Western Grower & Shipper 2018 05 MayJune

Western Grower & Shipper 2018 05 MayJune

WESTERN GROWER SHIPPER MAY/ JUNE 2018

WATER YEAR 2017/18 Solid Spring Helps with Disappointing Winter

Redefining Rural America, One Woman at a Time BIOLOGICALS Effective, Sustainable, and Offer a Strong ROI

Safe Drinking Water Bill Moving Toward Finish Line WATER TECH UPDATES SWIIM’s 2.0 in Beta Testing Pago: The Ag Labor Platform WGCIT SPONSOR City of Salinas Offered Impetus for AgTech Movement Avoiding Problems with Employee Leave of Absences

WESTERN GROWER SHIPPER MAY/JUNE 2018 WGA.COM

6 Redefining Rural America, One Woman at a Time 10 BIOLOGICALS Effective, Sustainable, and Offer a Strong ROI 12 Safe Drinking Water Bill Moving Toward Finish Line 14 Water Tech Updates 16 WATER YEAR 2017/18 Solid Spring Helps with Disappointing Winter 20 Pago: The Ag Labor Platform 22 WGCIT SPONSOR City of Salinas Offered Impetus for AgTech Movement 28 Avoiding Problems with Employee Leave of Absences

WESTERN GROWER & SHIPPER Published Since 1929

Volume LXXXIX Number 3

To enhance the competitiveness and profitability of Western Growers members

Thomas A. Nassif President Western Growers [email protected] Editor Tim Linden Champ Publishing 925.258.0892 [email protected] Contributors Cory Lunde 949.885.2264 [email protected]

Stephanie Metzinger 949.885.2256 [email protected] Production Diane Mendez 949.885.2372 [email protected] Circulation Marketing 949.885.2248 [email protected] Advertising Sales Dana Davis Champ Publishing 302.750.4662 [email protected]

DEPARTMENTS

4

President’s Notes

24

Insurance Corner

26

Agriculture & the Law

30

Government Affairs

32

Western Growers Connections

33

Contact Us

34

Western Growers Financial Services

Western Grower & Shipper ISSN 0043-3799, Copyright © 2018 by the Western Grower & Shipper is published bi-monthly by Western Grower & Shipper Publishing Company, a division of Western Growers Service Corp., 15525 Sand Canyon Avenue, Irvine California 92618. Business and Editorial Offices: 15525 Sand Canyon Avenue, Irvine California 92618.Accounting and Circulation Offices:Western Grower & Shipper, 15525 Sand Canyon Avenue, Irvine California 92618. Call (949) 863-1000 to subscribe. Subscription is $18 per year. Foreign subscription is $36 per year. Single copies of recent issues, $1.50. Single copies of issues more than three months old, $2. Single copies ofYearbook issue $4. Periodicals postage is paid in Irvine, California and at additional mailing offices. POSTMASTER: Send address changes to Western Grower & Shipper , PO Box 2130, Newport Beach, California 92658.

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TOM NASSIF | PRESIDENT AND CEO, WESTERN GROWERS PRESIDENT’S NOTES

ICE Raids on Farmworkers Are Untenable “California fruit will die on the vine after ICE raids.” “Immigration raids scare California farmers, not just their workers.” “Farm leaders say California’s sanctuary status makes them a target for ICE raids.”

These are just a few of the headlines that have splashed across regional and national news outlets in recent months. They remind us of the years of inaction by our lawmakers, despite overwhelming voter support for immigration reform for agriculture. We have made our case. Americans will not do the hard labor required to pick our fruits and vegetables. To anyone who disputes this, I simply ask of them: “Are you or anyone you know raising your kids to be farmworkers?” The inevitable conclusion is that foreign hands will harvest our food. This light bulb moment leads to a logical next question: “Do we want our food harvested by foreign hands here in our own country, in fields under our direct control, or on distant farms unregulated by the food safety and labor regimes that govern our farmers, and subject to the whims of foreign governments that may not always have our best interests at heart?” For those of us old enough to remember the Arab oil embargo in 1973—a crisis that prompted President Nixon to promise energy independence to the American people “within 10 years,” —we understand the consequences of ceding jurisdiction of our vital needs to others abroad. While it took a bit longer than 10 years, the United States has relentlessly pursued—and has now essentially achieved—energy independence. Why, as a matter of public policy, are we not similarly focused on maintaining American food independence? American agricultural production is being siphoned off to other countries at an alarming rate, as evidenced by the growing balance of trade deficit in fruits and vegetables, which now stands at many billions of dollars a year. For this reason, news of the recent round of ICE raids in California’s Central Valley is incredibly concerning. To be clear, Immigrations and Customs Enforcement was active [perhaps even more active] during the Obama administration, but the recent crackdown on undocumented agricultural workers under the Trump administration is jarring given the overwhelming support he has enjoyed from rural communities across the country. While we fully support the administration’s effort to

