Updates from the WGCIT: January/February 2023

January 2nd, 2023

The Western Growers Center for Innovation and Technology was created to link Western Growers members with innovators in the agtech space. Below are news updates from the Center’s startups:

AgNote

Now AgNote can intelligently estimate your crop harvest dates! One of the newest additions in AgNote’s farm management software is Harvest Date Estimation. It takes only a single click to turn the Harvest Date Estimation on for each crop. Users can choose for which row or vegetable crops they wish to see the Estimated Harvest Date. Once the Harvest Date estimation is turned on, the estimated harvest date will show up in crop management areas and many reports, which are available in AgNote—and there is even a dedicated report for Estimated Harvest Dates. AgNote allows users to schedule reports to be emailed out on a user’s selected schedule. Estimated Harvest Date report, once scheduled, will be emailed out only if there are any upcoming harvests in the next 30 days. You can learn more about AgNote’s features on agnote.com.

Agrology

With the impact of climate change accelerating, farmers require new technologies to maintain yields and implement regenerative practices. That’s why Agrology and Active Impact Investments recently announced an investment partnership to drive the market growth of Agrology’s Regenerative and Predictive Agriculture Platform. Active Impact Investments invested in Agrology’s SEED round to scale the startup’s climate technology solutions for growers. “26 percent of global emissions come from food production, and the agriculture sector is concurrently one of the most acutely impacted by climate change. Agrology has the dual benefit of helping farmers adapt to a changing climate, to remediate soil degradation through regenerative agriculture while also increasing margins and profit,” said Mike Winterfield, Founder and Managing Partner of Active Impact Investments. In addition to Active Impact, Skyview Ventures and Phoenix Venture Partners joined the round, along with additional syndicate participants.

Agtools

Agtools has entered the SAP, SAP.iO y Endeavor Accelerator, providing unparalleled access, curated mentorship and technical guidance to integrate the product, and go-to-market with SAP’s 400,000+ customers. In addition, Agtools won the Radicle Inclusion Challenge presented by Nutrien, out of 130 participants in 40 countries during the World Food Prize in Des Moines. Nutrien is the world’s largest provider of crop inputs and services to the agriculture industry. Agtools was selected as winner of the Supply Chain Innovation Summit Award sponsored by Accenture held in Chicago on October 4-5, 2022 for assisting the financial supply chain from farm to fork to improve their financial positions while simultaneously reducing food waste and accountability for ESG performance.

Bluewhite

New WGCIT member Bluewhite drives the growth of resilient farms through pioneering technology and a friendly user experience. The Bluewhite mission is to build resilient farms by maximizing the grower’s productivity and reducing their operational cost. It equips existing fleets with autonomous technology, an easy-to-use platform, and end-to-end service, supporting their journey to a more profitable and sustainable farm. Since 2017, Bluewhite has partnered with growers worldwide to support their continual progress in growing farm profitability, productivity and safety. Bluewhite’s diverse team of engineers, farmers, technicians and field operators hold decades of experience in autonomous technologies and share the same values: fellowship, love of the land and innovation.

CalCom Energy

CalCom Energy is a 100 percent employee-owned, full-service energy solutions provider based in California’s Central Valley. Our team has led the deployment of over 150+ MW of solar generation and energy storage capacity across the food system value chain. Through our core offerings and service-oriented partnerships, CalCom Energy is committed to helping our customers increase efficiencies, meet climate targets and continuously improve operations.

Carbon Robotics

Carbon Robotics, a leader in AI-powered robotics, empowers farmers to operate more efficiently by building innovative agriculture tools. The company’s revolutionary, high-precision laser-weeding technology leverages sophisticated AI deep learning technology, computer vision, robotics and lasers to reduce weed control costs by 80 percent and improve crop yield and quality. In February 2022, Carbon Robotics launched the LaserWeeder, a pull-behind robot that seamlessly attaches to the back of tractors and utilizes Carbon Robotics’ laser-weeding technology to identify weeds and target them for elimination.

Dexer

Dexer delivers data at the speed of voice. The voice-activated and highly customizable data collection app does not require internet service while it delivers timely and structured data—the kind that machines and sensors just can’t record. Focused on improving the ease and speed of remote and repetitive data collection, the app was built to enhance accuracy at the point of entry and has proven useful for everyone from researchers and crop scouts to food safety professionals and insurance agents. Dexer streamlines data collection by inputting the information directly into customized forms while providing immediate voice playback that enables real-time error handling and enables 100 percent accuracy. Eliminating duplication of entry, increasing speed for decision making and adding consistency in how the data is shared are a few key highlights of the solution. Dexer provides clean, structured data that is ready for import by the customer into their existing systems. Unlike voice-to-text applications currently found on devices, Dexer creates data entry requirements, along with built-in knowledge of specific industry terms, to help customers consistency collect and interpret data.

FarmWise

For vegetable growers who face increased growing costs and new regulatory pressures, FarmWise builds innovative systems to streamline farm operations and increase food production efficiency. FarmWise’s first product, the Titan, is an automated mechanical weeder powered by AI and robotics. The machine detects vegetable crops from weeds and uproots weeds, moving blades with sub-inch accuracy. FarmWise has collected over 500 million plant images, from lettuce to broccoli. The company has been running a commercial automated weeding service for the past three seasons in Salinas Valley and the desert. Leveraging thousands of hours of learnings out in the field and precious feedback gathered from the most prominent growers in the U.S., FarmWise is gearing up to release its next-generation weeder early next year. The product will be launched at the World Ag Expo in February.

Inteligistics

Inteligistics brings end-to-end solutions to monitor and improve efficiency for logistics, supply chain and cold chain management for companies producing and selling perishable products. InteliView is the digital information hub that takes data from a variety of sources, such as IoT devices, third-party sensors, API integrations and user input to be analyzed and presented on a cloud-based platform. Customers can monitor KPIs, highlight and remedy anomalies and analyze shelf life and ROI. For example, in a recent project of over 2,000 loads of avocados, InteliView algorithms were able to accurately predict quality and shelf-life based on time and temperature during transit. Geofences were created to trigger arrival and departure of pallets, track holding times, and inform stakeholders about the load location and status in the supply chain, leading to significant cost savings, operational improvements and more product sales. For more information on Inteligistics and its InteliView platform, visit inteligistics.com.

LahakX

LahakX received a write-up in Agri Business review, which can be read in its entirety here.

An excerpt is below: A new paradigm shift is taking root in the agricultural sector of Monterey County, California. The once predominant manual and aircraft-based agricultural spraying methods are making way for more effective, drone-based, autonomous spraying.

Until now, growers needed to do manual spraying, but this method took a lot of time and management attention. For commodity crops, fixed-speed aircraft was a go-to for growers, owing to their ability to cover larger areas faster. But aircraft flying back and forth 10 feet above the ground leads to significant fuel and chemical waste. Growers wanted a spraying approach that would combine the speed of aircraft-based spraying and the accuracy and low-cost of manual spraying.

LahakX, an agri-robotics technology company, delivers exactly this with its autonomous spraying drone technology designed for quick, precise and variable spraying.

PickTrace

PickTrace, winner of the 2022 AgTech Breakthrough award for Labor Management Solution, is the only all-in-one labor management suite for agriculture. With PickTrace Onboarding, users can rapidly hire/rehire employees, generate and digitally store their I-9 and W-4 documents and bulk import employees’ data from PickTrace into their payroll system. Time and productivity is effortlessly tracked in real-time, enabling you and your team to feel confident in your payroll compliance. PickTrace recently increased its presence in Salinas, Calif. and Yuma, Ariz., focusing on delivering an exceptional customer experience, optimized field processes and operationalized data.

Probelte

The opening of Probelte’s new American subsidiary broadens the company’s future, bringing biotechnological solutions based on selected microorganisms and their application in crop management to the U.S. With more than 50 years in the sector and 20 years developing microorganisms-based solutions, Probelte’s commitment to this movement goes through digitalization, a new milestone in developing specific techniques that help farmers.

