SEPTEMBER | OCTOBER 2023
JOHN D’ARRIGO Celebrating the Recipient of WG’s 2023 Award of Honor
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WESTERN GROWER & SHIPPER Published Since 1929 Volume XCIV | Number 5
To enhance the competitiveness and profitability of Western Growers members
FEATURES
Dave Puglia President & CEO Western Growers davep@wga.com
28 JOHN D’ARRIGO
Celebrating the Recipient of WG’s 2023 Award of Honor 32 Kauai to Set the Stage for the 97 th Western Growers Annual Meeting 34 Western Growers Ag Legal Network Directory
Editor Ann Donahue 949.302.7600 | adonahue@wga.com Contributors Cory Lunde 949.885.2264 | clunde@wga.com Michelle Rivera 949.885.4778 | mrivera@wga.com Kara Timmins 949.885.4786 | kmtimmins@wga.com Circulation Marketing 949.885.2248 | marketing@wga.com Advertising Sales Dana Davis 302.750.4662 | dana@tygermarketing.com
ARTICLES 24 MEET YOUR FUTURE VOLUNTEER LEADERS Anthony Reade 25 MEET YOUR FUTURE
40 WGCIT RESIDENT
Concept Clean Energy: Shining a Light on Solar Energy Solutions for Growers
VOLUNTEER LEADERS Krystal Del Bosque
TOGETHER.
WGA.COM
DEPARTMENTS
6 President’s Notes 8 Agriculture & the Law 10 Advocacy | California 12 Science
22 Director Profile 26 WG Member Welcome & Anniversaries 41 Updates from the WGCIT 44 WG News You Can Use 47 Contact Us 48 Connections 49 Inside Western Growers 50 Farm Dogs and Barn Cats of Western Growers
Western Grower & Shipper ISSN 0043-3799, Copyright © 2023 by the Western Grower & Shipper is published bi-monthly by Western Grower & Shipper Publishing Company, a division of Western Growers Service Corp., 6501 Irvine Center Drive, Suite 100, Irvine California 92618. Business and Editorial Offices: 6501 Irvine Center Drive, Suite 100, Irvine California 92618. Accounting and Circulation Offices: Western Grower & Shipper, 6501 Irvine Center Drive, Suite 100, Irvine California 92618. Call (949) 863-1000 to subscribe. Subscription is $25 per year. Foreign subscription is $50 per year. Single copies of issues, $2. 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.
14 WGIS 16 WGAT 18 Pinnacle Claims Management 20 Innovation
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PSI
B REEDING A BETTER BERRY
A T C ALIFORNIA B ERRY C ULTIVARS WE ’ RE DEVELOPING PRODUCTS THAT IMPROVE GROWERS ’ LIVES . T ODAY , GROWERS FACE NUMEROUS CHALLENGES . F ROM EVOLVING DISEASE PRESSURES TO INCREASED LABOR COSTS , IT ' S DIFFICULT TO TURN A PROFIT . W E FOUNDED OUR COMPANY IN 2014 WITH THE AIM OF BREEDING STRAWBERRIES THAT TASTE AND LOOK GREAT WHILE ALSO MINIMIZING GROWER RISK AND PROTECTING THEIR PROFITS . A S THE D IRECTOR OF R ESEARCH & D EVELOPMENT AT C ALIFORNIA B ERRY C ULTIVARS , I’ M PLEASED TO ANNOUNCE THE RELEASE OF OUR FIRST SHORT - DAY STRAWBERRY CULTIVAR . W ITH HIGH EARLY - SEASON YIELDS OF LARGE , FIRM FRUIT , OUR FIRST SHORT - DAY CULTIVAR
INCREASES THE FINANCIAL VALUE OF THE OVERALL CROP BY SHIFTING THE YIELD CURVE FORWARD . A ND BECAUSE IT IS RESISTANT TO M ACROPHOMINA , GROWERS WON ’ T LOSE YIELD TO PLANT MORTALITY . B ETWEEN THE EARLY YIELD , TOTAL YIELD , AND REDUCED GROWING RISK , OUR FIRST SHORT - DAY CULTIVAR WILL SIGNIFICANTLY INCREASE RETURNS - PER - ACRE FOR ANY GROWER . T HE C ALIFORNIA B ERRY C ULTIVARS T EAM AND MYSELF ARE PROUD TO ANNOUNCE OUR FIRST SHORT - DAY STRAWBERRY CULTIVAR :
C HECK OUT OUR OTHER PRODUCTS ON OUR WEBSITE . D IRECTOR OF R ESEARCH AND D EVELOPMENT K YLE M. V ANDEN L ANGENBERG , P H .D.
cbcberry.com
Telling Our Story By Dave Puglia, President and CEO, Western Growers
Back in April, the California Department of Food and Agriculture (CDFA) and the California State Board of Food and Agriculture released a plan entitled Ag Vision for the Next Decade. While the focus was primarily on climate action, the document did speak to the need to enhance public understanding of agriculture and engage urban audiences.
