California Ag Network

Category: Ag Economics

  • CAWG President John Aguirre to Step Down After 12 Years

    The California Association of Winegrape Growers (CAWG) announced the planned departure of its president, John Aguirre, effective May 31, 2022. He started with the association on June 1, 2010.

    “Leading CAWG has been a dream job,” Aguirre said. “I’ve had the privilege of working for outstanding volunteer leaders who are dedicated to the idea of advocacy on behalf of winegrape growers. I could not contemplate a better conclusion to my career as an association executive. My wife and I are planning a new chapter in our lives with a move to Portugal mid-year, but I intend to maintain my relationship with the wine industry.”

    Tom Slater, of Slater Farms in Clarksburg and chair of the CAWG board of directors said, “We are grateful that John gave us 12 years of steady leadership and his unwavering commitment to growers’ interests. No matter how tough the issues, he always provided a reassuring voice and wise counsel.”

    Under Aguirre’s leadership, CAWG increased its presence in Washington, D.C. by hiring a new federal government affairs team. Since 2010, CAWG has advocated for well-funded plant pest and disease programs and for a revamped agricultural guestworker program, obtained relief for winegrape growers from the Food and Drug Administration’s produce safety rule, and secured federal money for new programs of research on wildfire smoke issues and disaster assistance for growers affected by wildfires. More recently, Aguirre played a key role in the formation and operation of the West Coast Smoke Exposure Task Force, a group comprised of industry representatives from California, Oregon and Washington.

    At the state level, CAWG twice succeeded in reauthorizing grower assessments to address Pierce’s disease, the glassy-winged sharpshooter and the control of other pests; passed amendments to California’s processors law; and worked to protect growers from onerous new labor and environmental regulations.

    Aguirre has spent his career working on agriculture and food policy. He began his career in the U.S. Congress working for the Senate Committee on Agriculture, Nutrition and Forestry, and later for the House Committee on Agriculture. After leaving Capitol Hill, he worked for two food industry associations in Washington, D.C., and immediately prior to joining CAWG, Aguirre served as executive director of the Oregon Association of Nurseries.

    To ensure a smooth transition, Aguirre is working closely with Slater, who will meet with the CAWG board of directors this month to consider and formalize a transition plan. “The association is strong and we are well equipped to transition to new leadership,” Slater said.

  • FDA to Hold Public Meetings for Proposed Changes to Ag Water Requirements in Produce Safety Rule

    The U.S. Food and Drug Administration (FDA) will be holding two virtual public meetings on the recently released proposed rule “Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption Relating to Agricultural Water.” The purpose of the public meetings is to discuss the proposed rule, which was issued under the FDA Food Safety Modernization Act. These public meetings are intended to facilitate and support the public’s evaluation and commenting process on the proposed rule.

    The public meetings will be held according to the schedule below.  The times for each meeting have been adjusted to provide persons in different regions of the country an opportunity to comment.

    First Virtual Public Meeting
    February 14, 2022
    11:45 am – 7:45 pm EST

    Second Virtual Public Meeting
    February 25, 2022
    8:45 am – 4:45 pm EST

    Registration is required to attend the virtual meetings. Registered participants will receive details on how and when to view the public meetings online.

    Register for the February 14 Meeting

    Register for the February 25 Meeting

    For questions about the meetings, contact Juanita Yates, FDA, Center for Food Safety and Applied Nutrition: e-mail Juanita.Yates@fda.hhs.gov. For additional information, see the Federal Register Notice announcing the meetings and the Meeting Page.

  • CA Pre-Season Avocado Crop Estimate at 306 Million Pounds

    In December 2021, the California Avocado Commission surveyed industry handlers to develop the following 2022 California Avocado Pre-Season Crop Estimate (please note the California Avocado Commission’s crop year is aligned with the calendar year, January 1st through December 31st, and therefore information provided is for the 2022 calendar year.)

    Hass production is forecasted at 291 million pounds, Lamb-Hass at 9 million pounds, GEM at 5 million pounds, and 1 million pounds of other varieties, which comes to a total estimate of 306 million pounds. The Commission has also compiled detailed crop projections, including: pre-Season industry volume estimates broken down by month and variety; weekly harvest forecast utilizing AMRIC Handler Survey percentages for Hass variety (four-year historical forecast used for Lamb, three-year historical forecast used for GEM and Other); and weekly harvest forecast comparison of four-year historical forecast versus AMRIC Handler Survey.

