WESTERN GROWER SHIPPER SEPTEMBER/OCTOBER 2018
Legal Issues Gain Complexity Matching Modern Times
WGCIT SPONSOR Vic Smith Eyes the Big Picture Annual Meeting Returns to Palm Springs Poised to Celebrate the Best in Ag WG ANNUAL MEETING Navy SEAL Rob O’Neill to Keynote Major Luncheon Workforce Development at the Forefront of Western Growers Initiatives FOOD ORIGINS Precision Ag Startup Puts Actionable Data into Hands of Growers WESTERN GROWERS Member Directory of Attorneys and Law Firms
WESTERN GROWER SHIPPER SEPTEMBER/OCTOBER 2018 WGA.COM
6 WGCIT SPONSOR Vic Smith Eyes the Big Picture 8 Annual Meeting Returns to Palm Springs Poised to Celebrate the Best in Ag 10 WESTERN GROWERS ANNUAL MEETING Navy SEAL Rob O’Neill to Keynote Major Luncheon 12 Workforce Development at the Forefront of Western Growers Initiatives 18 Legal Issues Gain Complexity Matching Modern Times 28 FOOD ORIGINS Precision Ag Startup Puts Actionable Data into Hands of Growers 35 WESTERN GROWERS Member Directory of Attorneys and Law Firms
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Volume LXXXIX Number 5
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Thomas A. Nassif President Western Growers tnassif@wga.com Editor Tim Linden Champ Publishing 925.258.0892 tlinden@wga.com Contributors Cory Lunde 949.885.2264 clunde@wga.com
Stephanie Metzinger 949.885.2256 smetzinger@wga.com Leah Freeman 949.885.2279 lfreeman@wga.com Production Diane Mendez 949.885.2372 dmendez@wga.com Circulation Marketing 949.885.2248 marketing@wga.com Advertising Sales Dana Davis Champ Publishing 302.750.4662 danadavis@epix.net
DEPARTMENTS 4 President’s Notes 14 Member Profile 21 Government Affairs 22 Legislative Profile 24 Insurance Corner 26 Agriculture & the Law 33 Science & Technology 40 Contact Us 41 30
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Western Grower & Shipper ISSN 0043-3799, Copyright © 2018 by the Western Grower & Shipper is published bi-monthly by Western Grower & Shipper Publishing Company, a division of Western Growers Service Corp., 15525 Sand Canyon Avenue, Irvine California 92618. Business and Editorial Offices: 15525 Sand Canyon Avenue, Irvine California 92618.Accounting and Circulation Offices:Western Grower & Shipper, 15525 Sand Canyon Avenue, Irvine California 92618. Call (949) 863-1000 to subscribe. Subscription is $18 per year. Foreign subscription is $36 per year. Single copies of recent issues, $1.50. Single copies of issues more than three months old, $2. Single copies ofYearbook issue $4. Periodicals postage is paid in Irvine, California and at additional mailing offices. POSTMASTER: Send address changes to Western Grower & Shipper , PO Box 2130, Newport Beach, California 92658.
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TOM NASSIF | PRESIDENT AND CEO, WESTERN GROWERS PRESIDENT’S NOTES
Litigation as Strategy
When the lawyer awoke from surgery, he asked, “Why are all the blinds drawn?” The nurse answered, “There’s a fire across the street, and we didn’t want you to think you had died.”
As a recovering attorney myself, I can appreciate a good joke at the expense of my barrister kind. Quite frankly, the reputation lawyers have developed over the years is [in many, not all, cases] valid, especially in a state like California, which consistently ranks among the worst litigation climates in the United States. Indeed, the state and federal court systems have been expertly employed by many opponents of agriculture—in particular, in the labor and environmental arenas—to advance their ideology and gradually restrict the freedom of farmers to operate in California and many other places across the country. The Imperial Chinese called this process “lingchi,” or “death by a thousand cuts.” For years, the Environmental Protection Agency (EPA) and other federal agencies have engaged in “litigation lingchi” by cooperating with environmental groups as part of a “sue and settle” strategy to develop regulations. I called out this de facto rulemaking process in my 2011 testimony before the U.S. House Oversight and Government Reform Committee: “To comply with the settlement agreements or injunctive orders from the court, the EPA and other agencies impose regulations without meaningful input from stakeholders, without considering the economic impact on the nation’s farmers or workers, and with little regard to the intent of Congress when the law was passed.” In our own backyard, California Rural Legal Assistance (CRLA) has routinely leveraged the court system to attack agricultural employers, most recently targeting the H-2A program with the goal of reducing the use of foreign guest workers by California farming companies. Why? Because it is impractical to unionize H-2A workers, which is bad news for CRLA’s bedfellows, the United Farm Workers. In its various lawsuits, CRLA has argued that H-2A employers use the visa program as a means to keep wages low—giving them an alternative to raising pay to attract domestic workers—and working conditions unsafe. Despite the factual vacuity of these arguments, the CRLA has won several recent judgments against California agricultural employers. This strategy, using the legal system to promote a public policy agenda, has been nearly perfected by the labor and
