CA Bill That Changes Law for H-2A Workers Stalls in Senate

September 10th, 2021

AB 857, a California bill that would change the law by expanding the definition of “voluntary” and “mandated” travel time, has stalled in the Senate for this year. It is now a two-year bill.

AB 857 attempts to:

  • add new situations whereby travel time would be required to be paid to H-2A employees
  • require employers to provide redundant information to employees, creating potential liability when the employer provides the information in one notice, but not another

Western Growers continues to work with other agricultural interests in opposition to this bill. We will continue lobbying against AB 857 and will keep WG members apprised of any updates. 

Tags: ,
Posted in News | No Comments »

WG Applauds Elaine Trevino Nomination as Chief Ag Trade Negotiator

September 14th, 2021

Western Growers congratulates Elaine Trevino on her nomination to be the next chief agricultural trade negotiator at the Office of the U.S. Trade Representative.

President Joe Biden announced Trevino’s nomination yesterday, and if confirmed, she will play a crucial role in elevating the importance of agricultural issues in U.S. trade negotiations. Trevino is a former California deputy secretary of food and agriculture and currently serves as the president of the Almond Alliance of California.

Tags:
Posted in News | No Comments »

New Funding Opportunity for Agricultural Water Conservation and Efficiency Projects

September 21st, 2021

The Bureau of Reclamation and the Natural Resources Conservation Service (NRCS) are making federal funding available to improve efficiency of agricultural water use in California.

Up to $1.5 million will be awarded by Reclamation in fiscal year 2022 via grants or cooperative agreements to entities with water or power delivery authority, including water districts and irrigation districts, with the goal of improving water use efficiency in delivery to the agricultural sector.

The NRCS will then announce a separate program to provide funding to farms within those districts for water conservation practices to complement these projects.

Eligible projects in the past have included canal lining or piping, turnout metering and weir structures.

Applications are due November 1 and more details can be found at www.grants.gov by searching for keywords “agricultural water use efficiency and conservation projects.”

Tags: ,
Posted in News | No Comments »

CDFA Accepting Proposals for 2021 Specialty Crop Multi-State Program

September 28th, 2021

The California Department of Food and Agriculture (CDFA) is accepting proposals for the 2021 Specialty Crop Multi-State Program (SCMP), a federal grant opportunity offered by USDA’s Agricultural Marketing Service.

The SCMP will competitively award funds to projects that enhance the competitiveness of specialty crops by funding collaborative, multi-state projections that address regional or national-level specialty crop issues. These issues can include food safety, plant pests and disease, research, crop-specific projects addressing common issues and marketing and promotion.

Specialty crops include fruits and vegetables, tree nuts, dried fruits, horticulture and nursery crops, including floriculture. Grant awards will range from $250,000-$1 million per project; projects may last for up to three years.

Additional information is available at the CDFA SCMP website.

Tags:
Posted in News | No Comments »

CDFA Seeks Members for Specialty Crop Block Grant Technical Review Committee

September 30th, 2021

The California Department of Food and Agriculture (CDFA) is seeking reviewers for the 2022 Specialty Crop Block Grant Program Technical Review Committee (TRC). Reviewers must have knowledge and expertise regarding California’s specialty crop industry.

The TRC reviews, evaluates and makes recommendations to CDFA on proposals submitted for funding to California’s Specialty Crop Block Grant Program. This is a volunteer position.

If any Western Growers member is interested in serving on the TRC, submit a completed application form and résumé to [email protected] before 5:00 p.m. on Monday, October 4, 2021. For more information, review the Committee Participation document or visit the program’s website at www.cdfa.ca.gov/grants.

Tags:
Posted in News | No Comments »

Clear the Exits! Locked or Blocked Emergency Exits Can Cost You

September 9th, 2021

Emergency exits that are blocked (e.g., by boxes, stored items) or locked is a serious safety violation and can result in very costly fines and penalties. Case in point: Dollar Tree got slapped with a $129,000 fine by OSHA for having locked its emergency doors at a Texas store during working hours. Dollar Tree has also been hit with six figure citations for blocking emergency exits with boxes and other supplies.

The takeaway: Regularly check to be sure emergency exits are unlocked and clear of supplies and debris to ensure that employees can make a quick escape in the event of an emergency. 

Tags: , ,
Posted in News | No Comments »

Court Reinstates California Ban on Most Mandatory Arbitration Agreements

September 23rd, 2021

The Ninth Circuit Court of Appeals recently ruled that California’s Assembly Bill 51, which would make it unlawful for California employers to require applicants and employees to sign arbitration agreements as a condition of employment, is not preempted by the Federal Aviation Act (FAA). The court lifted a lower court’s injunction that has barred the law from taking effect since 2019. 

On a positive note, the court emphasized that AB 51 does not void arbitration agreements previously entered into under the FAA, does not prohibit employers from offering arbitration on a voluntary basis and does not invalidate an arbitration agreement entered into under the FAA, even if the agreement had been required as a condition of employment. Finally, the court upheld the lower court’s ruling that the FAA preempts AB 51’s civil and criminal penalties imposed on employers that violate AB 51. 

The 2-1 split decision is likely to be appealed for review by the full Ninth Circuit or ultimately to the United States Supreme Court, which has consistently struck down the State’s attempts to ban mandatory arbitration in employment agreements for violating the FAA.

Employers should carefully monitor this case. Assuming the case is reviewed by a larger panel of the Ninth Circuit or by the Supreme Court, review could stay the effect of the panel’s decision. 

Tags: , ,
Posted in News | No Comments »

2021 COVID-19 Supplemental Paid Sick Leave Expires on Sept. 30, 2021

September 23rd, 2021

From January 1, 2021 to September 30, 2021, California requires employers with 26 or more employees to provide their workers up to 80 hours of supplemental paid sick leave (SPSL) for COVID-19 related reasons. Employers must provide this paid time off for employees who need to stay home due to COVID-19 illness or exposure, caring for a family member, a COVID-19 test or vaccine, recovering from side effects, and more.

Employees taking 2021 SPSL as of September 30, 2021, may continue to take the leave they are currently on even if the entitlement extends past September 30, 2021. Additional information on the 2021 SPSL is posted on the Labor Commissioner’s webpage.