dislodge criminal aliens from our country, our farmworkers are, almost without exception, not felons. In fact, the agricultural workforce is almost uniformly stable with historic presence where they live, generating economic activity in their regions and giving back to their neighborhoods and communities. The ill-conceived concept of rooting out these men and women and sending them to their home countries is destructive on many fronts. Furthermore, stripping farm businesses of our essential labor force is tantamount to an act of financial sabotage, with these ICE raids making the U.S. government a complicit agent in the crippling of its own citizens’ livelihoods. Compounding an already acute labor crisis, these ICE raids run counter to President Trump’s drive to bring jobs back to America. Our industry is not unwilling to find solutions. We are not deaf to public misgivings and anger regarding illegal immigration or workers who have lived in America without citizenship. We join in agreeing that we can work to find answers and are determined to be positive partners in that process. We can accept ICE raids, E-verify and other interior enforcement (and border security) measures. But first, we need workable solutions to our chronic labor shortages. Undeniably, the answer begins and ends with Congressional action, a candle of hope that has dimmed since the introduction of the Goodlatte bill. Absent a workable legislative fix for the agricultural labor force, the Trump administration must strive to minimize the impact of its immigration policies on our industry. To achieve this objective, the agriculture community must leverage the collective influence it has with this President. I have spoken with Congressional leaders and fellow members of the President’s Ag Advisory group about the need for this administration to publicly assure farmers that the ICE raids are not going to target agriculture. Workers who are in fear of a raid are not showing up at their place of employment exacerbating the devastating labor shortage that already exists. Concerted action by agriculture is very important in order to achieve these objectives.

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Redefining Rural America, One Woman at a Time

By Stephanie Metzinger I t’s the iconic depiction of agriculture—a farmer driving his tractor at sunrise, walking the fields to check on his budding crops and brushing the dirt off his freshly picked produce. Though this scene is thought to be the most common portrayal of farm life, something significant is missing: the women. Women make up a third of the nation’s farmers, generating nearly $12.9 billion in agricultural sales on a yearly basis. These 970,000 female farmers are the thought leaders behind innovative concepts that bring more fresh produce into the homes of Americans. They are the full-time owners and operators, family

experience in running a business, Filice decided to carry on Chuck’s vision and led the operation with the support and guidance of several dedicated employees. She quickly embraced new technologies being developed to improve farm operations and has since been a leader in implementing innovation in the field. Filice Farms was among the first to use tractors that were guided by GPS technology on its fields. These tractors allowed drivers to do a more efficient job of plowing the field, and in turn, saved the operation a significant amount on fuel and labor.

matriarchs, community volunteers and agriculture advocates that are paving the way for a more nutritious future. Take for example, Kay Filice, president and owner of Filice Farms in Hollister, Calif. Filice broke away from her rural roots when she decided to move from Iowa to San Francisco in the ‘70s to pursue a career in sales and marketing. When she met her husband, Chuck, shortly after, she found herself back in a rural setting and on the farm. Chuck—a second generation vegetable farmer in Central California—managed the day-to-day operations of their family farm while she raised their boys and managed the summer apricot production and processing. When Chuck passed away in 1998, she was faced with a life-changing decision: sell the farm and start a new life with her three sons or continue the business her husband and his parents had passionately developed. Though she had little to no

