Bureau of Reclamation Offers $2 Million in Ag Water Use Efficiency Funding

January 25th, 2022

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

The $2 million in funding for fiscal year 2022 will go towards grants or cooperative agreements to water or power delivery authority entities, including water and irrigation districts, to help modernize water infrastructure and maximize water use. NRCS will then announce a separate program to provide funding to farms within those districts for water conservation practices. Past eligible projects have included canal lining or piping, turnout metering and weir structures.

Details on this funding opportunity can be found at grants.gov under opportunity number R21AS00553. Proposals are due March 4, 2022, and must be submitted online. Contact Tom Hawes for more information at [email protected] or 916-978-5271 (TTY 800-877-8339).

New COVID Vaccine Requirements for H-2A Workers

January 21st, 2022

Beginning on January 22, 2022, the Department of Homeland Security (DHS) will require non-U.S. individuals seeking to enter the United States via land ports of entry and ferry terminals at the U.S.-Mexico and U.S.-Canada borders to be fully vaccinated for COVID-19 and provide related proof of vaccination, as COVID-19 cases continue to rise nationwide.

These new restrictions will apply to non-U.S. individuals who are traveling for both essential and non-essential reasons, including H-2A workers and daily commuters. They will not apply to U.S. citizens, Lawful Permanent Residents, or U.S. nationals.

Before crossing into the United States, H-2A visa holders should be prepared for the following:  

  • Possess proof of an approved COVID-19 vaccination as outlined on the CDC website.
  • During border inspection, verbally attest to their COVID-19 vaccination status.
  • Possess a valid passport and H-2A visa.

To be considered “fully vaccinated” for purposes of travel to the United States, vaccines accepted will include current FDA approved or authorized vaccines and World Health Organization (WHO) emergency use listed (EUL) vaccines. This means that some commonly available vaccines in Mexico (CanSino and Sputnik), will not be accepted.

Individuals are considered fully vaccinated:

  • 14 days after the first dose of an accepted single-dose COVID-19 vaccine;
  • 14 days after the second dose of an accepted 2-dose series;
  • 14 days after receiving 2 doses of any “mix-and-match” combination of accepted COVID-19 vaccines administered at least 17 days apart.

FAQs about COVID vaccine requirements can be found on the CDC website

CDFA Secretary Karen Ross: “We should be honored and valued and respected even more than Silicon Valley.”

January 5th, 2022

IRVINE, CALIF. (January  5, 2022) – In the most recent episode of Voices of the Valley, the podcast hosted by Dennis Donohue, the Director of Western Growers Center for Innovation & Technology, and Candace Wilson, CEO of GreenVenus, CDFA Secretary Karen Ross discusses the meaningful opportunities 2022 offers for the agriculture industry in the state.

First and foremost, she said, is not accepting the notion that legislators “just don’t understand” or that we inevitably have to ask the question: “What are those people thinking?” 

“We need to change the narrative,” she said. “We should be honored and valued and respected even more than Silicon Valley because people like to eat and drink.”

One of the ways to do that, she said, is to emphasize the technology-heavy careers that are available in ag. Ross previewed the Jan. 26, 2022 AgTechX Ed Summit at Imperial Valley College, where she will speak alongside industry leaders on the creation of a tech-savvy agriculture workforce. The event is the second in a yearlong series led by Ross and Western Growers to highlight the skills required to master emerging on-farm technology.

“The best part of my day is when I get to meet with students,” she said. “I get so excited about what they bring to the table – at younger ages they have a much more global perspective, they are so advanced. They inspire me and I want them to all fall in love with the opportunities agriculture can present to them.”

Voices of the Valley is produced by Western Growers and its Center for Innovation & Technology. The embed code for the episode is below:

<iframe src=”https://anchor.fm/voicesofthevalley/embed/episodes/Changing-the-Farm-Narrative-through-Innovation–Workforce-Development-e1ch8dh” height=”102px” width=”400px” frameborder=”0″ scrolling=”no”></iframe>

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

 

Western Growers Awarded $750,000 CDFA Grant to Develop Next-Gen Ag Workers Curriculum

January 11th, 2022

IRVINE, CALIF. (January 11, 2022) – Western Growers received a $750,000 grant from the California Department of Food and Agriculture’s 2021 Specialty Crop Block Grant Program (HR 133) to develop and implement a curriculum to provide California college students with best-in-class agtech training.

Besides the 2,750 students that will be assisted by the program, the grant will allow the specialized training of 330 Next Gen Ag Workforce professors within four years of launch. Curriculum development will begin immediately and be fully implemented by June 2025.

“Western Growers is excited to work with CDFA and California’s two-year and four-year colleges and universities to build strong cross-disciplinary programs to help the next generation of farmworkers,” said Walt Duflock, WG’s Vice President of Innovation. “This grant gives us a chance to create new programs statewide to develop the key skills students need to work in agtech innovation – from engineering to agronomy to biology to computer science. This collaboration between WG members, partners and California educators will ensure growers and agtech companies get access to the most highly-skilled graduates in the nation.”

A preview of the Next-Gen Ag Workers Curriculum will be given at three upcoming events that are part of Western Growers AgTechX Ed initiative, a statewide effort developed alongside CDFA Secretary Karen Ross. The next event will be held Jan. 26, 2022 at Imperial Valley College, and will feature panels on Industry Issues and Skill Identification; Education and Workforce Development Strategies; a roundtable with agriculture CEOs and a fireside chat with Ross.

Additional AgTechX Ed summits in 2022 will be held at Hartnell College and Woodlands College. The first week-long Next Gen Ag Worker Summit is being planned for the summer of 2022 at Santa Clara University. For more information, please visit AgtechWorkforce.com.

Funding for the Development of Next-Gen Ag Workers Curriculum and Scale Strategy was made possible by the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service through grant 21SCBPCA1110. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the USDA.

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

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Voices of the Valley: When NASA and Farming Collide

January 12th, 2022

IRVINE, CALIF. (January  12, 2022) – In the most recent episode of Voices of the Valley, the podcast hosted by Dennis Donohue, the Director of Western Growers Center for Innovation & Technology, and Candace Wilson, CEO of GreenVenus, Turlock Fruit Company General Manager Neill Callis talks about the intersection of space tech and agtech.

Prior to farming, Callis worked for 17 years as a project manager and systems engineer in the aerospace industry. As a result, one of the innovations he’s most excited about are optical recognition and sorting technologies.

“The ability for a software system to receive visual input and identify and characterize dozens and dozens of individual spears of asparagus per second and grade them…I’m excited because I think it’s essential,” he says. “It does dovetail with some of the work I did in my previous career. It’s always surprising when NASA and farming collide, but they have in more ways than you might imagine.”

Agtech is a key tool to help farmers face the headwinds of labor and regulation that batter the industry, Callis says, and automation ultimately offers a path to keep farms in the United States.

“We can’t count on the politics of immigration to help us,” he says. “Our country is so polarized and divided that you’re not going to peel off enough moderate Democrats and moderate Republicans to build a coalition in the center to get some kind of immigration reform. So how are we going to get someone to harvest the crops?”

Voices of the Valley is produced by Western Growers and its Center for Innovation & Technology. The embed code for the episode is below:

<iframe src=”https://anchor.fm/voicesofthevalley/embed/episodes/When-NASA-and-Farming-Collide-e1cqoam” height=”102px” width=”400px” frameborder=”0″ scrolling=”no”></iframe>

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

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Voices of the Valley: Inside the Brave New World of Pest Management

January 26th, 2022

IRVINE, CALIF. (January 26, 2022) – In the most recent episode of Voices of the Valley, the podcast hosted by Dennis Donohue, the Director of Western Growers Center for Innovation & Technology, and Candace Wilson, CEO of GreenVenus, entrepreneur Pam Marrone, founder of Marrone Bio Innovations, discusses why everyone wants to go into biologicals these days for pest management – and what companies need to do to succeed.

With more than 500 patents to her name, Marrone says that there is both a science and an art to developing a biopesticide.

“You can grow a microbe in different ways, with different recipes, like when you’re cooking, or when you’re fermenting wine or beer in a big vat,” she says. “What we do…is to characterize the microbes we’re making and make sure every batch we make has a specific level of those compounds.”

As the same time, innovating these “killer cocktails” for innovation’s sake doesn’t make sense unless it results in satisfied stakeholders, Marrone says.

“One of the things that’s really critical is always talking to our customers, talking to growers and talking to our channel partners, the distributors that then sell to the growers,” she says. “We’ve had to do a lot of pull through at the grower level, so doing demonstrations on the farm…that’s really the best way we’ve been able to create adoption.”

Voices of the Valley is produced by Western Growers and its Center for Innovation & Technology. The embed code for the episode is below:

<iframe src=”https://anchor.fm/voicesofthevalley/embed/episodes/Inside-the-Brave-New-World-of-Pest-Management-e1deh2a” height=”102px” width=”400px” frameborder=”0″ scrolling=”no”></iframe>

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

Organic Grower Summit Shines in Monterey

January 14th, 2022

By Tim Linden

The December Organic Grower Summit, which featured Western Growers as its presenting sponsor, showcased a plethora of WG members throughout the duration of the Monterey, Calif. event.

