farms, opened up a California operation for the chip-growing company and eventually moved to the Golden State in 2004 to run that growing operation.

Nathan spent summers in California helping out and they still enjoyed eating those small baby potatoes that fell through the chain during the harvesting operation. Their company website reveals that they would bring them home by the bucketful. They still hadn’t monetized the idea of growing baby potatoes but Nathan said trips to Europe revealed that there was at least a limited market for smaller potatoes as European retailers carried them. And in fact, there were limited supplies of odd-sized small potatoes being sold in Canada and U.S. markets as well.

In 2007, Nathan had graduated from college and was living in San Diego working for Sprint, the communications firm. Bob still farmed in Bakersfield, but he and CSS Farms had exited the chip potato business for that operation. “We were growing other crops always looking for a niche,” said Bob. “We were growing peppers, carrots, black-eyed peas, garlic.”

A Canadian company contracted CSS Farms to grow baby potatoes in the spring and ship them to our northern neighbor so the company could have year-round production. The light went back on for the Benders. “We grew them for that company for two years and saw real potential for the baby potato category,” said Bob.

By this time he had enticed Nathan to come back to the farming operation. The farm was owned by CSS Farms, and still is, with Bob as a partner, but the California operation was run as a family farm. “I don’t think Nathan would have come back if we were still doing chip potatoes,” Bob recalls. “But the opportunity to do something new and different was enticing. We both saw the potential.”

Nathan added: “This struck home for us,” as it conjured up those days a decade earlier when they were serving these baby potatoes during their Nebraska barbecue outings.

After growing for the Canadian firm for two years, the CSS partners decided to cut out the middleman and grow and market their own baby potatoes. In January of 2010, Tasteful Selections was launched and soon thereafter the first fields were planted. “In July and August we had our first crop. We operated out of a rented cold storage facility and packed our first bags of baby potatoes” under their own brand.

Since then the company has had meteoric growth. Tasteful Selections differentiated itself by adding special care for these creamer-style potatoes. It began with uniform sizing and they now have six sizes, ranging from truly baby potatoes to the largest size, which is a bit smaller than two inches in diameter. The company packages four colors—red, white, purple and yellow as both regular and fingerling potatoes and both in conventional and organic packs. Tasteful Selections harvests baby potatoes 320 days a year in eight different districts covering 14,000 acres of land.

From the small, rented packing shed it occupied in 2010, it has grown exponentially, with double-digit growth each year, including a 30 percent increase in 2018. “We built a new facility in 2015 and we have expanded every year since,” Bob said. “We are going to double the size of the facility in 2019 and we expect to double our volume in the next three years.”

In 2010, Nathan said the creamer potato category—which is the official name—represented only 1-2 percent of sales. He said sales are now above 15 percent of the total U.S. potato category and are expected to grow to at least 25 percent by 2025.

Bob said the firm continues to experiment with new potato varieties and new packaging options for the consumer. This past year, the firm introduced a couple of microwavable retail options.

Of course, success breeds imitators and while Tasteful Selections innovated the category, there are many copycats out there. “We have a 10-year head start,” Nathan said. “Growing baby potatoes is a challenge. It’s a lot more expensive and there is far less yield per acre.”

But he said the biggest challenge is delivering the quality the consumer wants. “A lot of people are growing these potatoes but they don’t realize what the consumer wants in terms of quality and taste.”

And Bob said it is also challenging to make it a year-round operation with sufficient supplies for every week of the year, which is what retail customers want. The company aims for consistent, year-round supply but Bob said there are periods when sales spike, such as during the end-of-the-year holiday season.

Bob Bender serves as president and CEO while Nathan Bender is chief operating officer. It is a privately-held company with several partners including the Benders, CSS Farms and RPE, Inc., (Bancroft, WI), which markets the baby potatoes grown and packaged by Tasteful Selections.

The company joined Western Growers when it opened its doors but Bob Bender said that being from the Midwest he was not fully aware of the association’s scope of services until the last several years. “We are getting more and more involved and that’s our plan. Nathan has gotten involved in the last couple of years and we have utilized more Western Growers services in the last couple of years. It’s a very good organization,” he said.

 

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Declining Bee Populations Ignite Swarm of Tech Innovation to Save Global Ag

March 14th, 2019

Cruising through California’s San Joaquin and Sacramento valleys in late February, you will see orchards lined with almond tree buds that have burst into lush pink and white blooms in preparation for pollination. Honey bees buzz from tree to tree foraging for nectar, while pollinating the sea of almond blossoms along the way. Come September, almonds are vigorously shaken off of the trees by farm machines that, coincidentally, are colored like the black and yellow of bees.

In 2018 alone, California produced 2.45 billion pounds of almonds. This is a 7.9 percent increase from the previous year’s crop, a testament to farmers who fiercely battled the freezing weather during almond bloom and carefully managed their crop to harvest. However, there is one hero in the story that may have been overlooked: bees.

Approximately 1.6 million colonies of honey bees are placed in California’s almond orchards at the beginning of the bloom period to pollinate the crop. Beyond almonds, close to 100 crops also rely to some degree on bee pollination services. In fact, one in every three bites a person eats is from a bee-pollinated nut or flower.

 

DECIMATION OF BEE COLONIES CONTINUE

Unfortunately, our overlooked heroes are facing a dilemma. They are dying.

Since the late 1990s, beekeepers around the world have observed the mysterious and sudden disappearance of bees, and noted unusually high rates of decline in honeybee colonies. It got even worse in 2006 when commercial beekeepers watched as the rates of dead bees almost tripled due to a condition called colony collapse disorder.

“When beekeepers brought large numbers of colonies to California for almonds, the bees looked good, the mite levels were under control but yet they lost the colonies. They would go back weeks later and they would find the queen and a double handful of bees,” said Dr. Steve Sheppard of Washington State University, during a WG Lunch & Learn webinar about colony collapse disorder.

For much of the past 10 years, beekeepers, primarily in the United States and Europe, have been reporting annual hive losses of 30 percent or higher—a figure that is substantially more than what is considered normal or sustainable.

The decline of colony numbers over time has been attributed to several challenges. This includes habitat fragmentation, parasites, limited genetic diversity, viruses, migratory stresses, bacteria, lack of forage diversity and quantity, poor bee nutrition, exposure to pesticides and climate change.

 

THE RISE OF ROBOT BEES…KIND OF

A world without bees may still seem far-fetched, but the continuous and steady decline of these pollinators is compelling researchers, technologists and farmers to come up with a solution sooner rather than later.

Researchers across the world are taking matters into their own hands and inventing robotic pollinators. For example, Eijiro Miyako, a researcher at Japan’s National Institute of Advanced Industrial Science and Technology, has designed an insect-sized drone capable of artificial pollination. This prototype is coated with a patch of horse hair bristles and an ionic liquid gel so it can collect and transfer pollen from one plant to another.

Additionally, researchers at Harvard University developed RoboBees, autonomous flying microrobots that are equipped with smart sensors and control electronics that can interpret and respond to their environment, mimicking the function of the eyes and antennae of bees. Corporations are also joining the cause. Just last March, retail giant Walmart filed a patent for autonomous robotic bees, or pollination drones, that could potentially pollinate crops just like real bees.

Though artificial pollination is possible, it is a tedious and time-consuming process. Not to mention it can be incredibly costly.

 

AGTECH STARTUPS LAUNCHING TECH TO SAVE BEES

Many technologists and researchers are, instead, turning to innovation that protects our natural pollinators rather than developing new autonomous pollination technology.

ApisProtect—an Irish company that recently opened its first U.S. office at the Western Growers Center for Innovation & Technology (the Center) in Salinas, Calif.—uses the Internet of Things (IoT) to help beekeepers manage colonies more effectively.

