California Ag Network

Category: Ag Economics

  • Mendocino Winegrowers Successfully Passes ‘Mendocino County’ Labeling Law

    Mendocino WineGrowers (MWI), the wine marketing organization for Mendocino County, is proud to announce their success in getting conjunctive labeling passed for the County.  As of January 1, 2023 all wines labeled with an AVA located in Mendocino County must also include “Mendocino County” on the label.  This designation is a huge coup for an area whose grapes are prominently used in many notable Californian wines, but is still a lesser known region for the average consumer.  Conjunctive labeling has been proven to successfully enhance the recognition of AVAs, especially smaller AVAs, as per a study done by Sonoma State in 2017 on the effects of labeling.

    The MWI Board began exploring the idea of a conjunctive labeling program to improve consumer identification and understanding of the region’s wines early in 2018. Given the strong evidence that conjunctive labeling programs benefit the regions that enact them, a draft proposal for Mendocino County was crafted by MWI. The language, largely based on the successful Monterey program, was designed for simplicity and minimal impact on wineries.  MWI worked closely with Californian Senator Mike McGuire who drafted bill SB1009 and championed it through the State Senate, winning approval by Governor Newsom and ultimately achieving its approval.

    “Conjunctive labeling is crucial to growing consumer recognition, as proven by its success with other notable regions such as Napa and Sonoma.  We are thrilled to have this new vehicle to get Mendocino County the spotlight it deserves. Our wines are highly coveted, yet many consumers mistaken them for other regions and with this new tool we feel we can broaden our customer base and grow the already impressive following we have achieved so far,” said Bernadette Byrne, Executive Director of Mendocino WineGrowers, Inc.
    Exact details of the new labeling law are as follows:
    WHAT: Any wine labeled with an AVA that is located entirely within Mendocino County or a vineyard designation within Mendocino County, must also include “Mendocino County” on the label.
    PLACEMENT: “Mendocino” (if the AVA falls within the Mendocino AVA boundary) or “Mendocino County” would be placed on the front OR back label.

    TYPE SIZE: For containers 188 ml. or larger, type size would be 2 mm. or larger. For containers of 187 ml. or less, type size would not be smaller than 1 mm.

    OTHER LABELING: Other AVAs, vineyard designations and/or appellations could also appear on the label (as long as the wine is qualified under TTB regulations).

    EFFECTIVE DATE: January 1, 2023

    Mendocino County has a long history of winemaking which dates back to the mid-1800s when the first Italian immigrants settled the green hillsides. Still today, the majority of the region’s 570 vineyards remain in the hands of family farmers, many of whom have lived for two or more generations on their land—some tracing their roots to the first settlers. The deeply rooted winegrowing community of farmers share a common passion for growing quality grapes, stewarding the land and producing outstanding wines.
    Although Mendocino is one of the largest wine-producing counties in California, the area planted with wine grapes (17,470 acres) represents only about 0.8% of the total County area. The diversity of the growing conditions leads to numerous winegrowing regions, each with a distinct personality, and twelve of these regions are approved American Viticultural Areas (AVAs). Mendocino includes the world renown Anderson Valley AVA and the geographically unique Mendocino Ridge AVA, the only non-contiguous AVA in America. Red grapes represent the majority of the Mendocino grape acreage, the most widely planted are Pinot Noir, Cabernet Sauvignon, Zinfandel, Merlot and Syrah but other common varietals are Petite Sirah, Carignane, Grenache, Sangiovese and Barbera. Chardonnay and Sauvignon Blanc are the most popular white grapes followed by Gewurztraminer, Viognier and Pinot Gris. This wide array of grapes favors the production of a broad range of wine styles, including sparkling wines of exceptional quality.

    ABOUT MENDOCINO WINEGROWERS

    Mendocino WineGrowers Inc (MWI) is an alliance of grape growers and vintners working together to promote the grapes and wines from Mendocino County.  The group was formed in 2012 to promote the quality and image of Mendocino County grapes and wine with three target audiences: 1) decision-makers who buy grapes, 2) press and trade groups who write about, sell, or recommend wine, and 3) consumers who buy wine.  MWI is run by the Executive Director, Bernadette Byrne, and a volunteer Board of Directors.