Longtime WG Board Member Vic Smith of JV Smith Companies received the Organic Grower of the Year award, WG President and CEO Dave Puglia and Vice President of Innovation Walt Duflock served as moderators of several dynamic educational sessions and many WG members participated on panels and attended the two-day meeting. In addition, members of the WG community, including residents of the Western Growers Center for Innovation & Technology, exhibited at the corresponding trade show.

Smith was recognized for his lengthy agricultural career, which has included much innovation in all aspects of farming. He began growing crops for the organic market 25 years ago when the contract grower was asked by Earthbound farms to plant organic spring mix. Western Growers honored Smith’s award during the conference with a VIP reception attended by many of the association’s board members.

Smith received his award during the closing keynote presentation that featured Puglia and California shippers Keith Barnard of Mission Produce, Bianca Kaprielian of Fruit World and Mike Valpredo of Country Sweet Produce. The session, which included WG’s Puglia as moderator, was billed as “A Conversation with the Next Generation of Organic Leaders” and did not disappoint. This trio of farmers, each of whom came from longtime farming families, exhibited their passion for agriculture and their commitment to taking their operations to the next level.

Puglia and his panel discussed the challenges of being agriculturalists in California as well as the opportunities in the organic sector. While they agreed that California is a difficult place to conduct business, they also expressed optimism that the future remains bright for California agriculture. Kaprielian noted that specialty varieties are finding favor among a new generation of consumers. The Valpredo operation is focusing on value-added products as well as organic production to stay relevant. Barnard noted that Mission Produce has greatly diversified its production footprint, now operating in nine countries, as a way to mitigate some of the challenges in California.

Speaking of the consumer, Kaprielian sees an evolving shopper that is looking for more transparency, more sustainability, and more accountability in their produce offerings. She added that she doesn’t see the sustainable movement replacing organics. “It’s not an either/or,” she said. “It’s an ‘and’. The consumer wants more.”

Barnard also predicted that increased sustainability efforts, and accounting for them, will increase moving forward. He called organics a “lifestyle” choice, but said consumers see sustainability as a “responsibility” and want companies “to do the right thing.”

Valpredo would like to see universal sustainability standards adopted by which a company can measure itself. He said USDA certified organic standard greatly increased the sales and production of organic produce, and he sees a sustainability standard having the same positive effect.

In discussing how each company tells its story to consumers, Puglia revealed that Western Growers also uses a transparent approach of unscripted videos of member operations that it posts on social media to help tell the story of Western agriculture. He said the postings have received many hits from urban America, indicating the goal of educating city folks about ag is achieving success.

Puglia noted the paradox of supermarkets wanting packaging of organics to make sure they get the proper ring at retail and the preference of organic consumers to have less plastic and packaging. Kaprielian said inroads are being made with sustainable packaging indicating that being able to serve both the retailer and environmentally conscious consumers is not too far down the road.

The panelists took great pride in what they do and the products they produce. Echoing a sentiment expressed by each, Valpredo called production agriculture “a fantastic world to be in.”

In the “Ag Tech in the Field” workshop session, Sébastien Boyer of FarmWise and Gabe Sibley of Verdant Robotics both touted advancements in automation that are helping farmers address the labor issues everyone faces.

Duflock moderated two sessions. One was modeled after the AgSharks® competition that was held during the Western Growers 2021 Annual Meeting in November in Del Mar. Though there was no actual competition, Duflock invited five members of WGCIT to give brief pitches to the audience to give it a snapshot of the innovation WG is championing in its Salinas Valley center.

In the other session, Duflock discussed regenerative ag and the sustainability labeling with Seana Day of Culterra Capital and Vonnie Estes of what is now called the International Fresh Produce Association (formerly PMA & United Fresh). The two panelists discussed many issues including the progress of work being done to create carbon credit for the use of agricultural land. While they see promise in that arena, they both said that it is not on the near horizon. One of the problems appears to be that those trying to figure out how to measure carbon sequestration in the soil are focused on monetizing the effort rather than actually helping farmers. Day admitted this but said the technology being developed and the power of the conversation around the concept is beneficial. “Don’t let perfection be the enemy of progress,” he said.

The duo had a similar 40,000-foot view of vertical farming, and the investment dollars and buzz being generated by controlled environment agriculture. Estes opined that the current companies making a splash in this space may not survive the shakeout that is sure to come as that production practice tries to become economically viable, but the ag technology being developed is here to stay and will help the industry in the long run.

Another fascinating educational session had four well-known grower-shippers discussing their transition to organic production and how they were able to scale successfully. Moderator Rod Braga of Braga Farms led Jessica Hunter of Del Rey Avocados, Scott Mabs of Homegrown Organic Farms and Dick Peixoto of Lakeside Organic Gardens in a discussion of the opportunities and challenges in the organic sector. While they all expressed a passion for utilizing organic farming methods, each of these California producers was also clearly driven by the marketing opportunities organics offered.

Hunter initiated Del Rey’s foray into organic production with a 10-acre grove in north San Diego County. She learned how to coax yields from that grove equivalent to what it could produce conventionally and loves teaching these techniques to many other growers in the area. She said growing organic avocados makes great sense if you can achieve equal production because the market price is typically significant higher.

Homegrown and Lakeside operate exclusively in the organic sector and have forged successful models over the past 25 years. The leaders of both those companies, as well as Braga, see a bright future for organic fruits and vegetables.

Still another session explored the opportunities for both growing and marketing organic vegetables in Mexico. Joshua Tamayo detailed Taylor Farms’ facility south of the border, which processes both conventional and organic fresh-cut products grown in the United States and Mexico for sale to retailers in both countries. He noted that organic certification is more difficult in Mexico and so are the consumer labeling requirements.

Ed Morales, who is the director of food safety for JV Smith Companies/Agricola El Toro, discussed organic production south of the border and has had a similar experience. It is not an easy proposition.

While most of the sessions were necessarily focused on the production end of the business to satisfy the many growers in attendance, there was one session that detailed how well organic produce continues to do in the marketplace. Tom Barnes of Category Partners, a company that analyzes retail scan data, said organic produce sales have climbed more than 20 percent when comparing sales in 2021 to 2019. He revealed that data analysts believe it is more accurate to use two years of data when identifying trends because 2020 was an unusual, COVID-dominated year. The data clearly points to a growing and profitable segment of the ag industry.

*pictured above: Keynote presentation Next-Gen A Conversation with the Next Generation of Organic Leaders

COP26 Diary: When will the conference acknowledge the positive role of essential farmers, ranchers, foresters and fishermen?

January 14th, 2022

In December 2009, I attended COP15 in Copenhagen, representing California agriculture on behalf of Gov. Arnold Schwarzenegger and a delegation of other cabinet members. During that meeting, it became painfully clear that the discussion around climate change was moving rapidly forward but without any inclusion or realization that agriculture was going to be one of the central areas of impact in a world with significant shifts in weather patterns.

At COP26 this year, it was alarming to see that not much has changed. The opening statements by U.K. Prime Minister Boris Johnson, UN Secretary General Antonio Gutteres, Prince Charles and Richard Attenborough listed what must be dealt with in order to reduce emissions and curb the rise of global temperatures. Missing, again, was any sense of comprehension for how the global agricultural food systems are performing or how we will deliver food, feed and fiber to a demanding world under climate-related mitigation regimes.

Agriculture’s collaborative role in building resilience across the planet must go hand-in-hand with the strategies to adapt to climate change. The future of mankind starts with an abundant supply of food, water and energy. Leaders, activists and the public cannot forget this part of the equation.

This missing voice of on-the-farm experience has driven our Solutions From the Land team to show up over the past six sessions of COP and advocate for inclusion into these climate deliberations. It is our SfL contention that today’s agriculture is providing many of the clearly-needed solutions to mitigate climate change: carbon sequestration, habitat protection, resource utilization, renewable fuels, nutrient-dense foods and job creation.

With each new COP, we continue to work hard to introduce and promote this sustainable vision for agriculture. Along with a handful of agricultural organizations, UN Food and Agriculture Officials and other aligned non-governmental organizations, the farmers, ranchers, fishermen and foresters of the world are beginning to raise their concerns and voices as they realize that non-farmers, non-ranchers, non-fishermen and non-foresters are planning and plotting our future—or our demise.

Solutions From the Land has released its 21st Century Agriculture Renaissance report which helps align the vision of a better world framed by the UN’s Sustainable Development Goals with the solutions to be found through agriculture. We have observed that the SDGs will not be accomplished if agriculture is doing poorly in the decades ahead.  Quite the opposite—agriculture needs to be thriving.

The negative focus on agriculture as the ‘problem’ instead of agriculture as the ‘solution’ complicates the platform for mitigation, adaptation, transformation and resilience. For example, the pronouncements for methane emission reduction regularly allude to animal agriculture and specifically to the dairy industry at a time when that industry has been making great progress on modifying feed, manure management for energy creation and other soil amendments for fertility enhancements.