    The Commission has also compiled detailed crop projections, including:

    • Pre-Season industry volume estimates, broken down by month and variety, based on AMRIC Handler Survey responses
    • Weekly harvest forecast utilizing AMRIC Handler Survey percentages for Hass variety (four-year historical forecast used for Lamb, three-year historical forecast used for GEM and Other)
    • Weekly harvest forecast comparison of four-year historical forecast versus AMRIC Handler Survey

    The Commission staff will remain in contact with growers, handlers and grove managers throughout the season, via surveys and telephone conversations, to track harvest strategy and will provide updated forecasts to the industry as they become available. As we have done in the past, CAC will plan to follow up with the handlers in February to discuss crop volume and harvest plans before the season gets underway.

    In addition to handler surveys and discussions, the annual grower crop survey and acreage inventory survey will be conducted in Spring 2022, with a mid-season crop estimate update available mid-May 2022.

  • Will Complacency Cost CA Walnut Farmers a Critical Tool?

    California walnut farmers should add one more item on your list of things to do before the end of the year – vote in the referendum to determine if the California Walnut Board should be continued.

    Ballots are due December 31 and growers who produced walnuts in California from September 2020 through August 2021 are eligible to vote.  Like all voters these days, walnut growers have disparate opinions. The pros and cons of the California Walnut Board (CWB) are no exception.  Some believe the promotion and education programs of the Board are responsible for moving product from store shelves and have grown consumer demand for walnuts. Some disagree.  I would encourage everyone to read an economic study conducted by Dr. Harry Kaiser of Cornell University that considers these and many other activities of the CWB. In its conclusion, this study found that without the investments made through the Walnut Board, grower returns would have been 18 cents per pound lower, which equates to $360 per ton.

    I represent the Walnut Bargaining Association (WBA), a grower cooperative devoted to sharing market intelligence and recommending grower prices so our members are informed on whether or not they are getting a fair price from their handlers. As the Executive Director of the WBA, I see tremendous benefits when growers band together and we believe our program has also contributed to higher returns for California walnut farmers.

    I don’t want to argue the merits of consumer advertising and promotion.  Instead, I need to point out the many CWB activities in addition to advertising and promotion that may be even more valuable to walnut growers and to organizations like the WBA.

    First of all, when it comes to grower profits, few things are more important than yield and cost per acre.  Over the years, walnut yields in California have increased significantly.  A great deal of this is attributed to improved varieties.  Over 60 percent of California’s walnut crop is from the Chandler variety which was developed through the California Walnut Board’s breeding programs.  Who will develop these improved varieties if the Walnut Board doesn’t exist?

    Yields have also been increased through new growing practices that have improved planting density and efficiency. The work done to accomplish this came as a result of CWB’s extensive research program which has also provides growers with information on how to lower inputs and improve irrigation schemes. The Walnut Board has also been a leader in researching the healthy attributes of eating more walnuts.

    Members of our Board at WBA work hard to ensure growers are getting the best returns possible.  To do this we must have accurate information and data.  The WBA relies heavily on crop estimates, statistics on bearing acreage and tree plantings and monthly reports on movement for inshell and meat pounds. This information is critical for growers to make planting and production decisions and has a big impact on the prices they receive. ALL of this data, and more, is provided by the Walnut Board. I can assure you this information would be difficult or impossible to attain were it not for the California Walnut Board.

    Some growers may be surprised to know this same kind of information from the CWB was used to directly help support more than $400 per ton paid to walnut growers for damages they incurred as a result of tariff issues. CWB information is also used to secure government purchases for public feeding programs under Section 32 to help alleviate supply imbalances.

    The decision to continue the California Walnut Board will be determined by growers.  Often, the voices of those who are unhappy outweigh those who are complacent.  Let’s not lose one of the most important tools walnut growers have at their disposal because you didn’t act to keep it. Please vote today. Additional details on the referendum can be found here. — By Jonathan Field, Executive Director, Walnut Bargaining Association

  • Areawide, Coordinated ACP Treatment Participation More Important Than Ever For Citrus Growers

    Citrus Branch Infected by Citrus Disease Vector — Asian Citrus Psyllid

    As the threat of Huanglongbing (HLB) continues, industry members know that the best way to prevent HLB from infecting our groves is to limit populations of the Asian citrus psyllid (ACP), which spread the deadly disease. This winter, it’s critically important for California’s citrus growing operations to actively participate in local, area-wide or coordinated treatments to further boost our industry’s efforts in the fight against the ACP.

