A Look at WG Employee Champions: Inside Western Growers

September 19th, 2022

Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico. Western Growers provides a lobbying voice in state and federal government, affordable health benefits, technology and innovation development, transportation solutions, legal and human resources guidance and more.

Behind the association are more than 400 employees who are dedicated to serving America’s food heroes; here is an inside look at two of Western Growers’ champions.

 

Mary Doidge

Executive Assistant, Finance

 

I am the Corporate Administrator for WGFC’s Corporate Programs, which include Wells Fargo Corporate Credit Card, cell phones and wifi devices, DEEM travel program, Office Depot and Iron Mountain.

Do you have a favorite WG memory?  Riding up the elevator with Dave Puglia right after he became President/CEO and congratulating him on his promotion.

What is the best part of your job?  I get to meet the new hires by setting them up with our corporate programs.

Do you have a work accomplishment that you are proud of?  I have brought in a 3rd party vendor to reduce the cost of our cell phone expense.

What’s something most people don’t know about you?  I ran the 2010 Los Angeles Marathon.

Do you have a favorite sports team?  New York Yankees and the Kansas City Chiefs

Do you have a favorite vacation spot?  I love cruises. I have been on a European cruise, cruised the Caribbean Islands and Alaska.

 

JD Matthews

Team Lead, Administration

 

I train my team on and help resolve the more complex Eligibility/Enrollment and Account Receivable inquiries, manage audit and reconciliation processes, and improve/automate internal procedures to ensure billing and reporting accuracy.

Do you have a favorite WG memory? Just recently my vehicle was vandalized and totaled. My favorite memory is just how so many people at this amazing company expressed their concern and offered their help. We work with not just great talent, but with great people.

Do you have a work accomplishment that you are proud of?  While I do have work-related accomplishments, I am prouder of how I have grown and everything this company has done to provide the path for that growth.

Do you have a passion or hobby?  Tennis, Fantasy Football, Gaming

What’s your favorite movie/tv show/song/book?  Harry Potter Series/Any Star Trek Series/Rock & Roll Band by Boston

What’s something most people don’t know about you?  I can break down a subject many different ways in different learning styles which is why I think I am a great teacher. I honed this skill while I taught swim from 6 month olds to 94 year olds and also working in afterschool programs at primary schools.

Do you have a favorite quote or motto you live by?  “People’s dreams will never die!” — Marshall D. Teach (One Piece)

Do you have a favorite sports team?  Chicago Bears. Da Bears!

Do you have a favorite place where you have traveled?  Venice, Italy

Anything else you would like to share? My wife volunteered at a local urban farm in Long Beach, California for 3 years and has learned, and taught me, a lot about growing and the importance of agriculture in everyone’s lives. We don’t currently have space for a garden but use a small hydroponic indoor garden to grow what we can.

 

Western Growers Loses Two Agricultural Pioneers

September 19th, 2022

Hank Giclas

Henry Lee Giclas III, loving husband and father and chile connoisseur, passed away Friday, Aug. 5, 2022, at the age of 63.

Hank, as he was called by all who knew him, was born in Socorro, New Mexico, to parents Patricia “Patsy” and Henry “Hank” Giclas Jr. With a mother who earned her PhD in molecular biology and a father who was a mechanical engineer, Hank came by his widely-respected intelligence honestly, which he utilized in service of the Western fresh produce industry.

During his early years, Hank’s love of agriculture was cultivated working on the family farm in Buckeye, Ariz. Following an extended stint in the oil, gas and exploration business, Hank completed his studies in agricultural education at his beloved University of Arizona—Bear Down!—and taught vocational agriculture prior to joining Western Growers in 1990.

In the three decades that followed until his retirement as Senior Vice President, Strategic Planning, Science and Technology in 2020, Hank built a professional reputation second-to-none. Often described as a gentle giant thanks to his towering stature and patient, positive attitude, he spent much of his career at the forefront of advancements in food safety and agtech.

Given all his professional accolades, Hank was proudest of his strong, 34-year marriage to the love of his life, Kathy, and the accomplishments of his children. (And, maybe, his orchard and garden.) He never failed to tell his family how much he loved them and always made sure to kiss them goodbye.

When he wasn’t exploring the world with his family or quoting lines from “Monty Python” movies, Hank could be found enjoying the great outdoors—no matter the weather—or in the kitchen cooking or baking from scratch, often with ingredients picked from his own garden.

While he may have moved at his own pace in all things, Hank carried with him an unshakeable moral compass and lived by the non-negotiable values of faith, integrity and humility. He is survived by his wife, Kathleen; daughter, Hannah; son, Henry IV; father Henry Giclas Jr.; and brother Patric Giclas.

“Hank Giclas dedicated himself, totally and fully, in service to the people of the fresh produce industry. His career was an unabashed love affair with agriculture, second only to his dedication and devotion to the love of his life, Kathy, and their two children. We have a saying in our organization, that someone especially enamored with and dedicated to the people of our industry ‘bleeds Western Growers green.’ Hank probably coined that saying but whether he did or not, no one will ever embody its spirit more fully,” said Dave Puglia, President and CEO. “Our industry is immeasurably better for Hank’s vision and leadership. Few in our industry labored as long and hard as Hank to produce scientifically valid food safety guidance. For much of his career, he blazed that trail with little company along the way, but because of his perseverance our industry today places food safety at the top of the agenda. Similarly, Hank saw the unlimited potential for technological innovation to solve the most intractable problems and improve every aspect of our industry. It was Hank’s vision to create and then grow the Western Growers Center for Innovation & Technology, which is today at the center of agtech innovation for the fresh produce industry.”

Puglia continued: “His career achievements go far beyond these, but in everything he did, Hank Giclas was that rare and special person who brought strategic vision forward and ensured its successful and practical execution.”

A memorial service will be held on Sunday, November 6, 2022, at 10:30 a.m., in the chapel at Hotel Albuquerque at Old Town. 800 Rio Grande Blvd NW, Albuquerque, NM 87104.

In lieu of flowers and cards, the Giclas family asks friends and family to consider a donation in Hank’s name to MoGro Mobile Grocery, a New Mexico charity focused on bringing produce to underserved communities (and where Hank and Kathy volunteered), or World Central Kitchen, which feeds people in war or disaster zones. Checks for MoGro Mobile Grocery can be mailed to Santa Fe Community Foundation, PO Box 1827, Santa Fe, NM 87504-1827. Donations for MoGro Mobile Grocery can also be made online at https://santa-fe-community-foundation.snwbll.com/mogro#action. Donations for World Central Kitchen can be online at https://wck.org.

 

Carl Sam Maggio

Carl Sam Maggio, one of three founding partners of Prime Time International, and a six-decade veteran of the fresh produce industry, died on Aug. 19, 2022. He was 89.

Growing up in El Centro, Calif. and the Imperial Valley, Maggio served in the U.S. Army and went on to graduate from the University of Southern California. He went to work for his uncle, carrot king Joe Maggio, in 1957. In 1975, Carl Sam Maggio, Cookie Bianco and Howard Marguleas launched Sun World International as two main partners in what would become a highly innovative operation. The company started with a citrus deal, added a lettuce operation and then was off to the races. For the next 15 years, Sun World was at the forefront of innovation with such produce items as seedless watermelon, yellow and red peppers, vine-ripe tomatoes and Superior Seedless table grapes.

In 1992, Maggio, alongside Mark Nickerson and Chuck Hodges, founded Sun and Sands Enterprises. Sun and Sands merged with C.H. Sales in 1997, and Prime Time International was born. Prime Time, then headquartered in Coachella, Calif., continues to specialize in red, orange, yellow and green peppers.

Maggio said in an interview that there weren’t many people in the pepper business in the 1990s and he felt the timing was perfect to expand in that particular commodity. “When we started the business, we looked for an opening…and that opportunity was the year-round bell pepper category,” he said in an interview with TheSnack.net.

Thanks to Maggio’s leadership, Prime Time has grown to ship more than 30,000 cases of mini, green, yellow, orange and red peppers daily from their growing areas throughout California and Mexico.

Earlier this year, Maggio announced his retirement from Prime Time International. “Carl Sam, Mark and the late Chuck Hodges founded our company in 1992 and are true titans of the produce industry. They made Prime Time into a leader in the bell pepper category, and we look forward to building upon their success,” said Mike Way, Prime Time International’s Managing Partner, at the time of Maggio and Nickerson’s retirement. “Not only are Carl Sam and Mark leaders in the industry, they are also generous in their support of our community and its many charitable organizations; we have learned a great deal from both men.”

Maggio was the 2012 recipient of Western Growers’ Award of Honor, the associations’ highest award. He served on Western Growers Board of Directors in 1978 and again from 1980-1994, including a term as Chair in 1992.

For Maggio, it was that dedication to the agriculture community that was one of the highlights of his career. “I’ve met great people; great things have happened,” Maggio said at the time he received the Award of Honor. “Obviously, I could retire if I wanted to, but nothing’s as much fun as this.”

He is survived by his wife, Barbara, and three children: daughters Jennifer Maggio and Leanne Ryan, and his son, Sam Maggio.

