California Ag Network

Category: Ag Economics

  • Dairy Farmers Continue Collaborative Efforts To Address Community Drinking Water

    The California dairy community has long been dedicated to improving groundwater protection, and this commitment will only grow in the new year. By participating in the Central Valley Salinity Coalition, and working closely with regional and state officials, dairy farmers have been part of an incredible 13-year stakeholder effort, which recently resulted in the adoption of a new long-term plan. Dairy farmers remain engaged as implementation begins, starting with the most important goal, ensuring safe drinking water for all.

     

    In October, the State Water Resources Control Board approved the ambitious Central Valley-wide Salt and Nitrate Management Plan. The plan allows for water permit holders—including dairy farmers, other farmers, food processors, and other industries—to form nitrate management zones. Each zone will be required to develop plans for providing safe drinking water to residents in need, and ultimately, implement measures to reduce nitrate impacts to groundwater.

     

     

     

    “Dairy Cares has been participating in a stakeholder process known as CV-SALTS for a number of years, with the goal of reforming the regulatory system to better address water quality challenges while providing drinking water to those who need and protecting the ability of agriculture, including dairies, to survive and thrive in the valley,” said J.P. Cativiela, Regulatory Affairs Director for Dairy Cares.

    “That effort recently achieved a significant milestone with the adoption of Salt and Nitrate Management Plan. The year 2020 will be very important as we lay the foundation for management zones. Dairy farmers must remain at the table as local management zones are formed and begin to adopt local drinking water solutions.”

     

     

    Dairy farmers and dairy industry representatives have already been participating in two pilot management zones, which have been exploring a number of unique avenues for delivering temporary safe drinking water supplies to local residents in need. The goal for each zone is to decide upon a solution, or set of solutions, and raise funds to cover the cost of implementing those solutions. Since early 2019, organizers in the pilot zones have been working on creating blueprints for other zones to follow.

     

     

     

    “I think it’s very important for us as dairy farmers to continue to participate in this effort. We care about our community. It’s where we live and raise our own families, we want to make sure we’re finding solutions that serve everyone well into the future.” said Ray Prock Jr. a dairy farmer, who has been participating in the pilot taking place in the Turlock area.

    “It’s been a challenging task, but we need to be at the table, to be part of the solution, and ensure a fair and well-managed process to benefit our communities.”

     

     

    Ray says he hopes the lessons they’ve learned in his area will be helpful to others. The progress made at pilot management zones will soon be replicated across the Central Valley. Water users in the four other Priority 1 areas will need to organize their own management zones and create a drinking water plan. Dairy farmers will continue to participate in local efforts, ensuring safe drinking water for all and working toward greater groundwater protection.

     

     

     

    Dairy farmers are committed to being a part of the solution and ensuring safe drinking water.

     

     

  • USDA Extends Deadlines for Dairy Margin Coverage, Market Facilitation Programs

    Due to the prolonged and extensive impacts of weather events this year, the U.S. Department of Agriculture (USDA) today extended the deadline to December 20 for producers to enroll in the Dairy Margin Coverage (DMC) program for the 2020 calendar year. The deadline had been December 13.  USDA announced is also continuing to accept applications for the Market Facilitation Program through December 20.

    “2019 has challenged the country’s ag sector – prevented or late planting followed by a delayed harvest has been further complicated by wet and cold weather,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “Because some of our producers are still in the field, time to conduct business at the local USDA office is at a premium.  We hope this deadline extension will allow producers the opportunity to participate in these important programs.”

    Authorized by the 2018 Farm Bill and available through USDA’s Farm Service Agency (FSA), the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

    The Market Facilitation Program is part of a relief strategy to support American agricultural producers while the Administration continues to work on free, fair, and reciprocal trade deals to open more markets to help American farmers compete globally. MFP payments are aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations.