“The key value that ApisProtect provides is the processed data—a high level overview of each apiary with a breakdown of which hives are doing well, which ones are likely to experience problems and which hives are currently in need of immediate attention,” said Fiona Edwards Murphy Ph.D., CEO and co-founder of ApisProtect. “This is what allows the beekeepers quickly understand their hives and rapidly respond.”

ApisProtect places the power of advanced sensors and machine learning technology into the hive to deliver a 24/7 early warning system so beekeepers can give at-risk hives immediate attention and improve bee health. With this technology, beekeepers no longer need to rely solely on periodic, manual hive checks that can allow disease, pests and other issues to deteriorate hive health beyond rescue. They are now able to immediately obtain important information when the hive is difficult to inspect (i.e., during the night, poor weather conditions, hive is at a far distance) and be positioned to make more effective decisions.

“The issue with periodic checks is that beekeepers want to monitor hives with the minimum amount of disturbance to the colony. Unfortunately, this can lead to problems with hives being missed before they are too late to resolve. You can have two hives next to each other and one will be fine, while the other has severe problems. Our technology will help beekeepers use their time more efficiently and focus on managing the health of the hives at the right time,” added Dr Edwards Murphy.

The agtech startup is taking bee health one step further by partnering with the National Agricultural Genotyping Center (NAGC) to analyze hive health in the United States, testing for pathogens including: Acute Bee Paralysis Virus, Black Queen Cell Virus, Deformed Wing Virus, Slow Bee Paralysis Virus and American Foulbrood Bacteria. ApisProtect has installed their ApisMonitor units in 200 hives worldwide and are now monitoring the health of ten million honey bees across 100,000 acres.

“The economic impact we are looking for will provide cost savings for pollination services, improve honey production and reduce colony loss for beekeepers worldwide,” said Andrew Wood, chair and co-founder of ApisProtect.

In addition to IoT, encrypted GPS data is now being used to keep pollinators safe at home. The Bee Corp, one of the newest startups housed in the Center, launched a security system for beekeepers.

“We started The Bee Corp to leverage data analytics and sensing technology to help commercial growers and beekeepers ensure effective pollination,” said Ellie Symes, CEO of The Bee Corp. “Bee health is important, as beehives need to be strong enough to pollinate one-third of the food grown in the United States.”

When commercial beekeepers migrate their hives around the nation to provide pollination services to farmers throughout the year, those hives sometimes get stolen. In fact, more than 1,700 hives were stolen in California alone during the 2016 almond pollination season.

The Bee Corp’s QGPS Hive Theft Tracking System provides beekeepers with an instant alert when unauthorized hive movement is detected. The technology has the ability to automatically notify local authorities to dispatch a patrol to the location of the hive, and later, generate a report that can be used to prosecute the thieves.

The Bee Corp most recently turned its attention to questions surrounding pollination and introduced Verifli, the world’s first digital bee grading solution. Powered by infrared technology, Verifli allows growers to grade bees 25 times faster than manual inspections; easily measure hive strength without disrupting bees; evaluate pollination reports on their phone; and translate data to ensure accurate pricing based on hive strength.

“Our company is revolutionizing this important input by using infrared technology to inspect the strength of the beehive. In the next five to 10 years this will help growers optimize pollination by ensuring the health and effectiveness of beehives used in crop production,” said Symes.

To support startups that are taking a proactive approach to save natural pollinators, the Center is helping move their technology forward through groundbreaking events. In early April, the Center will host an “All About Bees” AgTechx event where innovators, growers and researchers will come together to discuss what immediate steps need to occur to preserve honey bees. This includes changes across farming operations, possible innovations yet to be developed and bringing current bee-related technologies from development to market.

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New Members in Congress Offer Opportunities for Arizona Agriculture

March 14th, 2019

By Dennis Nuxoll, Jonathan Sarager and Stephanie Metzinger

 

When Washington, D.C., greeted the 116th Congress in January, it welcomed a new slate of Arizona Capitol Hill delegates, who represent a shift in the state’s political landscape.

Ann Kirkpatrick and Greg Stanton were added to Arizona’s nine-member contingent in the U.S. House of Representatives, flipping the 5-4 majority from Republican to now Democrat. This is the first time there has been a majority Democratic Arizona House delegation in half a century.

Kyrsten Sinema and Martha McSally are making the jump to the Senate as the two newest seat holders for the state. Arizona previously has never had a female senator; now it will have two.

 While this cadre of lawmakers potentially signals a new political era for Arizona, it may also put the state in a better position to represent those in agriculture.

Here are the four Congressional freshman to watch this term.

 

U.S. Senator Martha McSally (R-Ariz.)

McSally replaced U.S. Senator Jon Kyl, who was appointed to the Senate in September 2018, filling the seat of the late John McCain.

She sits on the Committee on Banking, Housing and Urban Affairs, as well as the Armed Services Committee. Additionally, she sits on the Senate Energy and Natural Resources Committee, where she may play a significant role in decisions relating to water and environmental issues that affect Western Growers (WG) members. This includes potential regulatory changes to the Endangered Species Act to make the 1973 law more effective in achieving its intent while remaining workable for all affected stakeholders.

“Farmers and ranchers play a huge role in Arizona’s economy,” said Senator McSally. “As our U.S. senator, I will continue advocating for farm country and work to protect the long, vibrant legacy it holds in our great state.”

 

U.S. Senator Kyrsten Sinema (D-Ariz.)

Balancing out the Senate is Sinema. Sinema defeated McSally in the November 6 general election to replace Republican Jeff Flake, who retired. She is the first Democrat to win a Senate election in Arizona in 30 years.

“Supporting Arizona farmers and ranchers is crucial for our state’s economy, and we’ll continue making sure Washington dysfunction doesn’t stand in the way of their success,” said Senator Sinema. “We are working across the aisle in the Senate to secure our state’s water future and protect our producers from harmful tariffs.”

She currently is on the following committee assignments: Banking, Housing, and Urban Affairs; Commerce, Science, and Transportation; Veterans’ Affairs; and Homeland Security and Governmental Affairs. Sinema has been an advocate of implementing commonsense solutions to fix the broken immigration system. Though her focus lies on border security and protecting DREAMers, she has been vocal about Washington’s failure to act on immigration and its effect on Arizona’s economy and communities.

Both Sinema and McSally met with the WG Board of Directors last May in D.C. to speak about key issues such as trade and the need for immigration reform.

 

U.S. Representative Ann Kirkpatrick (D-Ariz.-02)

Kirkpatrick is a new face in the 116th Congress, but she previously represented Arizona’s 1st District from 2009 to 2011 and from 2013 to 2017. She lost her Senate bid to then-incumbent Republican John McCain in the 2016 election. Running again in the 2018 election, she won her race and now serves as the U.S. Representative for Arizona’s 2nd Congressional District.

Kirkpatrick serves on the Committee on Appropriations, and more importantly for WG members, the House Agriculture Committee. She will be part of the collective team that helps shape the future of farm policy in the United States. This includes finding innovative ways to address the needs of the industry as they relate to issues such as renewable energy, nutrition, crop insurance, conservation, international trade, futures market regulation, and agricultural research and development.

 

U.S. Representative Greg Stanton (D-Ariz.-09)

When Sinema launched her Senate bid, Stanton ran for her open House seat and defeated Republican Steve Ferrara. Prior to his congressional career, he served as mayor of Phoenix for six years. Stanton now represents Arizona’s 9th District, which includes parts of Phoenix and surrounding suburbs.

Serving on the Judiciary House Committee and Committee on Transportation and Infrastructure, Stanton will have a hand in aspects of our national infrastructure as well as civil justice, immigration and administrative law.

