California Ag Network

Category: Ag Economics

  • Coronavirus Food Assistance Program Round II Begins Sept. 21 (What’s Included)

    President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue today announced up to an additional $14 billion for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Signup for the Coronavirus Food Assistance Program (CFAP 2) will begin September 21 and run through December 11, 2020.

    “America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic. President Trump is once again demonstrating his commitment to ensure America’s farmers and ranchers remain in business to produce the food, fuel, and fiber America needs to thrive,” said Secretary Perdue. “We listened to feedback received from farmers, ranchers and agricultural organizations about the impact of the pandemic on our nations’ farms and ranches, and we developed a program to better meet the needs of those impacted.”

    Background:

    The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers.

    Producers can apply for CFAP 2 at USDA’s Farm Service Agency (FSA) county offices. This program provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. Producers will be compensated for ongoing market disruptions and assisted with the associated marketing costs.

    CFAP 2 payments will be made for three categories of commodities – Price Trigger Commodities, Flat-rate Crops and Sales Commodities.

    Price Trigger Commodities

    Price trigger commodities are major commodities that meet a minimum 5-percent price decline over a specified period of time. Eligible price trigger crops include barley, corn, sorghum, soybeans, sunflowers, upland cotton, and all classes of wheat. Payments will be based on 2020 planted acres of the crop, excluding prevented planting and experimental acres. Payments for price trigger crops will be the greater of: 1) the eligible acres multiplied by a payment rate of $15 per acre; or 2) the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History (APH) approved yield. If the APH is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option (ARC-CO) benchmark yield for that crop will be used.

    For broilers and eggs, payments will be based on 75 percent of the producers’ 2019 production.

    Dairy (cow’s milk) payments will be based on actual milk production from April 1 to Aug. 31, 2020. The milk production for Sept. 1, 2020, to Dec. 31, 2020, will be estimated by FSA.

    Eligible beef cattle, hogs and pigs, and lambs and sheep payments will be based on the maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the producer, between Apr. 16, 2020, and Aug. 31, 2020.

    Flat-rate Crops

    Crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others.

    Sales Commodities

    Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur, or feathers. Payment calculations will use a sales-based approach, where producers are paid based on five payment gradations associated with their 2019 sales.

    Additional commodities are eligible in CFAP 2 that weren’t eligible in the first iteration of the program. If your agricultural operation has been impacted by the pandemic since April 2020, we encourage you to apply for CFAP 2. A complete list of eligible commodities, payment rates and calculations can be found on farmers.gov/cfap.

    Eligibility

    There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies, limited partnerships may qualify for additional payment limits when members actively provide personal labor or personal management for the farming operation. In addition, this special payment limitation provision has been expanded to include trusts and estates for both CFAP 1 and 2.

    Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

    Applying for Assistance

    Producers can apply for assistance beginning Sept. 21, 2020. Applications will be accepted through Dec. 11, 2020.

    Additional information and application forms can be found at farmers.gov/cfap. Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the forms need to be updated.

    Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. This is a recommended first step before a producer engages with the team at the FSA county office.

    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 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 also required to wear a face covering during their appointment. Our program delivery staff will be in the office, and they will be working with our producers in the office, by phone and using online tools. More information can be found at farmers.gov/coronavirus.  

  • What to Expect from the 2020 California Wine Crop

    Wildfires and smoke exposure aside, what is the 2020 wine grape crop looking like.  Jeff Bitter from Allied Grape Growers reports that the crop could be much smaller than expected with supply and demand returning to a more balanced state.  Watch his brief interview now and be sure to attend Jeff Bitter’s State of the wine grape industry address at American Vineyard’s virtual Central Coast Grape Grape Expo on Nov. 6th and the Central Valley Grape, Nut & Tree Fruit Expo on Nov. 13.
     
    Please thank this video’s sponsor Suterra for their industry support.

  • USDA Announces Contracts for Round 3 of the Farmers to Families Food Box Program

    Following President Donald Trump’s approval to include up to an additional $1 billion in the Farmers to Families Food Box Program, U.S. Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture (USDA) has approved up to $1 billion in contracts to support American producers and communities in need through the USDA Farmers to Families Food Box Program. Earlier this week, USDA reached a milestone of having distributed more than 90 million food boxes in support of American farmers and families affected by the COVID-19 pandemic.