In 2020, after a change in the company’s strategy and vision, Probelte turned all its attention to the U.S. to offer its comprehensive solutions to American farmers and growers. Since 2021, the company has been working closely with American experts, developing efficacy studies for various high-value crops: berries, avocados, leafy vegetables, almonds, grapes and citrus.

With the opening of the new subsidiary, Probelte launches one of the most strategic projects in its history. In tandem with North Carolina State University, the company is developing a project to build predictive modeling for Botrytis forecasting and personalized application of biotechnological treatments on crops. As in other countries, Probelte will remain by the side of agricultural producers, attending to their needs and involving them in developing more sustainable and specifically adapted comprehensive solutions.

Verdant Robotics

Verdant Robotics announced the close of a $46.5 million Series A funding to scale its advanced robotic technology and accelerate broad adoption of its regenerative and precision ag solutions. Lead investor Cleveland Avenue was joined by DCVC Bio, Future Ventures, SeaX Ventures and all existing investors, including Autotech Ventures, Cavallo Ventures and AgFunder, making the series one of the largest investments in ag robotics to date. “Increasingly, consumers are demanding food that meets the trifecta of good for me, for my community and for the planet,” said Don Thompson, Founder and CEO of Cleveland Avenue, LLC. “Verdant offers next-level precision that growers—and our global food supply—need to meet these demands, not only in the next 20 years but in the next five.” From its inception, Verdant’s mission has been to work side-by-side with farmers to solve their biggest future challenge—a shortage of farm labor—all while ensuring its robotic solution enables more growers to access regenerative and precision practices supporting soil health, water conservation, carbon sequestration and nutrient-dense crops.

 

WGCIT Sponsor: Nutrien Ag Solutions

January 2nd, 2023

For most professionals involved in agriculture, they say ag is in their blood. For Carson Britz, his family started out in agriculture as a crop retailer in the 1940s. After working a number of years in areas that include production, growing, processing, food safety, R&D and ag tech, he’s come full circle, and is now the Senior Manager of Sustainable Ag in the Western U.S. region for Nutrien Ag Solutions.

A retail division of Nutrien Ltd., the world’s largest crop inputs company, Nutrien Ag Solutions is an innovator in providing full-acre solutions to help growers achieve the highest yields with sustainable solutions around the globe. Its WG membership stems back to 1969, and most recently, the WG Center for Innovation and Technology (WGCIT).

Britz saw WGCIT as an opportunity not only for Nutrien Ag Solutions to communicate and work with up-and-coming companies, but to also share and compare his company’s needs versus what’s in the market today.

“Our slogan is leading the field. We intentionally make decisions that drive us toward wanting to be leaders in innovation and overall stewardship. Western Growers’ commitment to the center has made it an important hub for conversations to take place, and it’s a good way to aggregate entrepreneurs, startups and well-established businesses with opportunities for collaboration,” Britz said.

Nutrien Ag Solutions provides a full suite of digital tools that enables its customers to have an all-encompassing view of their operations. Currently, the company is fine-tuning a sustainability tool geared toward developing reports and analysis for growers to give them a better view of their sustainability scoring benchmarks set for their operation.

Two years ago, Nutrien began a pilot program with the goal of showing associated traceable outcomes from the seed all the way to the market. “We’re looking to scale this up and out. Through our data tools, growers will effectively be able to report what they’ve done to the field and how a crop was grown,” he said.

“If we’re able to demonstrate that traceability effort, there’s a premium associated with it,” he said. “This last year, we saw a customer come in and purchase a product at a 30 percent premium in the market just for having that kind of visibility on the farm. That’s significant because we’re helping tell the story of what growers are already doing.”

Britz commented that part of the value proposition Nutrien is looking to enhance is its participation in the supply chain. Specifically, greenhouse gas emissions are a hot-button topic for many retailers because they recognize the market requires accountability as it relates to the carbon footprint for products sitting on their shelves, he explained.

One of the biggest contributors to greenhouse gas emissions is nitrogen fertilizer, of which Nutrien is not only the largest producer in North America, but also the world. “Our sustainability solutions and tailored recommendations will help growers take advantage of reducing their farm nitrogen applied while incorporating other biological products that will help efficiency and efficacy of those applications,” Britz said. “This is the grander vision for how we want to impact specialty crops.”

Growers will not only become more efficient with their use of nitrogen fertilizer, but they also will have the ability to report on its use to show good environmental stewardship. “When it comes to that reconciliation with the end user and customer, they can have a choice on what they’re actually buying,” he said.

Britz said that it’s important to continually look for innovative ways to influence growers to make practice changes that drive optimization, efficiency and revenue.

“We’re bringing new opportunities for growers that provide value-added revenue streams that haven’t existed before,” he said. “We share and enjoy these benefits with the growers, and we truly do look at it as a longtime relationship and partnership that we want to perpetuate for years to come. We want to make sure growers continue to successfully farm for future generations to come.”

WGCIT Resident: Carbon Robotics

January 2nd, 2023

When the majority of Americans think about robotics and artificial intelligence, one of the last things that comes to mind right now is the farming industry. But Paul Mikesell, Founder and CEO of Seattle-based Carbon Robotics, is looking to change that.

Founded in 2018, Carbon Robotics is an agricultural startup that builds innovative tools that provides farmers with precise and cost-effective weed control solutions for large-scale specialty crops. And the company’s innovative influence now extends to Salinas, Calif., after joining the Western Growers Center for Innovation and Technology (WGCIT) six months ago.

“We wanted to become a part of the Western Growers Center of Innovation and Technology because Western Growers is known as a center of excellence by all the farmers and growers we work with, and it’s important to be a part of an organization that supports a vital industry,” he said.

Mikesell has been a huge contributor in the tech startup space for nearly 20 years, working on robotics and advanced techniques for AI-driven computer vision systems for notable companies in Silicon Valley. As someone who has always had an interest in the way our food is grown, Mikesell started to talk to farmers about what was happening in their fields and discovered that weed control was a constant problem.

Before Carbon Robotics took its first round of Series A financing, the company spent a lot of time in the field talking with farmers. “We dedicated a lot of our time to understanding where there’s room for optimization and improvement, and we looked at our skills and abilities to see where we could help. It’s crucial to spend time in the fields with the farmers to see what’s really going on,” he said.

Carbon Robotics launched its first product, the Autonomous LaserWeeder, in the spring of 2021. Using the latest techniques in AI and deep learning technology, the LaserWeeder instantly identifies, targets and eliminates weeds using high-powered lasers and thermal technology. Its computer vision model is trained to identify weeds and crops from images of field pictures and can accurately spot weeds in all types of soil and weather conditions amid different crops. The bot’s laser beam hits the weeds at the meristem, destroying those cells through applying heat energy and destroying the cell membranes. The result? A dead weed that is unable to photosynthesize and dies in the field.

The technology has since been responsible for killing more than 100 million weeds, a figure that is proudly tracked and displayed on a big screen in the company’s office. “We’ve heard from multiple growers that we’re saving them 80 percent on their weed control costs, and that’s a number that a couple of different growers came to independently,” Mikesell said.

His team is currently focused on gathering more data around increased yield and crop quality. “Over time, we plan to demonstrate increased yield because the laser doesn’t hurt the crops—it just targets the weeds.”

To date, Carbon Robotics has received orders from more than 50 farms. “We’re fulfilling current orders through next year and taking orders all the way out into 2024,” he said. And while the company is just selling in the U.S. for now, Mikesell has plans to start exploring international opportunities after generating interest from the UK, EU, Australia and New Zealand.

“Growing food is one of the most important things humans can do for each other,” he said. “Helping farmers has a much deeper and greater affect than anything else we can do in the tech space. Providing access to high-quality, nutritional food in a way that doesn’t harm the environment and protects farmers’ land is a real challenge, and that’s what we’re trying to do at Carbon Robotics.”

How California Let Arizona Take the Driver’s Seat When It Comes to Using Autonomous Farm Vehicles

January 2nd, 2023

California is the top agriculture-producing state in the U.S., according to the U.S. Dept. of Agriculture. But when it comes to autonomous vehicle ecosystem superiority, Arizona has not only taken a front seat—it’s also become the driver. The state has deployed a pro-business approach that has made it the hub for businesses in autonomous technology—and it’s now enjoying all the spoils that come along with it.