In his commentary on this plan, Richard Smoley, contributing editor for Blue Book Services, offered the following analysis: “I do not see that the leadership of California agriculture has matured a great deal on this issue than when I started to cover the field 40 years ago.” In other words, Smoley believes our industry is no better at telling its story to the public than we were in the early 1980s. Having spent a good part of my pre-Western Growers career in various communications roles, I respectfully disagree. More than seven years ago, Western Growers embarked on a long-term strategy aimed at informing and persuading urban populations and, over time, changing for the better the way their elected representatives view agriculture and public policy. Since then, we have been steadily making inroads with urban audiences, sharing our members’ stories with millions of voters in California and Arizona, and beyond. Don’t get me wrong. This is not a “mission accomplished” moment. Far from it. But we are making real progress and building a strong foundation for an even broader and increasingly effective platform that can connect and convince people who would otherwise hear only the falsehoods propagated by special interests aligned against agriculture. Much of this work revolves around social media. Our Facebook page, which has grown to nearly 75,000 followers, has reached more than 38 million people over the last three years with photos, videos and infographics designed to project a realistic and authentic image of our members and the industry. Popular subject matter has included stories about technology, farm labor and good old-fashioned harvest tools. (It appears our urban brothers and sisters love knives!) Importantly, we’re not just talking to ourselves in an echo chamber. In the early years, most of our Facebook followers predictably came from agricultural regions like Salinas, Fresno, Bakersfield and Santa Maria. Today, due to a combination of viral reach and boosting our message via paid geographic targeting, our top city for followers is Los Angeles, with the major metropolitan areas of Phoenix, San Diego and Sacramento all ranking in the top seven. The numbers are even more staggering on the traditional media front. This year, through the end of July, print, digital, radio and television coverage
of Western Growers and our members have reached a potential audience of more than seven billion (yes, with a “b”). At first, this number may seem unfathomable, ludicrous even. But think of all the people reading news online, watching TV, or listening to radio or podcasts every single waking hour of every day. Interestingly, the default habit of scrolling through a phone has given us a great deal of opportunity to tell the story of agriculture to people who may otherwise only encounter fresh produce at their grocery store. Let me wrap up with this. In his critique of what he calls agriculture’s “half century of public relations failures,” Smoley articulates this point that merits some pause: “A good swath of the public views California agriculture as exploitative and indifferent to the consequences of its own actions,” especially when it comes to the topics of labor and the environment. If we accept that this perception exists, how do we best get our messages in front of urban audiences, whether on social media or through major news outlets like The New York Times, USA Today, NPR or PBS? The secret is you. Our members are our best messengers. Public opinion surveys consistently demonstrate that Americans have an extremely high level of trust in farmers. And the best way to get mainstream news organizations to present an accurate, dynamic portrait of the work we do is to let them visit your operations and see them firsthand. Certainly, an interview with the press via e-mail, phone or Zoom is fine, but the truth of the ag industry cannot be fully realized until a reporter gets their boots dirty. I am confident that any reporter who spends any amount of time with any of our members will walk away with a new and compelling appreciation for the hard work we do, the care with which we do it and the good that flows from our farms to our communities, states and nation. My team and I know very well that it takes guts to put yourself and your farm out there like that. But we have your back. We have an extraordinarily talented communications team that will work with reporters and provide you with media training and other preparations ahead of a media farm tour. The lessons from these in-person discoveries are the most effective way to share the truths of our industry with the vast urban audiences that elect most legislators. Together, we can set a new course for how the public perceives agriculture.
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The Union Has Submitted Proof of Majority Support (Card Check). Now What Do You Do? By Jason Resnick, Senior Vice President and General Counsel
When Gov. Gavin Newsom signed AB 113 into law on May 15, 2023, AB 2183 was immediately amended and the new law went into effect. Gone is the “Labor Peace Compact” and the promise of mail-in ballot elections—a Hobson’s choice no employer signed up for. It retains the card check provisions under the new moniker—“Majority Support Petition.” Untouched are the onerous penalties of $10,000 for each unfair labor practices charge and up to $25,000 for cases involving retaliation or discrimination. The bond requirements, the presumption that any adverse employment action taken against an employee was retaliatory, which can only be overcome by “clear, convincing and overwhelming” evidence, and personal liability for directors and officers of the employer are still in there. So, what happens if the union presents a Majority Support Petition to the Agricultural Labor Relations Board (ALRB)? You better find out now, because you will have only 48 hours to respond. 48 Hours…Starting Now! Labor Code Section 1156.37 outlines the obligations organization. Employers should not wait until they are served with a Majority Support Petition to gather and organize this information. Agricultural employers should be gathering and updating their employees’
