California Ag Network

Category: Ag Economics

  • New USDA Survey to Measure Areas for Improvement

    The U.S. Department of Agriculture (USDA) today announced a new annual survey of farmers, ranchers and private forestland owners. The survey will help USDA understand what it is doing well and where improvements are needed, specifically at the Farm Service Agency (FSA), Natural Resources Conservation Service (NRCS) and Risk Management Agency (RMA).

    A selection of 28,000 producers will receive the survey over the next few weeks, but all farmers are encouraged to take the survey at farmers.gov/survey.

    “We want to hear from our customers so we can learn what we’re doing right and where we’re missing the mark,” Under Secretary for Farm Production and Conservation Bill Northey said. “Good data is critical to good decision-making. The more responses we receive, the better we can understand what we need to do to improve our services to America’s farmers, ranchers and private forestland owners.”

    This survey is part of the President’s Management Agenda. It requires High Impact Service Provider agencies across the federal government, including FSA and NRCS, to conduct annual surveys to measure and respond to areas needing improvement.

    “We recognize producers and our staff may be experiencing a lot of change in how they interact with USDA,” Farm Service Agency Administrator Richard Fordyce said. “This is a good time to check in with our customers.”

    “We will use this input to help improve the delivery of our conservation programs as our sister agencies will do for their programs.” Natural Resources Conservation Service Chief Matthew Lohr said.

    “We’re about our customers,” Risk Management Agency Administrator Martin Barbre said. “RMA works to provide producers with crop insurance policies that meet their needs and we need to know where we can improve.”

    The survey consists of 20 questions and takes approximately 10 minutes to complete. Responses are confidential, and individual responses will be aggregated. The survey will be open for at least six weeks and will be closed once USDA receives a 30% response rate.

    Learn more and take the survey at www.farmers.gov/survey.

  • Real CA Milk Innovation Competition Takes on Snacking

    The California Milk Advisory Board (CMAB) announced today the return of its dairy product innovation competition with the launch of the Real California Milk Snackcelerator to inspire new ideas integrating the flavor and functionality of California dairy into snack formulations that meet the needs of today’s consumers.

    With more than $450,000 in awards, the Real California Milk Snackcelerator taps into the $605 billion global snack food market while combining two of California’s great natural resources: High quality, sustainable dairy products and the insatiable California entrepreneurial spirit. The competition aims to inspire innovation and investment in dairy-based snack products, packaging and capacity within California by connecting the dots between processors, producers, investors, ideas and entrepreneurs.

    Research shows that consumers are snacking more than ever before. According to Mondelez International, 59% of adults worldwide prefer snacking to meals with that number increasing to 70% for millennials. The Real California Milk Snackcelerator aims to uncover healthy, natural options to satisfy these cravings.

    “Dairy and snacking are natural partners. Not only do dairy foods make the perfect snack on their own, the flavor, nutritional profile and functionality of milk and other dairy products as ingredients are hard to duplicate. As consumers look for snacking options with natural ingredients that deliver something extra – whether a specific flavor profile or a boost of quality protein or other essential nutrients – product developers appreciate what dairy brings to the table,” said John Talbot, CEO of the CMAB. “The goal of this competition is to tap into our global obsession with snacking to inspire new ideas and help clear the hurdles to bringing these products to market.”

    The inaugural Real California Milk Accelerator event in 2019 brought nine innovative fluid milk startup finalists to a live pitch event and built the model for dairy product competitions. The 2019 winner, Bears Nutrition, will launch its ready-to-drink milk-based nutritional shakes for children at retail test markets this fall along with companion “Immunity Nourishment” and “Brain Booster” milk powder-based nutritional shake mixes online.

    Through the Real California Milk Snackcelerator, the CMAB is seeking high-growth potential snack product concepts, with cow’s milk dairy as their first ingredient and making up at least 50% of their formula. The startups will need to commit to producing the product in California, with milk from California dairy farms, should they win the competition.

    Up to eight (8) startups will receive $10,000 worth of support each, to develop an edible prototype, while receiving a suite of resources including graphic design, lab or kitchen time and elite mentorship from global marketing, packaging, and distribution experts. They also will receive a business development trip (or virtual equivalent) to tour dairy farms and production facilities and to meet with industry leaders to help drive success of their new venture. The winner will receive up to $200,000 worth of additional support to get their new product to market. The value of the competition prize is $450,000.