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2019: The Opening of a New Chapter in California

March 14th, 2019

The California Legislature returned to Sacramento in January to begin the first year of the 2019-2020 legislative session. Most notably, its arrival coincided with the inauguration of Governor Gavin Newsom. Governor Newsom’s inauguration marks the completion of Governor Jerry Brown’s historic political career and signals the opening of a new chapter in California executive leadership.

Political observers have enjoyed trying to compare the two governors and how they manage people, determine and evaluate policy, and engage with the media. These comparisons are fascinating and are likely to continue into the first months of 2019. Meanwhile, Governor Newsom has been busy putting together his new administration. January was a month of making numerous political appointments to agencies and hiring new staff in the governor’s office. It was also the first opportunity for Governor Newsom to provide Californians with his policy priorities in the shape of his proposed 2019-2020 state budget. The following is a brief overview of some of the key policy proposals that Newsom has outlined for the year ahead.

The need to build new and affordable housing has been identified as a policy priority by the governor and by many legislators. The state’s housing stock is not keeping up with demand and home rental prices are outpacing the median incomes of many Californians. Local jurisdictions are often placing needless hurdles in front of their required housing elements and making it nearly impossible to construct more housing. Western Growers is also working to find pathways to alleviate the housing crisis; especially as it impacts farmworker housing. We need additional farmworker housing now and we believe that reducing the barriers to getting that housing constructed will have the added benefit of relieving pressure on other housing needs.

We were pleased to see that the governor has identified and publicly reinforced the need for all Californians to have safe and affordable drinking water. His administration is supportive of all of the concepts that were a part of SB 623 (Monning) from last year. SB 623 was strongly supported by Western Growers. We continue to work diligently with all stakeholders on this topic and remain hopeful that this issue will be positively resolved this year.

Governor Newsom has placed great emphasis on healthcare in his budget. In addition to several proposals meant to reduce the cost of prescriptions, the budget includes $260 million for a proposed expansion of Medi-Cal to additional undocumented adults. The proposal would expand full-scope coverage under Medi-Cal to undocumented adults aged 19-25. This would be a substantial change in Medi-Cal eligibility. The budget anticipates that this revision would cover about 138,000 undocumented adults in just the first year alone. The governor has also called for an increase in Covered California subsidies for individuals that have incomes between 250 percent and 400 percent of the federal poverty level in order to increase their access to coverage. While not universal coverage; this proposal begins a conversation in that direction. The subsidies would be funded by revenue from a yet-to-be authorized state individual mandate. This tax would be paid by those who fail to obtain comprehensive healthcare coverage. There will undoubtedly be significant conversation around healthcare this year.

The proposed 2019-2020 state budget specifically recognizes the devastation that California has faced from wildfires. Additional funding is proposed for new air tankers, new fire engines, and replacing the state’s aging firefighting helicopters. A request is also being made for $214 million for increased fire prevention and fuel reduction projects. The budget also recognizes the lost property tax revenues by local governments and proposes to backfill those property tax losses over a specified time period.

Parental leave is another issue that has been widely discussed by the governor and many legislators. It comes as no surprise that the budget proposes to expand the Paid Family Leave program to six months. The details of this program and how best to implement it are to be determined by a separate task force.

The above-mentioned topics represent a high-level snapshot of some of the policy themes that Governor Newsom has included in his proposed 2019-2020 state budget. In addition, legislators will no doubt introduce thousands of bills this year on a myriad of topics. Western Growers staff will be monitoring and engaging on many of these items to ensure continued profitability and sustainability for our members and their employees. Fasten your seatbelt!

 

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Shipping Trends to Watch in 2019

March 14th, 2019

By Gary York

Vice President, Global Sales, C.H. Robinson

 

Recognizing how much the U.S. trucking market can influence transportation budgets is one of the most critical steps to managing spend. Temperature-controlled shipments can be especially affected—both in price and service—as market forces shift across the truckload landscape.

Predicting the future for supply chains may be impossible, however certain industry trends can help us forecast and plan. Prepare for whatever 2019 has in store by understanding the major factors influencing today’s market.

 

High demand for fresh food and temperature controlled capacity

All industries utilizing cold supply chains currently show growth (e.g., pharmaceutical, frozen, and fresh food). Consumers want fresh food to support healthy lifestyles. A strong economy with low unemployment and increased disposable income helps them make these purchases. This demand for fresh leads to more pressure on temperature controlled capacity than ever.

 

Ongoing battle for capacity amid driver shortage

For the time being, increased truckload efficiencies and modal diversification strategies have helped capacity meet demand.

While many companies attempt to expand capacity through new trailer purchases and increasing pools, a driver shortage may hinder their efforts. Between high employment rates that provide attractive, high paying alternative jobs to trucking, and baby boomers looking to retire, the recent incremental growth of the truck driver pool is not enough to meet growing demand—causing a driver shortage.

 

Trucking companies are more selective in relationships

These industry pressures, combined with the fragmented nature of the for-hire truckload market, cause the trucking community to be more selective about the freight and customer relationships they seek.

The graphic below shows just how fragmented today’s truckload market is. One approach, working with carriers only in the right two segments—carriers with 400+ trucks—means a shipper is accessing less than 1% of available carriers.

With 61percent of trucks in the United States currently falling into the owner/operator category (including a large percentage of temperature controlled capacity), gaining and retaining relationships within this majority pool of carriers is critical.

But accessing this extensive amount of capacity also means managing dozens to hundreds of relationships. A time-consuming endeavor to be sure. This is where experts like C.H. Robinson come in. Large third-party logistics providers (3PLs) are able to provide expertise and aggregate many carrier relationships into a single, seamless experience—without risking the quality service temperature controlled shipments require.

 

Successful shippers will differentiate their business

How can shippers best position themselves for the coming market? Prepare for these supply and demand changes by deploying new strategies that effectively manage carrier relationships. These six tips can help differentiate supply chains in any market:

1.  Keep rates current. An aged routing guide with outdated rates for the current market can cause unplanned swings in tender acceptance rates, higher increases during normal review times, or paying above market. All of these can negatively affect the total cost of goods sold.

2.  Provide predictable volumes. Service providers appreciate predictability whenever possible. Awarding freight on a year over year basis—and sticking to promised volumes—can mean lower increases in rates.

3.  Plan for origin and destination markets. In temperature controlled shipping, regional demand can quickly shift, which influences both price and capacity. Stay up to date about regional growing periods, weather, and other demand influencers.

4.  Cut dwell time for drivers. Loading and unloading times matter. Drivers lose profitable drive time if they’re stuck loading/unloading too long. Cut lengthy load times to reduce high tender rejections.

5.  Add lead time. Carriers plan/optimize operations weekly. Short lead times mean trucks may already be committed elsewhere. Research from MIT indicates that orders with lead time greater than two days have higher acceptance rates.

6.  Build strategic relationships. Rather than working with a large portfolio of only asset-based transportation providers, shippers should build relationships with a strategic mix of asset-based and 3PL providers for best capacity coverage.

 

Changes in supply and demand will continue to drive marketplace dynamics. Keep up to date on these influencers and their potential impact with the Western Growers Transportation Program. This unique program provides Western Growers members with market insights along with best in class strategic supply chain support from C.H. Robinson.

 

We’re here to help

If you have any questions or would like additional information regarding the Western Growers Transportation Program, please contact Lauren Singh (831) 392-7061 ([email protected]).