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

  • California Table Grape & Plum Market Hurt by China Tariffs

    In the fresh fruit world, which commodities have been hit the hardest by the international trade dispute and what is the industry doing to overcome the situation?  Watch this brief interview with Ian LeMay from the California Fresh Fruit Association as he explains, based on his recent presentation at the annual Grape, Nut & Tree Fruit Expo.

     

    Please thank our sponsor Duarte Nursery for their industry support and see them at their booth at Unified Wine & Grape Symposium in Sacramento, February 4-6 (Booth P1842).

  • Almond Board Fueling Farm of the Future with $5.9 Million Research Investment

    The Almond Board of California (ABC) today announced an investment of $5.9 million dollars in 85 independent research projects exploring next-generation farming practices. With this commitment, the California almond community has invested $89 million in research since 1973 to build a foundation of knowledge on responsible farming practices, food quality and safety and almonds’ impact on human health.

    A tangible example of the almond community’s commitment to continuous improvement, the Almond Orchard 2025 Goals, launched in January 2019, will leverage this research as farmers strive to meet measurable objectives with the goal of growing almonds in better, safer and healthier ways. The Almond Orchard 2025 Goals Roadmap, released today, outlines the almond community’s sustainability journey in four goal areas, as well as the metrics that the industry’s progress will be measured against.

    “The California almond community takes a long-term view of success based on respect for the land and local communities. Earlier this year, the California almond community set four ambitious goals aligning with our vision to make life better by what we grow and how we grow,” says Holly King, chair of the Almond Board of California. “The Almond Orchard 2025 Goals build on decades of progress, fueled by research. Fulfilling these commitments will require hard work, dedication and resources, including funding independent research to test new technologies and sharing the results as these approaches are proven.”

    Further Reducing the Water Used to Grow Almonds  

    Of this year’s projects, ten focus on water with an investment of $678,000. Since 1982, California almond farmers have committed $8.1 million dollars to 221 different water research projects spanning irrigation efficiency, groundwater recharge and water quality. Together this investment has helped reduce the amount of water needed to grow each pound of almonds by 33 percent over the past 20 years.[1] By 2025, the California almond community commits to reducing the amount of water used to grow a pound of almonds by an additional 20 percent.

    Progress towards this goal is being measured against almond farmers’ annual irrigation water applied per unit of crop yield. While 77 percent of almond farms utilize efficient microirrigation,[2] nearly double the 42 percent average for California farms, further improvements are underway. ABC is working with farmers to support their progress up the Almond Irrigation Improvement Continuum, a roadmap created by irrigation experts that outlines key irrigation management practices and how to achieve increasing levels of precision in each area.

     Achieving Zero Waste by Using Everything the Orchard Grows

    Almonds grow in a shell, protected by a hull, on a tree, and the California almond community ensures that each of these coproducts is put to beneficial use. Since 1977, ABC has funded 79 research projects totaling $3.5 million exploring the best ways to utilize these materials, establishing traditional uses such as dairy feed, livestock bedding, and electricity generation. Thirteen new studies have been funded this year with a commitment of $607,000 dollars to determine how almond coproducts may address needs in other sectors, with promising leads in strengthening recycled plastics, creating biofuel and more. By 2025, the California almond community commits to achieving zero waste in orchards by putting everything grown to optimal use.

    Given that almond coproducts are widely utilized already, progress toward this goal focuses on reducing the industry’s environmental footprint and adding value – economically and environmentally – via three key measures. These include: 1) significant increases in recycling trees into the soil when an orchard is removed, using the trees’ woody biomass to build healthier soils and address climate change via increased carbon sequestration, 2) diversifying applications for hulls and shells beyond current uses in the California dairy industry and 3) the effective elimination of open burning as a means to dispose of woody biomass.

    Additional Opportunities for Innovation

    In addition to water sustainability and coproduct utilization, investing in research has also resulted in significant advancements in the areas of nutrient management, air quality and honey bee health. For example, farmers work closely with beekeepers and follow research-based best practices to ensure the safety of honey bees, essential to pollinating almonds. ABC has funded more research related to honey bee health than any other crop group,[3] with 125 projects funded to date. This year, California almond farmers have added to that investment with five new research projects totaling $336,000.