Kay Filice, Filice Farms

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into large shoes, Becerra has spent the last 14 months learning the mushroom business and managing the day-to-day operations as the managing partner of Global Mushrooms. Becerra has adopted her father’s motto for the farm of “Quality First.” Her understanding of this motto was not to just grow the highest quality mushrooms, but also to ensure the highest quality programs within the company. These programs include employee benefits, employee safety, food safety and maintaining a state-of the art growing facility. When first taking over, Becerra reviewed the company’s benefits and noticed that employees were not utilizing their health benefits. After meeting with the employees, she learned that they did not fully understand the coverage or they could not find service providers in their areas. She immediately reached out to Western Growers Insurance Services to develop new benefits program and implemented an employee benefits education program. The new program combined affordability, accessibility and education to support her employees. “In this short time, participation in the health plan has grown to 88 percent, the employees understand their benefits and now have access to health service providers in their areas,” said Becerra. “We are incredibly proud of the quality of our employee programs that we have created at Global Mushrooms and are delighted with the positive feedback we receive from our employees.” In addition to leading revolutionary changes within their companies and making history today, female farmers are also growing ag for tomorrow. Carol Chandler, partner at Chandler Farms, and Catherine Fanucchi, partner at Tri-Fanucchi Farms, are two of the three women who sit on WG’s Board of Directors.

Christi Becerra, Global Mushrooms

“Today, new technology for on-farm use is being developed at an astonishing rate, and in many ways, changing the way we farm,” said Filice. “Aerial imaging is just one of many such technologies Filice Farms utilizes to detect problems in early stages, allowing us to make important cost effective decisions.” Today, Filice Farms rotates a dozen different crops on San Benito County ranches from Hollister to San Juan Bautista and has cemented its reputation as one of the most forward-thinking ag operations in the region. “Agriculture is an exciting business, each day presenting new opportunities and new challenges. If you’re not constantly planning and looking toward future opportunities for your farm and your employees, you’re going to be left behind,” said Filice. Filice’s story of taking over a family business and transforming it into an agricultural powerhouse is one that is starting to echo throughout the industry. When Christi Becerra’s father passed away in 2017, she made the decision to leave her career in IT and join one of her family’s businesses to insure that her father’s legacy would continue. Stepping

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Lorri Koster, Mann Packing-Del Monte

Catherine Fanucchi , Tri-Fanucchi Farms

As leadership of WG, Chandler and Fanucchi play a significant role in advocating for the hard-working farmers and farmworkers who provide over half the nation’s fresh produce and making legislators aware of the value the ag industry brings to the community. “We have been incredibly involved in ag advocacy in Washington and Sacramento with Western Growers members,” said Chandler. “It is vitally important to tell our stories to elected and appointed officials who legislate and regulate our farming operations.” Chandler is also an advocate for ag within higher education. She served on both the California State University Board of Trustees and the University of California Board of Regents to help develop education policy and ensure that students have a pathway to a higher education. In her roles, she consulted on system-wide initiatives that were geared toward shaping students into knowledgeable, highly- skilled professionals that would thrive in industries such as agriculture. “There is a strong synergy between agriculture and higher education as we look for innovators to help us farm smarter and more efficiently,” said Chandler. Rounding out the female leadership on WG’s Board of Directors is Lorri Koster, former chairman and CEO at Mann Packing—a women owned and operated company that was recently acquired by Del Monte Fresh Produce—and currently a

consultant for Del Monte. Koster and her sister, Gina Nucci, brought new meaning to the term “value added.” They created numerous lines of Mann Packing products, such as their Sugar Snap Peas, Broccolini®, Single-Cut Full-Leaf Lettuce, Cauliflower “Fried Rice” Blend, Better Burger Leaf and Nourish Bowls (a ready-to-eat warm meal that is comprised of super foods), which allow consumers to spend more time with their families at the dinner table, rather than prepping and cooking in the kitchen. “Mann Packing’s mission statement says it all—Fresh Veggies Made Easy,” said Koster.

Breaking into a male-dominated field such as agriculture is not easy, but farmHers throughout the nation are making strides and leading the way for all women. In honor of Women’s History Month in March, Western Growers featured stories throughout its social media channels of female farmers who are defying the odds and succeeding as a women in agriculture. To read more about the women who are redefining the typical depiction of rural America, visit facebook. com/westerngrowers or instagram.com/ western_growers.