  • Lake County Wines Reach New a Pinnacle

    Lake County received the highest rating ever achieved by a wine from its region – receiving a 96 point rating for the 2016 Sol Rouge Petite Sirah from Wine Enthusiast Magazine.

    Lake County, a small wine growing region directly north of Napa, used to be part of Napa County and was said to have grown as many grapes as Napa in the 1900s. However, the 1920 Prohibition brought an end to Lake County wine production as vines were removed and planted with other crops.

    Lake County’s re-emergence in the wine industry began in the 1960s and grew from less than 100 acres in 1965 to nearly 10,000 acres today. Although large premium Napa Valley grape growers like Beringer and Beckstoffer Vineyards established themselves in the county, few wineries included “Lake County” on their labels, as most wine was often blended into that of Napa Valley and Sonoma wines.

    In 2007, a dozen wineries in Lake County including Sol Rouge Winery, established the Lake County Winery Association to promote awareness. At the time, Lake County wines were relatively unknown or reviewed by the top wine magazines with only a few wines receiving a 90+ point rating. Most of these wines were made by Napa winemakers like Thomas Rivers Brown, maker of the Schrader Cellars Double Diamond Cabernet Sauvignon from Beckstoffer’s Amber Knolls Vineyard.

    Today, the Lake County Winery Association has over three dozen vintners like Shannon Ridge, Gregory Graham, Brassfield, Hawk & Horse, and Obsidian Ridge, who commonly make wines in the 90-95 point range.  “We’ve seen a trend in higher ratings from all of our Lake County wineries and this rating is just another example of how wineries are producing world-class wines from Lake County,” said Helena Walsh, Director of Lake County Winery Association.

    The 2016 Sol Rouge Petite Sirah put Lake County in a completely different league, scoring a 96 point rating by one of the top wine review magazines – the highest in the county’s 50+ year history of winemaking. “I actually never checked on how rare that rating was. I tasted the Sol Rouge Petite Sirah blind of course, along with a few other Petites from Lake and two other appellations, so when I scored it I didn’t know the AVA. It’s a magnificent wine and a great example of how good the Lake County terroir can be,” said Jim Gordon, Contributing Editor, Wine Enthusiast Magazine.

    “When we planted the Sol Rouge Vineyard, we sought to grow the best possible grapes to make the finest wine we could,” said Bryan Kane, Co-Owner & Winemaker of Sol Rouge Vineyard & Winery. “When we came to Lake County, the highest rating from one of the Big 3 (Spectator, Enthusiast & Parker) was 92 points. So far, we’ve earned 90–94 points on 44 of our 51 Lake County wines, with the majority scoring 92-94 points.” Bryan attributes the higher scores amongst Lake County wines both improved winemaking and the excellent growing conditions.

    “Lake County produces some of the most distinct winegrapes in the world, and over the years, we’ve seen a steady increase in recognition of the region’s wines,” said Debra Sommerfield, President of the Lake County Winegrape Commission. “This impressive rating further substantiates Lake County’s position as a top-tier winegrowing region.”

    With all the recent devastation to the Napa and Sonoma wine growing regions caused by the Glass and LNU Lightning Complex fires, wineries have been looking to Lake County for grapes. Jim Smith of Case by Case Wine Brokers states, “We have been challenged as of late with the soaring demand of winegrapes from Lake County. I believe the work is out on what winemakers can expect from our wine growing region.”

    “We are honored and excited to have received such a high rating on our 2016 Petite Sirah and expect that Sol Rouge and others will continue to aspire to make highly rated world class wines,” stated Jill Brothers, Sol Rouge Co-Owner and Winegrower.