    VentureFuel, Inc., the leading corporate innovation consultancy, is again partnering with CMAB to run the program and to identify the best emerging opportunities from their global network of investors, founders and academics. “Our first program with CMAB proved the value of marrying innovation and dairy as we were able to bring delicious and diverse products to market quickly, while providing founders unprecedented mentorship and access to accelerate their success,” said Fred Schonenberg, Founder of VentureFuel, Inc. “CMAB’s continued commitment to product innovation now will inspire great new snacks for consumers to enjoy and further increase the demand for California Dairy.”

    Competition rules and application documents are available at https://www.venturefuel.net/snackcelerator and the deadline for application is August 28, 2020.

    California, known for innovation, has a reputation for quality dairy products. As the number one producer of fluid milk in the nation, California also leads the nation in sustainable dairy farming practices. More than 1200 family dairy farms produce the California milk found in fluid milk, cheese, butter, yogurt, ice cream and other dairy products identified by the Real California Milk seal.

    About Real California Milk/California Milk Advisory Board

    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy farm families who lead the nation in sustainable dairy farming practices. With a mission to increase demand for products made with Real California Milk, the CMAB is celebrating 50 years promoting California’s sustainable dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs. For more information and to connect with the CMAB, visit RealCaliforniaMilk.com, Facebook, YouTube, Twitter,Instagram and Pinterest.

    About VentureFuel, Inc.
    VentureFuel helps established companies around the world unlock growth and discover efficiencies by partnering with emerging startups and breakthrough technologies. Our innovation programs solve specific challenges with tangible results, discover first-to-market opportunities and help large organizations develop a repeatable innovation mindset. We are 100% independent, sourcing from our global network of the best investors, scouts, founders and academics. Learn more at: www.venturefuel.net, Linked-In, Twitter and Instagram. You can hear The VentureFuel Podcast on Apple, Spotify or Messy.

  • USDA Section 32 Almond Purchase Announcement

    The Almond Alliance of California, with support from congressional representatives, lead the advocacy efforts to have California almonds included in the United States Department of Agriculture (USDA) Section 32 food purchase program. The approval of up to $40 million of direct purchases to various domestic food nutrition assistance programs will provide much needed relief as the almond industry navigates through the impacts of COVID-19; while also providing a healthy food source to those in need.

    As grower prices continue to drop and there is an anticipated 3-billion-pound crop for 2020 it is clear that the assistance of a USDA commodity purchase came at a critical time.  As we recover from the damages of COVID-19 and market conditions the Almond Alliance will continue to advocate for and identify opportunities for the industry. We appreciate our relationship with USDA and know that the Section 32 purchase program will give more confidence to our buyers and sellers and supply those in need with a nutritious product we are extremely proud of.

    If you have any questions related to this industry alert, please contact the Almond Alliance staff at staff@almondalliance.org. The Section 32 purchase solicitation will be coming soon.

    How to Become a Certified USDA Vendor:

    The Almond Alliance facilitated a webinar in May 2020 for almond industry handler members interested in becoming an approved vendor with USDA, Agricultural Marketing Service, Commodity Procurement Program. Click here, to view the PowerPoint presentation.  Contact information for the AMS new vendor coordinator is below.  We are in the process of scheduling a How to Become a Certified USDA Vendor webinar in mid August and we will provide those details shortly.

    Selling Food to USDA: Click Here.

    Becoming a USDA Foods Vendor: Click Here.

    Contact:  Andrea Lang, New Vendor Coordinator
    AMS Commodity Procurement Program
    Communications and Stakeholder Branch
    Email: NewVendor@usda.gov      
    Phone: 202-720-4237

    Background:
    The Agricultural Marketing Service (AMS) purchases a variety of 100% domestically produced and processed commodity food products, including dairy products, fruit, vegetables, meat, poultry and seafood. AMS issues solicitations and makes purchases for over 200 different USDA Foods on an ongoing basis.