    “These contract awards will go to vendors who submitted the strongest proposals in support of American agriculture and the American people. The high level of interest and quality of proposals are a testament that the program is accomplishing what we intended – supporting U.S. farmers and distributors and getting food to those who need it most. It’s a real trifecta, which is why we call it a win-win-win,” said Secretary Perdue. “Thanks to President Trump and his commitment to the program with the announcement of an additional $1 billion in funding, more farmers will be supported, and more families will receive the nutritious food they need during these difficult times.”

    The International Dairy Foods Association (IDFA) has worked closely with USDA to ensure dairy remains a key part of the Farmers to Families Food Box program so that dairy companies can deliver nutritious dairy products to food insecure Americans via non-profits, food banks, and faith and community organizations. To date, USDA has purchased more than $400 million in dairy products since mid-May, including fresh fluid milk, various cheeses, yogurt, sour cream and more. IDFA engaged directly with USDA during Round 2 of the program to make changes to the program, including expanding the requested products to include hard, semi-firm or semi-soft cheeses.

    “With over 90 million Farmers to Families food boxes delivered, we continue to leverage and support our great American farmers and food distributors to feed those most vulnerable. Thanks to the President’s commitment of $1 billion in additional funding, I’m proud to see that we are well on our way to the third round of USDA Farmers to Families food box program purchases which focus on boxes containing fresh and nutritious fruit, vegetables, meat and dairy,” said Advisor to the President Ivanka Trump.

    These contract awards are a result of the third round of Farmers to Families Food Box program announced on July 24, 2020, and President Trump’s announcement on August 24 that up to an additional $1 billion was being made available for deliveries through October 31, 2020. A full list of approved suppliers is available on the Farmers to Families Food Box Program webpage.

    Background:

    In this third round of purchases, USDA announced plans to purchase combination boxes to ensure all recipient organizations have access to fresh produce, dairy products, fluid milk and meat products. These boxes will be distributed to every county in America.

    USDA solicited new proposals for the third round. Proposals were required to illustrate how coverage would be provided to areas identified as opportunity zones, detail subcontracting agreements, and address the “last mile” delivery of product into the hands of the food insecure population.

    Entities who met the government’s requirements and specifications were issued agreements and submitted pricing through a competitive acquisition process. Agreements were awarded based on the pricing submitted for the delivery locations proposed, box content, last mile delivery plans, means testing compliance, and support of small and local/regional food systems.

    In the ongoing second round of purchasing and distribution, which began July 1 and will conclude Sep. 18, 2020, USDA has purchased more than $1.113 billion of food through extended contracts of select vendors from the first round of the program as well as new contracts focused on Opportunity Zones in order to direct food to reach underserved areas, places where either no boxes have yet been delivered, or where boxes are being delivered but where there is additional need.

    The first round of purchases occurred from May 15 through June 30, 2020 and saw more than 35.5 million boxes delivered in the first 45 days.

    Updates to the number of food boxes verified as delivered will continue to be displayed on the USDA’s Agricultural Marketing Service (AMS) website, with breakdowns by performance period on the Farmers to Families Food Box Program page.

  • American Pistachio Growers Employs Robust Campaign to Meet Record Harvest

    With the high likelihood that U.S. pistachio growers will shake a record crop from their trees this fall, American Pistachio Growers (APG) is pulling out all of the stops to keep its wave of marketing success rolling in 2021 and well beyond.  APG’s marketing team has just put the final touches on a new advertising campaign that combines extensive television advertising in major markets across the U.S. as well as additional print and digital media advertising in all key export markets.

    APG’s strategy is to keep consumer demand running strong ahead of what appears to be a large 2020 crop. According to APG President Richard Matoian the U.S. pistachio crop that growers are currently harvesting could hit the 1-billion pound mark — setting a new production record.

    “We are investing in our biggest advertising and marketing campaign ever to capitalize on this expansion in U.S. pistachio production,” said Judy Hirigoyen, APG Vice President, Global Marketing. “We have great synergy from all of the work we have done in recent years collaborating with great partners in professional sports, the research community, and with some of the world’s leading nutritionists and researchers.”

