Western Growers Year in Review 2019

2019 / YEAR IN REVIEW

STRONGER

“Respect and camaraderie define the WESTERN GROWERS family, which is what we are at the end of the day… part of the same family” – TOM NASSIF

TOGETHER

Founded in 1926, Western Growers is committed to the evolutionary growth of the agricultural industry and its professionals. Representing local and regional family farmers across California, Arizona, Colorado and New Mexico, the organization and its participating members represent nearly half the nation’s fresh fruits, vegetables, tree nuts and organic produce. For 94 years, Western Growers has been dedicated to enhancing the competitiveness and profitability of its members and today is one of the most powerful and influential trade associations within the United States. We continue to influence change, ensuring the industry’s stability and its members’ success. We believe there is strength in numbers and together, our voice continues to be powerful. 2019 proved to be yet another period of progress and change by our organization, highlighted by key contributions that included: - Tom Nassif, Western Growers President and CEO, served as the lead agricultural negotiator for The Farm Workforce Modernization Act (H.R. 5038), which passed the House with strong support - Western Growers, represented by Tom Nassif, testified before House Judiciary Subcommittee on Immigration and Citizenship - Tom Nassif and members of the Western Growers executive staff attended the signing of the U.S.-Japan Trade Agreement at the White House - After years of dedicated service to Western Growers, Tom Nassif and Matt McInerney announced their retirement from Western Growers - Ryan Talley, taking over for the exiting Ron Ratto, was announced 2020 Western Growers Chairman of the Board - Dave Puglia, Executive Vice President, was announced as Tom Nassif’s successor as Western Growers’ President and Chief Executive Officer, continuing the commitment and efforts of the organization moving forward Defining the Future of Agriculture Western Growers 2019 Year In Review

F

A MISSION THAT MATTERS Western Growers has a unique mission... to enhance the competitiveness and profitability of family farmers, fresh produce growers, processors, and shippers.

As we move forward into the new year and the future, Western Growers and its members continue to grow together. We remain committed to defining the future of our industry. -

“As members we are looking forward

to the new leadership within

WESTERN GROWERS and to the continued support they provide to us and the industry.” – A.G. KAWAMURA

WITH US

D Dear Members, Adaptation. Revision. Change. These imperatives are the hallmarks of our member companies, and by extension, our industry and our association. These essentials pave the way for our collective growth and success, and for the continuation of our family farms into the next generation. Given the compounding nature of the challenges facing our industry, the words of Moneyball’s Billy Beane – the sabermetrics-oriented front office executive of the Oakland Athletics – have never rung more true: “Adapt or die.” Welcome to Western Growers Embracing Change in 2020

DAVE PUGLIA WGA President/CEO

RYAN TALLEY WGA Chairman

2020 promises to be a year of change. It marks the beginning of a new decade, which brings with it an equal share of optimism and concern. It also marks the beginning of a new era at Western Growers. After 18 years of unprecedented leadership marked by adaptation and revision, Tom Nassif will ease into retirement. The legacy he leaves behind will be the foundation on which an even stronger, more prosperous industry and association will be built. The key, for our members and our association, will be to continue evolving ahead of the changing political dynamics, regulatory demands, marketplace challenges and environmental constraints; and not just to keep up with these transformations, but to stay ahead of the curve. This will necessarily require that we not rest on our laurels, but instead use our past successes as motivation to continue improving our craft. As we look forward to the coming year, we want to pause and reflect on the year past, which simultaneously serves as a reminder of all that we have achieved together and a yardstick against which the successes of 2020 will be measured. With this Annual Review, join us as we reflect upon our accomplishments as an industry and association in 2019.

Dave Puglia

Ryan Talley

WGA President/CEO

WGA Chairman

“I don’t think most members understand how involved politically WESTERN GROWERS is. The association does a phenomenal job representing our interests and working every day to prevent regulations and legislation from being imposed on our industry.” – PAT HORWATH S. & H. PACKING & SALES CO.

