AMS Releases 2019 User-Fee Rates for Voluntary Fruit, Vegetable and Specialty Crop Services

May 2nd, 2019

The U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) has released the 2019 rates for voluntary fruits, vegetables and specialty crop services. The rates include pricing for voluntary grading, inspection, certification, verification and laboratory services for a variety of agricultural commodities. These services ensure the quality and availability of produce for consumers nationwide.

These new rates go into effect on October 1, 2019, and have been published in a Federal Register Notice.

On November 13, 2014, the USDA published a final rule in the Federal Register that established standardized formulas for calculating the fees charged by AMS user-funded programs (79 FR 67313). Since then, AMS has published the user fee rates through a unified process for setting fees across all of its voluntary user fee programs.

For more information, please contact Tracey Chow at (202) 296-019.

US-Mexico Tomato Suspension Agreement Terminated, Imports to Face 17.5% Duties

May 9th, 2019

On May 7, the U.S. Department of Commerce announced the termination of the U.S.-Mexico tomato suspension agreement. This follows its initial notice of intent to withdraw from the agreement back on February 6, 2019.

In response to a petition requesting an antidumping investigation of Mexican tomato imports, an agreement was reached in 1996 between the two countries that set minimum price floors on imports during certain months of the year. As such, the agreement and its subsequent updated versions have ‘suspended’, or halted, the investigation. Since November 2018 there has been a push to terminate – primarily driven by Florida growers, although frustration with the agreement is echoed by other domestic producers in California, Michigan, and New Jersey.

 With the agreement’s termination, an investigation by the Department of Commerce, as well as one by the International Trade Commission, will resume. It is tentatively expected that final determinations should be reached by November 2019. Negotiations between Mexico, the United States, and their respective growers will also continue to potentially reach a new agreement, with domestic growers seeking stronger enforcement mechanisms and tightening of alleged loopholes.

Importers of fresh Mexican tomatoes should expect to see a preliminary 17.5 percent antidumping duty tacked onto all imports in the coming days. The importer of record must also maintain a continuous customs bond, which guarantees to Customs and Border Protection (CBP) that the importer will pay any additional duties. Any deposits collected by CBP will be refunded if a revised agreement is reached, or if the investigations find no unfair pricing or injury. It should also be kept in mind that, if or when a new agreement is reached, an additional 30 days will be needed to allow for public comment.

More information on CBP’s processes can be found here.

Export 101: HEED CAUTION with Non-Government (Private) Inspection and Survey Reports

May 1st, 2019

“We are a shipper that exports product overseas and to Canada. We sometimes receive survey reports or inspections from the ocean carrier or other third party abroad.  Will these private inspections hold up in a PACA action?”

Third party surveys or non-government inspections must meet certain criteria in order to be considered as evidence of the condition and quality of the product at contract destination.  PACA would look for the following criteria in determining whether or not to accept a foreign survey as supporting evidence of the condition of the product upon arrival:

  1. An adequate sampling taken by the surveyor providing a snapshot of the entire load
  2. Documented pulp temperatures as well as percentages and a thorough explanation of USDA-recognized condition defects.

Note: Should the survey lack any one of these items, the survey may be ruled as inadequate evidence for the purpose of determining if the load meets contract terms and may result in the PACA rejecting the survey or non-government inspection report as suitable evidence in a PACA reparation proceeding.

In Canada, The Fruit & Vegetable Dispute Resolution Corporation (DRC) will not recognize private inspections when adjudicating DRC complaints unless both seller and buyer have agreed that a private inspection will be acceptable. Shippers should always insist on a Canadian Food Inspection Agency (CFIA) inspection when determining quality and condition of your product. Because of streamlined efficiencies, the CFIA has inspectors available to perform timely inspections in both the Toronto and Montreal markets. The CFIA has stringent performance measurements connected to turnaround time and written procedures to follow when performing and submitting a written summary of the inspection, thus making it unnecessary in almost all circumstances to seek a non-government inspection alternative.

Shippers should always determine the upside benefit, if any, of acquiescing to a non-government private inspection service in Canada.

So when you have an export shipment, in which you invoiced a PACA licensee and the buyer is submitting a foreign survey report, make sure the inspection document has the key provisions of pulp temperatures and sufficient sampling percentages for condition defects that are consistent with the USDA protocols. If the survey is missing any one of the mentioned requirements, the entire survey could be inadequate evidence in a PACA reparation proceeding. Additionally, non-government private inspections are only recognized in a DRC action when both parties mutually agree and is memorialized through a signed contract.

I encourage you to review all inspections closely and should you have any questions or concerns regarding USDA inspections, The Canadian Food and Inspection Agency, Survey Reports or private inspections please contact Western Growers Trade Practices Department’s Bryan Nickerson at [email protected] or office at 949-885-2392.

Do you have a unique blog idea that hasn’t been covered? Please email your idea to [email protected] for a chance to win a $25 gift card! Winner will be announced in the next blog published June 1, 2019.

WG Creates Roadmap to Accelerate Automation during Work Session

May 2nd, 2019

Western Growers held an automation work session at its headquarters in Irvine, CA, yesterday to create a roadmap for accelerating the pace of automation in agriculture. During the event, nearly 30 growers, agtech entrepreneurs, venture capitalists and leaders from technology companies collaborated on strategies and tactics to make the integration of automation more accessible to farms of all sizes and crops.

“Planting the old fashion way is not an option anymore,” said Drew Ketelson of HMC Farms, remarking on how growers must think outside the box to accelerate automation. “It’s this or bust.”

The group also addressed how to effectively and efficiently develop automation solutions that will meet the needs of specific commodities – everything from grapes and broccoli to melons and stone fruit. AgTech stakeholders from New Zealand and the Netherlands, with whom Western Growers holds strategic partnerships, also participated remotely to share how they are boosting technical development and application in their respective countries.

This working session was the latest development in WG’s newly-launched Automation Initiative, an industry-led initiative designed to accelerate field automation progress with a primary focus on field harvesting. For more information about the initiative, contact Dennis Donohue at (831) 594-4883.

Latest Advancement in Food Technology Revealed at Forbes AgTech Summit 2019 – Register Today to Save

May 21st, 2019

Technology in agriculture is advancing faster than one could possibly imagine. Register today for the Forbes AgTech Summit, held in Salinas on June 26-27, to stay on top of cutting-edge agricultural technologies and anticipate revolutionary changes in the food system.

As part of the strategic partnership Western Growers has developed with Forbes, all WG members will receive a substantial discount to attend the event when registering at http://bit.ly/AgTechWG and selecting the ticket type: Forbes AgTech Summit – Salinas Partner Rate.

During the Summit, guests will be introduced to the latest technology startups-to-watch within the global agricultural ecosystem and hear insights from prominent speakers who will explore topics at the heart of technology, entrepreneurialism and agriculture.

WG is working directly with Forbes to organize several show-stopping programs during the event:

STATE OF AG KEYNOTE ADDRESS

Tom Nassif, WG’s president & CEO, will kick off the conference with a keynote speech during the opening reception. The former U.S. ambassador will provide a fresh, new perspective on global agriculture as it relates to technology and discuss how current events will impact the future of food.

INNOVATION SHOWCASE

For the second year in a row, WG will be sponsoring the Innovation Showcase, where cutting-edge startups will be exhibiting their technologies. Throughout the showcase, you will see live demonstrations and have the opportunity to speak directly with the who’s who of agtech, as they pursue solutions that will help solve agriculture’s most pressing issues, including labor shortages, challenges surrounding water supply and quality, food safety and more. Plus, many of the startups working out of our WG Center for Innovation & Technology will be featured!

SMARTER TECH, SAFER FOOD PANEL

WG is developing a frank discussion on what the future food safety systems must look like as we work to address shifting environmental changes and consumer preferences, and an increasing global food chain. Our star-studded panel will speak to the challenges inherent in today’s food safety paradigm and culture, as well as provide key insight on how can we use technology to better ensure that food is properly regulated and safe to eat around the world.

For additional conference details, visit the Forbes AgTech Summit webpage. Contact Hank Giclas at (949) 885-2205 for questions about the Innovation Showcase.

CLICK HERE TO REGISTER FOR FORBES AGTECH SUMMIT TODAY

EPA Glyphosate Update

May 23rd, 2019

On April 30th, the U.S. Environmental Protection Agency (EPA) announced their Proposed Interim Registration Review Decision for glyphosate, an integral step in the registration review process. EPA has identified no risk to public health when glyphosate is used in compliance with its current label, but ecological risk were identified following the 2017 ecological assessment. The following EPA responses contains several key comments:

“The EPA conducted an independent evaluation of the carcinogenic potential of glyphosate and has determined that glyphosate is ‘not likely to be carcinogenic to humans.’ The agency’s cancer classification is based on a thorough weight-of-evidence review of all relevant data and is in accordance with the agency’s 2005 Guidelines for Carcinogen Risk Assessment.”

