California Ag Network

Category: Ag Economics

  • Taco Bell® Unveils Dairy-Based Beverage with Checkoff Support

    Taco Bell is continuing its run of dairy-based beverages thanks to dairy checkoff support. The chain released the Island Berry Freeze that uses a shelf-stable creamer created by dairy checkoff scientists. It is Taco Bell’s third beverage launch featuring the dairy creamer, beginning with the Pineapple Whip Freeze in May of 2020 and the Mountain Dew® Baja Blast® Colada Freeze last May.

    The Island Berry Freeze features a bit of a twist from its predecessors with a creamer infused with a tropical flavor. This Freeze, offered in blue raspberry or wild strawberry flavors, is available at participating U.S. Taco Bell restaurants through March 12.

    “After the initial success of the Pineapple Whip, it just made sense to build off of that momentum and continue offering beverages that bring a lot of excitement to Taco Bell’s lineup,” said Mike Ciresi, a Dairy Management Inc. (DMI) senior dairy scientist who works with Taco Bell. “Taco Bell is all about bold, exciting flavors, especially with its beverages, and believes the Island Berry Freeze has a flavor that pops and will hit the mark with consumers.”

    Another popular Taco Bell item – the Grilled Cheese Burrito – is back on the menu. The burrito features a blend of mozzarella, cheddar and pepper jack cheeses in addition to reduced-fat sour cream, seasoned beef, rice, crunchy red strips and chipotle sauce. A layer of cheese is then grilled around the tortilla to offer a special experience for cheese lovers.

    The burrito launched in the summer of 2020 and re-entered Taco Bell’s menu last fall with a double steak option. This time, the original version is back for a limited time, which Ciresi expects will be a hit with consumers.

    “The Grilled Cheese Burrito continues to do so well,” Ciresi said. “I am excited it’s back on the menu, and I’m sure Taco Bell fans are as well.”

    Heather Mottershaw, vice president of pipeline innovation and product development for Taco Bell, reiterated how popular these dairy-centric items are with customers.

    “We understand how much dairy enhances our menu in terms of innovation and flavor and it’s supported by the response we get from our customers,” Mottershaw said. “We’re grateful to have checkoff scientists working side-by-side with our team to continue pushing the envelope with items featuring dairy.”

    While sales results of products created with checkoff support are proprietary, Emily Bourdet, vice president of global innovation partnerships for DMI, said the results of all checkoff partners, including at Taco Bell, are making a difference. She said there have been 2 billion pounds of milk equivalent growth overall since the start of the partnerships work, and each partner averages about 3 percent annual growth in dairy volume.

    “In Taco Bell’s case, it’s the innovation that leads to success,” Bourdet said. “From the beginning of the partnership to today, our on-site scientists at Taco Bell have changed the game for how to incorporate dairy and creating excitement for Taco Bell fans.”

    For information about the dairy checkoff, visit www.usdairy.com.

  • Governor Makes California Farmers & Businesses Pay

    Nisei Farmers League — On January 25, 2022, the Governor’s office announced that Governor Newsom and legislative leaders, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon reached a framework on extending supplemental paid sick leave through September 30, 2022. Many of our legislative representatives are not informed as to what is in the framework.

    The Los Angeles Times reported that the framework includes up to 40 hours of paid leave for those that are sick or caring for an ill loved one and an additional 40 hours if proof of a positive test is provided. Up to 3 days of sick leave can be used to attend a vaccination appointment for themselves or a family member and to recover from any symptoms. In total, this would be 80 hours of COVID sick pay that is retroactive from January 1, 2022.

    We understand that the Omicron variant has spread quickly among our communities. It has caused hospitals to approach capacity, placing our heroic health care workers under further stress. We must be doing everything we can to slow the spread of COVID to prevent further deaths.

    If businesses are going to use this to help slow the spread of COVID then meaningful tax credits need to be provided to assist business in paying the supplemental paid sick leave. Businesses will pay at minimum $1,200 per employee who is eligible and needs to use the full 80 hours of COVID sick leave. From the prior supplemental COVID sick leave, we have seen that if available, employees will exercise their right to use it.