OUR IMPACT

F Advocacy Power for Our Members From its beginning in 1926, member advocacy and creating impactful change for the industry has been at the heart of Western Growers. Today the organization continues to lead the fight for sound legislative and regulatory policy on behalf of each and every one of our more than 2,300 members. Ensuring the voice of our members is heard and more importantly, critical issues facing our industry are addressed, Western Growers commits significant resources to support our team of in-house professional advocates across Sacramento, Phoenix and Washington, D.C. Never has this been proven so strongly than during this past year, which found Western Growers at the forefront of political efforts across key industry issues spanning labor, sustainability, crop protection, water and irrigation, and the future of our farmers. LABOR The Farm Workforce Modernization Act was passed on December 11, 2019, as a direct result of Western Growers participation. President and CEO Tom Nassif as lead negotiator testified before the House Judiciary Sub-committee on Immigration and Citizenship, organizing a coalition effort to secure passage of the bill and to hopefully pave its way through the Senate and ultimately the White House. Western Growers expanded its efforts to impact the labor space by providing crucial comments and direction on H-2A and the Department of Labor’s efforts to streamline and modernize the program. SUSTAINABILITY Earlier this year (through Sustainability in Action), Western Growers offered practical solutions to support growers, packers, shippers and handlers in tracking and implementing sustainability actions in their own operations, helping drive efficiency and profitability.

Western Growers Executive Vice President Dave Puglia attended the introduction of the bill in Washington, D.C

CROP PROTECTION To further help protect our members, their farms and most importantly, their crops, Western Growers reinforced the need for science-driven policy, submitting comments to the Office of Pesticide Programs and the EPA to urge the continued registration and use of glyphosate. WATER INFRASTRUCTURE In an effort to bring awareness and change to help address the severe hydrological conditions in the West, Western Growers and over 100 partnering organizations representing water and agricultural interests in the Western U.S., urged Congress to act. On June 21, 2019, as a result of coalition efforts, the Senate introduced the Drought Resiliency and Water Supply Infrastructure Act. THE FARM BILL Western Growers recently submitted a letter to California Department of Food and Agriculture Secretary Karen Ross, urging the 2020 Specialty Crop Block Grant program to administer funds to the initiatives most important and impactful to fruit, vegetable and nut growers across the U.S. It is these efforts and more, led by Western Growers and its members, that continue to impact the future success of our industry, its products and create a brighter future for the next generation of agricultural advocates. -

“WESTERN GROWERS represents our interests and they are one of the strongest voices

for agriculture that there is.”

– PHIL HENRY HENRY AVOCADO CORP.

GLOBALLY

T International Trade Representing Members on a Global Scale The Western Growers commitment to advocacy and the support of the agricultural industry doesn’t end at continental borders. Our efforts to ensure that Western Growers members are heard, represented and supported extends around the globe, with a focused dedication to helping ensure fair and equal practices. This past year was substantial for our members, as Western Growers became heavily involved with critical issues affecting international trade and practices. CHINA Western Growers played a crucial role in the USDA Mitigation Plan urging Ambassador Robert Lighthizer to secure the elimination of China’s retaliatory tariffs on fresh fruit, vegetables, and tree nuts. Since last year, Western Growers has engaged with the U.S. Trade Office (USTR), U.S. Department of Agriculture (USDA), U.S. Department of Commerce and Members of Congress on the Phase One Trade Deal, specifically to convey the message that a resolution is required to restore vital markets and trade stability. JAPAN Western Growers President/CEO Tom Nassif attended the signing of the U.S.-Japan Trade Agreement at the White House, opening up market opportunities for the fresh produce industry. Western Growers members will now have access to the Japanese market on equal footing with the Asia-Pacific signatories of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Western Growers President/CEO Tom Nassif attended the signing of the U.S.-Japan Trade Agreement

In addition to standing vigil on global issues, Western Growers provides its members with customized assistance with international trade issues or concerns. Working directly with the USDA and across countries that include Mexico, Korea and Japan, we provide resources to help our members thrive in global market situations. Western Growers members receive exclusive trade alerts, market updates and information vital to their success. -

“WESTERN GROWERS allows each farmer in California and Arizona one voice when tackling issues that affect all farmers and the future of agriculture. This is extremely important for each grower to be able to work collaboratively to achieve one goal to sustain farming in California and Arizona.”