    For the first time ever APG is employing an advertising and marketing push that combines television, print and digital advertising in major export countries as well as in major television markets in the U.S. Beginning in mid-November and continuing through next summer, ads extolling the virtues of U.S. pistachios will appear in 44 U.S. television markets — from Honolulu to Washington, D.C.  Included in the U.S. advertising effort is APG’s sponsorship of New Year’s Eve countdown celebrations in Las Vegas, Nevada and Dallas, Texas — covering 26 key television markets.

    “Consumers here in the U.S. as well as abroad are embracing the powerful stories of pistachios — that they are packed with important nutrients and have been recognized as being a “complete” protein source, putting pistachios in the company of other plant-based complete proteins, such as quinoa and soy,” Hirigoyen said. “We think these stories will really resonate with TV viewers across the nation.”

    As a California commodity, pistachios have been on a tear in recent years and now occupy sixth place on the state’s list of more than 350 commodities with a value of $1.94 billion, according to California Department of Food and Agriculture 2019 data. Pistachios rank as the state’s second leading export with a value of $1.1 billion. As interest in pistachios has grown in California as well as in Arizona and New Mexico, so has the need to market larger crops.

    “On top of the expected record harvest this year, with the expansion of new acreage comes into bearing, we know that will present greater marketing challenges in the years ahead,” said Alison Nagatani, Chair of the APG Marketing Committee and a pistachio grower from Earlimart. “The Rabobank report projects bearing acreage could reach 372,000 acres by 2024/25 — about 30 percent greater than in 2019/20. Clearly, we have our marching orders to keep blazing the marketing trail, both here at home and in our key international markets.”

    U.S. growers are keenly aware that their success depends on keeping export channels open in major countries around the world. Prior to the COVID-19 pandemic, pistachio exports were running strong. In the 2018/19 marketing year, U.S. pistachio shipments set a record in spite of stiff retaliatory tariffs imposed by China, according to the Rabobank report.

    Even with the effects of the pandemic and ongoing trade tensions with China, Rabobank analysts state that market demand for pistachios remains strong in both domestic and international markets.  Although total demand could be affected by a global economic downturn due to the COVID-19 pandemic, they state that the demand outlook is still “favorable” and is set to keep pace with the anticipated expansion in U.S. pistachio production in the years ahead, citing the nutrition research and promotional efforts as contributing factors to their prediction.

    There is also heartening news contained in the pages of APG’s April 2020 consumption/share of market report. The report’s data found that total consumption and market share from 2016-2019 are on an upward trajectory in several key markets. In China, for example, total consumption is up 573 percent and market share has surged to 57.5 percent. In Germany the report found total consumption had risen 288.5 percent and market share was 65.7 percent. In India, total consumption and market share were up 74.3 percent and 58.6 percent respectively.

    “Marketing ahead of production and capitalizing on the contributions of our industry partners and the incredible array of research that touts the unique and powerful health attributes of pistachios will all play a role in continuing our marketing success,” Nagatani said.

    For more information, read the September issue of Pacific Nut Producer Magazine featuring the current state of the pistachio industry and the continued efforts of APG to promote pistachios globally.

    APG is a non-profit trade association representing more than 800 growers and member processors in California, Arizona, and New Mexico.

  • Almond Alliance of California Strongly Opposes Proposition 15 – “Split Roll” Proposal

    The Almond Alliance of California strongly opposes the Proposition 15 “split roll” proposal on the November 3, 2020 ballot. California Proposition 15 is the Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative. We believe a split roll proposal will hurt the business community as well as employees and consumers, thereby having a negative impact on our entire economy.

    • A “yes” vote supports this constitutional amendment to require commercial and industrial properties to be taxed based on their market value, rather than their purchase price.
    • A “no” vote opposes this constitutional amendment, thus continuing to tax commercial and industrial properties based on a property’s purchase price, with annual increases equal to the rate of inflation or 2 percent, whichever is lower.

    “Split Roll” Will Hurt California’s Economy

    An almost $11 billion split roll tax increase will prevent businesses from hiring new employees and, potentially, from keeping existing ones. The stability and predictability brought by Proposition 13 has allowed California businesses to compete nationally despite the high cost of doing business in this state.

    What Is “Split Roll”?

    A tax roll is the official list of all the properties to be taxed. “Split roll” means applying a different tax formula, either tax rate, reassessment frequency, or vote requirement, to commercial and industrial properties than that applied to residential properties. Proponents of a split roll would remove some of the protections of Proposition 13 (from 1978) from nonresidential properties in order to raise taxes.