    ABOUT SOL ROUGE

    Sol Rouge is a family estate located in the Mayacamas Mountains at elevations averaging over 1800 feet. North of Napa in the foothills of a dormant volcano which formed the North Coast wine country in the Red Hills Appellation of Lake County, this land contains rich, red volcanic soil and, from this unique profile, Sol Rouge derived its name – translating to “Red Soil” in French. This 70 acre estate is planted with Syrah, Grenache, Mourvèdre, Cinsaut, Counoise, Zinfandel, Petite Syrah, Cabernet Sauvignon, and Cabernet Franc in a “high vine density” configuration allowing each vine to focus on fewer clusters of fruit, leading to greater complexity. Nestled between Mt. Konocti and Benson Ridge, this aggressive sight is all hillside with slopes up to 60% and is said to be the most aggressive and tightly planted vineyard in the Red Hills, with nearly 6000 vines per hectare in some blocks. For more information, see http://www.solrouge.com

    2016 Sol Rouge Petite Sirah Wine Enthusiast Magazine Review: https://www.winemag.com/buying-guide/sol-rouge-2016-petite-sirah-lake-county/

  • California Must Become a Fire-Adapted Civilization, UCCE Expert Says

    The vast California acreage burned in 2020 and the protracted smoky skies should signal state residents and officials to adapt to a new reality, reported Ezra David Romero on Capital Public Radio. The 4 million acres of wildland burned this year isn’t unprecedented.

    Before 1800, 4.5 million or more burned every year in California, according to a UC Berkeley study.

    Tragic as they are, parts of the 2020 fires will bring some areas back to natural equilibrium. “Some areas are going to be hit really hard . . . and will have trouble recovering,” said Michael Jones, UCCE forestry advisor in Lake County. “But other areas will look phenomenal. They’ll look fantastic and they’ll do exactly what we want these systems to do.”

    However, the burns are unprecedented in California’s modern, highly populated times.

    “I don’t think that we can have another season like this without something fundamentally shifting,” he said “This is another indication of how we need to think differently about how we approach managing fire, and how we need to become more of a fire-adapted civilization.”

    It may be “a tough pill to swallow,” but Jones told Romero that smoky skies could become a year-long reality because of prescribed burns in cooler months and a prolonged wildfire season in the warmer months.

    “People are exhausted,” Jones said, “they’re scared and don’t understand this fundamental shift and change.”

    Jones says the current fire season should also force people to rethink where communities should be built. — By Jeannette Warnert, UC Cooperative Extension Communications Specialist

    UCCE forestry advisor Michael Jones.

  • California Agriculture Leads The Nation In Funding For Specialty Crops

    The California Department of Food and Agriculture (CDFA) recently announced that California has received $23.8 million out of approximately $72.4 million awarded by the U.S. Department of Agriculture nationwide for the 2020 Specialty Crop Block Grant Program (SCBGP).
     
    The SCBGP provides grants to state departments of agriculture to fund projects that enhance the competitiveness of specialty crops, defined as fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).
     
    With the $23.8 million, CDFA will fund 58 projects, awarding grants ranging from $50,000 to $450,000 to non-profit and for-profit organizations, government entities, and colleges and universities. Selected through a competitive process, these projects focus on increasing sales of specialty crops by leveraging the unique qualities of specialty crops grown in California; increasing consumption by expanding the specialty crop consumer market, improving availability of specialty crops and providing nutritional education for consumers; training growers to equip them for current and future challenges; investing in training for growers/producers/operators to address current and future challenges; and conducting research on conservation and environmental outcomes, pest control and disease, and organic and sustainable production practices.
     
    Additionally, CDFA made awards to first-time recipients through the “Additional Assistance for Historically Underrepresented Organizations” program. This program was developed for organizations that support beginning and socially disadvantaged farmers, including urban farmers, and/or promote increased access or nutrition education in underserved communities throughout California.
     
    CDFA continued its partnership with the Center for Produce Safety in the evaluation and recommendation of food safety-related projects. These projects represent an ongoing effort by the state to address food safety practices and minimize outbreaks of foodborne illness with proactive research.
     