    Over the past year, ACP detections have been spiking throughout areas of the state where it has not been declared well-established, including parts of the Central Valley and Central Coast. While treatment strategies are different in various regions of the state, participation in area wide or coordinated treatments is crucial in suppressing ACP populations. When we work together by timing treatment applications, we can leverage the strongest counter punch possible by limiting the areas where psyllids find safe harbor to avoid these treatments. In the process, we can protect not only our own groves, but those of our neighbors.

    The cost to manage ACP populations is far less than what the potential costs should HLB spread into our commercial groves. One only has to turn their eyes to Florida for a crystal ball’s view into our future should we not take action. While we have successfully prevented HLB detections in California’s commercial citrus groves thus far, I encourage growers to invest in this “insurance policy” to provide the best continued protection we have against this formidable opponent.

    Florida Citrus Orchard Dying of Huanglongbing disease

    Our industry continues to make strides in the fight against HLB and the ACP, but we’re stronger when we work as a collective. It is important to connect with your local grower liaison or pest control district, or view the treatments schedules on CitrusInsider.org for details on treatments in your area, as the preferred timing of treatments will vary per region. For more information on ACP treatments and effective materials, see the University of California’s UCIPM Pest Management Guidelines for Asian Citrus Psyllid. If you suspect ACP or HLB in your grove, please notify the California Department of Food and Agriculture Pest Hotline at 1-800-491-1899. — By Jim Gorden, Chair, Citrus Pest & Disease Prevention Committee

  • Meet CA Walnut Grower Georgia Crain of Crain Ranch

    Recently, the California Walnut Board talked with walnut grower Georgia Crain of Crain Ranch about her career evolution in the industry, how she used technology to modernize the logistics department, who her female role models are in the male-dominated industry, and more. Georgia is part of the third Crain generation to work on the ranch since her grandfather planted his first walnut tree in 1962. The Crain family is committed to driving the industry forward both on and off the ranch. Georgia’s father and uncle serve on the California Walnut Board, where they help guide activities to support the industry and increase demand for California walnuts, complementing efforts at the ranch level. Read on to hear more:

    Q – You’ve worked in many roles at Crain Ranch. Tell us about your career and your current role.

    A – Growing up I always helped with the family’s business, whether it be in the office or out in the orchard. I earned my bachelor’s degree in Business Information Systems from Chico State University and used what I learned to guide me when I started working in the logistics department of Crain Ranch.

    I’ve been working full-time in the industry for 12 years now, and in the last five years, I’ve been working in sales. I’m currently merging kernel and in-shell sales together, while also negotiating and meeting with customers domestically and internationally.

    Q – What has been your biggest career success, so far?

    A – Linking together various Crain Ranch departments in a way that has streamlined information and communication more effectively. This has leveled up the team and created a more cohesive environment.

    Q – What other impacts have you made at Crain Ranch?

    A – Through my work in the logistics department, I created a structure for inventory tracking that allows us to have more accurate, real-time data. Previously, we would manually track all the walnuts that came in, which wasn’t the most effective system. I created an automated system that tracks walnuts from the time they come in from the grower to when they go out on an outbound load. We also know how many walnuts are being processed.

    Q – As a woman, how did you evolve in your role in this male dominated industry? What advice do you have for other women in similar positions?

    A – The nut industry is certainly male dominated, with most women working in the broker or customer side of the industry. It takes a different type of female to be successful in a male dominated industry, but it’s not impossible. Over the years, I’ve learned to not let the big personalities get to me. My advice is to be direct, and most importantly, to be brave.

    Q – Who are your female role models in the industry?

    A – Detrie Smith is someone in the industry who everyone knows and respects. I look up to her because she’s a hard worker and a great person to work with. My grandma, Alice Crain, is also someone I have always deeply admired. She’s done everything from accounting, growing, sales and so much more. The company wouldn’t be where it is today without her. It was great growing up with such a determined mentor in the family and industry.

  • CA Avocado Commission State of the Industry Report Available

    To provide the California Avocado Commission (CAC) and the growers it serves with a better perspective on the health of the California avocado industry, CAC retained the Tootelian Company to conduct a member survey. Summary findings from the report are now available on the California avocado grower website.

