California Ag Network

Category: Ag Economics

  • To Till or Not to Till? That is the Question

    Looking over fields prior to planting, a Shakespeare-in-overalls might also wonder: “Whether ’tis nobler to till and suffer the slings and arrows of soil erosion, decreased irrigation efficiency, and greater operational expense or take arms against such troubles by not tilling and run the risk of increasing pest cycles.”

    Farmers every year must decide whether to till their fields in the conventional manner or join the growing number of farmers who are going back to the roots of agriculture by preparing the soil using no-till methods. There are benefits — and drawbacks — to both systems. As the great poet once coined, “all that glitters is not gold.”

    According to Steven Mirsky, research ecologist with Agricultural Research Service’s (ARS) Sustainable Agricultural Systems Laboratory in Beltsville, MD, there are economic and environmental considerations for farmers to keep in mind when making their decision.

    Both methods “work” the soil, which gives the seeds a place to go and easier pathways for root systems, but each method effects the farmer differently. “Tillage turns the soil, while no-till uses disks to slice into the ground and slip seeds in the narrow slice,” Mirsky said. “There is no soil disturbance of substance in no-till.”

    In terms of labor, tillage-based systems require several field operations to prepare a seedbed. The soil must be worked and then packed to facilitate the best conditions for putting crop seed in the ground. No-till production requires heavy-duty planters that can cut the soil and put seed at a precise depth in the soil profile as well as close the slit the seed was deposited into.

    While tillage loosens up the soil, incorporates all surface residues, and leaves the surface clean, which helps improve the planting of cash crops, it also leaves the soil vulnerable to erosion, Mirsky said. On the other hand, no-till systems are excellent at reducing erosion, but do not break up pest cycles like tillage does.

    “No-till farming greatly reduces soil erosion,” Mirsky said. “Intact soils also maintain root channels that facilitate greater water infiltration and storage. No-till tends to increase soil organic matter in the top several inches of the soil. On the other hand, tillage can act to bury carbon and increase its storage. That said, overall, intensive tillage tends to burn up much of the soil organic matter, more so than no-till.”

    According to Mirsky, these operational matters impact the farmer economically, too. No-till tends to require much less fuel and labor expense because it does not require all the energy needed to push farm equipment through the soil. No-till typically requires less field operations and equipment.

    Over time, however, no-till systems can develop herbicide resistance if other integrated weed management strategies are not used, thereby increasing pest management requirements.

    Mirsky said there is another variable that could benefit no-till systems — cover cropping during the offseason.

    “Cover crops play an important role in helping to ensure the long-term viability of no-till farming,” he said. “Cover crops help dry out the soils in the spring to ensure earlier access for field operations and help conserve soil water in the summer during periods of drought, suppress weeds, and slow down the evolution of herbicide resistance.”

    If a farmer wants to try a no-till approach with cover cropping, harvest season is the best time to begin the process. Then the farmer may realize that parting with the till approach is not such sweet sorrow. – By Scott Elliott, USDA-ARS Office of Communications

  • Fresno Madera Farm Credit and CoBank Announce $30,000 Donation to Central California Food Bank

    Fresno Madera Farm Credit and CoBank announced today that they have made a $30,000 donation to Central California Food Bank’s Feeding Families Fund Drive. The donation will provide more than 210,000 meals to residents of Central California during a year when the food bank has seen a 25% increase in need in our community.

    “Central California Food Bank went from serving 280,000 people per month pre-pandemic, to more than 350,000 people per month this year,” said Denise O’Canto, Corporate Relations Manager with Central California Food Bank. “This generous donation will help us continue to meet that expanded need, especially as we move towards the holiday season when demand is at its highest.”

    This donation is part of CoBank’s larger Sharing Success program which relies on the local knowledge and expertise of the bank’s customers to identify nonprofit organizations that are truly making a difference in rural communities. As part of the Sharing Success program, and an additional California Food Bank program, CoBank matched Fresno Madera Farm Credit’s $15,000 donation, bringing the grand total to $30,000.

    “CoBank is humbled by the generosity of our customers and their commitment to support the rural communities they call home,” said Leili Ghazi, senior vice president of CoBank. “We know this donation will support the Central California families who need a little extra support during this tough time.”

    According to the Food Bank, in 2020-2021 more than 25% of the families visiting the food bank were there for the first time. O’Canto attributes that increase to massive unemployment due to COVID and the closing of more than 57 local agencies which typically provided food to the community.

    “When the pandemic started, schools closed, and then many of the churches and partner agencies that were providing food to families were operated by senior citizens who were told to stay home in order to stay safe,” O’Canto said. “We had to fill that need and come up with new ways to distribute food.”

    O’Canto said over the past year the Food Bank has started making deliveries to seniors, setting up new distribution sites, and pre-packaging foods for added safety – all of which have required additional resources.

    “Our staff and our customers are committed to supporting the communities in our region – and our partnership with the Central California Food Bank has always been an important part of our outreach,” said Keith Hesterberg, President and CEO of Fresno Madera Farm Credit. “We know our donation this year will help to support the food bank’s mission to address food insecurity in our area – at a time when area families need it most.”

