The Future of Cross-Border Health Care

July 14th, 2021

Cross-border health care combines innovation and resourcefulness to reduce health care costs for employers while creating more options for their employees. Because Western Growers Assurance Trust (WGAT) recognizes the significance the border region has on the agriculture industry, we designed a comprehensive Mexico Cross-Border Program to provide flexible medical and dental care options for our members.

Receiving health care across the border comes at a significantly reduced cost compared to stateside care. In fact, a study by Patients Beyond Borders has found that the cost-savings can range from 40% to 70% and that nearly 800,000 to 1 million Americans travel to Mexico to access more affordable care each year. A number of U.S. board-certified physicians have expressed their desire to offer their services in Mexico. Realizing this need, one of WGAT’s long-time Mexico providers is looking to the future with the construction of new state-of-the-art medical facilities.

Dr. Raul Payan, who has been a provider with WGAT for more than 30 years, was originally operating out of a facility with just one exam room and a reception area. Today, he operates out of a new facility—Osmed Servicios Medicos—which comprises multiple general exam rooms used by specialty care providers, an on-site pharmacy, lab and observation area. The facility is capable of providing x-ray services, mammograms, cardiac diagnostic tests and other minor procedures.

He has plans to construct a state-of-the-art hospital in San Luis, located across the border from Yuma, Arizona, which has gained the attention of several stateside investors, some of which include U.S. board-certified physicians. The facility will enable U.S. board-certified physicians to perform more affordable procedures in Mexico.

Experts in Cross-Border Health Care

For more than 50 years, WGAT has held contractual relationships with providers in Mexico. In fact, we were one of the first networks to provide cross-border health care. Our exclusive network includes licensed providers and medical facilities in several convenient locations, featuring the latest in state-of-the-art equipment.

With WGAT’s Mexico Cross-Border plans, employers can:

•  Improve employee health while offsetting U.S. healthcare costs

•  Provide employees with richer benefits, more choices, and flexible plan designs

•  Experience a seamless invoicing and payment process (WGAT plans are fully funded, so our accounts receive a monthly invoice and never have to worry about provider reimbursements)

Cross-border care is something worth considering for your employees. Affordable and quality care, geographic proximity, and cultural familiarity are comparative advantages for agricultural workers who live and work close to the border. Employees remain healthier by having convenient and more affordable access to care, and these benefits translate into significant savings for employers.

If you don’t have the WGAT plan and would like to know more about our contracted facilities across the border, contact Western Growers Insurance Services for more information to see how we can help you better manage your health care costs. You can reach a sales team member 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 2021-2022 State Budget and Agriculture

July 14th, 2021

“Wildly unpredictable” is the phrase that immediately comes to mind when describing the impact the COVID-19 pandemic has had on forecasting the California state revenues and the overall state budget.

This time last year, the state was predicting an enormous budget deficit of $54 billion. Now, at the time of this writing, Governor Newsom is preparing to sign the 2021-2022 budget framework that was just passed by the Legislature. This budget includes nearly $100 billion in new spending. The new spending is largely funded both by an unanticipated record surplus as well as federal aid that has been appropriated to the state as part of the pandemic response. Notwithstanding budgetary and policy concerns, it is a stunning reversal of where we thought we would find ourselves in 2021. It is important to note that there will be many additional budget trailer bills negotiated in the next several weeks that are designed to implement the state budget. Several of these budget trailer bills will have a direct impact on agriculture.

There are always pros and cons to having a state budget surplus. The cons are that new programs will be created that will assuredly require ongoing funding which will lead to difficult conversations on future cuts, fees, and taxes when the general fund and pandemic response funds eventually dwindle. It is also easier for the Governor and Legislature to enact more costly policy mandates if state incentive funding is provided to reduce the implementation of those directives. Of course, the positive side to a surplus is that there is no immediate pressure to raise taxes and there is a greater likelihood to receive more substantial funding for the agricultural industry. It is truly a mixed bag.

Western Growers and other agricultural interests have been fighting for several years for adequate state incentive funding to help our farmers meet the stringent air quality goals that have been put into place to meet both federal attainment standards and California’s ongoing emissions reduction targets. The budget trailer bill process recognizes the cost burden these mandates place on farmers and proposes allocation of substantial funds to mitigate these efforts. Some key examples are the proposed $363 million in funding for the replacement of agricultural diesel engines and the $150 million in proposed incentive funding for alternatives to agricultural burning. A strict deadline on reducing and eliminating agricultural burning has been put into place by the California Air Resources Board. The $150 million in proposed funding will help address some of the costs arising from that mandate. However, much more robust and long-term incentive funding is needed for both of these issue areas in order for agricultural interests to feasibly reach the attainment goals.

The unprecedented budget surplus has also led to proposed new funding for implementation of the Sustainable Groundwater Management Act, provision of clean drinking water to impacted communities, and more funding for the State Water Efficiency and Enhancement Program. The California Department of Food and Agriculture will also see additional funds for healthy soils and other environmental stewardship programs.

Western Growers continues to strenuously advocate against new broad mandates being placed upon our industry. We do not want to see new programs created that will make it even more challenging for farmers to compete in the global economy. WG staff will also remain committed to fighting for state incentive funding so that any additional costs to our farmers can be mitigated to the greatest extent possible. Our industry is unique and deserves to be recognized for the critical and essential services that we provide.

Ocean Mist Musings on Agtech: 7 Observations on Spurring Ag Innovation

July 14th, 2021

Walking up and down the grocery store aisles, various shades of green start to blend beautifully together as you reach the fresh produce section. In the sea of green, your eyes gravitate toward a flower-shaped vegetable adorned with soft yet crunchy petals that gently protect an earthy-flavored heart: the artichoke.

According to the California Department of Food & Agriculture’s 2019-2020 Agricultural Statistics Review, the Golden State proudly grows 90 percent of the nation’s artichokes. Ocean Mist Farms produces a sizable majority of that jaw-dropping percentage.

Ocean Mist Farms (OMF) formed its roots nearly 100 years ago when Daniel Pieri and cousins Amerigo and Angelo Del Chiaros leased land south of Castroville, California, to launch an artichoke venture. Since then, the farm has grown into the largest grower of fresh artichokes in the United States and has added 30 other vegetables to its roster.

How has OMF accomplished being crowned the artichoke mogul of the United States? Through forward-thinking leadership, the ability to navigate through fads and trends and always being among the first to identify and implement cutting-edge technological solutions.

During his 21-year career at OMF, former President & CEO Joe Pezzini led many of the key initiatives that have propelled the farm to become a leader in agricultural technology. He provides seven candid observations on how producers can spur innovation and further advance technology in their farming operations.

1. Algorithms are Key to Improving Customer Satisfaction.
OMF uses a custom appointment loading system that is algorithm-based to calculate the ideal loading time. This algorithm uses real-time commodity-specific data from the operation’s harvest, receiving, cooling and sales disciplines to identify an ideal staging and loading time. This technology has enabled transparency and collaboration of data among disciplines within OMF’s supply chain operation, ultimately improving the farm’s overall ability to service its customers and supply the freshest product.

2. Blockchain Technology = Safer Food Safety Practices.
As an early adopter of blockchain, OMF has implemented this transaction-storing technology to provide end-to-end data of a product from the field to the store level. Leveraging the power of blockchain technology, along with the now industry-standard Product Traceability Initiative Label Technology, OMF uses data to further enhance its food safety efforts.

3. Consumer Trends Should Dictate Farm Innovation.
Shoppers’ needs and customer requests are two main factors that drive innovation at OMF. For example, to address the consumer trend for more convenience and personalization, OMF is working on a line of unique artichoke products (details to be revealed soon). The company also launched a store locator tool on its website to allow consumers to find specific Ocean Mist products based on their zip code.

4. Innovation Takes Time. Be Patient.
The process to develop a new artichoke variety takes a minimum of five years. OMF employs an intensive R&D program that analyzes and replicates hundreds of tissue cultures of desired varieties. The program relies on a meticulous selection process and analyzing extensive varietal data that makes reviewing several hundred varieties each year efficient, with the ultimate goal to develop a superior-eating artichoke. Most recently, it has introduced a new purple artichoke variety, called “Lila.”

5. Leverage Social Media to Become the Go-To Resource.
Through a robust content marketing strategy and clever use of existing social media technology, OMF has become the go-to resource for consumers for all things artichoke. The company creates how-to select infographics, how-to prepare videos and how-to eat GIFs—which are all shared on its website and social media platforms. These pieces of content provide consumers nutrition and preparation information about artichokes as well as offer incentives to put an Ocean Mist Farms artichoke in their shopping basket.

6. Look to Optical and Precision Spray Tech to Improve Production.
The marrying of optical and precision spray technologies has proven to be a “quantum leap” forward for production. OMF has utilized this technology tool to gain labor efficiencies and data intelligence leading to continuous improvement in field production.