Tags: , , ,
Posted in News | No Comments »

Western Growers Denounces Passage of AB 616 in California Legislature

September 2nd, 2021

IRVINE, CALIF. (Sept. 2, 2021) – In response to passage of AB 616 by the California State Legislature–first in the Senate on August 26 and then in the Assembly on September 1–Western Growers President & CEO Dave Puglia issued the following statement:

“It is both ironic and shameful that a body of elected leaders would act to strip farmworkers of their own democratic protections in the union election process, including the right to a secret ballot vote overseen by the Agricultural Labor Relations Board. Despite misleading claims to the contrary, AB 616 is not a simple, benign shift to mail-in ballots. Rather, this bill aims to circumvent the democratic process entirely, and vests in union organizers the dangerous power to disenfranchise farmworkers and predetermine election outcomes. Ten years after his predecessor vetoed card check, we call on Governor Newsom to once again protect the fundamental freedom of choice for farmworkers.”

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in California, Arizona, Colorado and New Mexico. Western Growers’ members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. Connect and learn more about Western Growers on Twitter and Facebook. 

###

Tags:
Posted in Press Releases | No Comments »

California Fresh Produce Industry Decries Assembly Action on SB 559

September 8th, 2021

IRVINE, CALIF. (September 8, 2021) – In response to California State Senator Melissa Hurtado being forced to pull SB 559 after the California State Assembly Appropriations Committee removed all funding provisions, a coalition of leading California fresh produce organizations issued the following statement:

“With nearly 90 percent of the state in extreme or exceptional drought, including virtually all the 3.25 million acres of farmland dependent on irrigation from the State Water Project and Central Valley Project, the move to strip SB 559 of its funding demonstrates the clear intent of the Assembly to drive food production out of California,” said California Fresh Fruit Association President Ian LeMay. “In light of the staggering state budget surplus, the decision to defund the repair of our critical conveyance systems is not financial, but ideological, and will harm thousands of multi-generational family farms and countless disadvantaged communities in the San Joaquin Valley.”

“Water supply reliability is central to the production of food in California, and vital to the rural communities and statewide economy that is supported by the agriculture industry,” said California Citrus Mutual President and CEO Casey Creamer. “SB 559 would have funded long overdue repairs to canals and other conveyance infrastructure that have been damaged by subsidence. California cannot afford to waste even a single drop of its limited water resources in the face of changing hydrological conditions and recurring drought. In addition to the need to build more above and below ground storage, our state must also invest in fixing our broken water delivery systems.”

“Farms that cannot irrigate crops to grow food will inevitably reduce operations or cease farming altogether. When enough of them do, farmworkers lose the most,” said Western Growers President and CEO Dave Puglia. “In once again eviscerating Senator Hurtado’s legislation to repair critical water infrastructure, the Assembly’s leaders leave no uncertainty as to the future they want for the farms, farmers, farmworkers and communities of the San Joaquin Valley. They will do whatever it takes to keep taxpayer money flowing to a high-speed rail project we can do without and do whatever it takes to deny funds to help repair water infrastructure we cannot do without. We are enormously grateful to Senator Hurtado for her tenacity and to those who stood with her even as their leaders gave them, and all of us, the middle finger.”

About California Citrus Mutual:

California Citrus Mutual was founded by growers in 1977 as a non-profit trade association and is headquartered in Exeter, California. Our members are citrus growers that collectively grow oranges, lemons, mandarins, and grapefruit across roughly 250,000 acres in California. They provide Californian’s and the world with the highest quality fresh citrus, are a critical economic sector for our rural communities, and provide ladders of opportunities for their hardworking employees and their families.

About California Fresh Fruit Association:

The California Fresh Fruit Association is a voluntary public policy organization that works on behalf of our members – growers, shippers, marketers and associates – on issues that specifically affect member commodities: fresh grapes, kiwis, pomegranates, cherries, blueberries, peaches, pears, apricots, nectarines, interspecific varieties, plums, apples and persimmons. It is the Association’s responsibility to serve as a liaison between regulatory and legislative authorities by acting as the unified voice of our members

About Western Growers:

Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in California, Arizona, Colorado and New Mexico. Western Growers’ members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. Connect and learn more about Western Growers on Twitter and Facebook. 

Tags:
Posted in Press Releases | No Comments »

National Coalition Urges Additional Water, Conservation Resources in Reconciliation Package

September 20th, 2021

IRVINE, Calif. (September 20, 2021) – With over 80 percent of the West currently experiencing severe, extreme or exceptional drought conditions, and more than 2.2 million acres of land already burned across the Western states, a national coalition representing agriculture, public water agencies and the environmental and conservation communities urged Congress to include resources for additional water, forestry and ecosystem restoration programs as it considers another package of investments using the reconciliation process.

On August 10, the Senate passed the Infrastructure Investment and Jobs Act, which included more than $8 billion to address critical Western water supply needs, including to repair aging dams and canals, build new surface and groundwater storage and conveyance facilities, fund water conservation and recycling projects, and enhance watershed management and improve ecosystems.

On Friday, the Environmental Defense Fund, Irrigation Association, The Freshwater Trust, and Trout Unlimited joined the Western Water Infrastructure Coalition in a letter to Congressional leadership calling out funding gaps that remain in areas critical to counteracting the historic drought and wildfire currenting gripping the West.

“Additional resources are necessary to improve the long-term management and resilience of water resources and the natural environment amongst changing climate and hydrological conditions,” the coalition letter said.

In the letter, the coalition identified additional funding needs for the U.S. Department of Agriculture (USDA) and U.S. Department of the Interior (DOI) to accelerate the pace and scale of restoration that improves ecosystem resiliency, reduces the risk of uncharacteristic wildfire, deploys water technology, boosts conservation programs, and responds to the ongoing drought emergency.

The following is a list of specific funding requests included in the letter:

  • Double funding for USDA’s Natural Resources Conservation Service (NRCS) program, which promotes a variety of practices that can aid in drought protection of agricultural operations.
  • $30 billion for USDA’s Forest Service to accelerate restoration actions that reduce hazardous fuels and improve overall forest and watershed health.
  • $170 million for DOI technology deployment programs that allow for better water management and decision making at the Bureau of Reclamation and U.S. Geological Survey.
  • $1.5 billion for emergency drought response activities, including relief for dry groundwater wells, compensated water use reductions, environmental response, and power costs.

In addition to increasing funds for these critical priorities, the coalition urged that the funds be deployed with a focus on achieving durable and quantifiable watershed resilience outcomes, which can be achieved by working across federal funding silos and ensuring that projects are coordinated and combined to achieve the greatest benefit for the least cost.  

The letter concluded by noting that timely federal investments in a mixed water management portfolio will spur economic recovery and prepare our country to meet the diverse water infrastructure needs of the next generation.

Click here for the letter to Congressional leadership.