    About Fresno Madera Farm Credit

    Founded in 1917, Fresno Madera Farm Credit is a farmer-owned cooperative and a proud member of the national Farm Credit System.  Located in one of the most productive agricultural areas in the world, FMFC provides credit and financial services to farmers, ranchers, and agribusinesses that grow, process, and market over 350 commodities that are shipped all over the United States, and the world. For more information about FMFC please visit fmfarmcredit.com, and for more information about the Farm Credit System, visit www.farmcredit.com.

    About CoBank

    CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides commercial loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities.

  • Western Growers to Honor Carol Chandler at the 2021 Annual Meeting

    Western Growers will honor agriculture advocate, educator, philanthropist and trailblazer Carol Chandler with the 2021 Award of Honor. The Award of Honor is Western Growers’ highest recognition of achievement and is given to individuals who have contributed extensively to the agricultural community.

    Chandler is partner of Chandler Farms in Selma, Calif., a fourth-generation family farming operation that was founded by W.F. Chandler in 1880 and grows grapes, peaches, plums, nectarines and almonds. Besides serving on the board of Western Growers – including her current tenure as Treasurer – Chandler, alongside her husband, Bill, were named Agriculturists of the Year by the California State Fair Board of Directors in 2020.

    “Underneath Carol’s warm and gracious demeanor lies a fierce and committed advocate for agriculture’s rightful place in our society,” said Western Growers President and CEO Dave Puglia. “There are few in our industry who have given so much time and energy in service to the greater good, and even fewer who have mustered the strength to stick with the fight even as others withdraw from disappointment. Advocacy is not for the faint of heart, which is one of many reasons Carol is so deserving of our highest honor.”

    “I was overwhelmed to be chosen for the Award of Honor,” Chandler said. “It’s meant so much to me to be on the Board of Western Growers through the years.”

    Besides operating Chandler Farms with her husband and sons, John and Tom, Chandler was chair of the President’s Water Task Force for California State University at Fresno; serves on the University of California President’s Advisory Commission on Agriculture and Natural Resources; and held positions with the University of California Board of Regents, the California State University Board of Trustees and the Fresno State Board of Governors. She is past state president of California Women for Agriculture, and she was named Woman of the Year by the California State Legislature twice, in 1992 and 2002. In 2004 the Fresno Chamber of Commerce named her Agriculturist of the Year.

    “The Central Valley has much to be proud of and Carol Chandler is at the top of that list,” said President & CEO of Woolf Farming and Processing Stuart Woolf, who will be emceeing the Award of Honor presentation at the 2021 Annual Meeting. “She’s a wonderful person, leader and great friend to many. Carol’s sharp mind, strong core values and eternal optimism make her a perfect role model. I’m very proud to call her my friend.”

    Chandler’s calling to give back to the agricultural community started early. After receiving her bachelor’s degree from the University of California at Davis and a master’s degree from California State University at Fresno, she taught in the San Joaquin Valley, including Fresno City College. Her philanthropic work includes belonging to the La Feliz Guild of Valley Children’s Hospital and receiving the Tapestry Award by Common Threads for outstanding achievements in agriculture.

    Now, it is time to recognize Chandler’s dedication to improving the businesses and lives of those in the agricultural community. Chandler’s achievements and service will be recognized at the Award of Honor Dinner Gala at the Western Growers 2021 Annual Meeting at the Fairmont Grand Del Mar in San Diego. The 2021 Annual Meeting will be held from Nov. 7 – 10, 2021; to register to attend, please go to the 2021 Annual Meeting website.

    About Western Growers:

    Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in California, Arizona, Colorado and New Mexico. Western Growers’ members and their workers provide over half the nation’s fresh fruits, vegetables and tree nuts, including half of America’s fresh organic produce. Connect and learn more about Western Growers on Twitter and Facebook.

  • National Dairy Council Communicates Dairy’s Nutrition, Sustainability Story Ahead of UN Summit

    The ability to nourish people amid unprecedented population growth of close to 10 billion by 2050 with escalating climate concerns takes center stage at the United Nations Food Systems Summit (UNFSS) on Sept. 23. The virtual event, which takes place during the UN General Assembly, will convene international stakeholders from across the food system with the goal of making food production and consumption more sustainable and will serve as a call to action to achieve the United Nations’ Sustainable Development Goals by 2030.

    The farmer-founded National Dairy Council (NDC) has conducted various dairy-focused educational outreach efforts with key thought leaders who have a shared interest in the outcomes the Summit can potentially have on a more nutritious and sustainable future for the world.

    “National Dairy Council is dedicated to sharing U.S. dairy’s science-based contributions to health and sustainable food systems as part of global conversations driving toward more sustainable food systems worldwide,” said Dr. Greg Miller, global chief science officer of NDC. “Our message has been clear: dairy is both a nutritional and environmental solution.”