7. The Future of Food Safety is Rapid Detection Tools and Predictive Models.
Technology has played and will continue to play a significant role in the enhancement of food safety practices.

  “Technology has accelerated testing even beyond our ability to understand how a contamination is present. I think the future is using rapid detection tools to create a predictive model to detect a contamination before it becomes a foodborne illness issue. Diagnostic tools will produce data which can be analyzed to help prevent contamination events before they ever occur,” said Pezzini.

OMF’s keen ability to anticipate the next trend has allowed the farm to masterfully integrate cutting-edge technology to improve operations. In 2017, as part of the farm’s effort to increase its innovation aptitude, it signed on to be a sponsor of the Western Growers Center for Innovation & Technology (WGCIT)—a premier agtech incubator located in Salinas, California.

“We appreciate Western Growers Center for Innovation & Technology’s role as a think tank, bringing together the technology experts in the Silicon Valley and the agriculture experts of the Salinas Valley to develop and apply practical ag technology,” said Pezzini. “It has provided a forum for technology startups to connect and collaborate with farmers to refine technologies into something applicable to Salinas Valley agriculture production.”

OMF’s relationship with the WGCIT has resulted in numerous partnerships with agtech start-up companies residing in the tech incubator. In fact, OMF has recently piloted or engaged the applications of three WGCIT innovators: HeavyConnect, CropTrak and Zest Labs. Additionally, the farm has leveraged WGCIT’s expertise as a convener and collaborator for broader innovation to connect with other agtech partners including universities, global organizations and private investment firms.

 

HUMMINGBIRD TECHNOLOGIES: Going Above and Beyond to Increase Yield

July 14th, 2021

Drones and satellites are the technology. They are not the solution.

“There has to be the interpretation of the data gathered from drones or satellites,” said Jack Williams-Ellis, head of California & Mexico at Hummingbird Technologies. “Then, that data needs to be presented as either analytics or as a service. That’s where Hummingbird Technologies fits in. We go that extra mile to make it a turnkey solution.”

Hummingbird Technologies is an imagery analytics business that uses remote sensing (image data from satellites, planes and drones) to help food and agricultural operations make real-time decisions. The startup has tailored its solutions to support specialty crop growers in two ways:

1. Precision Agronomy: Hummingbird uses image data to predict yields for growers, while also helping them optimize their inputs to produce better yields.

a.  Predicting Yield: Using high-resolution pixel-by-pixel image data, Hummingbird can determine the counts, sizes and grades of every plant in a field.

b.  Optimizing Inputs: From the image data, Hummingbird guides growers on how much fertilizer to use and where. For example, the Hummingbird platform will signal to apply more fertilizer to lower areas of plant growth and less fertilizer to higher areas of growth; this increases uniformity in the field to increase the number of heads/pounds harvested per acre.

2. Supply Chain Analytics: Through its global presence, Hummingbird offers ag and food businesses granular supply chain visibility; this affords customers the ability to make precise and more effective decisions in real-time, resulting in more efficient operations.

The startup launched five years ago in a small basement in London, England, with a team of three and has now grown into a company comprised of 60 data scientists, software engineers, agronomists and product/business specialists that span across the globe. The startup successfully developed an algorithm that scales across every grower independent of their location but specific to their respective variety of crops. With its unique algorithms, the company has now expanded to Latin America and North America.

“One of the key differences between Hummingbird and other imagery analytics companies is that we build all of our algorithms from the ground up with growers, plant pathologists and agronomists,” said Williams-Ellis. “We see if there’s an opportunity to drive value for a grower, and if there is, we then build an algorithm around that specific variety. This allows us to dig deep and provide detailed data on a few crops versus surface-level data on 50 to 100 crops.”

One of the crops the startup is now focusing on is lettuce. In January 2021, Hummingbird finalized its North American expansion by putting down roots in Salinas, California—more specifically, at the Western Growers Center for Innovation & Technology.

“The team at the WG Center has been a great facilitator of introductions to leaders in the fresh produce sector and carefully helps startups navigate their path. Whether they are looking for partners for R&D or are in the trial phase and ready to scale, the WG team always seems to be able to fit the right startup with the right grower. That’s an amazing attribute of the innovation center.”

Since joining the WGCIT, Hummingbird Technologies has been connected to numerous WG members and industry leaders throughout California and Arizona. In fact, one such introduction has resulted in a fruitful partnership with Church Brothers Farms. The case study of this success story is featured below.

Innovation: Cultivating the Next Gen Ag Worker

July 14th, 2021

By Walt Duflock, Vice President, Innovation

Agtech innovation has enabled agricultural production to grow over 300% in the last 70 years, while losing almost 70% of the ag workforce (both family members and hired farmworkers).

Despite all the progress in ag productivity, every year acreage gets planted and does not get harvested, often because of a lack of available labor. Innovation is already helping, with machines that can plant, thin, weed, and harvest, as well as automating much of the irrigation process with innovations like drip technology and automatic sprinkler systems. Most believe innovation will need to provide more help and that it would be better if it arrived faster.

Western Growers launched the Global Harvest Automation Initiative to help do just that—increase the amount of ag product that is harvested by robots to 50% in 10 years.

This push for automation has exposed a related challenge—not only is ag short of workers generally, but there is also a greater need for workers with the skill sets necessary to work with and manage all the new innovation solutions. WG hosted the Salinas Valley Virtual AgTech Summit in March with the panel of Miles Reiter, Tom Nunes, and John D’Arrigo making it clear that we need to do two things in the industry: (1) make a career in agriculture a great idea for the youth of America; and (2) transition the agriculture workforce to master rapidly-developing agricultural technology during the next few decades.

So, what does this transitioned workforce look like and what will they be doing? Ideally, they have a knowledge base in agriculture complimented by a range of innovation subject matters—part engineer, part agronomist, part biologist, part chemist, part analytics, and part problem solving. They will be designing and developing automation solutions to improve a lot of early technologies in the field and building new ones that do not yet exist. They will manufacture the robots and manage the robots in the field, and they will know when something goes wrong and how to fix it quickly and efficiently, sometimes on their own and sometimes with help from partners. They will understand irrigation, water testing, and food safety. Clearly, a cross-disciplinary approach is required.

Western Growers is working with our partners at the University of California on an overall framework that we believe can help create the next gen ag workers that are needed, and can do it at scale. A three-piece framework on an annual cycle is needed:

1. Work with educators, innovators, and growers to define the curriculum requirements;

2. Use that curriculum content to build a Train-the-Trainer (TTT) program to help get educators up to speed on the new curriculum and how best to teach it to students; and

3. Deliver an annual week-long event that delivers the TTT curriculum to educators from the UC, California State University, and California Community College systems.

In short, build the curriculum in the winter, get it ready to train in spring, and deliver it to educators in a way they can start using it instantly in the summer. Repeat the cycle annually with upgrades based on new innovations, new regulations, and new learning from all the key stakeholders. It won’t be built overnight, but I believe we can get the key steps executed during the 2021-22 school year and launch the first Institute in the summer of 2022. WG looks forward to working with our members and partners to execute on this vision.

WG ANNUAL MEETING 2021: ‘Grow Together’ at the Fairmont in San Diego

July 14th, 2021

We’re back!!!

Western Growers will hold its 2021 Annual Meeting at the Fairmont Grand Del Mar in San Diego, from November 7-10, as the western produce industry celebrates the return of in-person events with a robust program.

“We are looking forward to greeting everyone in San Diego,” said Western Growers CEO and President Dave Puglia. “The pandemic shut-downs taught us all to adapt in our professional lives, but nothing replaces being together in person. This will be a memorable occasion as we reconnect and refocus.”

“Grow Together,” the theme of the event, symbolizes the hallmark of the Western Growers Annual Meeting since its inception nearly a century ago: colleagues and competitors coming together to tackle issues of mutual concern and forge collaborative solutions that benefit the broader fresh produce industry.

“With the challenges of last year in the rearview mirror, we are refocusing on the long-term competitiveness and viability of our industry,” said Western Growers Chairman and Partner at Talley Farms Ryan Talley.

For past attendees, the format for the 2021 Annual Meeting will be a return to the familiar, featuring the networking, educational and social gatherings that have formed the core of the meeting for many years. There will be several workshops, the Chairman’s Address as well as the closing dinner, which will recognize this year’s recipient of the Award of Honor. The always-popular golf tournament will be held during the closing day of the Annual Meeting at the resort’s beautiful championship golf course.

Save the date on your calendar and sign up for the meeting on the Western Growers website (www.wga.com). Sponsorship opportunities are still available.

 

The PRO Act: A Goody Bag for Organized Labor

July 14th, 2021

On March 9, 2021, the House of Representatives voted to pass H.R. 842, the Protecting the Right to Organize (PRO) Act on a 225-206 vote (pulling in five Republican votes). The bill includes the most sweeping and expansive changes to labor relations legislation since passage of the National Labor Relations Act (NLRA) of 1935. The legislation is unlikely to pass in the Senate, given the lack of Republican support. Although Democrats narrowly control the Senate with Vice President Kamala Harris having the tie-breaking vote between the 50 Democrats and 50 Republicans, there likely won’t be enough votes to overcome a filibuster.