    The survey was sent to all CAC members in August 2021. The 77-page report includes detailed findings concerning:

    • Farm acreage
    • Pounds harvested and crop values by district and acreage
    • Overall farm income, expenses and net margin
    • Farm income, expenses and net margin by district and acreage
    • Water sources
    • Overall irrigation costs
    • Irrigation costs by water source, district and acreage
    • Perceived threats to future profitability

    Highlights from the survey are as follows:

    • Across all districts, bearing acres comprised about 80% of total acres.
    • From 2018 – 2020, the average number of pounds harvested per bearing acre declined at a rate of -2.4% per year.
    • During this same time frame, the average crop value per bearing acre rose at a rate of 0.8% per year. When examined by the acreage of the operation, the annual growth rates in crop values per bearing acre (2018-2020) were 6.7% for farms with 10 acres or less, 2.3% for farms with 11 – 50 acres and -1.4% for those with 51 acres or more.
    • The three-year average for total expenses as a percent of gross income was 93.7% with an average net margin of 6.3%.
    • Average gross income was 2.7% per year with expenses growing at a 4.4% rate annually.
    • Respondents indicated they did not change their water sources much from 2018 – 2020 with District 1 and District 2 relying primarily on water agencies, District 4 utilizing mutual water companies and Districts 3 and 5 relying mainly on wells/surface water on the property.
    • Overall irrigation costs per dollar of crop value dropped from 18.9% in 2018 to 15.9% in 2020, with irrigation costs as a percent of total expenses dropping from 20.2% in 2018 to 15.3% in 2020.
    • The highest average irrigation costs per acre in 2020 were associated with mutual water companies ($1,389/acre) and water agencies ($1,157/acre) and lowest when growers combined well/surface water with water agencies ($698/acre) and wells/surface water with mutual water companies ($555/acre).
    • Respondents indicated the most serious threats to future profitability are water costs, costs of complying with government regulations and labor costs.
    • Other factors identified as threats to profitability included availability of water, imported avocados and environmental regulations.

    Findings from the survey will be used to help the Commission explore potential opportunities to address growers’ most pressing challenges.

  • Deadline Extended to Apply for Pandemic Support for Certified Organic and Transitioning Operations

    The U.S. Department of Agriculture (USDA) has extended the deadline for agricultural producers who are certified organic, or transitioning to organic, to apply for the Organic and Transitional Education and Certification Program (OTECP). This program provides pandemic assistance to cover certification and education expenses. The deadline to apply for 2020 and 2021 eligible expenses is now Feb. 4, 2022, rather than the original deadline of Jan. 7, 2022.

    “We listened to feedback from our stakeholders and are happy to provide organic producers, and those transitioning their operations, enough time to learn about the program and complete the application,” said Zach Ducheneaux, FSA Administrator.

    Signup for OTECP, administered by USDA’s Farm Service Agency (FSA), began Nov. 8.

    Program Background  

    Certified operations and transitional operations may apply for OTECP for eligible expenses paid during the 2020, 2021 and 2022 fiscal years. Signup for the 2022 fiscal year will be announced at a later date.

    For each year, OTECP covers 25% of a certified operation’s eligible certification expenses, up to $250 per certification category (crop, livestock, wild crop, handling and State Organic Program fee). This includes application fees, inspection fees, USDA organic certification costs, state organic program fees and more.

    Crop and livestock operations transitioning to organic production may be eligible for 75% of a transitional operation’s eligible expenses, up to $750, for each year. This includes fees charged by a certifying agent or consultant for pre-certification inspections and development of an organic system plan.

    For both certified operations and transitional operations, OTECP covers 75% of the registration fees, up to $200, per year, for educational events that include content related to organic production and handling in order to assist operations in increasing their knowledge of production and marketing practices that can improve their operations, increase resilience and expand available marketing opportunities. Additionally, both certified and transitional operations may be eligible for 75% of the expense of soil testing required under the National Organic Program (NOP) to document micronutrient deficiency, not to exceed $100 per year.

    Producers apply through their local FSA office and can also obtain one-on-one support with applications by calling 877-508-8364. The program application and additional information can be found at farmers.gov/otecp.

    Additional Organic Support    

    OTECP builds upon USDA’s Organic Certification Cost Share Program (OCCSP) which provides cost share assistance of 50%, up to a maximum of $500 per scope, to producers and handlers of agricultural products who are obtaining or renewing their certification under the NOP. Although the application period for OCCSP ended Nov. 1, 2021, FSA will consider late-filed applications for those operations who still wish to apply.

    Meanwhile, USDA’s Risk Management Agency (RMA) recently made improvements to Whole-Farm Revenue Protection to make it more flexible and accessible to organic producers.

    To learn more about USDA’s broader assistance for organic producers, visit usda.gov/organic.