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Comprehensive Care for the Diversified Needs of the Ag Employer

March 14th, 2019

For more than six decades, Western Growers Assurance Trust (WGAT) has taken pride in partnering with WG members to offer an affordable and quality health care solution to provide to their employees. Here is an overview of why WGAT continues to be a leader in providing ag health benefits…now and in the future:

Caring Customer Care Service. Our entire customer care team is located at our corporate headquarters in Irvine, CA. When calling customer service, plan participants receive a caring and professional representative who assists them in an efficient yet respectful way. Bilingual care representatives are also available. We also have representatives in the field who visit clients and answer questions they or their employees may have regarding the health plan.

Bilingual Communications. Everything from benefit updates, member materials, participant newsletters and our Summary Annual Report is provided in Spanish, as well as English and at no cost to our employer clients.

Mexico Panel. For added convenience to participants who work or live near the Mexican border, WGAT offers a network option that provides health care services in the border cities of Tijuana, Mexicali, San Luis and Los Algodones. The program is based upon a referenced-based pricing arrangement with designated physicians and hospitals for services routinely offered in Mexico.

Cedar Health and Wellness Centers. We have opened four Cedar Health & Wellness Centers in or near the communities that our plan participants work or live. Our centers are located in Salinas, Watsonville, Santa Maria and Oxnard. Plan participants can receive many of the same services they would receive at a regular doctor’s office but at a lower cost. Bilingual providers and extended hours are also available to accommodate the needs of the workforce.

Telehealth services. To meet the needs of employees and their covered dependents who may have challenges with transportation, seeing their doctor during regular business hours, or being home with young children for example, we include a complimentary telehealth service in every plan. This 24/7 service allows participants to meet via a live video chat with a board-certified physician or mental health professional using a smart phone, tablet or any desk top computer with a front-facing camera for a low copay. The telehealth provider can also write prescriptions and coordinate blood work as needed.

Online Services. WGAT provides a variety of online tools available 24/7 to give clients and their covered employees access and updated information on their WGAT health plan benefit. Our online WGAT Employer Resource Center (WERC) allows employers to view billing information, run reports, update records and view member eligibility in real time. Our HealthView system gives participants access to review claims status, request ID cards, look up providers, make a change of address, download forms and contact customer service to submit questions.

Health Management Programs. Because WGAT believes in keeping employees healthy and helping them avoid getting a disease that can be costly to both themselves and their employer, we include in every health plan the following health management programs, which are administered by our partner Pinnacle Health Management:

Mom-to-be Program. Program participants receive attentive and expert assistance throughout pregnancy, delivery and post-natal care. The program includes initial assessment of the expectant mom, welcome packet, 28-week check in, postpartum assessment and in most cases, a gift paid by the employer client. Other program features include having their own designated care management nurse, dedicated online resources on demand, periodical screenings, and a directory of specialists, pharmacists and nutritionists.

Nicotine Cessation Program. This program offers employees assistance with ending their nicotine dependence. Weekly health coaching, resources and tools, free medications, and financial incentives are included in this free and voluntary program.

Care Management Program. For participants who already have a chronic health condition, support is available through WGAT’s complimentary care management program. The program covers those with diabetes, high cholesterol, hypertension, asthma, depression and can help with pain management. Participants receive resources, guidance and for most conditions, discounts to medication co-pays. An added benefit to those in the care management program is Medication Responsiveness Testing. This complimentary testing determines which medicines are right for a patient and which to avoid depending on their unique body composition.

To find out how our comprehensive WGAT health plan can help keep your employees healthy and productive or if you have questions regarding your existing WGAT health plan, please contact a WGAT sales representative at (800) 333-4WGA.

 

 

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Attention “Small” Employers: You May Be a “Large” Employer and Not Even Know It

March 14th, 2019

New rules affecting the state minimum wage and the payment of overtime to agricultural workers have one important number in common—26. That is the number by which, for purposes of these laws, you are either a so-called “large” employer and pay a higher minimum wage and overtime after a lower threshold, or you are a “small” employer and can pay a lower minimum wage and no change to overtime, at least for awhile. But getting to 26 is easier than you might think—especially if you are a “small” employer that uses the services of a farm labor contractor.

Minimum Wage

Most employers with employees in California are aware that on January 1, 2019, the state minimum wage increased to $12.00 for employers with 26 or more employees. For employers with 25 or fewer employees, the state minimum wage increased to $11.00 per hour. These increases came about with the passage of SB 3, which raises the state minimum wage by $1 per year until it reaches $15.00 per hour in 2022 for employers with 26 or more employees. Employers with 25 or fewer employees hit the $15 mark in 2023.

The increased minimum wage also increased the minimum exempt salary that must be paid to meet the so-called “white collar” exemptions (i.e., executive, administrative, and professional). Employers with 26 or more employees must now pay the minimum salary for exempt employees of $49,920 per year. Employers with 25 or fewer employees can pay the minimum salary of $45,760 per year for exempt employees for now.

 

Ag Overtime

Beginning on January 1, 2019, AB 1066 took effect for “large” employers, again defined as employers with 26 or more employees. “Small” employers get a reprieve until January 1, 2022. The law, which Governor Jerry Brown signed in 2016, gradually lowers the daily and weekly hours of work thresholds for paying overtime to agricultural employees. And for the first time, weekly overtime now applies to “large” agricultural employers. This means that instead of overtime being payable for all hours worked after the sixth day in a workweek, overtime also kicks in after 55 hours in a week. Weekly overtime kicks in in 2022 for “small” employers.

The “rule of 26” also holds for the removal of the irrigator exemption. The exemption officially went away for “large” employers on January 1, 2019, while it remains intact for “small” employers until 2022.

 

Are You a “Large” Employer?

Both the minimum wage and overtime laws hold employers with 26 or more employees to stricter standards than those with 25 or fewer. Neither law uses the terms “large” employer or “small” employer, although these terms are convenient substitutes for “employers with 26 or more employees” and “employers with 25 or fewer employees” respectively. Neither law defines what employees are counted for purposes of being a “large” or “small” employer. Because “small” employers can pay a dollar less to meet the minimum wage and do not have to comply with the new overtime requirements until January 1, 2022, many employers that are on the bubble or fluctuate between “small” and “large” depending on the time of the year, or use farm labor contractors, are confused as to whether and when they qualify for small employer status under these laws.

The California Division of Labor Standards Enforcement (DLSE) has not provided any guidance on how it will interpret and enforce the changes to the overtime rules under AB 1066. However, DLSE did issue FAQs on the legislation that increased the minimum wage described above, which uses the same 26/25 employee cutoff. In its FAQs, DLSE noted the following:

•   While the minimum wage statute does not specify what timeframe to use when calculating the number of employees, a court or DLSE will likely focus on the pay period(s) in which the violation occurred.

•   All employees are counted, including exempt employees, regardless of hours worked or location.

•   The employer must make a reasonable and good faith determination of the size of their workforce recognizing that in the case of an ambiguity courts generally take the position most favorable to workers and that an erroneous decision to pay the lower wage could result in costly penalties and back pay awards.

•   Employers in a joint employer relationship need to aggregate and count the employees of all employees under the joint employer’s control.

•   Workers provided by a staffing agency or labor contractor should be counted.

•   If the number of employees fluctuates over 26 during any pay period, employees should be paid the higher wage for that pay period.

In addition, the FAQ stated that because employers are required by Labor Code section 2810.5 to provide workers a “Notice to Employee” upon hire and in advance of changes in the terms of their compensation, the employer must notify all affected employees in writing and wait until the next pay period before switching to a different minimum wage rate.

The Labor Commissioner’s SB 3 guidance, which is available at https://www.dir.ca.gov/dlse/SB3_FAQ.htm, would very likely be applied to analyze the changes introduced by AB 1066. Employers should review the FAQ when determining whether your company is a “large” employer for purposes of the new overtime requirements.