environmental movements. The agricultural industry must become similarly adept at advancing its interests in the courts. We instinctively understand that the California Legislature has become overtly hostile to many private industry sectors, ours included. In the most recent primary elections in June, the number of “No Party Preference” voter registrations officially surpassed Republican voter registrations, and given California’s evolving demographics, it is difficult to imagine when, if ever, the pendulum might stop moving away from moderation. Likewise, the regulatory mandates dictated by many of our state and federal agencies continue to place expensive and unnecessary burdens on our businesses. Even in the Trump era, with the administration attempting to roll back job- killing regulations and excessive red tape, we are seeing that institutional bureaucracy is often too entrenched for any one administration to dislodge. In the face of all this, the agriculture industry must take to the courts. This path has been paved by several brave trailblazers. The Pacific Legal Foundation, for example, has boldly and tactically used the courts to defend the property rights of landowners against the overreaches of government, as they did in the case of Duarte Nursery v. U.S. Army Corps of Engineers . Because the Corps of Engineers considers “vernal pools” [which you and I call “rain puddles”] to be wetlands, pursuant to the Clean Water Act they ordered Duarte Nursery to stop farming its land without giving the company a hearing. Ultimately, rather than face the risk of penalties of up to $45 million, Duarte Nursery agreed to a settlement for a far lesser sum. Elsewhere, Western Growers filed an amicus curiae (“friend of the court”) brief in an Endangered Species Act case pending in the U.S. Supreme Court. At issue in Weyerhaeuser Co. v. U.S. Fish and Wildlife Service is whether the government can designate private land as unoccupied critical habitat that is neither habitat nor essential to species conservation. To quote my good friend Linda Richman from Saturday Night Live: “I’m getting verklempt! Talk amongst yourselves.” Furthermore, the Fish and Wildlife Service concluded that the $34 million in lost development value—which would result from this designation of 1,500 acres of private land in
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WESTERN GROWERS OFFICERS – 2018
Louisiana as critical habitat for the endangered dusky gopher frog… land that cannot provide habitat for them because it lacks features necessary for their survival— was not disproportionate to the biological benefits of designation! While this case does not involve farmland or property in Western Growers member states, it is not difficult to extrapolate the massive government encroachment on private property rights that could result from an unfavorable decision. (The Supreme Court will have an opportunity to examine the long- standing principle of judicial deference to federal agencies when it hears oral arguments in the Weyerhaeuser case when the Court convenes its upcoming term on October 1st.) This case underscores the significance of the courts to our future as farmers and business owners, as the decisions rendered in other
states and districts set precedents that impact all of agriculture. Given the ingrained hostility of the California Legislature and many state and federal regulatory agencies, we will need to take to the courts even more aggressively, confident that we have the U.S. Constitution on our side, and that the founding principles of private property rights and free enterprise will carry the day. This requires an immense commitment. Lawsuits take time and a lot of money. Engaging in even greater litigation to address broad industry concerns requires strong financial support from every industry association as well as individual farming companies. But rest assured, as agriculture becomes more sophisticated and deliberate in using litigation as a strategy, we can begin to reverse years of bad policy and preserve our industry for generations to come.
CRAIG A. READE, Chairman RON RATTO, Senior Vice Chair RYAN TALLEY, Vice Chair STEPHEN F. DANNA, Treasurer CAROL CHANDLER, Executive Secretary THOMAS A. NASSIF, President DIRECTORS – 2018 GEORGE J. ADAM Innovative Produce, Santa Maria, California JOSEPH E. AIELLO Uesugi Farms, Inc., Gilroy, California KEVIN S. ANDREW Vanguard International, Bakersfield, California MIKE ANTLE Tanimura and Antle, Salinas, California ROBERT K. BARKLEY Barkley Ag Enterprises LLP,Yuma, Arizona STEPHEN J. BARNARD Mission Produce, Inc., Oxnard, California BRIAN BERTELSEN Cove Ranch Management, Reedley, California GEORGE BOSKOVICH III Boskovich Farms, Oxnard, California DON CAMERON Terranova Ranch, Helm, California EDWIN A. CAMP D. M. Camp & Sons, Bakersfield, California CAROL CHANDLER Chandler Farms LP, Selma, California LAWRENCEW. COX Coastline Family Farms, Salinas, California STEPHEN F. DANNA Danna Farms, Inc.,Yuba City, California JOHN C. D’ARRIGO D’Arrigo Bros. Co. of California, Salinas, California THOMAS DEARDORFF II Deardorff Family Farms, Oxnard, California SAMUEL D. DUDA Duda Farm Fresh Foods, Inc., Salinas, California CATHERINE A. FANUCCHI Tri-Fanucchi Farms Inc., Bakersfield, California DAVID L. GILL Rio Farms, King