“EPA’s cancer evaluation is more robust than IARC’s evaluation. IARC’s evaluation only considers data that have been published or accepted for publication in the openly available scientific literature. As a result, IARC only considered a subset of the studies included in the EPA’s evaluation.”

“The Agency’s cancer evaluation for glyphosate is also more transparent. EPA’s draft cancer evaluation was presented to a FIFRA SAP for external peer review. EPA solicited public comment on the carcinogenic potential of glyphosate as part of the SAP process, which is well-documented with an agenda, transcript, meeting notes, and final SAP report. EPA responded to the SAP report, addressed panel recommendations, and made revisions to its cancer assessment that were transparent and provided to the public. EPA also solicited public comment on its full human health and ecological risk assessment for glyphosate in February 2018. In contrast, IARC meetings are not accessible to the public. Its deliberations are closed, its process does not allow for public comments to be submitted for consideration, there are no materials provided in advance of the meeting, and IARC’s reports are final without an external peer review.”

“The EPA has not identified any new information received during the public comment period which ended on April 30, 2018 that would result in changes to the conclusion of its cancer assessment. The agency’s cancer conclusion is consistent with other regulatory authorities and international organizations, including the Canadian Pest Management Regulatory Agency, the Australian Pesticide and Veterinary medicines Authority, the European Food Safety Authority, the European Chemicals Agency, the German Federal Institute for Occupational Safety and Health, the Joint FAO/WHO Meeting on Pesticides Residues, the New Zealand Environmental Protection Authority, and the Food Safety Commission of Japan.”

Click here to read the Proposed Interim Registration Review Decision for Glyphosate.

Click here to read the responses to Comments on the Human Health Draft Risk Assessment for Glyphosate

Click here to read the responses to Comments on the Ecological Draft Risk Assessment for Glyphosate

Click here to read the responses to Comments on the Usage and Benefits of Glyphosate

New Water Management Standards for Leafy Greens

May 7th, 2019

On April 19, 2019, the California Leafy Green Marketing Agreement (California LGMA) adopted a new approach to manage agricultural water safety through the implementation of new agricultural water best practices for leafy green production and harvest.

Western Growers (WG) partnered with the leafy green industry to facilitate this effort. After several months of working with industry members and academic advisors to formulate the best practices, these new agricultural water management practices were accepted by the California LGMA and have subsequently been shared with the Arizona LGMA for their consideration. The final version of the revised water section is now incorporated in the guidelines. They can be accessed here.

 “There has been a comprehensive effort to include input from growers, handlers, academic and regulatory experts over the course of the last few months that has resulted in a paradigm shift in best practices for water used during production and harvest of leafy greens,” said WG Senior Vice President of Strategic Planning, Science & Technology Hank Giclas on the process and changes to the best practices. “No longer are all water systems considered the same and appropriate for every use; now complete water system assessments must occur to determine when and where certain waters may be utilized.” 

The new best practices target overhead irrigation, with changes focusing on the increased risk related to direct crop and water contact during the latter stages of production. New metrics require a complete system assessment (water source, distribution system and method/timing of use), along with more robust sampling requirements and more stringent microbial standards for waters applied directly to the edible portion of the crop within three weeks of a scheduled harvest. Additionally, if overhead irrigation water is sourced from surface water sources or any part of the irrigation system is open to the environment, growers will be required to treat the water with an antimicrobial treatment when irrigating overhead in the final three weeks before harvest.

WG worked with longtime partner and industry expert, iDecisionScience, LLC to facilitate this effort. WG is reviewing its annual amendment process to continue to support the leafy green industry in enhancing the leafy green food safety guidelines utilized by the Arizona and California LGMAs.

 

WG Members Receive Discount for PSA Growers Training

May 9th, 2019

Western Growers (WG) is hosting a Produce Safety Alliance (PSA) Growers Training Course. This course is one way to fulfill the Food Safety Modernization Act (FSMA) Produce Safety Rule requirement, which states that “at least one supervisor or responsible party for your farm must have successfully completed food safety training at least equivalent to that received under standardized curriculum recognized as adequate by the Food and Drug Administration.”

Trainers will discuss produce safety best practices, outline key parts of the FSMA Produce Safety Rule requirement, and cover topics including the following:

  • Worker Health, Hygiene, and Training
  • Wildlife, Domesticated Animals, and Land Use
  • Postharvest Handling and Sanitation
  • How to Develop a Farm Food Safety Plan
  • Soil Amendments; and Agricultural Water

Members of Western Growers will receive a discounted price.

Event Details

PSA Grower Training- Bakersfield

Date: June 13, 2019

Location: Training Center at PAS Associates

1401 19th Street

Bakersfield, CA 93301

Cost:  WG Members: $275.00

Others: $350.00

Trainers:

  • Sonia Salas, Western Growers
  • Donna Pahl Clements, Produce Safety Alliance

Registration Details: CLICK HERE TO REGISTER

Registration includes training materials and certificate, light breakfast, snacks and lunch.

Western Growers Statement on California DPR Ban on Chlorpyrifos

May 9th, 2019

IRVINE, Calif., (May 9, 2019) — In response to yesterday’s announcement that the California Department of Pesticide Residue (DPR) is acting to ban the use of the insecticide chlorpyrifos, Western Growers President and CEO Tom Nassif issued the following statement:

“California farmers are universally committed to the safety of their food, the health of their workers and communities, and the sustainability of their land. At every turn, they strive to achieve efficiencies in their use of resources like water, fertilizer and pesticides, and seek to minimize both the human and environmental impacts of these inputs.

“California farmers also face the most stringent regulatory environment in the world, one that often limits their access to many of the tools still available to farmers elsewhere in the U.S. and in foreign countries, including certain types of pesticides. Indeed, over the last 20 years, California regulatory actions have removed several of the most important crop protection tools farmers rely on to fight pests and diseases.

“With yesterday’s announcement that DPR will initiate the cancellation of chlorpyrifos, one of the most widely studied and globally approved insecticides, California farmers now stand to lose yet another arrow in their quiver – without effective and ready replacement tools – making their quest to grow the safest, healthiest and most abundant food supply in the world even more difficult.

“California farmers are resilient, but the long-term viability of our farms in California depends on proper support from the Administration and renewed cooperation of the state’s regulatory agencies, especially in light of the many other unique and expensive regulations that place California farmers at a growing competitive disadvantage.”

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 half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook

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Western Growers Statement on Latest USDA Trade Mitigation Plan

May 24th, 2019

IRVINE, Calif., (May 23, 2019) — In response to the release of the Trump administration’s latest trade assistance package, Western Growers President & CEO Tom Nassif issued the following statement:

“We appreciate the efforts of the Administration to again partially offset the damages being incurred by the agriculture industry as a result of the ongoing trade war with China. In particular, we are pleased that the direct payment options have been expanded to include both table grapes and the broader tree nut industry.

“However, we are disappointed that funding for the export promotion program was cut in half, to just $100 million, despite the fact that it was massively oversubscribed during the last round of trade assistance. As a silver lining, we see this situation as an opportunity to open up new markets for American agricultural products in other parts of the world.

“Regardless, it is important to acknowledge that the current trade aid package – as was the case with the last one – will be insufficient to make the industry whole. Indeed, it will take American farmers many years, if ever, to recover from the lost trade revenues and, more importantly, lost markets that have resulted from the continuation of trade disruptions with China.

“As I stated in response to the last trade mitigation plan, our farmers are competing in a global marketplace with rivals who are already taking advantage of the supply gaps left by these artificial trade barriers. We again urge the rapid and successful conclusion of our trade conflicts with China and the restoration of commerce between American family farms and buyers across the globe.”

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 half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. For generations we have provided variety and healthy choices to consumers. Connect with and learn more about Western Growers on our Twitter and Facebook

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The Football Gag: Will Immigration Reform Get Done This Year?

May 8th, 2019

The “football gag” was a recurring joke featured in the comic strip, Peanuts. In the skit, Lucy van Pelt tells Charlie Brown that she will hold a football for him while he kicks it. After Charlie expresses some initial skepticism, Lucy always manages to persuade him to give it a try. Of course, every time Charlie approaches the football, Lucy pulls it away at the last second, causing him to fall flat on his back in pain. Lucy usually wraps up the gag by telling Charlie that he should not have trusted her.

While I doubt Charles Schulz was crafting a decades-long metaphor for immigration reform, many of us in agriculture may feel like Charlie Brown every time we hear talk of a legislative solution to our labor needs. Indeed, we have come close to passing immigration reform for agriculture several times in recent years—getting a bipartisan bill passed in the Senate in 2013 and working through a provocative push just last year—only to have the football pulled out from us again and again.