 

WGCIT Resident: Corigin Utilizing Nutshells to Improve Yields, Environment

September 19th, 2022

Utilizing a high-tech process involving thermal decomposition, Merced, Calif.-based Corigin Solutions LLC is turning crop waste into a biochemical plant growth enhancer that is proving to increase yields, reduce costs and sequester carbon.

“It is the epitome of a circular economy,” said Founder and CEO Michael Woelk.

He noted that the company is an investor-backed startup currently producing its liquid product on a pilot scale of one-half ton per hour. “As we scale our operation, we will produce 12 times that volume,” he said.

Woelk said the company officially began making product in April 2021, which is about when the firm became a resident of the Western Growers Center for Innovation & Technology, but the concept predates that by several years. He explained that it began with many conversations about how to turn biochar into viable agricultural products that help farmers and help the environment. Biochar is the lightweight black residue, made of carbon and ashes, that remains after the pyrolysis (thermal decomposition) of biomass. It is essentially a byproduct of crop waste that can improve water quality, reduce soil emissions of greenhouse gases, reduce nutrient leaching, reduce soil acidity, and reduce irrigation and fertilizer requirements. Biochar is noted for remaining in the soil for literally centuries, improving soil fertility for generations to come, while sequestering carbon.

Corigin’s top executive said the company has been trialing its product on both permanent crops and vegetable crops “with no negative results.” He said it has an amazing track record revitalizing tired orchards and vineyards that appear to be headed for replanting. The cure, according to Woelk, is typically 2-3 gallons per acre of Corigin’s proprietary Coriphol, sold at $40 per gallon. Depending upon the crop, a gallon of Coriphol is typically applied pre-planting for row crops and before bloom on permanent crops. The trials have also shown that for permanent crops applying another gallon post-harvest has shown to be very beneficial.

Woelk said the product offers the promise of both reducing costs through less use of inputs and increasing revenues through higher yields. He understands the skepticism of farmers who have constantly been presented with the next foolproof solution to their problems…“the next bug in the jug” as he calls it. But Woelk said virtually every grower that has trialed Coriphol has been “blown away” by its performance.

He said utilizing this product allows growers to focus on “crop wellness instead of just treating problems.”

The company’s website defines Coriphol as “an aqueous solution comprised of numerous phenols, organic acids and other light weight biomolecules sourced from almond shells.”

That website also articulates, in a very detailed way, the process of turning crop waste into this biochar product. “The principles of Corigin’s production platform are based on thermal decomposition (pyrolysis) of lignocellulose and vapor handling. Pyrolysis occurs naturally in wildfires. Our technology reproduces this same pyrolytic process in a controlled environment, more efficiently and on an industrial scale. Under high temperature and oxygen-free conditions, lignocellulose converts into vapors, gases and biochar. By limiting oxygen availability, we prevent the combustion of the vapors and instead condense them as bio-distillates comprised of hundreds of low molecular weight biomolecules, namely plant phenols and organic acids. We also collect a high quality biochar.”

The website reveals that Corigin’s technology partner is Pyrovac, Inc. The Pyrovac platform is comprised of a state-of-the-art biomass reactor and other high-tech equipment that ultimately creates the end product in a way that “produces no waste or harmful emissions and is carbon negative.”

On its website, Corigin defines its value proposition in many different ways but being good for the environment is a common thread. “Corigin’s products can help rebalance the carbon cycle by permanently sequestering carbon in soils, where again, carbon does miraculous things to improve farmland fertility. Our biochars also reduce farmland runoff and emissions by retaining nutrients in soils and reducing load requirements. Biochar also adsorbs about five times its weight in water—a huge benefit in drought-stricken regions like California.”

Woelk said it is a profitable business model as the company is converting low-cost raw materials into a valuable product. He reports that about 80 percent of the crop waste on a farm is low-value residue like nutshells and orchard trimmings. “Now, imagine a technology that continuously converts low-cost biomass into multiple high-value revenue streams continuously—at 80 percent product yield,” claims the website noting that every ton of crop waste produces about 1600 lbs. of product. “Corigin’s process offers a way to recover more value per ton of plant waste than perhaps any other process in the world,” he said.

Corigin is working directly with growers on crop trials and Woelk encouraged interested growers to get in touch with him directly at (949) 677-6230, [email protected] or www.corigin.co, or through WGCIT. The company’s product is currently on the market in several options and being sold by Penny Newman Farm Products.

At WGIS, We Are Family

September 19th, 2022

By Jeff Gullickson, President, WGIS

Western Growers Insurance Services (WGIS) is more than a broker. We are family.

There is little doubt that our competitors are driven by profits and shareholder expectations. One U.S. healthcare and insurance company (that shall remain nameless) earned $24 billion in profits in 2021. They are making even more money this year, recently reporting profits of over $5 billion during the second quarter of 2022, up more than 20 percent from the same period last year.

We, on the other hand, are family.

WGIS exists for one reason: To serve you, our member businesses, and enhance your competitiveness and profitability, not our own. Any profits derived from WGIS services are poured back into the association activities of Western Growers, helping to strengthen our position as the leading voice of fresh produce growers in the country.

Over the years, WGIS has evolved to meet the changing needs of our members and the insurance marketplace. Today, we are a full-service brokerage dedicated to providing customized, personal service to the agriculture and food industry. We understand the unique challenges your business faces because we live it alongside you every day.

Because we are family.

In addition to our deep knowledge of agriculture and the insurance landscape, we have something our competitors do not: access to the skills and expertise of the most talented association staff in the business. This allows us to stay ahead of the curve, to leverage the collective resources of our entire organization to create truly innovative and leading-edge risk management solutions for our members.

WGIS perpetually works to connect the dots between our association and insurance capabilities. We previously achieved this objective with our property and casualty lines of business. Now, we are extending this effort to our employee benefits program with the addition of Ed McClements to the WGIS family.

Ed is well-known in our industry and has helped food and agriculture companies navigate the costs and complexities of health care benefits programs for over three decades. He has been involved with many industry organizations, including the Agricultural Personnel Management Association, Ventura County Agricultural Association, and the Grower-Shipper Association of Central California.

He joins our current employee benefits broker team of Darcie Floyd, Carlos Camarena, Jason Verhoef, Rick Rendon and Peter Mehta, each with many years of experience and member relationships.

As a group, they are tasked with identifying the critical links between our association experts, Western Growers Assurance Trust*, Pinnacle Claims Management and our own internal WGIS capabilities. Combined with our benefits service team of over 25 professionals located throughout Arizona and California, the access to expertise and solutions will set a new standard in the industry.

We understand that people are our members’ most important asset, and we are concentrating our efforts on helping you recruit and retain your employees through enhanced worker safety and welfare. All with a focus on your bottom line. We will communicate our expanded offerings in the very near future.

It is important to note that nearly every Western Growers executive from President & CEO Dave Puglia on down is involved in this effort. You have our promise that we will continue to unite to provide you with the highest level of support and service, doing everything in our power to help your business thrive into the future.

Because that is what family does. Can you say that about your broker?

 

*The Western Growers Assurance Trust (WGAT) is a not-for-profit entity run by a board of directors comprised of participating employers. It is truly “by the farmer for the farmer.” Instead of maximizing returns for shareholders, WGAT aims to break even and returns all profits to participating employers in the form of more competitive rates and expanded service capabilities.

Misclassification of Employees: A Per Se Violation Under the Agricultural Labor Relations Act

September 19th, 2022

By Pat Moody, Catherine Houlihan and Vismaad Gondara, Barsamian & Moody

Can non-compliant paystubs in violation of Labor Code section 226(a) lead to an unfair labor practice under section 1153(a) of the Agricultural Labor Relations Act (the “Act”)? Shockingly, or not so shockingly in California, the answer is yes, according to a recent ruling by the Agricultural Labor Relations Board (the “ALRB”). It is now the ALRB’s position that an employer’s misclassification of workers, in and of itself, is an unfair labor practice in violation of the Act. Even more significant is the Board’s holding that, absent any authority and in a groundbreaking divergence from years of Board precedent, employers may be subject to civil penalties under Labor Code section 226.8 for the willful misclassification of employees as independent contractors.

The ALRB’s recent decision in Cinagro Farms, Inc. (2017-CE-008-SAL) (48 ALRB No.2), related to the employment and alleged termination of a group of farmworkers. Upon hiring, the employer told the workers they would be receiving gross pay without deductions. The workers allegedly complained multiple times about the form of the checks and the lack of paystub information, such as year-to-date pay, hours worked, rates of pay and payroll tax deductions. Although the employer never expressly told the workers they are independent contractors, it allegedly instructed its bookkeeper to treat the workers as “vendors” [independent contractors] rather than employees.

A few months after hiring the first group and receipt of their complaints, the employer hired a different group of farmworkers and advised the previous group there was no work for them “until further notice.” Following a hearing, the ALRB held that the employer constructively terminated the first group of workers in violation of section 1152, which protects workers’ “concerted activities.” According to the ALRB, the employer did not need to expressly communicate to the workers that they were being “treated” as independent contractors, rather, the deficient paystubs by themselves constituted an implied admission to the workers. In issuing its decision, the Board held that the employer’s misclassification of the employees as independent contractors “implicitly conveyed to the workers that they have no labor rights.”