Bill and Carol Chandler, Chandler Farms

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WTL-Ad-Western-Growers.pdf 1 3/5/18 11:47 AM

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BIOLOGICALS Effective, Sustainable, and Offer a Strong ROI

WESTERN GROWERS OFFICERS – 2018

CRAIG A. READE, Chairman RONALD RATTO, Senior Vice Chair RYAN TALLEY, Vice Chair STEPHEN F. DANNA, Treasurer CAROL CHANDLER, Executive Secretary THOMAS A. NASSIF, President DIRECTORS – 2018 GEORGE J. ADAM Innovative Produce, Santa Maria, California JOSEPH E. AIELLO Uesugi Farms, Inc., Gilroy, California KEVIN S. ANDREW Vanguard International, Bakersfield, California MIKE ANTLE Tanimura and Antle, Salinas, California ROBERT K. BARKLEY Barkley Ag Enterprises LLP,Yuma, Arizona STEPHEN J. BARNARD Mission Produce, Inc., Oxnard, California BRIAN BERTELSEN Cove Ranch Management, Reedley, California GEORGE BOSKOVICH III Boskovich Farms, Oxnard, California DON CAMERON Terranova Ranch, Helm, California EDWIN A. CAMP D. M. Camp & Sons, Bakersfield, California CAROL CHANDLER Chandler Farms LP, Selma, California LAWRENCEW. COX Coastline Family Farms, Salinas, California STEPHEN F. DANNA Danna Farms, Inc.,Yuba City, California JOHN C. D’ARRIGO D’Arrigo Bros. Co. of California, Salinas, California THOMAS DEARDORFF II Deardorff Family Farms, Oxnard, California SAMUEL D. DUDA Duda Farm Fresh Foods, Inc., Salinas, California CATHERINE A. FANUCCHI Tri-Fanucchi Farms Inc., Bakersfield, California DAVID L. GILL Rio Farms, King City, California A. G. KAWAMURA Orange County Produce, LLC, Irvine, California ALBERT KECK Hadley Date Gardens,Thermal, California LORRI KOSTER Mann Packing Company, Inc., Salinas, California FRED P. LOBUE, JR. LoBue Bros., Inc., Lindsay, California FRANK MACONACHY Ramsay Highlander, Inc., Gonzales, California JOHN S. MANFRE Frank Capurro and Son, Moss Landing, California STEPHEN MARTORI III Martori Farms, Scottsdale, Arizona HAROLD MCCLARTY HMC Farms, Kingsburg, California JOHN MCPIKE California Giant, Inc., Santa Maria, California TOMMULHOLLAND Mulholland Citrus, Orange Cove, California KEVIN MURPHY Driscoll’s Inc.,Watsonville, California MARK NICKERSON PrimeTime International, Coachella, California THOMAS M. NUNES The Nunes Company, Inc., Salinas, California KEVIN E. PASCOE Grimmway Enterprises Inc., Bakersfield, California GARY J. PASQUINELLI Pasquinelli Produce Company,Yuma, Arizona STEPHEN F. PATRICIO Westside Produce, Firebaugh, California RONALD A. RATTO Ratto Bros. Inc., Modesto, California CRAIG A. READE Bonipak Produce, Inc., Santa Maria, California JOSEPH A. RODRIGUEZ The Growers Company, Inc., Somerton, Arizona WILL ROUSSEAU Rousseau Farming Company,Tolleson, Arizona VICTOR SMITH JV Smith Companies,Yuma, Arizona RYANTALLEY Talley Farms, Arroyo Grande, California BRUCE C.TAYLOR Taylor Farms California, Salinas, California JACKVESSEY Vessey and Company Inc., Holtville, California STUARTWOOLF Woolf Farming & Processing, Fresno, California ROBYRACEBURU Wonderful Orchards, Shafter, California

