Cal/OSHA Proposes Emergency Temporary Standard Changes

May 7th, 2021

Today, Cal/OSHA posted an amendment to the Emergency Temporary Standard regulation on COVID-19 (ETS). The “readoption” draft will be considered and likely approved by the Cal/OSHA Standards Board when it meets on May 20, 2021.

Of note, this language now recognizes COVID-19 vaccinations as a mitigating factor in how employers manage health and safety in their workplaces. Among other issues, relief has been provided on the physical distancing, housing, and transportation requirements when employees are fully vaccinated. Although the ETS will remain in place for many additional months, this amendment represents a significant step in the right direction and will allow greater flexibility in agricultural operations.

Specifically, the following exceptions are being proposed:

  1. Physical distancing requirement of 6 feet would no longer apply when employees are fully vaccinated.
  2. Housing requirements would no longer apply when all employees in the housing are fully vaccinated.
  3. Transportation requirements would no longer apply when employees are vaccinated.

Western Growers (WG) has been advocating for common sense changes to the ETS, and have implored Cal/OSHA to take vaccinated workforces into account. Staff will continue to evaluate the proposed language and will be testifying at the meeting on May 20th. WG has also been actively engaged with legislators and California Governor Gavin Newsom’s Office on what further relief within the ETS should be considered.

Meanwhile, the lawsuit filed by WG and industry partners is proceeding on an expedited basis before the California District Court of Appeals.

Links to ETS readoption notice and proposed language can be found here:

For additional information, contact Jason Resnick at 949-885-2253 or Matthew Allen at 916-446-1435.

California Department of Public Health Updated COVID-19 Guidelines

May 11th, 2021

With a growing number of employees passing the fully vaccinated threshold, government regulators are actively reevaluating current health and safety standards. In keeping with the Center for Disease Control’s (CDC) recently updated health and safety restrictions, the California Department of Public Health (CDPH) has eased quarantine restrictions for fully vaccinated asymptomatic employees in non-healthcare workplaces. Following CDPH’s lead, Cal/OSHA will no longer require that fully vaccinated asymptomatic individuals be excluded from the workplace. However, despite the lessening in quarantine rules, other CDPH and Cal/OSHA requirements such as the wearing of face masks and testing protocols remain unchanged.

Specifically, updated CDPH and Cal/OSHA (Emergency Temporary Standard, or ETS) guidelines include the following changes regarding fully vaccinated employees:

  • Fully vaccinated employees who have COVID-19 or have been exposed to COVID-19 and exhibit COVID-19 symptoms must be excluded from the workplace.
  • Fully vaccinated employees who have been exposed to COVID-19 and are asymptomatic need not be excluded from the workplace.

Under the updated CDPH guidelines, an individual is considered “fully vaccinated” two weeks or more after receiving:

  • A single-dose vaccine (Johnson & Johnson/Janssen); or
  • A second dose of a two-dose vaccine series (Moderna or Pfizer-BioNTech)

As reported here, additional modifications may be on the horizon as the Cal/OSHA Standards Board is set to meet on May 20, 2021, to consider and likely approve the following ETS amendments:

  • Physical distancing requirement of 6 feet would no longer apply when employees are fully vaccinated.
  • Housing requirements would no longer apply when all employees in the housing are fully vaccinated.
  • Transportation requirements would no longer apply when employees are vaccinated.

While the easing of existing COVID-19 regulations for fully vaccinated employees is a step in a positive direction, it also raises additional questions for employers.

Current Department of Fair Employment and Housing and Equal Employment Opportunity Commission guidance confirms an employer does have a right to inquire about an employee’s vaccination status (absent any disability or religious-related inquiries). However, given the confidentiality and disability-related issues that may arise out of such an inquiry, and the fact that there is no established standard for proving vaccination status, employers may well wonder whether actual proof is necessary. Nonetheless, as part of the employer’s ongoing duty to provide a safe and healthy workplace, employers implementing proof of vaccination protocols may want to consider the following:

  • Employer-created acknowledgment forms asking employees to provide and verify the minimum vaccination information necessary (e.g., date(s) of vaccination, location, and type of vaccination)
  • Vaccination card showing name, date(s) of vaccination, location, and type of vaccination (e.g., CDC issued card or photo of vaccination card stored on an electronic device)
  • Other reasonable evidence in lieu of a vaccination card (e.g., proof that the employee has received a COVID-19 vaccination from a pharmacy or their own healthcare provider – so long as the employee does not provide any medical information as part of the proof).

Employers will want to proceed with caution and be mindful of taking a hardline when it comes to requiring employees to prove their vaccination status. Reprimanding an employee for declining to disclose their vaccination status could trigger an employer’s duty to engage in an interactive process to determine if the refusal is based on disability or religious grounds.

For questions or additional information, contact Teresa McQueen, Western Growers Corporate Counsel, at (949) 885-2277.

Court Hears Arguments in Coachella Hero Pay Lawsuit

May 18th, 2021

On May 14, 2021, a federal judge heard arguments in Western Growers’ lawsuit challenging the City of Coachella’s so-called “hero pay” ordinance requiring agricultural employers to pay workers an additional $4 per hour for at least 120 days.

The lawsuit filed by Western Growers, California Fresh Fruit Association and Growing Coachella Valley seeks a preliminary injunction on the grounds that the ordinance is unconstitutionally vague, among other things. U.S. District Judge John W. Holcomb appeared troubled with several aspects of the ordinance including provisions that could result in lawsuits and penalties if an employer halted or reduced operations to avoid operating losses that may result from paying the City’s mandated pay increase. 

The ordinance was purportedly passed to compensate ag, grocery, restaurant and retail pharmacy workers for incurring the risks of working through the COVID-19 pandemic. However, Howard Sagaser, counsel for the ag associations, pointed out that the number of COVID-19 cases among agricultural workers was not even in the top 10 industries for infection rates in the City. Moreover, Coachella growers successfully worked to quickly vaccinate most of their workers.  

While the City’s motion to dismiss was to be heard at the same time as the preliminary injunction motion, the court did not address any of the arguments set out in the City’s motion, focusing instead on the key arguments in the preliminary injunction motion.

After hearing oral argument for about 45 minutes from attorneys for both sides, the court took the matter under submission. There is no timetable for the court to issue a ruling. The City’s ordinance is set to expire after 120 days (or June 10) but there is nothing currently stopping the City from extending the ordinance if it elects to do so – unless the court grants the preliminary injunction.

For additional information, contact Jason Resnick at 949-885-2253.

Cal/OSHA Standards Board Pumps Breaks on ETS Revisions

May 20th, 2021

On May 20, 2021, the Cal/OSHA Standards Board (Board) convened a public meeting to review proposed revisions to the November 2020 Emergency Temporary Standards (“ETS”) on COVID-19 Safety in the workplace. It was anticipated that the rules would be readopted with the revisions and sent to the Office of Administrative Law for an abbreviated five-day public notice and comment period as an emergency action before taking effect. 

However, one day before the hearing, Cal/OSHA Deputy Chief Eric Berg sent the Board a memo requesting that the Board not vote to approve the current proposal and instead allow Cal/OSHA time to present a new proposal at a future meeting. The about-face comes as the Centers for Disease Control and Prevention (CDC) last week updated its guidance to allow fully vaccinated persons to go without masks in some settings. In light of that update, California Health & Human Services Agency Secretary Dr. Mark Ghaly announced on May 17th that “California plans to implement the CDC’s guidelines around masking to allow fully vaccinated Californians to go without a mask in most indoor settings” starting June 15. Cal/OSHA apparently intends to align revisions to the ETS with this new guidance.

Accordingly, new language will be made publicly available on May 28, and the next hearing has been set for June 3rd at 10 a.m. PT.

Although California has announced the intent to fully re-open businesses on June 15 due to the improvements in COVID-19 infections and hospitalizations, and changes to the ETS are forthcoming, businesses will continue to be required to comply with the ETS measures until they are repealed.

For additional information, contact Jason Resnick at 949-885-2253 or Matthew Allen at 916-446-1435.

Welcome to the New Western Growers Legal Insights Newsletter

May 27th, 2021

Western Growers publishes an array of quality content to keep members informed. Whether it’s the timely twice-weekly newsletter, Spotlight; hot-off-the-press Special Spotlight; the bi-monthly deep dives in the Western Grower & Shipper Magazine; practical tips for produce sellers in Produce Insights; financial markets news nuggets in the WGFS Insights; or our industry interest stories on social; Western Growers has you covered.

Now we’re pleased to introduce you to Western Growers Legal Insights – the latest source for legal news and information for Western Growers members.  Please subscribe to this weekly newsletter if you want the latest information on new laws and cases that affect your workplace; bills that are making their way into the law books; more localized news and information; and best practices to ensure a legally complaint workplace.  