City, California A. G. KAWAMURA Orange County Produce, LLC, Irvine, California ALBERT KECK Hadley Date Gardens,Thermal, California LORRI KOSTER Mann Packing Company, Inc., Salinas, California FRED P. LOBUE, JR. LoBue Bros., Inc., Lindsay, California FRANK MACONACHY Ramsay Highlander, Inc., Gonzales, California JOHN S. MANFRE Frank Capurro and Son, Moss Landing, California STEPHEN MARTORI III Martori Farms, Scottsdale, Arizona HAROLD MCCLARTY HMC Farms, Kingsburg, California JOHN MCPIKE California Giant, Inc., Santa Maria, California TOMMULHOLLAND Mulholland Citrus, Orange Cove, California KEVIN MURPHY Driscoll’s Inc.,Watsonville, California MARK NICKERSON PrimeTime International, Coachella, California THOMAS M. NUNES The Nunes Company, Inc., Salinas, California KEVIN E. PASCOE Grimmway Enterprises Inc., Bakersfield, California GARY J. PASQUINELLI Pasquinelli Produce Company,Yuma, Arizona STEPHEN F. PATRICIO Westside Produce, Firebaugh, California RON RATTO Ratto Bros. Inc., Modesto, California CRAIG A. READE Bonipak Produce, Inc., Santa Maria, California JOSEPH A. RODRIGUEZ The Growers Company, Inc., Somerton, Arizona WILL ROUSSEAU Rousseau Farming Company,Tolleson, Arizona VICTOR SMITH JV Smith Companies,Yuma, Arizona RYANTALLEY Talley Farms, Arroyo Grande, California BRUCE C.TAYLOR Taylor Farms California, Salinas, California STUARTWOOLF Woolf Farming & Processing, Fresno, California ROBYRACEBURU Wonderful Orchards, Shafter, California
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WGCIT SPONSOR Vic Smith Eyes the Big Picture
By Tim Linden V ic Smith readily admits that the agricultural technology play he and others are helping to fund is long term in nature with a positive return on investment still off in the future. “If I had to justify it with my CFO, that might be difficult to do,” he quipped. But Smith, CEO and president of JV Smith Companies, Yuma, AZ, has no regret about his continued contributions to the Western Growers Center for Innovation & Technology (WGCIT) and believes tangible ROI will result. The center is just now approaching the conclusion of its third year in operation, and Smith believes there are promising technologies beginning to surface. He does offer that some of the efforts appear to be “solutions seeking a problem” but indicates that might be an occupational hazard of dealing with forward-thinking entrepreneurs that bring outside-the-box thinking to the problems facing this industry. His technology consultant, longtime industry veteran Paul Fleming, noted that there are “amazing ideas coming out of the center” that are attracting interest and investment. In fact, JV Smith Companies is involved with several of the start-ups trialing ideas
and trying to help these tech pioneers connect the dots between innovation and grower needs. Smith said that was the basic idea behind the effort when it was first hatched several years ago. He credits Bruce Taylor of Taylor Farms with incubating the idea and moving it to the development stage, and donating the space for the center. “And Tom Nassif did a heck of job of stepping forward and making it happen.” Smith said he “loved the concept” of marrying the Silicon Valley with the Salinas Valley and helping to create solutions to the industry’s most pressing problems of increasing costs and shortage of labor, which the industry so heavily relies upon. He saw Taylor carrying the load and stepped to the plate with the realization “that others needed to support the effort” to make it a reality. Smith is a big believer in technology and is currently working with the University of Arizona developing automatic equipment to help with planting and thinning of vegetable crops. He believes robotics are potential solutions for the industry’s labor problems, but their use for harvesting crops is still off in the future. Fleming said the idea of a center, or incubator, focusing on agricultural issues in the heart of the Salinas Valley makes a great deal of sense. “Part of the synergies is having these innovators in the same space, talking to each other and coming up with solutions.” He and Smith believe, however, that there might be opportunities to improve the current process to better focus on the needs of the industry. Fleming said other organizations focusing on the needs of the industry—most notably the Center for Food Safety at UC Davis—use an RFP approach. In those instances, industry leaders look at challenges they face and ask for proposals (RFPs) to address those challenges. The pair believe this model could be used by WGCIT to help bring solutions to the industry’s most pressing issues. For example, Smith said one current problem is powdery mildew on spinach. He noted that it takes about 26 or 27 days to bring a spinach crop to fruition. Right now, powdery mildew is rearing its ugly head in some fields around day 21 causing growers to harvest the crop early, greatly reducing yields. “We just need five or six more days,” he said. Fleming said several of the WGCIT current or past tenants are working with soil analysis and may be able to solve this issue in the future. Smith said deep dives into soil makeup might reveal differences in soil composition allowing growers to know which fields can be planted safely avoiding the powdery mildew problem.