Part of the challenge for agriculture is the lack of understanding of just how dynamic the 21st century toolbox has become. As many new technologies mature, the options and opportunities for transformation accelerate. That’s why the voice of agriculture needs to be heard so that those making the plans for climate action are not relying on outdated perceptions of what is actually happening on the farm and in the laboratories. New science and new thinking is delivering a cascade of improved solutions. In many ways each COP is a “show and tell” opportunity for industries and civil society to demonstrate the latest and best strategies and technologies.

One area of concern that has garnered significant attention is the alarming level of unsustainable deforestation over recent decades (and centuries). The promising commitments of nations to stop the decline is a good step forward, while efforts to reverse the decline with afforestation and reforestation strategies creates many new opportunities for employment, traditional and novel wood products, renewable energy generation and proactive wildfire reduction.

As one expert mentioned, there needs to be a reward for forest stewards, not just a pat on the back. In Papua New Guinea, a tiny nation with tremendous biodiversity —7 percent of the world’s species of plants and animals—there are plans underway to conserve and upgrade over a million acres of forest. In the United States, ranchers and farmers are looking to initiate similar large landscape projects in Florida and in the headwaters of the Colorado River.

These models begin by convening all the stakeholders across a region in order to build consensus around “win-win” strategies and proposals. In the case of the Colorado River, the stakeholders represent an enormous spread of interests, politics, policies and promises. But the threat of inaction due to analysis-paralysis speaks to the complicated nature of reaching multi-benefit solutions. There is never a one-size-fits-all answer, but there are good processes that can deliver benefits to all. As more and more projects are put in place, the ‘proof of concept’ successes lead to scalability, replication, inspiration and hope.

Riding the train from Edinburgh to Glasgow each morning to attend COP allowed for a sweeping glimpse of this historically rich nation and its pastoral landscape. Autumn colors have faded and leaves are falling. Pastures are green with sheep and cattle dotting the passing hills. A Christmas tree farm, a vegetable patch under frost-protective netting, new plantings of winter wheat and a few golf courses all need tending. Morning temperatures are in the 30s and there are no signs of drought or flooding here.

We were fortunate to join an informal, bilateral meeting with Secretary of Agriculture Tom Vilsack and a group of Scottish farmers and UK agricultural leaders to discuss how they are dealing with changing climate patterns and with the proposed COP mandates and schemes developing each day—in many cases behind closed doors without the presence of land stewards and producers. Not surprisingly, the agricultural leaders in the room had many of the same concerns and complaints. These farmer leaders were able to give us a sense of the perennial challenges and unprecedented pressure farmers and ranchers, big and small, endure.

And yet there was a sense of optimism that if we can continue to share our vision for 21st Century agriculture and the accelerating pace of solutions and new thinking, we can begin to develop the kind of momentum that leads to transformative progress and success across a broader wishlist of human needs and goals. We were all appreciative of the scope of leadership and understanding that Secretary Vilsack brings to the conference.

It’s time to acknowledge the positive role of agriculture. The capacity to pivot during the pandemic and the unprecedented resulting food chain disruption realigned much of the dynamic structures of farming, ranching, fisheries and the processing/distribution infrastructure in place to feed the planet. The essential services needed to provide food to an always hungry world are perhaps more appreciated today than at any time over the last half century.

Public officials and politicians increasingly have lost the institutional knowledge about agriculture’s pressures and needs, and are becoming less able to understand the industry that they regulate. Regulatory good intentions for animal welfare, environmental priorities and trade restraints are causing havoc and unpredictability that are as damaging as erratic weather. Increased costs of production without increasing market prices are putting the squeeze on many growers, forcing consolidation or downsizing.

When was the last time our world was not in crisis? Statistically speaking, the world has never had fewer wars, more predictable abundance of food, more people out of poverty and suffering from scarcity and hunger as a percentage of total population, more people with access to knowledge. And yet we can witness, predict and pinpoint areas of famine, squalor, drought, catastrophic flooding, locust plagues.

At conferences like COP26 we can describe a world in crisis or a world of opportunity and progress. No one is saying that we can’t improve. Everyone is saying that we must collectively move towards adaptation and resilience to address the multiple challenges facing humanity.  These are not necessarily new battles, but for the most part, old and painfully recurring lessons that we never seem to fully solve.

One difference is that we are armed with a dynamic, growing box of tools, technologies and innovative solutions to some of these biggest problems. When people speak about a glass half full or half empty, they fail to ask about how much can be poured from the pitcher.

In 1978, when I started farming, it was an exciting time for fruit and vegetable growers as we were just starting to shift our irrigation systems from furrow to sprinklers to drip tape. In 1938 when my just-retired farmer neighbor started farming (as a 13-year-old), he was driving a team of horses to plow his fields. He can still tell you the names of his three horses: Dolly, Baldy and Clod. He told me that the neighboring Japanese vegetable growers liked to borrow Dolly because she was a smaller horse and had smaller hooves and didn’t step on the plants when they cultivated. Precision agriculture has been around for a long time—it just looks different today. How we farm, what and where we might farm has changed tremendously.

What has not changed is the overlooked fact that most of the people of the world do expect to eat every day, and the dwindling number of actual producers of food as a percentage of population have to increase their productivity to meet the needs of a growing global population. What should be an easy equation is lost on the minds of the billions of human beings who have nothing to do with how their food, fiber and fuel supply is produced, but expect to consume that productivity without interruption.

So when the almost always well-intentioned, non-productive activists say that “agriculture” uses 80 percent of the world’s developed water supply, or emits 10 percent of greenhouse gasses, one has to wonder what planet do they live on because they are the majority users of the water and these critical resources that sustain their lives every day. As I fly over England from Scotland and look down on the patchwork quilt looking green landscape, it’s easy to imagine a time long ago when there was nothing but forest with no signs of the presence of an unusual animal that somehow figured out how to reap a more predictable food supply from the land and increase his numbers.

So much of the world’s food supply comes from temperate regions, and the thought of moving agricultural areas to accommodate shifting climate zones is a logistical nightmare. The experts—farmers, ranchers and foresters—who will actually get the job done must organize themselves to anticipate how they will adapt to pronouncements of catastrophic climate change. The non-productive folk—those with the suits and ties—will do well to listen, assist and support the producers who are struggling to operate against the man-made and natural odds.

Why should agriculture be a focal point for COP26 and all future COP events?  Because whether or not weather shifts, the challenge to feed an estimated global population of 9 billion souls is no small task. The essential endeavor to live within our means on this planet is predicated on the collaborative innovation that comes from understanding what’s in the pitcher and honestly assessing just how full or empty that cup might be. I believe that here in the early part of the 21st century, the pour is much more robust than the fear peddlers want us to know. Cheers!

A.G. Kawamura is Owner/Partner of Orange County Produce LLC in Irvine, Calif., and Co-Chair of Solutions From the Land, a non-profit organization that strives to implement climate-smart land management practices and strategies. He is the former Secretary of the California Department of Food and Agriculture, and a member of the Western Growers Board of Directors.

Agtech Startup Spotlight: 3Bar Biologics Focused on Delivering Biologicals to the Field

January 14th, 2022

By Tim Linden

A key problem with biologicals is that by the time they move through the supply chain they have often lost much of their effectiveness.

At least that is the view of Bruce Caldwell, CEO and Founder of 3Bar Biologics, a company that was designed to solve that problem and, in fact, won the AgSharks® Competition at the November 2021 Annual Meeting of Western Growers. The company is currently in negotiations with AgSharks sponsor S2G Ventures on its $250,000 investment offer that it made to Caldwell following his AgSharks win.

In an interview with WG&S, Caldwell reiterated that the biggest issue with biologicals is that they often are not able to duplicate lab results in real life settings. “The consistency of in-field performance is the biggest issue,” he said.

Like perishable produce, living microbials can deteriorate if they are not handled properly through all segments of the supply chain. Caldwell said the distribution system for crop inputs has largely been designed for the synthetic chemicals that dominate  the market, not the biologicals that often are offering more environmentally friendly solutions.

Caldwell has had a long career in the Food and Ag industry, including 30 years leading product innovation teams at Procter & Gamble and ScottsMiracle-Gro. While at Scotts, he saw many biologicals developed but never quite deliver their promise in the field. “We had virtually no success getting live microbials through the supply chain,” he said. “There were some exciting discoveries but a huge gap in getting them to market.”

In studying the problem, Caldwell became convinced that it was in the timing of the activation of the microbial and the subsequent delay in delivery that caused the issue. “Like any other living product, it has to be handled properly to keep its freshness.”

He compared biologicals to kombucha, the popular drink that contains live bacteria and must maintain a cold chain throughout the delivery process to enjoy an extended shelf life.

Getting deep into the specifics, he said microbes that do not form protective spores have the most difficult time reaching the end user in a fresh, effective state. Yet research studies are finding that these non-spore forming microbes are frequently the most beneficial for plants. 3Bar has developed what it calls LiveMicrobe Technology to deliver lab-like quality to the farmer’s field.

“Paired with your microbe, our LiveMicrobe Technology delivers viable microbes to farmers’ fields. LiveMicrobe solves the persistent problem of lost viability by activating the true power of microbes through a first–in-class microbe production and delivery system,” according to the company’s website.