It has been reported that the Biden Administration’s Infrastructure bill includes some or all of the PRO Act. In fact, as of this writing, there is no still no infrastructure bill per se, just an outline furnished by the White House which says nothing about including the PRO Act. The outline says that Biden is calling on Congress “to ensure all workers have a free and fair choice to join a union by passing the Protecting the Right to Organize (PRO) Act, and guarantee union and bargaining rights for public service workers.” Also, negotiations between the Biden Administration and Senate Republicans appeared to have stalled, and inclusion of the PRO Act would not help bridge the divide.

However, Senate Majority Leader Chuck Schumer has indicated that is preparing to move ahead with reconciliation, a parliamentary maneuver that could move a bill forward with a simple majority of Democrats and no Republican support. We don’t know if the PRO Act in part or in whole would make it in the Democrat’s reconciliation efforts. Nevertheless, we do know that the PRO Act, either as a standalone bill, or included in part or in whole as part of the Infrastructure package, is a major priority for Labor and the President.

The PRO ACT would make the following amendment to the NLRA:

•  Preempts State “Right to Work” Laws. Preempts right to work laws by permitting contract terms requiring all employees to pay to the union fees for the cost of representation, collective bargaining, contract enforcement, and “related” expenditures. 27 states, including Arizona, have adopted “right to work” statutes.

•  Institutes Card Check. Permits a union that loses a secret-ballot election to file an unfair labor practice (ULP) charge challenging the results. If the employer can’t prove that the alleged ULP did not affect the election results and the union collected a majority of signatures on union authorization cards, the union would be automatically certified to represent the workers, even though the union lost the election.

•  Expands Joint Employer Liability. Codifies the Obama-era NLRB’s expansive joint employer test under Browning-Ferris. The NLRB (National Labor Relations Board) overruled the Browning-Ferris test by a Final Rule last April. Under the PRO Act, the definition of “joint employer” would allow “indirect or reserved control standing alone” to be sufficient to support a “joint employer” finding.

•  Adopts California’s “ABC” Test. Incorporates California’s ABC test for independent contractors into the NLRA. The strict “ABC” test significantly expands the likelihood of independent contractors being deemed “employees.”

•  Changes Definition of Supervisory Status. Limits the definition of “supervisor,” thus expanding coverage of the NLRA. The PRO Act would require putative supervisors to engage in supervisory duties for a “majority” of their time. Authority to assign work and direct employees would no longer be sufficient to demonstrate supervisory status.

•  Back to Obama-Era NLRB Election Rule Changes. Codifies the NLRB’s previous “micro-unit” rule announced in the NLRB’s Specialty Healthcare decision; establishes “quickie” elections; and allows the union to decide if the election will be in person or by mail-in ballot, among other controversial changes.

•  Prohibits Class Action Waivers in Arbitration. Bars class action arbitration waivers in mandatory arbitration agreements. The Supreme Court has ruled that class action waivers in arbitration agreements are enforceable and are not barred under the NLRA. The PRO Act would statutorily bar such class action waivers in employee arbitration agreements.

•  Institutes Compulsory Interest Arbitration. Like the Agricultural Labor Relations Act’s (ALRA) Binding Mediation provisions, the PRO ACT compels good-faith collective bargaining for 90 days and, if no agreement is reached, requires binding interest arbitration of contract terms. In such cases, an arbitrator is empowered to determine the terms of a two-year collective bargaining agreement.

•  Eliminates Secondary Boycott Restriction. The NLRA protects the right to strike or picket an employer with whom a union has a labor dispute. But it also seeks to keep neutral employers from being dragged into the fray. Thus, it is unlawful for a union to coerce a neutral employer to force it to cease doing business with a primary employer. The PRO Act would eliminate this “secondary boycott” restriction and greatly expand unions’ use of picketing at locations, beyond the target employer.

•  Creates Work Stoppage Rules. Bans employers from permanently replacing strikers in economic strikes.

•  Creates Enhanced Unfair Labor Practice Remedies. Creates a private right of action for employees to bring ULP claims. Employers could be liable for fines and liquidated damages, and corporate directors and officers could face personal liability.

The PRO Act is a veritable goody bag for organized labor, which if passed will have a profound impact on, and create challenges for, employers in most industries. It remains to be seen if the bill, either as a standalone or as part of an infrastructure package, can overcome a filibuster in the Senate, or move in a reconciliation play. If passed, the cost of labor would increase as unions would find it easier to quickly force collective bargaining agreements (CBA) on to unwilling employers and coerced employees who never voted for the union or ratified the CBA. That is why Western Growers is opposed to the PRO Act.

WG’s H-2A Effort Continues to Expand

July 14th, 2021

By Tim Linden

It is no secret that the United States is currently facing a tremendous labor shortage as employers all over the country are having trouble finding workers to fill vacant slots.

Welcome to production agriculture, which has been dealing with an acute labor shortage for many years. The problem has been increasing over the last few decades as the U.S. Congress has been unable, or unwilling, to pass meaningful immigration reform. And it has been exacerbated over the last 16 months with worker concerns about COVID-19 reducing the workforce and the reopening of the nation allowing workers to be very selective as “Help Wanted” signs are ubiquitous.

Agriculture does have one advantage as it can utilize the U.S. Department of Labor’s H-2A program to hire temporary foreign workers on a contract basis. Though the program has always been cumbersome with a myriad of challenging regulations, more and more ag employers are utilizing the concept to augment their workforce. Western Growers Legal Department began offering its agent services to members about 15 years ago and has become quite expert in traversing the rules of the game.

WG Senior Vice President & General Counsel Jason Resnick said the organization filed a couple of applications on behalf of members that first year covering a limited amount of workers. In 2020, the legal staff prepared dozens of applications covering thousands of workers. “For the first 10 years, we had a slow but steady increase in the number of members that were using us to file their H-2A applications,” Resnick said. “In the last five years, we have seen a much steeper increase. Each year, more and more companies are turning to the program.”

He said Western Growers has worked with some employers for more than a decade while others have just started this year with small pilot programs. Some applications ask for scores of H-2A employees while others request just a handful or two. Western Growers now has a staff dedicated to the effort and works on behalf of members as their official agent in this fee-for-service program. Resnick said the program’s learning curve is still steep though the core regulations have remained largely unchanged in the last decade allowing WG to become expert on its nuances and knowledgeable of its potential pitfalls. “There is a minefield of missteps that can be damaging to your application if you are not familiar with the program,” he said, noting that housing and transportation rules are typically the highest barriers to entry. He did say that the filing of applications is now done electronically, which has made it a bit easier, at least regarding the paperwork.

Resnick’s experiences over the last couple of years indicate that most ag employers have either reached their tipping point or will soon be there. “I have never seen such shortages of domestic labor that we are currently witnessing,” he said. “And it’s not getting any better.”

River Vista Farms in Colusa County in Northern California has been using Western Growers to secure H-2A workers for the past four seasons. The fifth-generation family farm is operated by Woody and Kathy Yerxa along with their son Mitchell, their daughter Melissa and her husband, Antonio Ortiz. They grow about 2,700 acres of mixed crops including prunes, almonds, walnuts and pecans as well as processing tomatoes, and various seed crops. “We are growers, not packers or processors. Our combined years of experience are used to raise crops of the highest quality. We feel very appreciative to have a stable and full-time workforce that is very productive,” said Kathy Yerxa.

The company has used several different strategies over the year to secure workers, including word of mouth, California’s Employment Development Department, college job fairs, and farm labor contractors. Their need for workers expands in the April to October time frame as their crops mature. Each of the past four years, they have applied for nine to 14 H-2A workers to fill their labor gap. Those workers represent about 30% of their workforce during that period.

“I do not think that we could have gotten these H-2A workers without the help of Western Growers,” said Woody. “Jason Resnick and Western Growers have been wonderful to work with. They are responsive to inquiries, are extremely helpful at all steps of the process, going above and beyond my expectation. I would recommend to anyone who is thinking about hiring H-2A workers that they contact Western Growers first.”

Kathy added: “Western Growers has helped us every step of the way, working with the Department of Labor on our behalf, making our interaction with them positive. The penalties for not adhering to the rules and regulations relating to worker housing can be quite onerous. Western Growers ensures that we stay in compliance with what is expected and helps us keep up with the everchanging laws and regulations.”

River Vista said the biggest drawback of the program is the guaranteed minimum wage for H-2A workers, which drives up all the wages paid on the ranch. Kathy added that the housing requirements is the first hurdle a potential user must jump. “If you do not operate a labor camp or have worker housing available it would be difficult, almost impossible, to participate in this program,” she said.

Overall, River Vista is happy with their results and the workers they receive every year. “The H-2A workers we have gotten come prepared to work,” Kathy said. “They are very enthusiastic and productive.”