6 Western Grower & Shipper | www.wga.com SEPTEMBER | OCTOBER 2018
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Annual Meeting Returns to Palm Springs Poised to Celebrate the Best in Ag
By Leah Freeman A fter six years, Western Growers will be returning to Palm Springs for the 93 rd Annual Meeting. This is an opportunity for members to take part in educational and exciting events over the course of several days. Taking place October 28 th through 31 st at the JWMarriott Desert Springs Resort and Spa, this event will offer a collaborative environment for everyone in ag as they partake in new and returning activities. #AgCollab is the theme this year, which will bring attendees, members, ag leaders and other influential figures together under one roof to further the growth and development of the ag industry. WORKSHOPS—A WAY TO EDUCATE A significant part of the Annual Meeting is the emphasis on learning and education. There’s no limit to the wealth of information that someone can take away from the workshops offered.
Genomics Advances in genomics have the ability to transform the ag world as we know it and significantly affect how we live, work and run our businesses. Juan Enriquez will lead this workshop with a panel of members and other industry experts. Enriquez is a leading authority on the uses and benefits of genomic research. He is also an active investor in early-stage life science companies and the co-founder of Synthetic Genomics. He will discuss topics such as how newer gene-editing technologies differ from traditional GMOs, and what that difference means to the growers and crops affected. AgSharks AgSharks™ returns this year for another exciting competition. Western Growers’ AgSharks™ is the groundbreaking, collaborative forum that helps advance agricultural technologies within the fresh produce industry. In 2017, start-up companies Hazel
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Technologies and AgVoice received a $2.25 million total investment offer from S2G Ventures (Seed 2 Growth). A new slate of agtech startups will compete for venture capital investment opportunities. They will present new ideas in ag technology to a panel of AgSharks, consisting of member-judges and venture capitalists. Expect another year of surprise and excitement as the AgSharks evaluate startups and technology for real-time investment opportunities. Changing Minds to Influence Results with Arbinger Arbinger is a leading method in strengthening company culture, which takes into account an individual’s impact on others and focuses on the needs of an organization as a whole. The program places an emphasis on changing a mindset rather than individual behavior. The Arbinger principles have successfully guided Western Growers for many years now, and it is uplifting to see members also integrating these practices in their own companies. In this workshop, four Western Growers members will participate in a panel discussion and share stories on how Arbinger has positively impacted them and shaped their leadership influence to create a better work environment. Western Growers’ Senior Vice President of Human Resources Karen Timmins, and Arbinger Institute’s Senior Consultant and Master Facilitator Mike Merchant will lead participants on a journey of understanding the impact that Arbinger can have on a business. HIGHLIGHTS—ACTIVITIES & EVENTS Chairman’s Lunch and Keynote Western Growers Chairman of the Board Craig Reade will present the Chairman’s Address as he reflects back on his time leading the board over the past year. The luncheon will recognize the impact he has made as a leader in the Western Growers community. This will be followed by a keynote speech from Robert O’Neill. O’Neill is one of the most decorated combat veterans of our time and the author of the memoir The Operator: Firing the Shots That Killed Osama bin Laden and My Years as a SEAL Team Warrior . He brings his unique experience and SEAL team training and translates that into insight on leadership, decision-making and operating in uncertain environments. Board Meeting The Annual Meeting will see a changing of the leadership as Craig Reade of Bonipak Produce passes the chairman’s gavel to Ron Ratto of Ratto Bros. The event will occur during the Board of Directors Meeting, as we embark upon the next chapter within Western Growers volunteer leadership group. Award of Honor Dinner The Award of Honor Dinner & Gala is a night of #AgCollab where all members of the WG ag community join together to recognize, celebrate and honor Stephen Patricio, Western Growers 2018 Award of Honor recipient. The Award of Honor is Western Growers’ highest recognition of industry achievement and is given to individuals who have contributed extensively to the industry. Patricio is being recognized for his immeasurable leadership and contribution to the ag industry, making significant advancements in food safety and the protection of public health. He led the creation of the very first mandatory food safety compliance program for the California cantaloupe industry, as well as helped raise a large sum of money to fund research for
preventing foodborne illness. After the award ceremony, Western Growers will welcome America’s Got Talent season 11 finalist Jon Dorenbos, who will share his skills as a magician, incredible life story, great sense of humor and positive outlook to help inspire others to overcome their own obstacles and embrace change. PAC Luncheon The Western Growers Political Action Committee (WGPAC) provides campaign support to elected officials and candidates who defend the fresh produce industry. The PAC Luncheon is a great opportunity to raise money and use the proceeds to help WGPAC continue to advocate for crucial industry issues across the country. During the luncheon, Fox News Senior Judicial Analyst, Judge Andrew Napolitano, will provide a keynote speech, sharing his insights on the current political environment. He is the youngest life-tenured Superior Court judge in the history of the State of New Jersey and currently provides legal analysis to both Fox News Channel and Fox Business Network. Famous for his candid remarks, signature wit and personal anecdotes, Judge Napolitano is a critic of government intervention on personal lives and commercial transactions, and a passionate defender of the Constitution. CELEBRATION & ENTERTAINMENT Most importantly, the Annual Meeting is a joyful time to celebrate together. From new additions to old traditions, this year’s festivities will definitely make for an unforgettable week. Golf Tournament The Golf Tournament has typically been held on the last full day of the Annual Meeting, but this year’s event will be at the front end of the meeting. This offers everyone a chance to reconnect with old friends and get to know new attendees right off the bat. It will include a contest for the longest drive, longest putt and shot closest to the pin. Top Chef The Top Chef workshop will be returning for another year, but this time involving sushi. The hands-on workshop—taught by the resident sushi chefs at JWMarriott Desert Springs Resort & Spa— will cover everything you need to know to become a master sushi maker, including rice preparation, sushi rolling techniques, knife artistry and how to select the right seafood for your meal. Let the good times roll, and join the fun at this hands-on workshop. Party with the Partners Reception This networking extravaganza is also returning, but with a new name—Party with the Partners. It was previously known as the Supplier’s Party. Plus, there is a new spirited theme—the Grow ‘n Glow Fest. Neon lights and glow décor will bring a true celebratory vibe while you network, eat and dance the night away. Get your festival attire ready because this music-themed event will get you grooving to the tunes of the featured band, The Mighty Untouchables . It will also feature games, food stations and festive cocktails. For more information or to register, visit the 2018 Western Growers Annual Meeting website (http://www.wgannualmeeting. com/) or contact Cheryl Wood at (949) 885-4798.