Perhaps I’m more like Charlie Brown than I like to admit, because despite a history that would suggest otherwise, I have real hope this will be the year Lucy finally holds the football in place. So… I’m lining up to take another kick.

In early April, I had the opportunity to testify before the House Judiciary Subcommittee on Immigration and Citizenship. As part of a panel titled, “Securing the Future of American Agriculture,” I detailed the critical labor shortages facing the agriculture industry and laid out our two main priorities for immigration reform: a pathway to legalization for our current farmworkers and their immediate families that does not require a touchback, and a more flexible, efficient and market-based agricultural worker visa program to ensure a sufficient future flow of labor.

So, what makes this year different? Why should we be optimistic about our chances in 2019, especially in light of a President and Congress gearing up for a raucous 2020 election in which neither side seemingly stands to benefit from compromise on immigration reform?

To which I answer: Maybe this year is no different from the past. Maybe we are setting ourselves up for more disappointment. Maybe we should learn our lesson and refuse to believe Ms. van Pelt this time around.

On the other hand, I am reminded of a quote from the rough-riding 26th U.S. President, Theodore Roosevelt (to paraphrase): “Nothing worth having comes easy.”

Translated into American politics, no great political, economic or social injustice has ever been corrected without a protracted struggle, without some group of individuals relentlessly advocating for change—which takes time and, usually, several failed attempts.

Consider the abolitionist movement, which can be traced back to our nation’s founding and the irresolvable question of how to treat the institution of slavery, and the slaves themselves, in the U.S. Constitution. While the resulting “Three-Fifths Compromise” preserved the precarious balance between the North and South, the continued practice of slavery in the Southern states provided nearly a century of moral fodder for abolitionists like Frederick Douglass, Harriet Beecher Stowe and William Lloyd Garrison. The aims of the abolitionist movement—an end to slavery and the securing of citizenship and voting rights for African-Americans—were not achieved until the Reconstruction Amendments following the Civil War.

Though not involved quite as long as the abolitionists, I have been working on immigration reform since the beginning of my tenure at Western Growers in 2002. Seventeen years later, we are still looking for a way to reconcile the economic needs of agriculture with the political needs of our Congressional representatives.

But, I am confident in our chances for success sooner rather than later. The political dynamics in Washington have shifted since the 2018 midterm elections. We are dealing with new players who do not seem interested in yanking the football away at the last moment. This necessarily means a bipartisan solution that addresses the concerns of the entire industry while also having a reasonable chance of garnering President Trump’s signature.

This also necessarily means a different approach by agriculture. As I concluded in my congressional testimony, our industry has been unsuccessful in getting immigration reform because we’ve been divided—in our goals and in our needs. Only by pledging allegiance to the collective needs of agriculture can we dissuade others from seizing upon these internal divisions and proffering legislation that does not meet the needs of the whole.

In other words, let’s heed the admonition of Benjamin Franklin to his fellow revolutionaries: “We must, indeed, all hang together or, most assuredly, we shall all hang separately.”

In my remaining time at Western Growers, I pledge myself to achieving this unity among the disparate sectors of American agriculture, and to achieving a legislative compromise that meets the needs of the entire agriculture industry. At the end of the day, we are fighting to honor the American family farming legacy, and to secure the future of American agriculture. That is a cause worth yet another run at the football, even if I might wind up on my back again.

 

Breaking the Stereotype: Women Who Are Defying the Odds in Agriculture

May 8th, 2019

By Stephanie Metzinger

In a society where stereotypes and myths are king, tales of heroines can often be overlooked. Social norms have long dictated how women are seen in the workplace, stymying the potential for significant progress in gender equality. These perceptions perpetuate phenomena such as the “gender gap” and “glass ceiling”—the invisible barrier to professional advancement of females—and undermine the success of women.

Though gender-biased practices still exist in the job market, progress is slowly but surely being made. Even Hollywood is beginning to feature female superhero leads like Wonder Woman and Captain Marvel. We are also beginning to see a similar shift in the historically male-dominated agriculture industry.

“Though I’m hearing this less and less and it’s gradually going away, there have been many times where I go into meetings and people ask me if I’m someone’s wife or daughter,” said Jackie Vazquez, director of operations at Andrew & Williamson’s Sundance Berry Farm. Instead, Vazquez is breaking all of the traditional norms tied to agriculture. She did not grow up or marry into a farming family nor did she obtain a degree in agriculture. Rather, this Salinas-native pursued a marketing degree in Chicago, and after a stint at Univision, stumbled onto a position as an assistant at Reiter Affiliated Companies.

Through hard work, curiosity and excellent mentorship, Vazquez rose through the ranks and eventually graduated from filing paperwork and serving coffee to working on budgets and handling all organic compliance affairs for the company. Nine years later, she worked her way to up to director of partner operations.

“I’m so thankful they took an interest in me even though I had a marketing background and not ag,” said Vazquez. “The reason why I do what I do and love agriculture so much is because I had a great team at Reiter that showed me what agriculture really is and why people have such a passion for this industry.”

Today, Vazquez leads the entire operations for Andrew & Williamson Fresh Produce’s Watsonville district and is making waves throughout Monterey County as an advocate for social responsibility on the farm. She was part of the team that spearheaded a host of workplace initiatives that have significantly increased retention on the farm, especially among women fieldworkers. These programs include creating designated spaces in the field where new mothers can safely and privately pump; partnering with United Way to provide the children of harvesters free school supplies; launching training programs where harvesters can learn new trades such as automotive and culinary; working with food banks to provide workers with a one-month supply of food; and creating a “Closet” where farmworkers can pick up donated home goods, clothing, furniture and more.

“The slogan for our company is ‘Changing Lives, From Farm to Table.’ I didn’t want that to just be a saying we put on a box. I wanted it to be something where when I say it, I don’t feel cheesy about it because I know we are implementing initiatives that are at the forefront of changing lives,” she said.

Vazquez is among the tribe of female farmers who are demonstrating that women are, in fact, critical agents of change in the fight against hunger. According to the Food and Agriculture Organization of the United Nations, women make up more than 40 percent of the agricultural workforce in developing countries. In the United States alone, three million acres are farmed by women, generating $12.9 billion in agricultural sales annually. While only 14 percent of the nation’s farms are run by women, these powerful “farmHers” are making changes that are reverberating throughout the industry.

For example, Loren Booth, president and owner, Booth Ranches, has grown her operation to become one of the largest and most innovative citrus farms in California’s Central Valley.

“I graduated from the California Ag Leadership Program in ’98, and from there, my interest in ag really sparked so I went to work for my dad, who at the time farmed about 2,000 acres of citrus,” said Booth, who was also heavily involved in the family’s cattle operation. After graduating from the program, she started focusing on helping her father build the citrus operation.

 “My dad was an absentee owner and didn’t have one employee,” she said. “I just thought we could do a lot better job of farming. I try to treat our employees well; an organization is only as good as its employees. Their well-being is a primary focus.”

In 2000, Booth took their entire farming operation in-house. The company dove into the packing business in 2003 when they bought their first packing house, and soon after, they brought their sales in-house. When her father passed away three years later, Booth bought out her five siblings and created what Booth Ranches is today—a fully-integrated company with farming, packing, shipping and marketing under one operation. Booth Ranches now farms 7,500 acres of citrus and markets under six labels.

“One of my favorite things about my job is watching our employees get the wind under their wings and see them fly. Our young team has really upped our technology game, and it’s really cool to be part of the evolving world of how we farm and to learn how we can use technology to do more for our industry,” she said.

Booth makes it a priority to be vocal in the community, trying to help stakeholders understand the importance of agriculture and the need for resources such as water to sustain the world’s food supply. She currently chairs the Hills Valley Irrigation District Board, serves on the California Agricultural Leadership Foundation, and is the lone female on the Friant Water Authority Board of Directors. She also previously sat on Western Growers Board of Directors and was the first woman to join the board of the Citrus Research Board.

“Sometimes in meetings, I’m the only woman in the room. I just can’t believe it because there are so many capable women in ag,” she said. “The ag industry was dominated by a strong male influence, and I feel like over the years, the opportunities have increased for many woman to step up.”

HMC Farms is a classic example of how more women are getting involved in the industry and creating a lasting footprint in agriculture. The farm is currently operated by members of the McClarty and Jensen families, half of whom are women. Chelsea McClarty-Ketelsen leads the marketing efforts, playing an integral role in helping propel her family’s farm to be a stone-fruit powerhouse. Sarah McClarty is the company’s CFO and is involved in all decisions regarding the company’s future path. Joan Jensen manages the company’s largest packing house while her daughter, Krista Carlson, is heavily involved in the accounting departments for both the packing and farming operations. The list of females in management roles does not stop with family members; key positions held by women in the company include cold storage manager, packing house manager, fresh processing operations manager and director of food safety. All are impactful players in providing consumers with delicious nectarines, plums, peaches and grapes.