3Bar Biologics’ innovative approach has created a system that allows fermentation to occur directly within the packaging, generating the most viable microbes possible. The grower can activate the fermentation process at point of use, or it can be activated as a final step in the supply chain before delivery, so it arrives ready to use at the customer.

Caldwell revealed that using this approach, the products, such as bio-pesticides and bio-stimulants, are much more concentrated and they grow exponentially when activated. He said the cost is relatively cheap because the rate of application can be so low. For example, one such product that the company has trialed is applied at the rate of 10 liters per 120 acres of field corn. That’s literally only drops in a given acre.

3Bar is located in Ohio and so the company has had more experience trialing products for field crops, but Caldwell said its future lies in the specialty crop business as well, largely because they are high-value crops that are a better fit for biologicals. The company’s business model, with its proprietary packaging system, is to be the manufacturer of these various biologicals. Caldwell emphasized the company is not in the business of discovery but rather is a manufacturer.

He is passionate about the innovation 3Bar is bringing to market and believes it is a game changer for the industry. “It opens the door to a broader range of biologicals that can offer a broader range of benefits.”

He noted that many potentially very beneficial biologicals do not make it through the vetting process because delivering in the field is difficult to accomplish. He added that the biological industry has long recognized this problem causing many innovators to shy away from using non-spore forming microbes.

He is convinced that as 3Bar’s technology is employed, the specialty crop industry will start seeing a lot more biologicals that offer an excellent return on investment.

“We (3Bar Biologics) are at an inflexion point. With new investment, we are focusing on growing our product development and manufacturing capabilities exponentially. We are currently identifying partners to work with to bring new products to market.”

*pictured above: Bruce Caldwell pitching at the 2021 AgSharks Competition 

Innovation Foreword: Silicon Valley Did Not Kill Agtech—and It’s All Agtech’s Fault

January 14th, 2022

By Walt Duflock, Vice President of Innovation

One of the ongoing questions in agtech is why agtech startups so often struggle to raise venture capital. Through multiple blog posts, podcasts and social media posts, Sarah Nolet, Matthew Pryor and I have produced content that provides two different answers for these struggles.

Two of the most significant and common challenges are as follows:

  1. The long R&D cycles make exits inside most fund’s 10-year fund window difficult, so many funds favor segments like mobile apps that have a much easier fit into their timeframes.
     
  2. The capital-intensive nature of many agtech segments (including most agtech robots) makes it hard for agtech startups to get to scale for anything less than $25-$50 million in many segments. In most startup segments, getting $25 million or more from venture investors means the basic product is built and tested and the funds will go to scaling the business by ramping up sales and marketing. In agtech, this process can take significantly longer, which makes fundraising more competitive for agtech startups.

Sarah and Matthew argue that Silicon Valley financial models need to change because agtech startups often do not work well with those valuation models, and valuation is one of the key investor metrics they evaluate when deciding which startups to invest in. In short, they blame Silicon Valley models for not working well with agtech startups and believe those models need to change. While I agree with their premise, I come to the completely opposite conclusion. I believe the fault lies with agtech startups for one simple reason—supply and demand. The investor financial models have resulted in tremendous financial results in many segments that have emerged over the last 25 years—think eBay and Amazon in e-commerce, Google in search, Facebook and LinkedIn in social networking, and PayPal and Stripe in fintech/payments. In fact, CB Insights reports that there are currently 943 companies valued at $1 billion or more, worth a cumulative valuation of $3.05 trillion. So, the financial models Silicon Valley uses are delivering good returns for the funds and their limited partners (the organizations that give them the money to invest).

In addition, venture investments are made after looking at hundreds of startups and investing in only a few, largely based on the team and estimated market size. Silicon Valley venture funds already get way too many startups looking for investments who walk into the pitch meeting knowing the expectation and valuation models for the investor they are pitching. The models are working as designed and there is too much demand for limited funds. Given that, why should we ever expect Silicon Valley to change their financial models? The far more likely path is that agtech figures out how to build their businesses and business models to fit Silicon Valley’s requirements more effectively. Agtech founders need to build startups that can compete with startups in other segments who are also fundraising. Silicon Valley isn’t aggressively trying to under-invest in agtech. They are merely using the valuation models that work for every other segment. There is no need to change the model from the venture investor side of the table. It’s the job of the startup founders and CEOs to build and tell a better narrative.

Western Growers Innovation is aware of this challenge, and we are doing a few things to help WG Center for Innovation and Technology startups fundraise effectively:

  1. Educate startups on the Silicon Valley customer acquisition cost/lifetime value model—what does it cost to acquire a customer and what is the customer worth? This is a big part of the Silicon Valley model startups need to know when pitching.
     
  2. Help startups build fundraising pitch narratives that fit Silicon Valley models. To date, clearly controlled environment agriculture (CEA | indoor farming—with $2.8 billion in investment the past three years) and alternative proteins (Beyond Meat | Impossible Burger) have figured out how to build narratives that work for Silicon Valley venture investors.
     
  3. Help agtech startups with the longest development cycles, like harvest startups, understand the full range of non-venture capital investors, such as crowdfunding and SBIR (Small Business Innovation Research) grants, and how to target ag-friendly investor segments like ESG (environmental, social, and governance) investing, where the sustainability of agriculture favors agtech relative to other segments.

So back to the headline—agtech needs to work better with Silicon Valley models, not expect Silicon Valley to change their models. The WG Innovation team knows this and will work with member startups to help them understand the models, build their pitch narratives to fit the models, and make them aware of non-venture funding sources and when those might be a better fit for agtech startups.

WGIS Column: Things Change. Make Sure You are Protected.

January 14th, 2022

By Jeff Gullickson, President of Western Growers Insurance Services

Conversing with several members of Western Growers about their business operations, there is a common understanding that long-term personal relationships with current brokers are difficult to break. We agreed there is no expectation to leave such a relationship based simply on a Western Growers affiliation.

However, time changes all. Whether that be within business structure, team compilation or the current broker relationship. Outgrowing the capability of a broker in the insurance industry is a commonly ignored occurrence, which typically arises from client growth over time.

Changes in a business are a matter of when, not if. Before that change happens, we want a seat at the table to demonstrate our capabilities, so that when the inevitable happens you have a partner that has a proven track record of seamless transfers. Our success supporting members through these changes gives us the confidence and wherewithal to step in when you are ready.

“What will you do that’s different than my agent?” This is the perfect question from an inquisitive CFO or general counsel, and one we often get from members.

Our answer is simple!

The affiliation with Western Growers has allowed us to “connect the dots” with resources that no other brokerage can offer. Several of these resources include Walt Duflock in Technology, De Ann Davis in Science, Karen Timmins in HR, Jason Resnick in Legal and David Zanze in Pinnacle Claims Management. In other words, we do not sell insurance; we offer an incomparable team that truly understands agriculture and food.

Through our team’s expertise, and focus on agriculture, WGIS is in a unique position to create solutions specifically tailored to the agriculture industry that are not available anywhere else.

Proprietary Solutions:

Connected Worker Program

  • Created to keep your workers working by ensuring their safety through wearable tech
  • Helps broaden the reach of your safety and supervisory teams, creating actionable data
  • Decreases your workers’ compensation premiums (i.e., save the company money)

Employee Benefits Transparency

  • Data—based on input from your peer members, we now share the claims data from Western Growers Assurance Trust
  • Transparency—WGIS guides your team in how to properly analyze your claims reports and evaluate your claims, pharmacy and health management utilization
  • Decrease Premiums—WGIS works with your team to use data to address the cost drivers in your program and reduce the cost of claims

FoodGuardian Program

  • A food safety and supply chain risk management program created to protect your business
  • Offers tailored, vetted, best-in-class, grower/packer/shipper specific risk mitigation solutions
  • WGIS utilizes the following three-prong solution to improve processes:
    1. reduce recall durations;
    2. offer proven reduction in premiums; and
    3. ensure that quality, safe products are delivered.

Management Liability

This is also known as corporate risk management, and when done correctly, achieves the following:

  • Provides a Suite of Coverages—Employment Practices Liability, Cyber Risk, and Directors and Officers Liabilities
  • Delivers Transparency—WGIS creates, delivers and ensures market-leading transparency by making sure you understand our solutions, where you have financial risks and how to best mitigate

Oftentimes, coverages are neither mandatory nor expensive, but they are highly misunderstood. Transparency is the foundation of WGIS, and our team will walk you through each coverage option and help you understand where you have holes. Financial risk in these areas is too high not to understand.

As I mentioned at the beginning of this article, change is constant. WGIS is dedicated to helping you stay ahead of the change by offering you programs designed to protect your workforce while de-risking your operation and decreasing your premiums.

To learn more about our programs and navigate potential financial risk, please feel free to reach out to me directly at [email protected].

WGAT: Lowering Drug Costs with a Pharmacy Benefit Management Partner

January 14th, 2022

By David Zanze, Executive Vice President of Western Growers Assurance Trust

When Western Growers Assurance Trust (WGAT) was launched in 1957, our mission was to give Western Growers members an affordable option for health care benefits by offering highly customizable benefit plans to meet their diverse needs. WGAT, together with PinnacleRx Solutions (PRxS), continues to find additional ways to help employers save money on their health care costs each year.