Arvin, CA-based Tasteful Selections, which specializes in producing and packaging value-added packs of bite-sized potatoes, launched a pilot H-2A program with Western Growers this season as a potential additional solution to its labor issues. Director of Human Resources Fred Garcia noted that the potato processor dipped their toes into the process this year by requesting six workers on a five-month contract for their plant in Lamont, CA, and then eight workers for a 10-month contract at their Parker, AZ facility.

“The reason we are trying it is that we have a shortage of labor and are looking for solutions,” Garcia said. “We have used an FLC in the past (to fill holes) but we were not happy with the consistency of the workers we received.”

He said this pilot program only represents a handful of the hundreds of workers Tasteful Selections employ at their two plants but so far he has been pleased with the outcome. “The biggest hurdle was housing. That was the most challenging but once we solved that we have been happy with the results.”

And Garcia said working with Western Growers H-2A team was very helpful. He said they helped with the paperwork and gave the supervisors a one-hour training session to make sure they understood their responsibilities.

Garcia said he also followed Resnick’s advice to make the first day on the job memorable for these workers by buying them a few gifts to make their stay with the employer a good one. For example, they gave these new employees soccer balls and some games that would give them something to do in their off time. “We want to be an employer of choice,” he said.

He added that the adverse effect wage rate that the DOL establishes on a state-by-state basis is not an impediment to using the H-2A program. “We just look at it as the cost of doing business,” he said, indicating that the main goal is securing a competent labor force so that Tasteful Selections can service its customers.

 

 

Root Cause Analysis for the Produce Industry

July 14th, 2021

By Afreen Malik, Science Programs Director

Root Cause Analysis (RCA) is a systematic yet flexible approach to problem solving. It helps identify and address the root causes of failures in processes that may lead to defects or problems. One of the most used techniques in RCA is the “5 Whys” which was developed by Sakichi Toyoda of Toyota Motor Corporation as “the basis of Toyota’s scientific approach by repeating ‘Why’ five times” to reveal the nature of the problem and its solution. Since then, this technique has been used within lean manufacturing and Six Sigma as an effective way to identify root causes and implement appropriate preventive measures to avoid recurrence.

The main benefit of RCA is that it can help identify fundamental, systemic issues and failures and help prevent recurrence of these issues. With RCA, you can direct valuable resources where they are needed most—in implementing mitigation strategies which address the root causes as opposed to those that only affect the symptoms of the problem. This can lead to many benefits for an organization such as reduced costs, reduced risks, improved stakeholder relationships, and production of safe, reliable products. By effectively addressing these root causes, you help protect your business and the health and wellbeing of consumers who rely on fresh produce for a healthy lifestyle.

Furthermore, RCA can help meet regulatory expectations regarding RCA. In a recent update to the Leafy Greens Action Plan (LGAP), the Food and Drug Administration made a commitment to “invigorate” RCA and “to advance, standardize, and increase awareness about the value of root cause analysis protocols for food safety.” Industry can lead this effort to outline what RCA looks like in the produce industry and adopt the use of RCA as a tool for continual improvement in food safety.

Western Growers’ Science team, which includes Senior Vice President of Science Dr. De Ann Davis, Assistant Vice President of Science Sonia Salas, Science Program Director Afreen Malik, Data Programs Analyst Marlene Hanken, and Science Program Specialist Scott Nichols, is here to help the industry adopt RCA as a valuable tool for solving produce safety and quality related problems. WG is developing a suite of resources that can help you implement RCA in your operations, whether on the farm or in a facility. WG RCA offerings fall into three categories: 1) a fresh produce specific RCA guidance, 2) RCA training and education, and 3) RCA consultation services to help you conduct root cause analysis in your operations.

Produce Industry RCA Guidance

The recently published fresh produce specific guidance on RCA has two parts. Part I is a How To Guide providing step-by-step guidance on how you may conduct RCA in your operations. Part II is a Decision-Making Guide to determine whether you should conduct RCA in your situation. The guidance document provides a basic introduction to the RCA concept, outlines RCA steps, commonly used tools and techniques, and provides additional resources to help you determine how you should apply RCA to your operations.

RCA Training and Education

WG is developing a hybrid course on RCA. The course will have a virtual component to go over the essentials of RCA in a classroom format and a hands-on, in-person, on-farm component to really dig deep into how to conduct RCA in a real operation. We’re collaborating with the Centers for Disease Control and Prevention (CDC) and the FDA to build this produce specific and science-based resource for our membership. An announcement will be issued when this resource is available in the fall of 2021.

RCA Consultation Services

The third component of WG’s offerings include execution of RCA in your operations by the Western Growers’ Science team to help you identify the root causes of your problem. The principles communicated through the first two components (RCA Guidance Document/Training and Education) will be applied here to investigate your most common and/or stubborn failures and problems and to identify and address root causes. Clear science-based and practical solutions will be proposed with guidance on effective implementation and subsequent monitoring and verification activities to minimize or prevent recurrence. An announcement will be issued when this resource is available in the fall of 2021.

Case Study

The University of Florida in collaboration with Produce Marketing Association/United Fresh conducted a case study for the Romaine Task Force to illustrate how RCA may be used in the produce industry. The full case study may be accessed on the United Fresh website (www.unitedfresh.org).

Although this case study is on avocados, the overall approach and principles discussed may be applied to any fresh produce commodity. Some of the lessons gleaned from this case study include the necessity of a multi-disciplinary team, open-mindedness in the approach, clear communication throughout the process, and a willingness to adapt creatively since there is no universal, cookie-cutter formula for conducting RCA.

Who to contact at WG to get the ball rolling?

The primary contact for all RCA related services at WG will be Afreen Malik ([email protected]). Please reach out to me if you have any questions related to root cause analysis or if you’d like more information about any of the above listed RCA services.

6 Ways to Strengthen the Supply Chain

July 14th, 2021

By Greg Gatzke, President, ZAG Technical Services

Every Western Growers (WG) member plays a critical role in ensuring the continuity of the supply chain that provides fresh produce for all Americans. Each step in the production process is essential and technology-dependent. Criminals threaten this critical supply chain, and both the agriculture and technology industries must band together to solve this problem.

The recent ransomware attacks on Colonial Pipeline and JBS affected the supply chain and consumers directly, highlighting the risks these cyberattacks bring. There’s a need across agribusinesses to create minimum, baseline security standards to strengthen technology systems.

At a minimum, companies must:

1. Implement security standards.

   Security solutions that protect an organization’s network, such as antivirus systems and advanced firewalls, along with ongoing software updates and vulnerability tests, are necessary elements of a company’s security strategy. Organizations must also require multi-factor authentication (MFA) for all remote and email access. MFA is a process that authenticates the identity of a person through two or more methods before allowing access to specific applications or accounts. MFA implementation is not foolproof, but it is an essential step in strengthening an organization’s security posture.

2. Be able to recover fast.

   Organizations must plan for the worst and be able to recover quickly. If criminals get access to your network, can they destroy your backups? They’ll often succeed. They must be protected. Organizations must have advanced storage that allows them to use snapshots to recover instantly.

3. Make sure your desktops are protected.

Too many IT people think about restoring the servers in the Data Center. It is our comfortable place. Ask them how they will recover if every desktop is encrypted. This can be more significant than the loss of the servers.

4. Have a formal disaster recovery, incident recovery and business continuity plan.

IT must have a formal disaster recovery plan that explains how they will recover systems should disaster strike. In a disaster, the whole business must know how to respond.

   An incident response (IR) plan is critical to guide:

•   How communications will occur throughout the company when systems are down.

•   Will a ransom be paid?

•   How the event be communicated to customers and vendors.

•   When and if law enforcement, insurance, and other agencies will be engaged.

   Finally, a business continuity plan must be created to instruct the business on operating in a disaster. This includes questions like:

•   How will product be produced without computers?

•   How will orders be communicated?

•   How will product be picked, labeled, and shipped?

   An IR plan is not for IT; it involves the entire organization and is key to a successful outcome should an intrusion occur.

5. Determine if suppliers pose a risk.

   The old adage is that organizations are only as strong as their weakest link. The new reality is that they are only as strong as their weakest supplier. If your suppliers are compromised and can’t deliver, your organization can be shut down. Companies should manage their suppliers to ensure they have protections in place, and that they are secure. Examples of these protections include secure remote access methods, a secure internet presence, email protections to stop phishing attacks and ensuring they do not have exposed logins/passwords on the DarkWeb.

6. Remain vigilant.

   Every ag company is dependent upon technology. Technology can be used to gain a competitive advantage for your organization, but it can also introduce risk without the foundation of security, maintenance, and support. Make sure your company and suppliers have the proper protections and processes to ensure that we can continue producing the food that America needs.