    For example, a small farmer who has about 250 acres of tree fruit employs about 45 seasonal workers. They provide PPE to their workers, including providing extra to take home and did not question anyone when they claimed 80 hours of COVID sick pay under the Families First Coronavirus Response Act in 2020 and again in 2021. They were able to absorb the covid sick pay costs because the federal government provided a payroll tax credit that allowed them to get a credit for the full amount of COVID sick pay that was provided to their workers. The business credits proposed in the Governor’s office announcement would do nothing to offset the cost of the proposed COVID sick pay. This small grower would be solely responsible for paying $54,000 in sick pay wages. That amount does not even include the payroll taxes.

    If the Governor and legislature are going to use businesses to help slow the spread of COVID and get people vaccinated, then use some of that $31 billion surplus to assist business, such as the small farmer, in providing COVID sick pay. With the supply chain and logistic issues, many farmers took a loss last year. Adding COVID sick pay without a credit is a financial burden that is unsustainable.

  • As Farming Population Ages, New Partnership Offers Support and Tips for Transition Planning

    Nearly 40 percent of producers in California are over the age of 65 according to the most recent U.S. Census of Agriculture, slightly higher than the national average. The stability of California agriculture, the backbone of U.S. food production, is largely dependent on the successful change of hands to the next generation.

    As a result, many non-profits are instituting holistic succession planning programs to help farm families with the transition process. In California, California FarmLink offers a 12-month long program, The Regenerator: A Year of Farm Succession Planning, which addresses all aspects of transition, including tax and estate planning, business structure and valuation, as well as financing strategies.

    California FarmLink recently partnered with the California Agricultural Mediation Program (CALAMP) to set the stage for productive farm transition conversations and help participating families with any communication-related issues.  CALAMP is a nonprofit organization that provides free mediation and facilitation to those working in agriculture.

    CALAMP and California FarmLink offer these five tips for successful farm transition planning, an often overlooked but critical part of farm operations.

    Have a Champion & Prioritize the Discussion
    Have someone at the farm who is dedicated to moving the process forward. Often transition conversations are put on the back burner because people get too caught up in the day-to-day.

    Recognize Each Other’s Point of View
    It’s common for family members and stakeholders to have different visions for the future. It’s important to listen and recognize each other’s point of view as valid, whether you agree or not.

    Understand the Financial Picture
    The next generation should have access to the finances for the best chance of success. For example, unknowns can cause issues and prevent a successful transfer.

    Write Down Your Rough Draft for Transition of Assets and Management
    Write down your vision or ideas to ensure everyone is on the same page. This draft will help you finalize it with a professional.

    Get Help as Needed from a Facilitator
    A facilitator or mediator with experience in family coaching and succession planning helps create a sense of fairness. They’ll help set the agenda at family meetings, ensure nothing is missed, and help reluctant participants become more involved.

    “We provide free mediation services on a variety of issues facing farmers, including farm transitions.” said Matt Strassberg, CALAMP Program Director. “CALAMP’s services helped many families reach agreements about how to manage the farm going forward.”

    CALAMP offers both on-site mediation sessions and teleconferencing sessions so that everyone has access to this service no matter where in California they live.

    “Farm transition discussions don’t have to be limited to only family members. Some may want to involve long-term employees in future ownership or young farmers outside the business,” Strassberg said.

    For more information on FarmLink’s program, visit: https://www.californiafarmlink.org/succession. Or email Liya Schwartzman at liya@cafarmlink.org.

    For more information or to sign up for free mediation with CALAMP visit www.CALAMP.org where you can fill out an online request form. Or email Jenna Muller at jennam@emcenter.org or Mary Campbell at maryc@emcenter.org.

    About the California Agricultural Mediation Program:
    CALAMP is a program of the Environmental Mediation Center (EMC), a non-profit organization that designs and administers environmental and agricultural dispute resolution programs. CALAMP provides free mediation services to the agricultural community in California on a variety of issues including farm loans, credit issues, farmer/neighbor conflicts, leases, USDA conservation programs, organic certification, wetlands determinations, family farm transitions, and many more.