Arizona made its move early on to embrace new technology platforms when Gov. Doug Ducey stopped a sting operation on rideshare drivers at the 2015 Super Bowl in Phoenix shortly after being elected. Instead, Arizona legalized autonomous ridesharing, fostering an environment where officials have worked with industry to balance the competing interests of innovation and regulation, collaborating to solve challenges as they come up. The result? Arizona has become the hub for dozens of autonomous vehicle companies, including Waymo, Lyft and Uber. This, in turn, has laid the groundwork for the use of autonomous vehicles for agriculture.

At a time when the industry is facing labor shortages, increased costs of doing business, water shortages and environmental concerns, California needs to ensure the success of the agriculture industry by welcoming innovation. Walt Duflock, VP of Innovation for Western Growers, explained that while Arizona embraces this technology, California is at risk of losing its competitive edge by evading it and pushing companies to Arizona. “It makes sense, because the market is there, and the Arizona market is a lot friendlier for the companies developing it,” he said.

Ducey’s open-for-business approach is an excellent example of the impact embracing and adapting to new technologies can have on the world. “When you’re recognized as the autonomous ecosystem leader, all the benefits coming from the tech world flow toward your ecosystem hub in tech and agtech. Arizona is working hard to deliver these economic benefits for their state and the Greater Phoenix to Yuma corridor,” Duflock said.

While some see California limiting innovation and change with its bureaucracy and over-regulation, Arizona’s hands-off approach has encouraged many of the businesses to establish their operations in Arizona. Companies including Google, Uber and Ford have fought California lawmakers on self-driving regulations. They felt some of the rule requirements, specifically with reporting on the number of times a driverless car switched from autonomous mode to human-driven mode, can give misleading impressions when it comes to safety.

Earlier this year, the agriculture industry in the state of California was dealt a major setback when California’s Occupational Safety & Health Standards Board (OSHSB) denied a petition by Monarch Tractor, maker of fully electric, driver-optional tractors, to amend the state labor code that would “allow for the use of driver-optional tractors without a human operator stationed at the vehicular controls within a strict set of safety guidelines.”

Cal/OSHA cited that there wasn’t enough evidence in the hearing to determine if autonomous equipment was safe. A similar petition, brought forward by the Association of Equipment Manufacturers (AEM) in 2019, was also denied by Cal/OSHA for many of the same reasons.

As a result, in the state of California, manufacturers must obtain a special permit to operate autonomous equipment. Monarch Tractor was granted a temporary variance in 2021 to allow its autonomous tractors to operate without onboard drivers. At the time of the petition, Monarch Tractor revealed that its technology “operated 760 hours with zero incidents of any kind.”

The current labor code, which was written in the 1970s, states that “all self-propelled equipment shall, when under its own power and in motion, have an operator stationed at the vehicular controls.” Monarch’s proposed amendment suggested that current regulations were outdated, ambiguous and didn’t accommodate emerging technologies of the 21st century.

Proponents of this technology agree that autonomous equipment can bring tremendous opportunities for the agriculture industry, including sustainability, food quality and even improved safety for farmworkers. One can even consider some autonomous equipment would allow growers to operate their fields 24/7 and improve productivity.

“If you look at the types of equipment, it’s my understanding that manufacturers are looking at the types of applications that are the most dangerous for a worker, and they’re creating the autonomy where it makes the most sense, where you’re removing a worker from danger and replacing it with autonomy and reducing safety concerns,” said Joani Woelfel, President and CEO at Far West Equipment Dealers Association (FWEDA), an advocacy group for equipment dealers in the states of Arizona, California, Colorado, Hawaii, Nevada, Utah and Wyoming.

But there are many people who are familiar with the issue who feel that lack of safety data isn’t the issue, but rather the concern comes from labor. According to Woelfel, the only way around that concern is through education and engagement. “Unless the industry invites labor, regulators and legislators to participate and engage in this process, they’ll have a hard time getting them on board,” Woelfel said.

In November, Arizona Sen. Kyrsten Sinema toured JV Smith Farms in Yuma, hosted by Western Growers member and former Board Chair Vic Smith, CEO of JV Smith Companies, for a chance to see cutting-edge technologies used by farmers in the field. Woelfel agrees that more of this needs to happen to increase education.

“If the industry really made a concerted effort to engage legislators and regulators, similar to Sinema’s visit, and get them out there more, we’re happy to facilitate. Sometimes it’s just about connecting all the appropriate parties together to start that conversation,” Woelfel said.

Naturally, as technology evolves, there are some concerns about automation replacing workers. But many in the industry see automation as an opportunity to create more jobs.

“The way I see it, California may have just walked away from thousands of great paying, high-tech jobs in the motor vehicle industry generally and the agriculture industry specifically,” Duflock said. “We’re missing out on jobs that support the design, development, sales and maintenance of equipment, even when California still has a lead in the early R&D stages for many of the new autonomous vehicle companies. There are engineering needs up and down the stack. We have to look at it as an opportunity—what’s being created is new jobs and greater opportunities for workers. In turn, farms can become more profitable and successful and create new jobs.”

Woelfel explained that when it comes to automation, it still involves people—but with a different set of skills as well as a need to change the way we educate up-and-coming workers. “What these workers do is very different, so the industry needs to work together to identify the skills needed to work the equipment and improve their skills,” she said.

But until we engage with and educate decisionmakers and labor and improve the messaging on safety, things will be slow to progress. Western Growers will continue supporting its members and the industry, through the Western Growers Center for Innovation and Technology (WGCIT), to move toward market adoption and get funding and scale.

“We need to make sure their roadmap makes sense, and their economic model makes sense for the growers, and once they do a field trial, we need to spread the word and educate growers that there’s an opportunity to make a change,” Duflock said. In the meantime, California will have to continue to sit in the backseat while Arizona drives the ecosystem of autonomous technology that advances the industry.

“Autonomy is coming. It’s a major growth area and tech driver and will push the industry forward. California can only lead if it doesn’t over-regulate, and if we don’t change course, Arizona will continue in its current leadership position,” Duflock said.

Upon His Retirement, the Western Growers Family of Companies Celebrates David Zanze’s 38 Years of Service

January 2nd, 2023

When you start a new job with a company, the last thing you’re thinking about is the legacy you’ll be leaving behind. Rather, you may be thinking about how you’ll fit in with your new colleagues and hoping you’ll be successful in your new role, among others. When David Zanze joined Western Growers Family of Companies (WGFC) in the mid-‘80s, he was just excited to jump at the opportunity to be a key player in the health benefits sector and use his expertise to help lead the organization to further success. Well, it has been nearly 38 years of dedicated service, and David’s endless contributions have helped shape Western Growers Assurance Trust (WGAT) and Pinnacle Claims Management, Inc. into the flourishing organizations they’ve become today.

After I joined the company several years ago, one of the first things I noticed very quickly was the impact and influence David had not only on our members and bottom line, but also our employees. Serving as the hub for all things WGAT and Pinnacle, David was everyone’s first choice when they wanted to find solutions and gather industry insight. When talking to several colleagues about their professional experience with David, he was repeatedly described as a leader, an entrepreneur and someone who thinks outside of the box.

“I have been working with David for the past 28 years and have always had great respect for him and his unrelenting creativity. Once in a while, David breaks down his thought process to share some of his wisdom, and these moments are the ones I’ll cherish the most,” said Raquel Lugo, Senior Director, Client Services & Mexico Operations.

Whenever I had a question (and boy, did I have many!), David always had the answer. I’m not ashamed to admit that I’ve always managed to walk away learning a number of things about our industry and our organization after every conversation. Did that mean I was bad at my job? Definitely not. What it meant was that David was exceptionally good at his.

 

Strengthening Operations

David’s breadth and depth of knowledge in agriculture and health care gave him the ability to innovate in areas where our organization could better serve companies in need. David has been an ardent supporter of not only the ag industry, but also other industries seeking health care solutions. Impressively, after only 10 years with WGFC, David spearheaded the formation of Pinnacle in 1996. This move enabled the company to diversify and expand its offerings into a suite of health benefit services for self-funded employers. “Diversifying ourselves and expanding our services also allowed us to avoid financial difficulties similar businesses were facing in the industry during this time,” Zanze said.