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WESTERN GROWERS ANNUAL MEETING Navy SEAL Rob O’Neill To Keynote Major Luncheon
By Tim Linden R ob O’Neill, who is one of the most highly-decorated combat veterans of our time and the author of the memoir “The Operator: Firing the Shots That Killed Osama bin Laden and My Years as a SEAL TeamWarrior,” will be the keynote speaker at the Western Growers Annual Meeting in Desert Springs in late October. A former SEAL Team Six leader with the Naval Special Warfare Development Group, he deployed more than a dozen times and held combat leadership roles in more than 400 combat missions in four different theaters of war. His most famous mission was the one that took out Osama bin Laden on May 2, 2011. But it wasn’t the best executed mission he was ever on. O’Neill told Western Grower & Shipper that it is the mission everyone wants to talk about and it is emblematic of what the Navy SEALs do, which is rise above adversity to accomplish the task. In this case, the adversity was a situation that did not go as planned. One of the helicopters crashed in the Osama bin Laden compound and the SEALs had to improvise. In the original plan, O’Neill would be stationed on the roof, he said. Instead he was in the middle of the action and fired the fatal shots. The former SEAL ran through several other missions that rank higher on his “best” list, but only in that they were perfectly executed. “There was not a bigger one (than the Osama bin Laden raid) in modern history.” He revealed that when President Obama and his team made the decision to go ahead with the raid, it wasn’t because they knew bin Laden was there. “We were told, they knew we could get in and out safely, whether he was there or not.” O’Neill said the SEAL team knew of the mission about three weeks before it occurred. “We did not have to train for it as we were already well trained.” But there was preparation and O’Neill said “it is the preparation that makes the mission.” His team was in a position to take off and be in the compound with 90 minutes. On the fateful weekend, they were given a two-day window to accomplish the task and it actually began on Sunday, May 1, because the typically well-publicized National Correspondence Dinner was scheduled for the night before. “If we would have gone during that dinner, all of the Cabinet members and the President would have had to get up and leave and someone might have figured out what was going on,” he said. Shortly thereafter, O’Neill re-upped for six more months and went on one more mission before retiring in 2012. In 2014, he
revealed that he fired the round that killed Osama bin Laden. His frankness has been criticized by some who believe that “SEALs don’t talk.” But O’Neill said the criticism tends to come from outside the service. “There are at least five other books written by SEALs.” Since his retirement from the SEALs, O’Neill has been on the speaking circuit, giving as many as 300 speeches a year, though he has backed off from that level of engagement. He is deeply involved with The Grateful Nation, a non-profit group that helps Special Forces members re-enter civilian society and the workforce after their military careers come to an end. O’Neill said these individuals are problem solvers with great team work experience. “They have the skills employers want.” The Grateful Nation works with these individuals to place them in positions that utilize their skills. O’Neill left the SEALs only a few years before he would have reached the 20-year mark that guarantees a pension. While it was a difficult decision, he said the pension benefit did not enter into the equation. Instead, he wanted to watch his kids grow up and noted that it was more difficult to get the adrenaline level up to where it should be prior to a mission. “I was never hurt in a mission and it didn’t make sense to me to stay for six more missions before retiring. There was a lot that went into the decision.” He and his wife recently dined with President Trump and he strongly believes that more military veterans should run for office, but that doesn’t include him. “I won’t say never, but I don’t think that’s in my future. I was never a Boy Scout,” he said, speaking of the connotation not the organization. “I was a Navy SEAL and everything that goes with that for 17 years.” But he does have strong views about the government and what it can accomplish. He is not a big fan of the Veteran’s Administration. “It’s a tough one. It’s a big government-run industry…run a lot like the DMV (Department of Motor Vehicles). Right now I am having issues with the VA finding my doctor.” As a veteran of four different theaters of wars, he hopes he never sees the United States in another full-scale war. But he is proud of the U.S. Military and says it is still the most well- prepared unit in the world, though stretched pretty thin right now. “We can’t police the entire world. We need our allies to step up and solidify their defense spending.”
