May/June Updates from the WGCIT

May 15th, 2023

By Ellie Amesse

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, as well as updates on activities at the center and its popular podcast!

AgTools

Agtools is moving forward and has become a worldwide source of reliable data for private and public/government entities. Its founder was selected as one of the Microsoft-sponsored Women in Cloud, Top 100 Founders for 2023 in part by accelerating the usage of ESG and United Nations Sustainable Development Goals. AgTools was honored by the city of Champaign, Ill., with a city proclamation during Agtech Week at the University of Illinois in March 2023. The company was also recently featured by the University of Florida in its research article on economies of scale and scope in fresh produce technologies. Also featured was AgTools’ white paper highlighting how geo-political and climate changes, plus over 76 variables, impact the supply chains for U.S. commissaries. These various honors have resulted in AgTools receiving multiyear contracts across the globe to continue providing curated data for optimum decision-making by farmers and buyers in the food supply chain.

Bluewhite

This February, Bluewhite participated in the World Ag Expo 2023 in Tulare, in which they were selected as winners in the International Agri-Center World Ag Expo’s New Products competition. Bluewhite’s team installed the award-winning Bluewhite Pathfinder on multiple manufacturers’ tractors, showcasing the Pathfinder’s autonomous system with multiple types of implements, such as the Exact harvester. Bluewhite and Exact Harvesting Systems announced a collaborative partnership to pioneer the industry’s first fully autonomous nut-harvesting solution during the event. Together, Bluewhite and Exact Harvesting Systems are reimagining what is possible for growers around the world by creating autonomous farming opportunities.

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. The LaserWeeder’s 30 high-powered CO2 lasers use thermal energy to destroy the meristem of the weed with millimeter accuracy, without disturbing the soil or damaging nearby crops. The implement can kill up to 99% of weeds, eliminate up to 200,000 weeds per hour and weed up to two acres per hour.

Carbon Robotics introduced the industry’s first LaserThinning capability for its LaserWeeder in February 2023. LaserThinning targets areas where vegetable crops are purposefully overseeded and then thinned for optimal crop spacing, growth and yield. As a new software update, all LaserWeeders in the fleet will now be able to thin and weed on a single farm equipment platform.

To date, Carbon Robotics’ LaserWeeders have successfully eliminated over 500 million weeds across 50 different crops. Deliveries in 2023 will bring the LaserWeeder to farms in 17 U.S. states and three provinces in Canada. Pre-orders for 2023 are nearly sold out and pre-orders for 2024 deliveries are well underway.

EnSolución

En Solución’s fully automated ozone nanobubble system continues to help lower the cost of food safety while increasing quality control. We are pleased to be partnering with Braga Fresh to conduct pilot testing of our ozone nanobubble solution in their processing facility in Gonzales, Calif. In addition to shelf-life studies, we will explore the benefits of in-plant targeted placement of this innovative sanitizing technology. En Solución will also partner with JV Smith Companies at their JV Farms facilities in Yuma, AZ in support of En Solución’s latest grant award from the FDA. Under that award, En Solución will apply ozone nanobubbles to open water irrigation sources to improve water quality and enhance plant health and soil productivity. En Solución continues to seek additional installation locations with industry-leading partners across North America—let us know if you are interested in piloting with us!

FarmWise

After a successful product launch at the World Ag Expo last February, FarmWise is focusing on the start of the Salinas season and the building of its pre-order book for its new weeding implement, Vulcan. After years of experience providing best-in-class automated weeding services, the FarmWise team releases a radically different and unique architecture designed to provide unparalleled weeding performance in the field. Vulcan packs cutting-edge computer vision into a lightweight, open cultivator frame. Reliability, ease of operation, transportation and maintenance, and the ability to configure fast and leverage the implementation in any field are the core elements of Vulcan’s value proposition. The team also just filled a handful of critical roles within their engineering department, which will help accelerate the company’s effort toward successful deliveries of its first implements by this fall. To learn more about Vulcan and how it reduces growers’ weeding bills, please get in touch with Todd Rinkenberger, VP of Sales at FarmWise, and visit farmwiselabs.com.

HeavyConnect

Seven years ago, HeavyConnect Founder and CEO Patrick Zelaya was working on perfecting his pitch to present at the 2016 Startup Challenge Otter Tank. A few weeks later, his startup won first place in the Venture Division. Now, HeavyConnect is helping small farms keep track of operations in a manageable, simple interface. Using HeavyConnect, food supply chain workers can keep track of food safety compliance, connect with payroll services and more, all on one dashboard.

“What we provide is a solution that makes that process a lot easier so that they can keep being farmers and not just administrative record keepers,” said Zelaya. “Our goal is to keep growing that not just at the enterprise level, but also with the smaller growers.”

To make HeavyConnect a reality, Zelaya partnered with Brad Barbeau, director of the Institute for Innovation & Economic Development (iiED) at California State University Monterey Bay (CSUMB), who suggested he hire student interns to work on the project.

Startup Challenge is an annual competition for new businesses that teaches, coaches, mentors, networks and connects entrepreneurs to the knowledge and resources they need to succeed in the marketplace. The event is organized by the iiED, an institute of CSUMB’s College of Business. According to Zelaya, Startup Challenge prepared him and his team to successfully pitch to other audiences in the tech industry.

For Zelaya, spending the most time with the growers and farm workers was a key part of HeavyConnect’s success.

“What we have been building isn’t your traditional software startup,” he said. “Our experience in spending the majority of our time in the field with the growers, with the farmworkers is not something that you find coming out of the Bay Area. That was very important to our success and has given us a lot of insight to build a platform that is very intuitive for our users.

Working in the industry and with farm workers directly has taught Zelaya what workers need to keep operations running smoothly.

“The common thing that catches people’s eye when we deal with growers is the user interface is so simple that everyone in the operation can adopt it quickly versus having a complex training and adjustment hurdle to overcome to make that digital transformation away from paper-based workloads.”

Today, HeavyConnect continues to grow throughout the country and internationally.

“We’re excited to keep growing and serving this need,” Zelaya said.

Nexus Robotics

Nexus Robotics is developing a weeding and scouting service that provides up-to-date information to farmers about the size and health of their crops. Our objective is to be the eyes and the hands of our customers, giving them local and global information on anomalies that need attention.

Nexus will commercialize the technology in May of this year by leasing the robots to farmers. The robots can be remotely monitored from our headquarters. The robot will soon become a platform technology for additional features, such as insect pest and disease detection as well as harvesting. As time goes on, the robot will become more intelligent and be able to offer more value to the farmers. Nexus is developing the next generation of farm equipment to ensure we have a stable and thriving food production system.

PickTrace

PickTrace, the winner of the 2022 AgTech Breakthrough award for Labor Management Solution, is the only all-in-one labor management suite for agriculture. It’s never been this easy to stay compliant, analyze labor costs and run payroll. With PickTrace Onboarding, users can rapidly hire/rehire employees, generate and digitally store their I-9 and W-4 documents, and bulk import employee data from PickTrace into their payroll system. Time and productivity are effortlessly tracked in real time, enabling you and your team to feel confident in your payroll compliance. Easily pay your workforce with PickTrace pay cards and provide your employees faster access to more of their hard-earned money. PickTrace recently increased its presence in Salinas and Yuma, focusing on delivering an exceptional customer experience, optimized field processes and operationalized data.

SWAN Systems

Our Swan Team is excited to welcome Shannon Rinkenberger! Expanding our California presence to the Central Coast, Shannon and her family’s farming background aligns perfectly with our efforts to serve growers.

The SWAN Systems software platform is adaptable for irrigators, ranch leads, managers, agronomists and water accounting. A new feature release in Spanish further enables irrigators with mobile devices and operational flexibility.

Swan optimizes irrigation technology from simple clipboard recordkeeping to over 100 industry hardware sensors and data points. The technology creates a single, safe place for your irrigation specs, crop-coefficients and farm know-how; allows for complex irrigation scheduling in minutes; and delivers reliable, repeatable software scheduling, even when the hardware is down.

Terrantic

External events are putting pressure on grower-packer-shippers and foodfor  processors: labor shortages, worker skills gaps, overtime laws, supply chain, geopolitical challenges, climate, etc. leave these operations vulnerable. Operational efficiency and innovation are how businesses can absorb the impact of these external challenges. New WGCIT member, Terrantic, is on a mission to utilize your existing data to improve your operations. You probably don’t use most of the data you already have. To quote Stuart Woolf from the Feb. 2023, Voice of the Valley podcast, “We collect a lot of data, but we don’t have a lot of information…to make better decisions, real-time decisions…” Terrantic solves this problem. Come find out how we use your existing data to drive labor efficiency, improve skills gaps, maximize yield, maximize shelf-life, reduce unplanned machine downtime, and much more.