Earlier this year, the ALRB had invited briefs from interested parties on the question of whether misclassification of agricultural employees as independent contractors constitutes an unfair labor practice and the scope of the remedies available to the ALRB in cases of misclassification. Specifically, the ALRB requested briefs addressing three questions, one of which was “If the Board finds an agricultural employer willfully misclassified agricultural employees as independent contractors, what is the scope of the Board’s authority to assess civil penalties pursuant to section 226.8, if any?” Barsamian & Moody and a whole host of others filed briefs in support of Cinagro’s position, specifically providing authority evidencing that the ALRB lacked authority to impose civil penalties.

The ALRB ultimately rejected the arguments of the agriculture industry representatives and found that the misclassification was a per se violation of section 1153(a) of the Act and that the ALRB has the authority to assess civil penalties under Labor Code section 226.8.

Labor Code section 226.8 provides, in pertinent part, that it is “unlawful for any person or employer to engage in…[the] [w]illful misclassification of an individual as an independent contractor.” Section 226.8 can be enforced through civil proceedings in a court of competent jurisdiction (e.g., California Superior Court) or with the Labor and Workforce Development Agency (“LWDA”) and its departments, divisions, commissions, boards, or agencies. Notably the LWDA oversees seven agencies, including the Department of Industrial Relations (Labor Commissioner / Department of Labor Standards Enforcement (“DLSE”)) and the ALRB. Section 226.8 allows for the imposition of civil penalties, meant to punish the wrongdoer, upon the determination that a person or employer has engaged in the willful misclassification of an individual as an independent contractor. The available penalties include a penalty of not less than $5,000 and no more than $15,000 for each violation; which in this case was each employee misclassified. Employers who are found to engage in a “pattern or practice” of willful misclassification are subject to a minimum civil penalty of $10,000 with a maximum penalty of $25,000 for each violation. Section 226.8 allows for the imposition of additional fines and penalties as permitted by law, including required positing of a notice of violation.

As general background, while the ALRB has broad discretion in ordering an employer take an affirmative action in order to remedy an unfair labor practice, it is well established that the ALRB’s authority is not unlimited. The Board’s authority has always been remedial; i.e., to correct the alleged bad acts of the employer and make the employee whole for losses incurred due to the employer’s actions, such as back pay and reinstatement of employment.

In making its order to impose civil penalties under Labor Code section 226.8, the ALRB determined it has authority to impose Labor Code section 226.8 civil penalties for the following reasons:

1.  Section 226.8 provides for the assessment of penalties by any of the LWDA’s departments, divisions, commissions, boards, or agencies;

2.  The imposition of penalties under section 226.8 are obligatory in that it provides that if a determination of willful misclassification is made, “the person or employer shall be subject to a civil penalty” (emphasis added);

3.  It is the ALRB’s position that the determination that there has been a Labor Code section 226.8 violation is a standalone violation which it may enforce aside from unfair labor practices case and that the ALRB’s limitation to remedial remedies is limited to remedies under unfair labor practice violations;

4.  As a footnote, the Board opined that, even in unfair labor practice cases, the Board has authority to assess civil penalties as a remedial (nonpunitive) remedy because the “primary purpose [of civil penalties] is to secure obedience to statutes and regulations imposed to assure important public policy objectives.”

 

What this means for employers

Although the Board looked at a multitude of reasons in finding a willful misclassification, it nonetheless held that misclassification simply due to deficient paystubs is enough to find an unfair labor practice. What other non-affirmative actions of an employer constitute misclassification may differ in each case, but for now, employers must ensure they are properly classifying employees and issuing legally compliant paystubs to their workers as required under Labor Code section 226. This

decision is also a huge reminder that the Board will take every inch of “authority” that it feels entitled to, including imposing penalties as punishment for unfair labor practices, which is a radical deviation from the Act, Board authority and years of Board precedent. Cinagro has announced that it will be appealing the imposition of civil penalties under Labor Code section 226.8 as the Board lacks authority to impose such penalties, which are punitive rather than remedial or compensatory. WG will keep you posted on the outcome of the appeal on this issue.

 

The goal of this article is to provide employers with current labor and employment law information. The contents should neither be interpreted as, nor construed as legal advice or opinion. The reader should consult with Barsamian & Moody at (559) 248-2360 for individual responses to questions or concerns regarding any given situation.

 

 

President’s Notes: Economics Always Wins

September 19th, 2022

Rhetoric is powerful. Repeated often enough, rhetoric has the power to shape the public consciousness and, in turn, public policy.

A recent policy proposal by House Agriculture Committee Chairman Rep. David Scott, a Democrat from Georgia, illustrates a trend in rhetoric that’s been bothering me for some time.

Entitled the Small Family Farmer and Rancher Relief Act, Chairman Scott’s bill includes subsidies for small farmers and ranchers and targets the loss of small producers in the cattle industry.

With the introduction of this bill, Chairman Scott adds his voice to a growing chorus of policymakers advocating for additional fundingand resources for small-scale farming operations.

A quick search of USDA’s website pulls up nearly two dozen programs and funding opportunities specifically designed for small- and mid-sized producers. And frequently, you’ll hear U.S. Agriculture Secretary Tom Vilsack announce actions USDA is taking “to ensure that all can benefit from our programs and services.”

To be clear: Vilsack is right to ensure that USDA services are accessible to all. Smaller operations often lack the internal staff and resources that larger operations must have. And on a much deeper level, the ugly history of discrimination that denied Black farmers from accessing USDA programs is finally being acknowledged and steps are being taken by Vilsack to try to right those wrongs.

Western Growers is rooted in family farmers.
We represent growers of all sizes, from small, beginning farmers to large, multi-generational, multi-national businesses. Indeed, many of our association services are geared toward small- and mid-sized operations that do not have the resources to bring such activities in-house.

But as policymakers promote actions they undertake to help small farming operations, there is a subtle implication that large farming companies are inherently “bad,” or undeserving of consideration in public policy. This is misguided.

Larger farming enterprises are the economic engines of rural communities across the country. Often, big agricultural operations suffer the same challenges facing their smaller counterparts, and the economic fallout of their potential failure is exponentially greater; many smaller agricultural companies depend on partners with greater scale and capability. Their fates are interconnected.

In California, the food and agriculture industry is responsible for 2.8 million jobs and $370 billion in direct economic output, much larger than the $50 billion farm gate value that is typically used to quantify the size of our industry.

None of this accounts for the fact that California produces one-fifth of the nation’s food supply, including more than 60 percent of all fruits, vegetables and tree nuts. That type of food security is priceless.

During the global financial crisis in 2007 and 2008, we heard Wall Street and Washington insiders elevate the phrase “Too big to fail” in defense of massive taxpayer bailouts for banks and investment firms. What would happen to our local economies and domestic food supply if we were to allow “Big Ag” to collapse?

Between a burdensome regulatory system and policies designed to make farming more difficult, that is precisely what it seems California intends.

This seems counterintuitive, especially in California, which is home to massive global companies like Apple, Alphabet, Disney, Meta and Visa. Here in California, we celebrate growth and success in some industry sectors, but not others.

The luster of the Golden State is wearing thin. Since 2018, 265 companies have left California for other states, with more than 40 percent splitting for Texas—including the recent high profile move of Tesla’s corporate leadership.

One of my favorite sayings is: “Economics always wins.” Regardless of political ideology, whenever policymakers (or voters, as is the case in California) attempt to reshape the economy by force of political will, whether through higher taxes, imposition of costly regulatory mandates and rules and other grand public policy designs, the laws of economics always respond in kind.

As one example, the agricultural overtime law passed in 2016 has now been fully implemented, and instead of agricultural workers earning more take home pay, many are receiving fewer hours and have seen their earnings potential decline dramatically.

Such are the unintended consequences when the government chooses winners and losers. It never goes as they intended; the laws of economics always interfere.

Even though California farmers cannot physically pick up their dirt and move it, many have already scaled back production here or elected to expand elsewhere—or a combination of both.

It is time to change the rhetoric around Big Ag. Big is not bad. In fact, being big is proof of the very qualities our political class celebrates when it happens in Silicon Valley. We achieve economies of scale to remain competitive in a global marketplace while paying our workers well, adopting new technologies, investing in the sustainability of our farms and feeding a growing worldwide population. All while being one of the last industries still predominantly comprised of family-owned and operated businesses.

That’s worth celebrating and protecting. Even if our politicians and regulatory officials can’t bring themselves to confidently acknowledge that Big Ag is good, they should at least quietly accept the reality—as they contemplate yet another legislative mandate or regulatory scheme—that whatever they impose on companies, regardless of size, economics will always win.

 

The Data Corner: Data Standardization—A Tedious Necessity

September 19th, 2022

By Marlene Hanken, Data Analyst, Science

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

This issue’s topic is Data Standardization…and what is data standardization anyway? Simply put, data standardization is a set of processes and standards that allow data sets from various sources and formats to be conformed into a common format and source for analysis and interpretation—the foundation for collaboration.