According to a report by the American Society of Health-System Pharmacists, overall pharmaceutical expenditures in the U.S. grew 4.9 percent in 2020 year-over-year, for a total of $535.3 billion. Plan members use pharmacy benefits more than any other benefit, so choosing the right PBM is more critical than ever. PRxS is a full-service pharmacy benefit manager (PBM) that helps lower a company’s pharmacy costs while improving the quality of benefits available to employees.

PBM Benefits

PBMs coordinate with manufacturers, wholesalers, pharmacies and the health plan to make sure drugs are administered correctly and members aren’t overpaying. PBMs also help educate members about their pharmacy benefits and improve health outcomes. Additional benefits include:

Monitoring, Reporting and Transparency. Monitoring drug usage is critical to containing costs. PRxS believes in full transparency, and our financial reporting shows details of costs, discounts and rebates.

Formulary Management. Every PBM will recommend a different formulary, and your PBM should actively manage your formulary. PRxS has a broad formulary, which enables members to keep their current prescriptions during the transition from their previous PBM, so there’s no disruption. Unlike most PBMs, PRxS can also create a custom formulary to meet a client’s needs and maximize savings. As a pass-through model, PRxS doesn’t earn revenue on the drugs in the formulary, which allows us to recommend drugs at a lower cost.

Identifying Wasteful Spending. A PBM can also work with you to understand frequently used medications and drug classes to help identify wasteful spending. For example, combination products are those that combine two existing medications, resulting in a drug with significantly higher costs and little advantage. In some cases, combination products can drive up costs an estimated 800 percent over individual drugs.

The PRxS Advantage

PRxS takes a consultative approach to fulfill member pharmacy benefit needs, maximize cost savings and improve patient outcomes. Our on-site licensed clinical pharmacists conduct full reviews and have close relationships with members, doctors and pharmacies. Here are a few ways PRxS has provided value to its clients:

  • In 2018, PRxS implemented a prescription drug cost control program to ensure clients and members were optimizing cost-savings opportunities through drug utilization review, step therapy, determining medical appropriateness and engaging in clinical interventions. The program has since saved WGAT more than $3.3 million.
     
  • Our co-pay subsidy program assists the most vulnerable members with co-payments and co-insurance for high-cost drugs. We work with drug manufacturers to capture available manufacturer subsidies and pass them along to our members. The program has enabled our WGAT members to save more than $1 million year-to-date.
     
  • We design our formularies to ensure generic products are dispensed whenever available, if suitable for treatment, which decreases the cost of prescriptions.
     
  • We’ve improved medication adherence rates significantly by working with members and providers to decrease barriers to fill prescriptions. Our medication adherence rate went from 70 percent in 2016 to 86 percent in 2021, resulting in a 3.4 percent total savings across all pharmacy claims, or $884,668.
     
  • Our Enhanced Diabetes Program has enabled us to work closely with our Pinnacle Health Management team to improve the quality of life for our members and reduce the costs of medical care. The program has shown a 4.5 percent savings on diabetes-related medical claims and a 28 percent savings on diabetes-associated pharmacy claims.

If you don’t have a WGAT plan, contact Western Growers Insurance Services for more information and see how we can help you better manage your health care costs at (800) 333-4942.

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

Ag & the Law: Shakedown Lawsuits It’s Not A Matter of If Your Company Will Be Sued

January 14th, 2022

By Jason Resnick, Senior Vice President and General Counsel

The Private Attorneys General Act of 2003 (PAGA) was enacted into law to address the California Labor and Workforce Development Agency’s (LWDA) inability to keep pace with its obligations to enforce the California Labor Code because of budget cuts, inadequate staffing and a rapidly expanding workforce. Traditionally contained solely within the purview of the Attorney General and Labor Commissioner, PAGA outsourced Labor Code enforcement and deputized private plaintiffs to sue their employers for alleged labor law violations. Since then, PAGA, aka the “Bounty Hunter Law,” has become a favored mechanism by plaintiffs’ attorneys to file several thousand shakedown lawsuits a year against businesses large and small.

PAGA authorizes current and former employees to sue their employers on behalf of the state for Labor Code violations allegedly committed against the employee and other aggrieved coworkers. They can then recover civil penalties created by PAGA—including penalties not otherwise obtainable directly through a private right of action. PAGA allows employees to seek a penalty—$200 per pay period per violation—for each Labor Code violation that occurred, not just for Labor Code violations that carry a specified penalty under state law. Moreover, the law creates additional penalties for labor law violations where no penalty currently is provided in state law—$100 per pay period for the first violation and $200 for additional violations.

Under PAGA, 75 percent of any penalties recovered is paid to the Labor and Workforce Development Agency, with the plaintiff retaining 25 percent. Prevailing employees are also entitled to attorneys’ fees and costs, which make these claims particularly lucrative for plaintiffs’ attorneys. Practitioners seek and obtain multimillion-dollar settlements, frequently for purely technical violations predicated on PAGA exposure. If it seems as if the deck is stacked against good, law-abiding employers, that’s because it is.

State courts interpreting PAGA have consistently stymied the business community’s efforts to defend against a statute that was seemingly designed to include a cheat code favoring plaintiffs. For example, unlike non-PAGA claims, the California Supreme Court has ruled that arbitration provisions requiring waiver of an employee’s right to bring a PAGA representative action are invalid. Arbitration provides a much faster, and typically more cost effective, forum in which to resolve disputes. But PAGA claims have been deemed by the courts to be exempted from agreements to arbitrate employee claims, and PAGA actions waivers are deemed by the courts to be void.

In other unfavorable rulings, courts have held that PAGA plaintiffs are not required to meet the class certification requirements to peruse a representative claim on behalf of other aggrieved employees; and penalties available under PAGA can be stacked with equally steep statutory penalties under the Labor Code; among others.

PAGA complaints coming to workplace near you

Under PAGA, because penalties can be stacked, even minor violations can give rise to million-dollar settlements. Most employers are forced to settle PAGA allegations well before trial rather than face the uncertainty and uncapped costs of litigation. The agricultural industry has not escaped the notice of enterprising plaintiffs’ attorneys seeking fertile hunting grounds. According to LWDA data covering the Agriculture, Forestry, Fishing and Hunting Industry Sector, analyzed by former California Department of Industrial Relations Director, Christine Baker and former Cal/OSHA Chief, Len Welsh (Baker & Welsh), out of 58 recent settlements, the average settlement amount was more than $775,000. The largest settlement ($6 million) was paid by a major farm labor contractor. Eleven other ag businesses paid $1 million dollars or more. Some employers are sued more than once. Many more agricultural businesses are currently defending PAGA claims that have not yet settled, and countless others are waiting to be sued for the first time.

Since 2004, the number of PAGA lawsuits that have been filed against the state’s employers has exploded. The state now receives about 5,000 PAGA notices annually according to the Legislative Analyst’s Office—a staggering 1,440 percent increase over the first year PAGA was in effect. According to a study authored by Baker & Welsh for the CABIA Foundation, on average employers pay $1.1 million per PAGA case, compared to $790,000 for cases decided by the LWDA. But it’s the plaintiffs’ attorneys who are the real winners—yielding settlements and fee awards of more than $372,000 per case on average. Aggrieved employees don’t fare nearly as well—recouping an average $1,300 per PAGA case. That’s approximately 4.5 times less than they make in a LWDA-decided case, where attorneys’ fees are not awarded. When cases are decided by the LWDA, successful employees get paid more money, faster. And businesses win because they can resolve disputes faster and don’t have to shell out for attorneys’ fees.

PAGA relief in sight?

Businesses defending PAGA actions have bemoaned the fundamental unfairness of the statue and the case law interpreting it for years. While some courts have been sympathetic to the pleas of employer-defendants, they say that any issues with PAGA must be addressed by the legislature, not the courts. And while countless bills have been introduced to reform PAGA in the California Legislature, these bills are routinely blocked by labor and the plaintiffs’ bar.

Consequently, California employers will have to continue fighting shakedown PAGA lawsuits unless and until the law is changed by the California voters. Fortunately, relief may come if the general business and ag communities get serious about fighting it.

In October 2021, a coalition including the California Chamber of Commerce, California New Car Dealers Association and Western Growers filed a proposed initiative measure entitled The Fair Pay and Employer Accountability Act of 2022. If approved by California voters, the proposed initiative would repeal PAGA by taking away the ability to pursue civil penalties via a representative action and replace it with a new streamlined administrative system. Moreover, the measure would create a consultation unit requiring the Labor Commissioner to provide pre-enforcement advice, allowing employers to cure alleged violations without penalties. The program would be funded by LWDA funds from PAGA settlements and existing funding though the workers’ compensation system.

To qualify for the ballot, the initiative petition must receive more than 600,000 signatures from registered voters. Substantial financial support from industry will be required to qualify the initiative petition for the ballot and to run an effective campaign required to win on election day. But it will be a small price to pay to eliminate the worst features of PAGA.