    “I often think of us as surfers,” said ABC chair, Holly King. “Surfers are strategic about where to catch a wave, and we’ve done that over the years with our research investments, catching the wave that will bring the greatest return. Today’s investment will not only help farmers grow almonds more efficiently, but also ensures we’re solidly riding the wave to a more sustainable farm of the future.”

    ABC research projects are funded through an assessment placed on each pound of almonds grown in California. After review by third-party research advisors and workgroups focused on distinct almond farming topics, projects are selected by a committee of almond farmers and processors based on strategic alignment to industry needs and anticipated impact of the research.

    For more information about ABC’s 46 years of almond farming and environmental research, and to explore how this research supports the California almond community in growing the farm of the future, visit Almonds.com/GrowingGood.

     About the Almond Board of California

    California almonds make life better by what we grow and how we grow. The Almond Board of California promotes natural, wholesome and quality almonds through leadership in strategic market development, innovative research, and accelerated adoption of industry best practices on behalf of the more than 7,600 almond farmers and processors in California, most of whom are multi-generational family operations. Established in 1950 and based in Modesto, California, the Almond Board of California is a non-profit organization that administers a grower-enacted Federal Marketing Order under the supervision of the United States Department of Agriculture. For more information on the Almond Board of California or almonds, visit Almonds.com or check out California Almonds on Facebook, Twitter, Pinterest, Instagramand the California Almonds blog.

  • Farm Bureau Thanksgiving Survey Shows Average Cost of Holiday Meal Up One Cent From Last Year

    The American Farm Bureau Federation’s 34th annual survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $48.91, or less than $5.00 per person. This is a 1-cent increase from last year’s average of $48.90.

    The centerpiece on most Thanksgiving tables – the turkey – costs slightly less than last year, at $20.80 for a 16-pound bird. That’s roughly $1.30 per pound, down 4% from last year. The survey results show that retail turkey prices are the lowest since 2010.

    The shopping list for Farm Bureau’s informal survey includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, and coffee and milk, all in quantities sufficient to serve a family of 10 with plenty for leftovers.

    Although the overall average cost of the meal was about the same this year, there were some price changes for individual items. In addition to turkey, foods that showed slight price declines include cubed bread stuffing and canned pumpkin pie mix. Foods showing modest increases this year included dinner rolls, sweet potatoes and milk. After adjusting for inflation, the cost of this year’s Thanksgiving dinner is $19.13, down slightly from last year.

    Despite the growing popularity of prepared foods, the vast majority of Americans, 92%, celebrate Thanksgiving at home or at a family member’s home and most cook their entire meal at home, according to the survey.

    More than 250 volunteer shoppers checked prices at grocery stores in 38 states for this year’s survey. Farm Bureau volunteer shoppers are asked to look for the best possible prices, without taking advantage of special promotional coupons or purchase deals.

    The AFBF Thanksgiving dinner survey was first conducted in 1986. The informal survey provides a record of comparative holiday meal costs over the years. Farm Bureau’s classic survey menu has remained unchanged since 1986 to allow for consistent price comparisons.

    By The American Farm Bureau Federation

  • Strong Case for Upgrading Trucks: Food Distributors Realize Important Soft Benefits of Replacing Aging Equipment

    Food distributors are increasingly realizing the need to upgrade the trucks in their transportation fleet more frequently by replacing older, less efficient units that cost more to operate and produce harmful emissions.

    Without question, newer, eco-efficient trucks deliver significant savings in fuel and maintenance costs. In fact, according to the most recent truck lifecycle data index, food distribution fleet operators can realize a first-year per-truck savings of $16,928 when upgrading from a 2015 sleeper model-year truck to a 2020 model. For a fleet of 100 vehicles, the savings can reach $1.7 million.

    Fuel efficiency and maintenance expenditures, which are much lower on new trucks, account for a large portion of these “hard cost” savings. The hard cost savings are critically important to distinguish, especially when every organization is laser-focused on their bottom-line Total Cost of Ownership (TCO) to be competitive.