By Tim Linden P am Marrone, a pioneer and leader in the bio-pesticide world, looks forward to the day when the majority of growers use biologicals because of their efficacies, not just because they offer other advantages. She freely admits that biologicals are most often used today to stay below maximum residue levels (MRLs) and allow workers back into the fields more quickly. “Surveys tells us those are the top two motivators,” she said. And they are two very good reasons. Chemicals typically have label specifications preventing application a set number of days before harvest, so often a grower will switch to a biological to maintain pest control during that time period. Biologicals can also be applied in the morning and the workforce can return to the field in the afternoon so often they are used for that purpose. But Dr. Marrone, who is founder and CEO of

Marrone Bio Innovations (and previously founded AgraQuest), said the many new biologicals on the marketplace are also efficacious. “They offer an ROI. I look forward to the day when the average grower will use a biological to improve crop yields, quality and the nutritional content of their fruit.” She has spent her career developing biologicals and she knows they work and that they are equal to or better than the chemical alternatives that they are sold against. Marrone knows most growers don’t believe that and she believes it is a perception and an education problem, not an issue with the products themselves. She notes that most growers are not even sure what a biological is. One recent

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survey in the almond industry revealed that 83 percent of growers couldn’t define it. A biopesticide basically controls pests and disease through non-toxic measures such as disrupting the lifecycle of a pest. For example, the firm sells Venerate, which immediately—in less than one minute according to Marrone—stops the feeding of insects such as the Peach Twig Borer. Damage to the crop immediately stops and the bugs die off within a week. This, Marrone said, is a great example of the perception problem facing the biologicals industry. Often researchers, at the land grant universities she said, will conduct a biological vs. chemical trial and use an unfair test to judge efficacy. In this example, a researcher might set up the test to determine how many of the pests are still alive 48 hours after application. The chemical could be judged as more efficient because a greater number of pests are dead. Marrone said this is a lack of understanding of the mode of action involved in the biological. In both instances, damage to the crop has been halted. A week later, the trees treated with the biological might show far fewer pests, but that was never measured. She also complains that biologicals are often trialed as a stand-alone crop protection tool against a cocktail of chemicals. Marrone said organic growers do use biologicals as a stand-alone or in concert with other products registered for use on organic crops. But, she said 80 percent of biologicals are used by conventional growers as part of a rotation or in the tank mix with chemicals. When being trialed, Bio Innovations uses these very common practices to test their products and she believes these type of real-solution trials should also be utilized by independent researchers when gauging their efficacy. Another very important factor with biologicals, according to Marrone, is that their potential use expands and evolves once they are registered and being used by growers. She explained that a chemical typically takes about $300 million and a dozen years of testing to pass regulatory muster and reach the marketplace. Their toxicity requires that level of testing. As such, once these chemicals come into the market, the labels are complete and the researchers know everything there is to know about them. They have probably gone through thousands of trials on every conceivable crop and each of those crops is

listed on the label. To register a biological, it costs about $10 million and they usually hit the market within five years. These products do go through rigorous testing by government officials so their safety is assured, but their number of uses are not always known. They might have only had 250 trials on handful of crops. Marrone said typically about 10 crops appear on the label but as early adopters test the product, more crops are added and the use instructions are further refined, and improved. Marrone said this is a different business model and one that growers aren’t necessarily used to, but at the end of the day it produces what they are looking for: more crop protection tools in their arsenal. She noted that for specialty crops there are virtually no new chemical crop protection tools being introduced. The big companies are concentrating on the large program crops. The biological side is a different story. She estimated that 20 new biologicals were introduced in the past year. Marrone clearly believes biologicals are the future for the specialty crop

industry. She added that Bio Innovations is starting to focus some of its attention on bioherbicides. “I believe it has been 25 years since a new chemical herbicide has been introduced.” Besides offering a superior ROI for growers in her estimation, the other factor in what she believes will be continued growth of the biopesticide industry is demand by consumers and the supermarket buyers who deal with the growers. They are demanding increased sustainability, which means more environmentally-friendly crop protection tools and fewer residues on the fruits and vegetables in the marketplate. Marrone said the crop protection industry is seeing total sales decline, while biologicals are growing at a 15-20 percent annual clip and achieving greater market share. Currently, the biological industry represents about seven percent marketshare of crop protection tool sales. Marrone said younger growers and younger researchers—and she could have added younger consumers—are fueling the growth of the biological industry.

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