Furthermore, approximately one year ago, HMC created a women’s professional development group which consists of all full time female employees throughout the organization. It was established to provide a sense of camaraderie internally as well as create a positive impact on the community through volunteer work.

“It’s incredible to see the growing number of woman becoming engaged in all areas of the ag industry,” said McClarty-Ketelsen. “As a woman, you have the unique opportunity to provide a different perspective to agriculture; whether it is through farming, marketing, or any other segment of the business. I think the balance of ideas and variety in thoughts is something everyone benefits from, male and female alike.”

Despite the fact that most farms worldwide are still headed by men, the number of women who are leading the charge in transforming farming is growing. These heroines are breaking down the walls of social norms, shattering the glass ceiling and rising above the shards to pave a path for other women. In a time when agriculture is facing dire challenges including labor shortages, rising regulatory costs and foreign competition, women, now more than ever, play a critical role in the fight to provide our country and the world an abundant and affordable food supply.

Injury Dooms Baseball Dream; Marriage Leads to Produce Career

May 8th, 2019

Director Profile

Kelly Strickland

Vice President of Operations

Five Crowns Marketing

Brawley, CA

Director Since 2018 | Member Since 1985

Growing up in San Jose, CA, Kelly Strickland was quite the baseball player. He was heavily recruited out of high school as a pitcher and continued his planned path to the Major Leagues at Azusa Pacific University in Southern California.

His selection of a course of study—business administration—ultimately proved more important in his career path than the baseball diamond he thought would lead him to post-college employment. “It is funny that I chose business administration as a major and that is the role I am filling at Five Crowns,” he said.

He noted that he is part of four members of the second generation of the family operation currently in management positions. The other three slots are filled by Danny, Tyler and Billy Colace, sons of founders Joe and Bill Colace. Those three second generation Colace men are involved in sales (Danny and Tyler) and plant operations (Billy). “I am on the operations side,” said Kelly. “That was the missing piece. They didn’t have someone to step into that role and so I was the family member for that position and it does fit well with my undergraduate work.”

Strickland readily admits that when he picked that major, he didn’t expect to use it. Speaking of his baseball ambitions, he said, “when I was a freshman all my eggs were in that basket. I picked Business Administration because it was a general business degree.”

After his freshman year, Strickland hurt his elbow, had reconstructive tendon surgery (“Tommy John” operation) and missed two years of action. “That derailed my baseball plans,” he said.

But he soon pivoted in another direction. After receiving his undergraduate degree, he began studying theology and envisioned a career in ministry. In fact, he was a youth minister in Orange County working toward that career when he reassessed his chosen profession. He had met Kristin Colace in college and was planning to marry her. But the fact was that his ministerial position didn’t pay very much. “I quit that, moved back home and went to work with my dad,” he said.

His father was a framing contractor and young Kelly did that work long enough to earn enough money to buy an engagement ring. He and Kristin did get married and began their married life in San Diego, as Kelly took a position in commercial real estate. He stayed in that industry for about six years, and then in 2011, launched a solar development company. The family connection gave the company its first major project, which was a solar installation at the Five Crown’s facility in Brawley. “In the process, I worked quite closely with Bill and Joe and they ended up offering me a position with the company.”

It was the vice president of operations job he holds today. Kelly and Krsitin gave it careful consideration and with their first two children in tow moved to Brawley in 2012. “We did have to talk about it and carefully consider it,” Kelly said. “It was quite a change to go from San Diego to Brawley. Kristin grew up in Brawley and she didn’t envision moving back here again. But it is a phenomenal company and family and we decided to make the move. It was a great move. I love Brawley. I love the small town and it’s a phenomenal community.”

It could have been smooth sailing ahead, but the story took another unexpected turn. “After moving back here, I was diagnosed with genetic heart disease. At the age of 32, I had an 11-hour, open-heart operation to repair the aortic valve. And then, two years later, I had a second procedure on the tri-cusped valve. I feel great now but it does cause you to stop and re-evaluate your life.”

That re-evaluation led Kelly to understand that he is right where he should be. In fact, while he calls the genetic disorder random, he is a great believer that everything happens for a reason and is not random at all.

Presently, he believes his business background and education created a skill set that is a perfect fit for the family firm that he married into. And he is excited about the growth and changes that have occurred at Five Crowns over the past decade, and what the future holds. Strickland joined the firm in 2012 and he said the growth has been tremendous since then—and the most aggressive in the firm’s more than three decade history. “We have added watermelon, berry and asparagus programs, opened a new cooler facility here in Brawley and are building a new 170,000 square foot processing facility in Tracy. And we’ve opened up a logistics operation.”

As he was being interviewed for this story, the Stricklands were getting ready to embark on another new adventure. “In July, we are moving to Ripon (in the San Joaquin Valley) and I am going to run the new Tracy facility along with my current duties.”

That facility will also have an office for Five Crowns’ Northern California team. “We will have 20-22 people in the office up here and it will be used as a distribution facility as well as for our watermelon packing operation.”

Five Crowns already has a collaborative partnership with Tracy, CA-based GloriAnn Farms and its line of packaged sweet corn. Strickland said the move is an affirmation of the company’s belief that California still offers lots of opportunity for an agricultural firm. He said the company currently has sales north of $200 million and is in the throes of succession planning. The two founders are in their 60s, committed to continued growth and proactively making sure the company stands the test of time through the second generation and beyond. The second generation is populated with the four members previously mentioned directly employed by the firm and three others involved as suppliers in one way or another.

The third generation of the family tree is headed by Kelly and Kristin’s nine-year-old son, Jack. Kate, 7, and Grace, 2, round out the family unit. Proud dad said Jack is a lefty and is showing athletic ability. He said the family is very much looking forward to the move to Ripon and immersing themselves in the community just as they did in Brawley. In fact, Kelly was an elder in the local church until he recently resigned because of his pending move to the San Joaquin Valley. In his spare time, he likes to golf, coach his kids in their sports and enjoy wine with Kristin. “We are looking forward to being closer to wine country,” he quipped.

Kelly first got involved with Western Growers as a member of the fourth Future Volunteer Leaders Class, which completed its term at the 2018 Annual Meeting. That was the same meeting in which Kelly became a member of the Western Growers Board of Directors as the elected representative from the Brawley district, replacing Jack Vessey who stepped down after several terms on the board.

 

Water Infrastructure Ag Industry Hopeful Congress Will Act

May 8th, 2019

Water infrastructure is a lot like the weather—everyone talks about it but nothing is ever done about it.

Consider that the vast majority of water projects serving California were in the planning stage 80 to 90 years ago and were built in 1940s, ‘50s and ‘60s. Since then, there have been virtually no massive public projects and only a few smaller, privately-funded ones. The initial projects were planned for a California population that was expected to hit about 16 million people in 1960 and 20 million a decade later. Since the last major project was built, the population has more than doubled and is currently increasing at about 1 percent per year, which means more than 50 million people in the state by 2040.

Will there be enough water for both people and agriculture?

The short answer is no, but a survey of a number of well-informed observers are “cautiously optimistic” that the path toward mitigation may begin to take shape in Congress this year after years of neglect. In fact, “terribly neglectful” is the phrase Jason Phillips, CEO of the Friant Water Authority, ascribed to the past two generations of leaders regarding their action concerning California’s water needs.

The “Greatest Generation” has received lots of credit for the forward-thinking visionaries who fought a World War and then came back home to fund and build America’s future. Highways in disrepair, crumbling bridges, sinking canals and insufficient water storage are the result of a half century of alternative priorities. But there just may be light at the end of the tunnel.

Dennis Nuxoll, Western Growers vice president of federal government affairs, said there is a lot of discussion going on in the nation’s capital presently about both water issues and infrastructure. He said these discussions are creating “momentum” that just might result in a “water package” becoming part of the road and bridges infrastructure legislation currently given a fighting chance to succeed in this Congress. There has been bi-partisan support for an infrastructure bill since President Donald Trump came to office more than two years ago. For a variety of reasons, the administration moved infrastructure legislation to the back burner of its priority list. Since the new Congress convened in January, it has once again surfaced as at least one major area where the deeply-divided government might agree.

In the meantime, Nuxoll indicated that Congress is not quite as dysfunctional as it appears. In fact, Congress has, on a bi-partisan basis, been working on a “Drought Contingency Plan” that establishes protocols for the seven western states served by the Colorado River if Lake Mead and Lake Powell dip to specific low levels of capacity. Nuxoll said this action, which includes full engagement of 14 U.S. senators representing both parties, has combined with other water issues to create the momentum in the water arena.

Sensing an opportunity to capitalize on this rare congressional collaboration, more than 100 organizations representing western agriculture and water interests recently sent a letter to both the House of Representatives and the U.S. Senate urging the legislative bodies “to use any infrastructure package to help address severe hydrological conditions in the West.”