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Featured Speakers
Andrew Napolitano Fox News Senior Judicial Analyst
Juan Enriquez Futurist
Robert O’Neill Former Navy Seal
Mike Merchant Senior Consultant and Master Facilitator
Jon Dorenbos Former Pro Football Player and Magician
Register today at www.wgannualmeeting.com Early Bird pricing ends September 1st
Oct 28 th – Oct 31 st JW Marriott Desert Springs Resort & Spa | Palm Desert, California Sponsorship opportunities are selling fast. To reserve your spot, contact Cheryl Wood: (949) 885-4798 or cwood@wga.com
Workforce Development at the Forefront of Western Growers Initiatives
By Stephanie Metzinger J ust as the sun rises over the students starts to echo down the highway. In the distance, you can see the silhouette of a bus heading toward the field. The bus arrives at its first stop, unloading 30 students who are marching down the rows of lettuce to learn how occupations like science and engineering play a role in agriculture. As their tennis shoes hit the ground and clouds of dirt kick up behind them, they are now fully engaged in what will be one of the most eye-opening and informative career exploration journeys of their lives. These students are among a cohort of Western Growers (WG) Careers in Ag—an initiative to encourage college students to pursue science, technology, engineering and mathematics (STEM) careers within the agricultural industry. The program was launched in July 2017, taking a group of 15 students from Cal Poly Pomona and UC Davis, who were all studying STEM-related topics, on a three- day tour throughout the Central Coast. They visited WG member operations and met with successful ag professionals to learn about the different types of jobs available for them and to understand how crucial STEM experts are to the survival of agriculture. Since then, nearly 140 students have participated in Careers in Ag, and the program has expanded to include California community colleges, University of Arizona and Cal State L.A. “It’s not all tractors and plows out here. seemingly infinite fields of lettuce, the chatter of excited university
from Taylor Farms and Steinbeck Country Produce, as well as with numerous WGCIT startups, to hear about their career paths, glean tips on getting ahead in the workforce and learn about their experiences in ag. Additionally, students were treated to a keynote address about the latest trends in agricultural technology and the career opportunities for current agricultural students. Beyond college students, the WGCIT is also providing middle and high schoolers with the knowledge and tools needed to succeed in agriculture. The Center introduced the Junior AgSharks Competition earlier this year during the Center’s inaugural AgTechx event. Junior AgSharks brings together students from local middle and high schools to listen to pitches from start-up companies developing technologies to solve
It’s a lot of computers and sensors and all the new technology that comes to the ranch,” said Brian Antle, president of PlantTape USA. “It’s certainly going to take the next generation of students and workers to run all this equipment, so it’s great to have everybody out here and show them around and open their eyes to what’s available out here on the ranch.” In addition to encouraging students to apply their STEM-related degrees toward a career in ag, the program also facilitates career placement between students and ag organizations. One such example is Travis Taylor, a managerial economics major at UC Davis, who participated in the tour while he was a junior at the university. Taylor made such a lasting impression on Taylor Farms’ Director of Automated Harvesting Equipment Chris Rotticci during the tour that when WG connected them soon after, Rotticci offered Taylor a summer internship at Taylor Farm’s new entity, Automated Harvesting LLC. “[The internship] not only gave me great hands-on experience, it gave me the right direction on where I want to go moving forward with my career,” said Taylor. “I thank Automated Harvesting for this great opportunity and also Western Growers for their continued support.” Today, Taylor has since graduated from UC Davis and has accepted a manager position with a grape grower in Lodi, Calif. Throughout the tour, students also have the opportunity to meet agtech startups and hear about Salinas-based Western Growers Center for Innovation & Technology (WGCIT). The WGCIT has also launched several workforce development programs to encourage youth to pursue a career in ag. For example, the WGCIT hosts a “Home for the Holidays” professional mixer where college students who are returning home to Salinas Valley during winter break are invited to an exclusive meet-and-greet with industry leaders and tech companies. Last year, 30 students from CSU Monterey Bay, Hartnell Community College, UC Davis, Cal Poly Pomona and Fresno State convened at the Center to chat with ag professionals
Foundation Ribbon Cutting
agriculture’s most pressing issues. After hearing the pitches, the students “confer” with a panel of venture capitalists and farmers to choose which startup they believe has the best technology to solve issues plaguing the local region. “The boom of agricultural technology is opening the doors to many jobs that did not previously exist, and we are thrilled that events such as Home for the Holidays and Junior AgSharks are helping introduce youth to these budding career opportunities,” said Dennis Donohue, lead of the WGCIT. By hearing about the latest technologies and interacting with leaders in the ag industry and venture capitalist space, students become aware of the fact
Careers in AG
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that the industry is in need of future leaders who are interested in STEM- related topics. Each Junior AgSharks event culminates with keynote addresses from movers and shakers in the robotics or tech industry. In a similar effort to promote interactive STEM education, Western Growers Foundation awards grants to schools in California and Arizona to give students more opportunity for hands-on learning by growing a garden. The Foundation has funded nearly 1,200 school gardens since its inception in 1995, and today, the school garden program has evolved to support STEM curriculum to nurture the natural curiosity of children in areas related to farming and agriculture. This year, WG awarded 20 K-12 schools $1,500 grants to support new school gardens. Through these sponsored gardens and selected curriculum, students will learn about the science of how seeds become salads, the technology available to enhance plant growth, the engineering behind farm equipment and the math to calculate how much water is needed for optimal yield. “We hope that these gardens will help children see the connections between STEM subjects and farming, inspire them to pursue advanced STEM degrees and, eventually, apply their knowledge to highly- skilled careers in the agricultural industry,” said WG President and CEO Tom Nassif. In addition to arming K-12 and college students with the skills and knowledge needed to prosper in the ag industry, WG is also taking steps to cultivate the future generation of farmers. In February 2013, WG installed its inaugural class of Future Volunteer Leaders, a two-year program designed for the next generation of leaders within WG member companies. These individuals are policy-minded and have expressed an interest in becoming more informed and effective advocates for the fresh produce industry. These future leaders are invited to participate in all WG board meeting functions and engage in political advocacy in DC and Sacramento to develop a deeper understanding of the legislative process and how public policy issues affect the industry. To date, 34 young leaders have participated in the program, with one graduate—Steve Martori III of Martori Farms—already serving on WG’s Board of Directors.