    The 2020 SCBGP project abstracts are available online at https://www.cdfa.ca.gov/Specialty_Crop_Competitiveness_Grants/

  • Researchers Continue Grapevine Red Blotch Vector Search

    Entomologists have a unique toolbox of gadgets designed to trap and collect otherwise hard to nab insects.  Beating, sweeping, sucking, and carefully brushing, these scientists have no lack of creativity when it comes to collecting what most people can’t even see.  Yet these collections are critical keys to unravel the mystery of crop-threatening disease, where insects often play the role of “vectoring”, or spreading, the pathogen.   Enter the “D-Vac”, a modified leafblower designed to suck up insects from otherwise hard to get to places-like grapevine canopies!  Recently I joined Kelsey McCalla, Post-doctoral researcher, and Kristen Flores, Lab manager and Junior Specialist, both hailing from UC Specialist Kent Daane’s lab in Berkeley, on the hunt in the foothills for clues to the insect vectors responsible for transmitting Grapevine red blotch associated virus (GRBaV).  I’m so happy to have engaged the Daane lab to include our foothill region in the nationwide collaborative research to understand the spread of this disease.  The research is critical to managing it.

    Red blotch symptoms in Zinfandel

    GRBaV, or simply “red blotch”, the DNA virus identified in 2011 causing disease in grapes that was a mystery for so long, continues to vex the research community.  While tremendous progress has been made on understanding the effect of the disease on delaying grape berry ripening and physiology, we still have not confirmed a vector or vectors, as it may be, responsible for the spread of this disease evident in so many of our vineyards. Awhile back you may remember my post about the exciting discovery by Bahder, Zalom and Sudarshana that the three-cornered alfalfa treehopper was a red blotch vector.  Oddly enough, that greenhouse study has not yet been replicated by other researchers seeking to duplicate, and confirm, the treehopper as a red blotch vector.

    Red Blotch Symptoms in Vermentino, a White Grape Variety

    The Daane lab joins Houston Wilson and other researchers on a nationwide search to confirm the three cornered alfalfa treehopper as a red blotch vector and/or identify other insects that are spreading the disease.  Part of that work includes sampling for suspect insects using the D-vac and yellow sticky traps in vineyards where red blotch spread is evident.  The trap count information is used to understand the life cycles of these potential vectors.  Wilson, who was one of several speakers covering red blotch research progress during my 2020 Foothill Grape Day, recently published a newsletter on his work of the seasonal ecology of the treehopper in North Coast vineyards.  Our foothill monitoring will help us understand if the insect’s life cycle is similar here as compared to what is known to occur in the cooler N. Coast.

    Kristen Flores takes down yellow sticky traps

    And no, those vineyard fall colors are not a good thing!  This is the time of the year when GRBaV symptoms become evident in red varieties in the vineyard-the characteristic red “blotches” on the leaves for which the disease is named begin to show in summer and become more visible as harvest nears and the season progresses. (Note: the disease affects both white and red varieties. In whites, the “blotches” are yellow and more difficult to see).  While diseased vineyards turn red, healthy vines remain green, then gold, in fall.

     

     

    The D-vac Bug Vac, a wonderful sampling tool.
    I spy with my little eye…a three cornered alfalfa treehopper sucked up by the D-vac!
    Lynn Wunderlich, UC Cooperative Extension Farm Advisor

    Thanks to the hard work of those like McCalla and Flores, even during this time of the pandemic (and wearing masks while working outdoors in summer heat is not fun, let me tell you), we will get closer to solving the red blotch mystery. — By Lynn Wunderlich, UC Cooperative Extension Farm Advisor

  • New California Mandarin Objective Measurement Survey

    USDA’s National Agricultural Statistics Service, Pacific Regional Field Office conducted the Mandarin Objective Measurement Survey for the first time this year. A sample of 271 Tango, W. Murcott Afourer, and White Murcott Mandarin varieties were randomly selected proportional to county and variety bearing acreage. Initial results show an average fruit set of 945 fruit per tree and an average fruit size of 1.49 inches in diameter for these varieties. Because this is a new survey, a production forecast will be not be made for at least three years.