About Western Water Infrastructure Coalition

The Western Water Infrastructure Coalition includes organizations from 15 states that collectively represent $120 billion in agricultural production—nearly one-third of all agricultural production in the country—and many of the local and regional public water agencies that supply water to more than 75 million urban, suburban and rural residents.

About Association of California Water Agencies:

The Association of California Water Agencies (ACWA) is a statewide association of public agencies whose more than 450 members are responsible for about 90% of the water delivered in California. For more than a century, ACWA’s mission has been clear: to help members promote the development, management and use of good quality water at the lowest practical cost and in an environmentally responsible manner.

About California Farm Bureau:

The California Farm Bureau works to protect family farms and ranches on behalf of nearly 32,000 members statewide and as part of a nationwide network of more than 5.5 million Farm Bureau members.

About Family Farm Alliance:

The Family Farm Alliance is a powerful advocate for family farmers, ranchers, irrigation districts, and allied industries in seventeen Western states. The Alliance is focused on one mission – To ensure the availability of reliable, affordable irrigation water supplies to Western farmers and ranchers.

About National Water Resources Association:

National Water Resources Association advocates federal policies, legislation, and regulations promoting protection, management, development, and beneficial use of water resources. The association is dedicated to achieving sustainable water supply for all beneficial uses in an economical and environmentally responsible manner.

About Western Growers:

Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Our members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce.

For further information, contact:

Cory Lunde, Western Growers 

(949) 885-2264

 [email protected] 

 

Tags:
Posted in Press Releases | No Comments »

Western Growers to Honor Carol Chandler at the 2021 Annual Meeting

September 21st, 2021

IRVINE, CALIF. (September 21, 2021) – Western Growers will honor agriculture advocate, educator, philanthropist and trailblazer Carol Chandler with the 2021 Award of Honor. The Award of Honor is Western Growers’ highest recognition of achievement and is given to individuals who have contributed extensively to the agricultural community.

Chandler is partner of Chandler Farms in Selma, Calif., a fourth-generation family farming operation that was founded by W.F. Chandler in 1880 and grows grapes, peaches, plums, nectarines and almonds. Besides serving on the board of Western Growers – including her current tenure as Treasurer – Chandler, alongside her husband, Bill, were named Agriculturists of the Year by the California State Fair Board of Directors in 2020.

“Underneath Carol’s warm and gracious demeanor lies a fierce and committed advocate for agriculture’s rightful place in our society,” said Western Growers President and CEO Dave Puglia. “There are few in our industry who have given so much time and energy in service to the greater good, and even fewer who have mustered the strength to stick with the fight even as others withdraw from disappointment. Advocacy is not for the faint of heart, which is one of many reasons Carol is so deserving of our highest honor.”

“I was overwhelmed to be chosen for the Award of Honor,” Chandler said. “It’s meant so much to me to be on the Board of Western Growers through the years.”

Besides operating Chandler Farms with her husband and sons, John and Tom, Chandler was chair of the President’s Water Task Force for California State University at Fresno; serves on the University of California President’s Advisory Commission on Agriculture and Natural Resources; and held positions with the University of California Board of Regents, the California State University Board of Trustees and the Fresno State Board of Governors. She is past state president of California Women for Agriculture, and she was named Woman of the Year by the California State Legislature twice, in 1992 and 2002. In 2004 the Fresno Chamber of Commerce named her Agriculturist of the Year.

“The Central Valley has much to be proud of and Carol Chandler is at the top of that list,” said President & CEO of Woolf Farming and Processing Stuart Woolf, who will be emceeing the Award of Honor presentation at the 2021 Annual Meeting. “She’s a wonderful person, leader and great friend to many. Carol’s sharp mind, strong core values and eternal optimism make her a perfect role model. I’m very proud to call her my friend.”  

Chandler’s calling to give back to the agricultural community started early. After receiving her bachelor’s degree from the University of California at Davis and a master’s degree from California State University at Fresno, she taught in the San Joaquin Valley, including Fresno City College. Her philanthropic work includes belonging to the La Feliz Guild of Valley Children’s Hospital and receiving the Tapestry Award by Common Threads for outstanding achievements in agriculture.

Now, it is time to recognize Chandler’s dedication to improving the businesses and lives of those in the agricultural community. Chandler’s achievements and service will be recognized at the Award of Honor Dinner Gala at the Western Growers 2021 Annual Meeting at the Fairmont Grand Del Mar in San Diego. The 2021 Annual Meeting will be held from Nov. 7 – 10, 2021; to register to attend or to take advantage of sponsorship opportunities, please go to the 2021 Annual Meeting website.

Click here for a high-resolution image of Carol Chandler. 

About Western Growers:
Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in California, Arizona, Colorado and New Mexico. Western Growers’ members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. Connect and learn more about Western Growers on Twitter and Facebook. 

###

Tags:
Posted in Press Releases | No Comments »

Western Growers Commends Governor Newsom for AB 616 Veto

September 23rd, 2021

IRVINE, CALIF. (September 22, 2021) – In response to Governor Newsom’s veto of AB 616, Western Growers President & CEO Dave Puglia issued the following statement:

“We commend Governor Newsom for rejecting the most recent UFW-backed attempt to dismantle the secret ballot election for farmworkers. In vetoing AB 616, Governor Newsom has preserved the integrity of the Agricultural Labor Relations Act and protected the rights of farmworkers in choosing whether to form or join a union. Governor Newson has sent to Sacramento lawmakers the clear message that card check has no place in California. 

“We stand ready to engage with the Labor and Workforce Development Agency, the Agricultural Labor Relations Board and other stakeholders in the collaborative process outlined by the Governor in his veto message.”

Tags:
Posted in Press Releases | No Comments »

Western Growers Ag Legal Network Directory

September 23rd, 2021

Participants in this referral service agree to give Western Growers members a 15 percent discount off of their normal legal services rates.* The WG member law firms listed below specialize in a wide array of legal issues to fit virtually any need a member may have, from business contracts to labor issues to food safety liability. WG law firm members who advertise in this issue have earned bold face designation and a descriptive phrase explaining their scope of practice.

Alvarado Smith APC

Craig Hardwick

1 MacArthur Place, Suite 200

Santa Ana, CA  92707

Phone: 714-852-6800

Email: [email protected]

Website: www.alvaradosmith.com

Specialty: Real Estate

AlvaradoSmith provides forward-looking legal advice on land use and zoning, eminent domain and real estate transactions, so farmers and agribusinesses can focus on growing their crops and businesses.
www.alvaradosmith.com

See ad on page 35.