David had a clear and solid vision for Pinnacle, which has allowed Pinnacle and all of its divisions to grow significantly into what they are today: Pinnacle Health Management, Pinnacle Rx Solutions, Pinnacle Print and Transaction Solutions, Pinnacle Risk Management Services, Pinnacle Insurance Solutions and our successful partnership with Covered California for Small Business. These additional entities helped to further enhance David’s vision of Pinnacle becoming a one-stop solution for employers’ health care needs.

David was also instrumental in the implementation of our Cedar Health & Wellness Centers and associated Cedar Network, enabling our organization to provide affordable health care services with copays that cost less than standard plans, while further delivering exceptional care and keeping costs under control. For David, our Cedar Health and Wellness Centers were an opportunity to expand access to high-quality, cost-effective patient care throughout the communities we serve.

“During my tenure with the organization, one of the things I’m most proud of is creating Pinnacle and turning it into a profitable enterprise with multiple successful subdivisions, as well as Western Growers Assurance Trust being financially healthy with a significant surplus,” Zanze said. “I was fortunate enough to have been given the opportunity to create a new business line and new sources of revenue for the organization and bring a significant portion of that revenue back to our partner company.”

And generate revenue these subdivisions did. Today, WGAT and PCMI are responsible for managing over $500 million in health care claims with over 60,000 covered employees. Additionally, the organization’s retail network of pharmacies totals more than 65,000 nationwide and fills more than one million prescriptions each year through its mail order program. For scale, compare that to our humble beginnings when the Trust was first established in 1957—in our first month of operation, WGAT’s sole plan covered 144 lives.

“David is member-driven to the core and has dedicated his career to helping build the Western Growers Family of Companies. His relentless entrepreneurship has met many member and marketplace needs while creating the firm financial footing that has allowed our association to prosper. There is no adequate way to sum up his 38 years of service except to say that his impact on our organization and industry will be realized for decades to come,” said Western Growers President and CEO Dave Puglia.

 

Continued Contributions

At the 96th Western Growers Annual Meeting in November, David was honored with the Service Award in recognition of his dedication and tenure with the company. David addressed the crowd, expressing his appreciation for being provided with an opportunity to work for an organization that has a solid mission. “It’s hard to put into words why I’ve been here so long—it’s an emotional feeling. I’ve stayed with this organization because of the members we serve, our mission and our supportive staff. If you cut my arm, I bleed green,” he said.

Although David is exiting Western Growers as a full-time employee in February, it’s not completely goodbye. David will continue to lend his support and expertise to the family of companies as a consultant in the areas of strategic planning, new business and retention strategies, product development, and budgetary assistance and cost analysis.

When I asked him about his decision to stay on as a consultant, David spoke of the importance of integrity and loyalty. “I like doing things the right way, and I’ll always put our company’s mission first over anything else. I want to continue providing my expertise, sharing my knowledge and staying active in the industry so I can further my contributions in shaping the industry and moving our company forward.”

And of course, David said you can’t just walk away from a company where you dedicated almost 40 years of your life. “I’ve spent most of my adult life with this organization, and I love and have a deep connection with the members we serve, our customers and our staff,” Zanze said. “I am always thinking of new ideas and ways to stay innovative, and I want to keep sharing my ideas on how we can continue to stay successful in the marketplace.”

When David isn’t spending his time consulting, he’ll be enjoying his partial retirement in ultimate style. David is an active pilot and plans to continue hanging out several thousand feet above the ground flying his airplanes and gliders. And as an avid guitar player for most of his life, David hopes to sharpen his guitar skills and expand on his musicality.

But there’s no doubt his constant presence and leadership will surely be missed. In the words of Pericles: “What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” Cheers to you, David!

 

In addition to serving as Executive Vice President of Western Growers Assurance Trust, David Zanze is the President of Pinnacle Claims Management, Inc.

Robots on the Farm: How Farmworkers Have Safer, Better-Paying Jobs Thanks to Tech

January 2nd, 2023

Science fiction stories about the future generally go one of two ways: A dystopian hell where robots attack us (“The Terminator”) or a dystopian hell where robots attack us in space (“2001: A Space Odyssey.”) But now it’s time to separate science fiction from fact. As the labor crisis continues in agriculture, with common-sense immigration reform at a standstill and an aging workforce threatening the future supply of skilled labor, technology will be one of the saviors of the industry.

In recent agricultural industry events—from FIRA USA, the first American version of the international ag robotics expo that was held in Fresno and co-sponsored by Western Growers, to the Alliance for Food and Farming Safe Fruits and Veggies farm tour across the Central Valley, to the Organic Grower Summit held last month in Monterey, Calif.—the excitement about agtech was tempered by one recurring question: Does automation mean farmworkers will lose jobs?

It’s a humane question, one based in the very worthy concern that individuals’ livelihoods would be eliminated by technology. It’s a variation on the dystopian theme that has populated our pop culture for decades.

The answer, thankfully, is no. In fact, in a scenario that might be counter-intuitive for a layperson—automation doesn’t replace workers, but it will actually improve workers’ quality of life by making their specific jobs easier and giving them better paying opportunities down the road.

At FIRA, Hernan Hernandez, the Executive Director of the California Farmworker Foundation, gave a presentation on exactly this topic, noting that technology collaboration is the key to farmworker economic mobility as well as a way to improve safety on the job.

“When we were asking farmworkers ‘What do you think about these new machines? What do you see? What is the future?’ many of them were a bit scared—but the majority of them said these machines are great and all, but they will never replace us,” he said. “We’ve seen this in our data—a lot of farmworkers support technology.  They think it is going to help them….In the Central Valley, the farmworkers’ average age is 45 years old. This is a workforce that, five to 10 years from now, is going to need technology to help them with their day-to-day activities.”

Hernandez says his organization is striving for a “free, fair, prosperous society” and he believes farmworker education to assist with career development is key. To that end, CFF is working with the Fresno-Merced Future of Food Innovation (F3) coalition, which in 2022 received a $65.1 million grant from the U.S. Economic Development Administration—the largest grant ever received in the Central Valley—to accelerate the integration of technology and worker skills.

“One thing that I do want to emphasize is the workforce that we have today knows the fields,” he said. “They’ve lived in the fields, they’ve worked in the fields for 10-, 20-, 30-, 40-, 50 years. They know exactly what the terrain looks like and how to do the work. The one thing I would want to see is more farmworkers being included in the discussions so we can produce better technology that is safe.”

That is exactly what is being done at HMC Farms in Kingsburg, Calif., according to Vice President Drew Ketelsen. “We will always need people—we cannot function without them,” he said. “But technology changes our ever-shifting landscape. Just like in many other industries, some job [categories] are lost and others are gained. There are new positions available in specialized areas in ag because of technology, allowing people the opportunity to pursue careers that didn’t exist five years ago.”

The best comparison to make is to think of what happened to switchboard operators as communications technology improved. Do those kinds of jobs exist in this day and age? Rarely. But did the mobile phone open up a whole new world of better-paying jobs in the same sector? Absolutely. Yesterday’s switchboard operator is today’s app designer.

Ketelsen’s team now operates everything from flying autonomous robots to optical grading and sorting machines to Burro self-driving wheelbarrows to field moisture probes to help HMC’s operations run more efficiently. “Ag technology is present in every aspect of our operation, from field preparation to harvest, packing to shipping, and everything in between,” he said. “Agtech doesn’t always look like a scene from the future, it can be as simple as adding a power system to reduce the manual human effort required of an activity—think of using a power drill rather than a screwdriver. Agtech is not about taking jobs away, it’s about making jobs better for employees.”

And while the cool factor of ag robots is undeniable, there is a very serious business motivation for Ketelsen’s push for technology at his operations.