Welcome to the New Western Growers Legal Insights Newsletter. We hope you like it!

Western Growers Selects 13 Innovation Companies for First Harvest Automation Cohort

May 17th, 2021

Teams with potential to rapidly accelerate agricultural automation have been selected by farming and tech giants to participate in first-ever Global Harvest Automation Initiative cohort

IRVINE, Calif. (May 17, 2021) – Western Growers has selected 13 innovators for the inaugural cohort of its Global Harvest Automation Initiative (GHAI), a groundbreaking project that aims to automate 50 percent of specialty crop harvest within 10 years by accelerating the commercialization of harvest automation innovations.

The companies chosen for the cohort all specialize in agricultural robotics, mechanization and automation and will receive exclusive resources to help them launch and scale. This includes 1) Mentoring (mentor support from leading ag and tech companies, including feedback on product offerings, strategy and go-to-market options); 2) Field Trials (facilitation of field trials with growers); and 3) Case Studies (success of field trials will be published as case studies which will be available to growers). Most importantly, the cohort will receive systems integration to integrate industry-standard components (called technology stack) into their product roadmap so their robots can get into fields and markets faster.

“Most harvest startups build the entire technology stack themselves — from imaging and artificial intelligence to robotic end-effectors and automated movement up and down the fields. Western Growers’ Global Harvest Automation Initiative will now build this technology stack for them,” said Walt Duflock, vice president of innovation at Western Growers. “The innovators in this cohort are both startups and established companies that will get help integrating with industry-standard tractors, robot arms and sensors, which can commoditize up to 60–80% of the startup’s technology stack.”

The following are the innovation companies selected to receive hands-on support for all aspects of their businesses for rapid scaling:

  • Advanced Farm Technologies: provides advanced farming tools, such as automated strawberry harvesting robots, for harvesting services
  • Antobot: builds a team of small intelligent agriculture robots with advanced computer vision and robotics technology
  • Augean Robotics: helps solve the labor problem facing farmers by making autonomous collaborative robots
  • Earth Rover: makes field robots that automate scouting, harvesting and weeding, and provides farmers with per-plant data from seed to gate
  • FarmWise: designs driverless tractors that use machine learning and computer vision, rather than herbicides, to eradicate weeds from farmers’ fields
  • FFRobotics: develops a reliable, robust harvesting platform emulating human-hand picking process for efficient, cost-effective and bruise-free fruit harvesting
  • Muddy Machines: builds a new generation of field robots that help growers manage labor-intensive crops by conducting fieldwork
  • Oxbo International Corporation: designs, manufactures and distributes innovative harvesting equipment and related products
  • Ramsay Highlander: original equipment manufacturer and custom manufacturer of design-built harvesting aids, mechanical harvesting machines and specialized harvesting machines for the vegetable growing industry
  • Ripe Robotics: builds and manages fruit-picking robots
  • Robotics Plus: enables sustainable growth of the horticultural and fiber industries through robotics and automation
  • SPUDNIK Equipment Company LLC: manufactures potato harvesting and handling equipment
  • Strio AI: automates labor-intensive tasks for specialty growers, starting with runner cutting for strawberries
     

Each innovator was selected based on market traction and potential for successful scale as well as feedback from Western Grower members and industry groups, including the Washington Tree Fruit Research Commission.

GHAI Subject Matter Experts (SMEs), a group with expertise in precision ag, robotics, artificial intelligence, equipment manufacturing, harvest automation and grower/shipper operations, will work with the cohort on priorities that can accelerate their development efforts.

The SMEs are as follows:

  • Trimble: Mike Dentinger (Phase 1 Project Management) plus four Trimble SME’s
  • Bosch in North America: Andreas Fuchs, Fabian Henrici
  • ‎Oxbo International Corporation: Kathryn Van Weerdhuizen, Scott Korthuis (retired), Chris Schloesser (retired)
  • Spudnik Equipment Company LLC: David Offerdahl, Evan Steel
  • Ramsay Highlander: Frank Maconachy, Greg Weisenfeld
  • Driscoll’s (formerly): Michael Christensen
  • NWFM LLC: Keith Veselka
  • Red Rooster Consulting: Scott Jacky
  • ProMach: Don Wickstrum
  • Milano Technical Group: Dominic Milano, Soummya Datta
  • All-Phase Co: Ken Hite
  • Grimmway Farms: Jeff Morrison
  • Turlock Fruit Company: Neill Callis
  • Church Brothers Farms: Josh Ruiz
  • Illume Agriculture: Kevin Andrew
  • Superfresh Growers: Mike Van Pelt

 

Resources and detailed information about the GHAI can be found on the WG Center for Innovation & Technology webpage here.

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

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Novihum: Making Soil Better

May 14th, 2021

By Tim Linden

It’s a simple catch phrase but Novihum Technologies claims that its signature product—a soil enhancer—lives up to the company’s motto, “We make soil better.”

In the late 1990s and early 2000s, researchers at the Dresden University of Technology in Germany invented a soil enhancer based on modified lignite, a combustible, sedimentary rock. Some of those researchers founded Novihum Technologies in 2012 to find a way to bring the revolutionary product to market. Current CEO Andre Moreira, who was with BASF Venture Capital for 13 years, joined Novihum in 2017 to guide the marketing effort.

Over the past decade, the company has proven that they can make the technology scalable in an economically efficient way and are now taking it to market, with the United States in general being one of their major markets and California being a key target because of its concentration of specialty crops. In 2016, Moreira said a pilot plant was built in Dortmund, Germany, which can annually produce 1,000-1,400 tons of Novihum, which is the name of the product and the company. The CEO referred to this quantity as only a “drop in the ocean” and noted that the company is in the process of expanding operations, which would include a manufacturing facility in the United States.

Novihum joined the Western Growers Center for Innovation and Technology in 2018 and is using its Salinas space as its titular U.S. headquarters. Erin McAbee, the company’s technical sales manager, is the California contact for interested U.S. growers. She described Novihum the product as “granular humic.” She explained that many growers use compost on their land, which breaks down the soil and creates a stable organic matter. Novihum, she said, is already at that stage. The company’s website claims “it is chemically indistinguishable from natural stable humus found in the best soil with a guaranteed humic content (humines, humic acids and fulvic acids) of 60% or higher.”

McAbee said Novihum has all the benefits of compost with none of the negatives, such as pathogens and micro-plastics. And she said a huge benefit is that it is 100% consistent with each handful being exactly the same.

The various iterations of the core product—Novihum 25, Novihum Fine, Novihum Dispersa, Novihum Argil and Novihum Argil Extra—are designed for differents soil types and application methods but each contains the same base material.

Moreira said growers have a healthy skepticism of these types of materials and rightly so, but he said Novihum understands that approach and meets it face on with data. Quoting a business axiom, he noted: “In God we trust, everyone else bring data.”

He said many peer reviewed papers on the product have been published by university researchers and the company has many trials to back up its claim that the application of Novihum products will improve the soil and increase yields. But he is quick to note that every situation, crop and grower is different. McAbee said the data also shows that improving the soil with Novihum also improves water use efficiency and retention.

In California, among the ground on which successful trials have been run are lettuce fields, grape vineyards and citrus orchards. They have also done work in the Midwest on field crops and have positive results on the soil enhancer’s use on many crops in Europe. Moreira said while the company is already open for full orders, which are shipped by container from Europe, he said production will ramp up significantly over the next five years. The Novihum representatives said the product is priced competitively with the current overseas shipping costs absorbed as a marketing cost by the company. Today’s price in the U.S. is similar to what growers will be paying once the product is manufactured here.

McAbee said a full application of Novihum, such as 1500 pounds per acre, continually improves the soil without need for an annual application. However, many growers lease land and are more inclined to pay costs associated with shorter term improvements rather than a longer lasting—and more expensive—application. That is why the company has several different products, including those in a concentration that does call for an annual application.

One strong believer in the product is WG member Alan Boyce, who is executive chairman of Materra Farming Company, Bakersfield, CA. “We field trialed it several years ago in the desert and noticed the plants were much healthier.”

Consequently, the farming operation utilized Novihum on a new planting of lemons in Imperial County. “Right now, the trees are 36 months old and they look like they have been in the ground five years,” Boyce said.

He noted the soil in Imperial is very sandy without a lot of organic matter. The use of Novihum has improved the soil immensely. Boyce is proud of his cutting-edge farming philosophy and of being open to being the first farmer to try something. “We tried robotic spraying on a large pistachio planting, and it worked great. My farm team said we have a perfect score. So, I told them that means we aren’t trying enough new things. We are early adopters.”

He noted that when planting permanent trees, the company is very much an advocate of using soil amendments and other strategies that can speed up growth on the front end. “With permanent crops you can go broke waiting to be rich. If we can cut off 18 months on the front end (between planting and first harvest) that’s golden.”