    Fruit counts were made from two trees per orchard, and fruit diameter measurements were taken on the right quadrant of four trees surrounding the two sampled trees.

    California Mandarin Objective Measurement Survey Results, October 1, 2020
    County Number of samples Average set per tree Average diameter (inches)
    Fresno 31 1,378 1.57
    Kern 66 1,005 1.52
    Madera 34 694 1.34
    Tulare 132 912 1.48
    Other1 8 367 1.57
    State Survey Avg. 271 945 1.49

    1Other includes Imperial, Riverside, and Ventura counties.

    This and all NASS Pacific Regional reports are available at www.nass.usda.gov/ca. For more information, contact the NASS Pacific Regional Field Office at 1-800-851-1127.

  • Dairy Margin Coverage Program Enrollment Now Open for 2021

    The U.S. Department of Agriculture (USDA) has begun accepting applications for the Dairy Margin Coverage (DMC) program as of Tuesday, October 13, 2020 for 2021 enrollment.

    “This year has been a market roller coaster for the dairy industry, and the Dairy Margin Coverage program is a valuable tool dairy producers can use to manage risk,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, during a roundtable at a dairy in Chippewa Falls, Wisconsin. “We were excited to roll out this new and improved program through the 2018 Farm Bill, and if you haven’t enrolled in previous years, we highly encourage you to check it out.”

    Signup runs through Dec. 11, 2020. DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. DMC payments triggered for seven months in 2019 and three months so far in 2020.  More than 23,000 operations enrolled in DMC in 2019, and more than 13,000 in 2020.

    Updated Dairy Decision Tool

    To determine the appropriate level of coverage for a specific dairy operation, producers can utilize the recently updated online dairy decision tool. The decision tool is designed to assist producers with calculating total premium costs and administrative fees associated with participation in DMC. An informational video is available, too.

    Improvements to the decision tool, made in cooperation with representatives from the University of Minnesota and University of Wisconsin, include historical analysis that illustrates what DMC indemnity payments might have been had the program been available over the previous two decades.  The analysis indicates that over the course of time, DMC payments made to producers exceed premiums paid. These decision tool enhancements provide a more comprehensive decision support experience for producers considering DMC.

    Additional Support for Dairy Producers 

    In addition to DMC, USDA offers a variety of programs that have helped dairy producers, including insurance, disaster assistance, and conservation programs. Most recently, the Coronavirus Food Assistance Program 1 provided $1.75 billion in direct relief to dairy producers who faced price declines and additional marketing costs due to COVID-19 in early 2020. Now, signup is underway for the Coronavirus Food Assistance Program 2, which provides another round of assistance for dairy producers and many other eligible producers.

    More Information 

    For more information, visit farmers.gov DMC webpage, or contact your local USDA Service Center. To locate your local FSA office, visit farmers.gov/service-center-locator.

    All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel, and visitors must adhere to social distancing guidelines. Visitors are required to wear a face covering during their appointment. Field work will continue with appropriate social distancing. Our program delivery staff will be in the office, and they will be working with our producers in office, by phone, and using online tools. More information can be found at farmers.gov/coronavirus.

  • Five Steps for Ag Processors to Adapt their COVID-19 Incident Response Approach

    COVID-19 is a health crisis in the United States but major industries, like agriculture, chemical manufacturing, oil and gas exploration and production, all need to keep functioning as essential businesses in the midst of the crisis.  The response to COVID-19 has core parallels to major industrial accident response, which involves deploying the right resources for the task.  Every incident, be it a fire, explosion, or a government inspection and citation for regulatory compliance failures involves four key elements of response:  (1) the immediate response; (2) the extended response; (3) compliance and prevention; and (4) preparedness/lessons learned to improve.  This lifecycle of an incident applies equally to a COVID-19 contact among your employees or customers.  Make no mistake.  The stakes are high.  Recently, Cal/OSHA issued COVID-19 related citations to two companies of over $200,000 each, one to a frozen food manufacturer and the other to a temporary employment agency.  New legislation that becomes effective next year gives Cal/OSHA expanded authority to issue Orders Prohibiting Use for workplaces that pose risk of an “imminent hazard” relating to COVID-19.  In other words, they can shut your plant down if you don’t have the right procedures in place to respond to a COVID-19 incident.