Baker & Hostetler LLP

David Stern

11601 Wilshire Blvd., Suite 1400

Los Angeles, CA  90025

Phone: 310-820-8800

Email: [email protected]

Website: www.bakerlaw.com

Specialties: Employment & Labor, Litigation, Environment, Product Liability, Real Estate, Information Technology, Insolvency & Restructuring, Corporate Finance/M&A, Intellectual Property, Corporate Tax, White Collar Crime

Barsamian & Moody

Ronald H. Barsamian

1141 West Shaw Ave., Suite 104

Fresno, CA  93711-3713

Phone: 559-248-2360

Email: [email protected]

Website: www.theemployerslawfirm.com

Specialties: Employment & Labor, Litigation

Barsamian & Moody is The Employers’ Law Firmsm, a firm wholly dedicated to providing high quality, cost effective representation for employers in all aspects of labor and employment law.

See ad on page 32.

Brownstein Hyatt Farber Schreck LLP

Amy Steinfeld

1021 Anacapa Street, 2nd Floor

Santa Barbara, CA  93101

Phone: 805-882-1409

Email: [email protected]

Website: www.bhfs.com

Specialties: Litigation, Employment & Labor, Energy & Natural Resources, Product Liability, Commercial Real Estate, General Practice, Information Technology, Insolvency & Restructuring, Shipping & Transportation, Corporate Finance/M&A, Intellectual Property, Trade & Customs, Corporate Tax, White Collar Crime, Water, and Political Advocacy

Bryan Cave Leighton Paisner LLP

Robert E. Boone III and Jennifer A. Jackson

120 Broadway, Suite 300

San Monica, CA  90401-2386

Phone: 310-576-2385 (Robert E. Boone III)

Phone: 310-576-2360 (Jennifer A. Jackson)

Email: [email protected] and [email protected]

Website: www.bclplaw.com

Specialties: Litigation, Employment & Labor, Energy & Natural Resources, Environment, Food Borne Illness, PACA Trust, Product Liability, Professional Negligence, Commercial Real Estate, Information Technology, Insolvency & Restructuring, Shipping & Transportation, Corporate Finance/M&A, Insurance & Reinsurance, Corporate Immigration, Intellectual Property, Trade & Customs, Corporate Tax, White Collar Crime, Water, and Consumer Class Actions Defense.

BCLP’s globally-ranked Food and Agribusiness Practice represents over 600 growers, processors, suppliers, cooperatives, lenders and investors worldwide. With significant cross-practice experience, we are ingrained with you in the agribusiness sector.

See ad on page 55.

Law Offices of Shawn Caine, APC

Shawn Caine

1221 Camino Del Mar

Del Mar, CA  92014

Phone: 858-350-1660

Email: [email protected]

Specialty: Wildfire Litigation, Environment, Water, General Ag Business Law and Litigation

Deason Law, P.C.

Dax Deason

890 Osos Street Suite F

San Luis Obispo, CA  93401

Phone: 713-975-7301

Email: [email protected]

Website: www.deason-law.com

Specialties: Corporate Immigration, Employment & Labor

Dentons US LLP

Michael J. Duvall

601 South Figueroa Street, Suite 2500

Los Angeles, CA  90017-5704

Phone: 213-892-2818

Mobile: 314-570-2382

Fax: 213-623-9924

Email: [email protected]

Website: www.dentons.com

Dickenson, Peatman & Fogarty

Greg Walsh

1455 First Street, Suite 301

Napa, CA  94559

Phone: 707-252-7122

Email: [email protected]

Website: www.dpf-law.com

Specialties: Litigation, Employment & Labor, and Water

Dorsey & Whitney, LLP

Mike Droke

701 Fifth Avenue, Suite 6100

Seattle, WA  98104

Phone: 206-903-8709

Email: [email protected]

Website: www.dorsey.com

Specialties: Litigation, Employment & Labor, Energy & Natural Resources, Environment, Food Borne Illness, Product Liability, Professional Negligence, Commercial Real Estate, General Practice, Information Technology, Insolvency & Restructuring, Shipping & Transportation, Corporate Finance/M&A, Insurance & Reinsurance, Corporate Immigration, Intellectual Property, Trade & Customs, Corporate Tax, White Collar Crime, Water, and Agriculture Cooperatives

Downey Brand LLP

Dale Stern

621 Capitol Mall 18th Floor

Sacramento, CA  95814

Phone: 916-444-1000

Email: [email protected]

Website: www.downeybrand.com

Specialties: PACA Trust, General Practice, and Regulatory Compliance

Duane Morris LLP

Thomas Berliner

Spear Tower, One Market Plaza, Suite 2200

San Francisco, CA  94105-1127

Phone: 415-957-3000

Email: [email protected]

Website: www.duanemorris.com

Specialties: Agriculture, water rights/supply, cannabis, employment & labor, transactions, corporations, tax, litigation, real estate, energy and environmental, regulatory compliance, import/export, bankruptcy and business reorganization, and intellectual property.

Our attorneys assist clients in advisory, regulatory and litigation matters involving water, the environment and natural resources. Our clients face such issues as managing water rights, negotiating and contracting with agencies and complying with complex water and environmental laws.

See ad on page 31.

Faegre Baker Daniels LLP

Sarah L. Brew

2200 Wells Fargo Center

90 South 7th Street

Minneapolis, MN  55402

Phone: 612-766-7470

Email: [email protected]

Website: www.FaegreBD.com

Specialties: Food Safety, Litigation, General Practice, Product Liability, and FDA & Compliance

Fennemore, LLP

June Monroe

2603 Main Street, Suite 1250

Irvine, CA 92614

Phone: 949-752-2911

Email: [email protected]

Website: www.fennemorelaw.com

Specialties: PACA Trust, USDA Reparation and Disciplinary Proceedings, Litigation, Employment & Labor, Marketing Agreements, Growing & Packing Agreements, Secured Transactions, Shipping & Transportation, Natural Resources & Water Law, Commercial Real Estate, Corporate Finance/M&A, Estate Planning, Corporate Tax

Law Offices of Geoffrey F. Gega

1851 East First Street Suite 1050

Santa Ana, CA  92705

Phone: 714-542-1883

Email: [email protected]

Specialties: Employment & Labor

Jackson Lewis LLP

Jonathan A. Siegel

200 Spectrum Center Dr., Suite 500

Irvine, CA  92618

Phone: 949-885-1360

Email: [email protected]