WGCIT Sponsor: How Bayer Sets the Pace of Innovation

May 15th, 2023

“Fruit and vegetable growers need every tool in the toolbox because production is so challenging.” — Dr. Frank Wong, U.S. Industry Affairs Lead at Bayer.

The only thing better than having a powerful ally is having an ally that is also dedicated, motivated and smart. Bayer is that ally for the specialty crop industry and Western Growers. Bayer has supported the Western Growers Center for Innovation and Technology since its inception and has maintained the highest level of sponsorship with Western Growers for almost 30 years.

Bayer aims to provide solutions for farmers to plant, grow and protect their harvests using less land, water and energy. For Western Growers, Bayer brings a strong portfolio of tools for growers with both vegetable seeds and crop protection. Jenny Maloney, the Strategic Account Manager at Bayer Vegetable Seeds for North and South America, and Dr. Frank Wong, U.S. Industry Affairs Lead for Bayer Crop Protection, are key partners who tag-team with Western Growers to cover key issues.

“We support innovation in the industry,” said Jenny Maloney. “There are startups that are coming in and partnerships that have happened. There are all sorts of ways that we can get to where we want to go with innovation and technology, so we have been a huge proponent of that.”

Whether it’s through the work and support of WGCIT or its portfolio offerings and industry advocacy, Bayer’s influence and work is a strike point of impact for reverberating change. With strategy and ingenuity, the minds at Bayer are always working to plot the trajectory of genetics, biologicals and agtech to meet the future of the specialty produce industry with precision and accuracy in a way that will result in increased yields of nutrient-rich products.

Bayer considers the scope of the growing process from seed genetics, crop care and harvest. One of the products in its portfolio exemplifies this: the High Rise™ broccoli series.

“The High Rise™ portfolio includes two varieties—Eiffel and Hancock. The varieties grow tall and feature strong, clean stems with few large leaves and visible crowns that are firm and heavy. The uniform maturity, high yield potential and consistent product quality can help growers achieve efficient harvests through less harvest passes. In addition, varieties in the High Rise™ broccoli series are well-suited for time-saving machine harvesting, an ever-increasing request from growers.” (www.vegetables.bayer.com)

The unique morphology of the High Rise™ broccoli stem is a manifestation of the forward thinking of the minds at Bayer. The harvesting technology may not be ready to roll out and collect it, but the broccoli was genetically ‘engineered’—engineered through classic genetic work where traits were emphasized and bred for over years of careful seed cycles and grower feedback—to be ready for the day. In the meantime, the unique shape of the broccoli makes it easier for crews to harvest by hand.

Biological solutions are also in Bayer’s portfolio and continue to be a point of focus. “It is really, really difficult to develop biologicals,” Frank Wong said. “It’s not so linear compared to traditional small molecules and harder to find the gems in the rough. We are looking at ways to maximize discovery, application and effectiveness. For sure, there is a definite need for tools for West Coast growers, especially in California, to have something to control pests and to ensure that you have something sellable that comes out of the field. I fully support the positions and initiatives that Western Growers has taken to look for innovation in the biological space. That’s a big reason we’re supporting the conference [Salinas Biological Summit] that’s coming up in June.”

There’s no way to know what the future will bring, especially in the world of agriculture in the West, but the great minds at Bayer are working to ensure positive and productive outcomes, all while keeping close to the people who make it all work: the growers.

WGCIT Resident: Agronova’s Probelte – Providing the Tools for Soil Health to Promote Human Health

May 15th, 2023

With the motto “From soil to health,” Probelte puts its purpose of being a player in the chain of environmental and human health front and center.

Hector Rodriguez, the CEO of Agronova—of which Probelte is the biological solutions subsidiary—has a keen eye on the future of biologicals in U.S. agriculture. In the broad framework of the Probelte catalog of products, there are three main goals for the products: what you feed the plant in its early stage, how you make it more vigorous as it grows, and how to treat it once it’s grown. “Our biological portfolio comprises from the fertilization to the vigor on the growth of the plant all the way to combatting pests through natural organisms, not using chemical products,” Rodriguez said.

By adding bacteria to the soil and supporting a strong microbiome, the plant is better equipped to capture nitrogen, which reduces the amount of nitrogen a grower has to supplement. Supporting the soil in the early growth stages offers a long tail of benefits: “The more robust and vigorous the plant grows, the heartiness of the plant, the less susceptible it is to pests and fungi and insects and pathogens.”

Probelte is existing in the best of both worlds: its new move to the U.S. market is backed by over 50 years of success in Spain. Like many companies in the space, Probelte started with a focus on chemical synthetic fertilizers and pesticides. In a shift that occurred early in the story of biological solutions to these products, Probelte started developing its biological products in the early 1990s. For years, the family-owned company worked on the research and development to support grower organizations in Spain, content to stay within the country’s economy.

By the early 2020s, a private equity fund came into the holdings of the company and a different group of management came to usher in a new era for the company. Rodriguez was one of the members of this new management team. “We decided that the company was a bit of a sleeping dog. [It was working] under the radar. It had a very strong biological portfolio, but it had not been really exposed for what it was worth,” he said.

One opportunity for growth stood out: California. Similar in climate to much of Spain, the chance for California to benefit from the hundreds of field studies conducted in Spain over the years was clear. Probelte has two objectives to reach within the next few years: assist the U.S. agricultural market to benefit from the products it has had years to develop and create a data platform that will allow for predictive modeling to best use products—anyone’s products—efficiently in the field. With better tools, Probelte hopes to make crop care efficient and accurate, reducing overfeeding and overtreating. In other developments, Probelte is set to begin developing its products in the U.S. by 2024.

Rodriguez shared his expectations for the future: “This is a gradual process. This whole thing is going to be gradual. You can’t just go and replace all of your synthetic NPK products overnight.” He said Probelte is looking to grow and adapt to changes in tandem with the U.S. market. He understands that grower operations aren’t going to integrate biological options throughout the growing process all at once. The company’s objective is to meet growers where they are and offer solutions where they make the most sense at a given time. “It’s more of a pulling together with the grower rather than a pushing,” Rodriguez said. With the change in environmental regulations and requirements, the push may come from external sources, but having a biological solutions provider looking for a mutually beneficial outcome may ease the process.

Agronova will be present at the Salinas Biological Summit on June 20-21 to join a discussion panel and have a booth to share how their products offer biological solutions. Agronova will also be a sponsor of the event.

Salinas Biological Summit Preview: Learn About the Cutting Edge of Soil and Plant Health

May 15th, 2023

For many, standing at the edge of a growing crop—whether it’s a plot of land filled with thick and rustling broccoli leaves or swaying stalks of sweet corn—is a peace that borders on the sublime. The plants move in the breeze, capturing the gust to make sound. The soil is rich with minerals from careful cultivation and plant matter that has been churned into it over and over again. The smell is thick with the heady earth, a far rarer sensory experience than it had been in past generations but seems to pull at a genetic memory.

But the expanse is far more bustling than senses perceive. From microbe to insect, a grower’s crop is a chaotic burst of constant activity. For much of human history, the dialogue around utilizing nature for the benefit of our species has used words like “harness” and “tame.” But acting in opposition to a natural force requires energy, especially when nature finds a way around those efforts. There is a shift happening in agriculture now, a change in tactics. If nature always finds a way, let nature guide.

The Western Growers Center for Innovation & Technology is recognizing the need and opportunity that exists within the biological space. In a drive to showcase international solutions for improving soil and plant health, Western Growers and Wharf42 will be bringing together key players in global agribusiness (which will include thought leaders from New Zealand, Australia, South Africa, Spain, Brazil and Israel) for the Salinas Biological Summit on June 20-21, 2023. The Salinas Biological Summit will be the first of this annual event where the discussion around biologicals in agriculture will be deep and thoughtful to address the opportunity to explore and fill a gap in agricultural use of biologicals that hasn’t been addressed before. The Summit will be a hub of activity to highlight advancements, provide networking opportunities, promote promising products and offer information.

Western Growers President & CEO Dave Puglia will speak at the event to usher forth the initiative to organize and accelerate the activity within the space of biologicals in agriculture. His experience with being at the forefront of major legislative and regulatory issues makes him uniquely equipped to lead the conversation. Since taking his position as the President and CEO, Puglia has supported the process of connecting influential participants in all necessary sectors to move progress, the Biological Summit being an example of such support.