    These purchases support American agriculture by providing an outlet for surplus products and encouraging consumption of domestically-produced foods. The wholesome, high-quality products purchased by USDA—collectively called USDA Foods—are delivered to schools, food banks and households in communities across the country, and are a vital component of our nation’s food safety net.

  • Heat Illness Prevention Education, Training Resources and Publications​​​​​​​

    Almond Alliance of California — Harvest is here and so is the heat!  Heat illness is deadly so prevention education is critical for protecting your employees. Make heat safety part of your overall safety program.

    Some essentials ALL employers should have are:

    • Plan – Develop and implement an effective written heat illness prevention plan that includes emergency response procedures (Almond Alliance provides a template if requested).
    • Training – Train all employees and supervisors on heat illness prevention (Almond Alliance provides pre-season trainings upon request).
    • Water – Provide drinking water that is fresh, pure, suitably cool and free of charge so that each worker can drink at least 1 quart per hour, and encourage workers to do so.
    • Shade – Provide shade when workers request it or when temperatures exceed 80 degrees. Encourage workers to take a cool-down rest in the shade for at least five minutes when they feel the need to do so to protect themselves from overheating. They should not wait until they feel sick to cool down.
    Cal/OSHA’s Heat Illness Prevention protocols include enforcement of heat regulations as well as multilingual outreach and training programs for California’s employers and workers.

    Below are links to heat illness prevention online resources, materials and printable flyers to use in your workplace this season. If you have any questions, please contact staff@almondalliance.org. Keep your employees safe and hydrated!
    For Employers:
    For Workers:
    • Pocket Guide: Protect Yourself from Heat Illness (English/Spanish), Click Here.
    • Heat Safety Fact Sheet (English), Click Here.
    • File a Health & Safety Complaint (English), Click Here.
    • Additional Heat Illness Prevention Resources, Click Here.
    Training and Education:  
    Materials available for order by email at heat@dir.ca.gov to order copies of the below materials at no cost. (99 Calor campaign page) Material is also available for download, including Heat Illness Prevention videos and discussion guides in multiple languages.
    Additional Heat Illness Links: 
    • FedOSHA Quick Card: Protecting Workers from Heat Stress, Click Here.
    • National Weather Service: California Information, Click Here.
    • Centers for Disease Control: Heat Stress, Click Here.
    • Centers for Disease Control: Tips for Preventing Heat Related Illness, Click Here.

    Note: This document is provided for informational purposes only and does not constitute legal advice. Almond Alliance of California does not advise on the application of law to an individual’s or company’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.

  • Driving Walnut Consumption Through Snacking

    California Walnut Board – Over 95% of Americans snack at some point throughout the day. When we saw snacking move into first place for the top usage for walnuts in our Attitude & Usage (A&U) study, we knew the time was right to capitalize on this trend. In May, we kicked off a campaign designed to showcase California walnuts as the ideal snack food.

    The campaign inspires consumers to snack better by focusing on the simplicity of snacking on a handful of walnuts. We aim to create further excitement around the campaign by engaging consumers and reminding them of the unique flavor profile walnuts offer for both sweet and savory snacking options by having them pick their snacking preference, Team Sweet or Team Savory.

    In May, we also began our partnership with former Bachelorette, Ali Manno, to create content that highlights the versatility of walnuts as a snack. Ali shared her favorite sweet and savory walnut recipes in a blog post and on social media. Audience reception of Ali’s posts was overwhelmingly positive, and the inclusion of her daughter in the content amplified her relatability. Many commenters expressed intent to make her walnut spreads and contributed to the #WalnutsSweetOrSavory conversation by sharing their snacking preferences. Coverage of Ali’s snacking story was recently posted on Women’s Health and was syndicated through both Yahoo! and MSN.

    In order to give our snacking campaign a timely hook to help break through the COVID-19-dominated media landscape, we conducted a nationally representative survey to learn more about how Americans’ snacking habits had changed during shelter-in-place restrictions, so we could better understand how walnuts fit in. The survey, conducted in partnership with Kelton Global, revealed that Americans are snacking now more than ever, with 49% snacking more now than before the pandemic began.