    NDC has participated in one-on-one conversations and dialogues surrounding various UN-sanctioned meetings and events, including:

    • Conducting more than 30 conversations to share the science and progress demonstrating dairy’s role in sustainable food systems with thought leaders, including those representing the Food Systems Summit Scientific Group and Committee on World Food Security (CFS).
    • Teaming with the checkoff-founded U.S. Dairy Export Council, Global Child Nutrition Foundation and The Nature Conservancy to host an independent Food Systems Summit dialogue, which included dairy farmers and Fuel Up to Play 60 and GENYOUth students with more than 100 participants representing multiple sectors of the food system. Findings from the dialogue were submitted to UNFSS as part of its official process and included in a publicly available report that will be considered by UNFSS leaders.
    • Participating in more than a dozen other FSS dialogues, hosted by various organizations. Seven dialogues featured dairy farmer participation.
    • Reviewing and responding to seven scientific group reports through the UN’s public comment process to ensure the science-based perspective about dairy’s contributions to sustainable food systems is represented and shared with thought leaders.
    • Hosting a series of virtual experiences that highlighted the U.S. dairy industry’s game-changing solutions and the role dairy plays in building more sustainable food systems. The sessions, which were in collaboration with the National Milk Producers Federation (NMPF), included a focus on the Net Zero Initiative, FARM program and food security/hunger efforts.
    • Participating in UNFSS-related meetings, including public forums and informational sessions, such as Science Days and a pre-summit meeting with stakeholders.
    Marilyn Hershey, Dairy Farmer and DMI Chair

    Pennsylvania dairy farmer and DMI Chair Marilyn Hershey also spoke at sessions hosted by the World Farmers Organization and Solutions from the Land where she summarized the Net Zero Initiative, the industry’s environmental stewardship goals and the technologies and upcycling practices she implements on her farm. Her story reached hundreds of global thought leaders.

    Hershey said these checkoff-led efforts will help position the U.S. dairy industry in a positive light, domestically and globally, when the discussions get under way.

    “We’re really seeing the benefits of having decades of checkoff-led research in nutrition and sustainability, which has been part of the dialogue and considerations leading into the Summit and beyond,” Hershey said. “Being able to share science-based proof points is an important part of people seeing dairy’s holistic value when it comes to both human and planetary health.”

    Added Miller: “I can’t emphasize enough that our work to use science to continuously improve, to be a solution to environmental progress is just as important as our contributions to human health. In fact, in today’s landscape, you could argue it’s even more important. The Summit is a great opportunity for dairy’s heritage in science and activation of our science to shine brightly.”

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

  • CA Walnut Board Votes To Modernize Federal Marketing Order And Suspend Enforcement Of Mandatory Inspections Of Walnuts

    Cultivating industry prosperity for the long term is at the core of the California walnut industry’s strategic plan.  A year ago, the Grades & Standards Committee began working with US Department of Agriculture (USDA) looking into ways to update the outbound inspection process in order to remove redundancies and duplicative costs to bring more efficiency to the industry. As part of this process, the California Walnut Board (CWB) voted to suspend enforcement of mandatory USDA outbound inspections of California walnuts.

    This action resulted in USDA issuing a preliminary six-month moratorium on the enforcement of the mandatory inspection requirement, effective September 1, 2021.  The Board’s vote to suspend inspections stands to benefit the industry by mitigating market disruptions (i.e. labor shortages, shipping constraints) during the season. The Federal Marketing Order rules governing inspection, which date back to the Order’s inception in 1948, are obsolete as market and customer quality demands have since surpassed USDA grading standards.

    In addition to USDA programs, many handlers have already invested in state-of-the-art equipment to comply with food safety, quality, and traceability requirements set by the U.S. Food & Drug Administration (FDA), while also employing qualified staff to oversee rigorous programs to meet additional market-driven quality standards.

    “All handlers should know that despite non-enforcement of mandated outgoing inspections, the Dried Fruit Association (DFA) remains available for voluntary inspections and business needs,” said Eric Heidman, CWB Chair of the Grades & Standards Committee.

    The market already demands quality that well exceeds USDA grade standards and handlers will continue to inspect product to the specifications as contracted with their customers.

    “This moratorium will be extended when the CWB goes through the formal rulemaking process to modernize the Federal Marketing Order,” said Joshua Rahm, CWB Director of Regulatory & Technical Affairs. “As part of this process, CWB will establish a new method of assessing walnut handlers. We are hopeful the new authority will be available for the 2022-2023 crop year and expect assessments to be collected following the formal rulemaking process.”

    California walnut grower Donald Norene, stated, “I support the Board’s initiative to streamline and update the inspection process to keep up with current market demands and make it more efficient to save resources, ultimately working harder for the industry.”

    While the CWB works through the rulemaking process, it will continue essential operations by tapping budget reserves to offset the temporary non-collection of assessments.  The Board will be evaluating its spending to determine how to best operate until the formal rulemaking process is complete.

    About the California Walnut Board

    The California Walnut Board (CWB) was established in 1948 to represent the walnut growers and handlers of California. The CWB is funded by mandatory assessments of the handlers. The CWB is governed by a Federal Walnut Marketing Order. The CWB promotes usage of walnuts in the United States through publicity and educational programs. The CWB also provides funding for walnut production, food safety and post-harvest research.