    About California FarmLink:
    California FarmLink is a 21-year-old nonprofit organization investing in the prosperity of farmers and ranchers through lending, education, and access to land. FarmLink works across the state with a focus on serving communities of color and beginning farmers and ranchers. The organization partners with farmers, ranchers, advisors, impact investors, public agencies and other nonprofits to grow and maintain support for next-generation growers.

  • NCAT Launches Nationwide ‘Soil for Water’ Regenerative Agriculture Project

    Farmers, ranchers, and land managers across the United States who are taking steps to catch and hold more water in the soil are invited to join the National Center for Appropriate Technology’s Soil for Water project. Building on an expanding peer-to-peer network of ranchers in Arkansas, California, Colorado, Montana, Mississippi, New Mexico, Texas, and Virginia, NCAT has opened the program to crop farmers, ranchers, and land managers in all 50 states who are learning together how to catch and hold more water in the soil.

    “The Soil for Water project is about implementing practical, cost-effective, and lasting ways to regenerate our soil — making farms, ranches, and communities more resilient in the face of climate disruption,” said NCAT Executive Director Steve Thompson. “We need to start thinking about healthy soil as permanent infrastructure that stores water to better withstand the impacts of droughts and floods. By connecting innovative farmers and ranchers, and tapping into their know-how, we see Soil for Water becoming a key player in regenerating and improving farmland across America. We welcome and encourage farmers and ranchers everywhere to join this free network at SOILFORWATER.ORG.”

    To date, more than 90 farms and ranches have joined the free and voluntary Soil for Water network. The project aims to include hundreds of farmers and ranchers who discover and share land management practices that improve soil health, catch more water in soil, reduce erosion, sustain diverse plant and animal life, and filter out pollutants, all while improving the profitability of their businesses.

    James Burch’s Mississippi farm has been in his family for a century. After a long military career, it’s only recently that he started putting the land back into production. He’s passionate about locally grown produce, grass-fed beef and pasture-raised pigs. His main concern is mitigating erosion and making sure the soil on his land doesn’t wash away into nearby waterways. That’s why Burch joined the Soil for Water network.

    “It’s important to build the soil to the point that you’ve got some kind of cover on it, and any time you get these big rains, it doesn’t take your topsoil to another area,” said Burch. “The vision for my farm is big. I’m taking it one step at a time and using proven methodologies to grow healthy food above ground and maintain healthy soil below ground.”

    Unhealthy soil doesn’t absorb much water. Healthy soil acts like a sponge, capable of holding hundreds of thousands of gallons of water in an acre. Climate trends across much of the U.S. indicate longer, hotter drought periods punctuated by storms that often are more severe, according to a 2021 USDA report. Regenerative farming practices enable the soil to capture rainfall that otherwise might disappear as runoff. Economically, these practices can increase crop and forage production, drought resilience, access to lucrative new markets, and therefore profitability. Environmentally, they can improve soil health and biodiversity.

    The expanded Soil for Water project encourages the adoption of regenerative land management practices through an interactive website, peer-to-peer forum, in-person and online networking opportunities, and the ability to connect with experts and land managers who are finding success with varied practices.

    The Soil for Water project launched in 2015 with support from the Dixon Water Foundation and the Meadows Foundation. Project investors include grants from the National Resources Conservation Service (NRCS), $980,000; The Jacob and Terese Hershey Foundation, $50,000; the Southern Sustainable Agriculture Research and Education (SARE) program, $1 million; and the Kathleen Hadley Innovation Fund, $20,000.

    To learn more about the newly expanded Soil for Water project, and to join the free network, visit SOILFORWATER.ORG.

    THE NATIONAL CENTER FOR APPROPRIATE TECHNOLOGY has been helping people build resilient communities through local and sustainable solutions that reduce poverty, strengthen self-reliance, and protect natural resources since 1976. Headquartered in Butte, Montana, NCAT has field offices in Arkansas, California, Colorado, Idaho, Kentucky, Mississippi, Montana, New Hampshire, Pennsylvania, and Texas. Learn more and become a friend of NCAT at NCAT.ORG.