    How Will This Impact California Agriculture?

    Although the revised initiative includes a small business and agricultural land exemption, the “split roll” still would be crippling to a significant portion of businesses. The agricultural exemption language only applies to the “land.”  The current tax law defines “real property” as land, improvements, and fixtures, which for farmers means that real agricultural property is defined as not only the land, but also fixtures such as irrigation systems, and improvements — barns, processing facilities, nut and fruit trees and vineyards once they reach maturity.

    Under the California Constitution, vineyards are only exempt for the first three years after the season in which they are planted, and orchards are only exempt for the first four years after the season they are planted.  Other improvements would be subject to reassessment and would also require all food and agricultural processing facilities to be reassessed at their highest and best use.

    The initiative would not require row crops, such vegetables and cotton, to be reassessed, as those are exempt under the California Constitution, but they will face higher property taxes when the crops go to packing facilities and processing areas.

    Call To Action

    Proposition 15 would expose California’s farmers and ranchers to steep property tax hikes on “all fixtures and improvements.” You would face tax increases on a wide range of farm and ranch property.

    We ask you to:

    1. Vote No on Proposition 15;
    2. Please consider supporting our efforts financially with a donation to the fund to fight back against this initiative.

    For more information on how you can help, please contact the Almond Alliance at (209) 300-7140 or email staff@almondalliance.org.

  • San Francisco 49ers Announce Partnership With Clover Sonoma

    The San Francisco 49ers and Clover Sonoma, a third-generation family-owned and operated dairy, today announced an exclusive partnership to bring together the two beloved Bay Area brands. As part of the partnership, Clover Sonoma will become the “Preferred Milk of the San Francisco 49ers,” which will include packaging, promotions, a holiday eggnog sweepstakes, advertising, and in-stadium and digital media.

    PARTNERSHIP LAUNCH MASCOT VIDEO

    “We always appreciate the opportunity to partner with a local, family-owned brand that carries strong name recognition among the Faithful so we couldn’t be happier to welcome Clover Sonoma to our team,” said Kevin Hilton, 49ers Vice President of Corporate Partnerships. “For generations, they’ve been a high-standing and charitable brand and we look forward to working with them to find innovative ways to entertain and benefit our fans.”

    Key assets of the campaign include Clover Sonoma’s inclusion in the 49ers Safeway Shopper program, where they will be releasing a 49ers-branded holiday organic eggnog with in-store marketing through the end of the year. Additionally, the 49ers Facebook channel will conduct a fan caption contest where winners will see their caption featured on a co-branded billboard and receive two club seats to one future 49ers home game.

    Clover Sonoma will also become the entitlement partner of Los 49ers, the team’s official Spanish Radio Channel where games are broadcast via web stream. Cal-Hi Sports Report, the largest high school sports show in California and a 49ers enterprise, will feature a Clover Sonoma branded event titled “Milk & Cookies with the Rookies.”

    “As a 49ers fan, I have always admired the organization’s focus on authenticity, philanthropy, diversity and community,” said Kristel Corson, Clover Sonoma Vice President of Sales & Marketing. “Aligning with the 49ers allows us the opportunity to make a bigger impact in the Bay Area and we’re excited to bring Sourdough Sam and Clo the Cow together for some laughable moments that will inevitably bring cheer to our dedicated fans.”

    About The San Francisco 49ers:

    The San Francisco 49ers, owned by Denise and John York, currently play in the NFC West division and have won five Super Bowl trophies including Super Bowl XVI, XIX, XXIII, XXIV and XXIX. The franchise also has seven conference championships and 20 divisional championships and was the first major league professional sports team to be based in San Francisco more than 70 years ago. Please visit www.49ers.com and follow the 49ers on Facebook and Twitter @49ers.

    About Clover Sonoma:

    Third-generation family owned and operated, Clover Sonoma is recognized as a leader at the forefront of the dairy industry. The Petaluma-based company in Northern California’s beautiful Sonoma County was the first dairy in the United States to become American Humane Certified, and hold its partnership of family-owned dairy farms to a higher standard by developing its own unique Clover Promise of Excellence. Clover Sonoma is proud to bring conscious dairy products direct from its farms to consumers. As a Certified B Corporation®, the company uses its business as a power to do good, and its passionate support of animal welfare, sustainable business practices, and local community have always been hallmarks of the business. Each year the company gives back at least five percent of its profits to support these passions under its Clover Cares program. For more information, please visit www.cloversonoma.com and join the conversation on Facebook, Instagram, Twitter, Pinterest and YouTube.