    However, aside from these “hard cost” savings, there are also several “soft cost” benefits that contribute significantly to an organization and its bottom line when making asset acquisition decisions.

    Newer Trucks Mean Safer Trucks for the Drivers and the General Public

    More fleets are now paying attention to their trucks’ safety obsolescence in addition to their economic obsolescence – meaning it’s just as important to replace an older truck for safety benefits as it is for economic reasons.

    The advancements in heavy-duty truck safety systems have been nothing short of impressive over the last several years. From truck components that have been around for decades, such as brakes and tires, to the latest technological advancements like stability control and lane-departure systems, safety technology today has made our truck drivers and roads safer.

    According to the National Transportation Safety Board (NTSB), close to half of all two-vehicle crashes from 2012 to 2014 were described as rear-end collisions. Of these crashes, 87% were the result of drivers not paying attention to the traffic ahead. NTSB found in a 2015 study that collision avoidance systems could have prevented 1,700 fatal rear-end collisions annually.

    As a result of this increased visibility, the inclusion of collision warning systems on heavy-duty trucks saw a 28% increase in 2017 and a 39% increase in 2018. Volvo was early to adopt Electronic Stability Control and equip their trucks, with updates made as early as model-year 2006 prior to the Federal Motor Vehicle Safety Standards No. 136 Mandate in Calendar Year 2017. By model year 2018, all major Original Equipment Manufacturers (OEMs) started adding Collision Avoidance and Lane Departure to their standard package offerings.

    Confirmed by the Virginia Tech Transportation Institute, six out of nine carriers reported that adopting at least one advanced safety technology significantly improved safety outcomes. Therefore, prioritizing safety, along with adding advanced technologies, can have a significant effect on improving a fleet overall.

    The OEMs are all major contributors and proponents of safety. Many include safety features as a part of their standard specs and require end-users to opt-out if they are declining these safety features. OEM standards will eventually include Forward Video Monitoring, Blind Stop Monitoring, and Lane Correction (steering).

    Older Trucks Make It More Difficult to Attract Drivers

    In addition to better safety, drivers and technicians want to drive and work on newer trucks that come with advanced technology. Drivers want more comfort, less fatigue, and more home time. Newer trucks allow food distributors to entice new drivers with advanced vehicles, rather than use expensive sign-on bonuses when hiring. What’s more, the new equipment can keep drivers from leaving to go work for other companies. Aside from sign-on bonuses, it can be expensive to onboard a new driver through training costs. In a recent International Foodservice Distributors Association (IFDA) webinar titled “Addressing Today’s Transportation Challenges,” Paul Mugerditchian, President of Dot Transportation confirmed that it can cost up to $10,000 to onboard a new driver, which is money that can go toward the bottom-line or reinvestment when a fleet can instead enjoy a higher retention rate of its drivers.

    Customer Service Improvements are Noticeable

    Newer trucks have an impact on more than just drivers, as they can also improve customer satisfaction rates through fewer delays and an enhanced corporate image. Drivers will have a better attitude when making deliveries, and there will be less freight and property damage potential due to equipment and safety technologies on board. Food distributors can also maximize their margins through reduced transport costs to the customer.

     Corporate Image and Sustainability

    In today’s world, clients want to do business with companies that emphasize the importance of reducing the overall carbon footprint and commitment to sustainability. Continuously updating a truck fleet encompasses many facets of sustainability including optimizing vehicle specification (to be more fuel efficient and aligned to the duty cycle and geographic locale), specifying lighter components and allowing for longer maintenance intervals (also reducing environmental hazmat disposal), and disposing of pre-owned equipment to a secondary market providing more fuel-efficient vehicles.

    A shorter lifecycle conserves fuel resources, reduces emissions, and provides a cleaner environment. For example, upgrading to a 2020 model year truck from a 2015 unit would reduce CO2 by 126 metric tons and NOx by 12%.