Website: www.jacksonlewis.com

Specialties: Litigation, Employment & Labor

JPH Law

Lynette Jacquez

525 Ninth Street NW, Suite 800

Washington, D.C.  20004

Phone: 202-465-3000

Email: [email protected]

Specialty: Employment Law, Business Immigration, Civil Litigation

JRG Attorneys at Law

Jeffery R. Gilles

318 Cayuga Street

Salinas, CA  93901

Phone: 831-754-2444

Email: [email protected]

Website: www.jrgattorneys.com

Specialties: Litigation, Employment & Labor, Energy & Natural Resources, Environment, Food Borne Illnesses, Product Liability, Professional Negligence, Commercial Real Estate, General Practice, Corporate Finance/M&A, Corporate Tax, Water, and Personal Injury

Kahn, Soares & Conway, LLP

Theresa Dunham

1415 L St, Suite 400

Sacramento, CA  95814

Phone: 916-448-3826

Email: [email protected]

Website: http://ksclawyers.com/

Specialties: Administrative law, Agriculture, PACA, Employment Law, Environmental law, Prop. 65, Family Law, Intellectual Property, Natural Resources & Water law, Nonprofits and Corporations, Real Estate

McKague Rosasco, LLP

Erica L. Rosasco

1217 Pleasant Grove Blvd., Suite 120

Roseville, CA  95678

Phone: 916-672-6552

Email: [email protected]

Specialties: Litigation, Employment & Labor, Product Liability

Meuers Law Firm P.L.

Lawrence Meuers

5395 Park Central Court

Naples, FL  34109

Phone: 239-513-9191

Email: [email protected]

Specialties: Litigation, Employment & Labor

Moncrief & Hart PC

Paul W. Moncrief

16 W. Gabilan Street, Salinas, CA  93901

Phone: 831-759-0900

Email: [email protected]

Website: www.moncriefhart.com

Specialties: Food Borne Illness, PACA, General Ag Business Law, Employment & Labor, and Water

Noland, Hamerly, Etienne & Hoss

Ana Toledo

P.O. Box 2510

Salinas, CA  93902-2510

Phone: 831-424-1414

Email: [email protected]

Website: www.nheh.com

Specialties: Litigation, Employment & Labor, Energy & Natural Resources, Environment, Food Borne Illness, PACA Trust, Product Liability, Commercial Real Estate, General Practice, Insolvency & Restructuring, Shipping & Transportation, Corporate Finance/M&A, Insurance & Reinsurance, Intellectual Property, Corporate Tax, Water, and Estates & Trusts

Our labor and employment attorneys have over 50 years of combined expertise in all aspects of labor and employment law and the best track record on the Central Coast.

See ad on page 34.

Patane Gumberg Avila LLP

Jim Gumberg

4 Rossi Circle Suite 231

Salinas, CA  93907

Phone: 831-755-1461

Email: [email protected]

Website: https://pgalawfirm.com/

Specialties: Agriculture, Business, Litigation, Family Law, Healthcare, Insurance, Employment & Labor, Personal Injury, Real Estate, Wine, Workers’ Compensation

Sagaser, Watkins & Wieland PC

Howard A. Sagaser

5260 North Palms Avenue, Suite 400

Fresno, CA  93704

Phone: 559-421-7000

Email: [email protected]: https://www.sagaserlaw.com/

Specialties: Administrative Proceedings, Business Litigation, Employment & Labor

The Saqui Law Group

Michael C. Saqui

1420 Rocky Ridge Drive, Suite 260

Roseville, CA  95661

Phone: 916-782-8555

Email: [email protected]

Website: www.laborcounselors.com

Specialties: Litigation, Employment & Labor

For nearly three decades, The Saqui Law Group has aggressively represented employers in Agriculture, Food Processing, Manufacturing, Trucking, and Hospitality in all areas of employment, labor-management relations and workforce strategic planning.

See ad on page 33.

Shook, Hardy & Bacon LLP

Naoki Kaneko

5 Park Plaza, Suite 1600

Irvine, CA  92614

Phone: 949-475-1500

Email: [email protected]

Website: www.shb.com

Specialties: Litigation, Environment, Prop. 65, Food Borne Illness, and Product Liability

Smith, Gambrell & Russell LLP

Chris Schulte

1055 Thomas Jefferson St NW, Suite 400

Washington DC  20007

202-263-4344

Email: [email protected]

Website: https://www.sgrlaw.com/

Specialties: Employment Law, Business Immigration, Civil Litigation

Somach Simmons & Dunn

Stuart Somach

500 Capitol Mall Suite 1000

Sacramento, CA  95814

Phone: 916-446-7979

Email: [email protected]

Website: www.somachlaw.com

Specialties: Litigation, Energy & Natural Resources, Environment, Water

Wallace Jordan Ratliff & Brandt LLC

Jason R. Klinowski

800 Shades Creek Parkway # 400

Birmingham, AL  35209

Phone: 205-874-0371

Email: [email protected]

Website: www.wallacejordan.com

Specialties: Litigation, Employment & Labor, Food Borne Illness, PACA Trust, Product Liability, Commercial Real Estate, General Practice, Information Technology, Insolvency & Restructuring, Shipping & Transportation, Corporate Finance/M&A, Insurance & Reinsurance, Intellectual Property, Corporate Tax, and ADR

Law Offices of Scott A. Wilson

Scott Wilson

433 G Street, Suite# 203

San Diego, CA  92101

Phone: 619-234-9011

Email: [email protected]

Website: www.pepperwilson.com

Specialty: Employment & Labor

The Law Offices of Young Wooldridge, LLP

Mark Bateman

1800 30th Street, 4th Floor

Bakersfield, CA  93301-1919

Phone: 661-327-9661

Email: [email protected]

Website: www.youngwooldridge.com

Specialty: Employment & Labor, Ag Law, and Water

Tags:
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

Sexual Harassment—It’s Still A Thing

September 23rd, 2021

By Teresa McQueen, Corporate Counsel, Legal

October of 1991 was the first time many people ever thought about sexual harassment. Millions watched as Anita Hill stood before an all-male U.S. Senate committee, recalling sexually charged incidents that occurred at the hands of her former supervisor, then-Supreme Court nominee Clarence Thomas.

Her dramatic, sometimes graphic testimony failed to stop Thomas’ confirmation to the Court, but it started a conversation. Workers everywhere began sharing their own personal experiences of sexual harassment, until it became clear what happened to Hill was hardly an isolated incident. The American workplace was in crisis, and it needed to change.