For those familiar with spreadsheets, the concept requires taking two spreadsheets, composed of differing column headings, and unifying the data into a single spreadsheet while not having two or more fields containing redundant information. Let’s use the example of two different growers sharing commodity yields for the year. Perhaps both have a field containing the commodities and yield volumes, but one has planting information in the other columns and the other grower has harvest information in their columns. Does the resulting spreadsheet contain all columns from both (both planting and harvest info)? Or does the resulting spreadsheet only contain a subset of the two—namely the fields they have in common? This is a common decision made by data managers (the person or entity combining the spreadsheets) and is an important part of data standardization.

But why is data standardization so important? When data isn’t standardized, the resulting analytics are similar to the results of a blurry photo—obscured findings at best and completely incomprehensible analytics at worst. A common example of this would be the naming of commodities—each operation can potentially record the same commodity similarly, but if not identical—character for character—a computer is unable to recognize that a commodity with even a leading or trailing space is the same as one without (e.g. “romaine lettuce” vs “ romaine lettuce” vs “romaine lettuce ”.) However, without a process to reconcile those three values to be identified as the same, the resulting analytics (for example a count of how many commodities are being reported) would return a count of three rather than one. Sound tedious? It is! That’s what makes data standardization and the attention of good data managers so important!

The previous example seems simple and straight forward, but let’s take another common example—one company reports a commodity as “romaine lettuce” and another “lettuce, romaine.” Both commodity names are valid—identifiable by other industry participants and even consumers, However, just like the first example, our count of commodities would currently indicate two when, in fact, they are the same and should only be represented as one commodity. So, which one does a data manager use? Herein lies the first obstacle in data standardization—the normalization or standardization of values can be difficult to address nomenclature (in our spreadsheet example it would be what is typed in a particular cell). Does the first commodity name submitted get used? Does the data manager work with both parties to see if they can agree to use one versus the other? Does the data manager just pick one or completely introduce a new name that is neither of those options and simply inform the data providers? All these options, along with other solutions, have been employed by data managers. These solutions become increasingly difficult to implement when the number of participants (and their variant submitted values) increases…what does a data manager do with over a dozen differing values meaning to represent “romaine lettuce”?

Most recently, the Western Growers’ Science team has encountered this type of data standardization issue in our Food Safety Data Sharing Project. This project features the GreenLinkTM platform—a web-based tool developed by Western Growers and powered by statistics and analytical company Creme Global. Through GreenLinkTM, WG member operations that grow, harvest, process, and ship a variety of commodities are sharing their data with Western Growers. GreenLinkTM allows a participant to visualize data from his or her individual operation as well as view anonymized aggregated data from all participants. With data from over 100 growers on multiple commodities across the production chain, data standardization is an important area of focus within GreenLinkTM.

To tackle the task, Western Growers assembled the Data Standardization Working Group. The group is comprised of academic subject matter experts, Creme Global data scientists, Western Growers’ Science team, and others interested in data standardization. The objective of the working group is to assess challenges and opportunities and coordinate efforts around data standardization in the fresh produce industry. With standardized data, powerful and accurate analytics are possible, paving the way to a brighter future for Western Growers’ members so they can continue to do what they do best…growing the best medicine in the world.

Want to share your experiences with data standardization or have a data topic you want us to address in the next issue of The Data Corner? Email us at [email protected] today!

Death of PAGA Claims Greatly Exaggerated

September 19th, 2022

When the U.S. Supreme Court ruled in June that the Federal Arbitration Act supersedes California’s Private Attorneys General Act (PAGA), at least in part, employers and their attorneys rejoiced.

In a nutshell, the Supreme Court ruled in Viking River Cruises, Inc. v. Moriana that employees, who are subject to an arbitration agreement, can be compelled to arbitrate their PAGA claims on an individual basis. The arbitration of an employee’s individual claims, in turn, will deprive that employee of standing to bring a representative claim under PAGA. By an 8-1 vote, the U.S. Supreme Court held that the FAA preempts the California Supreme Court ruling in Iskanian v. CLS Transportation that had invalidated the division of PAGA actions into individual and non-individual claims.

The ruling seemed to put a damper on class action lawsuits for wage and hour errors, as well as other California Labor Code violations. “And for the time being it has,” said Ana C. Toledo, an attorney with the Salinas, Calif., law firm of Noland, Hamerly, Etienne & Hoss. “For the last three months, there have been no new class action suits, at least not in the Salinas area.”

But Toledo said in its ruling, the U.S. Supreme Court effectively laid out a blueprint as to how California can change its law to follow the latest decision and still allow class action PAGA claims. “We know there is a lot of energy around changing the law to be in compliance,” Toledo said.

Western Growers Senior Vice President & General Counsel Jason Resnick reported that before the Supreme Court issued its decision in the Viking River Cruises case “we hoped it would signal the death knell for PAGA. But it is not going to give the relief employers hoped for.”

The decision, he said, was written in a manner that will give the California Legislature and California courts the ability to lessen its impact via legislation and carefully worded decisions. “Our best hope is the passage of a ballot measure in 2024 that will repeal the California Private Attorneys General Act,” Resnick said.

In July, California’s Secretary of State announced that the ballot measure did qualify for the 2024 ballot. Resnick said business interests need to get involved and fund the campaign. The effort to qualify the proposition for the ballot was largely funded by California New Car Dealers Association and Western Growers and its members. “In qualifying the initiative, Western Growers punched above its weight,” he said. “We’ve got to build a larger coalition for the election fight. It’s going to be an expensive campaign.”

But he believes it is a well-written proposition with a good chance to pass. “It was written to benefit employees and employers. It balances the interests of both groups, which is absolutely necessary if it is to pass.”

In the meantime, Resnick advised employers to take a good look at their employee arbitration agreements to make sure they are in sync with the U.S. Supreme Court’s Viking River decision. He said that decision will offer some respite, at least until the California Supreme Court rules on the PAGA collective-action standing issue, which the state high court is poised to do soon in Adolph v. Uber Technologies, Inc. among other cases.

Toledo agreed that companies should clearly sharpen their pencils regarding arbitration rules, but she added that they should also tighten their procedures on Labor Code violations. “We continue to see a steady stream of wage and hour cases. Some of them are class action cases with a PAGA claim and others are just individual PAGA claims.”

She said these types of cases typically deal with the core issues such as meal breaks, rest periods and business expense reimbursements. Concerning the breaks, the California Labor Code is specific as to when these breaks must be granted.  “If you are consistently starting the meal break late every day, it is very difficult to argue that’s unintentional.”

Toledo said there is usually a disconnect between the company’s leadership and what’s happening in the field. “The violations can be caused by a new supervisor, a new foreman, the payroll clerk…any number of things. But you need to double check and triple check. It’s never redundant to go back to the basics.”

She noted that when companies are in violation and forced to settle, it’s an expensive lesson. “The cost can range from several hundred thousand dollars to more than $1 million,” she said. “These are never a $50,000 problem.”

Nonetheless, she often sees companies falling into the same pattern of violations several years later as crew leads change or new accounting practices take hold.

Resnick agreed, noting that companies cannot become complacent after settling such a claim. “There is a tendency to think that now it is someone else’s turn to get hit. But we see these plaintiff attorneys going back to the same employers time and time again.”

Toledo said it is a good business model for a plaintiff’s attorney. “You have to be vigilant,” she said. “I had a case last year where it was a simple change in payroll codes that caused a major problem. You just have to triple check.”

It is this area of labor law that both attorneys said is the number one issue in production agriculture. Toledo said unionizing activity is almost non-existent and she couldn’t think of any other ag legal issue that has been especially noteworthy in the past year.

Resnick did say that H-2A activity—securing temporary foreign agricultural workers through applications with the U.S. Department of Labor—continues to increase the workload of WG’s legal department as well as that of other attorneys specializing in the practice. “More and more employers are relying on H-2A to bring in workers as labor shortages worsen,” he said. “Western Growers has been providing H-2A services for the past 17 years and it is getting easier every year as we have a proven process for a timely approval.”

He added that Western Growers is well-versed on the obligations, assurances and guarantees that an applicant must adhere to avoid problems. Resnick remains cautiously hopeful that the bipartisan Farm Workforce Modernization Act that passed the House last year can gain traction in the Senate before the current term ends. “It would create a pathway for foreign farmworkers to obtain legal status for year-round work and provide much needed wage relief, including a freeze on the adverse wage rate, but it’s a longshot that the bill will get out of the Senate.”

Another attorney weighing in on labor issues was Jonathan Siegel of Jackson Lewis P.C., Irvine, Calif. Siegel agreed that at least in the ag space union organizing has not been very active, but he believes that will change. He explained that union organizers learned a valuable lesson as they attempted to unionize Starbucks’s workers. “I believe about 260 petitions for elections have been filed all across the country,” he said. “The organizing drive focuses on social media…using TikTok to push out the message.”

Siegel said there were only about 20 organizers working on this campaign and they have achieved tremendous success using sophisticated tactics, including smart phone technology, to reach workers. He expects the same tactic to be used by other organizers and noted that it seems to be tailor-made for organizing in small towns and out-of-the-way places.

“Being located in a rural area, and especially on a farm, used to be an advantage for employers as it was logistically more difficult for an organizer to connect with the workers,” Siegel said, adding that the use of a smart phone and advanced software can mitigate that disadvantage, and offer a low cost way to organize.