  • NIFA Invests $30M to Help Boost Organic Farming and Ranching

    The U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) announced today an investment of over $30 million for 33 grants that support farmers and ranchers who grow and market high-quality organic food, fiber and other organic products. This investment is part of NIFA’s Organic Agriculture Program.

    NIFA’s investment in Organic Agriculture Research and Extension Initiative projects will help fund research, education and extension projects to improve yields, quality and profitability for producers and processors who have adopted organic standards. NIFA’s investment in Organic Transitions Program projects will support research, education and extension efforts to help existing and transitioning organic livestock and crop producers adopt organic practices and improve their market competitiveness.

    “As we work together to build a diverse, resilient and robust agricultural supply chain and ensure nutrition security for all Americans, these grants will support research and extension efforts at local universities to provide valuable information and training, especially for local, small farmers and producers,” said NIFA Director Dr. Carrie Castille.

    Examples of the 22 funded Organic Agriculture Research and Extension Initiative grants include:

    • The demand for organic rice in the U.S. exceeds domestic supply and leads to significant import competition. University of Arkansas will lead efforts to expand organic rice production in the U.S. and develop a multistate outreach program to share information generated by this project. ($456,111)
    • University of Vermont will work with both the organic dairy industry and the organic aquaculture industry to further develop a partnership for feeding organic seaweed to cows, while financially benefiting both markets in a sustainable manner. ($2,900,000)
    • The University of California (UC) recently created the Organic Agriculture Institute (UC OAI) to facilitate the development of research and extension programs for organic agriculture in California. This planning proposal will support efforts of the UC OAI to identify and build partnerships with a wide range of organic agriculture stakeholders to form the California Organic Agriculture Knowledge Network (Cal OAK Network). The UC OAI will then convene the Cal OAK Network around specific crop groups that includes tree nuts, tree fruit, raisins and rice. ($49,440)

    Examples of the 11 funded Organic Transitions Program grants include:

    • University of Wisconsin will lead a multi-state, multi-disciplinary project to implement a systems approach to overcome challenges faced by growers transitioning to organic strawberry production, aiming to increase and sustain organic day-neutral strawberry production in the Upper Midwest. ($525,000)
    • Oregon State University will use essential oils to develop products to suppress or prevent potato sprouting in organic potatoes to address an important industry issue related to organic potato storage and control of premature sprouting. ($595,000)
    • Middle Tennessee State University will evaluate the effectiveness of biological control microbial agents and botanical extracts on fungal disease prevention and treatment for organic American Ginseng production. ($455,000)

    NIFA invests in and advances agricultural research, education, and Extension across the nation to make transformative discoveries that solve societal challenges. NIFA supports initiatives that ensure the long-term viability of agriculture and applies an integrated approach to ensure that groundbreaking discoveries in agriculture-related sciences and technologies reach the people who can put them into practice. In FY2020, NIFA’s total investment was $1.95 billion.

    Visit our website: www.nifa.usda.gov; Twitter: @USDA_NIFA; LinkedIn: USDA-NIFA. To learn more about NIFA’s impact on agricultural science (searchable by state or keyword), visit www.nifa.usda.gov/impacts.

  • Almond Alliance’s Elaine Trevino Nominated as US Chief Agricultural Negotiator

    On September 13th, President Biden announced his intent to nominate several individuals to serve as key economic and trade representatives, including the Elaine Trevino to serve as Chief Agricultural Negotiator at the United States Trade Representative.

    Elaine Trevino is the President of the Almond Alliance of California (AAC), a member-based trade association that advocates on regulatory and legislative issues in areas of international trade, food safety, water quality and availability, crop protection, air quality, worker safety, supply chain and feed quality. As the leader of an organization that advocates for California’s leading agricultural export, Elaine understands tariff and nontariff barriers to trade and the importance of maintaining America’s strong trade agreements and global positioning. Elaine has worked on advocating for funding for COVID-19 relief, addressing retaliatory tariffs, climate smart farming, public private partnerships for opening new markets and strengthening existing markets and addressing technical sanitary and phytosanitary barriers. Elaine works at the local and federal levels on addressing port congestion, supply chain disruptions and excessive costs.

    Elaine served as a Deputy Secretary at the California Department of Food and Agriculture for Governor Arnold Schwarzenegger and Governor Gray Davis. She was responsible for the oversight of the international export and trade programs, specialty crop block grant funding, division of marketing services, plant health and pest prevention and the statewide county fair network. Elaine serves on USDA’s Agricultural Policy Advisory Committee (APAC). Born and raised in the Central Valley of California, Elaine has a long history of community service and has a great respect for agriculture and the value of the industry to the overall economy. She received her undergraduate degree from the University of California Berkeley and attended the John F. Kennedy School of Government. Elaine and her family currently reside in Sacramento, California.

