Pacific Nut Producer Magazine

Category: Laws & Regulations

  • USDA Announces Details of Direct Assistance to Farmers

    U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.

    “America’s farming community is facing an unprecedented situation as our nation tackles the coronavirus. President Trump has authorized USDA to ensure our patriotic farmers, ranchers, and producers are supported and we are moving quickly to open applications to get payments out the door and into the pockets of farmers,” said Secretary Perdue. “These payments will help keep farmers afloat while market demand returns as our nation reopens and recovers. America’s farmers are resilient and will get through this challenge just like they always do with faith, hard work, and determination.”

    Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.

    Background:

    CFAP provides vital financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

    Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.

    Non-Specialty Crops and Wool

    Non-specialty crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates.

    Livestock

    Livestock eligible for CFAP include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between January 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head.

    Dairy

    For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020 multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter.

    Specialty Crops

    For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.

    Eligibility

    There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

    Applying for Assistance

    Producers can apply for assistance beginning on May 26, 2020. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through August 28, 2020.

    Payment Structure

    To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.

    USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

  • USDA-NASS Predicts Third Straight Record-Breaking Almond Crop

    The U.S. Department of Agriculture (USDA) National Agricultural Statistics Service (NASS) is predicting a record California almond crop for the third straight year. The USDA-NASS 2020 California Almond Subjective Forecast estimates California almond orchards will produce 3.0 billion pounds of nuts this year, up 17.6 percent from last year’s 2.55 billion-pound crop. Forecasted yield is expected to reach 2,380 pounds per acre, 10.2 percent greater than the 2019 yield of 2,160 per acre.

    This forecast comes about three weeks after USDA-NASS released the 2019 California Almond Acreage Report, which estimated total almond acreage for 2019 up 10 percent from 2018 at 1.53 million acres. Bearing acres – orchards mature enough to produce a crop – were reported at 1.18 million acres, up 8 percent from the previous year. USDA-NASS also estimated preliminary bearing acreage for 2020 at 1.26 million acres.

    “Almond acreage and production continue to increase as California almond growers further invest in precision agriculture and responsible best practices,” said Almond Board of California (ABC) President and CEO Richard Waycott. “Through the industry’s advancements in water use efficiency to environmentally friendly pest management, zero waste efforts in the orchard and beyond, almond growers are committed to achieving our Almond Orchard 2025 Goals and the realization of the California almond orchard of the future.”

    The first of two production reports for the upcoming crop year, the Subjective Forecast is based on opinions obtained from randomly selected almond growers located throughout the state via a phone survey, this year conducted from April 20 to May 6. USDA-NASS asks individual growers to indicate their total almond yield per acre from last year and expected yield for the current year based on field observations. The sample of growers interviewed is grouped by size of operation, and different individuals are interviewed each year to ensure grower representation throughout the Central Valley. USDA-NASS then combines the yield estimates obtained from each grower and extrapolates the information to arrive at the numbers reported in the Subjective Forecast.

    This July, USDA-NASS will release its second production estimate, the 2020 California Almond Objective Report. While the Subjective Forecast provides an initial estimate of the 2020/2021 crop, the Objective Report will provide an estimate based on actual almond counts that uses a more statistically rigorous methodology to determine yield. In Dec. 2019, ABC’s Board of Directors approved a strategic approach to further improve the accuracy of USDA-NASS’s reporting. From 2020 on, the Objective Report will include measurements from 1,000 target orchards throughout the state (an increase of 150 samples from 2019) and provide nut counts on not one but two branches per tree. The Objective Report will also provide the weight, size and grade of the average almond sample broken down by growing region – no longer growing district – and variety.

    The 2020 California Almond Objective Report will be released on Tuesday, July 7, at 12:00 p.m. PT. USDA-NASS conducts the Objective Report, the Subjective Forecast and the Acreage Report to provide the California almond industry with the data needed to make informed business decisions, and thanks all farm operators, owners and management entities for their time in providing the information necessary to create these reports. — Article & Photo Courtesy of Almond Board of California

  • COVID-19 Impacts on Food Supply Chain (May 12 Zoom Call)

    Why is milk being dumped and produce left to rot in fields while grocery store shelves go empty during the COVID-19 pandemic? Why are grocery stores running out of meat, and eggs becoming so expensive?