He said there has been an uptick in organizing campaigns under the purview of the National Labor Relations Board and he anticipates the same thing happening under California’s Agricultural Labor Relations Board.

Siegel said many ag employers—such as food processing plants and distribution facilities—are governed by the NLRB while California’s on-farm employers fall under the ALRB. “In both organizing situations, we expect to see union organizers switch their tactics and use smart phones to reach workers. Basically, every worker has a smart phone and employers are already using that technology to connect with those workers.”

The labor attorney advises employers to be cognizant of their employees’ emotional and financial needs. “Now more than ever, employers should train their management teams to manage with empathy,” he said, opining that there is still a lot of emotion and stress in the workplace surrounding the pandemic.

Siegel said there are several areas in which employers should make sure they are responsive to the needs of their work force. “Inflation has hit everyone,” he said. “Employers have to be proactive with wage inflation. Employers should also recalculate their recognition and retention programs. Some of those programs have dollar signs, but some don’t. You have to understand your employees and what they are looking for.”

 

 

The Steady Demand for Telehealth

September 19th, 2022

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

The pandemic has changed the way employees view and access health care, specifically when it comes to telehealth. Although telehealth services have been available for quite some time, they have proven incredibly convenient as a substitute for office visits for those wanting to avoid unnecessary travel during uncertain times.

Telehealth has surged since the start of the pandemic, with an estimated 83.9 percent of patients using virtual health care visits for the first time, according to the International Data Corporation (IDC). A recent report by Fair Health found that the percentage of national telehealth claims rose 4,347 percent when compared to all medical services between March 2019 and March 2021. And while it is logical to expect telehealth utilization to ease up as the pandemic continues to subside, it still remained much higher than before the pandemic began. In December 2021, Fair Health found that national telehealth claims comprised 4.9 percent of all medical claim lines, compared with just 0.2 percent in December 2019.

Surprisingly, telehealth options have been widely adopted by the senior population as well. The U.S. Department of Health and Human Services had the Office of the Inspector General (OIG) conduct a review of Medicare fee-for-service and Medicare Advantage telehealth claims. It found that more than 28 million Medicare beneficiaries used telehealth during the first year of the pandemic, representing more than two in five of these beneficiaries.

Beyond the pandemic, there are a variety of reasons why patients prefer telehealth and are using it more frequently, including difficulty in securing transportation and economic constraints. As more patients discover the convenience and benefits of telehealth, we can expect the popularity of virtual health care to continue to rise.

 

Telehealth as a Cost-Saving Solution

Telehealth services can be extremely cost effective for both employers and employees. The Western Growers Family of Companies exists to ensure the viability and success of its members in the ag community, which is why we encourage our members to make use of virtual health care.

The ag community benefits from telehealth in several ways:

•   A patient can engage with a doctor from any location within minutes.

•   Telemedicine reduces barriers to care for workers or family members who may live in rural settings, live far away from specialists or have transportation or mobility issues (e.g., older adults or those with limited mobility).

•   Telehealth services are bilingual, offering the option of Spanish-speaking providers.

•   Patients have peace of mind knowing that a board-certified doctor is only a phone call away, especially if an employee or a covered family member doesn’t have immediate transportation.

•   Telehealth can also improve the health care system and helps hospitals and waiting rooms from becoming too crowded.

 

It’s important to help employees better understand how to use the program and remind them it is available year round. Here are several ways employers can help boost participation in the program:

•   Provide a telehealth welcome kit to employees. Include FAQs that address employees’ concerns of the quality of the doctors, confidentiality, technical issues that can arise and the types of issues telemedicine can treat.

•   Provide tutorials that walk employees through the process.

•   Communicate the availability of your telemedicine program through employee newsletters, shared drives, and posters in break rooms.

If you currently don’t offer a telemedicine service to your employees or have health insurance through WGAT (telemedicine is included in every plan), now may be the time to take a closer look. If you don’t have a WGAT plan, you can contact Western Growers Insurance Services for more information and see how we can help you manage your health care costs more effectively. You can reach a sales team member at (800) 333-4WGA.

 

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

 

California and Sustainable Pest Management

September 19th, 2022

I pondered this article as I was putting out ant bait stations in my yard to help control an impending invasion of our home. Thankfully, the stations worked perfectly, and the “emergency” was avoided.

This got me to thinking more about the future of crop protection in California and what specific challenges lie ahead for the agricultural industry. While protecting my home from ants is important, it’s a minor triviality to the multi-billion dollar agricultural industry that must be protected on a daily basis from a multitude of known and unknown pests and diseases. Social and environmental activists would like consumers and public officials to believe that these materials are applied in an indifferent (at best) or haphazard (at worse) manner.

They are creating a true injustice!

Crop protection tools are actually applied as part of a well-choreographed scientific process. Growers make these applications in conjunction with highly trained pest control advisors and only apply when and where needed. They adhere to strict label restrictions as determined by both federal and California laws.

The key foundation of this overall process is “integrated pest management (IPM).” This term dates back to the 1970s and refers to a process that identifies the disease and pest that needs to be controlled, and then determines the most environmentally friendly and economical method that will offer the best control. IPM is not an “old” concept that is out-of-step with the times. On the contrary, the scientific principle is at the heart of IPM and thus naturally evolves with updated science and processes. Unfortunately, over the past several years California has begun discounting IPM. Chlorpyrifos was unceremoniously deregistered, and several crop protection tools are currently being targeted by community groups over unfounded fears of their overuse.

The State of California is considering the addition of a new term to the pesticide lexicon, “sustainable pest management (SPM).” Although similar in some ways to IPM, SPM has an added focus that crop protection strategies and tools should be socially equitable and just. What exactly does that mean? It’s not clear and there lies the concern. Those practices that are deemed socially equitable one year may not be so popular the next season.

The role of science also appears to lose its priority in the SPM paradigm. Science essentially would be placed on an equal footing as social and environmental justice. This is very concerning because science should matter just as it does in the medical and aerospace fields. Science should not be subservient to the crop protection application matrix. Secondarily, a tool should not be rejected on the basis that some group believes or thinks it is not socially just. That is simply too subjective of a standard.

Growers need to have a robust set of crop protection tools in their toolbox. This is true for both conventional and organic crops. Our food supply needs to be robust. Our state and national food security is a real concern, and we should be careful not to create a crop protection hierarchy that puts unnecessary and unrealistic roadblocks on food production. Agriculture is already facing headwinds from factors like drought, inflation and California’s drive to be a carbon neutral economy. This is simply not the time to hoist additional challenges onto our agricultural industry.

Sense of Purpose Drives Arizona State Senator Sine Kerr

September 19th, 2022

Editor’s Note: Sine Kerr is a member of the Arizona State Senate, representing District 13, which covers northwest Maricopa County and northern Yuma County. She assumed office on Jan. 8, 2018. Her current term ends on Jan. 9, 2023. She is running unopposed for reelection in November.

Arizona State Sen. Sine Kerr (R-13) did not grow up in a politically charged environment and did not have a burning desire to become an Arizona legislator. Instead, it was her love for agriculture and her firm belief that the political arena needed more people from ag at the table when laws and regulations are being written that was the impetus for the political career.

Kerr moved to Buckeye, Ariz., when she was three years old. It is where she was raised, went to school, met her husband, started the family dairy farm, raised her children and it is also the area she has represented in the Arizona State Senate since 2018.

It was 1980, she explained, when she and Bill Kerr launched Bill Kerr Dairy Farm. Bill’s father was a dairyman and he helped each of his three sons launch their own operations. “We started with 15 cows and slowly began building our farm throughout the years,” said Kerr.

She noted that the couple engaged with the Farm Bureau and joined the local Dairymen’s Association as a way of keeping in touch with others in agriculture. “These groups advocated for us and kept us in business,” she said.

Both she and Bill got involved in the leadership of these groups and the advocacy work being done by these associations. “I learned to love the policy aspect of it,” she said. “I dug in, studied the issues, and focused on how these issues affected us in agriculture. I developed a passion for it.”

That passion led her into the political arena to meet with elected officials and articulate the needs of the ag community. It wasn’t long before Kerr was being asked by some of her dairy colleagues to run for office. In 2018, she was appointed to complete the term of a representative who resigned to seek higher office. She then won a full term in November of that year and was reelected in 2020. Sen. Kerr is running for re-election this November with no opponent.

She sees her mission as both helping the ag industry with beneficial legislation as well as stopping legislation that can do harm. “That’s just as important,” she said.

Kerr is not the only legislator with an agricultural background, but she notes she is one of only three Arizona legislators from production agriculture.

Recently, the water issue has been Kerr’s main focus. She was one of the champions of a recently passed bill that allocates $1 billion of state money to work on both long and short term projects to increase the arid state’s water supply. The State Senator is very proud of the work the Legislature did on Senate Bill 1740, on which she was the sponsor. She notes that instead of creating a new bureaucracy, the Water Infrastructure Finance Authority of Arizona was expanded and reworked to allow it to oversee and manage this effort.