The letter identifies the broad needs of the West in several areas including water conservation, water storage and forest management, as well as help in creating “flexibility under existing environmental laws and regulations…”

Nuxoll expressed optimism that an infrastructure bill including water could get passed and signed into law this year. Several western water experts also expressed varying degrees of optimism and also weighed in on the severity of the water issues facing the western states, and what the best solutions might be to address water shortage issues.

Scott Petersen, water policy director for the San Luis & Delta-Mendota Water Authority said he was “cautiously optimistic,” noting that he might be “more hopeful than optimistic” that legislation would be considered and passed. He did allow that there appears to be more consensus about the need to invest in water infrastructure now than in many years.

“There is widespread recognition that there is a need,” he said, noting that it has been 16 years since the Metropolitan Water District finished the Diamond Valley Reservoir in Southern California, the last major water storage facility constructed in the Golden State. “California’s water system is absolutely at a breaking point.”

He said the California legislation passed in 2014 to address groundwater overdraft—the Sustainable Groundwater Management Act—could result in the fallowing of as much as 500,000 to one million acres of land in the San Joaquin Valley if additional surface supplies of water are not accessed. He said this will have a “devastating impact” on the economy in the affected areas, and that concept appears to have widespread acceptance, citing a recent study by the Public Policy Institute of California. Petersen said there has been “encouraging dialogue” among many stakeholders, including between traditional foes such as business leaders and environmental activists to attempt to minimize the local impacts of potential land fallowing. Local stakeholders must develop sustainability plans by 2020 and implement them over the next several years to achieve groundwater sustainability by 2040.

The timetable is helping to fuel these discussions and Petersen is hopeful that rational minds will prevail and action will occur before the point of no return. He listed several different major projects on expanding existing or constructing new water storage reservoirs and improving water conveyance infrastructure that could help the effort, including the enlarging of San Luis Reservoir, the raising of Shasta Dam, constructing Pacheco Reservoir, expanding Los Vaqueros Reservoir and updating flood control manuals and operations criteria of several others, including New Melones, Oroville, Folsom, and Friant. He added that there are also state and local projects that can be part of the solution, including expanding partnerships between wildlife refuges and agricultural water districts like those served by the Authority and increasing local groundwater storage.

Phillips of the Friant Water Authority also seemingly subscribes to the theory that something will get done because it has to. He said the devastating economic impact to California if roughly a third of the irrigated land in the southern San Joaquin Valley has to be fallowed is unfathomable. “It will be an absolute train wreck,” he said, if action is not taken very soon.

Some land has already been fallowed and he said beginning next year there will have to be permanent fallowing if additional water sources aren’t developed to recharge the overdraft in the San Joaquin Valley. Phillips is also optimistic that action will occur largely because it seems so logical to him…and he can point to specific projects that can help mitigate the problem.

Solving the problem, he said, requires a multi-thronged approach, including the development of new storage capacity (Temperance Flats and Sites), expanding others (Shasta Dam) and, just as importantly, greatly increasing the conveyance capacity in the state. For example, he said the Friant-Kern Canal is designed to deliver one million acre feet (AF) of water annually to 15,000 farms through a 152-mile, gravity-powered system. The overdrafting issue has caused land subsistence and created 25 to 30 miles of canal that are 12 feet below where it was when built. To rebuild that portion of the canal so it once again can flow at full capacity is about a $300 million fix. Phillips said that would result in an additional 200,000 acre-feet of water, which is about 8 percent of the estimated 2.5 million AF shortfall that the state annually has.

Phillips is optimistic that any federal water infrastructure bill would include funding for this project because it makes economic sense. As a point of reference, he said enlarging Shasta Dam (another necessity in his view) is estimated to cost about $1.3 billion and will yield additional storage of about 80,000 AF of water.

Phillips believes the critical element of solving California’s water problem is a more robust conveyance system. He noted that during this year’s especially wet winter 10 million acre feet of usable water went out to the ocean because the conveyance capacity did not exist to deliver it to recharging basins nor was their sufficient capacity to store it. He noted that in a majority of years, California winter produces less water than the state needs but in about four years out of 15, an excess is produced and there needs to be a way to capture it. He said this spring and summer, more water will be lost to sea as the tremendous snowpack will melt and will again overwhelm the conveyance and storage capacity.

Friant and others have developed a San Joaquin Valley Water Blueprint addressing what needs to be done to make up the 2.5 million AF shortfall. Phillips said it is a reasonable plan with both short term solutions that can capture one million AF over the next five years, as well as the development of longer term projects that will come on line over the next 15-20 years.

He believes it is doable and is optimistic it will get done. He even believes the funding is realistic. Besides the potential, and need, for federal funds, Phillips said there are non-contract water users that are willing to pay to create additional water sources as long as they get access to that water. He said the key is to get these areas organized so that they can establish coalitions or districts to fund these projects.

Brent Walthall, assistant general manager for the Kern County Water Authority (KCWA), also has somewhat of an optimistic view that some action will occur this year where none has happened in many years. But he directed his attention to California’s Delta and the need to create a through-Delta conveyance system. KCWA, and the many water districts it serves, count on the water produced in the northern half of the state, and Walthall said this is year 13 in the discussions to start the through-Delta project. “I do expect a decision before the end of 2019,” he said.

Former Governor Jerry Brown advocated a two-tunnel project while new Governor Gavin Newsom favors a one-tunnel approach. Walthall said that while more water could be delivered with the two tunnels, the one-tunnel proposal has the advantage of higher probability of being approved, and it will certainly be completed more quickly, though he would not hazard a guess as to the completion date. He said regulators are currently determining how much of the research and environmental reports completed for the two-tunnel project translate to the smaller option.

Walthall said, just like the Friant-Kern Canal, the California Aqueduct also needs significant repairs to make it more efficient. He said it is a big project and it will require that users be the source of funding. Frankly, he said some KCWA water districts will be able to fund the project and be able to use the additional water created while for others, the increased cost just won’t pencil out.

Dan Keppen, executive director of Family Farm Alliance, headquartered in Klamath Falls, OR, had a broader view of the infrastructure debate as he represents growers in all 17 western states. Like the others, he does believe that there is reason for optimism that water infrastructure projects will be included in the broader infrastructure legislation if it succeeds. However, he believes the window for success is relatively short because of the already-started campaigning to become president in 2020. A plethora of Democrats are in the race and President Trump has already begun his re-election bid. “If it doesn’t get done (passing of infrastructure legislation) by the August (2019) recess, I don’t think it will happen,” he predicted, noting that neither party will want to give the other a victory as 2020 approaches.

But unlike the others, Keppen does not see decades of inaction on the water front. While it is true there have been no big dams built in decades, he said there have been several bills passed on the federal level showing that Congress does have an appetite to address water issues. He said Water Resource Development Acts were passed in both 2016 and 2018 that did include provisions for flood control for both the Klamath Basin and Missouri River. And he said a very important change was legislated in 2018 to the criteria the Army Corp of Engineers can use when approving flood control projects. He said more weight can be given in rural areas and this has opened up funding sources for projects benefiting agriculture. He also noted that there are some smaller projects that are in the works in various western regions including the Dakotas, Nebraska, Wyoming and the Northwest.

Keppen said the latest Farm Bill also contains provisions in the conservation area that allows farms more leeway on their own land and the ability to apply for federal dollars to help cover the cost of private projects.

In light of the difficulty in passing sweeping bills, Keppen said these incremental advances are important and extremely relevant to the ag community. He agreed with WG’s Nuxoll that the dialogue that ensued while working with 14 U.S. senators on the Drought Contingency Plan has created momentum that could morph into action. “I do think there is an opportunity,” Keppen said. “There is a lot more work to be done, but I do think it is a possibility that we can come together on this.”

 

California Needs Clean and Affordable Drinking Water

May 8th, 2019

By Gail Delihant

The concept of having safe and affordable drinking water may seem simple, considering all the advanced technology we have available today. However, nothing is simple when it comes to water in California.

For more than four years, Western Growers staff has been cultivating relationships with environmental justice organizations to forge pathways that would ultimately protect growers from onerous drinking water replacement orders issued by the State Water Board Office of Enforcement (OOE). Odd as it may seem, adversity does make strange bedfellows.

At the end of the legislative session last year, the agriculture, environmental and business communities, as well as a whole host of other stakeholders including the Water Foundation, worked tirelessly to convince two-thirds of both houses to vote for Senator Bill Monning’s drinking water bill – SB 623. We could just about taste victory, but ultimately the bill stalled without a vote. Fierce opposition to the municipal water tax portion of the bill from the Association of California Water Agencies (ACWA) played a significant role in halting progress. Fearing a replay of the fallout of the gasoline tax increase earlier in the session, which culminated in the recall of a Democratic state senator in Southern California, Speaker Anthony Rendon decided not to push members of his caucus to vote for another tax in an election year. Even Republicans from agricultural areas whose constituents were currently feeling the sting from the OOE were unwilling to support the bill—with the exception of now-former Senator Andy Vidak (Tulare).