But every journey into the new comes with uncertainty. With the known, there are standards, procedures and assurances. The market, the environment and regulators are pushing this initiative, pushing with many giving little guidance or regard to how it gets done as long as it does. The growers are the ones left to be the cartographers of this new terrain, but they aren’t alone. Innovators, seeing the opportunity of a new landscape to build products and businesses, are researching and bringing to market biological solutions to manage and grow crops in an environmentally cohesive and robust way. Organizations like Probelte and Bayer, profiled in this issue, are finding new ways to enhance the scope of the growing cycle with biologicals.

A key term in the conversation of biologicals is biostimulant. And defining it is an important step for research and regulation. According to the Plant Biostimulant Act proposed by U.S. Representative Jimmy Panetta (CA-19) and Representative Jim Baird (IN-04), “The term ‘plant biostimulant’ means a substance, micro-organism, or mixture thereof, that, when applied to seeds, plants, the rhizosphere, soil, or other growth media, act to support a plant’s natural processes independently of the biostimulant’s nutrient content, including by improving nutrient availability, uptake or use efficiency, tolerance to abiotic stress, and consequent growth, development, quality, or yield.”

According to a press release from Panetta: “Plant biostimulants are products that can be used in both agricultural and non-agricultural settings that improve natural plant nutritional processes, which can result in improved plant health, tolerance to abiotic and other environmental stresses, as well as improved growth, quality, and crop yield.” Bionutrients can promote micronutrient activity and improve absorption.

Companies offering biostimulant solutions provide products that work for and with the crop environment that preserves the quality and conservation of harvestable organs; generate stronger, better-structured roots; and deliver preventive maintenance of the crop under exogenous stress circumstances.

In the process of defining what means what and what falls under what category, biofertilizers fall under the umbrella term of biostimulants. One publication defined biofertilizers as “the substances containing variety of microbes having the capacity to enhance plant nutrient uptake by colonizing the rhizosphere and make the nutrients easily accessible to plant root hairs.”

In the book Biofertilizers Kamini Gautam, el al, the term is further explained: “Biofertilizers includes one or more beneficial microbes that facilitate better nutrient uptake, greater production of growth hormone and beneficial phytochemicals in crops leading to higher quantity as well quality crop production. Nitrogen-fixing microbes, phosphate-solubilizing bacteria (PSB), sulfur-solubilizing bacteria (SSB), potassium-solubilizing bacteria (KSB), and vesicular-arbuscular mycorrhiza (VAM) etc. are already being utilized in combination for making biofertilizers formulations for enhancing crop production but on small scale.”

As described in Biofertilizers, Probelte’s biofertilizer Biopron “has a high capacity for fixing atmospheric nitrogen, making it available to the plant; unblocks the existing phosphorus in the soil in such a way that the plant can easily absorb it; and provides the power to solubilize other macro (K) and micronutrients (Fe, Ca, Mg) present in the soil, which would otherwise be blocked. In this way, both nitrogen, phosphorus and other macro and micronutrients can be used efficiently in crop nutrition.”

Regulation of these biological products varies and is in a state of flux. The Plant Biostimulant Act looks to establish a regulatory framework to clear the path for research and development and use. An important feature of the Act is that it would officially define plant biostimulants and explicitly exempt them from regulation under the Federal Insecticide, Fungicide, and Rodenticide Act. If there is to be a successful transition from traditional crop treatment option, it is in the best interest of regulatory bodies to support initiatives that encourage adoption of biologicals, both with clarity and space for adequate statistically backed research.

Those with a strong voice are speaking on behalf of change. Secretary of California Department of Food and Agriculture (CDFA) Karen Ross has been a valued ally to protect and promote California agriculture. In her continued support to “strengthened partnerships across government, academia and the non-profit sector in the drive to maintain and improve environmental stewardship and to develop adaptation strategies,” Ross will be a featured speaker at the Salinas Biological Summit in June.

The CDFA has outlined a few labeling guidelines for biologicals, stating, “If biotics are guaranteed, FFLDRS requires the following additional information per Section 2304 of the CCR: 1. Species name of each microorganism, name of each enzyme, or organism by-product, if claimed, as part of the statement of composition. (Provide the full name, not abbreviations) 2. Active Ingredients: a. Microorganisms: number of viable units per mL or g. (e.g. 100 CFU/mL) b. Enzymes: concentration in activity units per mL or g. (e.g. 100 u/mL) c. Organism by-product: concentration in percent by weight. (e.g. 10%).” As support for the need for an established definition of the term biostimulant, the CDFA states that, “There are no official definitions for the following terms. They are considered misleading and are not allowed on fertilizing material labels: Balanced, Biostimulant, Stimulant, and Complete.”

The Salinas Biological Summit also is a response to the investment interest within the agricultural industry. Venture capitalists are drawn to the shift to the biological solution entrepreneur arena, with billions already having been invested in startups. Agtech investment leader Kirk Haney, the Co-Founder & Managing Partner at Radicle Growth, is looking to continue his effort to accelerate the development and adoption of sustainable solutions within the industry at the 2023 Summit. His insight gained from extensive startup and investment experience—on both sides of the effort—is an invaluable resource for startups and growers alike. And innovation in agriculture can’t happen without grower expertise and guidance. One of the grower representatives speaking at the Summit is Don Cameron, Vice President and General Manager of Terranova Ranch, Inc. Cameron is driver of change and adaptation to a shifting environment. His input and guidance for what’s to come will have unprecedented value.

The Salinas Biological Summit is designed to draw venture capitalists, entrepreneurs, growers, policy makers and researchers together to connect and learn. It is these participants who will work together to find the way forward for biological solutions. This event will mark the beginning of the impetus that will shape development in the years to come.

The possibilities for progress and opportunity within the realm of biologicals is as plentiful as the environment itself. Thomas Edison once said, “We often miss opportunity because it’s dressed in overalls and looks like work.” Fortunately for everyone who relies on the fresh produce industry, those who work to grow food aren’t put off by overalls or work, so the opportunities won’t be missed.

For more information and to purchase tickets, please visit www.salinas-summit.com

All in the Family: How The Wonderful Company and Other Ag Industry Leaders Support Their Communities Through Education

May 1st, 2023

As far as the whole story of agriculture goes, farming is just the beginning.

The rows of leafy-green heads of lettuce or carrot greens is the scene opener to a much grander narrative. The farm is the start and the wellspring around which communities are created, mirroring the growth of the product that brought the people to the rural regions of the United States.

In an industry where many things can be debated, one thing rarely, if ever, is: A farm isn’t a farm without the people who make it happen.

It requires a lot of people to feed society. The individuals who contribute their effort and expertise to getting food into stores and into people’s homes exist within a valuable network. Within the network that stretches out from agricultural businesses are spouses who create and support other businesses and children who are growing and learning.

For most employees, the main driver of their hard work and refined expertise is to provide for and support their families. This means that the communities around farm organizations are just as important as the people who make it all work. Investing in the communities that have grown around agricultural businesses is a recognition of the network of people who make the industry possible.

Providing support for the education of the community is the rising tide that lifts all boats. As the school year ends, it’s important to recognize that giving the next generation resources for success is a foundational philanthropic effort for ag industry leaders. Organizations like The Wonderful Company, Taylor Farms, Grimmway Farms, HMC, and much more have recognized the importance of that support.

Their philanthropic endeavors support and encourage all forms of career and development paths and include additional resources for those who want to continue and build upon their family’s legacy within agriculture. Few are as well-equipped as those who have been raised within the very communities that have fostered the industry’s past successes, to truly grasp, empower and navigate the future trajectory of ag.

The Wonderful Company partners with Wonderful College Prep Academy (WCPA) to provide children in the Central Valley an opportunity to attend great schools, learn valuable skills, earn college degrees and launch rewarding careers. By providing support for the WCPA charter network and running two preschools, an innovative Career Pathways Program, and a college scholarship program—all free to students and their families—Co-Founders Lynda and Stewart Resnick are reinventing the educational experience and directly supporting over 5,000 students across the region.

“Today’s children are tomorrow’s citizens,” said Lynda Resnick, Vice-Chair and Co-Owner of The Wonderful Company, “and we’re determined to make sure the next generation in the Central Valley not only excels in academics, but that they also use their passions to ignite change in the communities where our employees live and work. A quality education must be equitable and inclusive, so that every child can gain the skills and earn the credentials needed for successful, fulfilling careers.”

Pre-College Support

To start students in Delano, Calif. and Lost Hills, Calif. on the right track, Wonderful established two nationally accredited, year-round preschools that are open 12 hours a day. They are nurturing, play-based environments for children ages 3 to 5, preparing them for elementary through high school and beyond.

In high school, WCPA helps students become college- and career-ready with their Career Pathways Program, where students can take community college courses right away and graduate with associate degrees in agriculture and health care. The flagship Ag Prep was the first of its kind in California. It now serves 1,400 students from ninth through twelfth grade and encompasses the partnerships of WCPA, seven public high schools and three community colleges.