Most organizations responded quickly, putting new policies in place, and adding mandatory anti-harassment sessions to their training programs. Congress passed the Civil Rights Act of 1991, guaranteeing protection to women in the workplace. It seemed like the culture had shifted.

It had not.

We learned this more than 25 years later. The catalyst? A series of damning investigative reports revealed a virtual epidemic of sexual harassment hiding just beneath the surface of the American workplace. It stretched from the media to politics, from the arts to the tech sector and beyond. But this time, when thousands of individuals came forward with stories of workplace mistreatment, the culture shift we’d been promised in the ‘90s finally arrived. The #MeToo movement tore through the American workplace like a hurricane. The rules of professional behavior had suddenly, irrevocably changed. What was once tolerated as routine was—and is now—deemed unacceptable.

A Recent Case In Point

A workplace “rife with fear and intimidation” is how independent investigators reporting on allegations of sexual harassment by New York Governor Andrew Cuomo described the work environment of the Governor’s Executive Chambers. A toxic workplace culture that not only enabled harassing conduct, but also “created a hostile work environment overall.”[1] Staggering.

The workplace woes plaguing the Governor’s Executive Chambers and its toxic environment are a recurring bellwether for workplaces everywhere. Whether in the field, packinghouse or the boardroom, the type of conduct described in the investigator’s report continues to happen in workplaces across the globe. It stands as a stark reminder that unprofessional behavior, abusive conduct, and incivility—left unchecked—will negatively impact workplace culture and inevitably escalate into legally actionable conduct.

Civility As a Focal Point

The fact is, encouraging civility in the workplace goes far beyond simple “manners”—things like saying “please” and “thank you” and being nice. It’s about building the kinds of relationships between team members that can sustain a healthy, productive workplace through good times and bad. This means being able to have difficult conversations while maintaining those relationships. Setting aside stereotypical gender and cultural myths that excuse potentially legally actionable conduct. It also means knowing how to stand up for yourself without trampling all over somebody else. It’s essential to maintaining the overall health of an organization…any organization. If the company can’t find a way to ensure its workers are treated with honesty and respect, the company will ultimately suffer for it.

The danger is not just if the company handles these issues “wrong,” it may face a lawsuit. The greater danger is, by failing to deal with workplace harassment correctly, the company sets itself up for a host of problems that will ultimately affect the bottom line. Employees who feel unsafe or that they are being mistreated may become less effective, while other valuable workers will seek better opportunities elsewhere. Then there’s the threat of public exposure. Websites like Glassdoor.com allow disgruntled employees to air the company’s dirty laundry for the entire world to see, robbing it of its ability to attract top talent in the future. In other words, failure to deal with workplace civility right now, in the right way, is putting the company’s profitability at risk.

Below are some important reminders when it comes to creating and maintaining a workplace free from abusive or harassing conduct.

Ethics: Ethics in the workplace is more than simply being honest with your co-workers. The concept of ethics in the workplace is broad; encompassing the notion of fair-play, equality and providing the support necessary to accomplish the task(s) at hand.

Civility: Disagreeing with co-workers on how to accomplish a specific task or harboring a strong dislike for a co-worker is never an excuse for incivility or abusive behavior. Finding yourself unable to engage in a job-related discussion professionally and calmly is a good indicator that distance, or assistance is needed.

Strength: Finding yourself on the receiving end of abusive behavior or unprofessional conduct can be shocking and momentarily debilitating. Finding that inner strength—in the moment or afterwards—to calmly respond (e.g., “That behavior is inappropriate.”), disengage (e.g., “Let’s talk about this when things have cooled down.”), or to report the behavior if it continues, is important.

Action: Beyond the obligations of an employee, there are three additional responsibilities every workplace leader should consider:

•   The responsibility not to abuse your position when interacting with subordinates.

•   The responsibility to serve as an ethical / professional role model.

•   The responsibility to promote an ethical / professional work environment.

State and federal laws mandate that employers create a workplace free from harassing conduct. Despite these mandates such conduct continues to negatively impact workplaces of all variety and sizes. Training efforts and strict “zero tolerance” policies do make a difference. But it is the day-to-day interactions with our co-workers, and our unwillingness to accept anything less than a civil and professional work environment, that will effectively stop a downward trajectory of an otherwise positive workplace culture.

Abusive and harassing conduct can only exist in environments and cultures that allow it. Ending workplace harassment and abusive conduct begins with ethics and civility carried forward by inner strength and action.

 

[1]   The Report of Investigation provides important insight into the types of harassing conduct found to be offensive by those working in and around the Gov. Executive Chambers. The report may be viewed at: https://ag.ny.gov/sites/default/files/2021.08.03_nyag_-_investigative_report.pdf

 

Tags: ,
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

Data Corner: Capture Once, Use Multiple Times

September 23rd, 2021

By Marlene Hanken, Data Analyst

Welcome to the Data Corner, a place where this resident data nerd addresses some of the most common data issues and data-related topics facing the agriculture industry today.

This column’s topic is how data can inform multiple uses or outcomes. Another way to think about it: “Capture once, use multiple times,” which refers to the ability to capture data one time with many uses in mind and in a variety of ways. Much like a single lot of fresh produce can be sent out into commerce and feed a variety of landing-places, so too can the data you capture related to your crops feed and drive multiple end uses. Analogously, those raw agriculture crops can be converted into fresh-cut products much like data can be processed and converted in visuals and other analytical tools for insights beyond their initial intended use.

Let’s look at a specific example: water usage and treatment data. These data may include information such as irrigation quantity, water type and water sources, offering a variety of uses besides satisfying internal audits. These data can be used to inform food safety practices, irrigation water management, nutrient management and sustainability outcomes (See illustration below.)

Other data points related to water applications, such as water treatment types and water quantity/quality, are instrumental in the assessment of irrigation practice effectiveness. For example, creating a graph visualizing the quantity of water treatment applied and comparing with the application date may be able to show potential treatment efficiency trends for a particular crop during any time of year. This information can help anticipate when to increase or decrease treatment quantities and provide guidance in planning resources (Example illustration at right.)

Utilization of water quantity (number of gallons/acre-feet) applied to crops is an ability for assessing nitrogen management outcomes. For instance, information such as the amount of water and nitrogen applied (along with other nitrogen applied and/or removed factors) can be used to calculate nitrogen loss through surface runoff. Poor water distribution and uniformity, including over irrigation, may lead to wasting nitrogen, displacing nitrogen away from crops where it’s needed and into possibly harmful and non-targeted areas. This is one way improper irrigation management may result in inadequate nitrogen management outcomes. While there are many factors involved in a comprehensive nitrogen management strategy, water usage data certainly plays a critical role in this arena.