 

The “Integrated Enterprise” Test

Some employers have an interest in multiple companies. Are those employees aggregated for purposes of determining the minimum wage or overtime thresholds? In determining whether an employer with several companies is considered a “single employer” under California law, the employer will be scrutinized under the “integrated enterprise” or “single employer test.” Under this test, if two or more entities effectively operate as a single employer, they are generally treated as a single employer.

To make this determination, California courts look to a variety of factors, including:

•   Are the operations interrelated, such as by payroll, banking, HR functions, and the use of shared employees.

•   Is there common management who have control over the day-to-day operations and employment matters?

•   Is there centralized control of labor relations, such as the power to hire and fire, and control work schedules?

•   Is there common ownership or financial control?

While no single factor above is conclusive, the common ownership and control of labor operations are the most critical factors.

 

Conclusion

•   Employers who are “large” at all times are subject to the higher minimum wage and stricter overtime threshold, while “small” employers are not.

•   A “small” employer is considered a “large” employer during any pay period when its direct hire employees plus FLC-provided employees total 26 or more in the aggregate.

•   In any pay period where an FLC has a total of 26 or more direct hires, the FLC is considered a “large” employer for minimum wage and overtime purposes, regardless of where the FLC’s direct hire employees are working.

•   Even if the “small” employer’s direct hire employees plus the FLC-provided employees total 25 or fewer, if the FLC is itself is a “large” employer, the FLC-provided labor will be entitled to the higher minimum wage and overtime standards.

•   Consider whether employees of commonly-owned or controlled companies should be aggregated under the “single employer” theory.

•   Once your company reaches “large” employer status, the most prudent course of action is to consider your company a “large” employer at all times, even if the number of employees reduces to a level that would qualify the company as a “small” employer.

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Food Safety Efforts Underway to Create New Water Paradigm

March 14th, 2019

Between 2009 and 2017, FDA and their partners at the Centers for Disease Control and Prevention (CDC) identified 28 foodborne illness outbreaks of Shiga-toxin producing E. coli (STEC) in the United States with a confirmed or suspected link to leafy greens—an average of more than three outbreaks per year.

This eight-year period came on the heels of the 2006 E. coli O157:H7 spinach outbreak followed by the industry’s development and implementation of the initial leafy greens marketing agreement. Then in 2018, as the industry prepared for Food Safety Modernization Act (FSMA) compliance and inspections, additional E. coli O157:H7 outbreaks occurred that were linked by the FDA’s traceback investigations to Arizona and California’s desert growing region and California’s Central Coast. In each of these outbreaks, FDA deployed investigators to the regions and found the outbreak strains in the leafy green production environment. During the FDA’s environmental assessment conducted in response to the early 2018 outbreak associated with desert-grown romaine, three samples of irrigation canal water analyzed by whole genome sequencing were found to contain an E. coli O157:H7 strain with the same rare molecular fingerprint as the strain that produced human illnesses (the outbreak strain). These samples were collected from an approximate 3.5-mile stretch of an irrigation canal in the Wellton area of Yuma County that delivers water to several of the farms identified in the traceback investigation as potential shippers of contaminated product. Later in the year, another foodborne illness outbreak sent FDA investigators to California’s Central Coast where an irrigation reservoir was found to contain E. coli O157:H7 with a molecular match to the outbreak strain.

What links these two outbreaks, other than they are both associated with romaine, is that in each instance FDA found the same strain as the outbreak pathogen in water and sediment in the area of investigation. It cannot be said with certainty that the water contaminated leafy green crops. And we do not know how the water and/or sediment itself may have become contaminated. But these findings, coupled with a high potential for water of unknown quality to transfer pathogens if applied to a crop, have prompted both the FDA and industry to re-examine the preventive controls associated with water used in fresh produce operations.

It is well understood that water, if it contains fecal material and contacts edible portions of the crop, may contaminate leafy greens during production and harvest operations. Contamination may also occur by means of water-to-soil followed by soil-to-leafy greens contact. In its November 2018 letter to industry, FDA requested that we assess the need for updating and developing additional commodity-specific procedures, policies, and best practices to enhance leafy green safety. FDA specifically highlighted the importance of assuring that the agricultural water (ag water is defined as water that directly contacts the harvestable portion of the crop) used in production and harvest is “safe and adequate for its intended use.”

After assessing the need, industry groups have determined that change is necessary. United Fresh and the Produce Marketing Association have organized a task force to further review and assess issues associated with recent outbreaks while actively working to develop resources, which might manifest as white papers, guidance, recommendations, or other deliverables in several areas including preventive practices, labeling, traceability, investigation, and outbreak response. The task force includes many fresh produce supply chain members and is progressing as rapidly as their large structure allows them to deliver results.

Western Growers, recognizing that the Leafy Greens Marketing Agreements in Arizona and California are the quickest path to any implementation of new preventive controls, has been facilitating a process to develop new food safety practices and standards for adoption and implementation by industry. The facilitative process includes WG working directly with a small drafting committee to develop initial language and then asking broad industry for feedback on the drafts. As industry provides commentary and suggestions, WG works to incorporate that feedback and take it back to the drafting committee for its input. After cycling through this iterative process often enough to feel comfortable with a stable final draft, Western Growers will then hold an industry-wide webinar to explain the draft and take further input. Upon conclusion of those steps, Western Growers will take the proposed revisions to the Arizona and California LGMA Technical Committees that, in turn, will review the changes and, when comfortable, recommend adoption to their respective boards. If adopted by LGMA boards, the work will become the controlling language for all leafy green handlers engaged in the Arizona and California LGMA (the vast majority of the fresh romaine supply).

Because both FDA and industry have prioritized water as an issue that needs to be addressed, the current effort is to develop a new paradigm for water quality relating to food safety. In food safety programs commonly deployed by industry, water that is “safe and adequate for intended use” means that it meets or exceeds the standards for recreational water as measured by testing for generic E. coli and monitoring for shifts in baseline levels. Recent research and outbreaks have taught us there are inadequacies in the current ag water quality management strategies and that change is necessary. First, generic E. coli is inconsistent, and therefore ineffective, when used as the sole indicator for the presence of pathogens, such as E. coli O157:H7, in ag water sources. In addition, not all ag water from all sources are of equivalent food safety risk—a municipal source or a deep, protected well do not present the same risk as surface waters. Historically, we have attempted to account for the quality of water systems by testing water as close to the point of use as possible. But the manner in which water is stored and conveyed can be a significant contributor to the safety of the system and warrant separate assessment and evaluation. In reality, it is the water source + the storage of water + the conveyance system used that dictate the water’s ultimate “fitness for use.” Any new paradigm must consider all these factors, provide metrics to assist with their evaluation and spell out best practices to ensure system integrity.

The metrics currently being drafted and discussed are intended to prioritize risk by classifying ag water into two systems designated for specific uses within leafy greens operations. In essence, we are asking individuals to assess their water sources, storage, and conveyance and then categorize water systems as Type A or Type B.

A Type A system is one in which the source water is known to be free from fecal contamination (such as a municipal, regulated reclaimed, tested deep well or verified treatment supply) that is then stored and conveyed in a manner that does not expose the source to the outside environment. Water from Type A systems can be used in any irrigation scenario including overhead irrigation close to harvest.

A Type B system would essentially be all other water and its uses would be restricted. For example, a surface water source stored in an open reservoir and then pumped into a sprinkler set could not be used within 21 days of harvest. These are examples of how the water source + the storage + the conveyance must be fully evaluated to determine the “fitness for use” or that water is “safe and adequate for its intended use.” Of course, there is much more that must go into the development of a new ag water paradigm, but the high-level concept is sound. And incorporating industry-led changes into the LGMA requirements is the most effective way of changing practice in the field, which is what many are trying to do.