of employers after receiving a Majority Support Petition from a qualified labor organization seeking to represent a group of agricultural employees, called a bargaining unit. Within 48 hours of being served with the petition, the employer must provide a comprehensive and accurate list of currently employed employees in the bargaining unit. The list should include the full names, current street addresses, telephone numbers, job classifications and crew or department of each employee. Additionally, the employer must organize this information into separate columns, both in hard copy and electronic format, and submit it to the labor board and the petitioning labor
contact information on a regular basis, at least seasonally. If the employee does not have a regular current street address, they should describe where they are residing with reasonable accuracy. Defining the Bargaining Unit The crucial question that arises in this context is what is the “bargaining unit”? The answer is not straightforward. When a union files a majority support petition, it must describe the bargaining unit it seeks to represent. This description may or may not be limited
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WESTERN GROWERS OFFICERS – 2023 ALBERT KECK, Chair STUART WOOLF, Vice Chair NEILL CALLIS, Treasurer DON CAMERON, Executive Secretary DAVE PUGLIA, President & CEO DIRECTORS – 2023 GEORGE J. ADAM Innovative Produce, Santa Maria, California CRAIG ALAMEDA Topflavor Farms Inc, Salinas, California ALEXANDRA ALLEN Main Street Produce, Santa Maria, California CHAD AMARAL D’Arrigo Bros Co of California, Salinas, California KEVIN S. ANDREW Illume Agriculture, Bakersfield, California ROBERT K. BARKLEY Barkley Ag Enterprises LLP, Yuma, Arizona STEPHEN J. BARNARD Mission Produce, Inc., Oxnard, California BARDIN E. BENGARD Bengard Ranch, Salinas, California BRIAN BERTELSEN Cove Ranch Management, Reedley, California GEORGE BOSKOVICH III Boskovich Farms, Oxnard, California RODNEY BRAGA Braga Ranch, Soledad, California NEILL CALLIS Turlock Fruit Company, Turlock, California DON CAMERON Terranova Ranch, Inc., Helm, California EDWIN A. CAMP D. M. Camp & Sons, Bakersfield, California CAROL CHANDLER Chandler Farms LP, Selma, California LAWRENCE W. COX Lawrence Cox Ranches, Brawley, California STEPHEN F. DANNA Danna Farms, Inc., Yuba City, California THOMAS DEARDORFF II Deardorff Family Farms, Oxnard, California TIMOTHY ESCAMILLA Bolthouse Farms, Bakersfield, California CATHERINE A. FANUCCHI Tri-Fanucchi Farms Inc., Bakersfield, California DAVID L. GILL Rio Farms, King City, California ROBERT GIRAGOSIAN Kern Ridge Growers, LLC, Arvin, California BRANDON A. GRIMM Grimmway Farms, Arvin, California JOHN JACKSON Beachside Produce, LLC, Nipomo, California A. G. KAWAMURA Orange County Produce, LLC, Fullerton, California ALBERT KECK Hadley Date Gardens, Thermal, California J.P. LABRUCHERIE LaBrucherie Produce, El Centro, California STEPHEN MARTORI III Martori Farms, Scottsdale, Arizona HAROLD MCCLARTY HMC Farms, Kingsburg, California TOM MULHOLLAND Mulholland Citrus, Orange Cove, California DOMINIC J. MUZZI, JR. Muzzi Family Farms, LLC, Moss Landing, California THOMAS M. NUNES The Nunes Company, Inc., Salinas, California STEPHEN F. PATRICIO Westside Produce, Firebaugh, California JOHN POWELL JR. Peter Rabbit Farms, Coachella, California RON RATTO Ratto Bros. Inc., Modesto, California CRAIG A. READE Bonipak Produce, Inc., Santa Maria, California ERIC T. REITER Reiter Affiliated Companies, Oxnard, California KYLE RICHARDSON Garry Richardson Farms, Bakersfield, California JOSEPH A. RODRIGUEZ The Growers Company, Inc., Somerton, Arizona BRUCE TALBOTT Talbott’s Mountain Gold, LLP, Palisade, Colorado RYAN TALLEY Talley Farms, Arroyo Grande, California BRUCE C. TAYLOR Taylor Farms California, Salinas, California JACK VESSEY Vessey and Company Inc, Holtville, California MIKE WAY Prime Time International, Coachella, California STUART WOOLF Woolf Farming & Processing, Fresno, California ROB YRACEBURU Wonderful Orchards, Shafter, California
to harvest crew workers or a particular location, as unions can choose to define the unit based on their strategic considerations. The larger the bargaining unit, the more challenging it is for the union to obtain majority support, which may lead the union to limit the unit to harvest workers or a single location. Eligibility of Employees in the Bargaining Unit Not all employees fall within the scope of the petition for representation. Only “agricultural employees” are eligible to be represented under the Agricultural Labor Relations Act (ALRA). The ALRA defines “agricultural employee” as an individual engaged in agriculture, and it excludes employees covered by the National Labor Relations Board (NLRB)—which includes private employees not involved in “agriculture.” The definition of “agriculture” under the ALRA includes various agricultural and horticultural activities, livestock and poultry raising, forestry or lumbering operations related to farming and more. Based on this definition, clerical and management staff are generally excluded from the bargaining unit. However, certain positions, such as cooler workers, crew foremen, quality control, sanitization and food safety personnel, may or may not be considered agricultural employees, depending on their specific duties and authority. Exclusions from the Bargaining Unit Certain categories of employees are ineligible to be represented by the union.