    At the same time, many snackers are turning to indulgent snacks as a source of comfort, with 31% saying their new habits have led to recent weight gain. We leveraged these results in our outreach, with walnuts being the perfect snack ingredient that can pair with nearly any flavor, highlighting California Walnuts’ research that has shown walnuts may play an important role in maintaining a healthy weight. We also shipped mailers full of new and innovative walnut-packed snack products to media and health practitioner contacts.

    To capitalize on the increased use of digital media during this time, the campaign continues to be supported with snacking-themed digital ads and social media posts driving consumers to walnuts.org to engage with the campaign landing page, recipes, and blog content. The effort was further amplified via content marketing placements with print and digital partners, such as the Kitchn article “Berry Walnut Trail Mix Is the Afternoon Snack You’ve Been Waiting For” and Men’s Health “Make Walnut Energy Balls for a Snack”. Articles like “Summer Snack Hacks to Make the Long Days Simpler” on our blog rounded out the plan. Social media ads and polls encouraged consumers to join the conversation, resulting in high engagement levels.

    Editorial content from the blog and promotional landing pages have pulled visitors into the site with 70K+ clicks through the end of June, and more than 45K+ Recipe/Collection views.

    With consumers shopping for groceries online at record levels, California Walnuts launched an ecommerce digital advertising program on Kroger, Amazon, Instacart, Albertsons, Safeway and Ahold for the months of July and August. Additionally, traditional retail promotions will bring the campaign to life in September with snacking-themed promotions at Publix, Kroger, and Harris Teeter. Display shippers at 3,000 locations will encourage customers to “Grab a Handful of Nutrition” with California Walnuts.

    Looking ahead, we plan to continue building upon our campaign’s momentum by discovering new ways to reach consumers and share the many reasons California walnuts are not only the ideal snack food, but also the perfect ingredient for sweet and savory snack creations.

  • Kendall-Jackson Commits to Certified California Sustainable Wine Growing

    Kendall-Jackson, one of America’s most beloved family-owned and operated wineries, is proud to announce its commitment to Certified California Sustainable Winegrowing (CCSW) and will add the CCSW logo to the Vintner’s Reserve Chardonnay, the #1-selling wine in America. With this addition, Kendall-Jackson becomes one of the nation’s largest wine producers to make such a profound commitment to enhancing the sustainability of its winegrowing and supply chain. 

    “From the onset, my father, Jess Jackson, believed making great wine starts with respect for the land, the community and future generations,” said Katie Jackson, SVP of Corporate Social Responsibility. “We want to provide consumers with wine that they can feel good about drinking. The entire Kendall-Jackson family is committed to keeping my father’s legacy alive and leading California wineries in sustainable winemaking practices. We hope others will follow our path.”

    Kendall-Jackson was first certified sustainable in 2010. In 2017, the CCSW logo was introduced, and Kendall-Jackson promptly added it to the Grand Reserve tier wines. The winery is now making a substantial commitment in adding the logo to the Vintner’s Reserve wines, the largest production tier in the Kendall-Jackson portfolio. Vintner’s Reserve Chardonnay, which has been a benchmark wine for California Chardonnay, and the top-selling Chardonnay in America for the past 28 years according to IRI data, will carry the CCSW logo starting with the 2018 vintage.

    “This wine has an extensive marketplace presence across America, so this is an exciting and significant endeavor that helps bring nationwide awareness to the California wine industry’s commitment to sustainable winegrowing,” said Allison Jordan, Executive Director of the

     California Sustainable Winegrowing Alliance, the governing body of the CCSW.

    Kendall-Jackson’s commitment spans the entire portfolio. The ’17 Vintner’s Reserve Merlot, the ’19 Rosé, and the ‘19 Avant Unoaked Chardonnay will also carry the logo, with other varietals following as they are bottled. Consumers will also notice it on the winery’s elevated tier of single vineyard and small-production wines, the Estates Collection.

    As the industry sees a continued increase in wine purchasing for at home consumption, there is a greater consumer desire to understand how wine is made and make choices that support sound environmental and social business practices. A January 2020 Wine Intelligence survey showed 71% of U.S. consumer and trade respondents indicating that they would consider buying sustainably produced wine in the future.