This raises the final point of concern: It is not ideal to move into siloed activity to address these outbreaks and improve our preventive programs. As a result of the most recent outbreak, the United/PMA Task Force has been created, regional groups have formed to address issues, and select parts of the supply chain have grouped together to suggest change. In the spirit of “hang together or hang separately,” it seems a better model should be developed and institutionalized going forward. In recent discussions the concepts of a “strike team” or a National Transportation Safety Board-style team has been offered, and I suggest this could be as simple as organizing a standing group of association leaders representing all aspects of the supply chain that meets and coordinates action every time there is an outbreak. It is an extra and unneeded chore to try to coordinate all the siloed efforts underway today. As trade organizations, I proposed that when it comes to consumer safety, we get over our need to individually demonstrate value and come together to make a difference for the industry and the consuming public that we serve.

 

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Grower’s Secret Good For Business, Good for the Earth

March 14th, 2019

After stumbling upon an edible mushroom farm in Maui in 1995, two great friends, Bryan Hiromoto and Wesley Chun, embarked on a journey that would result in the development of a compound that would significantly stimulate plant growth.

Hiromoto and Chun identified several species of mushrooms that produced nematicidal compounds. One mushroom was found to produce a compound that accelerates plant growth. This jumpstarted their research into creating a substance that drastically changes the way plants develop. Three years later, a research team known as Advanced Biological Research, LLC, (also referred to as ABR which is an acronym for Albert Pleus, Bryan Hiromoto and Randy Harve) was formed to produce mass amounts of this product.

After acquiring success, ABR then partnered with Chaz Berman, now CEO of Grower’s Secret, to commercialize their product in 2010, changing their anchor product’s name to Grower’s Secret Professional (GSP). GSP is a plant growth enhancer, also known as an organic bio-stimulant, capable of increasing the measurement of crops by at least 30 percent.

To be more innovative, Grower’s Secret began experimenting with a process called hydrolysis, which is a chemical breakdown of a compound after it reacts with water. The result of this process was the creation of GSP’s product Grower’s Secret Nitrogen, which contains amino acids necessary for plants to make protein. After using this product, it is no longer necessary for plants to use their energy to create amino acids, allowing the plant to use that energy for other tasks such as growing bigger and increasing production.

Grower’s Secret joined the Western Growers Center for Innovation & Technology (the Center) about a year ago and has already formed strong relationships with other residents. According to Berman, the Center has afforded Grower’s Secret the opportunity to connect with companies who they may not have formed relationships with otherwise.

“We have been a great supporter of the next phase of the Center” said Berman. “Farmers are willing to do testing [with startups] in the Center, but it is a difficult process so we are thankful that the Center helps guide us. We are very excited to be a part of this effort and participate.”

With the support of Western Growers, Berman believes this testing will be meaningful in that it will provide farmers with trustworthy results. By continuously developing relationships within the agriculture industry, Grower’s Secret plans to bolster its distribution network. Strengthening its network consists of catering to farmers and distributors and assisting them with viable solutions to their problems. One initiative they are working on is to partner with other ag-tech startups to assist in gaining sales traction. The goal is to build a relationship with startups strong enough to potentially combine companies corporately.

Due to its success with its anchor product, Grower’s Secret has expanded its line of products, catering to both organically and conventionally grown crops

 

Grower’s Secret Products

•   Organic Earth Emulsion 2-3-3  Earth Emulsion is a 100% plant-based fertilizer. After extensive testing for more than two years on over 15,000 acres of field and row crops, the company says Earth Emulsion has proven to be just as effective as fish fertilizers. It contains Grower’s Secret best-selling product “Grower’s Secret Professional.” It is an easy to clean product that can be applied as a foliar treatment or through irrigation systems.

•   Grower’s Secret Nitrogen 14-0-0/16-0-0  Grower’s Secret Nitrogen is a soy-based product proven to help plants grow quickly, increase seed and fruit production and improve plant quality and appearance.

•   Organic Soluble Seaweed Powder 0-0-16  Grower’s Secret Soluble Seaweed Powder provides farmers with the ingredients needed to improve crop quality and promote balanced growth.

•   Grower’s Secret Professional  Grower’s Secret Professional is an organic plant growth enhancer made from mushrooms and fruit juices. When combined with plant fertilizers and supplements, it has the ability to optimize crop performance and increase uptake efficiency.

•   VitalVit Micro Nutrients  VitalVit is a combination of minerals and nutrients designed to balance soil and plant chemistry.

•   Soluble Corn Steep Powder 7-6-4  Soluble Corn Steep powder is a corn steep liquor derivative designed to support abundant root formation and soil microbial activity.

Grower’s Secret has been honored as one of the top 100 impactful companies of 2019 by Real Leaders. Starting with a mushroom and fresh fruit juices, the firm believes it has revolutionized farming, providing farmers with products that will increase yield across most crops making it easier for them to continue to feed the world.

 

 

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WG Industry Relations Manager Taking SJV by Storm

March 14th, 2019

Unlike many others working in the agriculture industry, Matt Jones was not born into a family of farmers. Though born and raised in Salinas, known as the “salad bowl of the world,” Jones was not raised in the fields. However, he vividly remembers his father working for various ag-related businesses, including Western Growers in the late 1970s and early 1980s.

After earning his bachelor’s degree in agricultural business at California State University, Fresno, Jones began his career with Kroger where he was able to gain extensive knowledge in the produce industry as a produce inspector, transportation manager and senior commodity buyer. While with Kroger, he established a solid network of contacts in the industry and procured more than 100 different commodities, while juggling other responsibilities.

When asked what he enjoys most about working in the agricultural industry, Jones responded, “The fast-paced nature of the business. It’s always changing! You never stop learning in this industry. What’s most fascinating is the evolution of commodity markets and what it takes to keep track of the changes.”

Jones joined the Western Growers Membership team as industry relations manager in October 2018, making him the first and only person with this unique title at the association. In this role, he is the point of contact for both Central Valley members as well as prospective members, providing them with Western Growers resources to support their needs.

Additionally, being based in Fresno, he is easily accessible to a majority of Western Growers members as he is a close drive to most of California’s specialty crop production regions. He has made it a mission to not only expand membership, but to retain existing members, making sure they are happy with the services they receive. During his first two months with Western Growers, Jones met with more than 50 existing members and worked diligently to recruit more.

“Matt’s extensive experience in the produce industry and exceptional ability to connect and understand the challenges our members face, make him the perfect addition to our team” said Kim Sherman, Western Growers’ director of membership. “His presence in the Central Valley has provided our members, in the Central Valley area and surrounding areas, with direct access to the services and support that will allow them to continue to feed the region, nation and world.”

With just over four months at the company, Jones continues to exceed expectations. His commitment to the growth of the association is displayed through his hard work. He said one of the most rewarding parts of his job is knowing he is providing quality services to members, enhancing their competitiveness and profitability and contributing to their success. As a veteran in the industry with a substantial amount of knowledge, Jones understands there is plenty more to learn, not only about the association but about the members as well.

“I am extremely proud and honored to be a part of the Western Growers team,” he said. “The company’s employees are all first class and this organization is well represented with a trusted brand for 92 years. I have a passion for produce and the industry relations manager position allows me to network, build relationships and make a difference with growers within all fields of the produce industry.”

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Technology Driving Innovation at RDO

March 14th, 2019

Whether an early adopter or among the last to join in on the latest technology offering, few can argue against the overwhelming benefits it continues to offer the agriculture industry.

From the simplest in-cab control upgrades to advanced systems for automation, data management, and remote machine monitoring, technology advancements are constantly coming from one end of the spectrum to the other—and everywhere in between.