  • USDA Assists Farmers, Ranchers & Communities Affected by Western Wildfires

    The U.S. Department of Agriculture (USDA) today announced the availability of assistance for residents and agricultural producers affected by recent wildfires.

    As of today, wildfires have burned nearly 6.9 million acres across 11 states. More than 31,000 personnel from the local, state and federal levels are working to contain 61 large fires. The USDA Forest Service has more than 7,800 personnel committed to firefighting efforts along with airtankers, helicopters, and other air and ground firefighting resources.

    Food waivers and flexibilities

    On August 27, 2020, USDA’s Food and Nutrition Service (FNS) approved California’s waiver request to allow for the purchase of hot foods with Supplemental Nutrition Assistance Program (SNAP) benefits in select counties. As many California residents are not able to store food or access cooking facilities, households in those counties can purchase hot foods with SNAP benefits through September 23, 2020.

    On September 3, 2020, FNS also approved California’s request to issue automatic mass replacements of SNAP benefits to impacted households. This waiver allows households in certain counties and zip codes to receive replacement of 50% of their August SNAP benefits as a result of wildfires and power outages that began on August 17, 2020. For more information on either of these actions, contact the California Department of Social Services.

    Helping producers weather financial impacts of disasters

    When major disasters strike, USDA has an emergency loan program that provides eligible farmers low-interest loans to help them recover from production and physical losses. This program is triggered when a natural disaster is designated by the Secretary of Agriculture or a natural disaster or emergency is declared by the President under the Stafford Act. USDA also offers additional programs tailored to the needs of specific agricultural sectors to help producers weather the financial impacts of major disasters and rebuild their operations.

    Livestock owners and contract growers who experience above normal livestock deaths due to specific weather events, as well as to disease or animal attacks, may qualify for assistance under USDA’s Livestock Indemnity Program.

    Livestock producers who have suffered grazing losses due to a qualifying drought condition or fire on federally-managed land during the normal grazing period for a county may qualify for help through USDA’s Livestock Forage Disaster Program. Producers of non-insurable crops who suffer crop losses, lower yields or are prevented from planting agricultural commodities may be eligible for assistance under USDA’s Noninsured Crop Disaster Assistance Program.

    Helping operations recover after disasters

    USDA can also provide financial resources through its Environmental Quality Incentives Program to help with immediate needs and long-term support to help recover from natural disasters and conserve water resources. Assistance may also be available for emergency animal mortality disposal from natural disasters and other causes.

    Farmers and ranchers needing to rehabilitate farmland damaged by natural disasters can apply for assistance through USDA’s Emergency Conservation Program. USDA also has assistance available for eligible private forest landowners who need to restore forestland damaged by natural disasters through the Emergency Forest Restoration Program. USDA’s Emergency Watershed Protection Program can also help relieve imminent threats to life and property caused by fires and other natural disasters that impair a watershed. Orchardists and nursery tree growers may be eligible for assistance through USDA’s Tree Assistance Program to help replant or rehabilitate eligible trees, bushes and vines damaged by natural disasters.

    Producers with coverage through the Risk Management Agency (RMA) administered federal crop insurance program should contact their crop insurance agent for issues in filing claims. Those who purchased crop insurance will be paid for covered losses. Producers should report crop damage within 72 hours of discovering damage and follow up in writing within 15 days. The Approved Insurance Providers (AIP), loss adjusters and agents are experienced and well trained in handling these types of events. As part of its commitment to delivering excellent customer service, RMA is working closely with AIPs that sell and service crop insurance policies to ensure enough loss adjusters will be available to process claims in the affected areas as quickly as possible. Visit the RMA website for more details.

    Helping with the long-term recovery of rural communities

    USDA Rural Development has more than 50 programs available to rural and tribal communities for the rebuild, repair or modernization of rural infrastructure including drinking and waste water systems, solid waste management, electric infrastructure, and essential community facilities such as public safety stations, health care centers and hospitals, and educational facilities. Visit theUSDA Rural Development website for more information on specific programs.