“If agriculture does not innovate, the job loss will be astronomical. In contrast with slowly losing some jobs to innovation, all jobs will be immediately lost if farm acreage is replaced with non-labor intensive crops, or pulled out of agriculture altogether,” he said. “The concern is about more than jobs, it is also about food security. Two-thirds of all the nation’s fruits and nuts come from California alone. If we cannot find a way to provide healthy and affordable food, everyone will suffer.”

For Chris Rotticci, General Manager at Taylor Harvesting LLC, the fight for automation is on two fronts: to ward off the future inevitable collapse of the ag labor system—and to make sure today’s industry workers stay safe. Why use a ladder when workers can harvest from a mechanized raised platform that moves along the orchard row?

“Here, our emphasis and goal of automation is to improve our ergonomics,” he said. “How do we improve that work environment for the person that is actually doing the work? If we can build convenience into their working environment where they can improve their throughput, that’s a win for everyone.”

And while automation will reveal new ag industry jobs over time, it also helps those workers who are employed today. Skilled labor done more efficiently means more money for the farmworker, Rotticci said. “You get into the compensation side, where it’s either piece rate driven or a tiered bonus system,” he said. “I have safety bonuses weekly for the general labor we have. We have attendance bonuses…we’re shifting skill sets into a higher tier for higher returns.”

So, as it turns out, when it comes to robots in the ag space, the most accurate science fiction tale is actually “The Jetsons.” No, automated harvesters won’t be wearing maid uniforms and carrying feather dusters like Rosey the Robot. But they will make sure that farm employees have a safer, more efficient, less physically rigorous way to do their jobs, all with the potential for greater career development.

“To continue to do what we love, we have to evolve and adapt and welcome a few robots into our industry,” Ketelsen said

WG Women Profile: Marisol Moreno

January 2nd, 2023

Marisol Moreno, Controller at Allied Potato

Not too many people can say that the owner of their company made them a sandwich, but that’s exactly what happened to recent WG Women Certificate of Completion honoree Marisol Moreno when she discovered her passion for agriculture. At the time, she was working for a table grapes company as a senior accountant and was told she’d need to cover for the owner’s secretary whenever she was out of the office.

“I didn’t realize in the moment how much I’d take away from this,” Marisol said. “I’m not a normal accountant where it’s always about numbers. I want to know specifics, like why are farmers adding certain chemicals to soils, what’s in their yield, and what makes their yield not come to fruition as they expected.”

As these questions burned in Marisol’s mind, she’d engage in conversation with the farm’s owner whenever she could. And before long, he was asking her to sit and have lunch with him in the kitchen. “He opened my mind to a lot of things about generational farming, and it was from that point on I knew I would always want to work for a family-owned farming company,” she said. “That’s where the passion lies.”

Today, Marisol works as the Controller for Allied Potato in Bakersfield, Calif., where she’s been working for the last three years. She’s the latest WG Women member to complete the course credits to receive her Certificate of Completion.

Marisol initially joined the WG Women program because in an industry that is heavily dominated by men, she felt it was important to connect with other strong women with whom she can learn from and receive support.

“I feel like this industry can be intimidating for some women, and sometimes even the greatest and strongest women need a little reassurance. Men and women learn things differently and engage a little differently on a social level, so it’s good to bond with women I can relate to for that extra ‘pick me up’ and receive that reassurance that we aren’t contributing less,” she said. “There’s nothing better than having someone—a friend, in the community of agriculture.”

Marisol’s favorite part of the program has been the DiSC training on Productive Conflict, which helps individuals determine a course of action when dealing with problems in the workplace and enables them to develop a proactive response plan. “I learned a lot about myself and at the same time, I was able to identify certain things about my employees and their preferred methods of engagement,” she said. “That resonated with me—just because I have my own way of approaching conflict resolution doesn’t mean it works for someone else.”

Marisol also enjoyed the Arbinger leadership training and uses what she learned for her annual assessments. In fact, she said the owner of the company now wants to start implementing the tool for himself. “In my career, it’s nice to know that I’m contributing to something that is actually being brought to the table,” she said.

When Marisol isn’t dedicating her time to agriculture, she enjoys fly fishing. She’s a member of the Southern Sierra Fly Fishers club headquartered in Kernville, Calif., where she is also a participant in the club’s annual women’s program.

Marisol encourages all women to get involved in the WG Women program to support their personal growth, no matter their roles or career goals. “You’re bound to find someone in the program you can relate to and use as a resource. I always believe in making yourself better, whether it’s improving the way you communicate, the way you deal with conflict and even your skillset. You’re never going to do yourself a disservice by improving on yourself.”

Visit WG Women to find out more about the program.

Agtech Forecast: Q1 2023

January 2nd, 2023

Labor remains a top challenge for specialty crops, and it’s getting harder to find. U.S. farmworkers decreased by 70 percent in 70 years, regulatory costs increased 795 percent in 12 years, and U.S. H-2A labor increased from 48,000 in 2005 to 300,000 in 2021—which add transportation and housing costs. Innovation remains the best solution to turn manual tasks like planting, weeding, thinning, harvesting and spraying into automated tasks with mechanization and automation.

So what does the market look like in early 2023? Weeding is the leading robot category for the moment. Carbon Robotics, Stout AgTech and FarmWise are all delivering solutions that provide growers with quality economics. Carbon Robotics has raised $36.8 million and has a one-year order backlog for $1.4 million laser weeding robots that break even at two years or less with 3,000–4,000 acres of production. FarmWise has raised $65 million and is in multiple regions with a weeding-as-a-service option that is price competitive with labor crew economics. Stout AgTech just got a 10 percent investment from CNHI and has sold over 25 mechanical cultivators for around $350,000 each, and its machines can also return a payback to the grower of less than two years. In addition to these, Verdant Robotics just raised $46 million and Naio just raised $33 million, so increasingly the segment is finding capital to help scale out the number of robots in market.

Harvest Assist is also beginning to scale. The best use case for this is Burro, which helps table grape crews by increasing their logistics efficiency by moving harvested product back to the truck via use of an autonomous small platform tractor. The efficiency gains are often 15-30 percent and provide growers with a 6-12 month payback depending on usage and acre count. Burro sells $10,000 robots and has over 100 robots in market with plans to manufacture several hundred more in the coming year.

Spraying automation solutions are one of the emerging areas approaching quality grower economics. GUSS is one of the early leaders offers GUSS sprayer machines for vineyards and orchards, a smaller Mini GUSS for easier turning in smaller fields and Herbicide GUSS. Also delivering an on-the-ground spraying solution is Robotics Plus, which launched in the U.S. market this quarter. Both appear to offer quality economics for growers. In addition to GUSS and Robotics Plus, Rantizzo offers a drone-based spraying solution with competitive economics to tractor-based spraying options.

On the other hand, harvest robots are still in the relatively early stages of product development, testing and roll out. Harvest is proving to be harder to develop than weeding because each crop requires its own robotic solution and the end effectors that pick the fruits and vegetables have to be significantly more gentle with them then weeding robots, which can just destroy weeds. None of the harvest robots have yet gotten to scale, and most have raised $25 million or less (as compared to the weeding robots, which as mentioned above, have been successfully fundraising over the past couple of years.)

So that’s the state of play with specialty crop automation—if you’re looking for weeding, harvest assist or spraying solutions, there are good options with good economics available. On the other hand, if you’re looking for harvest robotics, keep an eye out for emerging players but they are likely a few years away from getting to market at scale.

WG Director Profile: Chad Amaral, D’Arrigo Bros. Co. of California

January 2nd, 2023

Chad Amaral, D’Arrigo Bros. Co. of California, Salinas, Calif.

Director since 2022  |  Member since 1937  |  D-11 Monterey County

D’Arrigo California will be celebrating 100 years of business in 2023, and Chad Amaral, Vice President of Sales and Business Development for D’Arrigo and newly elected Western Growers Board Member, has been with the company for 25 of them.

Amaral recently attended his first WG board meeting at this year’s 96th Western Growers Annual Meeting. He described the experience of engaging with today’s agricultural leaders who are driving the association and moving the industry forward as nothing short of inspiring. For Amaral, WG has been integral to the agricultural industry and an important association to D’Arrigo, which has been a member of the association since the 1930s.