He said Novihum is doing a great job on the lemons. He believes the trees have absorbed less salt and are less brittle than others in the area and have stronger growth. He is a believer. “We’re preparing ground right now for a date planting and we are going to use Novihum,” he said.

Innovation: Accelerating Harvest Automation – Platforms, Systems Integration and Roadmaps

May 14th, 2021

By Walt Duflock, Vice President, Innovation

Getting all the food planted by growers harvested remains a challenge, particularly in California as labor gets harder to find and more expensive due to increased regulation around minimum wage, overtime, break rules, and payment for non-productive time. Western Growers launched the Global Harvest Automation Initiative to help harvest robot startups get to market and scale faster.

For startups, WG is building a technology stack to help startups plug into technology partners easier. We are also putting together a startup cohort—selected with industry input—that will get strategy, go-to market support, field trials, and case studies.

For growers, WG is building an annual impact analysis to determine how much impact the automation startups are actually delivering and a startup traction report to help growers identify startups by crop and which are early stage, in testing, or in production and starting to scale.

The key effort for Q2 is the technology stack. Version 1.0 of the stack is being built by a project manager and a team of subject matter experts (SMEs) in ag and robotics. SMEs are from various industries and organizations including:

  • precision ag companies (Trimble, Bosch);
  • original equipment manufacturers and platform companies (Ramsay Highlander, Oxbow, and Spudnik);
  • AgTech engineering companies (Milano Technical Group, All Phase Agriculture, Red Rooster Engineering, and NWFM LLC); and
  • WG members that are among the world’s largest and best farming operators at adopting new technologies (Grimmway Farms, Turlock Fruit Company, Church Brothers Farms, Superfresh Growers, and Illume Agriculture).

This group of SMEs brings experience and passion to the harvest automation challenge, with many having decades of experience in this space. Their singular focus for Q2 is to help startups who want to integrate with partners more and develop less. Together, the group will build a set of documented interfaces so startups can connect to tractor manufacturers like John Deere, sensor manufacturers like Bosch, navigation equipment providers like Trimble, and other manufacturing partners. At the end of Q2, we will publish this set of interface documentation.

Once version 1.0 of the tech stack is complete, the real work begins – getting the stack used by startups to help accelerate their development and go-to market. The key enabler here will be systems integration (SI). WG will work with partners to provide SI work for the startups that the industry identified as furthest along and/or most promising with market traction. This systems integration work will include a full review of each cohort startup’s product roadmap and helping each startup develop a strategy for which components they want to use partners for and which components they want to build in-house. Then the startups build the stack architecture into their product roadmap. This gets their harvest automation solution to a point where the focus shifts to the business strategy of getting the solution into market faster.

At this point, WG will help the startups by providing introductions to channel partners in regions they are targeting. WG has a global network of partners that can help startups by providing trusted advisor status with local growers. Startups should provide a direct sales option for customers that want to buy that way, but most should also offer sales through channel partners. In addition, most of them should expect to offer both product (i.e., grower buys the harvest robot) and as-a-service (i.e., grower pays a usage-based subscription—usually per acre or per harvest yield metric) pricing options.

By the end of 2021, WG will achieve the following milestones:

  1. Tech Stack 1.0 launched (Q2)
  2. Systems integration efforts and business go-to market strategy launched (Q3)
  3. Roadmap for Tech Stack 2.0 released (Q4)
  4. Impact analysis and market traction released (Q4)

Guest Column: Low-Income Californians Must Help State Set Climate Change, Economic Justice Goals

May 14th, 2021

By Will Scott Jr.

(Editor’s Note: The following op-ed originally published in The Fresno Bee on April 2, 2021)

As a Central Valley farmer, I experience some of the most serious issues facing our state on a daily basis: climate change-fueled drought, navigating some of the strictest regulations, the painfully high cost of doing business and, most importantly, the erasure of struggling communities. In my fight to ensure African-American farmers’ visibility, I have learned that this invisibility goes far beyond farmers and overwhelmingly affects people of color across California.

Our farmers drive hundreds of miles each week to ensure that folks in need can access nutritious, farm-to-fork food. Many of the people I serve live at or near the poverty line and are otherwise reliant on easily accessible convenience stores to get their food. Finding fresh produce should not be a complicated process, and this experience is, unfortunately, a reality in many people’s daily lives.

Sustained population growth and a changing climate are placing increased pressure on California’s water and energy supplies. To meet the challenge of growing demand, we must adopt policies and diverse technologies that improve our resource and energy management without leaving behind those who often bear the brunt of policy shortcomings.

How can the folks I help feed be expected to shoulder the costs of electric vehicles when they can’t afford a new vehicle because they need that money to pay rent? Our policies cannot leave the most vulnerable community members out of the equation and purely focus on wealthy coastal residents that can otherwise afford a pricey Tesla. And, let’s be honest, where will they be able to charge their car reliably?

Our leadership and regulators have to do more to close the expanding gap between wealthy Californians and disadvantaged, low-income communities. Pushing for a ban on traditional cars, trucks and hybrids—on a seemingly arbitrary deadline—without an accurate idea of how it will affect working people is verging on absurd.

If this state has a genuine interest in tackling climate change issues and economic and environmental justice, it has to go from the bottom to the top. Policy must come from the people who must live with its consequences and not the elitist policymakers enriching themselves at our expense.

Case in point: during a recent legislative hearing, the California Air Resources Board was questioned about the results of a state audit on their programs. The audit supervisor highlighted that of the $42 million in disadvantaged community spending that CARB claimed in 2016, 80% of it took place outside of the disadvantaged communities themselves. CARB’s nonexistent data collection also came to light, being heavily criticized for not bothering to collect “one scintilla” of data to determine the effectiveness of their programs.

We cannot fixate on electrification if we are not helping those who cannot easily afford the rise in their cost of living. Taking care of rent or a mortgage, groceries, medicine, tuition, etc., is already difficult enough for most people—and a sharp rise in utility costs will bury families and cut off their economic opportunities.

Even as a farmer, drought years make agriculture much more energy-intensive, as we have to rely on pumping groundwater when there is not enough water on the surface. The thought of even higher electricity costs in light of California’s already high rates is scary enough. Still, it pales in comparison to my fear of how it will further crush marginalized communities.

To our legislators: Please exercise your oversight to ensure our most vulnerable neighbors are not forgotten in the transition to meet our climate goals. We deserve a real plan that provides a diverse, affordable and sustainable energy future that everyone can rely on. This erasure cannot continue. Everyone is entitled to a high quality of life, but we cannot let this be at the cost of elevating all people along the way.

Will Scott Jr. is a founder of the African-American Farmers of California. He is also a family farmer and organic produce distributor in the San Joaquin Valley.

RSP Now Offers Alternatives to Traditional 401(k) Plans

May 14th, 2021

By Matt Lewis, President, Western Growers Financial Services

There has been a lot of hype around the recent change in administrator and custodian for the Western Growers Retirement Security Plan (RSP), and for good reason. With Northwest Plan Services (NWPS) as our new Third Party Administrator and Charles Schwab as the new custodian of our assets, RSP now offers alternative retirement vehicles to help agricultural employers overcome the challenges associated with traditional 401(k) plans.

When it comes to competing for top talent, agricultural employers are no different than other businesses. Robust compensation packages, complete with a solid retirement plan, are crucial to attracting and retaining key members of your management team. However, because of restrictions by the IRS, typical 401(k), profit-sharing and other qualified plans often do not meet the savings and tax planning needs of highly compensated employees.

As I discussed in my last column, qualified plans are funded through tax-deferred contributions from the employee, and all employees who meet the eligibility requirements must be permitted to participate. Importantly, the benefits must be proportionately equal for all employees, with penalties and returns of participant contributions if a company fails Employee Retirement Income Security Act (ERISA) rules of discrimination.

This can pose unique problems for agricultural employers. The agricultural workforce is largely seasonal, and many employees may not elect or even want to participate in employer-sponsored 401(k) plans, which can hurt those participants who are saving in their retirement accounts.

Backed by NWPS and Charles Schwab, RSP employers now have the option of providing their employees with several powerful retirement tools in addition to, or in lieu of, traditional 401(k) plans.

Nonqualified Deferred Compensation Plans

Governed by Section 409(a) of the Internal Revenue Code, a nonqualified deferred compensation plan allows employees to defer a greater percentage of their compensation than is allowed by the IRS in 401(k) or other qualified plans.

There are several important differences between qualified and nonqualified plans. While qualified plans use pre-tax dollars, the employee will pay taxes on their income before contributing to a nonqualified plan. However, there are no deferral limits for nonqualified plans, while employee 401(k) contributions top off at $19,500 in 2021 ($26,000 for those 50 and older).