    The head of California’s Department of Food and Agriculture, researchers from the University of California, Davis, and food purveyors will tackle these and other questions in an online panel discussion at 5 p.m. Tuesday, May 12.

    UC Davis invites the public to attend “Food Shortages in a Pandemic” over the web through Zoom conferencing. To do so, register online at least 48 hours in advance.

    The 90-minute event, which will include a question-and-answer period with the Zoom audience, will feature:

    • Karen Ross, secretary of the California Department of Food and Agriculture since 2011
    • Dan Sumner, director of the UC Agricultural Issues Center, professor of agricultural and resource economics at UC Davis, and former assistant secretary for economics at the U.S. Department of Agriculture
    • Bu Nygrens, co-owner and director of purchasing at Veritable Vegetable of San Francisco, which distributes organic produce from more than 200 small and mid-size growers to restaurants, markets and co-ops across five states
    • Chelsea Minor, corporate director of public affairs for Raley’s Supermarkets of West Sacramento, a regional grocery chain in Northern California and Nevada

    Moderating the event will be Catherine Brinkley, who, as an assistant professor in the Department of Human Ecology at UC Davis, studies the architecture of food supply networks. 

    The panel will discuss how the food supply chain works, why the COVID-19 pandemic has been so disruptive, how distributors and supply chains are adapting to serve restaurants and grocery stores, and whether changes can or should be made to make food systems more resilient.

    The lecture is the third in the Savor series, which explores some of the biggest food and beverage topics being studied today at UC Davis — a world leader in the study of agriculture. The series is presented by the Robert Mondavi Institute for Wine and Food Science and the UC Davis Library.

    – By Jessica Nusbaum and Julia Ann Easley, UC Davis

  • Pacific Nut Producer May Issue

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    Contents of the May Issue:

    Bellareese Farms Excels with Innovations
    Science and Skill Lead to Successful Farming
    American Pistachio Conference Brings Pride
    Health Studies Verify Pistachios are a Super-Food
    California Almond Acreage Increases in 2019
    Almond Board Plans for Future Record Production
    Orchard Tasks
    Almonds, Hazelnuts, Macadamias, Pecans, Pistachios, Walnuts

    [/three_fifth_last]

  • Almond Board of California 2020 Election Underway

    Voting will begin April 29 to select one independent grower member and alternate position and two independent handler member and alternate positions on the Almond Board of California (ABC) Board of Directors. These positions will serve terms beginning on August 1, 2020.

     

    Candidates for the independent grower position are:

    Position One, Member (One-year term):                         Position One, Alternate:

    Paul Ewing, Los Banos (petitioner)                                 Joe Gardiner, Earlimart (petitioner)

    Louie Ott, Modesto (petitioner)                                       Brad Klump, Escalon (petitioner)

    Mike Mason, Wasco (petitioner)

    Candidates for the independent handler positions are:

    Position One, Member (Three-year term):                       Position One, Alternate:

    Terry Boone, Modesto (petitioner)                                  Ron Fisher, Modesto (incumbent)

    Alexi Rodriguez, Caruthers (petitioner)

    Micah Zeff, Modesto (petitioner)

    Position Three, Member (One-year term):                       Position Three, Alternate:

    Jonathan Hoff, Denair (petitioner)                                   Chad DeRose, McFarland (petitioner)

    Darren Rigg, Le Grand (petitioner)                                  Dave Phippen, Manteca (petitioner)

    Ballots and instructions have been mailed to all independent growers whose names are on file with ABC. The Almond Board must receive ballots by May 27, 2020, for them to be counted. If an independent grower or a handler does not receive a ballot, one may be obtained by contacting ABC’s Bunnie Ibrahim, senior analyst, Government Affairs, at (209) 343-3228.