Kerr explained that the bill has two main components: one is to explore the options of securing new water from outside the state’s boundaries. The other is to fund state projects, especially in rural areas, that are designed to more efficiently use the water that the state already has at hand.

For the most part, the out-of-state projects are ambitious and are focused on long range solutions, while the in-state projects are expected to have payoffs in the short term designed to more efficiently utilize the state’s water.

On the long-term list are such projects as harvesting the flood waters of the Mississippi or Missouri rivers, building a desalination facility in Mexico or elsewhere, and looking at other types of technology that may have some utilization. “I like to think nothing is off the table,” said Kerr.

The in-state projects would be smaller in nature and are more focused on the immediate future. The projects on this list include new or updated water treatment facilities, improved rain harvesting and new paths to recharge aquifers.

While Arizona is often on the top or near the top of any discussion list about states with acute water needs, Kerr reminded that the state is large with many micro-climates and the need for different projects in different areas. “My husband and I actually farm in a waterlogged area,” she said, explaining that the Gila River has a very high water table resulting in the need to drain some fields.

Though this funding bill took a great deal of Sen. Kerr’s time this past year, she doesn’t think the issue is solved. “I do think there will always be water bills for us to discuss. This next session (2023), I think we might need some legislative fixes for SB 1740. I suspect there will be some hiccups we have to address.”

Of course, Kerr has other legislative interests, but she reiterated that water is clearly at the top of her list for the time being. She did note that she will term out of the State Senate after her next term expires. She does not yet have an expressed interest in another office but noted that the need for ag-minded and ag-influenced officials is ongoing. “I always encourage my ag colleagues to consider running for office,” she said.

Her other passions include family and children’s issues, caring for and serving our veterans (five consecutive generations in her family have served in the military), and education issues.

 

Crisis on the Colorado

September 19th, 2022

By Dennis Nuxoll, Gail Delihant and Robert Medler

Farmers throughout the West know it is dry this year and water supplies are sparse. Scientists who study such things tell us that the West is suffering through its most severe drought in more than 1,000 years. The Colorado River Basin, with its two historic dams, is not immune to this situation. Indeed, both Lake Powell and Lake Mead are at critical junctures. Both reservoirs are near “deadpool” status—the point at which water can’t flow downstream. If both dams go below deadpool, not only will there be no water flowing downstream but electricity generation will cease, which will mean many parts of the West will return to the days of candlelight.

In Senate testimony during June, Camille Touton, the Commissioner of the U.S. Bureau of Reclamation, highlighted just how dire the situation is for the region. She noted the severity of the drought and indicated immediate action was needed, saying that existing plans were not adequate to meet the challenges of the problem. During her testimony, the Commissioner reported that all Colorado River Basin states had been told to draw up voluntary plans to contribute toward conserving 2-4 million-acre feet of water to prevent the two reservoirs from hitting deadpool. Touton told the states she wanted agreements by mid-August or the federal government would step in.

Upon hearing this dramatic and unusual public push by the Bureau, Western Growers federal and state affairs teams engaged by contacting all our members who farm in the Colorado River Basin who are connected with water districts and have technical expertise on the topic. We needed to understand what plans were being contemplated and the challenges those plans might present, as well as what community impacts could arise in Arizona, California and Colorado. Since tension exists between the upper and lower basin, as well as between California and Arizona irrigation districts, WG staff has been focused on working with our members to form a unified position that we can push forward to state and federal authorities.

After tribes, farmers often have the oldest water rights in the West because they were among the first settlers to come to the area, occupy it and claim their water rights. This was long before cities developed or ski resorts and golf courses were built. In fact, agriculture has rights to, and uses, more than half the water in the Colorado River Basin. As such, it is clear agriculture water cuts would be seen as a primary vehicle to achieve cuts of the magnitude that the Bureau laid out. Farmers are being seen as the primary source for cuts, and our ag community wants to be compensated for water rights not used. Lost farm revenue, changes to the environment, including the Salton Sea, and the impact on communities if agriculture’s footprint shrinks continue to be part of the conversation.

After engaging across the Lower Basin, WG staff quickly realized that additional resources were going to be needed to address all these concerns. Western Growers reached out to our agricultural and water allies to push for more federal funds to address the immediate crisis. Western Growers worked with these same groups to secure money for Western water in the bipartisan infrastructure bill that President Joe Biden signed last November. The $8 billion in funding that was secured in that bill was designed to finance projects in the medium- and long-term, not to help in this more immediate crisis.

Fortunately for us, Arizona Sen. Kyrsten Sinema is from one of the most impacted states and is engaged on this issue. Sen. Sinema was able to work with other U.S. senators from Basin states, including fellow Arizonan Mark Kelly and Colorado’s Michael Bennet, to secure an additional $4 billion in funds to help with this immediate crisis. Will those funds solve all problems? No, but they are a critical element for the near-term. State governments also need to step forward to provide funding for short, medium and long-term needs.

Coordination within Arizona, especially among Colorado River communities, was quick to occur following Commissioner Touton’s comments. WG has engaged heavily with Yuma County growers and irrigation districts, the Arizona Department of Water Resources and the Central Arizona Project. Working collaboratively, staff identified an outside agency to help the growing coalition in the Lower Basin to communicate the substantial economic harm water cuts will have to communities, as well as the need for fair compensation.

WG’s California staff has met with administration officials responsible for overseeing the Colorado River Basin and Salton Sea, as well as legislators and water agencies several times. There is universal understanding of the severity of the situation and the need to protect agriculture and communities, and to mitigate problems at the Salton Sea as less water flows into it.

Your Western Growers teams at the state and federal level view the effort to secure water in the face of ongoing drought as one of our most important priorities and we will continue to push at the state and federal levels.

 

Bee Sweet Citrus Continues to Thrive

September 19th, 2022

Bee Sweet Citrus President Jim Marderosian first opened the doors of the company in 1987 as an independent packer and shipper of California oranges. As time progressed and consumer needs shifted, the citrus line expanded to include approximately 10 different varieties.

Now a successful year-round operation, Bee Sweet ships throughout the United States, Canada, Europe, Australia, New Zealand and several Pacific Rim countries, including Japan. “We offer customers a 12-month citrus program and still offer personal customer service and a heartfelt commitment to each of our growers and buyers,” said Monique Bienvenue, Director of Communications & Compliance.

Bee Sweet Citrus has experienced steady growth during its 35 years in operation and is particularly proud of a handful of accomplishments realized over the last half-dozen years or so. A few recent highlights include:

2015: Bee Sweet Citrus donates $1 million to Valley Children’s Pediatric Center in Fowler, Calif.

2015: Bee Sweet Citrus installs solar panels on its packing facility to offset its use of electricity

2017: Bee Sweet Citrus begins to utilize an innovative automatic palletization system

2019: Bee Sweet Citrus donates a state-of-the-art pack line to the students of California State University, Fresno

2020: Bee Sweet Citrus builds a new wash line in Nipomo, Calif.

2021: Bee Sweet Citrus revamps its label to reflect a new, modernized brand

2022: Bee Sweet Citrus begins construction on a new, state-of-the-art mandarin facility.

“When Bee Sweet Citrus first opened its doors, we only worked with oranges. As citrus became more of a household staple for many families, however, we expanded our citrus line to include lemons, mandarins and specialty citrus varieties during California’s citrus domestic season,” said Bienvenue. “Now, we offer our customers a 12-month citrus program to meet the needs of families year-round, and supplement our citrus line with Chilean product during the summer months when domestic fruit is unavailable or scarce.”

As a family owned and operated company, Bee Sweet sees its value proposition as understanding how important it is to provide families with fresh citrus year-round. “Our employees work hard to make sure that every piece of fruit that leaves our facility not only meets, but exceeds, our expectations in taste and quality, and customer service remains top priority for our team,” she said.

Bee Sweet also touts its one-stop shop as a major selling point. “All our customers can also conveniently pick up our varieties at one central location off California Highway 99 and can rely on our sales team for timely information regarding field and shipping updates,” Bienvenue reported.

She noted that one of the company’s newest initiatives is the recent revamping of its label to give it a more modernized feel. With decorative citrus slices displayed on the packaging of each variety and a dashed lined that draws the eye to the company logo, the label was strategically designed to educate shoppers about the varieties in each package, and to remind customers about Bee Sweet’s ability to grow, pack and ship numerous varieties year-round.

Another initiative is the expansion of the packing facility in Fowler, to include a state-of-the-art mandarin line. At more than 200,000 square feet, this new facility will include best-in-class pre-sort and pack lines, cold storage and a shipping dock.

As Bee Sweet looks down the road, the company expects the California citrus crop to maintain its current role in the industry with mandarins continuing to gain sales. “While we don’t anticipate too much changing, we do believe that the mandarin variety will continue to grow as a class, domestically,” Bienvenue said. “Over the last few years, the popularity of mandarins has skyrocketed, and we anticipate that trend to continue as parents continue to invest in the health of their families.”

Of course, like other California farmers, Bee Sweet must contend with several challenges, but the citrus producer does so with a sense that the glass is half full. “Finding skilled, experienced labor remains a challenge, as well as adhering to constant changes to laws and regulations,” she said. “Nonetheless, we always adapt and remain optimistic for the future.”