From an employer perspective, contributions to a qualified plan may be deducted, but contributions to a nonqualified plan generally cannot be written off. However, while qualified plans must be offered to all employees, nonqualified plans can be made available to select individuals; often called carve-out plans, making it an appealing option for companies looking to provide expanded retirement savings for certain employees.

Practically speaking, nonqualified plans look very similar to 401(k)-type plans, with many of the same investment options and similar fees and expenses, making it an important employee benefit that may help you recruit and retain top talent.

Cross-Tested Profit-Sharing Plans

Cross-testing allows a company to define separate classes of employees and allocate profit sharing contributions on a different percentage basis to each class. This plan allows businesses to contribute a higher rate to the owner and other highly compensated employees while also providing a significant benefit to the rest of the employees.

Like other qualified plans, the contribution formula must pass the average benefits test, which states that the average benefit provided to the non-highly compensated employees is at least 70% of the average benefit provided to highly compensated employees.

Additionally, non-highly compensated employees must receive an allocation percentage of at least 5% of their compensation or one-third of the allocation rate of the highly compensated employee with the highest allocation rate. This is called a minimum allocation gateway.

In one scenario, the owner could receive 9% of compensation while the other eligible employees would receive 3%, which passes the one-third minimum allocation gateway. In another scenario, highly compensated employees could receive a higher allocation rate, typically 14% to 25% of compensation, while the non-highly compensated employees would receive 5%, which passes the 5% minimum allocation gateway.

Consider Participating in RSP

If your company has never considered offering a retirement plan because of the eligibility requirements associated with typical 401(k) plans or would like to provide additional savings options to a small group of top individuals, RSP employers now have access to more flexible investment vehicles.

To learn more about RSP’s expanded capabilities to better serve the retirement needs of our members and their employees, please contact me at [email protected].

6 W’s of Groundbreaking Food Safety Data Sharing Project

May 14th, 2021

By De Ann Davis, Senior Vice President, Science

Western Growers is partnering with Creme Global—a leading scientific modeling, data analytics, and computing company—to create a comprehensive food safety data-sharing tool. The project begins with a focus on pre-harvest pathogen testing data and other meta-data, which is collected from participating growers autonomously and anonymously to improve and enhance food safety management.

WHO: The project is under development with six leafy greens growers—all of whom are WG members. Once a food safety dashboard is built, all WG members will be eligible to engage with the digital tool and access the dashboard.

WHAT: The end result will be an easy-to-use online tool that is flexible to crop and geographical location. The tool is designed to advance and learn from shared data and will show participating growers the power of their data as well as the power of their collective data in food safety.

– Goal 1: Provide fresh produce growers a private version of the dashboard combined with an ability to benchmark their food safety efforts.

– Goal 2: Provide insight into food safety practices across the industry as a whole.

WHEN: We are currently in phase 1 of the 3-phase timeline.

– Phase 1: Data Collection

   Creme Global is collecting pre-harvest information from the six pilot program participants, combining it with other key data sets like weather and geographical mapping, and will use this data to build a tool that provides context to pre-harvest testing data.

– Phase 2: Developing an Interactive, Grower-Friendly Dashboard

   The six pilot program participants will steer the development of the dashboard and app. This includes weighing in on what features matter most as well as the functionality of the dashboard and app.

– Phase 3: Analyzing the Aggregated Data

o   BENCHMARKING: Users of our new food safety tool will have the ability to compare their food safety management to similar growing operations and assess their performance. Previously unanswerable questions can now be addressed, such as “how do my testing frequency and results compare to other farmers growing the same crop” and “are similar growers doing a better job to adhering to their pre-harvest standard operating procedures than my operation?”

o INDUSTRY INSIGHT: The data, which has all been fully anonymized and de-identified, will be combined and simplified to answer testing-type questions such as “how many tests were done during September on romaine lettuce?” and “of those tests, how many were done within 3 days of harvest?”

o WIDESPREAD ANALYSIS: Once a substantial amount of data is gathered, WG will be able to run industry reports to show participating growers and stakeholders essential information and trends. For example, this model system will allow farmers to identify trends in water quality across a region or a specific water district and to plan accordingly.

WHERE: Online! The platform will be accessible from your computer and phone.

WHY: Currently, there’s no standardized way for growers to look at how their neighbors are operating in terms of food safety. This project will allow growers to understand how they are doing as well as understand the performance of similar operations – all anonymously.

– Your Data is Yours: Neither WG nor any other participants will be able to see your data or your dashboard; only you can. When you submit your data for aggregation and big-picture analyses, all data will be coded without identifying information, such as names or companies. The database is fully private and you can withdraw your data at any point.

– No Additional Resources Needed: We are making the tool as automated as possible, so sharing your data will be simple and easy.

HOW: When the tool is rolled out widely, WG members desiring to participate will have an annual fee of $1,500. This includes a one-on-one consultation with Creme Global to set up the best and easiest way for you to share your data. You will also have 24/7 access to crucial data needed to enhance food safety operations.

Western Growers is THE FIRST to embark on this type of expansive project. This monumental collaboration, if accomplished, will not only benefit our members but the ag industry, the research community and government sectors. In fact, the U.S. Food and Drug Administration has provided us with an official letter of support, stating that this project is in line with their vision of the future of food safety.

For this Creme Global Food Safety Data Sharing Tool to be successful and provide benefit, significant participation from fresh produce growers is needed. We urge you to embark on this journey with us.

The Next Generation of Employee Benefits is Here

May 14th, 2021

By Eric Trost, Vice President of Employee Benefits, Western Growers Insurance Services

You have been stuck with skyrocketing healthcare costs while your employees face the maze of medical care without the adequate tools and resources they need to be healthy. You can’t measure what you can’t see!

Welcome to Western Growers Insurance Services and Western Growers Assurance Trust—a better way of doing fully insured employee benefits. The next generation of benefits is here.

You have been in a committed relationship with your carrier and broker for far too long. Isn’t it time to start a relationship with a partner who will make it all about you? The answer is YES. You deserve a flexible and transparent partner who is responsive to your needs. That is not what you get with the big carriers or traditional brokers. Do not let the status quo be your answer for employee health and benefits. It is time to bring back a partner that values personalized member education and advocacy with tried-and-true agricultural benefits knowledge.

We have good news for you. If you are ready to make a change, so are we. We are partnering with employers to administer a benefits solution that is designed around people. We are on a mission to humanize employee health and benefits while lowering costs and improving health outcomes. Our new innovative approach to fully insured employee benefits is built around a truly transparent model, supportive administrative services, people-focused healthcare literacy and clinical care management along with strong cost management strategies—because you can’t have a health plan without them.

Western Growers’ transparent health plans dig deep into claims data and serve up insightful executive analytics that allows us to give an unparalleled level of responsiveness and support to our agricultural clients.

This groundbreaking health plan offers several key benefits:

  • analytics at your fingertips
  • in-depth member analytics
  • cost management insights
  • informative population health management

Having all the data simplifies analysis. You will be able to identify problems and understand what conditions are impacting your employees as well as review high-cost medical claims, pharmacy, office visits, and more. Metrics and health data inspire confidence that a health benefits strategy contributes to business success. All these insights empower Western Growers to fine-tune your health plan, give you complete visibility, guide your decision-making and make effective recommendations in an effort to help you manage healthcare as an investment vs. an expense.

Rooted in 90 plus years of agricultural experience, we offer support and guidance on behalf of employers. Focus on your business—we’ve got the rest. From our employee education and support to our large claims management and adjudication, human resources, and compliance administration, we’re arming you with the tools, data and services you need to deliver a better benefits experience.

We understand the amount of control you have over the price of the insurance is often limited. The influence and control that you can, and must, have over other related areas of your business are beyond significant.

We manage aggressively as possible the price of insurance, but we go beyond the price of insurance to control the cost of benefits by managing the five key elements of employee-related expenses:

  1. Employee engagement
  2. Employee communication
  3. Performance management
  4. Employee well-being
  5. Health care management

Your employees and their health outcomes are a top priority for us. We take a member-centered, integrated approach to care management. This means we consider all your employees’ needs, medical, behavioral and psychosocial when creating their care plans. We collaborate closely with you, your employees and providers to close care gaps and facilitate clear communication as our team helps employees maximize the value of their health plans and reach their optimal health outcomes. Our multi-disciplinary team addresses health and well-being year-round—not just at open enrollment. We also have offerings that will appeal to your healthiest employees and employees who deal with complex chronic conditions.

Reclaim healthcare as an investment vs. an expense. The healthcare system is complicated, and we are here to change that. You can’t measure what you can’t see! Our game-changing approach will help you identify the total cost of healthcare by providing you exactly what you need. We will give you more control over costs as well as offer people-focused care and administrative services that support you in delivering a better benefits experience.