    It’s easy for food distributors to focus on hard costs such as fuel, financing and maintenance when operating their fleet of trucks. However, broadening their view to additional soft benefits will offer significant improvements to the operation of the fleet and the organization overall.

    About the Author: Katerina Jones is Sr. Director of Marketing and Business Development at Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and lifecycle cost management. For more information please visit www.FleetAdvantage.com. 

  • 2019 Raisin Crop Offer Made to RBA Signatory Packers

    The Raisin Bargaining Association’s Board of Directors has offered their signatory packers a price of $1,600/ton for the the 2019 Natural Seedless Raisin Crop. The Board of Directors is asking all RBA Signatory Packers to accept, counter, or reject this offer by 11/22/19 at 5 pm.  The RBA Board of Directors strongly believes it is in the best interests of not only their growers, but all raisin growers to set a fixed price in this tumultuous year and hope that their processors also realize this and are willing to negotiate with the RBA as they have over the last 52 years.

  • Reclamation awards $1 million in CALFED grants to improve water reliability, enhance environment

    The Bureau of Reclamation awarded a total of $1 million in CALFED Water Use Efficiency grants to two California projects that will conserve around 4,000 acre-feet annually and improve infrastructure for fiscal year 2020. Combined with local cost-share contributions, these projects are expected to implement about $2.7 million in water management improvements during the next two years.

    The two selected projects are described below:

    Shafter-Wasco Irrigation District $500,000 grant. The district will install a new 27-inch pipeline along a 1.5-mile alignment in Shafter, connect a pipeline to an existing neighboring district pipeline and then bank this water for future drought. This available water will help mitigate the district’s on-farm groundwater pumping and alleviate some of the groundwater basin overdraft. Annual water savings will conserve around 3,000 acre-feet (or about 978,000 gallons); lifetime water savings will be 144,000 acre-feet (or about 46.9 billion gallons) over the project’s 50-year life. Project cost is $1,559,787 with a federal cost-share of $500,000.

    South San Joaquin Municipal Utility District $500,000 grant. The district will construct 40 acres of spreading ponds and install a recovery well within its boundaries to provide district operational flexibility and absorb surface water when available for recharge and irrigation recovery in peak-demand months or dry periods. Annual water savings will conserve around 1,100 acre-feet (or about 358 million gallons); lifetime water savings will be 55,800 acre-feet (or about 18 billion gallons) over the project’s 50-year life. Project cost is $1,162,926 with a federal cost-share of $500,000.

    These projects will contribute to CALFED Bay-Delta Program’s objectives of improving ecosystem health, water supply reliability and water quality. California and federal agencies are partners in the 30-year program (2000-2030). Reclamation’s competitive selection process prioritized projects that addressed statewide CALFED goals.

    Fiscal year 2020 CALFED funding is available through Funding Opportunity Announcement BOR-MP-F002. Applications are due by Dec. 2, 2019, through www.grants.gov. Contact Anna Sutton for more information on the Water Use Efficiency Program at asutton@usbr.gov or 916-978-5214 (TTY 800-877-8339).

  • Spur Pruning Pinot Noir Vineyards Without Losing Crop Yield

    An increasing tight labor supply has compelled grape growers to turn to mechanization, and spur pruning grapevines can save growers a lot of money over cane pruning; however, there has been a belief in the industry that spur pruning Pinot Noir vineyards leads to reduced yields in comparison.  Watch this brief interview with Patty Skinkis from Oregon State University as she shares her recent studies and vineyard trials that would prove otherwise.  Read more about it in the upcoming November issue of American Vineyard Magazine.
     
    Please thank our sponsor Duarte Nursery for their industry support and attend their upcoming Grapevine Clonal Field Days.  Learn more HERE.

  • USDA’s McKinney Leads Mission to Tap Trade Opportunities in Vietnam

    When Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney leads a U.S. Department of Agriculture trade mission to Vietnam Oct. 15-18, he’ll be accompanied by nearly 80 industry and government representatives seeking to expand agricultural exports to one of the fastest-growing regions of the world.