    Almond Alliance Chairman Mike Curry shared, “We are thrilled to see Elaine nominated for this position and know that her experience with us at the Almond Alliance will carry over into her new role – working first for farmers and ranchers, their families and the workers and businesses in the rural communities where we live. Her new position is responsible for conducting and overseeing international negotiations related to trade of the nation’s agricultural products – all of them including California almonds. Elaine’s nomination requires U.S. Senate confirmation (which will take time) and be assured that the Board of Directors of the Almond Alliance will lead a smooth transition in partnership with Elaine to identify and hire her successor. While we’re transitioning, the Board, Elaine and the Almond Alliance team will not skip a beat in our advocacy work on behalf of California almonds, both on the state and federal levels. Although we will miss Elaine’s leadership and energy, we are excited for the almond industry, the Central Valley (where she grew up) and California agriculture to have such a passionate and committed person serving in the Chief Agricultural Negotiator role.”

    Of Trevino, Matthew Malcolm, Editor of Pacific Nut Producer Magazine shared, “While faithfully serving the California almond industry in her role as President of the Almond Alliance of California, Elaine has also demonstrated time and time again her commitment to the greater agricultural community in her tireless efforts and involvement in addressing issues such as food supply chain disruptions, international trade disputes, securing funding for agricultural burn alternatives, and much more.  While she will be missed in her role at the Almond Alliance, we are thrilled with the opportunity she will have to represent the interests of farmers at such a critical time as this. We are confident that she will continue to do great things, as she has done for the almond industry.”

    Richard Waycott, President & CEO of the Almond Board of California concurred, “We are thrilled to see Elaine nominated for this critical position, in recognition of the importance of California agriculture and the role of specialty crops like almonds.  We’ve worked closely with Elaine and the Almond Alliance over the years in addressing global trade issues, and look forward to supporting her in her new role as chief ag negotiator.”

    Manuel Cunha President of the Nisei Farmers League added, “I believe Elaine will do a great job representing our agricultural industries. She knows the commodities and markets very well. She is bright and bold.  She understands the politics and knows how to communicate well with both farmers and legislators.”

    Of the nomination, United States Trade Representative Katherine Tai shared, “Elaine Trevino understands the importance of America’s farmers and farming communities to the vitality of our economy. Her experience will help the Biden Administration craft durable trade policy that creates broad-based prosperity. Throughout her impressive career serving in leadership positions at the state and federal level, Elaine has developed strong relationships with key stakeholders and demonstrated a keen understanding of trade and agriculture policy. If confirmed as Chief Agriculture Negotiator, Elaine would be the first woman of color and the first Latina in this critical position that will help USTR advance President Biden’s vision to increase American competitiveness. I hope the U.S. Senate can quickly confirm her to fill this important role so she can get to work on behalf of the American people.”

    Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association added, “Having had the pleasure of serving on the USDA Agricultural Policy Advisory Committee for Trade with Ms. Trevino in recent years, I’m confident she will position U.S. agriculture interests competitively, remain vigilant to protect U.S. businesses from myriad barriers to trade, and embrace diplomacy and relationship-building. As a resident Californian and former deputy secretary of the California Department of Food and Agriculture, Elaine Trevino is well aware of the importance of trade to California—the state exported $2 billion worth of dairy products in 2020— and to U.S. dairy. IDFA is eager to get to work with Ms. Trevino to continue the growth of our dairy exports and the global competitiveness of the dairy industry. We encourage the U.S. Senate to confirm her quickly.”

    “The role of Chief Agricultural Negotiator is essential in pursuing positive trade policy results for U.S. dairy farmers and in expanding overseas markets for dairy products,” said Jim Mulhern, president and CEO of National Milk Producers Federation (NMPF). “NMPF is pleased that in choosing Ms. Trevino to nominate for this position, President Biden has selected someone with the right background and clear understanding of trade’s importance to American agriculture, both of which are vital to success in this position. I’ve been fortunate to serve on the president’s Agricultural Policy Advisory Committee with Ms. Trevino and hope to see swift confirmation of her nomination by the Senate so she can commence the work that’s so key for farmers across the country.”

    “U.S. dairy farmers, exporters and manufacturers have been eagerly awaiting the nomination of a Chief Agricultural Negotiator given the sizable role that trade plays in providing a home for the equivalent of more than a day’s worth of U.S. milk production each week,” said Krysta Harden, president and CEO of US Dairy Export Council. “The world needs U.S. dairy and U.S. dairy needs the world. Our industry is eager for additional market opportunities to help us create more jobs here in America as we meet that demand with our high-quality, sustainably produced products. We urge the Senate to move swiftly to confirm Ms. Trevino and look forward to working closely with her to expand markets around the world.”

    Doug Palmer in the Politico Pro shared, “Biden has been under pressure from farm-state senators to fill the position, which Congress created 20 years ago to elevate the importance of agricultural issues in U.S. trade negotiations. Depending on the year, anywhere from 18 percent to 40 percent of the income U.S. farmers earn is derived from goods transported to other countries… By selecting Trevino, Biden helps fulfill his goal of bringing diversity into his administration, while also giving a key position to someone from the largest U.S. agricultural exporting state.”