Top and middle photos: Junior AgSharks Bottom photo: Future Volunteer Leaders
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CALIFORNIA MEMBER PROFILE
John & Gail Kautz John H. Kautz Farms Lodi, California
Member Since 1977
Continual Expansion Has Served Kautz Farms Well
By Tim Linden D uring the late 1960s, the development of the mechanical tomato harvester saved the California processing tomato industry and led to great expansion of production. As others were entering the industry, Lodi tomato farmer John Kautz saw difficulties on the horizon and began diverting his acreage to wine grapes. This going-against-the grain action was a seminal moment in the history of the family farming operation, and 50 years later, John H. Kautz Farms and its holdings
are on top of the wine world…literally. The family operation has expanded exponentially and now farms about 8,000 acres of wine grapes, owns two wineries and runs a world-class entertainment facility attached to one winery far above the fray in the Sierra foothills. The Kautz family story begins in the early 1900s when the family emigrated to the United States from its native Germany via Ukraine. First stop was Nebraska in 1906 and then a move to California in the early 1920s. The family eventually settled in Lodi and John was born in
1930 on the same property that currently holds his family home, as well as the headquarters of Kautz Farms. The family was self-sufficient as it raised its own animals and livestock and grew its own vegetables. Over time, the family farm grew to 38 acres and it became a commercial operation, with various crops and dairy items providing a living for the family. During his youth, John got involved in the Boy Scouts, which, to this day, he points to as one of the great influencers on his life. He is an Eagle Scout and continued in the organization in his adult life becoming a Scoutmaster and receiving the
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prestigious Distinguished Eagle Scout Award. By the time John graduated from Lodi High School in 1948, grain crops, including alfalfa and corn, and canning tomatoes were part of the mix. John joined his father on the farm as his older brother was tragically killed in World War II. Another tragedy occurred in 1952 when John’s dad died, leaving the farming operation in the hands of the young Kautz. John started slowly changing some of the crops. He added pickling cucumbers, green bell peppers and other vegetables, and eliminated the dairy cows. John also got involved in the farming community at a young age, which is still a hallmark of his existence. The list of organizations he has belonged to and served in one leadership capacity or another is lengthy, including Western Growers, California Farm Bureau and the California Wine Institute, as well as serving 11 years as president of the California State Board of Food and Agriculture. He has belonged to a score of organizations and has received too many awards to name, though it is interesting to note that John Kautz was named Outstanding Young Farmer in the Nation in 1965 by the Junior Chamber of Commerce. As a small farmer in the 1950s, he joined together with several neighbors and formed the San Joaquin Vegetable Growers Co-op in an effort to create leverage through collaboration—another hallmark of his life. Another big influencer in his journey, wife Gail Kautz, came into his life in 1958. “We met in a pizza parlor,” said Gail, “but I always liked telling my dad it was a bar.” Gail was studying at the nearby College of the Pacific—now Stockton’s University of Pacific (UOP)—and soon finished her studies earning a Bachelor of Science degree in elementary education. She and John were married not too much later and produced three sons and a daughter in the 1960s—each of whom are now in the family business. Gail’s personal journey began in Oakland where she was born and raised the daughter of a lawyer. “I like to say I was a country girl born in the city,” as she was an active participant in 4-H clubs and Future Farmers of America (FFA). In fact, her influence won out over that of her husband when it came to raising their own children. They each followed the 4-H path rather than the Boy Scout route. In those early years, Gail stayed close to home raising the kids but as the years went by she became much more involved in Kautz Farm and the farming community in general. Like her husband, she has been an active community member with service to many different organizations, including UOP’s Board of Regents and the first woman chair of the California State Fair. And she has also been honored more times than there is room to relate. Today she has an office next to her husband’s in the company headquarters in Lodi and is involved in every aspect of their business. A Game-Changer In the 1960s, as a processing tomato grower, John called himself a “rubber tramp” as he would travel throughout the valley checking on his various tomato acreage plots. He was active in the industry and a member of the California Tomato Growers Association board when it worked with seed companies and the University of California to create varieties that could be mechanically harvested and the harvester to do it. As that project was gaining success, John witnessed more and more large growers eyeing the tomato industry. With a