    The mission will be based in Ho Chi Minh City, and will also include buyer delegations from Thailand and Burma (Myanmar).

    “The size of this trade mission delegation speaks to the phenomenal potential that exists for U.S. exporters in Vietnam and surrounding countries,” McKinney said. “Since the United States normalized relations with Vietnam in 1995, our agricultural exports have grown exponentially, reaching a record $4 billion last year. Sales of U.S. food and farm products to Thailand and Burma also set records in 2018, topping $2.1 billion and $126 million, respectively.”

    Joining McKinney are the heads of six state departments of agriculture: Benjamin Thomas of Montana, Jeff Witte of New Mexico, Doug Goehring of North Dakota, Kim Vanneman of South Dakota, Sid Miller of Texas and Doug Miyamoto of Wyoming. Officials from the Georgia, Maine, Minnesota, Tennessee, Virginia, Wisconsin and Washington departments of agriculture will participate as well.

    In addition, representatives from the following companies and organizations will attend:

    1. Agri Export International LLC, Columbia, S.C.
    2. All Berry and Fruits, Portland, Ore.
    3. Almond Board of California, Modesto, Calif.
    4. American Feed Industry Association, Arlington, Va.
    5. Appellations Cellar, Napa, Calif.
    6. Bard Valley Date Growers, Yuma, Ariz.
    7. Blue Diamond Growers, Sacramento, Calif.
    8. Bridgepathway LLC, Jericho, N.Y.
    9. California Blueberry Commission, Clovis, Calif.
    10. California Prune Growers Marketing Association, Yuba City, Calif.
    11. Clark Lumber Company, Red Boiling Springs, Tenn.
    12. Coconut King Miami Beach Inc., Miami Beach, Fla.
    13. Commercial Lynks Inc., Alexandria, Va.
    14. East West International Group, Inc, Moreland, Ohio
    15. Fidelis Forest Management, LLC, Baxter, Tenn.
    16. Food Export Association of the Midwest USA, Chicago, Ill.
    17. Food Export USA – Northeast, Philadelphia, Pa.
    18. Ginseng Board of Wisconsin, Marathon, Wis.
    19. Global Processing Inc., Kanawha, Iowa
    20. Graceland Fruit, Inc., Frankfort, Mich.
    21. Herr Foods Inc, Nottingham, Pa.
    22. Hess Brother’s Fruit Company, Lancaster, Pa.
    23. International Market Brands, Bellevue, Wash.
    24. International Nutrition, Omaha, Neb.
    25. Isa Beefmasters, San Angelo, Texas
    26. MEM Fairway Inc., Irvine, Calif.
    27. Nargo Industries USA Inc., San Ramon, Calif.
    28. Oregon Berry Packing, Inc., Hillsboro, Ore.
    29. Organic Valley, La Farge, Wis.
    30. Pacific Cheese, Co., Hayward, Calif.
    31. PacRim Wine & Spirits, San Rafael, Calif.
    32. Redwood Trading Group, Inc, Novato, Calif.
    33. Thompson Appalachian Hardwoods, Huntland, Tenn.
    34. U.S. Dairy Export Council, Arlington, Va.
    35. U.S. Grains Council, Washington, D.C.
    36. US International Foods LLC, St. Louis, Mo.
    37. U.S. Livestock Genetics Export, Inc., Mount Horeb, Wis.
    38. U.S. Soybean Export Council, Chesterfield, Mo.
    39. U.S. Wine Exports Company, Ltd., Ravenna, Ohio
    40. United Dairy Ingredients Group LLC, Montebello, Calif.
    41. United Natural Foods Inc., Tacoma, Wash.
    42. USA Foods, Oakland, Calif.
    43. Western United States Agricultural Trade Association, Vancouver, Wash.
    44. Wholesome Direct, Inc., Ridgefield, N.J.
    45. World Import/Export Trading Co., Belmont, Calif.