These include supervisors with actual supervisorial authority (e.g., the power to hire, fire, impose discipline), guards, managerial employees, family members of the employer and substantial stockholders in closely held corporations. Understanding the Regulations The ALRB’s regulatory framework complements the Labor Code provisions and provides further guidance on the certification process and related matters. AB 113 regulations have been proposed but not yet implemented. Those interested in exploring the comprehensive regulatory scheme can find it on the ALRB website. Conclusion Labor Code Section 1156.37 outlines the employer’s responsibilities in providing to the union employee information during the certification process. Employers should be gathering and organizing their employees’ information now, including from their farm labor contractors, and not wait until served with a petition. As we anticipate unions taking advantage of their long sought-after new weapon— card check—it is essential to ensure management’s compliance with the ALRA in order to avoid onerous penalties. If you do get served with a Majority Support Petition, avoid taking adverse action against any employees without seeking legal advice. And don’t hesitate to contact Western Growers or your labor attorney immediately, because the 48-hour clock is ticking, and you want to give your counsel maximum time to assist in the process.
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The Importance of Science in Advocacy By Matthew Allen, Vice President, State Government Affairs Scientific principles are not just important for doctors and researchers, they are also critically important—or should be—for California policymakers and the decisions that they are involved in creating. I spend a great portion of my day reading through bills to determine whether or not the provisions will have an impact, positive or negative, on Western Growers members. I’m fascinated by those legislative ideas that make profound changes to how employers, employees and consumers engage in
the California marketplace based upon “science.” You see, legislation doesn’t need to be based upon any real science in order for it to be introduced and passed by the California Legislature and Gov. Gavin Newsom. This can be quite troublesome because facts are not needed to show necessity for the bill. In truth, facts are often intentionally ignored! In addition, passage of the bill may even lead to unintended and unforeseen consequences. It is for these reasons that decisions that require scientific rigor and a full review of the scientific record are best left at the appropriate regulatory agency level. This isn’t to say that rulemaking at the agency level is easy or that we always get realistic or feasible outcomes; we often don’t. However, science is not as easily ignored. A great example of this came about in 2005 following conversation at the legislative level for an outdoor heat illness prevention program to be put in place for all outdoor employees; specially focused on protection for farmworkers. WG was the main lead, along with other key industry allies, in moving that conversation to Cal/OSHA, where all stakeholders could voice their opinions, concerns, support, etc. to division staff who utilized sound science to determine the best methods to protect outdoor workers from heat illness. While the heat illness prevention standard passed by Cal/OSHA in 2005 was not perfect, it relied on human biology, workplace operations and economic considerations to operationalize an effective program that could be understood and adhered to by employers and employees. Left up to the Legislature, the mandate of this program would have been a top-down approach
telling employers to implement this program in a specific way without considering the scientific facts about whether it would actually safeguard employees. WG and other industry allies are having similar conversations around California’s crop protection policy. We have seen bills over the past several years that have aimed to prohibit or add unreasonable restrictions (a de facto prohibition) on specific pesticides. These types of bills are very challenging to defeat because bill sponsors and legislators often are not concerned about the science. Passage of the bill just “feels” like the right thing to do. There hasn't been enough focus on serious consideration of opportunity costs. These costs could be the inability to grow a specific commodity in California, increased pest and disease pressure and fewer produce choices for consumers. It is important that scientific decisions on these products be left at the California Department of Pesticide Regulation (DPR) where scientists review active ingredients and ensure that approved products are safe for use per the label. This role at DPR is only going to become more vital as the state begins to focus on reviewing and registering alternatives to the existing crop protection toolbox. I am not a scientist nor do I play one at the Capitol. My role is to help identify those policy areas that require scientific input and to advocate for that conversation to take place within the appropriate forum. At the end of the day two plus two is not five, six or ten. It’s still four. No amount of “feeling” changes that fact.
We have seen bills over the past several years that have aimed to prohibit or add unreasonable restrictions (a de facto prohibition) on specific pesticides. These types of bills are very challenging to defeat because bill sponsors and legislators often are not concerned about the science. Passage of the bill just “feels” like the right thing to do.
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Sustainable Pest Management is Here. What’s Next? By Jeana Cadby, Environment and Climate Director By now, you have probably heard about the Sustainable Pest Management (SPM) Roadmap, but in case you’ve been busy, here is a recap: The SPM Roadmap was released in January 2023 and lays out a framework to eliminate and/or significantly reduce the use of pesticides in California by 2050 and extends ongoing efforts to decrease pesticide use throughout the state. and practical characteristics with sustainable
The roadmap leverages a great deal of stakeholder buy-in and calls on the state of California to “develop a plan, funding mechanisms, and programs to prioritize pesticides for reduction, and to support the practice change necessary to transition away from the use of high-risk pesticides” by 2025. Considering the trajectory of regulatory and public interests for pesticides in California, this type of call to action may not be a shock to all. However, given the time and investments required to find or develop effective replacement products and technologies, it is critical that opportunities and actions to address pest control needs are identified and advanced, and soon. What does this mean for growers? Many growers have seen similar outcomes when California became one of the first states to ban the use of chlorpyrifos in 2019. A transition away from any widely used pesticide will require significant extension and training efforts, including Pest Control Advisor (PCA) involvement. With any new product or technology, knowledge gaps and unique application requirements will carry a steep learning curve and trial and error process. Major Keystone Actions of the SPM Roadmap will include prevention and pest exclusion, investing in SPM knowledge and improving DPR’s product registration review process, among other items. We can also expect to see more alignment with PCAs and market development for SPM-grown products. Pardon my IPM The roadmap indicates that SPM goes a step further than Integrated Pest Management (IPM) by “intentionally looking at the interconnectedness of pest pressures, ecosystem health, and human well- being.” Growers are already familiar with the concepts of IPM, which share many philosophical, ecological
agriculture. However, a major emphasis of the SPM Roadmap still relies on finding effective alternative products to Priority Pesticides. There are potentially missed opportunities to invest in advancing plant breeding work, field-deployed technologies and expanding on existing IPM strategies. Critical Cruces In terms of the Priority Pesticides that will be eliminated in the transition to SPM, the selection process will be conducted by DPR under advisement of a multistakeholder Sustainable Pest Management Priorities Advisory Committee. Availability of effective alternatives will be included in these considerations. With that said, the catalog of pest and disease pressures is not static, and the tenacity of climate change certainly will impose unexpected and increased pest and disease pressure. The process to identify, validate, and register potential alternative products, technologies and strategies will not be quick. However, as all growers know, a ship in harbor is safe, but that is not what ships are built for. Despite the uncertainties of what is to come, our industry will remain resilient and do what it can to anticipate and take initiative. As we continue to navigate these waters, our team at Western Growers will be gathering critical, timely information about tools that are most critical for growers and key pest and disease pressures. We encourage our growers to take note of significant needs, gaps and anticipated concerns as we move forward in this process so we can more effectively serve and advocate for and better support our farmers to continue to be the most valuable stewards of our planet.