    Palmer continued, “The Senate Finance Committee will schedule a hearing on Trevino’s nomination sometime after it has received her official paperwork from the White House. Her nomination is the last of six Senate-confirmed positions in the Office of the U.S. Trade Representative that Biden needs to fill. Of those, only U.S. Trade Representative Katherine Tai is already on the job.”

  • Losses in Over 20% of Sales due to Continued Port Congestion

    Almond Alliance of California — The transportation crisis continues for agriculture exporters and seems to be worsening as the holiday season nears. Increased costs, rescheduling, cancellations, detention and demurrage charges up 300% and lost markets are some of the realities the industry is facing. Based on numerous sources, over 20% of sales cannot be completed due to ocean carrier rates, declining to carry export cargo, unreasonable demurrage and detention charges, and other practices.  As an industry that is international holiday focused, this issue continues to be a top priority for almonds.

    The Almond Alliance continues to focus on this issue and work closely with AgTC, several stakeholder organizations, logistic companies and of course the Port of Oakland.  Here is a summary of recent efforts related to port congestion and related Almond Alliance action items.

    Federal Maritime Update (FMC):

    The FMC launched an expedited inquiry into the timing and legal sufficiency of ocean carrier practices with respect to certain surcharges. There are eight ocean carriers being asked to provide the Commission’s Bureau of Enforcement (BOE) with details about congestion or related surcharges they have implemented or announced. This action was taken in response to communications received by the Commission from multiple parties reporting that ocean carriers are improperly implementing surcharges. The companies contacted are CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line; and Zim. Each ocean carrier was identified as having recently implemented or announced congestion or related surcharges. Ocean carriers are subject to specific requirements related to tariff changes or rate increases, including providing a 30-day notice to shippers and ensuring that published tariffs are clear and definite.

    The FMC has indicated that they are committed to transparency and Chairman Maffei has said, “As Chairman, I want to know the carriers’ justifications for additional fees, and I strongly support close scrutiny by the FMC’s Bureau of Enforcement aimed at stopping any instance where these add-on fees may not fully comply with the law or regulation.”

    In summary, the FMC is working on the below items:

    • The Fact Finding 29, led by Commissioner Rebecca Dye, to identify operational solutions to cargo delivery system challenges.
    • FMC Ocean Carriers Audit Program which will analyze the top nine carriers by market share for compliance with the Commission rule interpreting 46 USC 41102(c) as it applies to detention and demurrage practices in the United States. Other focus areas of the audit process may include practices of companies related to billing, appeals procedures, penalties assessed by the lines, and any other restrictive practices. Lucille Marvin, the Commission’s Managing Director, is leading the audit.  
    • FMC is committed to transparency facilitating ongoing stakeholder discussions and roundtables.

    The Commission can initiate enforcement actions for improperly established tariffs based on their findings. We will let you know when the inquiry on Shipping Act violation findings are released. If you want to file a formal complaint, please contact the Almond Alliance and we will walk you through the process.

    The Federal Maritime Commission recently announced their National Shipper Advisory Committee. The Committee is comprised of 24 members, evenly divided between those who export cargo from and those who import cargo to the United States, that will advise the Commission on policies relating to the competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system. Joshua Woods from Blue Diamond Growers will serve on the advisory committee.  The Almond Alliance will continue to communicate industry challenges to the Commission and newly formed advisory committee.

    Action Item:  The Almond Alliance continues to engage with the FMC staff and will be transmitting a letter to the commission regarding the impacts to the California almond industry and our requests for action. In addition, we alerted the FMC that due to the delays at the Port of Los Angeles and Port of Long Beach the number of vessels that have bypassed the Port of Oakland, we believe due to time constraints, has soared. The number of vessels that have bypassed the Port of Oakland in comparison to last year is approximately 40 (from July 2020 to July 2021) which furthers the challenges that almond exporters are facing.

    Recent Roundtables Facilitated by FMC:

    Port of Oakland on August 30, 2021: Oakland Port executives, with Federal Maritime Commissioner Carl W. Bentzel, California State Transportation Agency Secretary David S. Kim, importers, exporters and stakeholders discussed the port congestion challenges and how to strengthen Oakland’s place in the global supply chain and strengthen the state and federal economies. Attendees asked for support from maritime leaders to streamline seaport operations and communications and collaborate on making the supply chain transparent for customers and operators. FMC and CalSTA asked for recommendations on how to alleviate the port congestion and improve communication between importers, exporters, the Port of Oakland, logistics and carriers.  The Almond Alliance requested longer night gate hours, requirements on the percentage of empty containers returning on a vessel, improved notifications from carriers on early calls and blank sailings, explanation of increased fee methodology and compensation for third party fees on storage and chassis. While our requests are ambitious, our goal is to push for transparency on the issues important to our exporters.

    Port of Long Beach on September 1, 2021: The Long Beach roundtable focused on supply chain transparency and how equipment and operations move cargo in and out of the largest port complex in the United States. Commissioner Bentzel was joined by Congressman Alan Lowenthal, who has represented the LA/LB port complex at the local, tate and now federal level for decades. Long Beach and Los Angeles Port Directors Mario Cordero and Gene Seroka also joined as well as representatives of rail lines, trucking, chassis, container lines, and terminals.