– RYAN VAN GRONINGEN VAN GRONINGEN & SONS, INC.

CA SUPPORT

T The California legislative and regulatory environment often places Western Growers members at a competitive disadvantage relative to other states and countries, which is why we are relentless in our pursuit of common sense legislation and sound public policy in the state capital. Although the headlines seem to suggest otherwise, Western Growers and our industry allies demonstrated a collective and effective show of strength in 2019, helping several bills critical to our members become law, including: AB 658 (Arambula) Authorizes a groundwater sustainability agency or local agency to apply for, and the State Water Resources Control Board to issue, an expedited conditional temporary permit for diversion of surface water to underground storage for beneficial use. SB 200 (Monning) Establishes the Safe and Affordable Drinking Water Fund to help water systems provide an adequate and affordable supply of safe drinking water. However, with an extremely active legislative body that introduces nearly 5000 new bills every two-year session, success in the California legislature can often be measured by the number of bad bills that do not become law. In 2019, Western Growers fought alongside our coalition partners to block the following bills: California Fighting for Common Sense Legislation

SB 1 (Atkins) Would have blanketed federal laws that were in effect under the Obama Administration onto California state agencies without a case-by-case analysis on the merits. AB 589 (Gonzalez) Would have required that a “Worker’s Bill of Rights” document be provided to each employee; of particular concern was a provision within this document regarding employer-provided housing that would have likely impacted H-2A housing options and choices for employees. AB 916 (Muratsuchi) Would have placed a ban on the use of glyphosate by a local agency. -

AB 555 (Gonzalez) Would have expanded California’s paid sick leave program from 3 days to 5 days (40 hours).

“WESTERN GROWERS should be an example and benchmark for all industries. Their willingness and drive to establish workplace safety protocols of their own, which happens to be more effective than federal standards, is just one reason they were recognized at our ICA on the Capitol Lawn event.”

– ICA CHAIRMAN DALE SCHULTZEST

AZ SUPPORT

I In a state that is undergoing significant demographic and political shifts, Western Growers is redoubling our efforts to ensure that Arizona legislators and regulators remain supportive of our members and the agriculture industry, both now and into the foreseeable future. In 2019, Western Growers emphasized two main public policy priority areas: taxes and water. The Arizona public policy highlights from 2019 include: - Among the biggest achievements in Arizona was the passage of House Bill 2275, which provided clarification on sales tax for fertilizers and pesticides used in commercial agriculture production. Effective December 1, 2019, these products are now exempt from the state’s sales tax, which will save our members and the Arizona agriculture industry $15 million per year - An additional $20 million of funding for the Central Arizona irrigation districts was also included in the budget to help them comply with the Drought Contingency Plan (DCP) - The state also provided $400,000 in general fund money to pay the rent for the State Ag Lab, rather than raiding industry funds to make the payment - The Arizona State Legislature passed their portion of the Lower Basin Drought Contingency Plan, which preserves the levels of Lake Mead and mitigates the losses if and when the lake drops below Tier 1 and 2 levels. This plan protects water rights in Yuma and offsets losses to central Arizona and Pinal County farmers - Western Growers, in partnership with Phoenix Business Journal , hosted a special event in May where U.S. Senator Martha McSally and members of the Arizona agricultural industry discussed challenges surrounding Arizona’s water supply and quality Arizona Influencing Public Policy in the Southwest

“WESTERN GROWERS have been a critical part of improving LGMA water metrics. In a time of crisis with food safety issues they helped improve our industry. We are thankful for their efforts and the leadership role WESTERN GROWERS plays in our industry”.