Adult Diamondback Moth (IPM)
Fusarium rot on pumpkins (IPM)
Caterpillar feeding damage (IPM)
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Advertorial 2023 Clean Energy Thoughts … From a WGA Innovation Center Pioneer Repeat Message… Don’t Miss This!
by Elliot Jaramillo www.ConceptCleanEnergy.com
In August of 2022, Congress passed the Inflation Recovery Act (“IRA”) of 2022. Over the next 10 years, the IRA Act will allocate approximately $369 Billion Dollars to “Energy Security and Climate Change.” A primary goal of this legislation is to increase clean energy production and
reduce carbon emissions roughly 40% by 2030. By any measure, $369,000,000,000 is a substantial amount of money. The unprecedented opportunity for Western Growers ’ members is that, unlike so many other legislative bills, where large government investments have been earmarked for special interests or otherwise accessible to only select (large) corporations, the capital allocated by this IRA legislation is funded primarily in the form of simple to understand and simple to utilize Investment Tax Credits. This means that these IRA funds are fully accessible to any person or company, large or small, willing to make an investment in qualifying clean energy, which includes solar assets. Prior to the passage of this Inflation Recovery Act, Federal tax credits for solar energy were scheduled to be reduced to 22% in 2023, then further step down to just 10% in 2024. Large utility companies, such as PG&E, were banking on this funding reduction in hopes of further slowing down the development of investor-owned clean energy. With the passage of the IRA, however, the Federal Government has increased the Investment Tax Credit to 30% for the next 10 years (+) plus a 10% BONUS tax credit for projects that utilize American products and meet certain domestic manufacturing guidelines. This means qualifying solar energy projects can now earn a whopping 40% Federal Tax Credit. To be clear, unlike a tax deduction, this Federal Investment Tax Credit (“ITC”) is a direct dollar-for- dollar reduction in project cost. As part of the IRA, the Federal Government has also made it simpler to allocate these valuable tax credits to the entities or individuals within a company or farming operation who may need them most. The new IRA40% Investment Tax Credit provides WGA taxpayers with an unprecedented opportunity to leverage smart, proactive investment and tax planning to drastically reduce Federal liabilities over the next decade.
For our product, this 40% Federal Tax Credit is a game-changer. Over the past six years of being a WGA Innovation Center company, our team has worked closely with leading WGA members to develop an exciting product that is now being rolled out nationally in partnership with Nucor steel, the largest steel company in the USA. Our product, PowerShingle ® , solves a major industry challenge, enabling us to build solar installations in the form of highly useful elevated canopies and provide massive amounts of reliable, low-cost clean energy, all without taking any land out of production. Yes… solar energy is a fantastic resource. But today’s solar installations often require large swaths of land to produce meaningful amounts of electricity. PowerShingle ® , on the other hand, can generate 1MW of clean power (enough to run an efficient cooler operation) in as little as 1.5 acres. It can also be scaled to provide power for many off-grid and remote farming operations where traditional grid power would simply be too costly. By combining Nucor’s pre-engineered metal building expertise with PowerShingle’s cutting edge solar technology, we are able to deploy large installations and design solutions to meet your operations and provide multiple benefits of shade, shelter, storage and clean power for virtually any farming operations. PowerShingle ® is proudly 100% manufactured in America and can help WGA members meet Inflation Reduction Act guidelines while providing an elegant, beautiful solution that will enhance virtually any farming operation. ------ Elliot Jaramillo is the CEO of Concept Clean Energy and nearly a decade long WGA member. Elliot loves talking with WGA farmers about energy challenges. For more info, or to reach out to Elliot directly, feel free to call or email him at: (510) 813-0935 / elliot@conceptcleanenergy.com
What Human Resource Leaders in Agriculture Need to Know About the Coming Wave of Medicaid Disenrollments By Ed McClements , CLU, ChFC, and Jon Alexander , Esq. of Western Growers Association The Kaiser Family Foundation reports an estimated 5 million to 14 million Medicaid enrollees will, over the next 12 months, have their coverage disrupted or eliminated. In California and Arizona, this disenrollment process is just getting started and will affect well over a million people. If even just one of those disenrolled is employed by your firm and that person ends up being transferred to Covered California or the Federal Exchange to take advantage of the Affordable Care Act (ACA) Premium Tax Credit, it could trigger potentially significant IRS penalties for your company. How well prepared are you for an ACA compliance audit? states were told to resume normal Medicaid