As a member of Western Growers for much of those three-plus decades, Bee Sweet appreciates the organization’s commitment to agriculture. “Western Growers is a premier industry organization, and we are proud to be a member,” Bienvenue said. “The amount of professional resources that are available for members is outstanding, and we utilize many of them regularly.”

 

What’s Trending: Why Ag Stories Can Still Make an Impact During a Contentious News Cycle

September 19th, 2022

We’ve all been guilty of it, especially during the last six months: Doomscrolling.

With a near-constant grind of weighty, difficult news stories available 24-7 on your nearest screen, it’s easy to zone out as the grim parade of current events passes in front of us: politics, economic upheaval, pandemics, natural disasters and war.

With all this competition for eyeballs, how can we break through the doom and gloom to tell ag’s story in a way that resonates?

It may be easier than you think, and it comes down to an irrefutable fact that I tell many of WG’s members when I talk to them about doing interviews with the media.

People gotta eat.

All those attention-grabbing, stomach-sinking headlines happen in the background of this simple human truth. And because of that, there is still a rich opportunity to tell our story to a wide audience. In fact, during the first six months of 2022, news and interviews about Western Growers and its membership reached a potential audience of more than 5.4 billion. That’s more than three times the potential audience we reached during the last six months of 2021.

Among the pieces that recently have resonated:

•   A May 2022 New York Times article on immigration and the labor shortage featured WG members Sabor Farms, Turlock Fruit Company, WG President & CEO Dave Puglia, WG VP of Innovation Walt Duflock and the Western Growers Center for Innovation & Technology’s Global Harvest Automation Report. It was printed on the front page of the paper’s business section as well as appearing online.

•   An April 2022 Associated Press article entitled “Russian war worsens fertilizer crunch, risking food supplies” included an interview with and photographs of WG member Will Terry of Terry Farms. The AP is a global news and photography wire service, which means the article and accompanying photos were used by hundreds of outlets digitally, on TV and in print around the world.

•   A segment released in May 2022 to CNN’s global syndicate—so not just available to CNN in the U.S., but also its affiliated stations in more than 200 countries—delved into the stories of women in agriculture and featured interviews with WG Members Heather Mulholland of Mulholland Citrus and Alexandra Allen of Main Street Produce.

So that’s it, right? Slam dunk! Everybody knows about ag! We’re done! It’s wine o’clock!

Well, not quite. Because as much as we play offense in getting our story out there, there are times when we need to play defense.

There is still an immense amount of misinformation in the digital sphere about agriculture, food safety and our supply chain. Those 5 billion eyeballs that we reached in the first six months of 2022 are surpassed by an army of what I like to call “zombie facts”—unchecked citations about food and agriculture that unquestioningly get passed along.

I don’t think this is done maliciously—if it was, I probably wouldn’t be able to get out of bed in the morning to do my job—but it is the result of an underinformed, harried base of reporters, editors and news producers. We need to use the media as wisely—and as frequently—as possible to educate and set the record straight in front of as big of an audience as we can get.

Because, as we well know, people gotta eat. The interest in our story is inherently there. Our job now is to make sure people understand beyond a doubt where that food comes from. 

Annual Meeting Preview: S2G Ventures Teams with WG for Fifth AgSharks® Competition

September 19th, 2022

There is competition, and then there is competition with a quarter of a million dollars on the line in front of a live audience filled with people hanging on your every word.

We’re referring, of course, to the AgSharks® Competition, which will return to the 2022 Western Growers Annual Meeting. This year’s Annual Meeting will be held at the Venetian Resort Las Vegas from Nov. 2-5, 2022.

It’s the fifth year of the successful—and exciting!—AgSharks partnership between WG and S2G Ventures, the direct investment arm of Builders Vision, a platform that partners with entrepreneurs who seek solutions to the world’s challenges in the food, agriculture, oceans and clean energy markets.

“AgSharks leads as the only pitch competition that offers agtech startups an audience with the biggest agricultural companies across the globe,” said Audre Kapacinskas, Principal at S2G Ventures. “The combination of exclusive access to hundreds of industry leaders, plus investment capital to fuel growth, are two elements that are crucial for a startup’s success in this industry.”

AgSharks was first held in 2017, and through the competition, past winners Hazel Technologies and Burro have since brought their products from development to market.

Hazel Technologies has raised about $88 million in funding over six rounds and is advancing the industry with sachets that extend the shelf life of fresh produce by as much as three times.

Burro raised a $10.9 million Series A round in September 2021 led by S2G Ventures and Toyota Ventures and continues to help solve farmers’ labor woes with the expansion of its fleet of autonomous robots to farms across the west. The company’s 2018 AgSharks win came after also participating in the competition the prior year.

“We’ve been very persistent,” said CEO Charlie Andersen at the time his company won. “We pitched last year and didn’t win. Since then, we’ve assembled the world’s best team, found initial customers and have been through a whirlwind of progress. We believe that we are the best play in the world in which to deploy capital into agtech robotics, and I’m glad that we won the judges over this year.”

It’s a success story that very well could happen again in 2022. “With a proven track record of rewarding cutting-edge agtech innovators and enabling them to grow their businesses, we look forward to this year’s competitors engaging in a live, spirited back-and-forth with our members on how best to use technology to solve the most pressing needs of our industry,” said Western Growers President and CEO Dave Puglia. “With its real-world financial stakes for the start-ups and the potential long-term benefits for our members, the AgSharks Competition is one of the highlights of our Annual Meeting.”

During this year’s competition, three finalists will be able to pitch their innovations in front of a live audience of the world’s largest specialty crop growers, shippers and processors to potentially win a $250,000 minimum investment. A judging panel of growers and venture capitalists will make the final decision as to which of the finalists are eligible to receive the funding.

In addition to potential investment capital, the winner(s) will receive international recognition, mentoring from S2G and WG, potential access to farm acreage to pilot their technologies and access to WG’s expansive network of leading fresh produce companies.

The 96th Western Growers Annual Meeting in Las Vegas Will Hit the Jackpot with Networking, Education and Entertainment

September 19th, 2022

We can’t hold our cards too close to our vest anymore: You are invited to join the full house for the Western Growers Annual Meeting, which will be held at The Venetian Resort Las Vegas from Nov. 2-5, 2022.

(Fine, fine. We’ll stop with Vegas puns now.)

This will be the 96th WG Annual Meeting, and like every year before it, it provides an opportunity for our membership to gather for camaraderie and learning at the premiere event in Western agriculture. In 2022 the lineup of speakers, panels and social events is top-notch.

The event opens on Wednesday, Nov. 2, 2022, with all-day registration at The Venetian and a Welcome Reception that will start at 5:30 p.m. On Nov. 3, the Board of Directors will meet in the morning, and the PAC Lunch will begin at noon. The Western Growers Political Action Committee (PAC) provides strategic campaign support to elected officials and candidates. Proceeds from our annual PAC lunch help amplify our members’ voices in political contests across Arizona, California and elsewhere. Tickets to the PAC Lunch are $195 and available to purchase during online registration.

This year’s speaker is Karl Rove, the former Deputy Chief of Staff and Senior Advisor to President George W. Bush. Before the White House, he ran Rove + Co., a Texas-based public affairs firm that consulted on more than 75 GOP campaigns for Senator, Governor, Congress and statewide offices in 24 states. Rove writes a weekly op-ed for the Wall Street Journal, appears frequently on the Fox News Channel and is the author of the New York Times bestseller “Courage and Consequence.” His latest book is “The Triumph of William McKinley.”

In the afternoon of Thursday Nov. 3, the Annual Meeting will offer its first Featured Session: “When Family Farms Give Way to Outsiders.” This session will focus on the increasing number of family farmers who have decided to accept an offer from private equity investors. What factors are motivating multigenerational family farmers to seek the exits? What does the increasing presence of private equity newcomers mean for the culture and fabric of the Western produce industry and thousands of rural communities?

At 6:30 p.m. on Nov. 3, we’ll host the much-anticipated Party with the Partners—it’s always a rollicking good time, and for this year it will feature some special Vegas flair! “A Toast to the Rat Pack & Marilyn” takes the audience on a musical journey through the greatest hits of Frank Sinatra, Dean Martin, Sammy Davis Jr. and Marilyn Monroe. These legends will be brought to life by the performers as they sing their classics, including: “I Want to be Loved by You,” “Come Fly With Me,” “That’s Amore” and “The Candy Man.” You’ll experience the glitz and glamour of 1960s Las Vegas in this fun, energetic showcase of Rat Pack standards.

The next day kicks off with AgSharks®, one of the highlights of the Annual Meeting. Starting at 9:30 a.m., watch as three entrepreneurial finalists in the agtech sector vie for investment to help bring their technologies to market. During this year’s competition, three finalists will be able to pitch their innovations in front of a live audience of the world’s largest specialty crop growers, shippers and processors to potentially win a $250,000 minimum investment. A judging panel of growers and venture capitalists from WG partner S2G Ventures will make the final decision as to which of the finalists are eligible to receive the funding.