Water usage and treatment data, coupled with planting/harvesting information and pathogen testing, can also inform food safety outcomes. This has long been a topic of research and study as many in the agriculture industry strive to understand the effects of irrigation practices in fresh produce safety.

To this end, the Western Growers Science team is pursuing data projects that utilize this concept of “record once, use multiple times” to satisfy multiple endpoints and increase functionality in data which our members are already collecting. The goal is simple—get more done with less work. Our data projects strive to reduce keystrokes while allowing members to continue devoting resources to where they matter most…on growing the best medicine in the world.

Do you have a data topic you want us to address in the next issue of The Data Corner? Email us at [email protected] today.

Tags:
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

Workplace Safety Practices: Keep Your Eye on the Ball Even as Workers’ Comp Rates Decline

September 23rd, 2021

By Ken Cooper, Director of Risk Strategy, Western Growers Insurance Services

In late July, the California Commissioner of Insurance once again approved a decrease in the workers’ compensation pure premium advisory rates, which are used by insurance carriers to set their rates for coverage. As a result, policyholders are likely to see a decrease in their workers’ compensation premium rates for the seventh year in a row. In fact, the approved rate reduction effective September 1, 2021, is the eleventh overall rate reduction since January 2015.

With costs for workers’ compensation insurance decreasing, focus on safety might easily be overlooked in favor of business areas where costs are increasing. Production demands also might be a source of distraction from workplace safety. In addition, the perpetual focus on compliance-based safety, especially those related to COVID-19 since early 2020, might be a distracting factor for some organizations that are dealing with compliance fatigue.

The recent focus of many employers has been placed on complying with new practices related to the prevention of the spread of COVID-19. According to the Workers’ Compensation Insurance Rating Bureau of California’s 2021 “State of the System” report, only 6 percent of agriculture workers’ compensation indemnity claims were attributed to COVID-19 (compared to 60 percent in healthcare or 20 percent overall). The low incidence rate among agriculture employees, who largely remained actively working in their normal essential capacity while many other businesses could shift to remote work, speaks volumes to the effectiveness of safety measures taken by ag businesses to protect their employees.

As we look to press forward in times like these, it is especially important to increase and maintain focus on safety rather than giving in to the plethora of distractions. Occupational Health and Safety Administration fines continue to increase annually, and the insurance market is always subject to hardening and softening. Additionally, declining workers’ compensation rates can affect experience modifications. Lower payroll levels and lower expected loss rates mean that claims have greater impact on experience modification changes.

There are also the intangible costs associated with a lapse of safety focus—a compounded labor shortage, loss of productivity, decreased morale, increased employee turnover, economic loss to the families of injured employees. Simply put, protecting employees properly is crucial to the economy, our communities, fellow workers and families. Implementation of and focus on effective safety and health programs allow your employees to prosper and your business to thrive.

Safety is a critical factor that a business retains control of, regardless of regulatory or market conditions. Your employees are an investment, and as with any investment, it is in your best interest to protect them. Focusing on safety and health will benefit your business in the short term as well as help you avoid possible losses in the future. Therefore, do something about safety; invest in safety equipment, technology and programs now while workers’ compensation insurance rates are reduced so your business is prepared to be a best-in-class performer.

Tags: ,
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

BOOST BIOMES: Harnessing the Hidden Relationships of Microbiomes for Ag

September 23rd, 2021

By Ann Donahue

Boost Biomes wants to grow big by focusing on the small stuff.

Based in Brisbane, Calif., and founded in 2016, the agtech startup uses state-of-the-art DNA sequencing to identify microbial products that could be sold in the commercial marketplace.

Using its proprietary sequencing technology platform, Boost is in the process of developing microbiome products for food and agriculture. Right now, the company has two beneficial microbial products—one a biofungicide, the other a nematicide—going through the registration process with the Environmental Protection Agency. The biofungicide was created as part of a development and license agreement with International Flavors & Fragrances Inc.’s Health & Biosciences Division.

According to Doyle Galvin, the Director of Strategy and Corporate Development at Boost, the end goal is to create microbial products in a way that is profitable for Boost and its partners—but by using a process that keeps an eye towards sustainability. “It’s really important for us that the use of these products is really a benefit for consumers and for the globe, for both environmental purposes and community purposes,” he said. “We hope that’s going to be really a big part of our definition of our company.”

Galvin said that the DNA sequencing platform used by Boost really is a game-changer; it results in quicker, cheaper sequencing than traditional methods and, in addition, allows the company to focus on the key interactions going on in the microbiome.

“Typically biologists would approach things by identifying one microbe in the soil that prevents a pathogen from attacking a crop,” Galvin said. “Our platform is really unique in that it identifies all of those microbiomes that are there. It has the ability to identify which ones are positively interacting with each other, and which ones are negatively interacting with each other. We’re able to map that all together and see these interactions and design potential product concepts.”

Boost was launched with $1.5 million in seed capital from Nimble Ventures and Viking Global, and went on to raise $7.5 million through a Series A funding round that included a joint development agreement with lead investor Yara International and funding from Japanese investor Universal Materials Incubator. Galvin said Jamie Bacher, the company’s Co-Founder and CEO, is now looking to raise Series B funding.

In addition, Boost is working with the Western Growers Center for Innovation & Technology in Salinas to expand their contacts and create new partnerships for the company’s work in the agriculture space, including product concept development and field trials.

“We are particularly interested in in-field applications with berries, strawberries, grapes, lettuce,” Galvin said. “In post-harvest applications, we’re also interested in stone fruits or other fruits that are off the field and going through processing. We’re looking for distributors or growers or other players in the value chain who are interested in being some of our first partners as we bring our products to market. We think it will be a game changer for food.”

Tags: ,
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

WGCIT Sponsor: Duda Farm Fresh Foods – Collaboration Key to Technology Effort

September 23rd, 2021

By Tim Linden

For Sammy Duda, sponsoring the efforts of the Western Growers Center for Innovation & Technology is a simple equation that boils down to strength in numbers.

“How do you tackle these issues except with collaboration?” he asked.

He noted that the larger issues facing production agriculture—labor and water shortages and the need to automate—are huge issues that require lots of capital, talented people and trial and error strategies. “I’m spring boarding off of what (then-Western Growers Chairman) Bruce Taylor said: We need to tackle these issues in a collaborative way.”