CA Government Affairs Column: Bringing Reason into The Room

January 14th, 2022

By Gail Delihant, Senior Director, California Government Affairs

The discussion to ban single-use packaging has been ongoing in the California Legislature for the past few years with the introduction of several bills related to the subject. All of them, except SB 343 (Allen – recycle labeling), have stalled due to successful lobbying efforts by Western Growers (WG) staff and a coalition of business interests.

Amidst these repeated legislative failures at the Capitol, environmentalists have pushed a plastic recycling initiative that is eligible for the November 2022 statewide ballot. It would levy a new one cent tax on producers of single-use plastic as well as require single-use plastic packaging, containers and utensils to be reusable, recyclable or compostable by 2030. The tax would add funds to bureaucratic recycling and environmental programs.

California is not the only state to tackle this issue. Connecticut, Delaware, Hawaii, Maine, New York, Oregon and Vermont have all enacted some kind of single-use plastic ban, as have Canada and Europe.

Why does the fresh produce industry care about this issue? Reducing single-use packaging and increasing plastic recycling is a laudable goal, but when it comes to agricultural commodities, this goal should not be at odds with the ability to provide affordable and safe food products or reduce food waste.

Packaging is part of the solution to tackle food waste as it plays a critical role in protecting products and resources. It keeps food in a protective atmosphere or vacuum and provides a barrier against oxygen and moisture, thereby optimizing humidity and temperature.

Packaging helps thwart and reduce waste by:

  • preventing food spoilage;
  • ensuring food quality and safety along the supply chain and at home;
  • informing consumers on how to use and store packaged food products; and
  • increasing shelf-life in the store and at home.

Additionally, the carbon footprint generated by food waste can be higher than that of plastic. The role of packaging in preventing food waste has been well researched and documented.

What WG is Doing to Fight the Single-Use Plastic Ban

Banning single-use packaging in the next five years will cause havoc for fresh produce growers, packers and shippers. This next legislative session will see yet another effort to address recycling and single-use plastics in California that will hopefully convince the proponents of the initiative to pull it from the ballot.

WG has been advocating for reasonable concessions on the issue when it comes to fresh produce and has been successful in receiving a few exemptions. WG will continue to be part of the ongoing conversation with industry partners throughout the country and Canada to try to bring reason into the room.

Legislator Profile: Long Beach Assemblymember Patrick O’Donnell on the Supply Chain Bottleneck

January 14th, 2022

By Stephanie Metzinger

As the protector of twin ports Long Beach and Los Angeles, California State Assemblymember Patrick O’Donnell has long advocated for efficiencies in and support of the ports. O’Donnell, a Democrat, has served as the 70th District Assemblymember since 2014. Throughout his term, he has accelerated the protection of natural resources, advanced state university educational offerings, led efforts to grow the maritime industry and encouraged a balanced budgeting approach that fosters a thriving economy for the Golden State.

O’Donnell currently serves as Chair of the Assembly Select Committee on Ports and Goods Movement, providing expertise on the complex challenges and opportunities faced by the freight sector, supply chain and logistics industries. Western Grower & Shipper recently interviewed O’Donnell to gain his insight and analysis on port challenges and supply chain disruptions:

WG&S: What is your main priority for relieving congestion at the ports?

Patrick O’Donnell: The most basic function I serve is to help people become educated and activated on the issue. A lot of the conversation has been around imports sitting on ships outside our harbor, but we need to educate people on the current situation at our ports as it relates to both getting goods in and out of our nation.

WG&S: Our farmers are struggling to get equal or better treatment from carriers because carriers are prioritizing imports and not exports. How do we get more attention on exports?

PO: This is something we examined at the Select Committee on Ports and Goods Movement Hearing on Nov. 3, 2021. We are just broaching that conversation because we have not had this problem before. Prior to this, the shipping companies had an incentive to export goods: money. It appears that many shippers are now bypassing the opportunity to export products because the profit just is not there as it is with the imports. They are making six to seven times greater profit with imports than they were just two years ago.

We need to address this issue as a state by taking a look at California export policy and including changes to comport with our port complex.

WG&S: What are some actions being done on the state-level priorities for solving the supply chain bottleneck?

PO: Things are being done in both a short-term and long-term manner:

  • Short Term: Property Off the Ports
    It is becoming like spaghetti out on our docks. There are imports coming in and exports going out, but there are also a lot of containers that have been sitting there since Easter and the Fourth of July since the owners no longer desire that cargo and are not picking it up. Governor Gavin Newsom has developed a list of properties and locations near the ports where we can place these unused containers to free up space on the docks. This will allow us to bring more products into the ports and push more out.
  • Long Term: Examining Infrastructure Needs and Investing in our Ports
    The root cause of this bottleneck is people buying a lot of stuff and our infrastructure not being prepared for it. We need to look at infrastructure support for the ports, focusing on more on-dock rails (railroads closer to the ship where we can move product easily off the ship and onto the train) so we would not need as many trucks. Additionally, we need to start speaking about encouraging U.S. production of chassis (the undercarriage of automobiles). There is a shortage of chassis because 1) they are being made in far-away lands like China and it is taking too long to get them; and 2) containers are being sent to full warehouses, and as a result, they are just sitting in the parking lot on chassis and tying up the chassis pool.

WG&S: When can we expect things to go back to normal?

PO: Port management is telling us that it will be the better part of the year before things get back to “normal.” There is even a projection that there will never be a “normal” again. If this is to be the new norm or if this bottleneck situation is to happen again, we need to be prepared for that by investing in our ports (specifically, infrastructure) and creating wise policies around our ports.

Personally, I think it is going to continuously get better. What you are going to see is that the velocity (ability to get containers in and out of the dock quickly) will improve, but we will also maintain the current high volume.

WG&S: How can the agriculture industry continue to support you in your efforts?

PO: A lot of agriculture lies outside my district but about all of ag comes through my district. Just because you do not have a port in your district, it does not mean that advocating for the support of ports is not important to your district. I encourage folks who have farms across California to engage with their respective assemblymember and make them aware of how important ports are to your business and district.

WG&S: Any last thoughts for our readers?

PO: The current state of the supply chain is very much bipartisan. This is something that we all see as a real issue, and I appreciate the opportunity to work with my colleagues on the other side of the aisle to help solve this problem.

My job has continually been to educate others in Sacramento as to how important the ports are to our economy. Forty percent of the goods imported in the United States come through the two ports in my district. For economic, environmental and national security reasons, we need to invest in our port complex and infrastructure so we can get goods in and out in a more expeditious and environmentally-friendly fashion.

What’s Trending Column: What Does Peanut Butter Have to Do with Social Media Strategy? Everything.

January 14th, 2022

By Stephanie Metzinger, Senior Communications Manager

Social media platforms are a dime a dozen. A plethora of new platforms and apps come online each year, leaving marketers to guess at which one(s) to pursue—all in hopes that their gamble pays off and their blind choice will be the winning platform that gains sudden popularity. As brands finalize their public relations and marketing plans for the upcoming year, the phrase “I like my peanut butter chunky—not spread too thin” is one to live by.

At Western Growers, this peanut butter-based guiding principle helps remind us to not become overwhelmed with every burgeoning social media platform and spread ourselves too thin by signing up for each one. Rather, we conduct analysis to learn what social network our target audience is active on (see Social Media Use in 2021 chart for demographic guidance) and create tailored content that will engage that respective group of brand ambassadors. HubSpot recently conducted a survey of more than 1,000 global marketers from B2B and B2C brands and 64 percent cited that they concentrate on three to five social platforms, 11 percent on one or two and 7 percent on seven or more.

Beyond creating audience-and-platform specific content, below are five additional principles to keep in mind as we head into 2022:

1.  Short-Form Content is King

The average human attention span is now eight seconds. If you want to win in 2022, focus on creating videos that are highly entertaining, easy to understand and as short as possible. The days where one to three-minute videos were considered “short” are long gone; 10-30 seconds will be the sweet spot.

2.  Pay to Play

Changes to news feed algorithms have resulted in a year-over-year decline in organic reach (aka the number of people who see social media posts that are not backed by ad dollars) on Facebook and Instagram. To combat this and ensure WG’s content is prominently featured, we focus on a three-step content strategy: 1) post often and consistently; 2) post eye capturing videos or graphics that are easy to consume; and 3) support these posts with advertisements in the form of post boosts and page like campaigns. Between our dynamic content and running two to three ads weekly, we saw a 62 percent increase in fans this past year.

3.  Build Intimacy and Trust

It is no secret that engaging with your followers will result in brand loyalty (and ultimately, sales!). This is a concept that needs to be a focal point of all social media strategies in 2022. Beyond responding to comments and messages in a timely manner, employing proactive tactics such as Facebook Live, Facebook Groups, Instagram Direct Messages (video messages/live video chats) and Instagram Polls/Questions via Stories. It takes time but it is worth it to create a real connection with a future brand ambassador or lead.