ACWA’s alternative to the water tax? Establish a dedicated trust fund, infused by the general fund. While ACWA supported the imposition of fertilizer fees to fund nitrate contamination in ag areas, the association worried about the precedent of establishing a first-ever state charge on municipal water connections. “With the state’s record budget surplus, the timing is perfect for the state to establish and fund the Safe Drinking Water Trust,” said Cindy Tuck of ACWA.

Senator Anna Caballero (D-Salinas) carried their bill last year, which also failed to pass, and is attempting it again this year. 

When Gavin Newsom was newly elected governor, he publicly declared that access to clean affordable drinking water was a priority. During his first State of the State address, he said “We have a big state with diverse water needs. Cities that need clean water to drink, farms that need irrigation to keep feeding the world, fragile ecosystems that must be protected…

“Just this morning, more than a million Californians woke up without clean water to bathe in or drink. Some schools have shut down drinking fountains due to contamination. Some poorer communities, like those I visited recently in Stanislaus County, are paying more for undrinkable water than Beverly Hills pays for its pristine water.

“This is a moral disgrace and a medical emergency…Solving this crisis demands sustained funding. It demands political will.”

There are now several vehicles to address this issue. To show his strong support, Governor Newsom proposed a Safe and Affordable Drinking Water Trailer Bill, which is essentially SB 623 from last year. With backing from the Speaker, Assemblymember Eduardo Garcia (D-Coachella) introduced AB 217. Garcia’s legislation includes a monthly $0.50 water tax, fertilizer fees, $250,000 from the general fund for 5 years going into a trust account, and a promise to add enforcement protection language later. Both of these bills will require a two-thirds vote of the Legislature.

Additionally, Senate President Pro tem Toni Atkins has voiced concern about passing a water tax. As we understand it, she wants to see a majority vote for general fund money going to safe drinking water needs each year. Her proposal would not include new fertilizer fees, municipal water connection fees, or enforcement protection for farmers in compliance with state and regional water quality mandates.

Although everyone agrees that clean drinking water should be addressed this year, there is no certainty that the Legislature will muster the will to act. Conventional wisdom tells us that new governors elected by wide margins usually get what they want in their honeymoon year, especially when that governor is of the same party as the majority in the Legislature. Governor Newsom has made this a top priority and has aligned himself with the approach advocated by the agricultural-environmental justice coalition. It’s time to get this done.

The Value of Diversity in Agriculture

May 8th, 2019

By Chardae Heim

Diversity in leadership is often a key asset to any company or industry, and while agriculture may lag others in diversity at the top, the industry is poised to make great strides and more closely reflect the demographics of the world it feeds. Just as a farmer understands the value of diversifying his or her crops, the industry as a whole is benefitting from efforts to include women and minorities in positions of management and ownership.

According to the 2017 Census of Agriculture, while the total number of male farmers actually declined from the 2012 data, the number of female producers jumped nearly 27 percent, from 970,000 to 1.23 million. Women now represent 36 percent of all U.S. farmers, and the total market value of agricultural products sold by farms with women producers was $148 billion in 2017.

Just as we are seeing more women in agriculture, the industry is also seeing an uptick in minority representation. While the total number of U.S. producers rose by 6.9 percent between 2012 and 2017, the total number of minority farmers—including Hispanic, American Indian, African American and Asian—increased by 9.6 percent during the same time span. The total market value represented by these minority farmers was $35 billion in 2017, up nearly 29 percent from 2012.

Though significant progress has been made in enhancing diversity in agriculture, minorities are still underrepresented in farming. Of the 3.4 million farmers nationwide, just 240,000—or roughly 7 percent—are minorities, a ratio that has remained relatively flat in recent years. These persistently-low numbers beg the question: Do minorities face barriers to entry that make careers in agriculture inaccessible? It is significant to note that minorities have contributed to many of agriculture’s most utilized inventions and practices, such as Henry Blair, who patented the corn planter, and George Washington Carver, who developed his own crop rotation method, which increased the soil’s productive capacity. Another notable minority agriculturalist is biochemist Dr. Evangelina Villegas, who dedicated her research to improving the nutritional content of maize. Along with her research partner, she developed quality protein maize, which increased the digestible protein in corn, improving the nutritional standing of millions of underfed people around the world.

To encourage diversity in agriculture, and to help women and minorities overcome the barriers to entry, numerous non-profit organizations and government programs have emerged, including the National Society for Minorities in Agriculture, Natural Resources, and Related Sciences (MANRRS). In 1986, a group of agriculture and natural resources students and faculty from Michigan State University and Pennsylvania State University created MANRRS to provide underserved and under-resourced individuals in the industry a reliable network of like-minded professionals. Still in operation today, MANRRS provides their members with valuable resources, such as leadership development, educational opportunities, job readiness training and internship placement and permanent employment, with a special emphasis on agriculture, natural resources and related sciences.

Another longtime advocate for diversity and inclusion within agriculture is the United States Department of Agriculture Farm Service Agency (FSA). In order to better serve traditionally disadvantaged communities of farmers and ranchers, the FSA has developed a number of initiatives like the operating and ownership microloan programs. Farmers are awarded these microloans to purchase farm land, expand an existing farm, implement soil and water conservation practices, as well as to cover start-up expenses. Nearly 80 percent of these loans were allocated to underserved farmers, which also included beginning farmers and military veterans. In addition to these microloans, the FSA also aims to provide a portion of all loan funds to historically disadvantaged farmers and ranchers.

The National Sustainable Agriculture Coalition (NSAC) is a union of associations advocating for federal policy reform to advance the sustainability of agriculture, food systems, natural resources, and rural communities. While the NSAC has worked on programs to advance agriculture as a whole, they have developed and championed initiatives supporting minorities and socially disadvantaged farmers and ranchers. The Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers Program provides grants to socially disadvantaged farmers, including African Americans, American Indians, Asian Americans and Hispanics. Administered by USDA (and financially supported by NSAC), this program seeks to overcome historic discrimination by providing funding for minority farmers to own and operate farms, as well as providing them with assistance in farm management, financial management and application and bidding procedures.

Diversity in the workplace has proven to yield significant value to society as a whole, and an emphasis on greater inclusion in agriculture will result in a stronger, more creative and innovative industry in the future. Achieving a more complete inclusion in agriculture will not happen overnight, but as the recent growth in minority farmers demonstrates, we can expect the trend to accelerate. Indeed, with the support of organizations like MANRRS, USDA and NSAC, diversity is more attainable than ever.

 

RURAL CONNECTIVITY: Federal Funding Promises Widespread Broadband Coverage

May 8th, 2019

When Vice Chancellor Linda Thomas surveys the challenges facing the students at West Hills Community College in Coalinga, CA, lack of economic stability nears the top of the list. Few students can afford full-time, uninterrupted studies. They have to go to class, do homework and complete their coursework while working, taking care of family and just putting food on the table.

At least those are challenges that the students have some control over. Even more frustrating to the college administrator is the technological disadvantages that these students have to navigate. “We have a crisis on the Westside (of the San Joaquin Valley),” she said. “The lack of broadband and lack of economic development hurts our community.”

While on campus students do have access to the internet, but while at their homes or places of employment, it either doesn’t exist or is spotty at best. It’s difficult to get your college work done when you can’t access the internet…that’s the same internet readily available to elementary school students in urban areas throughout the country. Of course, Thomas said the lack of rural connectivity goes well beyond the impact on students. In her community, she said health outcomes also suffer as heart patients, for example, can’t utilize heart monitors, and many other patients suffer because of the inability to rely on other electronic medical devices.

This is the same story across America. Rural areas are technologically underserved. Because of the open-space geography necessary for agriculture, the industry is especially hard hit. Dennis Donohue, director at the Western Growers Center for Innovation & Technology in Salinas, agreed that lack of connectivity on farms is a major issue as the industry moves toward developing technological solutions to its problems. For example, a great hand-held system might be developed to offer real-time measurements of many different vital inputs but if that data can’t be accessed or transmitted because of lack of connectivity, its value is marginalized.

Terry Brase, director of Farm of the Future at the very same West Hills Community College where Thomas is an administrator, revealed how difficult it is to teach new technology to tomorrow’s agricultural leaders when you are working in an environment relying on 20th Century connectivity. In fact, for this phone interview, he had to pull over to the side of the road in an area in his rural community where he knew the cell signal would remain strong. Reiterating what Vice Chancellor Thomas had said, Brase noted that basic communication in his area is a huge challenge, let alone trying to engage his students in new precision agriculture advances. “In just the normal course of business, it is difficult to communicate with farms, offices or a home office. There just is no coverage in many areas.”