    Visit USDA’s disaster resources website to learn more about USDA disaster preparedness and response. For more information on USDA disaster assistance programs, contact your local USDA Service Center.

  • ARS Scientists Seek Answers from Spotted Lanternfly Dispersal

    The black spots and beautiful colors can be deceiving.

    At first glance, the Spotted Lanternfly (Lycorma delicatula) is a beautiful insect whose colors mimic the beloved ladybug with its polka-dotted outer wings and red hind wing. But this is not the family-friendly insect that people love to see crawling on their wrist or captured in a framed print in a powder room.

    The Spotted Lanternfly is an invasive species that destroy fruit crops, trees and plants by hopping from plant to plant, crop to crop, and tree to tree. Although native to regions in China, India, and Vietnam, it was first detected in Berks County, Pennsylvania in 2014. Since then, Pennsylvania vineyards have seen considerable damage in high infestation areas and the Mid-Atlantic states of Delaware, Maryland, New Jersey, Virginia and West Virginia have also suffered from its presence. Insecticides are effective at killing the insect on grapevines, but they are expensive and of limited use because of constant re-infestation from the Spotted Lanternfly dispersing from wild hosts to surrounding vineyards.

    The good thing is that the Spotted Lanternfly isn’t known to bite or sting—but they are known to ruin an agricultural harvest. So, U.S. Department of Agriculture Scientists Dr. Tracy Leskey and Dr. Laura Nixon of the Appalachian Fruit Research Station in Kearneysville, West Virginia, initiated research on the invasive pest to see if they could develop sustainable pest management strategies and use the insect’s dispersal patterns for other prolific specialty crop pests.

    Leskey and Nixon collected Spotted Lanternfly nymphs and adults from host plants in sites within a quarantine zone in Virginia. They then measured the pest’s vertical climbing and horizontal jumping capacity and evaluated the effect of fluorescent marking powders on the nymph and adult’s mobility and ability to survive. Each color of powder (green, blue, orange, and pink) was tested at least twice per host plant. When the presence of fluorescent powder wasn’t visible, a UV flashlight was shone onto a nymph to confirm fluorescence. To establish baseline vertical walking and horizontal jumping dispersal capacity, Leskey and Nixon also evaluated all mobile life stages using bioassays conducted under field conditions in the quarantine zone.

    The findings were surprising. Spotted Lanternfly nymphs climbed significantly longer vertical distances compared with adults, while early adults (pre-oviposition period) jumped longer horizontal distances compared with nymphs or late adults (oviposition period) based on single jump measurements. The research also showed that marking nymphs and adults with fluorescent powder has no significant effect on vertical or horizontal movement and did not affect their mortality. Rather, research showed that the pest can be marked with fluorescent powders and retrieved from potted host plants within 24 hours. This means that marking the Spotted Lanternfly with fluorescent powder can serve as an appropriate method for measuring their dispersal in the environment. This can ultimately help researchers understand the Spotted Lanternfly’s migration pattern and find a way to prevent future movement and destruction.

    Dr. Leskey and Dr. Nixon are currently working to continue their research of Spotted Lanternfly dispersal behavior so they can continue to deliver scientific solutions to national and global agricultural challenges.

    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 $20 of economic impact.

    At a location around Reading, PA., USDA-ARS entomologist, Tracy Leskey from the Appalachian Fruit Research Station in Kearneysville, WV., inspects a tree limb covered (infested) with SLF-spotted lanternfly (Lycorma delicatula) 2nd and 3rd instar nymph (black); 4th instar nymph (red body).

  • California’s Wine Industry Unites to Support Fire-Impacted Communities

    Fires have once again ravaged California’s rural agricultural regions, leaving the most vulnerable in those communities without access to basic resources ranging from gas money to shelter. In response, California’s wine industry has rallied under the umbrella of #CAWineStrong to raise awareness and funds to support those in need.

    “Though many of our member wineries and growers are at risk of loss from these fires, our focus right now is on the broader community in which we live,” says Kim Stemler, who runs the Monterey County Vintners & Growers Association and is one of the industry leaders behind the #CAWineStrong effort.  “Many people are looking for ways to help, so we’re asking them to donate to regional community foundations, which can more quickly and directly benefit locals than national charities.”