As a proud sponsor of the WG Center for Innovation & Technology and supporter of WG Insurance Services, ZAG Technical Services is available to support all Western Growers members with their intelligent business and network security needs. This includes services such as improving network security, protecting corporate data, preparing organizations for an IT disaster and implementing prevention protocols. Through ZAG’s technical services, agribusinesses can prepare for the evolving risks of cyberattacks, while WG Insurance Services can help these organizations with tailored cyber policies through its new Cyber Risk Management Solution.

Transportation: Analysis on the 2021 Transportation Market

July 14th, 2021

By Laurence Stern, Stern Consulting

Since 1973, I have been in involved in transportation management for the produce industry. Transportation is a commodity and commodity pricing is subject to the laws of supply and demand. During my career, I’ve seen a lot of transportation markets with short equipment supplies, high rates and resulting lost sales. But this market is different.

Equipment is really tight, rates are really high and it has lasted a long time—much longer than any in my memory. To illustrate the point, consider what has been happening on load boards, which are online sites where shippers and transportation brokers can post available freight and carriers can post equipment available for loading. A tight transportation market is commonly defined as having a load board ratio of 6 or 7 loads for every truck. For the past 3 months, the load board ratio has been 30 loads or more for every truck. There is no equipment being posted for loading. Another market measurement is Active Truck Utilization. That is defined as the percentage of in-operation trucks engaged in hauling freight. The average percentage is about 92%; since early 2021 that percentage has hovered around 100%. That means there is no excess capacity in the market. The equipment shortage has translated into rates previously unseen; the per-mile rate for refrigerated freight in June 2020 was $2.00 – $2.30. Recent per-mile rates have been higher than $3 per mile.

What is the Cause?

Recovery from the COVID-19 pandemic is the principal cause. As vaccinations become widespread and infections substantially decrease, hiring is increasing and consumer confidence is building, which has resulted in three trends:

•  Retail sales are up. This means that inventories are being replenished and industrial output is increasing. Modification or removal of limits on in-person gatherings means restaurants and entertainment venues are opening or doing more business, meaning increased demand for food and supplies.

•  Low-interest rates have spurred new housing starts and remodeling activity. This has pushed up demand for construction materials, appliances and furnishings. Imports—particularly from Asia—are at record levels. The vast majority of these products move by motor carrier. Adding to the pressure on the equipment supply is that when construction jobs are plentiful, truck drivers often prefer to swing a hammer and sleep at home rather than put up with life on the road. Refrigerated trucks are also being used to haul dry freight because those loads may pay more than a load of fresh produce.

•  The excess demand for truck supply is not being absorbed. In a protracted profitable market caused by a shortage of supply, the usual response has been for new entries to begin absorbing the excess demand. That has not been the case thus far. While there have been new trucks added to the overall for-hire fleet, those trucks are mostly being added in small numbers by owner-operators. Those additions have not been sufficient to substantially impact the equipment supply.

How Long is This Situation Expected to Last?

There is a lot of pent-up demand for goods and services, and it is going to take a while to satisfy that demand. The current transportation market will probably last until Q1, 2022. While there may be some declines in rates, they will be short term and the overall trend line will continue upward. Since contract rates are generally confidential, the spot market forecast is the best available indicator. C. H. Robinson is predicting an 8% increase over present levels by year’s end. The only dampening effect on demand would be rising interest rates to stem inflation and slow demand for goods. There are inflation indicators in our economy, but those have been generally explained as the result of the slow ramp-up of production of various key goods.

What Can Shippers Do to Mitigate the Effects of the Market and Ensure Access to Transportation Capacity?

Unfortunately, under present circumstances, there is no silver bullet. In the current market, carriers are going to allocate scarce equipment to their regular customers. Any excess equipment will probably go to the highest bidder offering the easiest freight to handle—meaning one pickup, one drop to a destination that has ample backhaul freight. So, the question shippers have to answer is whether they want to establish working relationships with carriers or continue to take their chances in the transactional transportation market in the future.

My experience says that a shipper would be foolish not to explore creating one or more relationships with transportation providers. While those relationships are not going to be solidified in the current market, it would be worthwhile to initiate discussions now.

Essential elements of a shipper-carrier relationship are:

•  An appointment-based load system, including loading after normal hours if necessary

•  Driver-friendly facilities at loading docks (clean restrooms, lounge or waiting area with soft drinks and coffee)

•  Regular freight volume to carrier preferred destinations

•  An understanding with a carrier that loads to non-preferred destinations will be handled as a tradeoff

•  Order lead time

•  Flexibility regarding pickup and delivery dates when possible

•  Specified rates within agreed-upon time parameters (monthly, seasonal, etc.)

•  Understanding that when spot market rates are substantially out of alignment with contract rates then adjustments up or down as necessary will be made

•  Establishment of protocols regarding in-transit reporting, emergency or accident communication, delivery status, accounting and claims

•  Use of software dispatch and communications systems to create operational efficiencies

•  Establishment of performance standards and equipment requirements

•  Regular dialogue and meetings with carrier management to review mutual expectations and performance and make necessary adjustments

As I write this, I know that eventually equipment will become plentiful, rates will decline and the transportation world will return to normal. I also know that the stress shippers are experiencing today regarding finding transportation resources to move orders will probably be forgotten when that occurs. But I also know that the market will turn again and the stress will also return. My advice is to avoid the stress and damage to your business and convert at least part of your shipment volume to a relationship base. 

Meet Your Future Volunteer Leaders: Amber Strohauer

July 14th, 2021

Amber Strohauer, Chief Operating Officer, Strohauer Farms

As a 4th-generation farmer, Amber works alongside her father day in and day out to learn how to keep her family legacy going. She joined the family farm in May 2015 and is responsible for oversight of business development, sales and marketing, food safety compliance and logistics. She also manages the packing warehouse and H-2A employees, serving as a key player in delivering everything from fingerling potatoes to shallots.

She is heavily involved in the agricultural community, serving on boards for organizations such as Colorado Fruit & Vegetable Growers Association, Colorado Potato Administrative Committee, and Weld Food Bank. Amber is a Vanderbilt University alumna and previously worked as a Compensation Analyst for Asurion in Nashville, TN.

Fun Facts:

•  Amber is a dancing queen. She currently participates in salsa dance performance teams in Denver, CO, and was a NFL cheerleader for the Tennessee Titans in 2011 and 2012.

•  Amber thoroughly enjoys taking online courses. In fact, some may call her an “addict.”

•  Cooking is Amber’s way of relaxing. “I believe there’s no better way to show someone you care than making a home-cooked meal.”

•  Amber’s motto in life: Go big or go home.

Journey with Amber in the images below as she shares her TOP PASSIONS.

 

 

 

 

 

 

Amber is one of nine individuals selected to be in Class 6 of the Future Volunteer Leaders. She is the first Future Volunteer Leader from Colorado.

 

Meet Your Future Volunteer Leaders: Garret Powell

July 14th, 2021

Garret Powell, Sales & Operations, Peter Rabbit Farms

Previously handling business development for tech giant Oracle, Garret has applied his operational intelligence and strong business acumen to further solidify his family farm as one of the premier produce grower/shippers in the Coachella Valley. Garret serves as a key player in the sales and operations team at Peter Rabbit Farms, and through the years has skillfully delivered a seamless customer experience and facilitated breakthrough innovations to enhance standard operating procedures.

Today, Garret proudly stands alongside his father, brother, uncle and cousin as the third and fourth generation of Powells owning and operating Peter Rabbit Farms.

Journey with Garret through the images below as he shares a little bit more about his life.

Garret is one of nine individuals selected to be in Class 6 of the Future Volunteer Leaders, a program that guides the next generation of leaders within Western Growers member companies interested in becoming more informed and effective advocates for the fresh produce industry.

Collaboration Focus of WGCIT

July 14th, 2021

By Tim Linden

When the Western Growers Center for Innovation & Technology was launched in 2015, the concept had already been proven in several other industries: bring technology innovators together with industry users to create new solutions to age-old problems. But the fruit and vegetable industry did not have its own incubator until WGCIT was hatched.

Today, WGCIT has 50+ residents working with many of the association’s members, and others in the ag space, to formulate solutions to real problems. Several years ago, WG Board Member and WGCIT Sponsor Vic Smith of JV Smith Companies told Western Grower & Shipper that technology geniuses are great, but they often find an answer and then look for a problem that it solves. WGCIT endeavors to get the horse before the cart.

Here are a few examples of collaborations that are working in bringing solutions to problems by combining technology experts with produce-industry subject matter experts.

Grace Mohan of HeavyConnect noted that the company started in 2014 and believes it recently has progressed beyond the “start-up phase” to that new world where a pat definition is elusive. “We no longer see ourselves as a startup. We have products and are selling them to customers.”

But she said working with industry members during their development stage was crucial. She rattled off a number of companies that helped the firm develop its software, which is designed to make documentation compliance easy for a grower shipper. Mohan explained that in today’s environment a successful grower has to be more than just an accomplished farmer. She also has to have a detailed paper trail…and it’s better and more efficient if that paper trail isn’t on paper. In fact, HeavyConnect has digitized the paper trail. “We help the grower take what he is doing in the field to the office without losing any of the data.