“In the short time that I’ve been able to interact, the association and board of directors have been extremely welcoming and supportive. My goal is to assist and contribute to the progress Western Growers has and will continue to have in advancing the various aspects of the agricultural industry,” Amaral said.

Born and raised in Salinas, Calif., Amaral graduated from Cal Poly San Luis Obispo with a degree in agricultural business and management. “If you’re from Salinas, you know agriculture is a big part of the community, so once I graduated, I knew it was something I wanted to get into,” he said. It wasn’t too long before he landed a job with D’Arrigo on the sales side, eventually rising up the ranks to become the company’s Vice President of Sales and Business Development.

“I started my role closely interacting with our customer base in the segments of wholesale, food service and retail and understanding their needs. As I’ve gained more responsibility, I’ve focused a lot of my efforts on having a better understanding of our business as a whole and looking for ways we can collectively interact and bridge gaps between different departments so we can work more synergistically,” he said.

While Amaral describes himself as having a Type A personality and appreciates structure and planning, he also recognizes that the agricultural industry is in the midst of a lot of change. “The world has become a small place in that the buying and supply community is shrinking. I think there’s going to be a need for more collaboration, and I’m looking forward to being a part of conversations that bring those segments of the business closer together and educating both sides. People operating in silos will be a thing of the past, and what used to be competitors in the past could become partners in the future,” he said.

As far as getting elected to the Western Growers board this year, Amaral said one of his major goals is not only contributing to a traditional history, but also coming up with solutions for the future. “When you think about the ag community, you think a lot about tradition and family-owned companies. Moving forward, I think there’s an opportunity to use and understand the history of agriculture and at the same time, evolve into something that allows you to be fluid and flexible so you can remain relevant in the industry.”

Amaral considers being a part of the WG board as an opportunity to acquire further insight into areas of the industry he hasn’t been exposed to previously while also gaining a better understanding in aspects that are pivotal to the evolution and advancement of agriculture, such as labor, water and innovation.

“The board members are established and reputable individuals within the industry, and I’m looking forward to learning from all of them and hearing about their experiences,” he said. “They’ve created strong foundations in agriculture, and being part of an incoming group, I want to build upon the foundations they’ve created.”

 

Understanding the Drivers of Corporate Health and Wellness

January 2nd, 2023

A perfect balance of health and wellness. Does it exist? To a small few, it does—but for a majority of people, finding that balance can prove extremely challenging. That’s when things can start taking a toll on employees’ mental and physical health, and the negative effects can spill into their work performance and eventually their employers’ bottom lines.

“The Great Resignation” and “work-life balance” are buzzwords we’ve all been seeing lately, and these are reflective of the fact that the U.S. Bureau of Labor Statistics found that nearly 4.15 million people quit their jobs in August 2022. Employees are prioritizing their mental health, so much so that an estimated 64 percent of full-time employees said they would choose working in a less stressful environment over a 10 percent increase in salary, according to research from the Lincoln Financial Group. More interestingly, nearly two-thirds of employees said they have left a previous job or would like to leave their current job because it’s interfering with their mental health.

Here are other concerning statistics:

  • U.S. workers are some of the most stressed employees in the world (Gallup’s State of the Global Workplace 2022)
  • 40 percent of workers reported their job as being very stressful (The American Institute of Stress)
  • 25 percent of workers view their job as being the number one stressor in their lives (The American Institute of Stress)

The Impacts of Health and Wellness

Employers are recognizing that in order to mitigate the consequences of unhappy and unhealthy employees, they need to support them in a more meaningful way. Wellable Labs released its 2022 Employee Wellness Industry Trends Report and found that 90 percent of employers reported increasing their investment in mental health programs.

We also need to take into consideration that the impacts of health and wellness go well beyond employee productivity, retention and morale. Taking care of employees’ mental health can also help lower health care costs for both employers and employees, as stressors can often lead to physical ailments (weight management issues, diabetes, depression, high cholesterol and high blood pressure, to name a few). In fact, the American Institute of Stress reports that job stress is more strongly associated with health complaints than financial or family problems.

The Centers for Disease Control and Prevention conducted a systematic review of more than 50 published studies of worksite health programs and found that well-implemented programs can lead to 25 percent savings each on absenteeism, health care costs and workers’ compensation and disability management claims costs.

Investing in Employees

Employers have options to ensure their employees receive the support they need to help manage their health and wellness more effectively and reduce medical costs. At Western Growers Assurance Trust (WGAT), we partner with Pinnacle Health Management to offer care management programs at no cost to employees diagnosed with a range of chronic care conditions. This program is included with every WGAT health plan purchased. Additionally, employers can obtain our Wellness Program as an add-on, which includes quarterly wellness challenges, wellness toolkits, newsletters on popular health topics and customized reports at the end of all wellness challenges.

Our previous wellness challenges included “Ditch the Sugar,” which focused on reducing sugar consumption; “Destination You,” which encouraged participants to complete a set of health challenges over a course of several weeks; and the “Rest and Revive Challenge,” a mental health challenge that promoted positive emotional wellbeing through preventing and managing stress.

If you don’t have the WGAT plan, which includes a care management program and the added option of a Wellness Program, contact us to see how we can help you better manage your health care costs at (800) 333-4942.

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

WG Now Offers Pre-Harvest Testing Technical Support

January 2nd, 2023

Pre-harvest testing is a hot topic and technical support is now offered by Western Growers. On Nov. 2, 2022, Western Growers, in collaboration with the California Leafy Green Marketing Agreement, (CA LGMA) held an in-person workshop on the subject at the Monterey County Farm Bureau in Salinas, Calif.

The event was the first in a series of workshops we plan to offer on this topic and was free for attendees. It was presented by various subject matter experts, including Felice Arboisiere, Director FSQA Supply Chain North America, Dole Fresh Vegetables, Inc.; Joelle Mosso, Associate Chief Scientific Officer, Eurofins; April Englishbey, Global Produce Manager Molecular Diagnostics, Hygiena; Joan Rosen, President, JC Rosen Resources; Greg Komar, Technical Director, CA LGMA, and myself.

This was a pilot workshop aimed at providing a basic background on pre-harvest product sampling and testing and addressing some key challenges and questions with pre-harvest testing in the produce industry. The relatively recent focus on pre-harvest product testing by the Canadian Food Inspection Agency (CFIA) in response to a series of romaine lettuce outbreaks was one impetus behind this workshop. The LGMA guidelines also currently require pre-harvest product testing under specific situations. Both WG and LGMA members have reached out with questions regarding implementing pre-harvest testing programs and how to write internal SOPs that comply with regulatory and buyer requirements. This workshop was the first step in providing relevant information to our members and allowing an opportunity for produce operations to directly engage with local experts on this topic. The target audience for this workshop included food safety professionals overseeing and implementing pre-harvest testing programs (supervisors/managers/directors).

A post-event survey was conducted and 34 percent of the attendees responded, offering valuable feedback. Based on this, we’re adjusting the workshop structure, content and delivery and will be offering the next one in Yuma, Ariz. in late January/early February 2023. This time, the workshop will include a hands-on demo of sampling techniques on a farm by a trained sampler.

We’re also incorporating some content to address specific questions that were raised during the workshop in Salinas, such as:

  • Who oversees improving testing methods or conducting research toward improved methodology?
  • How do labs decide which methods they offer to their clients?
  • How does industry decide which methods to use?
  • Industry is being pushed to test as close to harvest as possible. From the lab perspective, what is the best time to test?
  • What does a method validation entail? How rigorous is it and how well does it reflect real-life conditions?
  • Should I react to a molecular presumptive positive or go through culture confirmation before deciding whether to harvest a lot or not?
  • Is it beneficial to give your lab a heads up when conducting extensive testing during a root cause analysis investigation?

The speakers did a wonderful job of answering these questions and others and we hope to have a similarly engaging discussion in our next workshop.

We also coined a new term for those in the industry during this workshop: super scientist. Come and meet these super scientists at our next pre-harvest product testing workshop in Yuma. It’s a great opportunity to meet and learn from your peers on a subject that’s top of mind.