Convenient Access to Health Care

May 14th, 2021

Western Growers Assurance Trust (WGAT) has specialized in offering affordable, convenient, and customizable benefit plans to meet the diverse needs of owners, managers, field workers, and seasonal employees in the agriculture industry for more than 60 years.

Recognizing the unique population we serve, we created the Cedar Network more than a decade ago as an effective solution for employers in agriculture to offer affordable and basic health care coverage and prevention care for their employees. We began offering our Cedar Health and Wellness Centers and associated Cedar Network in every WGAT plan to deliver exceptional care options with lower copays than standard plans. We have since expanded our list of network providers and health and wellness centers throughout California. It remains a popular option, especially for employers in the agricultural community.

Our Cedar Health and Wellness Centers, located in Oxnard, Santa Maria, Salinas, and Watsonville, provide:

  • Bilingual service
  • Primary and preventive care
  • Low cost, high-quality patient care
  • Convenient hours and locations
  • Minimal wait times
  • Immunizations and flu shots
  • Routine physicals and wellness exams
  • Pediatric care for children ages 2+

Our Cedar Health and Wellness Centers are beneficial for both employers and employees by allowing significant savings in health care costs. Here are other ways our Cedar Health and Wellness Centers help contribute to lower costs:

  • Gives employees convenient access to local health services and helps decrease the use of most costly urgent care centers and emergency rooms.
  • Encourages employees to get their regular preventive screenings by making it easier to visit their local health center than seeing their regular doctor and for a lower copay. These screenings can also help a doctor catch potential chronic health conditions in the early stages when the treatment cost is far less than if the condition has progressed.
  • Makes it easier for employees to see a physician when they have a cold or flu so they can heal quicker and be more productive and take less days off from work than if they didn’t go to see a doctor because it was less convenient.
  • Enables employees to receive timely treatment for illness and injuries.
  • Helps reduce the number of absences at work due to illness.

The Cedar Network is included in every WGAT health plan, and self-funded employers can purchase the network as an add-on to their health plan. For more information on purchasing a WGAT health plan, which includes the Cedar Network, please contact Western Growers Insurance Services at (800) 333-4WGA.

In addition to serving as executive vice president of Western Growers Assurance Trust, David Zanze is the president of Pinnacle Claims Management, Inc.

The Supreme Court Can Protect the Rights of California Farmers

May 14th, 2021

By James Burling

The United States Supreme Court is about to decide a case that was planted in the fertile soil of California’s agricultural politics, but which has its roots going back to the first stirrings of colonial resistance against the British empire. What’s more, the results in Cedar Point Nursery v. Hassid will reverberate across the nation if the Court agrees that landowners need not suffer from state-sponsored trespass.

In 1975, California adopted the Agricultural Labor Relations Act, which extended rights of organized labor to agricultural operations. Shortly thereafter, the state adopted regulations that gave union organizers the right to go onto private agricultural land “for the purpose of meeting and talking with employees and soliciting their support.” This access can last for an hour at a time, three times a day, for 120 days each year. While most farms have not been subject to this level of intrusion, the key point is that they can be, and farm owners have no legal means to stop the invasions.

Moreover, these incursions are not necessarily quiet affairs where a few organizers set up a table or pass out leaflets. A video recently captured by Cedar Point employees makes plain the union organizers can come onto property noisily and en masse. If the tactic was to intimidate, it worked.

Government-sanctioned intrusions onto private property have never been acceptable in the United States. Indeed, such trespasses by the British sowed the seeds for the Revolution. With the “Writs of Assistance,” British officers and their servants could enter private property at will and without justification, looking for violations of customs laws.

In a famed 1861 oration against the Writs of Assistance, James Otis, a Massachusetts lawyer and political activist who has been described as “the Founding Father of the Fourth Amendment,” argued in a packed courtroom against the writs: “Now one of the most essential branches of English liberty is the freedom of one’s house. A man’s house is his castle; and while he is quiet, he is as well guarded as a prince in his castle. This writ, if it should be declared legal, would totally annihilate this privilege.”

While Otis lost the case, it stirred the colonists to action. A young John Adams was in the courtroom and later wrote, “then and there the child independence was born.” In time we had our Revolution and later our Constitution and the Bill of Rights—the latter of which contained two provisions protecting private property. The 4th Amendment protects against unlawful searches and seizures, and the 5th Amendment says that private property cannot be taken for public use without the payment of just compensation.

When Cedar Point Nursery was besieged by union organizers, they asked Pacific Legal Foundation for help. It was plain to us that the state had given the organizers an access easement, taken it from the landowners without paying for it. Unlike a limited health and safety inspection by government employees designed to protect workers from serious harm, this was a blatant example of one interest group convincing a sympathetic legislature to erode the rights of farmers for political gain.

While the idea of union access might have had some appeal generations ago when farmworkers were isolated from the general community, that is no longer the case. Most workers live nearby and can be contacted by the organizers outside their place of work. But, of course, the sense of intimidation cannot be so easily replicated, which is why the authority to go onto private property can be so appealing.

But that authority is given by taking the rights of property owners. And for years, the Supreme Court has held that when the government sanctions the physical invasion of private property, there has been an unconstitutional taking. In one famous case from 1982, Loretto v. Teleprompter Manhattan CATV Corp., Justice Thurgood Marshall wrote for the Court that even allowing a cable television company to put a few coaxial cables and junction boxes on a privately owned apartment building was an unconstitutional taking. Repeatedly, the Court has referred to Loretto in order to describe takings that cannot be tolerated. In 1987, in Nollan v. California Coastal Commission, the commission demanded that homeowners allow the public to walk across private beachfront property. Because this was an uncompensated physical invasion, it too constituted an unconstitutional taking.

In Cedar Point Nursery, the details may be different, but the principle is the same: It is unconstitutional to force landowners to allow uninvited outsiders to trespass. Dozens of friend-of-the-court briefs have been filed on both sides of the case, including by Western Growers, proving that the stakes are high. The case was argued on March 22 of this year; we expect a decision will come down by June.

Colorado Legislator Profile: Senator Michael Bennet — Focusing on Ag Issues

May 14th, 2021

Senator Bennet, a Democrat, was first appointed to a vacant seat in the U.S. Senate to represent Colorado in 2009. He was elected in 2010 and re-elected in 2016.

What legislation are you most focused on passing during the 117th Congress?

As Congress turns its attention to an infrastructure package to create jobs and grow our economy, I will work to put our farmers and ranchers, water systems, natural landscapes, and rural communities at the forefront. I was pleased to see President Biden include my Outdoor Restoration Partnership Act in his American Jobs Plan. My bipartisan bill would invest billions into collaborative, locally led forest and watershed restoration projects across the West. If it’s done right, we can create millions of good paying jobs in rural parts of the country.

I also plan to introduce the Senate companion bill to the House’s Farm Workforce Modernization Act with Senator Mike Crapo (R-Idaho). This legislation would make much-needed improvements to our immigration system for producers and farmworkers. It would reform the H-2A agricultural guestworker program and create a visa program specifically designed for our country’s agricultural sector. The Farm Workforce Modernization Act passed the House of Representatives in March 2021 on a bipartisan vote; it’s time for the Senate to do its job and pass this legislation.

What have you done on immigration?

In 2013, I was part of a group known as the Gang of Eight—four Democrats and four Republicans—who put together a proposal for comprehensive immigration reform. Our bill had $46 billion for sophisticated, 21st century border security, supported seasonal workers and business owners, and created a pathway to citizenship for 11 million undocumented immigrants. While our proposal passed on the Senate floor with 68 votes, it failed in the House of Representatives. The Gang of Eight worked well together because we understood that immigration has been a defining characteristic of American history and those who come to our country are an engine of innovation that strengthen communities in Colorado and across the country.

That’s why I’m working on the Farm Workforce Modernization Act to reform the H-2A program and provide a pathway to legal status for certain farmworkers. Republicans and Democrats support this legislation because they understand we need to bring certainty to our country’s agriculture industry and the hard-working producers and farmworkers who have put their lives on the line to feed and sustain the nation during the COVID-19 pandemic.

You have a history of winning tough elections. What do you think sets you apart from other legislators? What do you credit your success to as legislator?

My job as a senator is to listen and take Coloradans’ experiences and ideas with me back to Washington to make life better for them. Over the last decade, I’ve held more than 2,200 events and meetings, and driven more than 100,000 miles across Colorado because it’s important that I hear from Coloradans in every corner of our state to help inform the decisions I make in Washington. Before every Farm Bill, I’ve held at least 20 listening sessions to find out what is and isn’t working for Colorado’s agricultural community. Since the beginning of the COVID-19 pandemic, I’ve visited all 64 counties to hear from Coloradans and local public health officials about the challenges they have faced. Coloradans know what their community needs. It has been my honor to be their voice in Washington.