    As a governing body for the industry, the ABC Board of Directors is comprised of five handler and five grower representatives who set policy and recommend budgets in several major areas including production research, public relations and advertising, nutrition research, statistical reporting, quality control and food safety.

     

    About the Almond Board of California

    Almonds from California are a healthy, natural, wholesome and quality food. The Almond Board of California promotes almonds with a research-based approach to responsible farming, production and marketing on behalf of the more than 7,600 almond growers and processors in California, many of whom have third- and fourth-generation family operations. Established in 1950 and based in Modesto, California, the Almond Board of California is a non-profit organization that administers a grower-enacted Federal Marketing Order under the supervision of the United States Department of Agriculture. For more information on the Almond Board of California or almonds, visit Almonds.com or check out California Almonds on Facebook, Twitter, Instagram and the California Almonds blog.  – Article and photo courtesy of the Almond Board of California

  • House Approves, Trump Signs Coronavirus Stimulus into Law

    President Donald J. Trump today signed the “Coronavirus Aid, Relief and Economic Security Act” (CARES Act) into law with provisions to provide financially distressed consumers and small businesses greater access to business loans and bankruptcy relief. The legislative package, which quickly passed the House of Representatives on a voice vote earlier today and 96-0 in the Senate on Wednesday, provides a $2 trillion economic stimulus for U.S. industries and citizens faced with the challenges of the COVID-19 coronavirus.

    Upon passage of the stimulus package, Agricultural Retailers Association (ARA) President and CEO Daren Coppock shared, “We recognize that the health and safety of all people is a priority at this time. ARA is grateful that Congress is taking swift action to remedy the current situation in our country through passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  Ag retailers and their farmer customers, as always, are committed to continuing their businesses so that they can deliver the safe, healthy, and abundant food supply that is in demand now and required for the future.  We are pleased with the support that Congress has included for the agriculture industry in this bill, and encourage the president to sign it so that we can have certainty moving forward.”

    National Milk Producers Federation (NMPF) President and CEO Jim Mulhern offered the following statement:

    “We thank President Trump for quickly signing this measure into law. It will provide much-needed help to dairy producers, who are experiencing steep drops in milk and dairy-product prices due to the COVID-19 pandemic.  With the CARES Act now law, we look forward to working with Agriculture Secretary Sonny Perdue on several important initiatives, including the need for a significant purchase of multiple dairy products. These efforts will be important to address sales lost because of COVID-19, lift farm milk prices and send a critical signal to disrupted dairy markets. Government dairy-product purchases will provide our food banks with an important, nutritious and popular staple item that will help feed families in need.”

    Michael Dykes, President and CEO of the International Dairy Foods Association (IDFA) shared, “The International Dairy Foods Association commends Congress for acting swiftly and decisively to bring financial relief to American businesses, households and workers as a result of the COVID-19 outbreak, which has delivered an historic blow to our nation’s economy and workforce. On behalf of America’s dairy industry, IDFA is grateful that this bipartisan bill has put a special emphasis on businesses large and small, farmers, and our rural communities who grow, process and distribute many of the foods and beverages that are so vital to Americans during this crisis. We urge Congress to continue to be mindful of the critical part the food industry plays in our national security, economic security and food security. The United States is the world’s most productive food and agricultural economy in the world, and our legislators and federal officials must do everything in their power to ensure continuity of operations throughout the food supply chain. Our food security is absolutely essential.”

    Dykes continued, “Now we are seeing record jobless claims for Americans, which presents hardships to families just trying to put nutritious, wholesome food on their tables. Our federal government must now turn its attention to those Americans most in need by ensuring our food banks, pantries and distributors have an abundant supply of food for families trying to make ends meet. The CARES Act includes billions of dollars to support federal nutrition and feeding programs, as well as $450 million for USDA to provide food banks with additional resources for food and distribution. With resources in place through replenishment of the Commodity Credit Corporation, billions for nutrition and feeding programs, and millions to support our food banks, it is incumbent on USDA to act without delay. We urge USDA to act today to make record purchases of fluid and powdered milk, cheese, and other dairy products, as well as other foods and commodities, to equip our food banks for a surge of food-insecure Americans and to bring certainty and balance to the marketplace due to whole sectors of the economy shutting down due to COVID-19. The closure of restaurants, cafes, bars and other food service operators as a result of COVID-19 has created a major market gap for our dairy producers and processors. While retail sales have climbed steadily, the loss of foodservice, which accounted for roughly 50% of all food sales, has presented a significant challenge to our industry. USDA should act now to direct those products to food banks to help people in need. This will prioritize those most in need, provide certainty to producers and agribusinesses, and restore needed balance in the marketplace.”