Taylor Farms provides scholarship and mentor programs for the children of their employees. “We are committed to a vibrant America with education as the foundation for opportunity,” said Bruce Taylor, Chairman and CEO of Taylor Farms.

Other organizations like HMC Farms focus efforts on providing schools with support for school gardens around California along with lesson plans to local schools in farming and healthy food choices.

College Support and Scholarships

For many students in agriculture communities, they are or will be the first generation in their family to obtain a college degree. Grower organizations have created multi-faceted ways to help these students succeed.

At Wonderful, Lynda and Stewart Resnick have provided over $22 million in scholarships to over 2,000 graduates of employees’ children, Agriculture Career Pathways Programs, WCPA and first-generation college students from Shafter, Calif. whose parents work in agriculture or logistics. Each student receives up to a $30,000 scholarship and also individual coaching support through their college journey. Today, Wonderful supports almost 1,000 college students and awards 300 more annually.

To date, Taylor Farms has awarded $3.1 million in scholarship funds. These scholarships are given to the children of full-time Taylor Farms employees, and they are given with the intent to continue throughout the student’s academic career. Taylor Farms partners with the Community Foundation for Monterey County to facilitate the application process and award distribution for students to pursue undergraduate and graduate degrees.

Grimmway Farms also supports the children of their employees with their scholarship program. Their scholarships are awarded based on academic achievement and are renewable for four years. Students who exceed a 4.0 GPA are awarded a Macbook Pro laptop in addition to their scholarship fund. In the years between 1997 and 2020, “Grimmway supported more than 740 students through scholarships totaling over $2.15 million in funds.”

Career Support

Agriculture is a rapidly advancing industry, and more and more skilled employees are needed every year. Tasks that were once manual are now or will eventually be managed by someone who has a strong STEM background.

Along with financial support through its scholarship program, Taylor Farms also offers a mentorship program. Each scholarship recipient is partnered with a Taylor Farms employee who will serve as a mentor, “helping provide invaluable resources to mentees both personally and professionally.” This creates an easy transition into learning the applicable high-level skills participants will need.

This past year, a record-breaking 130 Wonderful Education scholars graduated from four-year universities. More than 75 percent expressed their intention to return to the Central Valley after college to become the next generation of leaders in the region, and over 44 exceptional Wonderful Education scholars have received job offers to work across various businesses of The Wonderful Company. The Wonderful Company is committed to providing the next generation with the best possible work environment and opportunities for growth.

The Future of Agriculture

So many members of these communities, from the employee on the field to the student studying at home, are making great strides and accomplishing much for their communities and for the nation’s food source without expectation of praise or recognition. But they are the future of both agriculture as well as other industries. As Lynda Resnick said: “Our children have so much to contribute to the world and, thanks to them, I know our future is bright.”

What the Farm Bill Means for Specialty Crop Growers

May 1st, 2023

January 2023 started the year with a dramatic entrance for much of the U.S. West. This new year is just one part of the story of years of unprecedented challenges with climate, pandemic-response regulations and policy changes, to name a few, creating a broad horizon of issues the Agriculture Committee leadership in the U.S. House of Representatives and the U.S. Senate have to consider for the next U.S. Farm Bill renewal. Though much of the Farm Bill addresses challenges faced by row crop farmers in the Midwest, produce growers in the Western U.S. have much at stake when it comes to what is and isn’t included in the Farm Bill revisions.

The U.S. Farm Bill renewal process has been open for comments and suggestions since 2022. The reoccurring cycle of the Farm Bill is an opportunity to calibrate to circumstances that drastically shift from year to year while also anticipating the issues of the future. Every suggestion is a paver stone in the road that will hopefully be implemented into the bill to create an infrastructure that will be strong enough to support the heavily tread path an industry must use for many years to come.

Creating a system that ensures food security is a non-negotiable necessity to a successful society. It is in a nation’s best interest to integrate suggestions from those who produce food to safeguard productivity and survivability. It’s impossible to know the future, especially in an environment where the prominent predictable feature is its unpredictability. Drought, floods, hurricanes, fires and other natural disasters loom over crops and production every year. This gauntlet of environmental challenges in conjunction with disruptions to the supply chain, rising competition from low-cost imports, labor shortages, food safety precaution costs and variable tariff regulations make navigating the terrain difficult for growers and far more precarious than those perusing the produce aisle at their local grocery store could ever imagine.

To help guide the considerations of the U.S. Farm Bill renewal, the Specialty Crop Farm Bill Alliance (SCFBA), a national coalition of more than 125 specialty crop organizations representing growers of fruits, vegetables, dried fruit, tree nuts, nursery plants and other products, released its recommendations in February 2023. According to the co-chairs—Dave Puglia, President & CEO, Western Growers; Kam Quarles, CEO, National Potato Council; Mike Joyner, President, Florida Fruit & Vegetable Association; and Robert L. Guenther, Chief Public Policy Officer, International Fresh Produce Association—in a joint statement, these recommendations “are the most comprehensive and ambitious in the two-decade history of the Alliance. Their implementation will enhance the competitiveness of the U.S. industry for years to come.”

Complexities in the specialty crop industry have ramped up considerably over recent years, and the 109 specific recommendations covering eight Farm Bill titles within the SCFBA recommendation document reflect those growing areas where support and policy adjustments are required. A few of the key points of focus for WG are automation, food safety, pesticides, climate change and safety net reforms.

A growing global population and a declining agricultural workforce means that building out automation to optimize the expertise and effort of the workers managing operations is necessary. According to the SCFBA recommendation document, “Advancing research and development activities to overcome existing and upcoming research challenges in specialty crop agriculture will require acceleration of novel, early-stage innovative agricultural research with promising technology applications and products.” A drag on the adoption process has occurred because of high investment cost of emerging technologies. Utilizing new automation options is a risky financial proposition, and many organizations already navigating a complex business are hesitant to shove their chips to the center of the table. Western Growers is very familiar with these challenges given our years of work within the Innovation Center in trying to identify and help promote start-up companies, including many in this space. The SCFBA suggests that utilization of mechanized options will accelerate if the up-front financial cost is mitigated through private-public partnership: “Mechanized and/or automated solutions are arriving in the marketplace but are often not adopted quickly as industry best practices because they are expensive and unproven and require significant grower investment. Congress should establish a reimbursement-based cost share program within the Agricultural Marketing Service (AMS) exclusively for specialty crop producers who are seeking to increase efficiency by investing in mechanized and automated agri-tools.”

Food safety is a priority for growers, regulators and consumers. To strengthen food safety processes, those within the agricultural industry encourage government support and education over penalties to ensure compliance. While food safety is within the primary jurisdiction of the FDA not USDA, the Alliance believes technical assistance and research relating to the Food Safety Modernization Act (FSMA) is vital and something the Farm Bill can help with. “Technical assistance for producers as well as additional research into helping producers comply with FSMA are still needed,” the document states. “Changing environmental conditions, stemming from less predictable and more severe weather, coupled with an increase in ‘mixed use’ agriculture (where animals and crops are grown in close proximity to one another) impact how and where human pathogens survive in the environment which subsequently impacts fresh produce safety.” The assistance provided to ensure food safety in the event of unpredictable circumstances—like the flooding that resulted from multiple storms throughout California—should be based on sound science. This initiative of reliable scientific support can be enhanced by providing additional funding to the National Institute on Food and Agriculture (NIFA) to conduct produce safety research focused on helping producers comply with FSMA obligations. Once best management practices for the wide variety of crops in our sector are identified, we then need to make sure that information is shared widely through vehicles like USDA cooperative extension service.

The shift toward alternatives to conventional pesticides varies in intensity from mandatory regulatory changes to consumer calls to action. Much like the up-front demand of automation, a shift to alternatives is risky and costly. Utility and response of these products doesn’t have the robust track record of traditional products, and the process of switching is going to be a careful process. To navigate the forthcoming changes, the SCFBA proposes that additional resources we provide the IR-4 program run by USDA. This program is dedicated to providing new crop protection tools to specialty crop growers and is chronically underfunded. With growing pressure on existing crop protection tools, we need more research into next generation products for our sector.

A changing climate is creating more volatility to an industry that relies on conducting business based on shifts in the environment. While many specialty produce operations work to remain flexible and adaptive to these changes, the Farm Bill should work with the industry to acclimate to changes. For a cohesive and mutually beneficial system, “Conservation programs should remain voluntary, and climate change should not be used to mandate conservation production practices…Conservation programs should be multi-resource focused even if climate is the issue of concern.” In particular, given the huge long-term drought problems we face in the West, conservation programs run by USDA must help make farms more water resilient.