  • New York Times Misses Mark on Beef Market

    North American Meat Institute (Meat Institute) — The New York Times’ The Daily podcast’s examination of the beef and cattle markets is simply wrong.

    The beef and cattle industry is a complex marvel of American ingenuity with innovations that have allowed the US beef industry to produce more meat with fewer cattle, while improving sustainability, food safety, affordability, worker safety and beef quality.

    There are many steps in the beef value chain: cow calf operators, feeders, packers, processors, wholesalers, retailers, and food service entities. To suggest only packers have a role in determining prices is misleading.

    The Times narrowed its focus to the struggles of one moment in a global pandemic and ignored that since the summer of 2021, prices for cattle producers have rebounded.

    In fact, cattle producers are earning the highest prices for their animals since 2014, which was the previous highest year on record. Multiple agricultural economists have predicted in congressional testimony, op-eds, and reports that, given a black swan event such as the COVID-19 pandemic, the markets have behaved predictably. They also predict that the cattle herd in America will shrink over the next two to three years, drawing down supply.

    The laws of supply and demand apply to packers as well as producers. While we cannot predict the future, we can learn from the past.

    In 2014, the last year of record profit margins for cattle producers, due to drought and other market conditions, there was a shortage of cattle and beef packers lost money. This led some of them to close packing facilities or to go out of business.

    The podcast leads the listener to believe that beef industry consolidation is increasing when it has had the same four firm ratio for nearly 30 years.

    If The Daily’s listeners would like to learn more about beef packing and processing, they can go to the U.S. Department of Agriculture’s economists for the facts.

    Supply and demand:

    Packers do not always profit:

    Beef prices rising at retail:

    Packer share of consumer dollar is the lowest:

    About North American Meat Institute

    The Meat Institute is the United States’ oldest and largest trade association representing packers and processors of beef, pork, lamb, veal, turkey, and processed meat products. NAMI members include more than 350 meat packing and processing companies, the majority of which have fewer than 100 employees, and account for more than 95 percent of the United States’ output of meat and 70 percent of turkey production.

  • CA Takes Major Share in Reclamation’s $20.5 Million for Drought Resiliency

    The Bureau of Reclamation is making its initial 2022 selection of 13 projects for $20.5 million in grants to build long-term drought resiliency. These projects will leverage more than $66.7 million in non-federal funding to complete projects in five states.

    “Climate change presents growing challenges to our communities across the West and the natural systems that we all depend on,” said Assistant Secretary for Water and Science Tanya Trujillo. “The Department of the Interior will continue to work with our partners to develop innovative solutions that address the challenges we face.”

    Reclamation will fund the projects through supplemental appropriations included in the first fiscal year 2022 continuing resolution. Reclamation may select additional drought resiliency projects once the regular fiscal year 2022 appropriations have been received. Applicants are being notified of project funding on a rolling basis.

    “The Western United States is experiencing unprecedented dryness and drought,” said Chief Engineer David Raff. “This WaterSMART funding will help communities be more resilient and diversify their water supplies as climate change makes droughts worse.”

    Reclamation’s Drought Response Program is part of WaterSMART. It supports a proactive approach to drought by providing water managers assistance to implement projects to build long-term resiliency to drought and climate change while supporting President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad.

    The 13 selected projects are:

    • Bear River Water Conservancy District (Utah), $2 million
    • Bella Vista Water District (California), $2 million
    • Casitas Municipal Water District (California), $2 million
    • City of Fresno (California), $293,450
    • City of Gallup (New Mexico), $2 million
    • City of Grand Junction (Colorado), $300,000
    • Delano-Earlimart Irrigation District (California), $2 million
    • Deschutes Irrigation District (Oregon), $1,370,473
    • North Kern Water Storage District (California), $500,000
    • Rancho California Water District (California), $2 million
    • San Bernardino Valley Municipal Water District (California), $2 million
    • South Coast Water District (California), $2 million
    • South San Joaquin Municipal Utility District (California), $2 million

    Please visit the Drought Response Program website for project descriptions and information on the program.