4.  Integrated Marketing Plans Drive Content

Consistently finding new content and creating engaging content can be difficult—especially for small public relations/marketing teams. The trick is to develop one piece of content, transform it and repurpose it across your other channels. For example, you can do the following with an article you write:

  • Facebook: post the article link with a short, snappy caption and a compelling graphic
  • Twitter: create a quick video with key elements from the article
  •  Instagram: post an IG Story with a link to the article

5.  Audio Continues to Rise

In 2020, about 100 million people listened to a podcast each month; it is expected to reach 125 million in 2022. With many now working from home, the adoption of audio platforms is skyrocketing and it is here to stay. Another example? Clubhouse—the audio app where you can join audio chatrooms—came on the scene in 2020 and now has two million weekly active users. If you have yet to integrate audio into your marketing plan, this year would be the one to start.

Science Column: New Year, Same Mission | WG Science – What’s Happened and What’s Next?

January 14th, 2022

By Scott Nichols, Science Program Specialist

For decades, Western Growers has progressed the science, technology and innovation of our industry to enhance agricultural practices, improve food safety and protect the environment. Today, that same mission flows through everything we do as an organization.

Between world-class food safety guidance and an abundance of educational and informative resources, our Science team strives to provide timely food safety services for our members and the agriculture industry at large. To sustain our environment and ensure it continues producing for generations to come, we are refining best management practices, developing sustainable solutions, and furthering climate change science and crop protection chemistries. Through data, we continue unlocking possibilities and are propelling the industry into a new realm of data-smart solutions and technologies.

Data Sharing

We’ve embarked on a revolutionary endeavor that brings a once far-fetched vision for the industry to life. Our leading data project is a Food Safety Data Sharing (FSDS) Platform that will help WG and the produce industry construct a data-driven narrative by advancing the sharing of food safety data. Users first will upload their food safety data into the platform. Then with the uploaded data, we assemble analytical visualizations and reporting tools so users can view, compare and assess their individual data in new ways. Additionally, the platform will generate anonymized and aggregated industry data sets, allowing individual operations to establish baselines and compare their data with the aggregate industry data to better evaluate and improve internal programs. If you’re interested in participating or would like to learn more about the project, visit our FSDS landing page on the WG website (wga.com) or reach out to us at [email protected].

Root Cause Analysis

Over this past year, Root Cause Analysis (RCA) was also a topic of high interest. To assist the fresh produce industry in RCA decision-making and implementation, WG helped develop and publish two RCA industry guidance documents. We then hosted a webinar series providing an overview of both guidance documents and addressed common questions. A robust RCA service and educational program is currently in development and will be available to all WG members soon. Both RCA guidance documents and the webinar series are available on our WG Resources page.

Food Safety Advisory Subcommittee

To better engage with our members and hear directly from the industry, we launched a new Food Safety Advisory Subcommittee consisting of a dozen companies from various business types and commodities purposed with providing technical expertise and advice on science issues and industry regulations impacting the safety of fresh produce. If you’re interested in learning more or joining the committee, please reach out to Sonia Salas at [email protected].

Product Sampling and Testing Guidance

As an industry leader in produce safety, WG remains committed to driving the evolution of guidance for preventive food safety programs in leafy greens as well as other commodities. This year, the Science team bolstered food safety efforts with the creation of Appendix C: Pre-harvest Product Sampling and Testing Protocol and managed another Leafy Greens Food Safety Guidelines Amendment Process.

Appendix C was developed using cutting-edge science and statistical models with independent input from multiple subject matter experts. The objective of Appendix C is to offer standardized, science-based guidance to operations who may be interested in developing and implementing pre-harvest product sampling and testing protocols. Our team also created a guide to help growers, shippers and handlers better manage Food and Drug Administration (FDA) sampling visits, which is on the WG website.

Leafy Green Food Safety Guidelines Amendment Process

To facilitate the Leafy Greens Food Safety Guidelines Amendment Process, solicit broad industry engagement and ensure transparency, WG, in partnership with the Arizona and California LGMAs, managed a systematic amendment process to the Soil Amendments/Non-Synthetic Crop Treatments and Adjacent Land Use/Production Locations sections of the LGMA-approved Leafy Green Food Safety Guidelines in May-July 2021. The process resulted in changes to the LGMA-approved food safety guidelines, which impact the way leafy greens are farmed in California and Arizona.

Moving Forward

In 2022, WG Science will continue building on the firm foundation laid in 2021 and maintain focus on our vision for WG, our members and the broader agriculture industry. Because together, we create solutions. Together, we lead the industry.

Focus on Philanthropy: The California Farmworker Foundation’s Pillars of Support Serve to Build a Community

January 14th, 2022

By Ann Donahue

For Hernan Hernandez, everything begins and ends with family. As the Executive Director of the California Farmworker Foundation, he understands that family comes in two forms: the one you’re born into, and the one you choose.

“I grew up in a town called Richgrove, California, population 3,000,” he said. “I grew up to farmworker parents, immigrants, who came to this country seeking a better future, who worked in the table grape industry throughout their lifetime. Me, all of my siblings, we all worked for the same company. We grew up in the fields. Whenever there was time, in the summers, in the winters, in the evenings or on the weekends, we were in the fields where our parents were working.”

Hernandez said his parents wanted their children to witness their labor, not just to see how they were able to support the family, but so they understood what it meant to be self-sufficient. “The perfect example of how you evaluate the importance of education was by working in the fields—so you can see a better future,” he said. “That was their philosophy.”

Hernandez took the lessons to heart. He received his undergraduate and graduate degrees from the California State University, Bakersfield, then worked in politics for several years, managing campaigns and advocating for ballot measures. It was during this time, working at what he thought would be his dream job, that he had a realization.

“You know, the Salinas Valley is nice—it reminded me a lot of home,” he said. “But it wasn’t home.”

He returned to the Central Valley, and then in 2016 he got a call that would change his life. He was asked to join what would become the non-profit California Farmworker Foundation, an organization that was founded to give back to farmworkers and to empower them to have a voice so they can be advocates for themselves. “I didn’t think twice,” Hernandez said about taking the job.

The CFF works to provide what Hernandez called the five pillars of support to farmworkers: education, workforce development, health & wellness, immigration services and community engagement. After starting operations in the Coachella Valley, the organization has grown to include service centers in Fresno, Delano, and, in 2022, an expansion into Santa Maria with a total of more than 35 staffers. In 10 years, he hopes the CFF will have services available statewide.

The CFF has partnered with numerous Western Growers members, including Grimmway Farms and Mountain View Fruit Sales, with Hernandez stating the engagement with growers and shippers is vital to the non-profit organization’s success. Driven by data and surveys conducted in the field, CFF has an Ambassador Program, which allows agriculture companies to learn from key, respected decision-making farmworkers as to what programs, services and professional development can best serve to improve the quality of life of their skilled workforce. “We said: ‘We want to be held accountable, we want to hold you accountable—how can we work together?’” Hernandez said.

There is no doubt that the work being done by CFF is vital. In a recent article in the Los Angeles Times, Hernandez and CFF Outreach Specialist Arnaldo Gonzalez spoke about their work dispelling social media-fueled COVID vaccination misinformation among farmworkers in the Central Valley. Using the organization’s existing rock-solid relationships with farmworkers, they initiated a program where farmworkers were paired with farmworkers’ children who are recent college graduates to go out into the fields, answer questions, refute TikTok conspiracy theories and discuss their first-person experiences with receiving the vaccine.

That kind of outreach is being done by CFF on top of the ongoing COVID testing—up to 1,000 farmworkers a day—as well as support and rent relief for those in quarantine and unable to work; vaccination clinics and pop-ups the organization sponsors which have reached more than 50,000 farmworkers; and the more than 720,000 kits of personal protective equipment it distributed to farmworkers and their families after receiving donations from the public and private sectors.

“It has been a pleasure to work with California Farmworker Foundation,” said Alex Sanchez, Ranch Unit Director for Grimmway Farms. “Hernan and his team have offered Grimmway and our family of employees a great deal of support. COVID-19 presented so many challenges and CFF came alongside our ongoing efforts with an additional grassroots approach to outreach, assisting us in sharing accurate information with employees and administering onsite vaccine clinics. We are incredibly grateful for our relationship with CFF.”

As a result of the deep links CFF’s Ambassadors had in the farmworker community, the organization was able to deploy quickly and thoroughly as the scope of the pandemic became apparent, Hernandez said. “When you look at education, when you look at vaccinations, when you look at testing, we’re leading the way in all those fields—and it all comes down to the infrastructure that we developed years ago,” he said.

Beyond its exemplary record during the COVID crisis, CFF aids farmworkers during time not spent at work by providing school materials for their children, and outreach in times of crisis, including for victims of domestic violence. The New Generation program, created in partnership with California State Sen. Melissa Hurtado, gave $1,000 scholarships to more than 80 children of farmworkers, most of whom were first-generation college students and children of immigrant parents. In 2020, CFF was named the California Non-profit of the year by the California Association of Nonprofits; 87 percent of the funds raised by the organization go back into programs and services for farmworkers.

As the response to COVID evolves from emergency footing, Hernandez is looking ahead to developing projects related to the company’s other pillars. One, in particular, seems urgent: workforce development. “Technology is evolving, agriculture is evolving,” he said. “I want to make sure that farmworkers have the appropriate skill sets in the future to continue working. We want to make sure they not only have a job, but they have a job with upward mobility.”