    A sustainable wine goes well beyond the boundaries of the farm, with a need to look at multiple facets of the winemaking process. This puts a stronger onus on responsibility, which is a major facet of Kendall-Jackson’s desire to seek this type of certification. The CCSW sustainable winegrowing concept results in a three-pronged approach relating to the natural environment, quality of grapes and wine, and social responsibility to employees and communities.

    The CCSW certification consists of 140 vineyard and 104 winery best practices that are third-party audited each year. In order for an individual wine to be certified sustainable, at least 85% of the grapes in each bottle must come from a certified sustainable vineyard and the wine must be produced in a certified winery, with 100% of the grapes coming from California vineyards. For the past three decades, the Jackson family has cultivated many of California’s greatest cool, coastal mountains, ridges and benchland vineyards, allowing them a broad perspective of terroir to showcase some of California’s finest growing regions. The Jackson family considers themselves farmers first, and believes the better the soil, the better the wine. The same passion that led the family to acquire the best vineyards throughout coastal California also drives them to care for the land and employ certified sustainable farming practices. One hundred percent of Kendall-Jackson’s more than 14,000 acres of estate vineyards throughout cool, coastal California are third-party Certified Sustainable. No other winery can boast this breadth of sustainably farmed vineyards.

    The benefits of sustainable winegrowing are immense. Winemaking that supports environmental concerns as it conserves natural resources, improves air and water quality, and protects ecosystems and wildlife habitat. For the workforce, sustainable winemaking means stewardship of natural and human resources, with growers and vintners contributing to their communities both economically and culturally. Kendall-Jackson’s final product of higher quality grapes and wine is a testament to the in-depth attention to detail and continuous improvement needed to achieve this rigorous annual certification. By choosing Kendall-Jackson and other California wines with the CCSW logo, consumers can support an industry dedicated to environmental stewardship and socially equitable business practices.

    ABOUT CERTIFIED CALIFORNIA SUSTAINABLE WINEGROWING / CALIFORNIA SUSTAINABLE WINEGROWING ALLIANCE (CSWA)

    CSWA is a nonprofit organization created in 2003 by Wine Institute and the California Association of Winegrape Growers to promote the benefits of sustainable winegrowing practices, enlist industry commitment and implement the Sustainable Winegrowing Program. In 2010, CSWA introduced Certified California Sustainable Winegrowing, a third-party certification program for California vineyards and wineries that adheres to international sustainability standards. Through annual audits, this certification provides independent verification of stringent requirements that ensure key sustainability areas such as soil health, water and energy, habitat, human resources and more are addressed. Certified vineyards and wineries must also measure resources and performance and improve year after year. The logo on wine labels indicates that the wine is made in a Certified California Sustainable winery with grapes from California certified vineyards.

    ABOUT KENDALL-JACKSON

    Kendall-Jackson is one of America’s most beloved family-owned and operated wineries. The winery’s flagship wine, the Vintner’s Reserve Chardonnay, has been America’s favorite Chardonnay for over 28 years. Founded by entrepreneur and visionary Jess Jackson in 1982, and now led by his wife Barbara Banke and the Jackson family, Kendall-Jackson is based in Sonoma County and offers a range of acclaimed wines grown on the family’s estate vineyards along the coastal ridges of California. Kendall-Jackson is the benchmark for sustainable wine endeavors, setting the precedent for advancement in solar, water, and vineyard practices. Wine Enthusiast Magazine recently named Kendall-Jackson the 2017 winery of the year, one of the wine industry’s most notable accolades. Recognized as a leader in the industry for more than three decades, Kendall-Jackson has built a reputation centered around consistent, high-quality wines that are available nationwide in grocery stores, boutique wine retailers, and restaurants throughout America and globally in Europe, Central America, and Asia. Learn more online at www.kj.com, and follow Kendall-Jackson on Facebook, Twitter, or Instagram

  • New Study Reveals Blueberry Growers Strengthen U.S. Economy by the Billions

    Growers of U.S. highbush blueberries generate more than $4.7 billion in annual economic impact, translating to more than $12.7 million flowing into the U.S. economy every day of the year.

    “The U.S. highbush blueberry industry – including 12,739 blueberry farms – is a powerful financial force,” said Kasey Cronquist, president of the U.S. Highbush Blueberry Council (USHBC). “Behind every farm are growers who not only tend a truly remarkable superfruit, but also stimulate business activity, create thousands of jobs and contribute mightily to the economy.”