A special note of gratitude to all the speakers and behind-the-scenes staff who made this workshop a success and to the Monterey County Farm Bureau for their hospitality. Eurofins sponsored this event and provided breakfast and snacks. Ocean Mist Farms contributed high-quality spinach, brussels sprouts and broccoli for in-class demos.

WGA cares about food safety in our industry and food safety at home. If you have any concerns about food safety compliance or your organization’s food safety plan, please contact Sonia Salas at [email protected].

Education is Key to Successful Advocacy

January 2nd, 2023

At the time of this writing, the 2022-2023 two-year legislative session has been called to order in Sacramento. This represents a changing of the guard from one formal legislative season to another and, this year, a sea of change in the number of new legislators who are coming to California’s capitol. In fact, approximately a quarter of the legislature is now made up of new faces. This is both exciting and challenging for those of us who advocate at the Capitol. It’s truly enjoyable to meet the new members and learn about their previous life experiences in addition to their specific policy goals.

We have many issues to cover with Sacramento’s new arrivals. WG’s advocates meet with the new offices to walk through the basics of growing, harvesting and bringing a crop to market. We touch on just about everything: tax policy, land use, water supply and quality, and the list goes on. We do this to educate the Sacramento Capitol community about the uniqueness of California agriculture. This educational process is dynamic and happens throughout the entire legislative process. Legislative bills and agency rulemakings are constantly moving, so we must move quickly to discuss with officials whether the proposed policy will either have a positive or negative impact on the industry. It’s one of the most important aspects of our role and requires that WG staff stay up to speed on how our growers are operating and what they see as future opportunities as well as barriers for their business operations.

WG’s advocacy is important. Case in point, only two of the new assemblymembers who posted introductory videos on their official websites mentioned water as one of their three policy goals. This is perhaps unsurprising given that great attention has been given lately to education, healthcare, climate and social justice. However, a stable water supply is a key ingredient of the agricultural economy and is an essential component of the success or failure of the greater California economy. WG staff will certainly be focused on educating members about the water problems and opportunities facing our growers.

We will also be providing insight about California’s unique process of regulating the sale and use of crop protection tools. California is the only state with a department (CA Department of Pesticide Regulation) that regulates the sale and use requirements of crop protection products. These regulations are above and beyond the federal regulations that have previously deemed these products to be safe and effective for use per the label requirements.

Every legislative session has its own unique themes that drive policy goals and the eventual outcome of which bills are passed and ultimately signed into law. The 2023-2024 legislative session will not be an exception. A severe state budget deficit of at least $24 billion is expected for the coming fiscal year. This is a conservative estimate that doesn’t factor in the impact on the state budget should we enter a recession. Less revenues coming into the state’s coffers means that the usual fighting over the uses of those monies will be even more contentious and complicated. WG staff will be on the lookout for attempts to create new or raise existing fees in order to offset revenue losses.

The year ahead will clearly have its challenges. WG staff look forward to those conversations as we fiercely advocate for an amazing industry.

Industry Pushes to Block Kroger-Albertsons Planned Merger

January 2nd, 2023

Western Growers joined with the California Fresh Fruit Association and Colorado Fruit & Vegetable Growers Association to recently submit comments to the Federal Trade Commission (FTC) on the proposed merger of grocery giants Kroger and Albertsons. While the companies’ investors might see a profitable upside, farmers have good reason to be concerned this deal, worth nearly $25 billion, is bad for producers. The two retail giants combined would account for 15.6 percent of the U.S. grocery market share, second only to Walmart at 21 percent. Kroger says the deal would help it better compete against Walmart Inc. on prices. Industry’s comments make the case that the deal, if granted approval by the FTC, will harm suppliers of fresh produce by decreasing competition since the newly combined megastore would have significantly more leverage over the growers and shippers that feed the nation, causing reduced farm profits and farmworker jobs.

Does the Merger Violate Antitrust Laws?

The FTC and Justice Department each have jurisdiction to determine if it violates antitrust law, though the FTC has historically scrutinized mergers involving grocery chains and has taken the lead in reviewing this deal. The government’s policy on antitrust mergers & acquisitions review has shifted after decades of a relatively permissive stance to a markedly more interventionist, activist policy, under the Biden administration. On Dec. 6, the FTC asked Kroger for more information on the deal, known as a second request, potentially dragging out the antitrust review process for the merger by months or even years.

Kroger and Albertsons are the first- and second-largest supermarket chains in the U.S. Viewing the field of competition through that limited lens would likely compel the FTC to block the deal. However, expanding consideration of the food retail market to include other types of stores that sell groceries, such as Walmart (21 percent market share), Costco (7 percent), online-grocer leader Amazon, among other smaller regional players, could help tip the scales in favor of approving the merger.

To preemptively address the antitrust regulators’ concerns that the merger will stifle competition in markets where they have overlapping stores, Kroger and Albertsons announced that it will offload up to 375 Albertsons locations to a separate company controlled by Albertsons shareholders. The FTC demands divestitures and other concessions to promote competition, but such measures can backfire.

When Albertsons and Safeway merged in 2014, Haggan, a grocery chain based in the northwest with just 18 locations, acquired 146 former Albertsons and Safeway stores. But less than a year later, the over-extended Haggen went bankrupt, closing many of the stores it purchased and selling other stores through the bankruptcy proceedings at a lower price to supermarket bidders including…you guessed it, Albertsons. The spectacular failure of the Albertsons-Safeway merger is a cautionary tale, with concerned lawmakers referring to it repeatedly in the context of scrutinizing the Kroger-Albertsons deal.

Increased Scrutiny

At a Senate Judiciary hearing in November, nearly a dozen lawmakers grilled Kroger and Albertsons CEOs on the potential impacts of the mega-merger. They raised concerns about food inflation, lost employee bargaining power and lost jobs if the deal is approved. Industry groups, labor unions and consumer groups have also weighed in, noting that the merger will increase already rising food prices boosted by high inflation.

Western Growers urges the FTC to block Kroger from acquiring Albertsons. A Kroger-Albertsons mega-buyer would imbue the new behemoth with exceptional buying power capable of further squeezing its suppliers. The inevitable result will be further shrinking already skinny farm margins, lost farmworker jobs and earnings, and higher food prices. The merger is bad for just about everyone who is not a Kroger or Albertsons investor.

Western Growers’ letter to the FTC can read here.

 

President’s Notes: The water supply crisis is devastating California’s farms. It’s time for a crisis-level response.

January 2nd, 2023

Editor’s note: This opinion piece was first published Dec. 1 in The Bakersfield Californian. Reprinted with permission.

For decades, California has been paralyzed, prevented from securing an adequate water supply by endless debate, red tape and litigation over where, how, and even if the state should create more water supply infrastructure. In the last few years some major farming regions have received almost no water from state and federal projects built specifically to provide water for food production—yet calls to further choke off water to these and other farming regions have grown even louder. As farms are starved of water, California sacrifices critical food production, jobs in agriculture and the economic health of entire regions of California.

It doesn’t have to be this way, and this shouldn’t be our destiny. Gov. Gavin Newsom’s recent call for a direction, California’s Water Supply Strategy: Adapting to a Hotter, Drier Future, projects—for the most part—an overdue end to the decades of futzing and fighting that have transformed the state from water secure to water crisis. With the strong warning that some aspects of Newsom’s strategy could be counterproductive—particularly upending the state’s water rights laws—it is now time for follow through.

California policymakers, starting with the Legislature and Newsom’s own regulatory agencies, must change course and make big investments—some of which the Governor explicitly called for—to protect California’s position as the backbone of America’s food production while ensuring the water security of residents and businesses in every region. California’s agriculture industry—the most productive in the country and the world—is feeling the pressure more than any industry in the state.

An analysis from Yale University calls California “America’s garden,” noting that the State produces two-thirds of all fruits and nuts grown in the U.S. Because of the failure to secure adequate water for farming, cutbacks in food production are already occurring and will get progressively worse.