He said farmers trying to upload irrigation data can’t do it. “There is only a limited amount of technology you can use out here. Exchange of data is difficult. For example, utilizing yield data or uploading video takes quite a bit of bandwidth.”

Rural connectivity has been Thomas’ passion at West Hills. She has been looking for solutions and funding for several years, talking to legislators, internet service providers and local employers touting the advantage of having broadband access in the community. She has long operated under the assumption that the college district would have to pony up a good portion of the funding for any potential solution.

But the cavalry is on its way. It appears that not only will the Westside of the San Joaquin Valley be connected in the next few years, so will rural communities all over the country.

Connect America is a federal program launched several years ago to bring connectivity across the country with the help of federal dollars. The forces of the free market have done a relatively good job providing cell and broadband service to urban America. Half a dozen years ago, the U.S. Congress allocated funds to the Federal Communications Commission to extend this service to less populated areas. Experts interviewed for this story said the large service providers, such as Verizon and AT&T, helped write the regulations and cherry-picked the funding, so the end result was an extension of coverage but still not to most of rural America. Cell towers were set up to cover the major roads throughout the country but not the communities that existed beyond the interstates. As a matter of fact, these are the communities where agricultural production is centered. One expert said the coverage maps often touted by these large providers in their advertising are a joke at best. Large swatches of America have little or no coverage.

When the first round of funding didn’t solve the problem, the FCC launched Connect America Fund Phase II. Last year, the FCC conducted an auction (#903) allocating connectivity funding to underserved, and under-populated census blocks across the United States. Auction 903 ran from July 24 to August 21, 2018. More than 100 bidders won about $1.5 billion in funding spread out over 10 years to provide fixed broadband and voice services to more than 700,000 locations in 45 states.

For the past few months, the administration of the program—including rules—have been developed and winning bidders are now starting to build-out the broadband systems. The regulations call for a tiered approach to development with benchmarks having to be met on a specific timeline for further funding to continue. For example, within the first three years, a successful bidder must have expanded broadband support to 40 percent of the locations within the bid’s service area.

One such successful bidder is Commnet, which operates in most western states and won bids for many different rural areas including some locations in California, Arizona, New Mexico and Colorado. Michael Prior, CEO of ATN International, Commnet’s parent company, expects the build-outs to occur at a much more rapid pace than the six to 10 year timeline would indicate. “You are going to start to see major programs developed in the next six to nine months,” he told Western Grower & Shipper in early April.

Prior said the program’s funding incentives are tied to completion of projects so companies like Commnet are going to move fast. He, in fact, is bullish on the potential success of this effort. He said there is no one solution as many different technological advances are in the works that will provide this coverage in even sparsely populated areas. Commnet, he said, has much experience bringing broadband to communities with as few as four to 10 people per square mile.

Among the solutions being offered are point-to-point, line of sight connectivity. That is the solution being developed for Coalinga by Cal.net, a Northern California wireless provider that has 20 years of experience providing internet service to small towns and communities. Mark Herr said the company entered Auction 903 and was awarded many of the rural census blocks in the San Joaquin Valley stretching from Kern County to Redding.

Herr explained that the firm will be erecting towers and using tall buildings to locate line-of-sight equipment that will send wireless signals directly to equipment on homes and businesses. Hard wiring will connect the equipment on the home to a router or similar equipment within the home. “If we can use existing buildings, that will speed up the process and allow us to provide broadband service quicker,” Herr said.

He noted that the company’s field representatives are currently surveying their service areas determining locations for towers or suitable buildings. For example, he said Linda Thomas of West Hills Community College has offered several buildings at the district’s two campuses that could be used. Herr said any building in which there is uninterrupted line of sight for several miles is a great option. He added that the topography of California’s Central Valley offers many opportunities, as it is relatively flat with few tall trees that would obstruct the signal. “We would urge anyone to give us a call if they can offer access points that would help us avoid building a tower,” he said.

Of course, that would also give such building owners the advantage of having a very strong signal within their property.

Prior of ATN International said his company is actively and financially involved in developing other wireless solutions, including “near-line of sight” and “non-line of sight” fixed wireless options. The company is also investing in a low-orbiting satellite approach that could offer connectivity at a more rapid speed than currently available. He explained that satellites are an option but their placement far above the earth results in a time delay as a signal travels up to the satellite and back again.

Prior is optimistic that over the next two to three years, much progress will be made to connect Rural America to the 21st Century. However, he did caution that connectivity will still lag behind that which is available in Urban America. He reasoned that these new rural build-outs are seeing huge upgrades as 25 Mbps (megabyte per second) systems are being put in place. He said that certainly is adequate for most applications, including video streaming. But at the same time, urban areas are seeing upgrades to 250 Mbps or even 1 gigabyte systems.

For Linda Thomas, this federal program is a godsend that should help level the playing field for her students and community. For Terry Brase, it will allow his students to offer agricultural employers a technologically-advanced skill set indicative of the “Farm of the Future” program that they have completed.

FSMA’s Rule on Foreign Supplier Verification Focuses on Produce

May 8th, 2019

Based on data collected by the U.S. Department of Agriculture’s (FDA) Global Agriculture Trade System, it is evident that the importation of fruit and vegetables has dramatically increased in the last 10 years. As a result of a growing global produce industry combined with FDA’s newly implemented rule on Foreign Supplier Verification Programs (FVSP) for Importers, the focus on foreign produce suppliers is greater than ever.

In general terms, the FSVP regulation applies to entities that import food for consumption in the United States, with a few exemptions. In a nutshell, importers subject to this regulation are required to verify/approve foreign food suppliers to ensure this food is not adulterated or misbranded—and is produced or manufactured in a manner that meets applicable U.S food safety regulations for farms and/or registered facilities that process food for human or animal consumption.

With a complex global produce supply chain, the definitions of foreign supplier and importer under the FSVP regulations are becoming more relevant to companies that import produce.

The FSVP regulation defines an FSVP importer as the U.S. owner or consignee of a food offered for import into the United States at the time of entry. If there is no U.S. owner or consignee, the importer is the U.S. agency or representative of the foreign owner or consignee at the time of entry, as confirmed in a signed statement of consent. It is important to note that the importer of record for U.S. Customs and Border Protection (CBP) may not necessarily be the importer subject to this regulation. Importers responsible to comply with the FSVP regulation are commonly referred to as FSVP importers.

The FSVP regulation defines a foreign supplier as the establishment that manufactures/processes the food, raises the animal, or grows the food that is exported to the United States without further manufacturing/processing by another establishment. However, this does not apply to further manufacturing/processing that consists solely of the addition of labeling or any similar activity of a de minimis nature.

In simpler terms, a foreign supplier is the actual entity that produces or manufactures food that is exported to the United States. Please note that a company’s actual foreign supplier might not be the entity from which the food is actually obtained from. For instance, if you obtain oranges from a packing house that only packs and holds the oranges (and does not perform manufacturing/processing on the oranges), the foreign suppliers would be the farms that grew the oranges.

With that said, if you are a grower or fresh-cut processor that obtains produce from foreign suppliers, you may be impacted by the FSVP regulation if you meet the definition of FVSP Importer. The majority of compliance dates related to this regulation have already passed, but it is not surprising to note that many entities do not know if they are subject to this regulation.

FSVP importers are responsible for verifying/approving foreign supplies, with some exceptions. They are required to have a FSVP for each foreign supplier and each food taking the following actions:

1.  Determining known or reasonably foreseeable hazards with each food;

2.  Evaluating the risk posed by a food, based on the hazard analysis, and the foreign supplier’s performance;

3.  Using that evaluation of the risk posed by an imported food and the supplier’s performance to approve suppliers and determine appropriate supplier verification activities;

4.  Conducting supplier verification activities; and

5.  Conducting corrective actions.

For additional details and information about specific requirements, review FDA’s final rule as well as the agency’s Technical Assistance Network and draft guidance to implement a FSVP.

While the agency is still supportive of education and outreach—both within and outside the U.S.—to promote awareness of the FSVP rule, compliance and enforcement activities are taking place. It is imperative that the entities with minimal knowledge of this regulation need to fully understand and comply with this regulation. FDA has developed several resources, such as decision trees that can help a produce company determine if it is subject to this regulation.

FDA is currently monitoring foreign supplier verification efforts and inspecting FSVP importers. The agency is reviewing the records FSVP importers must maintain to demonstrate compliance with FSVP requirements. We encourage you to determine if this regulation applies to you and to take steps to meet its requirements.

Western Growers will be hosting a webinar about this topic in July. If you have any questions about the FSVP regulation, contact me, Sonia Salas, at 949-885-2251 or by email at [email protected].