The list of documents necessary to run a farming business are almost endless and are specific to what you are growing and where you are growing it. For example, HeavyConnect worked with Braga Farms in Soledad to develop the right documents for organic certification.

Mohan said mobile devices and apps are utilized in the field by supervisors, foremen and workers who typically use a drop-down menu to document specific procedures, such as a pre-harvest checklist. That information is sent to the office and the proper documentation can then be created.

Mohan said another application that is now ready-for-purchase as it has already gone through extensive testing, is its time-keeping solution. This application interfaces with a grower’s payroll software automatically handling payroll activities. But it also creates time and productivity reports and keeps track of worker training protocols.

She said food safety is another area in which documentation is critical and HeavyConnect has a solution after much testing with WG members.

Concentric Power is another company that has gone through the start-up phase and is now in full sales mode with other customers who are benefiting for the collaboration with early users with customers that were not early adopters. Director of Project Development Amy Tomlinson listed Taylor Farms, Rava Ranches and Church Bros. as three companies that were instrumental in the early development state.

With their help, Concentric Power developed an intelligent “Microgrid Controller” that is able to integrate and optimize several power sources to take a facility off-grid for extended periods of time.

Taylor Farms’ Gonzales processing facility had existing wind and solar components, but they functioned independently of each other. The goal of the microgrid and cogen project that Concentric Power built was to integrate these existing distributed energy resources (DERs) and add firm power to form a microgrid system that could effectively take the facility off grid.

At its True Leaf Farms processing facility, Church Brothers was looking for energy resilience, independence, and cost benefits. The answer was to build an onsite microgrid that consolidated existing services to take advantage of primary, firm power. The project also included provisions for growth as demand increases over time.

Concentric Power recently broke ground on a new facility at Tasteful Selections in the Bakersfield to again help solve the firm’s energy needs. The two companies collaborated to identify the need and work together to solve the problem with the aid of advanced energy technology.

iFoodDecisionSciences, which recently acquired HarvestMark, also acquired an ongoing relationship with Divine Flavor, a grower-owned distribution company based in Nogales, Arizona, with many ranches in Mexico. iFoodDecisionSciences develops data management software solutions for supply chain players. It has digitized food safety processes and combined the results with traceability efforts making reporting of food safety a practice-based rather than an audit-based activity, according to Minos Athanassiadis, who handles marketing for that company.

Working with grower-shippers, the company developed case level traceability and Athanassiadis said with this acquisition, iFoods is now the market leader in that space. They are now trying to go one-step further and bring traceability down to the consumer level with a QR code on each clamshell.

Athanassiadis said that iFoods is working to develop software that can link QR scans from the consumer container with the case code data already available. Through data analysis, the firm is working on connecting the location of the QR scan to the case code and transfer the food safety traceability data that is on the case to the clamshell scan.

Michael DuPuis, public relations manager for Divine Flavor, said traceability along the entire supply chain from food to fork is a goal of the company. He said the case labeling work that Divine Flavor initially did with HarvestMark “is a cool project” that has paid dividends.

He added that taking the traceability piece down to the consumer level is a goal of the company that could be in reach with the new-found popularity of QR codes. “The use of QR codes skyrocketed during the pandemic,” he said, alluding to the many uses such as by restaurants to eliminate paper menus. Consumers have become very familiar with scanning a QR menu to reveal data. “If you can take that same principle down to the last mile in a produce shipment that would be great.”

Theoretically, a consumer could scan a QR code on a clamshell of grapes and be presented with a host of information identifying the source of that product on a very granular level.

It is through collaboration between tech specialists and subject matter experts in the produce industry that companies in the Western Growers Center for Innovation & Technology are tackling and solving some of the industry’s thorniest concerns.

The Federal Sustainability and Climate Change Push

July 14th, 2021

By  Dennis Nuxoll, Vice President, Federal Government Affairs and
Tracey Chow, Government Affairs Specialist

Climate change and sustainability are concepts that have been around for a long time. Many buyers have been launching various sustainability campaigns that Western Growers members have had to adhere to, and several state and local governments have also been focused on environmental sustainability. President Joe Biden has returned to this theme in a major way with a focus on climate change-related sustainability. Let’s explore what the federal government might be undertaking, as well as how that could impact your operations.

Federal Ambitions

Early in its transition period, the Biden Administration made it clear that it intended to quickly follow through with one of its top campaign promises and address climate change. It released a preliminary proposal—the Climate 21 Project—that is extremely comprehensive, laying out proposals for nearly every federal agency.

For the U.S. Department of Agriculture, the intent is wide ranging, touching upon a variety of topics such as tapping into crop insurance to incentivize climate-friendly practices, improving forest management, refocusing research and development, using rural development programs to build climate friendly projects, and enhancing conservation programs. The headliner proposal is a USDA-run carbon bank, through which it would offer to buy carbon and greenhouse gas reductions from producers at a guaranteed price.

State of Play & Prospects

As of this writing, the progress of these proposals has been slow and piecemeal. USDA has solicited climate change comments from the public to add detail to many of the general concepts and guide its next phase of program design. In Congress, aspects of the Biden proposal have been introduced as stand-alone legislation, including the carbon bank proposal. Weaving some proposals into larger legislative vehicles, such as upcoming transportation and infrastructure bills, is one very likely path forward. Looking further ahead, the Farm Bill will expire in 2023, and climate policies will be a central discussion point.

Western Growers Position

As an influential voice for the fresh produce industry, WG has already had several opportunities to weigh in with federal decision-makers about our needs and perspectives, including the aforementioned public comment period. The underpinning message we are proactively reinforcing is two-fold.

First, the administration should pursue voluntary, incentive-based policies and initiatives, to both encourage new adoption of climate-friendly practices or tools and support the existing work and progress countless farmers have already undertaken. To the administration’s credit, all the proposals it has put forward and are asking for public comment upon are voluntary and incentive based; regulatory solutions are not being pushed.

Second, any such policies and initiatives must account for the vast differences of the specialty crop sector that occur at a varietal, geographical, and financial level. Produce farming is inherently more cost-intensive and generally grown on higher-value land than nearly any other agricultural segment, so compensation and support must reflect the financial cost. Unfortunately, most of the proposals and activity so far in Washington—both in the legislative and executive branches—do not account for the vast differences between fruit, vegetable and tree nut production and other types of agricultural sector production systems. Most of the effort focuses on the livestock sector (e.g., methane digesters for dairy, improved grazing land systems for cattle) or commodity row crops (e.g., expanding no-till systems).

Opportunities

We believe that there are multiple opportunities for the produce sector as the federal government ramps up efforts around climate change and sustainability. We highlight a few here that the industry could explore and areas we will push with USDA:

1. Packing sheds. At the packing shed level, we believe there are several areas where USDA programs can increase efficiency to reduce carbon emissions while also saving companies money. Biomass systems can be installed as a cleaner way to deal with agricultural green waste (e.g., vines, tree branches, leaves) than burning or chipping while also providing renewable energy. Digesters could be utilized beyond dairy for the produce sector since they can work to convert ag waste into renewable energy. A focus on food packaging could help lower carbon footprints while also improving efficiency. Finally, identifying ways to reduce food waste and keep more edible food in the supply chain longer would expand the reach of our products to more consumers who enjoy them.

2. Orchard crops. Orchard crops provide some unique opportunities that haven’t fully been considered by carbon systems. Just looking at almonds, a 2015 report by the University of California, Davis found that 1 kilogram of California almonds typically results in less than 1 kilogram of CO2 emissions. Moreover, current almond farming practices are offsetting roughly 50 percent of these emissions, as the industry has made strides to improve its air quality impact, water usage, and orchard recycling methods. Furthermore, as USDA considers providing crop insurance incentives for carbon-reducing conservation practices, orchard crops—which routinely use crop insurance—could be prime candidates.

3. Field grown produce. Most of the USDA carbon efforts around crops focus on strategies like no-till which do not neatly suit field grown produce. However, that does not mean that our opportunities will vanish. For example, exploration of new pesticide and fertilizer management techniques and technologies could help producers reduce carbon emissions, as well as save money while maintaining yield.

4. Energy savings. One area that USDA can help producers in all aspects of the industry is around comprehensive whole on-farm energy audits to provide recommendations for how energy conservation and efficiency can be achieved. Beyond that, USDA programs can be utilized toward energy efficiency upgrades for agricultural buildings and facilities. USDA also could have programs that incentivize or assist farmers with swapping or upgrading to newer, cleaner tools and systems. As one potential model, since 2017 California has operated the Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program, which provides funding through local air districts for upgrading agricultural harvesting equipment, heavy-duty trucks, agricultural pump engines, tractors, and other equipment used in agricultural operations.