    Processing plant managers are accustomed to incidents, such as injuries, agency inspections, or citations (hopefully not too frequently with respect to citations); applying the process in the context of COVID-19 can work extremely well, even where handling these situations requires adjustment for the particular crisis at hand.  In every crisis, the approach needs to be tailored, and COVID-19 incidents are no different.

    Examples of how a COVID-19 response needs to be tailored include determining work-relatedness to a positive test to COVID-19, identifying close contacts, identifying the agencies to whom notifications must be provided, and contact tracing for potentially exposed employees, testing, and implementing isolation protocols.  In the context of COVID-19, agriculture companies need to be keenly aware of increased Cal/OSHA oversight, as the agency has identified agricultural processing as a priority for enforcement because agricultural processing facility workers have been disproportionately impacted.

    When confronting a COVID-19 incident, follow these useful tips to help minimize liability and potential for citation by the government.

    1. Familiarize yourself with the Extensive Government Guidance Issued, Especially that Tailored to Your Industry

    There’s a saying in incident response:  your greatest exposure is not the incident itself but whether you follow the regulations for reporting and responding to the incident.  That’s true for a major chemical release from your operations and a COVID-19 incident, alike.  When the crisis emerged, several federal and state agencies provided guidance documents to companies on how to address potential cases of COVID-19.  Like the crisis, the guidance is evolving.  The government continues to update its approach and has even offered tailored to specific industries.  Following the agency guidance will put a facility in a much stronger compliance position when faced with a compliance inspection or determination of work-relatedness.

    Some key recent government guidance specific to the agricultural processing industry is listed below:

    • September 18, 2020, California Department of Public Health (CDPH) updated Guidelines intended for use by employers experiencing an outbreak of COVID-19 in their workplace.  It emphasizes that employers should be proactive and keep in mind that identification of even a single positive case among employees may quickly develop into an outbreak.
    • July 29, 2020, California COVID-19 Guidance for the agriculture and livestock industry to support a safe, clean environment for workers.  Recommendations include that an employer investigate any COVID-19 illness and determine if any work-related factors could have contributed to risk of infection;    identify close contacts (within six feet for fifteen minutes or more) of an infected worker and take steps to isolate COVID-19 positive worker(s) and close contacts; implement the necessary processes and protocols when a workplace has an outbreak, in accordance with the CDPH guidelines.
    • July 21, 2020, Cal/OSHA updated Guidance for the agriculture industry.  This provides:
    • COVID-19 Daily Checklist for Agricultural Employers
    • COVID-19 General Checklist for Agricultural Employers
    • Infection Prevention for Agricultural Employees and Employers
    1. Make Required Government Notifications

    Understand requirements for reporting employee cases to Cal/OSHA.  Any serious injury, illness, or death occurring in any place of employment or in connection with any employment must be reported by the employer to the local Cal/OSHA district office immediately.  For COVID-19, this includes inpatient hospitalizations and deaths among employees.

    On September 17, 2020, Governor Newsom also signed into law AB 685 which enhances reporting requirements to local health authorities in the event of a COVID-19 outbreak in the worksite.  The law takes effect on January 1, 2021.

    Employers should also check local guidance to determine if there are other investigation, reporting, or recording obligations triggered by a positive COVID-19 case.

    Finally, recognize that if an employee is out with COVID-19 or quarantined, other government obligations, like environmental reporting may fall by the wayside in their absence.  Develop a plan to ensure your ongoing government reporting obligations are being met, even those not COVID-19-related.  Having an employee out due to COVID-19 is likely not going to serve as an acceptable excuse for environmental noncompliance.