What has been the toughest part of your job?

If I had to sum up what I have heard in my town halls with Coloradans over the last decade it would be this: people are working really hard, but they cannot afford some combination of health care, affordable housing, childcare, and higher education. They worry they can’t save for the future and their children will have less opportunity than they had. That’s because for the last 50 years, we have had an economy that has worked really well for the top 10 percent, and not very well for the rest of America. For over a decade we’ve had a federal government that is utterly dysfunctional. It’s our moral imperative to get past the partisan gridlock in Washington and build an economy that provides opportunity for everyone, not just those at the top.

While I’ve been frustrated with Washington’s dysfunction and inaction to tackle some of the biggest challenges of our time—such as economic inequality, climate change, and the growing threat of China—Coloradans have kept me motivated and focused on making change. For example, I’ve worked closely with Robert Sakata and Bruce Talbott, two Colorado growers, to ensure the Farm Bill we work on in the Senate Agriculture Committee reflects the needs of growers across our state. It’s really important to me that the work we do in Washington is rooted in Colorado.

What has been the highlight of your career?

In America today, most people cannot afford a middle-class life. That hurts everyone—but perhaps no one more than our children. In America today, there are 10 million children living in poverty. To me, that is unacceptable. That’s why for many years, I’ve been pushing to expand the Child Tax Credit to provide a measure of economic security to middle-class and low-income families.

I first introduced the American Family Act in 2017 with Senator Sherrod Brown (D-Ohio). The American Family Act boosts the Child Tax Credit to $3,000 per child for children age 6 and older—and $3,600 per child for children under age 6—and delivers the credit monthly to help families meet their expenses throughout the year. For the first time, the bill makes the credit fully refundable so that it no longer excludes an estimated 27 million low-income children, including 350,000 Colorado children, who have been left out of the credit’s full value.

I was thrilled that President Biden included the expansion of the Child Tax Credit, based on my bill, in the American Rescue Plan, which was signed into law earlier this year. It will cut child poverty nearly in half in one year and provide economic security to millions of families. We need to make the tax credit expansion permanent to creating lasting change for America’s children and families.

What challenges lie ahead for agriculture?

Over 11 years on the Agriculture Committee, we’ve been able to pass a lot of bipartisan legislation that has been good for the West and for the country. It’s been one of the most gratifying parts of my job, but it’s also left me with two enduring lessons for our work going forward.

First, climate change is a threat to our Western economy and way of life, and if we’re going to tackle it in a serious way, growers, farmers, and ranchers have to be part of the solution. I’ve traversed Colorado to learn how the agricultural community is adapting to conditions that are growing hotter and drier each year. Wherever I go, I see people collaborating and using their ingenuity to face this incredible challenge. I strongly believe that producers, farmers, and ranchers across Colorado are already doing the work needed to inform climate policy at a national level.

Second, as a country, we have to start treating America’s natural landscape—our forests and our watersheds—as infrastructure. Congress needs to appreciate that in Colorado and across the West, our forests are as essential to the economy as the Lincoln Tunnel is to New York. If Congress took that view, I doubt we’d be in the mess we’re in…a situation where, as a country, we’ve spent $67.3 billion in the last five years on wildfire response and recovery, rather than investing in forest restoration and wildfire mitigation. That’s why I reintroduced the Outdoor Restoration Partnership Act, which would create a $60 billion fund to support forest and watershed restoration projects across the West, with $20 billion of that going directly to locally led projects on forest health, invasive species removal, and watershed clean-up.

Is the trajectory of your political career how you envisioned it back in 2009?

I arrived in the Senate in early 2009 during the depths of the Great Recession. I had little experience with how Washington worked, having spent the years prior serving as superintendent of Denver Public Schools. Over the past decade, my expectations have been thwarted by the level of dysfunction and mindless partisanship in Washington. Since joining the Senate, I’ve focused on doing what’s best for Colorado and the country.

I’ve worked across the aisle—from drafting comprehensive immigration reform to passing two Farm Bills that addressed the needs growers, farmers, ranchers, and producers in the West—but Washington has failed to respond to the will of the American people. Washington has failed to invest in the next generation. I am hopeful that as we bridge our way out of the public health and economic crisis Congress can work together to unite the country and earn the confidence of the American people by responding to their needs.

Working together with Western Growers and our member farmers, what are some of your proudest accomplishments in helping advance the fresh produce industry?

One of the best parts of representing Colorado is learning from people like Robert Sakata and Glenn Hirakata about what our growers, farmers, ranchers, and producers need to sustain their operations—and continue to strengthen our Western economy. They’ve taught me a lot about trade policy and the challenges the agricultural community faces with our broken immigration system.

I have heard from fruit and vegetable producers across Colorado about how extreme weather and widespread, long-term drought conditions have devastated their operations. That’s why I’ve worked with Coloradans and my colleagues in Washington in a bipartisan way to support innovative approaches to climate resilience and drought resilience.

In the 2014 Farm Bill, I helped write the Regional Conservation Partnership Program (RCPP), which has funded multiple projects in Colorado, including in the Upper Colorado Headwaters and in the Lower Gunnison. In the 2018 Farm Bill, I worked with former Senator Cory Gardner to expand funding for voluntary water conservation efforts through USDA conservation programs. While this was a good start, there is still more to do when it comes to water infrastructure, drought resilience, and forest health.

I’m proud of the bipartisan work I’ve done with the agricultural community in Colorado to write the 2014 and 2018 Farm Bill. Together, we made critical investments in Colorado agriculture, conserved land and water, and provided new opportunities for rural economic growth. As we prepare for the 2023 Farm Bill, I look forward to hosting more Farm Bill listening sessions across Colorado. I’ve learned so much from these conversations. Please don’t feel like you have to wait for a listening session to reach out to our office. I encourage you to reach out to our office any time. You can visit www.bennet.senate.gov to write our office and locate a phone number for our Washington office or our regional offices across Colorado.

Varietal Research: Still a Laborious Effort…Albeit on a Faster Track

May 14th, 2021

By Tim Linden

Building that better variety is a time-consuming endeavor, but over the years seed breeders have developed techniques to target desirable traits and speed up the process. Though these efforts can shave several years off a successful launch of a new variety, development is still measured in years with five years appearing to be a typical average for a new variety to survive the trial period and be offered to the grower community.

“As a rule, it still takes a relatively long time to bring a new variety to market,” said Jeff Zischke, senior director of research and development, Sakata Seed America, Salinas, CA. “But there are techniques that have been developed that make a difference.”

Marcio Pais de Arruda, a tomato breeder for HM. Clause in Davis, CA, made a similar point during an interview covering many different aspects of varietal research. “The way we make hybrids hasn’t dramatically changed,” he said, “but we have developed innovative techniques and processes that allow us go faster and help us to be more precise.”

He said not too long ago, the normal time to develop a new variety and bring it to market was about seven years. Now he says it can be done as quickly as three to five years, especially if the effort involves adding a new trait to an existing variety.

Zischke estimated that it typically takes five to six years in today’s environment. While some have lamented that more advanced techniques involving gene editing are not yet available, the Sakata researcher does not fret about it. “I am a big believer in conventional plant breeding,” he said. “Plant breeders continue to make steady improvements using these techniques.”

He has no doubt that gene editing will eventually be utilized in varietal development but it is essential that we gain the public’s trust. Zischke said breeders have done very well in utilizing time-saving and trait-targeting techniques to speed up the process and reduce the misses.

He discussed a number of those processes in detail which will only be briefly discussed in this report.

He said one technique researchers now use is “breeding pools,” which are used to generate parental groups with common characteristics. Zischke said if you are looking to transfer a specific trait from one parent to another in the same pool, you don’t have to start from scratch. Most of the characteristics of a line are common within the pool. Crosses between pools is generally a proven formula for making potential products. This, of course, depends on how disciplined the breeder is with his pools and how well they complement each other.

Zischke said another time-saving technique is the use of tissue culture technology to generate dihaploid plants. A single plant will generate a finished and genetically fixed inbred line. This is not possible with all species and not all dihaploid plants yield useful lines, but when successful, it can dramatically speed up the process of inbred or parental line development.

Marker assisted selection is another area where advances can help in the development of new varieties. Linked markers can easily identify which plants carry specific traits and allow breeders to more rapidly use these traits in the breeding effort.

Pais de Arruda agreed that the way vegetable breeders make a hybrid has not changed dramatically, but he said new, innovative techniques and processes do make the work easier and quicker. He said geneticists and breeders have developed new ways of using markers that help them in many ways.

For example, he said breeding using information across the genome of the plants allows for more predictability. A breeder does not necessarily need to go through extensive field testing of a larger number of combinations to determine how they will all react under known circumstances. Some combinations can be eliminated before they are even made, based on DNA information. They can also follow genes/traits of interests with molecular markers to add them to a line, which allows for faster development of a new variety with added value.