Overlap with Private Sector and States

Many of you may be thinking that some of this is old hat. You are already involved with or familiar with some of the opportunities described above because there are state programs—such as the California Healthy Soil Initiative—or buyer sustainability programs that undertake some of these practices. We agree; we think that there is some work to build on as we explore these federal opportunities.

We firmly believe that this topic is not going away. A focus on environmental sustainability has only increased over the years. Today, most buyers have some type of program, and the level of complexity only seems to be getting higher. Given the degree of overlap between private sector focus and public sector opportunity, it is common sense for Western Growers to help shape the federal program and opportunities on behalf of its members.

While we know that many of you are involved in some of these environmental sustainability efforts, we want to learn about what you are doing to better shape our advocacy. We encourage you to reach out to us, the authors, with your story or questions.

Director Profile: Boskovich Follows Well Worn Path to Company Business

July 14th, 2021

George Boskovich III, Boskovich Farms and Fresh Prep

By Tim Linden

“When I was in high school, I mentioned to my dad that it would only be a couple more years before I would be working full time for Boskovich Farms,” recalls George Boskovich III, the fourth generation of the family tree involved in agriculture. “But he told me, he wouldn’t hire me unless I had a college education.”

George III, who is not called that except in the office and in this article, moved to Camarillo when he was five years old and ever since assumed he would become an active member of the Boskovich farming team. “It seems my dad (George Boskovich Jr., CEO of Boskovich Farms) always took me to work with him. At least that’s the way I remember it. From an early age I always wanted to work with my dad and figured I would.”

The younger George did go to California State University at Channel Islands, which is the youngest university in the Cal State system. George majored in Business Management and did join Boskovich Farms on a full-time basis in 2005. “My dad started me off in the sales office. He wanted me to learn about each customer and know what products they buy and how they wanted them.”

After about 18 months, George III went into the operations side to gain more knowledge on every aspect of the firm from growing through harvesting, cooling and processing. “I have been involved in many different projects in all aspects of the operation over the years,” he said.

Not too long ago, the Boskovich Farms management team, which includes George III as well as his father and others in the family business, decided to spin off its Fresh Prep division as a stand-alone company. “We did it for a number of reasons,” said George III, who serves as CEO of Fresh Prep while also continuing to wear the hat of vice president at Boskovich Farms. “We wanted to be more nimble and be able to meet consumer demand more easily.”

He said there were also fiscal management reasons, including separating risks on the business side, but first and foremost was the concept of being able to make decisions independent of the farming and commodity operations.

“This is my project,” George says, noting that sometimes the commodity and value-added businesses have to make decisions without considering the impact on each other.

To be sure, Boskovich Fresh Food Group Inc. is the parent company of both Fresh Prep and Boskovich Farms and the two sister companies do have a symbiotic relationship. But Fresh Prep also works with other growers for supplies of its value-added offerings. In 2020, Fresh Prep added a new value-added product line under its new “Fair Earth Farms” brand. The initial line included single-serve and bagged salad kits in 100 percent compostable packaging, and continues to expand.

In 1915, the family farming operation, which would eventually become Boskovich Farms, was started in the Los Angeles area by Stephen Boskovich, who had emigrated to the United States from Croatia in the 1880s. After World War II, Stephen’s three sons—Phil Sr., George Sr. and Joe—took control of the company, expanded it tremendously and started growing green onions, which became Boskovich Farms’ signature crop.

In the 1970s, the third generation joined the fold and today two of those members remain in the top leadership positions. George Jr. is the CEO of Boskovich Farms while Phil Jr. runs the growing operations.

As a member of the fourth generation, George III is joined by cousins Phil III and Bridget (Phil’s kids) rounding out the quintet of Stephen Boskovich’s family tree currently involved in the 105-year-old company.

Today, Boskovich is a well-rounded company with dozens of crops, but George III said green onions are still its number one item. “They represent about 25 percent of what we do.”

The company also has significant involvement in spinach, romaine and cauliflower, with foodservice sales accounting for about half of the business.

George said COVID and the heavy foodservice focus of Boskovich made 2020 a challenging year. “But we got through it and every week it seems like more of our foodservice business is coming back.”

The Fresh Prep CEO knows it is an increasing challenge to farm in California for many well-publicized reasons, but he believes the California ag industry will still be around, in one way or another, to provide opportunities for his children. “There will still be farming in Ventura County for at least another generation,” he predicted. “We may have to change the crops we can grow here, but the Oxnard Plain will still be here,” he said, noting that there has been a moratorium on employing ag land for other uses and he expects that moratorium to be renewed when it soon expires.

George, who turned 40 very recently, spends much of his free time with his family. He and Joanna married in 2014 and have two sons with six-year-old George IV showing an aptitude for golf.

The Short & Sweet

•   Name: George Boskovich III

•   Title: Vice President of Boskovich Farms, CEO of Fresh Prep

•   Namesake: Grandfather George Boskovich Sr. helped build the company that was started by his father, Stephen Boskovich. George Boskovich Jr. is current CEO of Boskovich Farms. And yes, there is a George Boskovich IV, who’s not yet old enough to be part of the fifth generation of the Boskovich family to farm in California…but his time is coming…around the late 2030s.

•   Family: George and his wife, Joanna, have two children: George IV, 6; and Henry, 4.

•   Family Pastime: George Sr., George Jr., and George III are into car collecting, concentrating on those in the Ford family. They have quite a few cars among them including more than a handful of Mustangs.

•   College: George earned his business management degree at nearby California State University at Channel Islands.

•   Fun Fact: “Before I popped the question to my bride, we did have subtle conversations about my intention to name my son, if we had one, George IV. If she didn’t agree that would have been a deal-breaker,” he joked.

•   More Name Games: In the office, his colleagues do call him George3, but when the family gets together there has never been an effort to distinguish among the various “George” generations with cute nicknames. “You can tell by the inflection and the tone of voice which George is being referred to,” he said.

A Legacy of Peaches on the Western Slope…and Much More

July 14th, 2021

Bruce Talbott, Talbott’s Mountain Gold, Palisade, CO
Colorado Member Profile
Member since February 24, 2014

A Family Migrates: In the first several decades of the 20th century, the state of Colorado tried to entice residents of Iowa to relocate to the Rocky Mountain State claiming that it had an abundance of “good air and good water.” Bruce Talbott’s great-great grandfather, Joseph Evan Yeager, took the bait and moved west in 1907, and began the family history of growing peaches on the Western Slope near Palisade. Harry Augustus Talbott, a farmer from Kentucky and Bruce Talbott’s grandfather, married into the Yaeger family and began what is now Talbott Farms.

The Early Years of Talbott Farms: Granddad Talbott started the business at its current location in 1945 and ran it relatively independently, though he had some summer help from his four sons with one eventually managing a set of satellite orchards. “My granddad was an autocrat who kept tight control over the organization. Dad taught school and though he planted an apple orchard in the early ‘70s and bought a peach orchard a few years later, most of his farming efforts were marketed through the local peach co-op,” said Bruce Talbott.

When the elder Talbott retired in 1985, the organization was 90% apples, 5% peaches and 5% pears. After he retired, Bruce and two of his brothers—Charlie and Nathan—along with his dad took over the operation and have since greatly expanded it. “Dad was the exact opposite of my granddad. He had no desire to be a controller. In the early years, he was happy to let us do what we believed was necessary to stay viable.” A fourth brother went into medicine and became a doctor. He does own orchards with the production being part of Talbott Farms.

Talbott Farm’s Evolution: Today’s farm is 65% peaches and 30% wine grapes. They have some conventional and organic cherries and also produce sweet cider, hard cider and wine. Bruce said that the 1990s were a period of transition. They had some problems with peaches in the 1990s and started eliminating the apples in 1999, shipping their last apple crop in 2005. Wine grapes came into their vision in 2000. Though they were gun shy about peaches, they remained an important crop and today, Bruce Talbott raves about Colorado’s Palisade Peaches, the family’s signature crop, which he believes rivals any peach out there for great taste. The Talbotts market that peach “anywhere but California,” Bruce quips, adding that sales to several Midwestern states form the heart of their deal. Palisade Peaches are marketed from mid-July to mid-September, with the cooperation of Mother Nature. Talbott Farms grows about three dozen varieties within that time frame with each having a 10-14 day harvesting window. “We get a premium for our fruit in our market,” Bruce said.

The three brothers have divided the task of running the operation into three well-defined compartments. Bruce oversees farming, Charlie runs the business end of the operation, and Nathan is in charge of packing and processing. That includes the cider business, which was launched in 1983 and “has become a significant part of what do.” The hard cider business, and later the wine business, was started six years ago and Bruce commented that his teetotaling mother has never quite been comfortable with the wine grape and hard cider businesses.

Bruce Talbott’s Journey: Bruce was born in 1959 and grew up around the family business. He began driving a tractor and working on the farm at a very young age, which convinced him that he was going to grow up and be farmer. He worked on the family farm during summers and knew that would be his career. He took a slight detour after college and went on an eight-month worldwide tour with his younger brother. They worked along the way, picking apples in England, grapes in France, oranges in Greece and grapefruit in Israel, basically being international fruit hobos. They attempted to pick tea leaves in Malaysia but weren’t given the job. Bruce returned to Colorado to continue managing orchards for a couple neighbors. “An attempt to work for my granddad proved to be unsuccessful at which point he decided to retire,” Bruce said.