– STEVE CHURCH CHURCH BROTHERS FARMS

WITH CONFIDENCE

W Food Safety Growing Safer through Science Western Growers is committed to the success of our members and the safe development and delivery of their commodities. Our experts work with regulators, legislators, universities and scientists to offer resources including commodity-specific food safety guidelines and regulatory guidance manuals to resolve food safety challenges facing our industry today. We are determined to ensure a safe and secure food supply, healthy crops, reliable natural resources, and sustainability for our members. Through the Western Growers Science and Technology department, members have access to online and in-person training courses in 2019 that included: - Root Cause Analysis and Produce Safety - Irrigation Water Treatment 101 - Water Metrics for LGMA consideration/LGMA Standards Updates (Water Management) - Bilingual Produce Safety Alliance Growers Training - Foreign Supplier Verification Course - FSMA Compliance Standards - The global reach of the U.S. produce industry - Foreign Supplier Verification and its application to the produce industry - Key Learnings from the CPS Research Symposium Additionally, we keep our members updated and notified on critical food safety-related issues the minute they happen. From foodborne outbreaks and FDA activity to the newest innovations and technology behind food safety operations, Western Growers has first-hand and immediate access to resources, reports and industry findings through our Science and Technology updates, courses, events and communications. -

AG TECHNOLOGY

“WESTERN GROWERS is a proactive

organization that drives innovation

and helps agriculture be competitive on a worldwide basis.”

– CAROL CHANDLER CHANDLER FARMS

Innovation Industry Solutions for the Future I In 2015, and in a continued effort to drive the future of the agricultural industry forward, Western Growers opened the doors of its Center for Innovation and Technology in Salinas, California. Since that time, the Center has taken significant steps to accelerate the development of agricultural technologies, innovations within the industry and has served as the hub for more than 60 agtech start-up companies, 10 of which were added this past year alone. With a focus on providing members access to ground-breaking advancements in food safety, food tech and the industry challenges they face, the Center is widely known for the creation of its AgTechX® summits, providing exclusive access for Western Growers members to engage with the leaders and innovators within the agricultural technology community. In 2019, the Center has continued its expansion forward, working both domestically and internationally to provide Western Growers members with solutions that directly impact their businesses and products. This past year saw critical initiatives that included joint partnerships with the Netherlands and New Zealand to drive Accelerated Automation, as well as with FME, launching the International Robotics Academy to solve ag food tech challenges. Some additional highlights from this past year included: - The development of the Grower Trial Network and Crop-Collaborative Initiative - The launch of the New Technology-Driven Food Safety Risk Management Program - Sponsorship of ”Tech Alley” at Organic Growers Summit - Hosted the 3rd Annual “AgSharks” Summit at the 2019 Annual Meeting

- Announced the unveiling of the New AgTech Directory - Debuted “Voices of the Valley,” its first agtech podcast

“WESTERN GROWERS University provided

a superb training experience where our staff gained valuable practical

YOUR KNOWLEDGE

knowledge that they were able to apply in their day-to-day operations. They offer a variety of courses that enhance the supervisory and leadership skills

of managers at all levels.”

– SANDRA FLORES RATTO BROS .

O Workforce Development Providing the Foundation for a Solid Workforce Our members’ human resources are their most valuable assets. That’s why Western Growers provides guidance to keep members informed and compliant on issues such as employment law, immigration and labor, employee benefits, health care reform, industry compensation, and more. Through Western Growers Human Resources and Legal departments, as well as the Western Growers University, members can gain access to valuable operations guidance, courses and certification opportunities. This past 2019 showed an increase in not only members engaging in these valuable resources, but an extension of the services offered across these divisions. Through Western Growers Human Resources and The Western Growers University, more than 500 members and their employees were trained to meet the demands of SB 1343, California’s Sexual Harassment Regulations, as well as participate in Management 101 courses to operate more efficiently, effectively and most important, become compliant with state regulations. Additionally, Western Growers H-2A Services provided members with turnkey solutions for foreign labor acquisition, handling all logistics and details throughout the process, allowing members to focus entirely on the success of their operations. Beyond those crucial efforts, Western Growers members also received access and invitation to more than fifty workshops, webinars and onsite events offered exclusively by Western Growers University and Western Growers H-2A Services covering industry-critical issues that included:

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