Over the last few years, growers have experienced a huge amount of shock to their farms as a result of things like trade conflicts with China or significant drought or market collapse due to COVID or flooding. One of the strongest urgings for addition in the upcoming Farm Bill revision is to establish a better safety net for producers because many of these issues have been dealt with via unpredictable disaster bills. Rather than having unbudgeted and potentially inconsistent disaster bills, Congress wants to improve the safety net for producers. For our industry, that means we need to focus on creating better crop insurance programs. For about half of our industry that already have crop insurance, the Alliance wants to look for ways to improve programs. For the half that doesn’t have crop insurance but would like to get assistance, the Alliance is focused on opening up new opportunities for insurance coverage. Providing safety nets to protect the specialty crop industry is an added level of security and support that can help establish a firmer ground under the feet of specialty crop producers during a time when things appear to be getting more treacherous.

Deciding what will make its way into the Farm Bill changes is no small task with so many needs and requests being heard by representatives in the U.S. House of Representatives and the U.S. Senate. Western Growers has a team on the ground in Washington, and working with other produce industry allies, we are pushing to make changes like the ones noted above real. The Farm Bill is always in flux as new challenges arise and need to be addressed every few years. For our part of the agricultural industry, many of the issues we face are new and unprecedented and demand changes and new ways of operating. For the future of providing fresh and healthy food to people, it’s worth investing in the road to success now.

WG Director Profile: Kyle Richardson, President, Garry Richardson Farms

May 1st, 2023

Kyle Richardson, President, Garry Richardson Farms

Director since 2022  |  Member since 2016  |  D-9 Kern County/Bakersfield

Kyle Richardson comes from a family with a strong work ethic, innovative ideas and rich traditions. As a third-generation farmer, these values have enabled Richardson to thrive in a position of leadership and influence among the agricultural community.

At present, Richardson is President of Garry Richardson Farms, a leading grower of organic and conventional citrus in the southern part of California’s Central Valley. Founded by his father Garry, the farm began with cultivating late-season peaches on 160 acres of land in 1990. In 2010, the team decided to shift gears and expand its focus on growing conventional and organic citrus.

Richardson was elected to the 2023-2024 Western Growers Board of Directors last fall, making it his first time serving on the board. To his benefit, Richardson is no stranger to Western Growers leadership. Richardson is part of an earlier graduating class of Future Volunteer Leaders, a two-year program that enables members to gain access to specialized networking and agricultural leadership development events within Western Growers, including standalone farm tours with Western Growers board members and training with the organization’s subject matter experts.

“Because I was part of this program, I already had a solid understanding of how things worked on the board,” Richardson said. “I had the opportunity to sit in on board meetings with Western Growers leadership and other future volunteer leaders. It was great to meet new people and learn from them, getting to really see what they do and compare it to what I was already doing and used to. It was good to learn from and work alongside a diverse group of people,” he said.

Richardson knew early on that the family farming business was something he wanted to pursue and spent his summers and spring breaks assisting on the family farm. “I was always given special projects during what would be spring break for most. And in the summers, it was always a grind and I was always working,” Richardson said.

Richardson received his undergraduate degree in Agricultural Business from California Polytechnic State University, San Luis Obispo. “My father gave me more responsibility after I graduated college, which was a great learning experience,” he said. “After I graduated, we started planting easy-peel mandarins, which has been a ton of work. We’ve since taken a few trips to Spain to expand our knowledge on how to successfully grow them.”

And when things started to slow down a bit after the COVID-19 pandemic hit, Richardson took the opportunity to go back to school, receiving his MBA from the University of Southern California in 2022.

Richardson has also been a board member of the Wheeler Ridge-Maricopa Water Storage District for the last four years. He said Garry Richardson Farms has been fortunate in avoiding the array of challenges associated with recent heavy rainfall and floodwater. “Luckily, because we’re in the southern part of the San Joaquin Valley, we haven’t seen widespread flooding or anything of that nature. There have been road closures, but nothing has been washed out like what I’m seeing happen to other farmers in the Tulare Lake Bed. We’re very fortunate that we’ve been spared,” Richardson said.

As one of the newest Western Growers board members, Richardson said he’s most looking forward to helping make decisions that positively impact his local community and other growers in Kern County. “What benefits my community will benefit the rest of Western Growers membership. My focus is to do what’s best for our members, whether it be working on water availability or working on improving labor challenges. There are a lot of really important issues, both big and small, for our members in the four states we cover,” Richardson said.

Three Keys to Success in the Biologicals Space

May 1st, 2023

There is a lot of discussion about biological solutions in agtech these days at trade shows and in ag media, and with good reason. The use of chemical inputs to help manage pests and disease is under massive regulatory pressure from both Sacramento and D.C.—in many cases following the playbook western Europe is already using. Restrictions that could result in reduced use or outright bans are currently being considered in many places. Investors see the pressure and are looking for innovations that can help produce new solutions that can help to reduce the usage of chemicals, increase the efficiency of the chemicals that are used, and adjust the portfolio mix toward biological solutions. Startup founders can see the tailwinds being created and are starting to innovate new solutions in labs and universities to help speed things up.

When there are this many tailwinds working in favor of a single agtech segment, it is always good to start making sure we define the segment with some specificity for two reasons. First, it helps legitimate players innovating in the space define it narrowly to keep faux players in the space out. Second—and this is equally important—it helps investors know that the legitimate innovators are going to pitch for funds with a clarity about what the space is and what it is not.

Both groups benefit from a very clear definition. This is why biologicals, having achieved the first target of being a hot segment with tailwinds, now must be clearly defined to help startups and investors who are trying to innovate and invest in the segment identify each other. If we get this right, we can help support the momentum of a hot space. If we get it wrong, we run the risk of creating the next CEA (see the carnage and fire sales in that space recently?) or alt-protein (anybody heard anything good about Beyond or Impossible burgers lately? As I’ve said before, with enough cheese and bacon I can choke one down but they still lose on taste and price for me so I’m just not that into them) and blowing through an awful lot of venture capital money with not a lot to show for the effort.

Here’s the key to defining the space: we can’t let startups and investors use “biological” as a descriptor for an agtech segment. It’s actually a descriptor for multiple spaces. Think about the problem we are trying to solve with biologicals—it includes everything from genetic innovations that help plants resist drought and disease to soil health solutions that measure and improve any number of metrics that can improve soil health to biofertilizers and biostimulants that encourage more growth and yield. That’s at least three different segments: genetics, soil health and inputs (each of which naturally breaks down into its own set of segments.) It’s understandable why startups from any of the segments would want to label themselves as biological solutions when the tailwinds above are getting more obvious daily to investors, and even potential customers, as regulatory pressures mount to start replacing chemicals with…biologicals (loose definition.)

Two things can be true at the same time. Western Growers and our membership will continue to advocate for science-based usage of chemical inputs while working hard to help support and scale innovators as the new solutions iterate and improve enough to continue successfully fundraising and getting products in a ready position for scale and international market entry. Attempts to go entirely without chemicals would likely lead to results like Sri Lanka (organic mandate results in lower yields, mass starvation due to lack of import capability, and becomes a significant factor in a government overthrow less than 18 months after the executive order was signed) or the Netherlands (government decision to use tax dollars to shut down 3,000 livestock operators under the guise of EU greenhouse gas emissions reductions resulted in a just-formed political party taking the most seats in the recently contested election, sending a clear signal that it wasn’t just farmers that were unhappy with the strong-armed approach that could and should have been driven by innovation instead of regulation).

So with all the tailwinds, everyone in the agtech ecosystem (that includes growers, investors and industry groups like Western Growers) has three jobs for biologicals.

First, if a startup says they are in biologicals, ask which part of biological solutions—genetics, soil health or inputs? Second, once the sub-segment is identified, ask what specific problem, or budget line item, the startup’s solution helps improve from a grower economics perspective (always helps when they can tie it to a specific line item on the financial statements). If these sound a lot like two of the first steps used in Lean Startup analysis, they should, and that’s the third job. Make sure that all biologicals startups are pushing their thinking through Lean Startup (aka Lean Canvas if doing Google search to identify the easy-to-use tool implementation of Lean Startup methodology) which will force them to think hard about the use case, problem statement and economic model they should pursue.

If we can do that for all biological startups, we will help them avoid bad R&D paths and ideally improve their chances of fundraising and/or successful fundraising depending on where in their life cycle the startup is at when you meet them. Pay it forward, folks. Startups are hard, we can help avoid some unforced R&D errors and wasted capital with these three simple steps. Helping everyone understand which biological solutions are dessert toppings and which are floor waxes is good for everyone in the long-term.