    1. Do the Investigation

    To comply with Cal/OSHA requirements, plant managers should ensure their companies are investigating positive COVID-19 determinations in a timely manner to identify any work-related factors and to identify close contacts.  This will protect employees, comply with Cal/OSHA requirements, and provide information that may be needed to in regards to the “disputable presumption” that exists in California for an employee who suffers illness or death resulting from COVID-19 on or after July 6, 2020 through January 1, 2023.

    COVID-19 related citations recently issued by Cal/OSHA included a failure to investigate about 20 COVID-19 illnesses and one death for a food manufacturer. Cal/OSHA’s news release highlighted that Cal/OSHA created guidance for many industries in multiple languages including videos, daily checklists and detailed guidelines on how to protect workers from the virus. This guidance is meant to provide a roadmap for employers on their existing obligations to protect workers from COVID-19.  If you don’t conduct required investigations, you will be placing your company at risk of being shut down through Cal/OSHA’s expanded authority to issue Orders Prohibiting Use for workplaces that pose a risks of an “imminent hazard” relating to COVID-19.

    1. Meet Requirements for Identifying and Notifying Potentially Affected Employees

    As part of the investigation, additional employee cases and close contacts (within six feet for fifteen minutes or more) should be identified in accordance with the regulations and guidance.  The facility will then need to conduct testing or alternative methods (e.g., contact tracing or quarantining) in consultation with the local health department to control the outbreak.

    All potentially exposed employees must be notified and employers must meet obligations regarding confidentiality of employees with suspected or confirmed COVID-19 infection as required by the Americans with Disabilities Act (“ADA”) and Health Insurance Portability and Accountability Act (“HIPAA”).

    1. Review and Update the Facility COVID-19 Plan to Apply Lessons Learned and Improve

    In the July 29, 2020 COVID-19 Guidance for agriculture and livestock, the state of California  recommended that each facility establish a written, workplace-specific COVID-19 prevention plan, perform a comprehensive risk assessment of all work areas and work tasks, and designate a person at each facility to implement the plan. The plan should include sanitation practices, physical distancing, individual control measures, screening, and other incidental practices to prevent the spread amongst workers. Upon completion of the incident investigation, the facility should update the plan as needed to prevent further cases.

    Conclusion

    COVID-19 presents unique challenges to processing plant managers responding to incidents because of the difficulty in determining the source of infection, agency notification and attention, contact tracing, employee notification, testing, control measures, and return to work. Like any incident, COVID-19 incident response should focus on:  (1) the immediate response by making required agency notifications and dealing with the immediate employee concerns including contact tracing; (2) the extended response by conducting an incident investigation; (3) compliance and prevention by conducting testing or implement isolation protocols; and (4) preparedness/lessons learned to improve by reviewing and updating the facility COVID-19 plan. Processing plant managers who work quickly and diligently to respond to a COVID-19 incident will reap the benefit of minimizing regulatory scrutiny protecting employees and comply with legal reporting and notification requirements. They should also regularly check local, state, and federal guidance to determine if there are new or revised investigation, reporting, or recording obligations triggered by a positive COVID-19.   – By Daniel J. Grucza & Shannon S. Broome

    Dan Grucza is Counsel with Hunton Andrews Kurth LLP. He regularly advises companies on health and safety issues and has been a speaker and author on COVID-19 response issues and is a lead member of the firm’s incident response practice.

    Shannon S. Broome is the Managing Partner of Hunton Andrews Kurth’s San Francisco office and leads its environmental practice in California.  She routinely advises clients on Cal/OSHA compliance issues and on major accident and other incident response for industrial facilities.