    Through WaterSMART, Reclamation works cooperatively with states, tribes, and local entities to plan for and implement actions to increase water supply reliability through investments to modernize existing infrastructure and attention to local water conflicts. Visit www.usbr.gov/watersmart to learn more.

    Reclamation’s efforts will be boosted by Bipartisan Infrastructure Law’s investments in water efficiency and recycling programs, water storage, rural water projects, watershed projects, dam safety and other projects that will ensure that western communities have the opportunity to leverage federal funding for their benefit.

  • USDA Announces Conservation Reserve Program Signups for 2022

    Agricultural producers and landowners can sign up soon for the Conservation Reserve Program (CRP), a cornerstone conservation program offered by the U.S. Department of Agriculture (USDA) and a key tool in the Biden Administration effort to address climate change and achieve other natural resource benefits. The General CRP signup will run from Jan. 31 to March 11, and the Grassland CRP signup will run from April 4 to May 13. 

    “We highly encourage farmers, ranchers and private landowners to consider the enrollment options available through CRP,” said Zach Ducheneaux, Administrator of USDA’s Farm Service Agency (FSA). “Last year, we rolled out a better, bolder program, and we highly encourage you to consider its higher payment rates and other incentives. CRP is another way that we’re putting producers and landowners at the center of climate-smart solutions that generate revenue and benefit our planet.”

    Producers and landowners enrolled 4.6 million acres into CRP signups in 2021, including 2.5 million acres in the largest Grassland CRP signup in history. There are currently 22.1 million acres enrolled, and FSA is aiming to reach the 25.5-million-acre cap statutorily set for fiscal year 2022.

    CRP Signups 

    General CRP helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland.

    Meanwhile, Grassland CRP is a working lands program, helping landowners and operators protect grassland, including rangeland and pastureland and certain other lands, while maintaining the areas as working grazing lands. Protecting grasslands contributes positively to the economy of many regions, provides biodiversity of plant and animal populations and provides important carbon sequestration benefits to deliver lasting climate outcomes.

    Alongside these programs, producers and landowners can enroll acres in Continuous CRP under the ongoing sign up, which includes projects available through the Conservation Reserve Enhancement Program (CREP) and State Acres for Wildlife Enhancement (SAFE).

    Climate Benefits 

    Last year, FSA enacted a Climate-Smart Practice Incentive for CRP General and Continuous signups, to better target CRP on addressing climate change. This incentive aims to increase carbon sequestration and reduce greenhouse gas emissions. CRP’s climate-smart practices include establishment of trees and permanent grasses, development of wildlife habitat and wetland restoration. The Climate-Smart Practice Incentive is annual, and the amount is based on the benefits of each practice type.

    Additionally, in order to better target the program toward climate outcomes, USDA invested $10 million last year in the CRP Monitoring, Assessment and Evaluation (MAE) program to measure and monitor the soil carbon and climate resilience impacts of conservation practices over the life of new CRP contracts. This will enable the agency to further refine the program and practices to provide producers tools for increased climate resilience.

    More Information on CRP 

    Landowners and producers interested in CRP should contact their local USDA Service Center to learn more or to apply for the program — for General CRP before the March 11 deadline, and for Grassland CRP before the May 13 deadline. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Due to the pandemic, some USDA Service Centers are open to limited visitors. Additionally, fact sheets and other resources are available at fsa.usda.gov/crp.

    Signed into law in 1985, CRP is one of the largest voluntary private-lands conservation programs in the United States. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. The program has evolved over the years, providing many conservation and economic benefits.

  • Students Gain Recognition for Research at California Weed Science Society Conference

    It’s 2022 and the California Weed Science Society was back in person at the Hyatt in Sacramento!

    It was touch and go leading up to the conference, but after it started everything seemed to go off without a hitch. There were lots of good exhibitors and a great lineup of speakers to listen to.