 

AGTools: Real-Time Data Tech Improves Bottom Line for Farmers

May 8th, 2019

By Stephanie Metzinger

On any given day, farmers face a number of unpredictable variables that can take a heavy toll on their bottom line, including labor strikes, changes in consumer preferences, currency swings, drastic weather conditions, market crop pricing and more. A predictive analytics startup has come up with a tool that aggregates immense amounts of data and simplifies it down to key factors to improve decision-making for farmers, suppliers and buyers.

“We mine official data—think facts and stats from government agencies, research institutes, central banks, satellites—and put it all into one place,” said Martha Montoya, founder of AGTools. “Our algorithm takes that information to make the data accessible and easy to understand so we can predict better.”

The algorithm was developed by Montoya’s brothers—two accomplished engineers from Boeing and Amazon—and already has a proven track record of success. During the testing of the tool, the game-changing system was able to predict the May 2018 Brazilian truck strikes affecting papaya shipments. AGTools’ ability to track exchange rate trends also prevented one farmer from sending his blueberries to Spain, as it was more cost-efficient to just keep his product in the United States and donate it to the food bank.

“That grower would have lost a significant amount of money on that sale, paying for transportation, cooling and handling paperwork. We prevent farmers from spending more money on the ground,” said Montoya.

Today, AGTools has 513 fruits, vegetables, nuts and floral products in its database. It also has more than 81 million records of market data plus 25 years of historical data of all commodities on a national and global scale.

 

Providing Easy Access to Real-time Data to Increase Profits, Reduce Food Waste

Montoya, who grew up on a coffee farm in Colombia, originally launched AGTools after noticing there was a communication gap between farmers and food retailers. While serving as an international agricultural development liaison for companies such as Calavo and Del Monte, she would hear discrepancies between the growers and buyers.

“The farmer would say that the price of a certain commodity was good while the retailer was saying the price was in the dumps,” she said. “Only one party could be right so I ended up pulling government data and sending it over to both of them. That’s when it clicked. We need an algorithm that can put everyone in the same lane of information.”

While government organizations maintain archives of data, they can be cumbersome to access. For example, to acquire data on retail buys of a certain commodity over a 10-year period from the U.S. Department of Agriculture, it would be 15 pages long and would take at least seven working days to create, according to Montoya. With AGTools, users can filter through the website and obtain that information in seconds with one click. Plus, they can see that data in an easy-to-read Excel format or through a visual graph. Users can also filter further to analyze spikes in volume, trends on which box sizes sell the most, which states are producing the most of a commodity at any given time of the year, and other data points.

Furthermore, there is a lack of accuracy in government data as it relates to real time. In many instances, the data that is reported Friday night will not be updated in time for a shipment Tuesday morning. Lack of real-time data impacts the agriculture industry and is part of the reason why more than $74 billion dollars of food is wasted between the harvest and distribution centers every year in the United States. AGTools has refined its software-as-a-service (software that is available over the internet rather than the traditional on-site installation) to ensure that its website is intuitive and simple to use, and that the most up-to-date data can be accessed quickly. The software also has the ability to provide alerts to ensure that farmers are continuously informed on any variable that can affect their profit.

“Our industry has suffered so much. I see farmers struggle and lose money, and more are closing their doors. They work around increasing rules and regulations while trying to still feed more people,” said Montoya. “I came to the U.S. to avoid violence in my home country and then decided farmers were my priority. So it’s a priority to me that AGTools remains affordable and accessible to everyone in the food supply chain.”

 

Collaborating to Expand Women’s Access to New Technologies

In addition to helping increase farm profits, AGTools is focused on accelerating the adoption of technology among female farmers. The startup, in collaboration with Western Growers and Charter Communications, is officially launching a pilot program in May 2019 to improve access to vital data and expand broadband reach for women growers.

“We want to train women farm owners on how to use data to improve their businesses,” said Montoya. “I believe, actually I know, if women have access to accurate data, they will be able to negotiate better and increase their profits.”

The pilot program provides 10 women farmers with access to the AGTools software for six months, free of charge. During that period, the AGTools team will train these farmers on how to best use the data to navigate better business outcomes. As a startup housed in Western Growers Center for Innovation & Technology, AGTools will work with Western Growers to identify and partner with other start-up companies also looking to improve access to new technologies for women growers.

From NAFTA to USMCA: What Has Changed and How Will It Affect Agriculture?

May 8th, 2019

Looking back on the 25-year history of the North American Free Trade Agreement (NAFTA), the data and stories of success are plentiful. In our sector alone, U.S. fruit and vegetable suppliers are exporting nearly triple what was being done pre-NAFTA. That said, NAFTA has long received its fair share of criticism, including from the specialty crop industry.

The Trump Administration has actively pushed a tougher trade stance, even with longtime partners, in order to secure more fairness for American products and workers. NAFTA renegotiation was at the top of the to-do list, and the blanket imposition of tariffs on steel and aluminum imports since March 2018 all but ensured Mexico and Canada would come to the table. All three countries ultimately signed the new US-Mexico-Canada Agreement (USMCA) on November 30, 2018, setting the stage for domestic consideration and ratification.

What’s in the Deal

As of this writing, the full text of the USMCA has not been released. However, from what has been gathered from official summaries and conversations with officials, the agreement contains, at best, minor yet notable improvements for the U.S. specialty crop industry:

  • The no-tariff be lifted, and our opposition to any consideration of a complete NAFTA withdrawal—a threat the President continues to publicly levy as a means to force Congressional action.
  • The sanitary and phytosanitary chapter contains improvements and more transparency as they relate to import checks, certification processes, bilateral technical consultations, strong scientific justifications, and other provisions. For added perspective, what is included in USMCA is largely similar to what was negotiated under the Trans-Pacific Partnership (TPP).
  • Significant labor changes are included, predominately to address Mexico’s comparatively lax standards. This includes stronger collective bargaining protections and pathways for each country to sanction each other for violations. If ultimately enforced, this could result in a double-edged sword scenario for our growers. On one hand, stronger labor laws in Mexico could help shrink the cost-of-production gap between Mexican and U.S. produce, thus helping the latter be more competitive in the market. On the other hand, better wages and working conditions in Mexico could make it more difficult to attract workers to head north, potentially straining the U.S. labor shortage further.
  • There was no inclusion of new trade remedies for seasonal produce issues, a Southeastern region-generated request that garnered less-than-unanimous support from within (and outside) the specialty crop industry.

Ratification Roadmap

As is commonplace with any trade deal, ratification in the United States is shaping up to be a rocky road. Arguably the biggest roadblock to a timely passage is the continued imposition of the steel and aluminum tariffs. Industry stakeholders, Mexico and Canadian officials, and prominent members from both U.S. political parties have stated bluntly that ratification cannot—and will not—move forward as long as these tariffs remain. In response, the Administration has refused to remove the tariffs but continues to assure stakeholders that discussions are ongoing with Canada and Mexico to find a solution.

Regarding the substance of the deal itself, Democrats have raised concerns across several areas, including provisions on labor, environment, and pharmaceuticals, as well as proper enforcement of the deal. Both leadership and rank-and-file members have demanded that significant changes be secured before a vote moves forward; it remains to be seen through which avenues such demands can be satisfied, short of reopening the agreement—an option the U.S. government, Mexico, and Canada all say is not possible.

Timing and coordination with the other two countries’ processes are also key. The Canadian Parliament is set to conclude its session on June 21, not returning until mid-September. Mexico has more ground to cover to ensure ratification, given that the USMCA’s new labor provisions require Mexico to change some of its domestic laws; full enactment of this is also something Democrats want to see completed before considering the deal.

What Western Growers Has Done

Since the deal was signed, one of the agriculture industry’s main priorities has been to conduct widespread outreach to both new members and moderate Democrats, to educate them on the historical benefits of NAFTA and the importance of USMCA ratification. Several USMCA-focused coalitions have formed that Western Growers is a member of, and we are actively participating in meetings with targeted Congressional offices, alongside our friends in the commodity crop, livestock and dairy sectors.

Western Growers maintains near constant contact with the Administration to convey our support for the agreement, our urging that the 232 tariffs Looking back on the 25-year history of the North American Free Trade Agreement (NAFTA), the data and stories of success are plentiful. In our sector alone, U.S. fruit and vegetable suppliers are exporting nearly triple what was being done pre-NAFTA. That said, NAFTA has long received its fair share of criticism, including from the specialty crop industry.

The Trump Administration has actively pushed a tougher trade stance, even with longtime partners, in order to secure more fairness for American products and workers. NAFTA renegotiation was at the top of the to-do list, and the blanket imposition of tariffs on steel and aluminum imports since March 2018 all but ensured Mexico and Canada would come to the table. All three countries ultimately signed the new US-Mexico-Canada Agreement (USMCA) on November 30, 2018, setting the stage for domestic consideration and ratification.