    In addition to the $4.7 billion in total economic impact, which includes several factors related to increased business activity as a result of growing blueberries, a new economic impact study commissioned by the USHBC further reveals:

    • Jobs: U.S. highbush blueberry growers alone create and sustain more than 44,535
      full-time equivalent jobs each year. These jobs are a result of the business activities of growers and the multiplier effect their purchases generate in a variety of farming and nonfarming sectors.

      It is important to note that this substantial job number does not include the jobs supported by blueberry processors or handlers. We would see even higher numbers if the full blueberry supply chain was considered, but for the purposes of this study, we focused exclusively on the economic impact of highbush blueberry growers, said Cronquist.

    • Labor Income: Nearly $1.8 billion in labor income is generated by the business activities of growers – equating to more than $4.9 million each day. These are dollars going to wages and salaries for new employment, as well as expanded incomes to those already in the labor force for activities such as overtime pay. These dollars are then diffused throughout the U.S. economy as the funds are spent on crucial goods and services such as food, housing, transportation and health care, Cronquist added.

     

    • Indirect Business Taxes: Each year, more than $145 million in indirect business taxes, not including income taxes, are generated by U.S. highbush blueberry growers. These collective indirect business taxes translate to nearly $400,000 per day. To put this in context, the annual tax revenue generated from U.S. highbush blueberry growers is more than the 2019 U.S. Department of Homeland Security’s Operations and Support budget ($129 million) or the 2019 U.S. Department of Energy’s Cyber Security, Energy Security and Emergency Resources budget ($96 million).

    “It is clear that blueberry growers play a significant role in strengthening the economic climate of the United States,” said Cronquist. “Their activities are diffused throughout the economy, touching nearly every aspect of life throughout the country.”

    U.S. Highbush Blueberry Growers Stimulate Major Economic Impact in Key Growing States

    In addition to the dramatic national economic influence of highbush blueberry growers, contributions are also significant at the state level in terms of financial influx and jobs created. A breakout of the grower impact in the top eight highbush blueberry states is included here:

     

    State Economic Impact
    (Millions/Annual)    		 Jobs Created
    (Full-time Equivalent/Annual)
    Michigan $530.4 6,600
    Georgia $521.8 4,140
    California $458.6 4,240
    Washington $464.4 4,450
    Oregon $353.5 3,505
    Florida $295.3 2,540
    New Jersey $149.3 1,885
    North Carolina $125.9 990

     

    About the U.S. Highbush Blueberry Council
    Established in 2000, the U.S. Highbush Blueberry Council (USHBC) is a federal agriculture research and promotion program with independent oversight from the United States Department of Agriculture (USDA). USHBC represents blueberry growers and packers in North and South America who market their blueberries in the United States and overseas and works to promote the growth and well-being of the entire blueberry industry. USHBC was established by blueberry growers and currently has 2,500 growers, packers and importers. USHBC is committed to providing blueberries that are grown, harvested, packed and shipped in clean, safe environments. Learn more at ushbc.org.

  • CA Table Grape Season in Full Swing with Lower Crop Estimate

    With the California table grape season in full swing and expectations for a positive season as the backdrop, the California Table Grape Commission revised its estimate for the 2020 table grape crop to 104.9 million 19-pound boxes, down from its April estimate of 106.5 million. The final harvest in 2019 was 104.99 million 19-pound boxes.

    “Estimating the crop is a detailed process that is formally undertaken three times a year and involves volume projections based on growing districts,” said Kathleen Nave, president of the California Table Grape Commission. “The significant amount of vineyard removal in 2019 appears to have been offset by new vineyards coming into production in 2020,” Nave said.

    Noting that demand has been strong and steady, Nave said the expectation is that the season as a whole will be a positive one. “Quality is excellent and demand is strong in the U.S. and in export markets, and grapes are a perfect fit for consumers in these complicated times: simple, flavorful, versatile, and full of health-enhancing phytonutrients that boost immune health.”