    Information about the campaign is online at CAWineStrong.com, including links to each region’s community funds. Graphic indicators help website visitors to easily recognize which regions have been directly impacted by fire and to what degree.

    Questions about the campaign or how to get involved can be directed to cawinestrong@gmail.com.

    About #CAWineStrong

    California wine industry leaders have formed a support network to provide immediate assistance and long-term aid to victims of the fires impacting Northern California. The CAWineStrong Network includes:  Alexander Valley Winegrowers, Anderson Valley Winegrowers Association, Amador Vintners Association, Calaveras Valley Winegrape Alliance, Clarksburg Wine Growers & Vintners Association, Winegrowers of Dry Creek Valley, El Dorado Winery Association, Lake County Winery Association, Livermore Valley Winegrowers Association, Lodi Winegrape Commission, Lodi District Grape Growers Association, Monterey County Vintners & Growers Association, Madera Wine Trail, Mendocino Wine Co, Mendocino Winegrowers Inc., Napa Valley Vintners, Paso Robles Wine Country Alliance, Petaluma Gap Winegrowers Alliance, Placer County Wine Trail, Russian River Vineyards, Santa Cruz Mountains Winegrowers Association, San Luis Obispo Wine Country, Sonoma County Winegrowers, Sonoma County Vintners, Sonoma Valley Vintners & Growers, Temecula Valley Winegrowers, West Sonoma Coast Vintners, Wine Road Sonoma County, and Wineries of Santa Clara Valley.

  • 20% Raisin Crop Reduction in China Spurs Increased Demand

    China’s raisin production is forecast at 160,000 MT in MY 2020/21, down 20 percent from the previous year as the Covid-19 outbreak in the country’s major producing area has delayed raisin processing. As a result, China’s raisin export forecast is reduced sharply from the previous year to 20,000 MT on reduced exportable supplies. The raisin import forecast is expected to increase over the previous marketing year by nearly 20 percent to 37,000 MT given the shortage of local supplies and recovering demand.

    Production

    China’s raisin production is forecast at 160,000 metric tons (MT) in marketing year (MY) 2020/21 (August-July), down 20 percent from the previous year. The quarantine measures against Covid-19 have delayed raisin processing indefinitely in the Turpan area of Xinjiang, the single largest raisin producing region in China. The Xinjiang government is enforcing a quarantine lockdown across the whole province following an outbreak of Covid-19 in Urumqi, the capital of Xinjiang, in mid-July. As a result, many farming activities, including grape harvest, are suspended, according to local area sources in Turpan.

    The raisin processing season normally begins in mid-August and ends in late September or early October. Although the processing volume is relatively small at the beginning of the marketing year, if the quarantine measures persist, raisin production may be seriously affected. Turpan produces more than 80 percent of the country’s raisins (Turpan is shown in red below and Xinjiang is shown in orange). 

    Turpan produces mainly green raisins that are wind-dried in special drying houses by local farmers. Currently, green raisins, which are traditionally consumed as snacks, account for nearly 60 percent of the total market share. China is the world single largest producer of green raisins and the country’s raisin exports mostly fall in this category. Companies also process dark raisins in Turpan with sun- drying yards. The market share of dark raisins, which are mainly used as food ingredients, has reached around 40 percent in recent years.

    More than 90 percent of the grapes grown in Turpan belong to Thompson Seedless varieties that can be used for both raisin processing and fresh consumption. In MY2020/21, Turpan is expecting a good harvest of fresh grapes under favorable growing conditions. Normally, around 70 percent of the fresh grapes are processed into raisins and approximately five kilos of fresh grapes make one kilo of raisins.

    Price

    Raisin wholesale prices for MY2020/21 are not available as processing activities have not started. With the anticipated sharp decline in production, raisin prices are expected to increase from the previous marketing year. At the beginning of MY 2019/20, the wholesale prices for green raisins were quoted at RMB 24 (U.S. $3.50) per kilo in Turpan and dark raisins were sold at RMB 17 (U.S. $2.50) per kilo.

    Consumption

    The outbreak of Covid-19 in early 2020 has seriously impacted the consumption of raisins in China due to the closure of stores, disruption of logistics, and the limited use of gift baskets during the Chinese New Year. Although online snack food sales maintained moderate growth, consumption is focused more on meal substitutes such as instant food, bread, and cookies.