While the ongoing opportunities offer many advantages to growers, they also present them a major challenge—trying to keep up with ever-changing and ever-evolving technology. As one of the largest dealers of John Deere agriculture equipment and precision agriculture solutions, RDO Equipment Co. has a unique commitment to technology and helping customers successfully implement it in their business.

 

A Team of Experts

More than 50 years ago, RDO Equipment Co. began as a single dealership in the farming community of Casselton, ND. The company now owns and operates more than 75 stores across nine states, selling and supporting, not just agriculture equipment, but construction, environmental, irrigation, positioning, and survey equipment and technology as well.

As the company has grown and diversified to better partner with customers, the precision agriculture team and support piece has expanded right alongside.

Today, the RDO Equipment Co. team includes precision products specialists, agronomists, and agriculture technology support professionals. These teams are committed to staying up-to-date on the newest precision agriculture offerings, to communicating with growers on how to implement these opportunities for success, and to being knowledgeable to provide complete support, from initial training and setup to ongoing troubleshooting and service.

 

Why This Focus?

When it comes to technology, RDO Equipment Co. believes it has a unique responsibility, both to customers and to sustainable agriculture. With the global population expected to rise to 9.7 billion by 2050, the company believes technology in agriculture equipment will be crucial to increasing productivity and yields to feed the world’s rapidly-growing population. This belief is also a driving force behind RDO Equipment Co.’s support of the Western Growers Center for Innovation & Technology.

“Precision agriculture is the future of our industry,” said Nate Dorsey, RDO’s agronomist and product specialist supervisor in the company’s southwest region. “As a business, we need to remain on the cutting-edge of technology and we want to be part of the solutions that can help growers.”

Key to the company’s technology focus is its proactive approach. For example, the team organizes field days for growers to see demonstrations and receive hands-on learning prior to adopting new solutions. The precision product specialist team also offers machine set up, calibration, and training prior to the start of the season—in some cases, months in advance—to ensure growers are best positioned for success.

“Planting, spraying, harvest, it all has to happen in relatively tight windows of time,” Dorsey said. “By being proactive in our approach, customers and their machines are ready to go so they can operate within those timeframes rather than trying to figure it out as they go.”

RDO also embraces technology opportunities to provide proactive support in-season. John Deere, for example, offers machine support by leveraging the connection to the machine, made possible by JDLink. The Customer Support team works closely with this technology to identify potential issues, provided remote solutions, and help customers avoid unplanned downtime.

 

Creating Connections

Technology presents growers opportunities to prevent yield loss and optimize their operations. In addition to sheer excitement for the direction precision agriculture technology continues to go, Dorsey said RDO is in a unique position to be a leader in the space—one that he’s proud to see the company embrace.

“We’re not a manufacturer or designer, but we’re at the next level,” he said. “Equipment manufacturers need dealer partners with knowledge and training in technology opportunities to sell and support it. We connect the growers and the technology, that’s the loop we help close.”

Whether it’s a data management solution to make better decisions for the year ahead or a machine feature designed to make an in-season task more effective, the company is committed to being up-to-date and knowledgeable on equipment technology, to better partner with growers and ensure they receive the best solutions and support.

RDO Equipment Co. has locations in Arizona and California, in agricultural communities including Imperial, Salinas, Santa Maria, and Yuma. Find the one nearest you, or learn more about technology offerings for your equipment and business by visiting www.rdoequipment.com.

 

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Posted in WG&S Magazine, March / April 2019 Issue | No Comments »

Ag Employers, Employee Benefits, and Western Growers

March 14th, 2019

As a person who grew up in an agriculturally diverse area of Washington state and who spent every summer working in the fields and packing houses in the late ‘70s and early ‘80s earning money for school clothes and my horse hobby (a hobby my dad tried and failed spectacularly to avoid), the amount of change that has happened in agriculture between then and now is incredible.

Like many other industries, increasing specialization and embracing technology in agriculture to remain competitive and profitable has fueled the sometimes slow, yet steady march forward. Now, we see specialists of all kinds bringing forth robotics, phone apps and other new technology solutions to help agriculture.

For the past four and a half years, I have had the distinct pleasure of serving agriculture employers exclusively by joining the Western Growers Insurance Services benefits team. After more than 25 years in many different areas of healthcare and employer group benefits, it is very rewarding to listen, learn and find solutions for growers, packers, shippers and many other agriculture-related employers. Much like technology and specialization out in the fields, employee benefits has also made a sometimes slow, yet steady march forward in the specialization and technology space. One of the things that has not been slow, however, is the cost of healthcare, which drives up the cost of employee health benefits to both employers and employees. There seems to be no end in sight—and has been going on for decades. Enter Western Growers to help our members, since 1957.

The expenditures for health benefits is not only significant in terms of the company’s bottom line—usually the number two cost item behind payroll—but is the number one purchase employers make in terms of having a deeply personal impact on the employer’s valued employees.

Access to quality healthcare is as personal as it gets. No matter how much technology and specialization intersect, this one fact will not ever change. This is the one area where the decision as to which partner broker and carriers an employer chooses for its employees extends well beyond just price and a transaction. The decision travels into the realm of value, service, improved employee relations, healthful living and financial protection…all of which should be of high importance to employer and employees alike. A truly integrated, well-designed benefits package drives so much more than just what is seen on the surface.

Serving ag is all we at Western Growers Insurance Services do. We are the ag benefits specialists providing our deep expertise in both benefits AND in agriculture to more than a thousand ag employers so they can rest assure that their benefits package decisions are based on the employer’s specific challenges, company goals and their employees’ need. All the while, yielding the best value for every dollar spent. We provide these services in a transparent, educational, clear and ethical manner. Knowledge is power, after all, and helps drive the right decisions for every employer I work with, whether that employer has just a few employees or a thousand employees.

Recently, I was able to help an employer consolidate many different services available through Western Growers Insurance Services/Western Growers Assurance Trust including their benefits package for medical, dental and vision. The result included full COBRA administration, full FSA (flexible spending accounts) administration, and consolidated billing and eligibility for multiple carrier services, SPD (Summary Plan Description) development, and non-discrimination testing. This made for a powerful, easier-to-administer suite of services for an employer who stated they really wanted to simplify, and all at a better price point than the employer and its employees were previously paying. We also recently conducted a robust Health Fair for this employer at no extra cost. We also provide ongoing, bilingual on-site servicing to keep employees informed about their plans and networks, answer questions and resolve issues expediently. Simply put, we have capabilities that are hands-on for the employer, promote employee engagement, and have few layers for employers to wade through in administering their benefits programs.

As we enter 2019, if you’d like to find out more about Western Growers Insurance Services, Western Growers Assurance Trust, or any of the other ag-centric services we provide our clients and how we can help your business and its employees, please feel free to reach out to me directly at [email protected] or (831) 578-9294.

 

Editor’s Note: Tami Glover was a recipient of the 2018 Top Benefits Producer Award and 2018 Top Producer of the Year Award. Dedicated to serving Salinas, Tami is a resource to Western Growers members for all their benefits and insurance needs.

 

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Western Growers Retirement Security Plan

March 14th, 2019

 

Western Growers Retirement Security Plan

The diversification, cost efficiencies and robust technology offered by the Western Growers Retirement Security Plan (RSP) gives it a competitive edge in the 401(k) industry. Based on the following three key metrics, Western Growers members may want to compare and contrast their current 401(k) plan with what can be offered by the Western Growers RSP.

Investment Choices

There are 19 investment options in the Western Growers RSP ranging from conservative money market and guaranteed investment contracts to individual sector selections such as energy, emerging market and technology funds. While some large 401(k) plans offer employers up to 80 different mutual fund choices, this many options may overwhelm participants and confuse them on how to allocate their retirement funds.