Up and down the state, farm fields are being left unplanted, susceptible to wind-blown erosion and loss of soil health. Californians are confronting yet another dry year as 2023 approaches, defined by emergency conservation orders, wildfires and rolling blackouts. California’s existing water system, which has not seen significant improvements since 1968, is not equipped to handle climate change, a population of 40 million and extreme drought. According to a UC Merced study, the drought from 2020-2022 cost California’s agriculture sector about $2 billion and nearly 19,420 full- and part-time jobs. The California Farm Water Coalition warns of another 23,000 jobs lost and at least $3.21 billion in economic losses related to water shortages. This is not sustainable.

California farmers have developed the most sophisticated and technologically advanced food production systems in the world, creating more healthy foods with the highest commitments to sustainability and efficient use of resources, especially water. But there is a reality that cannot be avoided: Producing the foods we need requires a lot of water.

The Governor stated: “We have a renewed sense of urgency to address this issue head on…we can’t do the same thing anymore, and I think all of us recognize that.” As our water supply crisis threatens the state’s farming regions with uncontrolled economic and social harm, Newsom and the Legislature have an opportunity—indeed, an obligation—to act boldly and expeditiously on immediate generational solutions including more storage, improved conveyance, regulatory certainty and new supply. California farmers, businesses and residents all deserve and desperately need definitive action.

Pre-harvest Product Sampling and Testing Workshop in Yuma on January 31 – Save the Date

January 17th, 2023

Sign up now for the in-person Pre-harvest Product Sampling and Testing Workshop taking place on January 31 at the Yuma Center of Excellence for Desert Agriculture (YCEDA). This event will be organized by Western Growers and California Leafy Greens Marketing Agreement (LGMA).

The agenda for the event will include topics related to establishing a testing program, lab processes, testing methods, Q&A and a field sampling demonstration.

This event has a maximum occupancy of 35-40 individuals. For more information about attending this event, contact Afreen Malik at [email protected] or sign up here.

Save the Date for the 2023 Salinas Biological Summit

January 24th, 2023

Listen to keynote speakers, plenary sessions and panel discussions. Experience an exhibition of biological solutions. Meet growers and peers from all over the world.

The 2023 Salinas Biological Summit on June 20-21, 2023 is shaping up to be a must-attend event for Western Growers members to connect with startups, corporate players, investors, and regulators and to gain a global perspective on biological inputs.

To receive updates about early-bird pricing and event details like key themes, keynote speakers, breakout sessions and optional field trips, visit www.salinas-summit.com to register interest at the top of the page.

Save the Date: The 2023 FIRA USA Event!

January 31st, 2023

The dates for the second annual FIRA USA event have been set for Sept. 19-21, 2023 in Salinas, Calif.

Mark calendars and set travel plans, as last year’s event demonstrated why this is an event that’s not to be missed. More than 900 people went to the Fresno event in October 2022 and attended panels, saw developments in agtech, interacted with other attendees and witnessed cutting-edge equipment in action in the field.

The 2023 FIRA USA event is slated to carry on the establishing tradition of dynamic panels and engaging demonstrations set by the 2022 event.

This save the date announcement comes before the FIRA World event happening on Feb. 7-9, 2023 in Auzeville-Tolosane, the seventh annual event showcasing innovations in agricultural automation and robotics.

For more information on the upcoming FIRA USA event, contact WG VP of Innovation Walt Duflock at [email protected]

Industry Files Amicus Brief in PAGA Case Before California Supreme Court

January 6th, 2023

A coalition of industry groups, including Western Growers, has filed an amicus curiae brief in the California Supreme Court in Adolph v. Uber Technologies, a case which will examine the ruling that purportedly provided relief to employers from California Labor Code Private Attorneys General Act PAGA claims in the recent decision from the United States Supreme Court in Viking River Cruises, Inc. v. Moriana.

The Supreme Court in Viking River enforced the parties’ arbitration agreement and ordered dismissal of the plaintiff’s nonindividual PAGA action, holding that statutory principles of standing precluded the employee from bringing claims on behalf of others in court while the employee was resolving an individual PAGA claim in arbitration. Thus, under Viking River, employers that implemented carefully drafted arbitration agreements could minimize PAGA risk. However, the California Supreme Court has accepted review in Adolph, placing at risk any relief provided by Viking River.

The amicus brief was filed by Californians for Fair Pay and Employer Accountability (CFPEA), the same organization that qualified the PAGA-repeal ballot measure for the 2024 ballot. The industry groups involved in CFPEA include the California Chamber of Commerce, California New Car Dealers Association, Western Growers Association, California Restaurants Association, California Grocers Association, California Retailers Association, California Manufacturers and Technology Association, and California Hospitals Association.

The brief makes several novel arguments. For example, the brief provides the California High Court with the relevant legal standard and framework the Court should use to examine the issues presented by the parties—a standard and framework not raised by the parties. CFPEA also illustrates for the court documented PAGA abuses and demonstrates how the plaintiff’s overly broad interpretation of the PAGA statute will lead to further abuses that undermine the State’s policy and the Legislative intent behind PAGA.

California’s CRD Releases FAQs on Employment-Related Agreements

January 6th, 2023

The California Civil Rights Department (CRD (formerly the Department of Fair Employment and Housing (DFEH)) has issued FAQs providing guidance on California’s new limitations on confidentiality and non-disparagement clauses in employment, separation, and settlement agreements.

The laws regarding these types of agreements have been expanded over the past several years. The last expansion, SB 331 – known as the ‘Silenced No More Act’ – broadly limited the use of non-disclosure provisions in all types of employment-related agreements.

Effective January 1, 2022, SB 331 expanded restrictions on settlement agreements that prevented the disclosure of facts relating not only to allegations of sexual assault, harassment, discrimination or retaliation based on sex, but to allegations based on any protected classification under the state’s Fair Employment and Housing Act (FEHA).

The FAQs offer guidance on questions such as:

  • Can an employment or severance agreement prohibit an employee from talking about discrimination, harassment, retaliation, or other unlawful acts at work?
  • Can an employment agreement require an applicant/employee to give up claims or rights in exchange for employment?
  • Can a separation/settlement agreement prohibit an individual from disclosing the amount of severance/settlement received?
  • Can a settlement agreement include a “no-rehire clause?”

In addition to the above, FAQs also include specific examples of compliant and non-compliant language.  

Weekly Organic Agriculture Seminar Series Starting Soon

January 17th, 2023

Starting January 24, 2023, UCCE Santa Clara; ALBA-Agriculture Land-Based Training Association and CDFA Specialty Crop Block Grant will be hosting an Organic Agriculture Seminar Series every Tuesday from 12-1 p.m. PST until March 21, 2023. Each workshop will include a 30-minute presentation followed by questions and general discussion on the day’s topic. Recordings of the 30-minute presentation will be made available after the event, but the questions and discussion will only be available in the live Zoom event.

The series will kick off with Joji Muramoto, Organic Production Specialist at UC Santa Cruz, discussing Nitrogen Mineralization from Organic Fertilizers and Composts on January 24th.

The upcoming schedule also includes the following topics:

January 31: Tools & Approaches for Assessing &Improving Irrigation Efficiency on the Farm with Michael Cahn, Irrigation and Water Resource Farm Advisor, UCCE

February 7: Organic Management of Nematodes with Philip Waisen, Vegetable Crops Advisor, UCCE

February 14: How to ID and Scout for Insect Pests with Alejandro del Poso, Assistant Professor of Entomology, Applied Insect Ecology – Turfgrass and Ornamentals, Virginia Tech University

February 21: Why & When to Choose Between Open-pollinated, Hybrid, & Land-race seeds? With Charlie Brummer, Director and Professor, Center for Plant Breeding, UC Davis

February 28: Management of Soil-borne Plant Pathogens with Organic Amendments with Amisha Poret-Peterson, USDA-ARS, Davis

March 7: Biology and Management of Thrips and the Diseases They Spread with Daniel Hasegawa, USDA-ARS, Salinas

March 14: Weed Management on Small farms and in Organic Production Systems with Darryl Wong, Center for Agroecology & Sustainable Food Systems, UC Santa Cruz

March 21: Recruiting Owls and Raptors for Pest Management with Breanna Martinico, Human-Wildlife Interactions Farm Advisor, UCCE

All events will utilize the same Zoom link found here.