Why are Medicaid enrollees losing coverage? Under the Families First Coronavirus Response Act (FFCRA), states were encouraged to expand their Medicaid programs (in California, we call it Medi-Cal and in Arizona it is sometimes referred to as AHCCCS). To ensure continuous enrollment throughout the COVID pandemic, FFCRA suspended the need to worry about income or status changes that typically impact eligibility. This lack of enforcement of eligibility criteria has allowed enrollment to swell. The Consolidated Appropriations Act of 2023 declared an official end to Medicaid’s “continuous enrollment provision.” Beginning April 1, 2023,
eligibility determinations—and begin to process subsequent disenrollments for those who failed to meet current rules. Why is that an issue for large ag employers? In both California and Arizona (and most other states), residents are eligible for Medicaid if they have household incomes of below 138 percent of the Federal Poverty Level (FPL). Workers with incomes between 138 percent-400 percent of FPL are eligible for federal subsidies called Premium Tax Credits (PTCs) if they purchase their coverage via Covered California or the Federal Exchange.
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California law requires the state to screen all individuals disenrolled from Medi-Cal for possible enrollment in the lowest-cost silver-tier plan available to that person on Covered California. If their income is less than 400 percent of the FPL, they will qualify for PTC subsidies to help pay for some, or all, of the silver plan’s premium. If a PTC is linked to an employee of your company, the IRS is supposed to compare the Tax Identification Number with W-2 and ACA 1095-C reporting data to determine whether an employer is subject to the ACA Large Employer rules and if the employer offered this person ACA compliant coverage. If those records are not sufficient to clarify the employer’s compliant offer of coverage, the IRS is directed to send a 226-J penalty letter indicating that the employer might be subject to an “Employer Shared Responsibility Payment” amounting to thousands, perhaps millions, of dollars. California began its re-evaluation of Medi-Cal beneficiaries’ eligibility (in
April 2023) for people who were enrolled effective June 1 st (of any prior year). Those who no longer qualify for coverage will be disenrolled from Medi-Cal, effective July 1, 2023. These recertifications continue each month until May 2024. What do HR professionals need to do to keep their employers safe? Applicable Large Employers (ALEs) must annually report to the IRS (and in California, also to the Franchise Tax Board), via the IRS 1095-C reporting form. There are penalties for not issuing a valid 1095-C to employees and a separate penalty for not filing a 1095-C with the IRS. If intentional disregard is alleged by the IRS, these penalties alone could be $1,180 per worker per year. Over and above the reporting and disclosure rules, if an ALE is found to have failed to offer Minimum Essential Coverage (MEC) to at least 95% of full-time employees, they could be subject to the 4980H(a) penalty, which is $240 per month ($2,880 annually) per employee in 2023.
If the employer did offer MEC but failed to offer coverage that qualified as “Affordable” and meaningful enough to be considered “Minimum Value” to any full- time employee that received a PTC in a given month, the 4908H(b) penalty could apply, which in 2023 is $360 per month ($4,320 annually). It is also important for HR professionals to know that ACA’s “Family Glitch” was fixed in 2023. Instead of basing the affordability determination for a family’s employer-sponsored health insurance on just the cost to cover the employee, the determination will now be made based on the cost to cover the employee plus family members, if applicable. This definition of affordability only applies in terms of the family’s eligibility for the PTC. It does not impact the IRS safe harbor rules for affordable offers of coverage. Should you have questions about any ACA compliance issues, Western Growers Insurance Services is here to assist.
THE BEST WAY TO MANAGE PATHOGENS BEFORE THEY BECOME AN ISSUE.
When targeting soil borne disease and nematodes, TriClor and TELONE TM can be applied in a single pass. This reduces application costs, promotes early root development, and improves soil health. For more information about TriClor and TELONE TM or to schedule an application contact TriCal, Inc.
669-327-5076 www.TriCal.com
*TriClor and TEONE TM are federally Restricted Use Pesticides.
SEPTEMBER | OCTOBER 2023
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Western Grower & Shipper | www.wga.com
Employers, Are You Ready for Open Enrollment? By Michelle Rivera, Communications Manager Open enrollment is right around the corner, and unfortunately for most U.S. adults, this can bring about a level of anxiety that rivals the process of moving to a new home or starting a new job. But does open enrollment need to be an annual headache? Certainly not. It’s important for employers to streamline the process for everyone involved—and that starts with making sure employees understand their available options and educating them about how they can get the most value for their health benefits.