The HM. Clause tomato breeder said there have also been many advances that speed up the process on the front end. Multiple generations can be developed in a year’s time as new processes and technology allow for moving through generations without growing out an entire crop.

Pais de Arruda said breeding programs now include experts in other disciplines to help analyze winners and losers at a molecular level and again decrease the number of crosses that must be grown out in the field. He has been in the HM. Clause tomato breeding program for five years and he said within that short time the number of scientists involved (plant pathologists, genetics and biometrics support) has increased, with much more work being done on the gene level.

“Predictive breeding” is becoming a common practice with breeders running thousands of molecular markers and then they can predict, with some degree of certainty, how the plant will perform in the field without actually planting it. Of course, these materials are planted and checked and their predictive models are adjusted when necessary. Pais de Arruda said this technique allows a breeder to be more focused and better use the resources available to them.

There will continue to be advances in how new varieties are developed, but what probably won’t change is the top trait breeders are looking for. “Yield is still number one,” said Zischke.

Growers necessarily have to measure the success of any variety by revenue per acre and that equates to tonnage. The veteran seed breeder said there are many other traits that are important—disease resistance, quality, plant vigor and taste, to name a few,—but if a variety doesn’t offer a competitive yield profile, no one is going to grow it.

He did offer that Sakata continues to improve its varieties in all these areas. He also noted that in Florida the company’s tomato breeding program has made major gains in a short amount of time on improving flavor. They are using markers for flavor components developed by Harry Klee, Ph.D. of the University of Florida, and are selecting different combinations of these flavor alleles to optimize flavor and validating with sensory panels. These genetic markers allowed Sakata to accomplish in a handful of years what could have taken much longer through conventional breeding.

Pais de Arruda listed the top three varietal characteristics for tomatoes as yield, quality and flavor. “Yield has to be number one,” he said, indicating that without a yield factor that allows for the making of a profit, nothing else matters.

But he noted that quality is very important and firmness is still something that has to be present in fresh market tomatoes, which is his specialty. Flavor is another important trait that makes his top three for obvious reasons.

While Pais de Arruda did list a top three, he said a successful variety has to have many other good traits including good fruit size and long shelf life. He added that the plant also must have good cover to protect fresh market tomatoes as they grow.

What’s Trending: Leveraging Current Events, Holidays for Massive Wins

May 14th, 2021

From Easter to Election Day and beyond, holidays and current events provide companies a prime opportunity to cultivate and grow an engaged audience.

By building a digital campaign around a specific date or cause, you can create a far-reaching movement that spurs people to action. In fact, this strategy can also result in gaining more loyal customers and brand ambassadors who are more likely to re-engage with your company throughout the year.

Here are three case studies of farming and agricultural organizations that have successfully leveraged the calendar for a massive win.

SOCIAL MEDIA CASE STUDY: California Avocado Commission

•  Campaign: Avocados or Dragon Eggs?

•  Current Event: The start of the highly anticipated final season of the popular HBO Series “Game of Thrones” in mid-April 2019

•  Tactics:

–   “Avocados or Dragon Eggs?” meme on social media: With a tongue-in-cheek nod to the final “Game of Thrones” season, the California Avocado Commission (CAC) designed and posted an “Avocados or Dragon Eggs?” graphic on its Instagram, Facebook and Twitter accounts to signal that winter is over and that it’s time for California Hass avocados again.

–   Tapping Influencers: CAC tapped registered dietitian nutritionist Liz Shaw to spread the word about the start of the season and health aspects of the fruit, contributing “Cook Like a Californian” content. CAC also encouraged other retail dietitians to use some of Shaw’s recipes, boosting the scope of the program.

•  Result:

–   The highest level of engagement CAC had ever seen on social media: 350,000 impressions and 36,000 likes, 3,000 shares/saves and 800 comments.

–   CAC also distributed a press release to ag trade media about the campaign’s success, garnering an additional 219,000 impressions.

MARKETING CASE STUDY: LGS Specialty Sales

•  Campaign: #BeMyClementine

•  Holiday: Valentine’s Day 2021

•  Tactics:

–   Pink Darling Clementine Packaging: In honor of Valentine’s Day, LGS Specialty Sales—a Western Growers member and leading importer of citrus, avocados, grapes and persimmons—offered a festive, limited-time pink packaging for its proprietary Darling Clementine line. The packaging was only available throughout the month of February at selected retailers.

–   Instagram #BeMyClementine competition: To promote its pink packaging, LGS hosted a giveaway on its @darlingcitrus Instagram account where customers could enter to win a special Valentine’s Day prize. Additionally, to support the retailers who carried the pink-packaged clementines, LGS offered customers an additional entry if they found the pink packaging in stores.

–   Press Release: To draw shoppers to the produce aisle and drum up attention for their social media competition, LSG distributed a press release to the media announcing the Valentine’s Day packaging and social media competition.

•  Result: Nearly 1,000 consumers participated in the #BeMyClementine social media competition, with three winners taking home prizes.

ADVOCACY CASE STUDY: Family Farmers Against Prop 15 (a coalition of leading agricultural organizations including Western Growers, California Farm Bureau and Agricultural Council of California)

•  Campaign: Family Farmers Against
Prop 15

•  Current Event: Ballot Proposition, Election Day 2020

•  Tactics:

–   Website: The coalition developed and launched cafarmersagainstprop15.com to serve as a hub for voters to take action by either donating to the cause or joining the coalition. The website also housed information about how the proposition would affect family farmers, as well as press releases and sharable infographics and videos.

–   YouTube Videos: A series of videos (many of which featured WG members) were created and shared on social media, the website, and through digital advertising to help educate voters on the potentially negative effects of Prop 15.

–   Radio Ads: Several radio spots featuring California farmers were produced and aired on rural stations throughout the state.

–   Media Relations: The coalition distributed several press releases at strategic points during the campaign, which were amplified by the public relations efforts of the participating coalition members.

–   Social Media: The coalition built Twitter and Facebook accounts specific for the campaign that showcased:

o   Links to newspaper and magazine articles that spoke about the campaign/issue

o   Compelling infographics with voter-tested messaging

o   Short videos featuring farmers sharing how Prop 15 would harm their family farm as well as farmers throughout the state

o   “Vote Early” and “Vote” infographics posted when ballots hit mailboxes and on election day encouraging the public to vote “no” on Prop 15

–   Customizable Digital Assets: To easily allow voters to show support on social media for the Family Farmers Against Prop 15 campaign, “Vote NO on Prop 15” social frames and banner images were available to download, customize and use.

–   Letters to legislators and community leaders: The coalition sent letters to California Governor Gavin Newsom and select mayors throughout California detailing how Prop 15 would have exposed much of California’s food supply to steep property tax increases.

•  Result: The measure was defeated with 52% of California voters rejecting Prop 15.

Trade Practices: Best Practices to Avoid Running Afoul of Walmart’s OTIF Policy

May 14th, 2021

By Bryan Nickerson, Manager, Trade Practices & Commodity Services

Retailer supplier performance compliance policies have been in force for many years with varying degrees of success. However, the rigorous requirements of the Walmart policy have caused considerable concern among shippers regarding how to retain Walmart’s high volume produce business and avoid fines.

According to McKinsey & Co., the On-Time In-Full (OTIF) metric measures the extent to which shipments are delivered to their destination according to both the quantity and schedule specified on the order. Walmart introduced its OTIF policy in 2017, however, it is only recently that produce shippers have seen a substantial increase in fines. The current policy specifies that shipments must arrive at the distribution center during a specific date and time window, be properly packaged and labeled, and be delivered 98% in full. Shipments that arrive short, not as specified in the Purchase Order, early or late are subject to fines, with little room for error.

While the original performance target was 70%, Walmart has steadily raised its requirements and on September 15, 2020, the target was set at 98%. Suppliers not meeting performance standards will be fined 3% of the cost of goods and repeated failure to hit the 98% mark will place future business with Walmart in jeopardy.

Walmart does recognize that there can be uncontrollable disruptions in the supply chain that can disrupt shipments and will factor these events into OTIF performance measurements, including waiver of fines. For example, shippers were given COVID-19 exemptions during the early days of the pandemic, but that exemption ended last August.

In February, Walmart began giving vendors the opportunity to contest fines on purchase orders they believe should be excluded from OTIF. Reasons for exclusion include item code changes, no unloading appointments available, major crop failure or natural disasters. However, most delays, including bad weather, are not recognized as acceptable reasons for fine relief.

Given the draconian nature of the Walmart OTIF policy, Western Growers members should understand how it is calculated and adopt the following best practices to avoid fines.

How is OTIF calculated?