PHM: Prioritizing Employee Health and Wellness

May 1st, 2023

Healthcare costs employers billions each year through medical premiums and missed workdays. Yet, for the top causes of those escalating costs—high blood pressure, diabetes, smoking, physical inactivity and obesity—the best medicine is often lifestyle change. Most employees, even if they want to make healthy changes, simply don’t have the tools or support to do so. Employees who would be open to changing their diet, for example, may not know what changes to make for their specific health condition and well-meaning doctors often aren’t able to offer specific guidance.

This is where the Pinnacle Health Management (PHM) Wellness Program can make a difference. PHM Wellness focuses on helping clients change their lifestyle habits before they run into major health problems or make proactive changes after they’ve begun to experience health problems to improve their health outcomes.

PHM Wellness does this through evidence-based programs that focus on the four pillars of health: nutrition, fitness, quality sleep and stress management. By making positive changes in these areas, clients can make measurable changes to their overall health. Just as every employee has different needs, so do employers. With PHM Wellness, employers can choose from different wellness program offerings to meet the needs of their workforce and improve their bottom line.

The variety of PHM Wellness programs include coaching as well as educational initiatives, all of which invite participants to take charge of their health and lead more balanced lives.

Through individual coaching, employees can work on their health goals and focus on one or more of the four pillars of health or weight management. They get the support of a knowledgeable coach who will craft a personalized health plan and hold them accountable, while helping them navigate challenges. Our clients have lessened their need for medication, lost weight, started exercising, and improved their mindset and overall wellbeing through coaching.

Quarterly wellness challenges dive deep into different aspects of wellness. These are broken down into simple weekly emails and mini-challenges that provide practical tools to help participants make small, but sustainable habit changes. Employees are invited to participate, challenging themselves to create new healthy habits, with a chance to win prizes at the end. Participants get to share their experience through end-of-challenge surveys, helping us to continually refine our offerings.

Our newest initiative, a monthly podcast called To Your Health, features conversations with wellness leaders, who share the latest science in wellness and best practices for building healthy habits. This is not the same health information you learned in school. Each episode goes beyond much of the outdated idea of “healthy” we’ve come to know and taps into what it means to live a balanced, happy and healthy life. Guests are established in the health and wellness field, from lifestyle and functional health physician Dr. Jay Benson to Dr. Eric Smith of the TLC show 1,000-Lb. Sisters.

We also share a variety of educational materials to support employees in creating healthy habits. Our monthly webinars include practical tools employees and their family members can apply to their life. Past webinars have focused on sugar and its effect on our health as well as tips to navigate the Daylight Saving Time change. Monthly Wellness and Safety Toolkits cover topics, such as tips for shopping at the grocery store to sun safety. The quarterly Fresh Air newsletter features seasonal tips on health and wellness, such as sticking with exercise during the holiday season.

All of our programs are inclusive and meant to support employees making healthy changes they can stick with for the long-term.

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

WG Science: A Plan of Action for Sustainability and Resiliency

May 1st, 2023

For anyone who desires such an impossible task, irrigated agriculture will readily bestow the challenge of farming in an increasingly hotter, drier landscape, with the stipulation of decreasing water and crop inputs for the foreseeable future. Despite this impossibility, our growers continue to build healthy soils and pioneer innovative solutions, while providing safe, affordable and nutritious fresh food with great efficiency.

Nearly every climate modeling scenario that limits warming to 1.5° C (34.7° F) requires farmlands and soil on working lands to draw down carbon. Moreover, this undertaking must be accomplished amidst droughts, floods, emergent pest and disease pressure, and a changing social climate. One thing is clear: growers are answering to more stakeholders than ever before, and the stakes keep getting higher.

However, our growers are invested in stewardship of our land and stewardship of our soil. We protect and enhance soil health knowing that healthy soils can absorb and retain more water, help restore aquifers and sustain biodiversity, while supporting crop yields and farm profitability. Farmers are adaptable and pragmatic. If they see something that works, they will adopt it. After all, it was our growers who took the charge on groundwater recharge practices and incorporated cover cropping and organic matter into growing systems. The rewards of these investments are evident as we continue to build healthy soils with great care for the land, water, air and people.

This past March, I joined the Western Growers science team as Environment and Climate Director. In this newly created role, I am focused on supporting our members to take on the challenges of the current and future agricultural climate.

My areas of focus include:

  • Engagement: Facilitating dialog with industry stakeholders on crop inputs, integrated pest management, water quality, resource conservation and climate response
  • Prospect: Identifying development and application of drivers for climate-smart field practices, and opportunities in key focus areas, particularly soil health
  • Advancement: Developing and sharing outcomes of environmental performance initiatives implemented by our member operations
  • Support: Promoting best practices for climate adaptation, resiliency and risk management

Sustainability looks to the future to fulfill the needs of current generations without compromising the needs of the next generation. Resiliency, on the other hand, accounts for the extremes, to withstand adversity and recover from disaster effectively. My aim is to identify achievable and economically feasible resilient solutions, going beyond sustainability to build a more collaborative, science-backed and productive space for our growers and members.

With the diversity of challenges yet to come, it is imperative that we move forward with purpose. This includes supporting investments in improved infrastructure to better prepare for drought and flooding risks before disaster strikes. Additionally, identifying and filling research gaps for necessary pest control and environmental compliance options to provide support for science-backed recommendations, and leveraging data to support our grower network. Lastly, seeking out opportunities that further support our growers to build and maintain healthy soils. Despite a seemingly impossible task, to take on the challenges of farming, our farmers will continue to be invested and resilient, for years to come.

The Unbridled Disregard of California’s Employers

May 1st, 2023

At the time of this writing, we are well into the first year of this new two-year legislative session. WG staff have met with the new legislators, as well as their staff, and have been very busy advocating for and against proposals that will impact our membership. “Working the bills” has its own set of rules and rhythms. There’s a general order for assigning specific bills to specific committees as well as Assembly and Senate Floor deadlines to meet. Many long hours are spent in hearings waiting in the queue to testify. This time has given me some pause to really consider what has been nagging at my core these past few years. It’s not so much a feeling as it’s a logical fact and not one that sits well with me.

California is not so much in a war with employers as they try to disregard them with destructive legislation and woefully ill-considered regulations. I differ on the use of “war” because history has shown times where war has been justified. “Disregard” signals more a lack of interest and due respect about the impact that new policies will have on our state’s employers, including farmers. This disregard likely comes naturally for some government officials because many have no business background. It’s also because labor has a tight grip on the Capitol. This tendency to try and sideline business concerns is evidenced in the sheer number of anti-employer bills that are introduced each year as well as ongoing attempts to eliminate good governance requirements like California’s Standardized Regulatory Impact Assessment (SRIA).

The SRIA is a statutory requirement wherein proposed regulations that are anticipated to have a $50 million or more impact on business and individuals within a 12-month period have to undergo a much more in-depth economic analysis as part of the rulemaking process. This only makes sense because the economic consequences are real and may impact other operational and regulatory requirements with which companies already have to comply. The SRIA was meant to help govern a regulation and allow for a more surgical review of the language; it would determine if perhaps it should be narrowed or clarified so as to minimize impacts. Unfortunately, labor has been trying to remove this requirement from the Cal OSHA process.

I just witnessed another glaring example on a Senate bill regarding air quality. It directs local air districts to only focus on the socio-economic impacts of their rules on families making less than $100,000. I guess the state doesn’t care about other working families who may earn more than this arbitrary number. What about businesses? This phrase in the bill is truly astounding: The bill would change the definition of “socioeconomic impacts” to, among other things, “remove from consideration the types of industry and business, other than small business, that is affected, to remove from consideration the impact of the proposed change on the economy of the region affected…”.

This phrase identifies two emerging concerns within California government. One, we don’t need to hear from employers or pay attention to their economic impacts and two, the myopic focus of climate change has led to disavowing a need to even consider the regional economy. Is it acceptable for people to suffer economically as part of a piecemeal, scattershot approach to try to make the air clean? We shouldn’t be surprised by this. In the early days of COVID-19 when a vast majority of Californians worked from home, climate activists rejoiced in the clean air caused by fewer cars and trucks on the state’s roadways. No matter that many lost their livelihoods as a result of the stay-at-home order.

Not all is lost, however. WG advocates push back aggressively on these types of policies all the time and we’ve been largely successful. Consumers, employees and employers will not be successful if the true economic costs of a proposed regulation are specifically exempt from consideration. Economics matter. They always have and they always will.

Navigating the Pros and Cons of Employment Arbitration

May 1st, 2023

Employment arbitration is an alternative dispute resolution mechanism where employees agree to resolve their disputes with their employer outside of a court. The use of employment arbitration agreements has become increasingly common, and most attorneys (including this author) advise employer clients that it’s generally better to have them than not. However, despite the oft-promoted advantages, there are also some practical disadvantages of employment arbitration that must be considered.