    Action Item:  The Almond Alliance was asked to summarize and update the impacts that the port congestions have had on almonds.  We are in the process of drafting and will submit soon.  We need to hear from our handlers if expanding night gate hours for truckers at the Port of Oakland will be helpful and utilized. Please email us and express your support. This will help our effort to expand gate hours at the Port of Oakland.

    Port Update:

    Port of Oakland: A year-long cargo surge slowed and volume dipped at the Port of Oakland in July. The Port recently reported it expected containerized cargo volume growth to resume as peak shipping season arrives. Though business dipped in July, the Port said year-to-date import volume has increased 16 percent. Total volume in the same period is up 9 percent.

    According to the Port, cargo volume declined 3.5 percent in July compared to the same month a year ago. Here’s the breakdown:

    • July containerized imports down 1.7 percent year-over-year;
    • July containerized exports down 4.7 percent Y-O-Y; and
    • July total volume, which includes imports, exports and empty container repositioning, down 3.5 percent Y-O-Y.

    The Port attributed the declines to record cargo volume in the first half of the year. It explained that surging shipments stacked up on docks causing delivery delays. The Port said that as a result, shipping lines omitted several voyages to Oakland, leading to lower volumes.

    The Port said that cargo volume should increase again from August through October. Those are peak shipping months for retailers building holiday inventories. Oakland has introduced two new vessel services to Asia in the last month which should also boost volume. The Port said new services demonstrate continued reliance on Oakland as a key global trade gateway.

    Action Item:  The Almond Alliance is working with the Port of Oakland to encourage longer hours of service at the night gate, with an early opening time. If you have an opinion on this issue, please contact the Almond Alliance.

    Union Negotiations:

    All of our almond exporters are concerned with the upcoming labor negotiations which are set to begin in January 2022. Given the existing conditions at the Port of Oakland, an impasse would be devastating.  While labor negotiations impact the Port of Oakland, the two parties negotiating are the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). The Almond Alliance is meeting with ILWU and PMA and will continue to monitor contract negotiations and update on the progress.

    Legislation of Interest:

    Congressmen John Garamendi and Dusty Johnson are authors of the Ocean Shipping Reform Act of 2021 “OSRA21”. The Act’s provisions address the unreasonable detention and demurrage charges, export cargo bookings, and other carrier practices that are essential to allow US agriculture to remain competitive in global markets. The Almond Alliance strongly support provisions in the bill to gain reasonable and fair ocean carrier practices consistent with the Federal Maritime Commission’s Interpretive Rule on Demurrage and. It imposes upon carriers the obligation to self-police compliance with that Rule. In addition, the bill obligates ocean carriers to carry export cargo, to the extent they can do so safely. It addresses carrier practices limiting efficient use of containers, chassis and other equipment. The Almond Alliance will continue to work on advancing and strengthening this bill as it proceeds through the legislative process.

    To view the Ocean Shipping Reform Act of 2021, Click Here.

    To view the Ocean Shipping Reform Act of 2021 Factsheet, Click Here.

    Action Item:  Please check the list below. If your Congressional Representative (or one that you know) is not on the list of co-sponsors of OSRA21, please contact them directly to request they co-sponsor the bill.

    A current list of Co-sponsors of OSRA21:

    Rep. Johnson, Dusty [R-SD-At Large]* 08/10/2021
    Rep. Costa, Jim [D-CA-16] 08/13/2021
    Rep. Newhouse, Dan [R-WA-4] 08/13/2021
    Rep. Smith, Adrian [R-NE-3] 08/13/2021
    Rep. Valadao, David G. [R-CA-21] 08/13/2021
    Rep. Schrier, Kim [D-WA-8] 08/13/2021
    Rep. Thompson, Glenn [R-PA-15] 08/17/2021
    Rep. Gottheimer, Josh [D-NJ-5] 08/17/2021
    Rep. Fitzpatrick, Brian K. [R-PA-1] 08/20/2021
    Rep. Brownley, Julia [D-CA-26] 08/27/2021
    Rep. Keller, Fred [R-PA-12] 08/31/2021
    Rep. Panetta, Jimmy [D-CA-20] 08/31/2021
    Rep. Baird, James R. [R-IN-4] 08/31/2021
    Rep. Van Drew, Jefferson [R-NJ-2] 08/31/2021
    Rep. Meuser, Daniel [R-PA-9] 09/03/2021
    Rep. Womack, Steve [R-AR-3] 09/10/2021
    Rep. Jacobs, Chris [R-NY-27]    09/10/2021

  • Dairy Associations Urge Additional White House Action on Ports Crisis

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) joined several other organizations urging the Biden administration to take additional steps to alleviate the ongoing ports crisis in a letter sent today to the White House from a coalition of 77 agriculture and food associations.