    With 65 percent of the California table grape crop typically shipped between September 1 and the end of January, Nave said that while grapes are a summer fruit, they are very definitely a fall and early winter fruit. With over 80 table varieties grown in California, consumers have lots of different grapes to try. For ideas that go beyond snacking, Nave suggests checking out the extensive collection of traditional and on-trend usage ideas at www.grapesfromcalifornia.com. 

  • Dairy Methane Reduction Programs: Providing Great Bang for the Buck

    California dairy methane reduction programs are providing a valuable mitigation strategy in the state’s efforts to fight climate change. A growing body of evidence shows that the Dairy Digester Research and Development Program (DDRDP) and Alternative Manure Management Program (AMMP)have proven to be among the state’s most cost-effective approaches for reducing greenhouse gas emissions.

    The California Department of Food and Agriculture (CDFA) recently released its 2020 report of dairy digester projectsfunded through the DDRDP. Anaerobic digesters, like the one pictured here, capture biogas from decomposing manure, which can be used to create renewable fuel or electricity. The 108 dairy digesters funded to date are already reducing 6 percent of the total greenhouse gas (GHG) emissions from all California agriculture. That’s a reduction of 19.9 million metric tons of carbon dioxide equivalents (MMTCO2e) over ten years. Alternative manure management projects avoid the creation of methane emissions by promoting drier handling and storage practices. The AMMP has funded a total of 105 of these projects, which are estimated to reduce about 1.1 MMTCO2e over 5 years.

    These programs stand out as top performers in California’s climate investment portfolio. The 2020 annual climate investment report shows that the DDRDP provides more GHG reductions than any other program (more than double the reduction of the next-ranking program). At a cost of $9 per ton of GHG reduction, the DDRDP is also the second most cost-effective of the 68 programs. This is in due in no small part to the matching private funds being invested at a 2 to 1 rate, helping the state leverage its investment and greatly expand the benefits. At a cost of $49 per ton of GHG reduction, the AMMP is the seventh most cost-effective of the 68 climate programs funded by the state.

    There’s another reason why California’s climate-smart dairy programs stand out: they reduce methane. Unlike carbon dioxide (CO2) and other long-lived GHG’s, methane is short-lived in the atmosphere, which means a reduction can have a cooling effect within a shorter amount of time. Leading climate scientists are now recognizing that reducing methane emissions can quickly stabilize the climate pollutant’s powerful impact and actually help offset the damaging impact of CO2—the state’s most significant GHG—which accumulates and persists in the atmosphere for hundreds of years.

    In a recent preliminary analysis of progress, the California Air Resources Control Board (CARB) documented that significant ongoing state incentive funding will be needed to achieve the state’s dairy and livestock methane emission reduction target created by Senate Bill 1383 (Lara, 2016). The analysis verifies that the DDRDP and AMMP have been highly effective. CARB also estimates that an additional $85 million in incentive funding will be needed each year between now and 2030 to make the additional reductions needed. This shows that CARB understands incentive funding remains very important, as the state seeks to reduce methane from smaller dairies. Early incentive funding led to the development of digesters on some of the larger dairies in the state, as these projects were able to demonstrate greater economies of scale. While the total costs of digester projects is less for smaller dairies, the cost per cow is higher. As a result, to be economically viable and successful, adequate incentive funding will be even more essential moving forward.

    California’s significant progress on dairy methane emissions reduction has not happened by accident. It has occurred because California had the foresight to structure a voluntary incentive-based approach to prevent the emission leakage that would occur from command and control regulation. The voluntary incentive-based approach—carried out through the DDRDP and AMMP—has worked well, helping take dairy farms more than halfway toward the state’s dairy methane reduction goal. Additional investments will help to not only meet the state’s methane-reduction goals, but also its overarching, ambitious climate targets.

    California’s dairy methane reduction programs are the state’s most effective climate mitigation tools.

  • APG Progress on Marketing Pistachios in China (American Pistachio Growers Summer Series 7/7)

    As gathering has not been possible due COVID-19 restrictions, American Pistachio Growers (APG) launched a video series with Pacific Nut Producer in lieu of their summer grower luncheon. Watch this final video of the series featuring APG China in-Country Representative Roger Zhang as he shares opportunities and the progress of APG marketing in India. Please enjoy the full seven part video series and read Pacific Nut Producer Magazine to get a full picture of what is going on in the American pistachio industry.