  • Looking To 2021, All Dairy Farmers Should Sign Up for DMC, NMPF Says

    With the ongoing COVID-19 crisis teaching hard lessons on risk management throughout agriculture, and with dairy margins expected to be volatile over the next year, the National Milk Producers Federation is urging farmers to sign up for maximum 2021 coverage under the U.S. Department of Agriculture’s Dairy Margin Coverage program. DMC signup begins today.

    “The DMC emphatically proved its worth this year, as payouts rapidly reacted to unprecedented price plunges and protected farmers exactly when they most needed help,” said Jim Mulhern, president and CEO of NMPF. “Coronavirus-related volatility in dairy markets is expected to continue well into 2021, with DMC payments a possibility. That makes it essential that farmers include DMC coverage in the robust risk-management plans they will need to ensure financial stability.”

    DMC, the main risk-protection tool for dairy farmers enacted in the 2018 Farm Bill, is designed to promote stable revenues and protect against financial catastrophe on some or all of a farmer’s milk. Despite forecasts in late 2019 predicting that DMC assistance wouldn’t be needed by farmers in 2020, margins instead fell to their lowest levels in more than a decade in the first half of this year, triggering payments that undoubtedly kept many participating dairies afloat. And unlike difficult-to-predict federal disaster assistance that’s provided via specific legislation or administrative action, DMC coverage offers certainty in times of need, allowing for better financial planning and faster payment when necessary.

    DMC also offers:

    • Affordable higher coverage levels that permit all dairy producers to insure margins up to $9.50/cwt. on their Tier 1 (first five million pounds) production history. Recent margin trends in reference to that $9.50 threshold is included in the graphic below.
    • Affordable $5.00 coverage that offers meaningful catastrophic coverage for farms of all sizes.

    NMPF has a resource page on its website with more information about the DMC. 

  • U.S. Dairy Exports Show Sustained Growth to Top Global Markets

    Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association, issued the following statement today on the August 2020 agricultural export data released by the USDA Foreign Agricultural Service’s Global Agricultural Trade System:

    “U.S. dairy exports are posting positive gains in value and volume to markets around the world and are keeping pace with other animal product exports. U.S. dairy exports are up in 8 of our top 10 export markets by both value and volume over the same period in 2019. In August, U.S. dairy exports resumed their strong pace from earlier this year, increasing 14% by value since January over the same period last year. This sustained growth puts U.S. dairy exports this year more than $600 million ahead of the same period last year, with primary gains by value appearing in China, Canada, Vietnam, and Australia.

    “Meanwhile, volume is 12% higher over the same period last year with four of the top five markets showing growth over 2019, led by increased sales to China, Canada, Australia, and New Zealand.

    “IDFA and its members continue to see the value of new trade agreements. In markets where an agreement was recently completed, U.S. dairy exports have generally increased over the same period in 2019. For instance, exports of milk powder, whey, and natural milk proteins to China have all increased in August, pointing to accelerating purchases of U.S. agricultural goods by China under the Phase One trade agreement. Overall, U.S. dairy exports to China by volume have already exceeded the entirety of our dairy exports to China in 2019, while the value of U.S. dairy exports to China should soon surpass 2019 levels.

    “Similar to the growth we saw earlier in the summer, we also continue to see sustained expansion of U.S. dairy exports to Southeast Asia. While milk powders, lactose, and whey maintain their strong presence, cheeses are showing marked growth to Southeast Asia in the August data, in some cases growing twice as much or more as previous months.

    “Year to date, we are on track to break $6 billion in U.S. dairy exports this year. Volatility and uncertainty remain a factor in the dairy market and trade, but IDFA remains optimistic that with continued demand for dairy around the world, especially in Southeast Asia and China, this year will end on a high note. It’s an exciting time to be part of the U.S. dairy industry and IDFA and its members stand at the ready to take advantage of these global opportunities.”

    The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industry, which supports more than 3 million jobs that generate $159 billion in wages and $620 billion in overall economic impact. IDFA’s diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent 90 percent of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients produced and marketed in the United States and sold throughout the world. Delicious, safe and nutritious, dairy foods offer unparalleled health and consumer benefits to people of all ages.