Arbitration of PAGA Claims

The question of arbitrability of representative actions under California’s Private Attorneys General Act (PAGA) remains very much in flux. The California Supreme Court has granted review in Adolph v. Uber Technologies, Inc., on the question as to whether an aggrieved employee who has been compelled to arbitrate claims under PAGA that are “premised on Labor Code violations actually sustained by” the aggrieved employee maintains standing to pursue “PAGA claims arising out of events involving other employees” in court or in any other forum the parties agree is suitable. The U.S. Supreme Court left the door open for the legislature or the California Supreme Court to settle this question of standing. The California Supreme Court is expected to render a decision on that issue by early August.

With the caveat that the value of arbitration agreements in PAGA collective-action claims remains an open question, let’s explore the practical advantages and disadvantages of employment arbitration.

Advantages of Employment Arbitration

One significant benefit for arbitrating workplace claims is that it can save significant amounts of time and money. In single-plaintiff cases, arbitration is generally less expensive than a jury trial. Extended jury trials can be costly in terms of attorney time spent preparing for trial and participating in pre-trial matters before the court. Arbitrations are typically resolved much more quickly than similar cases navigating the court system. Shortening the time to get to a merits hearing versus a jury trial can save employers substantial legal fees.

Employment arbitration agreements typically include class action waivers. Class action lawsuits can be extremely expensive for employers and can result in significant damages being awarded to plaintiffs. A class action waiver can effectively prevent this type of litigation from occurring. Instead, employees would need to pursue their claims individually, reducing the settlement value of the case.

Arbitrations generally provide for more predictable outcomes. In a courtroom, a jury may be swayed by emotions, prejudices, or other factors that can influence the outcome of a case. On the other hand, arbitrators, many of whom are retired judges, are trained to make impartial decisions based solely on the facts of the case. This can lead to more consistent and predictable outcomes for both employers and employees. The lack of a potential runaway jury also has the advantage of reducing settlement values.

Disadvantages of Employment Arbitration

Although arbitrations are generally cheaper than jury trials, arbitration costs have skyrocketed over the past few years. Unlike litigation, employers must bear almost the entire cost of arbitration, including the fees of the arbitrator, which can reach $60,000 or more. Moreover, several months before the arbitration hearing date, the employer will be invoiced by the dispute resolution service provider for a deposit in the amount of the entire anticipated cost of the arbitrator’s fee. While initially refundable, the deposit becomes nonrefundable as the date of the arbitration hearing quickly approaches. Under California law, if the employer fails to timely pay the initial filing fee or the arbitrator’s fee, the plaintiff can automatically compel the case back to court. Furthermore, there is typically no opportunity for employers to recoup these costs from the losing party. Therefore, unlike traditional litigation, arbitration may impose significant additional fees and costs.

Arbitrators are far less likely than courts to grant dispositive motions which could result in dismissing the entire case, or part of the case. While courts are compelled to clear cases lacking in merit from their dockets, arbitrators are not similarly incentivized. Rather, arbitrators are paid by the hour, and financial considerations may factor into an arbitrator’s decision to not consider or grant a dispositive motion.

Additionally, unlike litigation in court, the scope of appellate review of an arbitration decision is limited. Under the Federal Arbitration Act, a court is permitted to vacate an arbitration award only when it “was procured by corruption, fraud, or undue means,” when “there was evident partiality or corruption in the arbitrator,” when the arbitrator engaged in certain specified misconduct, or when the “arbitrator exceeded their powers.” As a result, courts are reluctant to disturb an arbitrator’s award or provide a forum for the parties to relitigate facts.

Lastly, arbitration agreements can be difficult to enforce. In California, enforceable arbitration agreements must contain numerous employee-friendly provisions, ranging from mutuality of remedy, to the prohibition against limitations on relief, to the assurance of allowing sufficient discovery (fact-finding) to satisfy due process concerns. This means that employers must carefully draft their arbitration agreements to ensure that they are legally enforceable.

To Arbitrate or Not to Arbitrate, That is the Question

Whether employment arbitration agreements are a benefit to California employers is a close call, made more so by the rapidly evolving case law on the arbitrability of PAGA claims. While employment arbitration agreements can provide significant benefits, they can be difficult to enforce, and arbitration can have significant drawbacks. Ultimately, employers must weigh the benefits and drawbacks of employment arbitration agreements and consider whether compelling arbitration makes sense under their individual circumstances. Such considerations should be conducted in consultation with experienced employment law counsel.

Navigating Disputed Contracts for Fresh and Frozen Produce: The Significance of PACA Formal Decisions

May 31st, 2023

In the realm of disputed contracts for fresh and frozen produce, the WG Trade Practices department plays a crucial role in representing shipper members. Frequently called upon to provide written justifications for suppliers based on specific sections of the PACA regulation, it is important to recognize that while these regulations define terms and outline responsibilities within the supply chain, not all situations can be easily resolved by referencing statutory language alone. Given that the PACA regulations were established almost a century ago, their interpretation continues to evolve. Consequently, PACA Formal Decisions have emerged as essential tools, establishing precedents and offering ongoing PACA guidance for future disputes and trade practices.

Exploring a PACA Formal Decision: One notable PACA Formal Decision focuses on two separate shipments of romaine hearts involving the same seller and buyer. This decision serves as a significant precedent in PACA-related matters. Let’s delve into the details of this decision to better understand its impact.

The First Shipment: The initial shipment involved 1120 cartons of romaine hearts, sold under FOB terms, originating from California and destined for Pennsylvania. In this particular case, it was ruled that the shipper was not informed that the transportation method for the romaine hearts would be intermodal (rail) rather than traditional trucking. As a result, the shipper’s responsibility to guarantee the romaine hearts’ suitable shipping condition, ensuring they reach the destination without abnormal deterioration, was waived. Given that the shipper was unaware of the chosen mode of transit, resulting in an extended transit time, the buyer’s claim of the shipper breaching the suitable shipping condition warranty was dismissed. Consequently, the buyer was obligated to pay the full agreed-upon purchase price to the shipper.

The Second Shipment: In the same PACA Formal Decision, the second shipment of romaine hearts, also transported from California to Pennsylvania, was examined. This shipment, like the first, was sold on a FOB basis, with good arrival standards applying. The dispute, in this case, revolved around the exclusionary language concerning “bruising and/or discoloration following bruising.” The Decision concluded that the exclusion of this condition factor had become widely accepted in the produce trade when it comes to lettuce sales. Furthermore, it was established that the exclusionary language was clearly stated and disclosed on the shipper’s invoice. As the buyer did not raise any objection to this exclusion, the terms documented on the invoice were considered strong evidence of the agreement between the parties. Thus, the buyer was obliged to pay the shipper in full, as the remaining condition factors specified in the USDA inspection did not exceed the threshold of good delivery standards.

The Significance of PACA Formal Decisions: As an industry, we collectively rely on USDA Formal Decisions, as they set precedents and offer evolving interpretations of the PACA regulations. They serve as invaluable roadmaps, guiding sellers and buyers of fresh and frozen produce through complex disputes and trade practices.

In conclusion, the role of PACA Formal Decisions cannot be overstated. These decisions establish precedents, interpret regulations, and provide ongoing guidance for the industry. By understanding and leveraging these precedents, both suppliers and buyers can navigate disputed contracts with greater clarity and confidence in the fresh and frozen produce trade.

If you have any questions or concerns, please reach out to me directly at [email protected] or 949.885.4808.

Produce Wars: PACA Law Update Webinar

May 31st, 2023

Get debriefed on skirmishes among PACA trust creditors, disarming non-dischargeability possibly before SCOTUS, and factoring companies – friend, foe or frenemy? In this one-hour webinar, moderator Bryan Nickerson, Manager, Trade Practices at Western Growers, and PACA attorney June Monroe from Fennemore, LLP, take you through a short basic training and a full debriefing on recent PACA court decision impacting the fresh produce industry.

Join us Wednesday June 21,2023 11 am – 12pm PST

Register here! 

An End to The Controversy Surrounding California’s AB 51

May 25th, 2023

California’s attempt to prohibit the use of employment-related mandatory arbitration agreements has been a long and ongoing battle. The latest scrimmage stems from the 2019 legislative session which produced AB 51. Signed into law October 2019 and effective (for a short period) beginning January 1, 2020, AB 51 prohibited an employer from requiring any applicant or employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act or other specific statutes governing employment as a condition of employment, continued employment, or the receipt of any employment-related benefit.