    With the effective control of Covid-19 and resumption of economic activities, raisin consumption is expected to recover gradually. Additionally, consumers will probably pay more attention to food safety and product brands. The consumption growth of raisins is dependent on development of new products and innovation of marketing strategies by major food producers.

    Raisins are used primarily in food processing as an ingredient or consumed directly as snacks. The rapid development of the snack food industry and the bakery sector has driven raisin consumption. The snack food industry had experienced an average growth of 6.7 percent during 2013-2019 and was predicted to maintain an annual growth rate of more than 6 percent in years to come, according to an industry report.

    Trade

    Imports

    The import forecast of raisins into China is 37,000 MT in MY 2020/21, an increase of nearly 20 percent from Post’s revised estimate of MY 2019/20 imports. Local importers and food processors are expected to increase their purchases from the world market given the sharp decline in Xinjiang raisin production. Uzbekistan remains China’s largest raisin supplier with a 65-percent market share in MY 2019/20. Chile passed the United States as the second largest raisin supplier. Raisin imports from the United States have not improved despite a tariff exclusion process that partially exempts the retaliatory tariffs imposed on U.S. origin products since the beginning of March 2020. The MY 2019/20 raisin import estimate is 31,000 MT.

    China’s raisin import shipments are concentrated in October-December (see chart below). During these months importers stock up in preparation for Chinese New Year celebrations and gifts. 

    Exports

    China’s raisin exports are forecast to decrease by 45 percent to 20,000 MT in MY 2020/21 from the revised number in the previous marketing year. The anticipated decline in local raisin production will reduce the exportable supplies. In addition, the world demand for raisins is likely to remain weak in the wake of the global Covid-19 outbreak. Leading export markets for Chinese raisins are the EU countries and Japan. The month-on-month data below highlights continued weakened exports. The MY 2019/20 export estimate was revised up in accordance with official customs data.

    Policy

    The State Council Tariff Commission (SCTC) announced that retaliatory tariffs imposed on U.S. agricultural products would be lowered as of February 14, 2020. As a result, the collected tariff on U.S. raisins became 55 percent, down from the previous 60 percent (see GAIN report CH2020-0016). In addition, SCTC launched a tariff exclusion process on March 2, 2020, focusing on individual importers who could apply for tariff exclusions on specific consignments of U.S. products. These exclusions exempted only the retaliatory Section 301-tariffs for the products and are valid for one year (refer to GAIN report CH2020-0017). If an exclusion application is successfully approved, import tariff for U.S. raisins would be cut to 25 percent.  

    Marketing

    U.S. raisins remain important for China’s snack food and baking sectors. However, consumer demand has been impacted by the Covid-19 pandemic, particularly in the HRI sector where many U.S. raisins are used. Slow consumption by the HRI section and overstocking of inventory led to delays for new orders. Supply chain disruptions during the pandemic also impacted sales.

    E-commerce channels

    The e-commerce channel continues to grow rapidly in China. In the first quarter of 2020, online retail food consumption grew 32.7 percent compared to the previous year, according to the China Statistic Bureau. This period coincided with some of the strictest Covid-19 measures in China. Consumers who switched to e-commerce sourcing during Covid-19 are likely to continue online purchases after experiencing consistent quality and increased ease from these platforms. This e-commerce trend is expected to continue across first, second and third-tier cities.

    About 30 percent of U.S. raisins are distributed through various e-commerce platforms. Some U.S. raisin brands have established their flagship stores on Taobao or JD.com to supply Chinese consumers.

    Baking industry continues to expand

    In 2020, the U.S. Department of Agriculture’s Agricultural Trade Offices across China worked with the Raisin Administrative Committee (RAC) to support in-person events showcasing U.S. raisins as ingredients in baked goods at retail chains. Raisins remain the most frequently used and popular dried fruit ingredient in the quickly expanding baking industry because of their familiar flavor and sweet taste. Consumer demand for baked goods and the sector’s expansion has helped push U.S. raisins into second- and third-tier cities. As home baking becomes a greater trend, the RAC is supporting online marketing initiatives that increase Chinese home bakers awareness of raisin uses in their recipes. — By the USDA Foreign Agricultural Service