    Since early 2021, dairy and other agriculture exporters have been facing unprecedented challenges in securing shipping container space on ocean vessels while contending with an accumulation of exorbitant detention and demurrage fees. Foreign owned and operated ocean carriers have been driving this crisis by providing unpredictable and unreasonable timelines for exporters to load agricultural goods and by exacerbating pressure on supply chains by opting to return empty containers rather than allowing time for them to be loaded with Asian-bound goods for the vessel’s return journey. As a result, over 70% of containers are leaving West Coast ports empty, an all-time record.

    Delays and an intentional lack of transparency and flexibility from ocean carriers have cost American dairy exporters over $300 million dollars through just the first half of the year, or 12% of total export value. In addition to this added cost, continued delays put at risk critical trading relationships with Asian importers as the U.S. increasingly risks becoming viewed as an unreliable supplier.

    “We thank the Biden administration for the initial actions taken to address the extraordinary challenges dairy exporters are facing when exporting their products,” said Krysta Harden, USDEC president and CEO. “Unfortunately, the shipping crisis only continues to grow as container availability becomes scarcer with the ocean carriers’ increasing refusal to export American-made products. To further its goals of supporting the workers and companies producing Made-In-America products, we are urging the White House to take a more active role in ensuring that foreign carriers are not permitted to dictate U.S. export flows and put our established trading relationships in jeopardy. Right now, imports seem to be enjoying the equivalent of an eight-lane highway while our exports have been relegated to narrow country roads; that’s not right and we know that Congress and the Administration can take steps to create fairer trading practices.”

    “Without question, ocean carriers are abusing a unique situation created by the pandemic and the lack of sufficient regulatory action to enforce reasonable shipping practices,” said Jim Mulhern, NMPF president and CEO. “We recognize that increased import demand has driven higher rates for shipping, but it does not warrant the cancellations, refusal to load U.S. dairy and agriculture products, and unreasonable detention and demurrage practices that ocean carriers have turned into an additional revenue stream. It is imperative that the Administration takes immediate steps to work with Congress and the FMC to limit these unfair practices and ensure our exporters can reach their customers around the world.”

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

    The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

  • California’s Local Meat Suppliers Struggle to Stay in Business

    The University of California, Davis, Food Systems Lab has released a white paper showing the need to support California’s small and mid-scale meat suppliers and processors in order to build a more resilient meat supply chain. It describes how the meat supply chain and rural economies could benefit from regulatory changes and more collaboration among producers and other stakeholders in the system.

    The pandemic shut down meat processing plants in 2020, as did recent ransomware attacks on JBS, the nation’s largest meat supplier. Report authors said this highlights the need to support small- and mid-scale suppliers.

    “COVID and the ransomware attacks put a spotlight on how the concentration of the meat supply chain increased vulnerability in the food system,” said report co-author Tom Tomich, founder of the UC Davis Food Systems Lab and distinguished professor in the Department of Environmental Science and Policy. “We need to level the playing field so small- and mid-scale farms have an easier way to bring their product to market.”

    The report says the lack of access to slaughter facilities, limited capacity of cut and wrap facilities, and concentration of marketing channels create conditions in which small- and mid-scale farms and ranches struggle to stay in business.

    “These challenges are exacerbated by policies that tilt the playing field against small operators. Fortunately, new state and national legislation and programs are developing that could increase resilience in our food systems,” says Michael R. Dimock, Roots of Change program director and lead author for the report. “We need cities and counties to help fix the problems because local land use policies often impede development of resilient supply chains.”

    Lack of Access & Limited Capacity

    Smaller ranchers in California have limited access to slaughter and processing facilities. In the last 50 years, California has lost half of its federally inspected meat processing plants, and the remaining facilities are unable to meet demand. Many of the 46 USDA-certified slaughter plants operating in California are closed to smaller producers.

    “This means that smaller ranchers must drive hundreds of miles to reach a facility or have to wait months due to limited capacity,” said Tomich.

    The report said a combination of federal, state and private investments could provide a broader geographic distribution of plants of differing scales. It also suggests expanding mobile, on-farm slaughter operations for sheep, goats and hogs, similar to those for beef.

    Regulatory Barriers & Opportunities

    Complex inspection requirements and other regulatory barriers make it difficult for small- and mid-scale producers to compete with big suppliers. The report suggests California create its own meat inspection program equivalent to the federal program to serve smaller ranchers. Prioritizing public procurement of local, high-value meat would also help expand market access for smaller producers.

    Broader Benefits of Smaller Operators

    The report notes other beneficial roles of small- and mid-scale livestock operations, apart from the potential to increase resilience in our food system. Livestock grazing is a cheap and effective way to reduce wildfire risk. Supporting local meat processing also helps rural economies and creates community-based jobs.

    The report was based on 27 interviews with people representing a wide spectrum of activities and points of view within the meat supply chain throughout the state. Authors are Courtney Riggle, Allan Hollander, Patrick Huber and Thomas Tomich of the UC Davis Food Systems Lab, and Michael R. Dimock with Roots of Change.

    Funding for the study came from the TomKat Foundation and USDA Hatch Program. — By Amy Quinton, UC Davis