As discussed here, shortly after enactment AB 51 was immediately challenged and an injunction on enforcement granted by the U.S. District Court. However, the injunction was short-lived as a divided Ninth Circuit Court of Appeals panel reversed the injunction (in part) which prompted the immediate filing of a petition for rehearing by the full court.  On August 22, 2022, instead of granting or denying the petition for rehearing, the Ninth Circuit made a surprise decision to withdraw its prior opinion and grant a full panel rehearing.

At the February 15, 2023 rehearing, the Court affirmed the original district court ruling which held that AB 51 was preempted by the Federal Arbitration Act (FAA).i The FAA’s broad policy mandates favor arbitration and act to preempt any state rule affecting the enforceability of arbitration agreements or those that treat arbitration agreements differently than other contracts. Based on this ‘equal treatment principle’ the Court found there was “no doubt” that AB 51 disfavored the formation of arbitration agreements over other types of contractual agreements and was therefore preempted in its entirety.

 

What does this mean for employers?

The finality of the Court’s decisionii means that California employers may (once again) make the signing of an arbitration agreement a condition of employment or continued employment.

 

Class Action and PAGA Waivers

A few words about the status of class action and Private Attorney General Act (PAGA) waivers in arbitration agreements. As discussed, here, here, and here, the status of class action and PAGA waivers are in flux. Employers currently utilizing arbitration agreements and/or those considering introducing arbitration agreements into the workplace, should consult legal counsel in connection with reviewing any representative action waiver and severability provisions to determine if they are sufficient to assist with compelling arbitration when a PAGA claim is alleged. Counsel should also be consulted on the pending status of the unanswered question of whether a plaintiff loses standing to bring a representative PAGA claim on behalf of others simply because their individual PAGA claim was compelled to arbitration.

 

 

[i] Chamber of Commerce v. Bonta (Feb. 2023) 62 F.4th 473.

[ii]The deadline for filing a petition for review with the CA Supreme Court has passed making this an unappealable final decision.

Mark Trimmer to Speak at Salinas Biological Summit

May 30th, 2023

Mark Trimmer, Ph.D., will bring his more than 35 years of expertise in research, product development, registration, technical service and technology licensing in the crop protection industry to the Salinas Biological Summit on June 20-21, 2023.

Mark is a Managing Partner of DunhamTrimmer, a premier market research, market data and strategic consulting firm focused exclusively on the global biocontrol, biostimulant and biofertilizer markets; and is also current Chairman of the Board for the Biological Products Industry Alliance (BPIA).

Previously, Mark led international product development at American Cyanamid as VP of Global Technology, successfully delivering new product registrations. He also led new technology acquisition at BASF and successfully negotiated development agreements on several new products. In addition, Mark led R&D efforts at biological startup company, NutraPark, successfully developing novel biological PGR’s for enhancing fresh market fruits and vegetables.

Mark’s vast knowledge of agronomy, plant physiology and plant pathology make him a must hear at the event.

You can purchase tickets, reserve accommodations and learn more about the Summit here.

DOL Publishes Administrative Guidance on PUMP Act

May 25th, 2023

The U.S. Department of Labor Wage and Hour Division (WHD) has published internal guidelines for agency officials responsible for enforcing Fair Labor Standards Act (FLSA) provisions of the 2022 PUMP Act (the Act).  

Employers are encouraged to review the newly published Field Assistance Bulletin No. 2023_02 to gain an ‘insider’s view’ into how the WHD will interpret and ultimately enforce lactation mandates under the Act.   

A few key insights from the guide include: 

  • The FLSA requires employers to provide a nursing employee a reasonable break time each time such employee has a need to pump breast milk at work for one year after the child’s birth. Employees who telework are eligible to take pump breaks under the FLSA on the same basis as if they were working on-site. 
  • The PUMP Act does not require that employees be compensated for break time needed to pump breast milk “unless otherwise required by Federal or State law or municipal ordinance.” However, under the FLSA all hours worked must be compensated and break time to pump will be considered hours worked if an employee is not completely relieved from duty during the entirety of the break or when pumping during an otherwise paid break period. 
  • Privacy must be taken into consideration whether the employee is on-site or working remotely. By way of example, the guide suggests privacy may be ensured by displaying a sign when the space provided for lactation is in use or providing a lock for the door. Lactating employees must be free from observation by any employer provided or required video system including computer or security cameras, or web conferencing platform.  

Overall, the guidance reminds administrative personnel that employers may address space and privacy requirements in different ways – taking into consideration the number of nursing employees and their work schedules – to determine the most effective means of fulfilling their obligations under the Act.  

The guide also contains several useful employer-related links: 

Updated FLSA poster (April 2023) 

Pump at Work portal  

Office on Women’s Health’s Supporting Nursing Moms at Work: Employer Solutions 

California Expense Reimbursement: Best Practices

May 25th, 2023

California Labor Code section 2802 states that employers must indemnify their employees for all necessary expenditures or losses incurred as a direct consequence of their job duties.  It’s crucial for employers to understand the guidelines and best practices surrounding this process. 

It is recommended that employers establish a clear policy regarding expense report submissions. Employers typically require submitting expenses on a monthly basis. This regular schedule ensures timely processing and helps employers manage their finances effectively. 

Even if an expense claim is submitted late according to the company’s policy, it is still the employer’s obligation to pay it, up to the statute of limitations which is up to four years. Even if the employee fails to submit an expense reimbursement claim, the employer must reimburse if they know about the business expense. To discourage late submissions, employers can enforce discipline measures for employees who fail to adhere to the established time frames. Consistency is key, and guidelines for expense submission should be applied uniformly to all employees, including those who frequently travel. 

Employees are entitled to reimbursement only for reasonable business expenses. This means that employers can set limits on certain expenses, such as hotel and food costs, to ensure they fall within acceptable ranges. Additionally, employers can require employees to choose cost-effective options, such as coach class airfare.  

The law does not specify when employers must reimburse their employees. However, reimbursements must be processed in a timely manner. While expense reimbursements do not need to be paid out simultaneously with the final paycheck when an employee leaves their job, employers should not use this as an excuse to postpone reimbursement. Payments should be processed as part of the usual expense payment procedure. 

To ensure a smooth expense reimbursement process, employers should establish and adhere to firm guidelines. Employers should create specific policies regarding expense submission, outlining time frames, expense limits, and guidelines for employees who travel frequently. Employees, on the other hand, may be expected to familiarize themselves with these policies and follow them accordingly. 

By maintaining open communication, providing clear guidelines, and adhering to the established policies, both employers and employees can navigate the expense reimbursement process effectively. Remember, the primary goal is to ensure that employees are reimbursed for necessary business expenses while maintaining a fair and reasonable approach for both parties involved. 

U.S. Department of Labor Updates FMLA Poster

May 18th, 2023

The U.S. Department of Labor (DOL) has recently released an updated Family and Medical Leave Act (FMLA) notification poster. Various federal laws require employers to provide notice of employee protections including those associated with the FMLA.

In accordance with the FMLA, private employers with 50+ employees are required to display and keep displayed a poster prepared by the DOL summarizing the major provisions of the FMLA including how to file a complaint.

The updated poster clarifies several procedural aspects of the FMLA such as:

  • Employers may require an employee to use accrued paid leave during an unpaid FMLA leave period.
  • FMLA eligibility should be confirmed in writing and notice of FMLA rights and responsibilities provided to the employee immediately once a request for FMLA is received.
  • Employers may require documentation from a health care provider certifying the need for FMLA leave.
  • FMLA leave is protected leave which means employees returning from FMLA leave must be returned to their same (or virtually identical) job including the same pay, benefits and working conditions.

Employers are also reminded that the FMLA poster must be displayed in a conspicuous place where employees/applicants for employment can see it and that it must be displayed at all locations even if there are no eligible employees. Employers who are unsure of their federal posting obligations should visit the DOL’s FirstStep e-law wizard to assist with employer/industry specific postings.

State law mandated posters for Arizona and California employers can be found at:

Join CA Tomato Research Institute’s Zach Bagley at the Salinas Biological Summit

May 24th, 2023

Zach Bagley, Managing Director of the California Tomato Research Institute, will be speaking at the Salinas Biological Summit on June 20-21, 2023.

Bagley has been in the processing tomato industry in California for 10 years and brings an array of experience and insight in agricultural innovation to the Salinas Biological Summit.

In his current role with the California Tomato Research Institute, he works with grower members and industry stakeholders across California to fulfill the mission of the longstanding institute: “Build durable coalitions around the questions whose answers will drive the long-term success of the California processing tomato industry.”

Previously, Bagley worked in multiple roles for Olam SVI, and currently serves as the Managing Advisor of Production Research & Partnerships for the California Prune Board.

Purchase tickets, reserve accommodations and learn more here.