Take the number of cases received within the delivery window and divide by the number of cases ordered. For example: You sell 1,000 cases of product to Walmart at $10 per package. The $10 price is what you bill Walmart, whether FOB or delivered. You only deliver 800 cases on time. Your OTIF penalty calculation is as follows:

 

Using the same example, you deliver all 1,000 cases but the shipment arrives a day late. Your OTIF penalty would be as follows:

It’s easy to see how quickly fines can accumulate. It is important for shippers to be aware that they are not subject to both On Time and In Full fines on the same shipment.

OTIF Best Practices

It is suggested that you adopt the following best practices to ensure that your shipments are on time and in full:

•  Educate your employees. Talk to your production and shipping personnel and make sure they are aware of the Walmart OTIF requirements and the need to adhere to shipping dates.

•  Talk to your carriers. Make sure that your carriers understand the OTIF performance rules, the importance of being on schedule and the need to promptly advise you of any in-transit or delivery issues. Build strong carrier relationships and provide them consistent business—preferably to the same Walmart distribution centers.

•  Have set shipping dates. Schedule pick up dates and times with your carriers to ensure as little variance in transportation performance as possible.

•  Review your OTIF scorecard weekly. Identify and correct deficiencies in your internal processes.

•  Proactively address anticipated problems. Any product or shipping issues should be immediately communicated with the Walmart buyer(s) and replenishment managers.

•  Pay attention to rescheduled delivery dates. If you reschedule a delivery, make sure the new date and time still fall within your “Must Arrive By Date” (MABD).

•  Be aware of consolidated freight. Be sure to communicate clear expectations to carriers if your Walmart orders are being consolidated with other freight.

•  Don’t arbitrarily fine carriers. You don’t like to be fined by Walmart and your carriers won’t like to be fined by you without a good reason. The current and anticipated transportation market is a seller’s market and carriers will be able to choose who they will do business with. Undesirable customers will have loads declined or receive rate quotes that incorporate anticipated fines.

•  Keep full and detailed records of your Walmart transactions. Good documentation is key to reducing or eliminating fines.

While it is probable that every Walmart vendor claims that their business has characteristics that should provide for relaxation or elimination of the OTIF policy, a strong case can be made that fresh produce should not be subject to the same standards as manufactured products.

The Walmart OTIF policy is the subject of extensive evaluation by Western Growers staff to determine the next action steps and ensure fair trade practices are enforced in the industry. Shippers of fresh produce doing business with Walmart are encouraged to confidentially share their OTIF experience by contacting Bryan Nickerson at 949.885.2392 or [email protected].

Advocacy: Arizona Legislative Session Results in Wins for Ag Community

May 14th, 2021

By Robert Medler, Arizona Government Affairs Manager

As the 2021 legislative session nears sine die, Arizona agriculture will reap the benefits from a handful of wins.

On top of the list is SB1448, which outlines how a court should award costs, expenses and punitive damages in a nuisance action against an agricultural operation conducted on farmland. It also prohibits a political subdivision of the state (cities, towns or counties) from declaring an agricultural operation a nuisance if its operations are consistent with legal requirements and other best practices. In addition, Western Growers worked to ensure protections remained for claims involving pathogenic contamination, leaving a nuisance claim as a viable recourse.

Other wins for WG members include the passage of H2441 and H2289. H2441 allows a property owner to permanently retire acreage from irrigation and substitute the same amount of acreage if those retired lands were damaged by a flood or have a limiting condition (i.e., inability to implement more efficient irrigation practices). H2289 increases the maximum fee that the Arizona Citrus Research Council is required to assess to five cents per standard carton or 40 pounds of equivalent weight in bulk bins of citrus produced. This is important since the council funds programs and projects that focus on varietal development, citrus pest eradication, and harvesting and moving produce to market. Similar legislation failed in 2020 due to its inability to garner the two-thirds majority required for a revenue increase.

Notable legislation that WG expressed concerns over were two bills that would have severely restricted, or outright banned, the use or sale of neonicotinoids, clothianidin, imidacloprid, thiamethoxam, and chlorpyrifos throughout Arizona. Both H2093 and S1201 never received a hearing in committee. Another bill not receiving a hearing was S1314/H2209, which would have required the use of a water measuring device on all nonexempt wells under any circumstances and in any location. Because of the political dynamic in the Arizona Legislature, it appears likely that these policy proposals will be introduced again in the future and may eventually start moving through the legislative process.

Water policy in Arizona is also facing additional challenges as the western U.S. suffers increasing drought conditions. Looming on the horizon is the recently announced expectation of a water shortage being declared on the Colorado River. This would result in the largest mandatory cutbacks of river allocation. On Friday, April 2, 2021, the Arizona Department of Water Resources and the Central Arizona Project released a joint statement on Colorado River water shortage preparedness. Currently, the river is at a “Tier Zero” stage, which has resulted in Arizona proactively contributing 192,000 acre-feet to Lake Mead. This proactive approach was a result of the Drought Contingency Plan approved in 2019 to stave off further cuts.

A “Tier 1” shortage declared on the river will result in an additional 320,000 acre-feet cut, for a total of 520,000 acre-feet reduction per year starting in 2022. These expanded cuts will impact agriculture operations in central Arizona, namely Pinal County, the hardest. Delivery of Colorado River water will be reduced by nearly 50% in 2022, then terminated in 2023 and thereafter. Arizona’s plan for the cuts will allow an increase in groundwater pumping within the region, but the construction of the necessary infrastructure has been slow since the state allocated $50 million toward the effort in 2019. Existing rules and agreements for management of Arizona’s Colorado River allocation expire in 2025; all eyes are on the efforts starting for 2026 and beyond.

The 2021 legislative session once again exhibits why Arizona is one of the best places to live and work. Agriculture remains a critical component of Arizona’s economy and ensuring adequate water resources for agriculture is paramount. As we continue to face drought conditions, the current legislature has shown it will work to assist in the needs of agriculture throughout Arizona.

Federal Affairs Column: COVID-19 Wanes but Relief Efforts Continue

May 14th, 2021

Last year around this time, I wrote about the COVID-19 crisis. Now, a year later, I write about it again. However, rather than talk about a crisis upon us, I now write about a crisis that is hopefully abating.

Over the last year, our federal government has poured tremendous resources into combating the COVID-19 pandemic with vast sums flowing to agriculture. Money has gone to direct assistance to farmers via the Coronavirus Financial Assistance Program (CFAP) and loans via the Payment Protection Program (PPP), as well as large purchases of excess production to help Americans in need. Tens of billions of dollars were used to help agriculture in 2020, and while we appear to be turning the corner, additional efforts for 2021 are forthcoming.

We know that many of you have been expending lots of resources in order to protect the health and safety of your workforce. As COVID-19 protocols evolved, you have purchased masks, gloves, and sanitizers as well as implemented engineering solutions to enhance safety. To ensure social distancing and the safety of your workforce, many of you have hired new buses to transport workers or spent more money on housing to quarantine farmworkers exposed or infected. Some of you are paying for COVID-19 tests for your employees as well as the copays for vaccinations. Western Growers has been working since last March to try and secure money to help offset those costs. I’m happy to report that language and money was included in the last COVID-19 relief package, recently signed by President Biden, that addresses these needs.

After that effort became law, we turned our attention to the U.S. Department of Agriculture. We are working with that agency to shape the design of the relief program. We are advocating for the program to both reimburse for expenses incurred in 2020 and help pay for costs you will incur in 2021. The program likely will not cover every dollar you have spent on worker health and safety for the pandemic, but it will help. Since regulations will be necessary to implement this program, that will take some time. Look for sign up during the summer.

During late May 2020, USDA announced a direct payment program that was intended to provide farmers impacted by COVID-19 direct financial support for market losses. That program went through several iterations during 2020 and Congress reauthorized funds for it for 2021. During 2020, CFAP provided more than $1 billion to the produce industry. The 2021 version will go through a few more tweaks and we encourage anyone to sign up who hasn’t already.

We all look forward to the day when the whole country and world are totally back to normal…and that day is coming soon. In the meantime, we are working on these programs to help you through the crisis and through the recovery.

With that same motivation, we are also working hard on the infrastructure package that President Biden has unveiled. It is clear that we can help the economy recover by making sure we have a robust infrastructure drive.

For Western Growers, infrastructure not only mean roads and bridges but also water projects. As a result, we are pushing very hard to make sure that the final infrastructure package includes money for water systems such as water conservation and infrastructure repair, as well as funds to build new water storage and conveyance.

Over the next couple of months, we will battle to secure the necessary funds as the Biden infrastructure plan mentions water but doesn’t provide much detail on it. Western Growers is working with a large coalition of more than 200 groups from every Western state on this objective, which will provide short term jobs to rural communities as well as long term stability to agriculture, rural and urban water users. We are also hopeful that rural broadband will get a jumpstart as well.

Stay tuned.