In the non-profit space, funding, of course, is key. But Hernandez believes there is more to philanthropy than financial support. Starting in 2022, the CFF is looking for additional members to add to its Board of Directors, members who can help with the organization’s expansion into more of California.

“Checks are okay,” Hernandez laughed, “But I do think that the key to our success is really a partnership with growers believing in us, helping us accomplish our work plan, so it’s not just us doing it alone. We really, really appreciate the growers that when we talk to them and we engage them, they get it. Western Growers can be of significant help to the California Farmworker Foundation by opening up new doors with different growers in the areas in which we’re already residing, or that we’re entering.”

In the end, for those who support the CFF and those who receive the organization’s offerings, it’s all about creating the community, the extended family that Hernandez has worked with—and for—his entire life. “I always had a passion for working for my community but, more than anything, I had a passion for working with farmworkers because I was a farmworker,” he said. “It’s your typical Central Valley story.”

*pictured above: Hernan Hernandez (right) with Mike Thurlow of Mountain View Fruit Sales

Federal Government Affairs Column: New Federal Funds to Help Alleviate the Western Water Crisis

January 14th, 2022

By Dennis Nuxoll, Vice President, Federal Government Affairs

As I type this column, it is the wet season across much of the West. Snow is falling or rain is being dumped on the landscape. At this time of year, for the unknowing, water concerns seem far away but farmers in the West know better. They know that we have seen historic drought conditions impact farms and communities throughout the West. We know that even one very wet rainy season probably will not break the cycle of water shortages we have seen recently.

Most farmers know that water infrastructure investments are essential to prepare for changing Western hydrological conditions, expanding populations, pressing environmental needs and other challenges. Farmers have long pointed out that our water infrastructure is old—in many cases as old if not older than the national highway system—and it needs to be modernized. Indeed, without immediate action to ensure adequate and well-functioning infrastructure, future droughts will result in increasingly devastating impacts. This inevitably will threaten the ability of existing systems to provide reliable water to our Western cities, farms and rural communities, many of which are already bearing economic, health, and environmental burdens.

In early November, President Joe Biden signed the bipartisan infrastructure bill into law. The focus of that bill is to modernize and upgrade the infrastructure of our country—something politicians have been talking about for years and years. Critically for us, the bill includes billions of dollars for Western water infrastructure. The package includes an “all of the above” approach to Western water. Rather than dictate projects to local jurisdiction, the bill adds significant resources across a broad variety of water-related accounts. This should allow local circumstances to dictate the types of projects that will be built. Solutions to the water crisis in Arizona are different than solutions in Washington, which are different than what Colorado needs. Billions of dollars will flow to repair, rebuild or replace existing infrastructure that is crumbling. Billions will go toward water recycling and desalination. Significant resources will be added for water conservation as well as dam safety and repair. In addition, money will help restore ecosystems and forest health, which in turn can help improve water quality.

In total the infrastructure bill allocates $8 billion specifically for Western water infrastructure projects across a wide array of project types so solutions can be customized. While these projects may not help with next year’s problems, if there are any, they will be critical to help build a more resilient water system to make sure that today’s farms survive for decades and decades.

Securing these resources did not happen by accident. Since before the 2020 election, Western Growers has been working on this issue. With infrastructure as the topic, we believed that there would be a major opportunity to work with politicians on both sides of the aisle. So we first helped to put together a coalition from every Western state to ensure that water was included in any infrastructure package that would move during 2021.

For many elected leaders, especially those east of the Rockies, when you say water infrastructure you only mean lead pipes or maybe flood control. Water shortage and water quantity issues rarely come up. More than 250 organizations—agricultural groups, rural water districts and urban water providers—joined the coalition focused on pushing Western Congressional and Senate leaders who are concerned about water scarcity.

Our goal was to ensure that significant dollars were allocated to repair existing infrastructure that is crumbling, to conserve water, to build new water conveyance, to create green infrastructure and to construct conventional steel and concrete storage. After organizing the coalition, we engaged Congress through direct action with member offices as well as a focused public communication campaign in which we engaged the press across the West to bring the issue to the forefront. With the ever-present drought throughout the West during 2021, linking our solution to this ongoing problem was a winning strategy. Months, and in many cases years, of hard work paid off as Western Growers and our coalition partners were able to secure $8 billion in funding for Western water priorities as part of the bipartisan reconciliation package. That package contains most of the priorities our coalition put forward.

Western Growers is not done, however. We, and our coalition partners, will now be working with the Biden Administration to make sure these funds become available as quickly as possible. We want projects built to help our communities as fast as we can to ensure our future. These projects often have the added benefit of creating good paying jobs for our rural communities.

Western Growers Annual Meeting Highlights

January 14th, 2022

By Cory Lunde

With the cancellation of the Western Growers Annual Meeting in 2020, its return in 2021 represented an opportunity to celebrate the resiliency of the Western fresh produce industry. Amid a global pandemic, Western Growers members have rallied to continue providing a healthy, abundant supply of fruits, vegetables and tree nuts to consumers across the country and world. More than ever, the value of common association was demonstrated by strong participation from members and industry allies, and substantial support from recurring and new sponsors.

Attendees of all stripes were treated to the first-class social events, educational sessions, speakers and entertainment that have become the hallmarks of the Western Growers Annual Meeting.

The Welcome Reception, hosted on the Fairmont Grand Del Mar’s Aria Lawn Sunday evening, provided the first opportunity for Annual Meeting attendees to network and build both personal and professional relationships. Conversations spilled over into planned and impromptu dinners at the fine dining establishments on property, where bonds were further deepened.

Monday morning commenced with the Annual Meeting Board Meeting, which highlighted the service of Western Growers legend Hank Giclas and honored the extraordinary two-year tenure of outgoing Chairman Ryan Talley of Talley Farms. During the traditional passing of the gavel ceremony, Talley turned the 2022 chairmanship over to Albert Keck of Hadley Date Gardens.

Coinciding with the board meeting was the inaugural Kickoff Keynote featuring Magatte Wade, a remarkable Senegal-born entrepreneur, visionary business leader and inspirational speaker. Her passion for creating positive change in Africa captivated the audience.

Lawyer, author, columnist and television commentator Gordon Chang headlined the PAC Lunch, where his extensive expertise on China was on full display. Chang used his remarks to discuss current geopolitical trends in China and forecast the future of U.S.-China relations.

The topic of the packed afternoon featured session was water and agriculture in the West. Western Growers President and CEO Dave Puglia moderated a riveting, and sometimes sobering, panel on the ways in which climate change, more frequent and severe droughts, and existing and potential regulatory policies will impact the future of fruit, vegetable and tree nut production in the Western U.S.

Monday evening began with the VIP Sponsor Reception, an intimate event recognizing the premier sponsors of the Annual Meeting at the Diamond, Platinum and Gold levels, and providing them with dedicated access to the Western Growers Board of Directors and Executive Staff.

Rounding out the evening was the main Annual Meeting social event, a beach ball-themed Party with the Partners, complete with lawn games, s’mores and the good company of Western Growers friends and family. Delicious gourmet barbeque food and cocktails were consumed long into the night.

Tuesday started with an emerging fan-favorite tradition, the 3rd Annual Diamond Breakfast in honor of our five Diamond Sponsors: alliantgroup, Bayer, Farm Credit, Kincannon & Reed and RDO Equipment. Hosted by Puglia, each Diamond Sponsor presented a corporate video and shared remarks in front of an audience of Western Growers Board Members and Executive Staff. The event concluded with a special trophy presentation in recognition of the generous contributions of each Diamond Sponsor.

The morning got rolling with the 4th Annual Western Growers/S2G Ventures AgSharks® Competition, which provided the requisite drama as five start-ups vied for $250,000 in investment capital to support the growth of their business. Ultimately, 3Bar Biologics walked away with the coveted prize as its living agricultural microbe products captured the judges’ imaginations (and S2G Ventures’ pocketbook).

During his outgoing Chairman’s Speech at the Chairman’s Luncheon and Keynote, Talley provided an earnest case for the importance of fathers in building strong homes and communities. What followed was an equally passionate keynote from Constitutional scholar and lawyer Timothy Sandefur in which he examined the concept of a permission society and illustrated how the freedoms of Americans are increasingly being treated as privileges by the government.

Another hot topic was explored Tuesday afternoon during the final featured session on vertical farming, or controlled environment agriculture (CEA). Western Growers Vice President of Innovation Walt Duflock moderated a high-profile panel that covered the grower, retailer and investor perspectives on the future of CEA in the fresh produce industry.

During the capstone event, the Award of Honor Dinner, trailblazing agricultural advocate Carol Chandler was recognized for her lifetime of service to Western Growers and the fresh produce industry. Emphasis was placed on Chandler’s enduring legacy of building a future generation of women leaders in agriculture. Capping off the magical evening was a nuanced, masterful comedy performance by The Greatest Average American, Nate Bargatze.

WG provided attendees with an exceptional experience that exceeded expectations and looks forward to setting the bar even higher next year at the 96th Western Growers Annual Meeting in Las Vegas.