Most traditional 401(k) funds only offer mutual funds. Not only does the Western Growers RSP offer traditional mutual fund options (currently nine diversified sector funds), we also have six exchange traded index funds (ETFs) that offer passive investment options with very low expense ratios.

In addition to mutual funds and ETFs, the Western Growers RSP also provides employers and their participants four separate account manager options. While not new to the 401(k) industry, separate account managers have historically only been available to employers with plan assets greater than $50 million. Since the Western Growers RSP currently represents 29 employers with over $80 million in assets, we are capable of adding institutional separate account options. Our investment firms have decades of experience and focused sector disciplines like large capital growth and dividend growth strategies, which are also low in cost.

Since we are familiar with the agriculture industry, we are aware that employers have a diversified range of employees, from ownership to office to field staff. Not all employees are alike or have equal investment knowledge or experience, which is why we offer an investment default option that is a “fund of funds.” By selecting this option, it not only takes the guesswork out on how to allocate their 401(k) dollars for participants, but also offers a level of protection for employers. Under Internal Revenue Code Section 404(c), employers must provide a “Qualified Default Investment Alternative” on their 401(k) plans, which gives employees one option they can select that is diversified in investments but also low in fees. We have this as an option on our Western Growers RSP.

 

Cost Efficiencies

Because of its size and scale—the Western Growers RSP has a large asset base with multiple employers and nearly a thousand participants—we keep the fees paid by both employers and participants low. Typical 401(k) plans for employers with fewer than 100 employees could end up costing 1.5% or more on retirement assets of $5 million or less. For those employers looking to “start-up” a 401(k) plan for the first time, the fees could range much higher after audit, insurance and administration.

Since the Western Growers RSP qualifies as a group trust, employers can come into our plan and adopt the same available investment options and fee structure without the large costs associated with implementing a 401(k) plan. The current dollar-weighted investment expense ratio, administration, operating fees and custodial fees are less than 0.90%. While these fees represent all of the expenses incurred for the plan, depending on how they choose to allocate their investment selections, participants who take a passive indexed approach could actually see their expenses much lower than 0.90%.

 

Technology and Administration

Our Third Party Administrator (TPA) for the Western Growers RSP is OneAmerica, one of the largest retirement plan TPAs in the county. OneAmerica operates a robust, technologically-advanced website platform with numerous features for employers and their participants, such as future rate of return and personal rate of return calculators. Additionally, OneAmerica provides our employers with individual relationship managers who are responsible for handling your 401(k) plan queries and questions. Western Growers, along with OneAmerica, also provides bilingual enrollment meetings and a 1-800 number for those employees who may not have individual access to the internet during normal business hours. All customer service representatives are bilingual.

For more information about the Western Growers Retirement Security Plan, or to compare your current 401(k) plan with our offerings, please contact Matt Lewis, President of Western Growers Financial Services, at [email protected] or (949) 885-2379.

 

 

 

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Kale Latest Crop Targeted on EWG’s Dirty Dozen List

March 22nd, 2019

The Environmental Working Group (EWG) named kale as one of the most pesticide-contaminated vegetables in their recently-released “Dirty Dozen” list. This list, which is released annually, is designed to make consumers fearful of fresh produce and misleads the public about pesticide residues.

The “Dirty Dozen” list has been discredited by scientists repeatedly over the years, and peer reviewed studies show that EWG’s message potentially discourages consumption of healthy and safe organic and conventional fruits and vegetables.

As reported this week by the Alliance for Food and Farming (AFF), here are some facts about the list that underscore why both conventional and organic produce should be consumed with confidence:

  • Arbitrary Methodology: According to Dr. Carl Winter, toxicologist, University of California, Davis, “This year’s EWG list is produced using the same arbitrary methodology the EWG has used in the past. Most importantly, the EWG focuses upon the presence (or absence) of pesticide residues in its methodology and public statements rather than on the actual amounts of pesticides detected, which are extremely low. To accurately assess consumer risks from pesticides, one needs to consider three major factors – 1) the amount of residue on the foods, 2) the amount of food consumed, and 3) the toxicity of the pesticides. The methodology used by EWG ignores all three.”
  • Meet Organic Standard: Did you know that the vast majority of conventionally grown produce tested by United States Department of Agriculture could qualify to be labeled “organic,” specific to their residue levels? It’s true. The USDA allows organic produce to have residues that are “less than 5% of EPA tolerances” and the majority of residues found on conventionally grown produce are below this level. This nicely illustrates how low residues are, if present at all.
  • You Can Eat A Lot of Kale: If you are concerned about residues on kale you would have to eat a lot more each day to see any health effects. In fact, a man would have to eat 26,061 servings in a day, a woman 18,615 servings, a teenager 14,892 servings and a child 7,746 servings in a day and they still would not have any health effects from residues. This is according to an analysis by toxicologists with the University of California’s Personal Chemical Exposure Program. 

As part of an ongoing commitment to disseminate correct facts about fresh produce safety, Western Growers worked closely with AFF to produce a video featuring the popular residue calculator section of safefruitsandveggies.com. The video is available on Western Growers’ Facebook page and below. 

[VIDEO::https://www.youtube.com/watch?v=u4Pt9ppSME0::aVideoStyle]

 

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Western Growers Hires Human Resources Veteran Anna Bilderbach to Lead Training Programs

March 26th, 2019

IRVINE, Calif. (March 26, 2019) – Western Growers is proud to announce the recent hire of Anna Bilderbach, who will serve as the Learning and Development Manager on the Human Resources team. Bilderbach brings more than two decades of experience in HR-related training. In her role as Learning and Development Manager, Bilderbach is responsible for conducting all training for Western Growers member farmers and the agricultural community, in both English and Spanish. Additionally, she will be supporting the learning and development initiatives within the Western Growers.

“Anna is such an incredible addition to our human resources team,” said Karen Timmins, Senior Vice President of Human Resources. “Her extensive background in both customer relations and human resources has awarded her with the perfect skillset to continue pushing forward Western Growers’ mission of advancing the agriculture industry by providing the training services and resources our farmers need to thrive.”

Having extensive experience in Financial Services, Non-Profit and Manufacturing as a career coach, project manager and trainer, Bilderbach has perfected her abilities to coach and develop talent in both small businesses and large corporations. Additionally, she has a proven track record of increasing organizational effectiveness, improving healthy company cultures and helping employees better improve customer experiences.

“My training and background in Training/HR/Organizational Development has allowed me the opportunity to work with the entire employee life-cycle, from hire to retire.” said Bilderbach. “I’m truly excited and eager to be of service to our members and the team here at Western Growers. At the end of the day, my job is going to help employees engaged in agriculture develop personally and professionally, which is a win-win in my book.”

Bilderbach received academic training at the University of California, Irvine, in Human Resources Management. She also studied business at Riverside Community College.

High Resolution image of Anna Bilderbach here.

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

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WG Announces the Recent Hire of Anna Bilderbach to Lead Training Programs

March 26th, 2019

Western Growers is proud to announce the recent hire of Anna Bilderbach, who will serve as the Learning and Development Manager on the Human Resources team.

In her role as Learning and Development Manager, Bilderbach is responsible for conducting all training for Western Growers member farmers and the agricultural community, in both English and Spanish. Additionally, she will be supporting the learning and development initiatives within the Western Growers.

Having extensive experience in Financial Services, Non-Profit and Manufacturing as a career coach, project manager and trainer, Bilderbach has perfected her abilities to coach and develop talent in both small businesses and large corporations.

CLICK HERE TO READ FULL PRESS RELEASE.

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