A 2022 Health Insurance Knowledge Snapshot commissioned by Justworks and conducted by Harris Poll found that more than half of U.S. adults don’t feel they’re getting the most out of their health insurance, and similarly, more than half don’t know the full scope of what their current health insurance offers them. As employers, it’s important to help employees understand the full scope of their benefits, and what better time to do this than open enrollment? We’ve come up with a few ways to help facilitate this process and communicate benefits information more effectively. 1. Use open enrollment as a time to engage in meaningful interactions with employees. The Health Insurance Knowledge Snapshot survey found that an estimated 44 percent of employed U.S. adults say they don’t feel comfortable asking their HR representatives questions about health insurance enrollment. Open enrollment shouldn’t be just a process that is necessary every year; it can be an opportunity to provide your employees with additional information about your company and solicit helpful feedback along the way. Try incorporating useful information in your employee packets that will encourage employees to provide suggestions and feel comfortable asking general questions about their benefits, your organization and available resources. Improving lines of communication between employer and employee can lead to increased employee satisfaction, improved retention and even enhanced productivity. 2. According to a national survey from financial service provider Primerica earlier this year, rising health care costs have become a top concern among middle-income American households for the first time since 2021, outpacing inflation. Without minimizing these concerns, focus on showing employees the value of their benefits. You may want to consider including a breakdown of what benefits really cost you as an employer versus the smaller percentage paid by the employee. Providing this type of transparency can help employees view your organization more favorably.
3. When it comes to health insurance, different stages in life call for different ways to approach how employees select their benefits. As employees enter different phases in their lives, a plan that might have worked for them in their 20s may not necessarily be a plan that would work for them in their 30s or 40s. During the enrollment process, consider providing some information about what types of benefits might work best for different stages of your employees’ lives, and give examples. You can compare benefit plans for young singles, couples with children, couples with no children as well as employees who are nearing their retirement. Employees will also need to assess other factors, including lifestyle and existing medical history. It’s important to remind them that there’s no one-size-fits-all solution that can be applied to health benefits. 4. Lastly, it’s important to offer continued support to your employees throughout the year. Make sure to consistently share, update and distribute benefits information year-round and not just during the open enrollment or onboarding process. Simple reminders can go a long way; consider sending out communications materials that highlight the benefits of getting an influenza shot during peak flu season, where they can go to get their vaccinations and ways they can keep themselves as healthy as possible to prevent health-related complications. Take advantage of all communications channels available to you, such as company newsletters, office bulletin boards, social media, emails, direct mail stuffers and in-person meetings. WGAT is more than just a health plan. We’re committed to building relationships with employers and establishing trust with our plan participants, and that includes on-site support and health benefits education. If you’re interested in a WGAT plan, contact Western Growers Insurance Services for more information at (800) 333-4WGA.
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Western Grower & Shipper | www.wga.com
I grew with
Joe Pezzini Class 28 Senior director of ag operations for Taylor Farms
“My Ag Leadership experience gave me the skills, confidence, sense of purpose and awareness to lead through a food safety crisis and help improve the produce industry. “It’s crucial that we continue cultivating new leaders who can and will successfully take on the increasingly difficult challenges facing agriculture and beyond. It’s going to take our collective leadership skills to navigate complex issues and tasks. “The Ag Leadership Program is the best way to acquire those skills to make California agriculture sustainable in an uncertain future.”
Since 1970, more than 1,400 California Agricultural Leadership Program fellows have become lifelong leaders who individually and collectively act as a catalyst for a vibrant agricultural community and make a significant difference in the agricultural industry, their businesses, communities and families.
Read Joe’s full testimonial and learn more about Ag Leadership opportunities, our alumni and fellows at agleaders.org .
SEPTEMBER | OCTOBER 2023
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Western Grower & Shipper | www.wga.com
Don’t Let Your Unused FSA Dollars Go to Waste By Michelle Rivera, Communications Manager Health care can be quite expensive, and that’s not even accounting for any unplanned health care costs that can arise during your plan year. But the good news is that if you have a Flexible Savings Account (FSA) or Health Savings Account (HSA), you’ve already given yourself a safety net to catch some of those extra expenses that fall beyond your control.