The President of Duda Farm Fresh Foods in Salinas, Calif., said the typical strategy for produce industry companies is to go it alone, which allows each company to create its own advantage over competitors. But he said using cutting edge and experimental technology is an expensive proposition that requires a group approach. “We just don’t know what the solutions look like,” he said, also indicating that how expensive they are going to be is also an unknown.

Duda was among the leaders in joining WGCIT as a sponsor, with Sammy Duda articulating another compelling reason for the company’s participation. “I believe attracting top talent to our industry is another important reason to be involved. What’s going to attract very smart and sophisticated people to our industry? How do we attract the best and brightest?” he asked.

He said adding the technology piece helps in recruitment. “It makes us attractive to a broader audience.”

He noted that farming isn’t an easy life and spending a career in the field isn’t for everyone. Using technology in the industry, Duda said allows recruiters to approach STEM (Science, Technology, Engineering & Math) Program participants with a story to tell. While WGCIT is still in its early stages, Duda believes the center has helped attract a lot of very smart people who are putting their brainpower to use to try and solve the industry’s most vexing problem.

More than half a dozen years into the effort, Duda said the industry probably did have some unrealistic expectations of how quickly solutions would be found. But many innovative companies have advanced their ideas, and some have taken them to the commercial level. “We’ve engaged with several different companies over the years,” he said. “Some have worked; some didn’t pan out so well.”

But Duda sees it as a very worthwhile endeavor and WGCIT firms are discovering better ways to farm and compete in the ag space. “We are currently working with GeoVisual and using granular data they are generating to improve our harvesting and timing of the crops,” he said.

Duda said the collaborative approach also allows for many startups to engage with different grower-shippers with eventual solutions helping everyone. “We have a desire to engage with these companies, but there is a limit to what any one company can do. We have limited time and resources.”

He believes both sides of the equation—industry experts and technology experts—have evolved during these past years. Startups are more focused on specifically solving industry issues. And ag companies are honing in better on what they want. Duda, he said, is operating on a “what do we need to know” basis. “It’s a learning process. We need to find and align with the right people.”

The Duda President gives a lot of credit to the Western Growers and WGCIT staffs. He noted that both WGCIT Director Dennis Donohue and WG Vice President of Innovation Walt Duflock have put a tremendous amount of vision, effort and passion to make the center work and drive innovation.

And Duda said this is a critical effort. “California is a difficult place to do business. We have a lot of inherent advantages that exist no place else in the world, but we have to integrate innovation and technology into our world so we can continue to compete!”

 

 

Tags: , ,
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

Harvest Automation: In Search of New Capital

September 23rd, 2021

By Walt Duflock, Vice President, Innovation

Recent events in agtech and agtech acquisition activity have brought to light a new focus area for Western Growers: the need to increase capital sources for harvest automation.

Let’s take a deeper dive into three recent events:

1.  CNH Industrial’s acquisition of Raven Industries
In June 2021, CNH Industrial revealed that it would acquire Raven Industries in a $2.1 billion deal.

2.  John Deere’s acquisition of Bear Flag Robotics
In August 2021, Deere & Company signed a definitive agreement to acquire Bear Flag Robotics for $250 million.

3.  Abundant Robotics’ demise
In July 2021, Abundant Robotics (the tech startup that appeared to be leading the race to commercialize a robotic apple picker) officially shut down stating that it was unable to raise enough investment funding to continue development and launch a production system. The company raised a total of $12 million.

Together, these three events do not signal great news for a significant segment of agtech mechanization: harvest startups. These recent activities make it clear that the current acquisition activity in agtech mechanization is focused on the software side of the technology stack—and not on the hardware side.

This makes sense for multiple reasons:

1.  Hardware takes longer and requires more capital to build prototypes, run field trials and get to manufacturing at scale.

2.  Harvest solutions generally work on only one crop type, so the addressable markets are limited to the labor spent on harvest in those crops. These market sizes are always smaller than the comparable markets investors see in fields like mobile apps and e-commerce solutions. The extra time and money required are often two strikes against harvest automation startups before they even get to pitch a venture capitalist (VC).

3.  The increasing need for multiple business models—capital equipment purchase, as-a-service and subscription—make the sales process and fundraising requirements challenging. Planning for scenarios where 75 percent of your sales can either be equipment sales or as-a-service purchases increases the capital required to adequately support both options (or it requires startups to only offer one, which shrinks the addressable market again).

Combine all the above with the Abundant Robotics outcome and investors have an increasing number of reasons to shy away from further harvest automation investments, and likely toward software and digital plays.

Let’s get to the “so what” part—regardless of the ongoing challenges, the startups are still going to need the capital and they can’t be responsible for asking new capital sources to step in and fund their efforts while they ask growers to make significant operating changes. That is too heavy a lift for a startup, any startup.

Rather than startups leading, industry needs to lead and drive the change to help support all of the startups. I believe the next step is for the industry to lead the charge towards new capital sources, specifically: (1) banks like Rabobank and Wells Fargo and credit unions like Farm Credit Union that have been long-term partners of ag and agtech and benefit from thriving ag and agtech industries; and (2) strategic investors such as equipment dealers (including John Deere, Yamaha and Kubota) with a market opportunity for potential growth in ag and agtech. Western Growers, with our large member base of global specialty crop leaders and long-term relationships with those potential investors, is in a unique position to start these conversations.

What is it going to take to push these conversations forward? The biggest challenge with these new sources of capital is that they have a very different risk profile than VCs. They can’t live on a high percentage of strikeouts with a few home runs that leave the yard. This would break their entire business model.

We need to figure out how to de-risk the harvest automation investment space so that the investments make financial and strategic sense. The first step is starting these conversations to find out what kind of risks need to be reduced. The second step is working with growers to figure out how much of the risk they can help mitigate for harvest automation investments. The third step is to work with startups with the outcomes of the first two discussions so they understand what is required for the path to investment from the investors and the growers so that they can build the right sales cycle and roadmap.

Starting this month, Western Growers is going to take on this challenge and begin driving these conversations. A successful outcome will help open capital sources beyond venture capital that can take a more patient and strategic approach that benefits all parties. Startups will have more access to capital to help them build their product and business model and get to scale faster. This new capital can also be leveraged with funding from state and federal grant programs meant to drive innovation. This leverage can be used by both Western Growers and individual startups. I strongly believe that the private side of the economy needs to move first so we can increase the odds of the public funding options being willing followers and potentially matching funders.

Tags: , , ,
Posted in WG&S Magazine, September / October 2021 Issue | No Comments »

« Older Entries
Newer Entries »