    My favorite part of the conference is the student presenters. This year we had a great turnout, with 5 graduate students participating in the oral contest, and 12 students in the poster contest (10 graduate, and 2 undergraduate).

    All of the students did an excellent job, making the final decisions by the judges quite difficult! Two independent judging panels compiled scores and delivered prizes. Below is a list of the Winners!!

    Undergraduate Poster Contest Winner

    First Place: Jennifer Valdez Herrera presented- Potential of Roller-Crimper Technology for Weed Suppression in Annual Crops. (Fresno State)

    Graduate Poster Contest Winners

    First Place: Wenzhuo Wu-The Comparative Flower development of Palmer Amaranth: Male vs. Female (Davis)

    Second Place: Sarah Marsh- Weed Control and Rice Response to Pyraclonil, A New Broad-Spectrum Herbicide in California Rice (Davis)

    Third Place: Aaron Becerra- Alvarez-Screening for Herbicide Resistant Weeds in California Rice Fields (Davis)

    Graduate Paper/Oral Winners

    First Place: Wenzhuo Wu-Sterile Pollen Technique as a Novel Weed Management Tool (Davis)

    Second Place: Liberty Galvin-Pre-emergent Oxyfluorfen Application to Control Weedy Rice in California (Davis)

    Third Place: Margaret Fernado-Impacts of Native and Introduced Cover Crops on Soil Health and Weed Populations in a Table Grape Vineyard of the San Joaquin Valley (Fresno State)

    I would like to thank all of the students who participated and attended the conference this year!

    If you know any students in weed science keep your eye out for the upcoming CWSS Scholarship program, and encourage them to participate in the contest at next year’s conference in Monterey! — By Thomas Getts, Weed Ecology & Cropping Systems Advisor, UCCE

  • DPR/EPA Approves Section 18 Emergency Registration for Kasugamycin on Almonds

    Almond Board of California — Today, the California Department of Pesticide Regulation (DPR) issued a Section 18 SPECIFIC exemption for the use of Kasumin 2L to control bacterial blast in almonds. The exemption is effective February 1, 2022 through April 15, 2022. In the announcement, DPR advised operations to use the chemical number for kasugamycin (6197) for their “Restricted Material Permit Program.”

    The approval applies to the counties of Butte, Colusa, Fresno, Glenn, Madera, Merced, San Joaquin, Stanislaus, Sutter, Tehama, Yolo and Yuba.

    Growers interested in this application are heavily encouraged to reference the Almond Board of California’s Honey Bee Best Management Practices as well as the Quick Guide for Applicators (in English & Spanish) to ensure pollinator health is maintained. As stated in these practices, growers should only use applications when absolutely necessary and should only make applications in the late afternoon or evening, when bees and pollen are not present.

    Please contact your local County Ag Commissioner’s office for further details if interested in using this product. This emergency exemption may also be viewed on the DPR website at http://apps.cdpr.ca.gov/section18. 

    Visit the California Department of Food and Agriculture website for a full list of County Ag Commissioners’ offices as well as contact information for each.

  • Supermarket Dietitian Program Features California Grapes

    For the last three months of 2021, retail dietitians shared tempting ideas for incorporating California grapes into meals with their clients in four states.

    Nine registered dietitians and licensed food nutritionists from a large grocery chain highlighted California grapes from October through December in 168 stores in Maryland, Washington D.C., Virginia, and Delaware. Dietitians held in-person and online classes designed to inspire their customer clientele with creative ways to use California grapes, including building a better charcuterie board. Among other things, the team of dietitians used blog posts and podcasts, social media, and an “Ask the Expert” column in Savory magazine to tempt consumers with grape usage and recipe ideas.

    “The outreach the dietitians conducted was broad and deep,” said Karen Hearn, vice president of domestic marketing for the California Table Grape Commission. “It was also beautifully done, full of enticing ideas and mouthwatering photos. The work was tied to retail promotions and we know it helped motivate consumers to purchase. The program will serve as a model for future work.”

    Hearn noted that the timing of the promotion was important because over 45 percent of the California grape crop shipped October through December.