It’s important to keep in mind that unlike an HSA account, which sees your funds roll over from year to year, your FSA funds must be spent within the plan year by Dec. 31, or within your employer’s grace period. If you don’t spend the funds in your FSA account by the deadline, then you risk forfeiting the remainder of your balance. In other words, FSA funds have a “use it or lose it” policy. So what kind of expenses do your FSA funds cover? Typically, you can use your FSA funds to pay for common health care expenses, and these include prescription medications, copays and medical supplies. But there are a lot of other approved products and services—also called qualified medical expenses—that you can purchase with your remaining FSA balance. As we approach the final quarter of the year, it’s important to check your remaining balance in your FSA account so you don’t end up forfeiting those funds. We’ve listed a few qualified expenses for you to consider. Over-the-counter (OTC) medications. Now would be a good time to stock up on or restock your medicine cabinets. You can use the money in your FSA account for OTC medications, including antacids, pain relievers, heartburn medications and more. Previously, most of these medications required a prescription to be FSA-eligible. Fortunately, the over-the-counter prescription requirement was repealed with the passage of the CARES Act in March 2020, making over-the- counter medicines fully eligible, with no restrictions for FSA or HSA account holders. At-home medical supplies. Consider stocking up on any at-home medical supplies you need for your home, including bandages, ointments, first aid kits, eczema creams, alcohol wipes and anything else that can help you care for minor medical issues you can easily treat at home. These items also apply to thermometers, heating pads, ice packs, compression socks and joint braces. Skincare products. Are you using any over-the- counter acne creams, serums, moisturizers, cleansing wipes or toners? You can use your FSA funds to cover these expenses. You can even use your funds on sunscreen with an SPF of 15 or higher. Eyeglasses and contacts. Is it time for an eye exam? Or maybe you’ve been considering a pair of prescription sunglasses? Call up your optometrist and
schedule an appointment. If you’ve been eyeing a pair of designer frames but didn’t want to break the bank, this would be a good time to put your funds toward an upgrade. You can also use your FSA funds to purchase contact lens solution and non-prescription reading glasses. And as a reminder for those who have a High Deductible Health Plan (HDHP) and utilize a HSA, the Internal Revenue Service (IRS) has announced that in 2024, you can contribute up to $4,150 (up from $3,850 in 2023) for single coverage, and up to $8,300 (up from $7,750 in 2023) for family coverage. Employees who are 55 and older can contribute an additional $1,000 as a catch-up contribution. Only employees who have a high deductible health insurance plan can open an HSA. If you’re still looking for ways to spend your unused FSA funds, you can visit the FSA Store, which offers more than 4,500 items that are FSA eligible: fsastore.com. For those with a HSA account, you can visit the HSA store for a comprehensive list of eligible items here: hsastore.com. There are also a number of retailers that will conveniently let you know if an item is FSA- or HSA-eligible when you shop online.
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SEPTEMBER | OCTOBER 2023
Western Grower & Shipper | www.wga.com
FINANCING THE NEXT GENERATION IS MORE THAN OUR BUSINESS.
IT’S OUR MISSION.
American AgCredit is dedicated to serving the credit needs of young, beginning, and small producers. Along with unsurpassed expertise, we oer alternate financing and guarantee options for those who may not qualify under our normal lending requirements.
We’re building the future of agriculture alongside those who want to be part of it.
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Your future grows here
A Part of the Farm Credit System.
Equal Opportunity Lender.
Innovation Funnels How we can manage and measure progress from the R&D front end to the commercialization and scale back end. By Walt Duflock, Senior Vice President, Innovation The Western Growers Innovation team remains focused on our three big initiatives: automation (to help address labor cost and availability challenges), biological solutions (to help address input regulatory and efficacy challenges) and increased availability of agtech-enabled workers (to help operate all the new automation and biological solutions). As we continue working with education, industry and elected- official partners, it is becoming apparent that taking a holistic view of the entire innovation process is required to really try and accelerate activity. Specifically, we want to build innovation funnels with key metrics measured regularly so we can identify challenge areas and see where things need to get better.
The main reason for this is that WG remains focused on the later stage of commercialization efforts, including grower discovery calls and feedback, field trials and case studies. From a systems perspective, this is the back end of a funnel that starts at the earliest stages with R&D, frequently on a university campus, and for specialty crops, routinely at a UC or CSU Ag Department with a student team and professor involved. Over the next few months, our team will be working with our partners to put together some dashboards that can represent the funnel for our key initiatives. The funnel begins with R&D—how many R&D efforts are there that are officially recognized and beginning to move toward a real 1.0 product. To start, we will capture the metrics only at UC and CSU to keep the dashboard focused and manageable. The next step is MVP—how many R&D teams have actually gotten to a minimum viable product. There would be significant fall off at this step as many teams would stay in the R&D portion of the funnel (top or first portion) for several months through design and early prototyping. After that, how many teams are able to get IP (intellectual property) protected and then generate a license to get the IP in the hands of a real startup that gets the idea up and running off campus. Again, each step would have a significant drop off in number. Once the startup is formed, how many get to phase 1 of product field trials—does it do what it is supposed to do and does it not have any unintended harms/ consequences? Onto phase 2—how many can do this in a repeatable fashion (i.e., does it work as expected most or all of the time?). And then on to phase 3— trials in a real commercial-scale grower operation that prove the product can work as advertised and do so with a business model and pricing strategy that fit with grower economic requirements. The first step will be to develop the funnel and get feedback from industry and innovators to make sure we can agree on how and what to capture. The second step
will be to begin to capture this data on a regular basis and watch the changes from report to report. For starters, we will target quarterly updates and develop a way to measure absolute numbers and quarter-on- quarter (QoQ) incremental changes on key metrics. It’s clear that this will deliver a lot of value for the agtech ecosystem. It’s not yet clear how much work this will take initially and ongoing. As with so many things, the best way to find out is to start doing the work, then figure out what the real workload is likely to be once we’ve done the first couple of iterations. The initial funnel work will be in automation, then biologicals and then next-gen ag worker. All three support a system design approach, and the funnel (likely in the form of an infographic) will be a great first step in looking at the innovation picture for both of these key areas all the way through from the earliest stages to scale out and in fields.
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Western Grower & Shipper | www.wga.com
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