mechanical harvester, these growers were creating continuous fields of hundreds of acres in the Southern San Joaquin Valley. “I saw the handwriting on the wall,” he said. “How could we compete with a 40 acre plot here and another small plot over there? We (in the Lodi area) had put ourselves out of business.” But instead of licking his wounds, Kautz shifted his acreage to wine grapes. He said the micro-climate in Lodi is absolutely perfect for permanent fruit crops such as grapes and cherries. “We have warm days but at night it’s like a giant air conditioner with the cool breezes coming off the Bay and the Delta. It’s a cool moist breeze from Sacramento to Stockton.” John said the result is a wine growing region second to none in the state of California. He admits that Napa has the reputation but he does not believe it can grow any better grapes or produce better wine than Lodi. As Kautz Farms began shifting its acreage, its holdings had expanded significantly and they continue to grow to this day. “I drew a circle on the map around my farm and anytime land became available, I’d buy it. Sometimes I paid a very high price, but it was worth it.” As he started increasing his wine acreage in the 1970s, Lodi already had a reputation for producing zinfandel grapes and wine. To this day, it is known for its old vine zinfandel, with some of those vineyards dating back more than 100 years. But again, Kautz decided to go against traffic. Most growers were planting zinfandel and barbera; Kautz put in chardonnay, merlot and Petit Sirah. “I was the only one with a chardonnay in Lodi for a long time.” In 1973, the company signed a 30 year contract with the Almaden Vineyard to provide that large producer with wine grapes. “That allowed us to grow quickly. We converted all of our vegetable acreage to permanent crops, including some cherries and almonds, which we still have.”
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The company also crushed some of its own grapes, which were made into wine and exported mostly to Japan. In the late 1980s, the company continued its foray into the wine business by building Ironstone Winery in Murphys, which is about an hour’s drive from the family’s home in Lodi. It was also a favorite spot of Gail Kautz, who grew up spending summers at the family’s mountain cabin in that town. Today that house is John and Gail’s second home, and Murphys has become a bustling wine town. “When we built the winery, there were a total of three wineries in Calaveras County. Now there are 23 wine tasting rooms on Main Street alone,” Gail said. (Yes, that is the same Calaveras County made famous by Mark Twain’s jumping frog story.) As the Ironstone property took shape, the Kautzes added an 8,000 seat amphitheater a few years later and today that venue attracts world famous acts. This summer Willie Nelson performed at the theatre as well as acts diverse as Boy George and Allison Krause. The facility is also home to the Ironstone Concours d’Elegance, a classic car show, which is Gail’s pet project. Now in its 22 nd year, Gail says it is one of the top classic car shows
in the country, attracting more than 350 vintage cars and raising more than $1 million during its lifetime for 4-H and FFA activities. The Kautzes built the outdoor terraced theater with wide ramps so that it could accommodate the winning cars as they paraded by at the appropriate time during the car show. In the 1990s, Bear Creek Vineyards, a winery in Lodi, was added to the mix. “It’s as efficient a winery as you can build,” John said. It’s a state-of-the-art facility providing wine processing services, including custom wine production. As mentioned, each of the Kautz four children are involved in the operation and have different areas of concern. Steve is the oldest and runs the Ironstone Winery and the Murphys’ facilities. Kurt handles the Bear Creek Winery and also operates the company’s “Hot Wood” brand, which is the number one label in packaged firewood. It is sold to retailers throughout the western United States. Jack is in charge of the company’s property management and land acquisition division. Daughter Joan is running the company’s off-shore marketing program for its wine and is also getting involved in the domestic marketing program as well.
The company does not have a board of directors. “My kids don’t like meetings,” John quipped. He said each of the kids has their area of expertise and they have autonomy in the decisions that need to be made in their sphere. John claims to leave them alone and notes that from the beginning, he groomed his kids to take responsibility and take control of the organization. “We have watched so many families that were successful but didn’t bring their kids into the organization. That was not what we decided to do. As they were growing up we were fairly tight with funds to the kids. They had to earn what they received. But we gave them the opportunity and they all have taken it.” As John and Gail get ready to celebrate their 60 th wedding anniversary, they look over a large agricultural operation that has been built from scratch with no fatal missteps along the way. John explains that as a kid, he loved to play the game of Monopoly, buying Boardwalk and Park Place and constructing houses and hotels as the object of the game was to maximize the value of each property. John H. Kautz Farms has traveled that same path.
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