The Chair’s Luncheon and Keynote will take place on Friday, Nov. 4. The keynote will be delivered by Admiral William McRaven, a retired U.S. Navy Four-Star Admiral. He is a recognized national authority on U.S. foreign policy and has advised Presidents George W. Bush, Barack Obama, and other leaders on defense issues.

During his time in the military, McRaven commanded special operations forces at every level, eventually taking charge of the U.S. Special Operations Command. His career included combat during Desert Storm and both the Iraq and Afghanistan wars. He commanded the troops that captured Saddam Hussein and rescued Captain Richard Phillips. McRaven also is credited with developing the plan and leading the Osama bin Laden mission in 2011.

In addition, McRaven served as the Chancellor of the University of Texas System. McRaven oversaw 14 institutions that educated 220,000 students and employed 20,000 faculty and more than 80,000 health care professionals, researchers and staff.

He currently serves on the Council on Foreign Relations (CFR), the National Football Foundation and the Board of Directors of CoconoPhilips.

McRaven is the author of four books, including “SPEC OPS: Case Studies in Special Operations Warfare” and “Make Your Bed: Little Things That Can Change Your Life and Maybe the World,” based on his 2014 University of Texas Commencement Speech that received worldwide attention. His third book,
“Sea Stories: My Life in Special Operations,” released in 2019, is a remarkable memoir full of inspiring and action-packed stories from McRaven’s life in the special operations world. His most recent book, “The Hero Code: Lessons Learned from Lives Well Lived,” released in April 2021, is a tribute to the real, everyday heroes from battlefields to hospitals to college campuses, who are doing their part to save the world.

McRaven graduated from The University of Texas at Austin in 1977 with a degree in journalism and received his master’s degree from the Naval Postgraduate School in Monterey in 1991. He met his wife, Georgeann, while they were students at UT Austin, and they have three grown children.

After the keynote, the Annual Meeting will offer another Featured Session: “The Promises and Challenges of New Breeding Technologies.” This session will feature experts from the plant genetics industry, growers and retail/food service executives to assess the viability—economic, regulatory, and consumer/social—of cutting-edge breeding techniques. These technologies present opportunities in terms of enhanced flavors and eating experiences, as well as a potential solution to multiple challenges facing the produce industry, from pest and disease vulnerabilities to the need to enable automation and more.

The events of Nov. 4 will close with the Award of Honor Reception and Dinner honoring John C. Harris, the President and Chair of the Board, Harris Farms. The Award of Honor is Western Growers’ highest recognition of achievement and is given to individuals who have contributed extensively to the agricultural community.

With more than 50 years’ experience in ranching, farming, hospitality and thoroughbred horse racing, Harris embodies the diversity of California agribusiness. The Harris Farms Group includes Harris Fresh and the Harris Farms Thoroughbred Division, in addition to the landmark property known to all Californians on the I-5.

The Award of Honor will join numerous other significant awards Harris has received; in 1988 he was named Livestock Man of the Year by his peers in the ranching industry, and in 2014 he received the Agriculturalist of the Year award from the Fresno Chamber of Commerce. He received an honorary degree of Doctor of Science from the California State University at Fresno in 2019.

The Annual Meeting will close on Saturday, Nov. 5, with the traditional Western Growers Golf Tournament. This year’s event will take place at the Revere Golf Course, with registration and breakfast beginning at 7 a.m. There will be a Shotgun Start at 8 a.m., and the event will wrap up with awards and lunch at 12:30 p.m. Transportation to and from The Venetian will be provided.

Cash in your chips and join us today by registering at wgannualmeeting.com. (We had to get one more Las Vegas pun in here, sorry!) For more information about registration or to take advantage of sponsorship opportunities, please contact Assistant Vice President, Membership Kim Sherman at [email protected].

 

Western Growers’ 2022 Award of Honor Recipient Exemplifies the Best of California Agribusiness: Celebrating John Harris’ Golden State

September 19th, 2022

In “East of Eden,” Nobel Prize-winning writer John Steinbeck wrote the following: “And this I believe: that the free, exploring mind of the individual human is the most valuable thing in the world. And this I would fight for: the freedom of the mind to take any direction it wishes, undirected. And this I must fight against: any idea, religion, or government which limits or destroys the individual. This is what I am and what I am about.”

“East of Eden” is a sprawling multi-generational tale of agricultural families in California, a re-telling of Cain and Abel amid the fields in the Salinas Valley. The novel and the resulting film adaptation starring James Dean helped established California in American culture as a place of agricultural risk and reward, and the place where opportunity can exist for individuals who dare to choose their own path.

It is, of course, a work of fiction, and one that is frequently brutal and jarring. But its themes of resilience and ultimate faith in the Golden State’s opportunity create an easy throughline to agricultural icon John Harris, who has grasped the entirety of the state’s bounty and turned it into a thriving business legacy.

In November at the 96th Western Growers Annual Meeting, the association’s membership will honor Harris with the 2022 Award of Honor. The Award of Honor is Western Growers’ highest recognition of achievement and is given to individuals who have contributed extensively to the agricultural community.

With more than 50 years’ experience in ranching, farming, hospitality and thoroughbred horse racing, Harris embodies the diversity of California agribusiness. The Harris Farms Group includes Harris Fresh and the Harris Farms Thoroughbred Division, in addition to the landmark property known to all Californians on the I-5.

“Like his iconic Harris Ranch Inn & Restaurant, which stands as an oasis alongside a remote stretch of road, John is a pillar in California agriculture and the broader Western fresh produce industry,” said Western Growers President and CEO Dave Puglia. “It is safe to say that no one in this industry is more recognized and admired, and not just among his peers but also by community and political leaders throughout California. John’s vision can be seen in all his enterprises, from his ranching and farming businesses to his championship horse racing operations. Beyond his business endeavors, John is a powerful voice for farmers in Sacramento and Washington, D.C., and has dedicated his life’s work to the advancement of California agriculture and the rural communities our industry supports. John is most deserving of the Western Growers Award of Honor, and we are excited to present him with our highest recognition at our Annual Meeting in November.”

Managing the diversity of his business enterprises over the years required a nimble, methodical approach, according to Harris.

“I went into it with the idea that things were always going to be changing—and they were,” Harris said. “I didn’t have any false illusions that it was going to be an easy deal. Then again, I wasn’t really afraid of any problem, because I started with the idea that any problem would be solvable.”

Harris was born to a farm family whose operations in California extend back more than a century. He graduated with a degree in agricultural production from the University of California, Davis and then served two years in the U.S. Army.

“I was proud to have gone to a good university at Davis and expanded my knowledge there,” Harris said. “And I was in the Army for a couple of years as a commander of a Nike Hercules site and that gave me some leadership experience that was memorable.”

During his tenure as CEO and sole shareholder of Harris Farms and his 11 years on the Western Growers Board of Directors, Harris certainly experienced a saga of upheavals and changes in rural life and the agriculture industry.

“It’s sort of evolved, this area of farming,” Harris said. “Most people were diversified, to some extent, because they had water wells they needed to keep operating….well, we can’t do that anymore. Now we’re trying to diversify because you’re trying to hit all the highs and avoid the lows.”

But farming and ranching and hospitality aren’t Harris’ only endeavors that have brought him acclaim. In addition, Harris served five terms as president of the California Thoroughbred Breeders Association, and in the summer you can find him by the ocean—not as your stereotypical retiree, but watching his prospects at the Del Mar Thoroughbred Club just north of San Diego.

“I got into it, I guess, because my father was into it,” Harris said. “The whole scene, it kind of grabs you. I like it for the same reason I like farming: I like the people and the variety and the challenge.”

The Harris Farms Thoroughbred Division produced California Chrome, the winner of the 2014 Kentucky Derby and Preakness Stakes.

“I’ve been involved with John not only in horses, but in many agricultural enterprises,” said Don Valpredo, President of Donald Valpredo Farming and horse racing legend. “He’s a tireless worker—he uncovers every stone…he’s about as involved and as fair in everything that he does as anyone I’ve ever been involved with.”

Valpredo continued: “I read some place the other day about a person who is as successful as Mr. Harris. ‘If you see a turtle sitting on a fence, he didn’t get there alone.’ Right? And John has always employed very good people and partnered with very good people.”

It is a point of pride for Harris. “One of the things we do that is kind of unique is that we have a larger year-round workforce because we have a variety of crops,” he said. “I like to use people who have been here a long time because they have a good job and stability, and we like to capitalize on that.”

And this innate sense of team building has paid off not only in the success of Harris’ enterprises, but with the regard he is held in by the agricultural community. “I was very flattered to be recognized by my peers,” Harris said of being named the recipient of the Award of Honor for 2022. “I was pleased and proud that they felt like I deserved it.”

The Award of Honor will join numerous other significant awards Harris has received; in 1988 he was named Livestock Man of the Year by his peers in the ranching industry, and in 2014 he received the Agriculturalist of the Year award from the Fresno Chamber of Commerce. He received an honorary degree of Doctor of Science from the California State University at Fresno in 2019.

Looking back on Harris’ career, it is fitting to return to Steinbeck and “East of Eden”:

“But the Hebrew word, the word timshel—‘Thou mayest’—that gives a choice. It might be the most important word in the world. That says the way is open.”

Harris mayest, and he did.