  • New Way to Predict Grazing Cattle Weight Gain on Rangelands From Satellite Imagery

    USDA’s Agricultural Research Service (ARS) developed a unique approach to using satellite imagery to predict cattle weight gain on rangelands. By fusing multiple images over a period of time, scientists were able to monitor how forage quality changes over space and time in rangelands within the shortgrass steppe, and how this relates to the weight gain of free-ranging cattle throughout the summer grazing season.

    Managing the grazing season in rangelands can be challenging due to high variability in temperature and rainfall over time. From a manager’s perspective, it is essential to know when and where forage production and quality are changing to optimize free-range livestock weight gain and meet other environmental objectives. This is not just about chasing forage quantity (total amount of vegetation biomass); it is also about looking for the highest-quality forage throughout the season.

    “This study is probably the first-time high-quality datasets have been used to predict cattle weight gain directly from satellite imagery,” said Sean Kearney, Post Doc Research Associate in Fort Collins, CO.

    These three images show a progression (left to right) from lower-biomass/higher-quality forage to higher-biomass/lower-quality forage. Free-ranging cattle weight gain tended to be lower under conditions on the right, when diet quality was low, even if forage biomass remained high. Photos by Dr. Edward Raynor, USDA-ARS.

    In the study published in Ecological Applications, scientists used the satellite images, along with field observations from 40 different pastures grazed over a period of 10 years, to predict the performance of cattle grazing in Eastern Colorado throughout the summer season.  The study site, the Central Plains Experimental Range, is a Long-Term Agroecosystem Research (LTAR) network location.

    The cattle performance predictions – specifically, weight gain – were made from satellite-derived estimates of both forage quantity and quality. The satellite-based predictions of forage quality were a first for the region, and they proved to be especially important. Most notably, weight gain was affected by the timing of forage green-up and senescence (browning down).

    “We observed that in years when satellite images showed forage greening up earlier, before cattle began to graze, the quality of the diet declined more rapidly and cattle weight gain was lower, especially toward the end of the grazing season,” said Kearney. “In some years, plenty of biomass was still available late in the season, but a large portion of the high-quality forage was missed because it peaked (reached top quality) so early in the season. This resulted in cattle feeding on lower-quality grass, which reduced their performance.”

    With recent climate patterns of earlier spring green-up, higher temperatures and drier weather during the summer months, it is critical to determine the right time to start and stop grazing cattle, in order to match up grazing timing with high quality forage.

    “We knew forage quality mattered, but we didn’t know to what extent,” said Lauren Porensky, Research Ecologist. “Now we can estimate diet quality across space and time and have a better idea of what is causing changes in diet quality throughout the season.”

    What is next? Scientists are linking these new diet quality and vegetation maps with GPS collar data to better understand what drives cattle foraging behavior, as well as working on a new model to predict diet quality in near-real-time to support adaptive management efforts of ranchers and other rangeland managers.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in agricultural research results in $17 of economic impact.

  • North American Meat Institute to CDFA: Modified Prop 12 Rules Remain Flawed; More Time Needed

    In comments submitted to the California Department of Food and Agriculture (CDFA), The North American Meat Institute (NAMI) said, despite modification to proposed rules for Proposition 12 (Prop 12 or the law), the proposed rules remain flawed and more time is needed for compliance.

    “Until CDFA publishes final rules, no one can adequately prepare to comply with a law with criminal sanctions and that authorizes civil litigation,” said Mark Dopp, General Counsel and Chief Operating Officer at NAMI. “Rather than apply ‘band aids’ to address some challenges, NAMI suggests CDFA go further and afford everyone in the supply chain, from hog producers all the way to foodservice and retail entities, the 28-month preparation time the law, and the voters, contemplated before enforcing any aspect of Prop 12 or its regulations.”

    For the text of the comments, go here.

    Although CDFA modified the proposed rules and are to be applauded because they account for complexities in the supply chain or they bring the proposal more in line with the law, unfortunately, many parts of the May 2021 proposed rules remain intact and flawed. NAMI identified these flaws in its July comments and during the August public hearing.

    Prop 12 directed CDFA to promulgate regulations implementing the law by September 1, 2019. The rules are yet to be finalized even though some provisions take effect January 1, 2022.

    About North American Meat Institute
    The North American Meat Institute is a leading voice for the meat and poultry industry. The Meat Institute’s members process the vast majority of U.S. beef, pork, lamb, and poultry, as well as manufactures the equipment and ingredients needed to produce safe, high quality meat and poultry products.