Diversification: Though the Palisade peach is their top crop, Talbott Farms has been built to last with diversification being a key component of that strategy. The operation now includes a taproom with wine and cider on tap. Bruce said the area is well known as a destination with bike riders often stopping by for a sip of one beverage or another. “We are only two miles off of I-70. It’s a very easy place to get to and a lot of tourists come by looking for fruit and wine.”

The brothers have separated the operation into multiple entities with the alcoholic beverage portion being under a separate business structure from the fruit side. A new dry storage facility was built last year for paper, aluminum cans, etc. to free up cooler space. The taproom, which was the original sweet cider building, has also seen a number of upgrades including recently adding a new stage for events.

The Next Generation: Bruce (who was born Harry Bruce Talbott) is not certain how the transition to the next generation will occur. Three of his four kids are currently involved in the alcohol and retail side of the business though “Harry” Charles Talbott would prefer to brew beer over making hard cider and wine. There are additional nieces and nephews that will hopefully return but at the moment there is no heir apparent for the farming side of the venture. Bruce said he and his brothers were never forced into the family business and he is giving his kids that same latitude. “I think a family member should spend 10 years elsewhere before coming back to work here,” he quipped.

Industry Involvement: Bruce has always been the brother involved in the farming organizations including the local Farm Bureau, Western Colorado Horticultural Society, Colorado Association of Viticulturalists and Enologists, Child and Migrant Services, Western Growers, and the Colorado Fruit and Vegetable Association. When longtime CFVGA President Robert Sakata stepped down to accept a position on the Colorado Water Conservation Board, Talbott was elected president. “I’ve always felt it was important to be a part of these organizations whether it was out of passion for agriculture or out of a sense of self preservation.”

Colorado’s Regulatory Drift Toward California: Bruce Talbott has nothing against his agricultural colleagues in California, but he is a bit perturbed about his state following California’s lead in several thorny areas including a change in overtime pay regulations, other labor laws, water priorities and urban sprawl. He said Colorado has always had good right to farm laws but population growth, urban encroachment and demographic shifts are bringing new voices to the table that have the potential of drowning out the farm community. The urban-rural divide has never been greater, affecting political attitudes and voting patterns.

President’s Notes: Lessons Learned?

July 14th, 2021

Business owners and their employees are constantly seeking to learn from successes and mistakes in order to improve their products, processes and service. Adaptation to get better is a never-ending commitment. Those who fail to make that commitment are likely to fall by the wayside as competitors charge ahead.

Government, on the other hand…well, let’s just say, “If only.”

Conservatives often say that government should be run like a business. While I think there are some business practices government agency leaders can and should adhere to, the reality is government agencies really can’t be run like businesses, because they just aren’t. They are public agencies funded by taxpayers, staffed almost entirely by employees with civil service protections and union collective bargaining agreements arranged between union leaders and, in states like California, public officials who were elected with the strong support of the same union leaders.

On top of those realpolitik realities, the mission of most government agencies is to perform functions that cannot be cast into a profit-and-loss mold. Still, we deserve government that is more interested in doing better by the taxpayers than in doing whatever unions and other powerful interests demand.

Granted: Government agencies are not motivated to analyze, learn, adapt and improve in the same way businesses are. The “profit motive” that drives businesses to perpetually challenge assumptions and adapt is really a survival motive. For government agencies, there is no risk of “going out of business.” Indeed, it is the rarest of things when a government agency actually ceases to exist.

The motivation to get better in government, therefore, must be an altruistic one. The people we elect to lead our government and all its agencies must lead, and be accountable for, the tough work of driving change in laws that are missing their intended mark and ensuring that bureaucracies constantly adapt to practical and economic realities.

Let’s start with Cal/OSHA and its troubling approach to COVID-related workplace safety rules, known by the bureaucratic acronym ETS (Emergency Temporary Standard). The emergency rules were a mishmash of union-promoted requirements that caused enormous confusion and cost for businesses with little factual basis. Indeed, career Cal/OSHA staff and business groups maintained that the proposed rules were not needed at all, noting that existing workplace safety rules were more than adequate to the task. But the unions insisted otherwise, and the political appointees who hold seats on the Cal/OSHA governing board overruled their staff.

Western Growers led a business coalition that challenged the rules in court, which is testament to just how onerous and illogical the rules were; organizations like ours are not eager to make the large financial commitments needed to launch lawsuits, but in this case the deaf ears of the Cal/OSHA board and the Newsom Administration left us no option.

The question now, given Governor Newsom’s order to lift most of the ETS requirements, which essentially preempted the slow and confused Cal/OSHA, should be obvious: What will Cal/OSHA and the Newsom Administration do to conduct a brutally honest self-assessment of the way this agency performed during the COVID shutdowns? And what changes will be made to the agency’s regulatory philosophy, processes and engagements with regulated businesses in light of its many missteps?

The same questions should be asked of the Coachella City Council, which ignored the laws of economics in ordering farmers to pay workers an additional $4 per hour, couched as “Hero Pay.” Here again, WG was compelled to file a lawsuit challenging the city’s orders, but it should have been obvious to city council members that the order would harm farmers operating on non-negotiable contracts in a globally competitive market. And that would ultimately translate to harm to the farm employees the city council was purportedly trying to help. Will the members of the city council now go back and conduct an honest assessment of their actions and the unintended economic consequences of their orders?

Legislative policy makers should be equally motivated to assess, learn, adapt and improve. In California, they could start with the state’s overtime statute governing farm employees. The real world experience under this law is mounting and it all points one direction: Farm workers are losing wage-earning opportunities as employers—fighting global competition and extremely tight margins (thanks in no small part to California’s enormous regulatory burdens)—alter operations to minimize the bottom line impact of this law. The tough question legislators should be asking themselves is whether their desired outcome is being realized by virtue of the mandate they imposed, or whether instead the laws of economics are once again prevailing. If it’s the latter (spoiler alert: it is!), the right thing to do, for farmers and farm workers alike, would be to repeal or otherwise dramatically change the overtime law to restore farm worker wage-earning capacity.

If we all press on our elected legislators and Governor to hold themselves accountable on these issues in a cool and clinical way, perhaps change is possible. The alternative is too ugly to contemplate.

Inside Western Growers

July 14th, 2021

The Western Growers Family of Companies is built on the strength of 445 dedicated employees providing expert advocacy and services across multiple business lines. To honor its employees who demonstrate “above and beyond” service, Western Growers recently launched an Employees’ Choice Award Program where employees select and honor fellow team members for their exemplary work and remarkable outward mindset. Meet the latest Employees’ Choice recipients, Trevor Smith and Jason Hayes.

TREVOR SMITH

•   Name: Trevor Smith

•   Title: Programmer II

•   Department: Information Services

•   WG Tenure: 4 years

•   Favorite Part about the Job: Collaborating as a team with operations and developers to share ideas and expand system capabilities.

•   Best WG Memory: Being greeted by the ENTIRE Western Growers team on his first day.

•   Claim to Fame: Trevor is an expert problem solver. He not only develops innovation applications that support WG stakeholders, but he is an expert as providing efficient solutions to even the most complicated issues.

•   Most Coveted Achievement: “My biggest accomplishment is going from a recent graduate to a mid-level developer who can provide help, support and solutions to my peers.”

•   Personal Mantra: Always help those who cannot help themselves.

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JASON HAYES

•   Name: Jason Hayes

•   Title: Claims Auditor

•   WG Tenure: 11 years

•   Home Base: Fresno, CA

•   Claim to Fame: Jason meticulously performs in-depth audits to ensure compliance within health (medical/dental) benefit plans of Western Growers Assurance Trust/Pinnacle Claims Management, Inc.

•   Best WG Memory: The parking lot barbeques at the Fresno office!

•   Favorite Quote: Live life to its fullest.

•   Tiny Tidbit: Jason left WG in 2009 when he moved away. His passion for and dedication to the company compelled him to come back seven years later, and he’s been on board ever since…

Western Growers Assurance Trust Launches Newly-Designed Website

July 1st, 2021

Western Growers Assurance Trust (WGAT) is excited to announce the launch of its newly-designed website.

Visitors can learn more about WGAT’s affordable health plans and services, including health management and wellness programs, pharmacy benefits management solutions and Mexico Cross-Border plans.

The new website gives plan participants easy access to resources and forms; frequently asked questions; and a streamlined way to search for medical, dental, vision, and Cedar Health & Wellness Center providers under its “Find a Provider” tab. Plan participants, employers, and providers can also conveniently access online portals directly from the website.

WGAT hopes you find the new website fresh and modern, with easy access to information about WGAT. www.wgat.com