    The CARES Act provides:

    Relief for Farmers and Ranchers

    • $9.5 billion dedicated disaster fund to help farmers who are experiencing financial losses from the coronavirus crisis, including targeted support for fruit and vegetable growers, dairy and livestock farmers, and local food producers, who have been shorted from receiving emergency assistance in the past.
    • $14 billion to fund the Farm Bill’s farm safety net through the Commodity Credit Corporation.
    • Eligibility for farmers and agricultural and rural businesses to receive up to $10 million in small business interruption loans from eligible lenders, including Farm Credit institutions, through the Small Business Administration. Repayment forgiveness will be provided for funds used for payroll, rent or mortgage, and utility bills.
    • $3 million to increase capacity at the USDA Farm Service Agency to meet increased demand from farmers affected by the coronavirus crisis.

    Assistance for Small Towns and Rural Communities

    • $1 billion available in guaranteed loans to help rural businesses weather the economic downturn.
    • $100 billion to hospitals, health care providers, and facilities, including those in rural areas.
    • $25 million for telemedicine tools to help rural patients access medical care no matter where they live.
    • $100 million for high-speed internet expansion in small towns and rural communities.
    • Over $70 million to help the U.S. Forest Service serve rural communities and reduce the spread of coronavirus through personal protective equipment for first responders and cleaning of facilities.

    Protections for Consumers and the Food Supply

    • $55 million for inspection and quarantine at our borders to protect against invasive pests and animal disease.
    • $33 million for overtime and temporary food safety inspectors to protect America’s food supply at meat processing plants.
    • $45 million to ensure quality produce and meat reaches grocery stores through increased support for the Agricultural Marketing Service.
    • $1.5 million to expedite EPA approvals of disinfectants needed to control the spread of coronavirus.

    Food Access for Families

    • $15.8 billion to fund food assistance changes made in the Families First Coronavirus Response Act. Republicans and the Trump Administration blocked additional funding to expand benefits for children, families, and seniors.
    • $9 billion to fund child nutrition improvements made in the Families First Coronavirus Response Act.
    • $450 million to provide food banks with additional resources for food and distribution.
    • $100 million for food distribution in Tribal communities to provide facility improvements, equipment upgrades, and food purchases

    The California Association of Winegrape Growers (CAWG) shared that two small business loan programs have been created as a result of the COVID-19 pandemic. These may help small business operations (growers) that are dealing with the economic challenges of the pandemic. Small business is defined as a company with less than 501 employees and California small businesses are eligible for both programs.

    • The first program includes $1 billion to immediately assist small businesses hit hard by the current economic shutdown. Unlike traditional Small Business Administration (SBA) funding mechanisms, this program is being administered directly by the SBA and is live and accepting applications NOW.
    • The second program includes the Paycheck Protection Program and the Economic Injury Disaster Loan (EIDL) program. These will be administered more like traditional SBA programs, i.e. through third-party 7(a) lenders.

    Key Bankruptcy Provisions within the CARES Act Include:

    • Amending the Small Business Reorganization Act of 2019 (SBRA) to increase the eligibility threshold for businesses filing under new subchapter V of chapter 11 of the U.S. Bankruptcy Code from $2,725,625 of debt to $7,500,000. The eligibility threshold will return to $2,725,625 after one year. The increased debt limit for struggling small businesses to access subchapter V reflects recommendations of ABI’s Commission to Study the Reform of Chapter 11.
    • Amending the definition of “income” in the Bankruptcy Code for chapters 7 and 13 to exclude coronavirus-related payments from the federal government from being treated as “income” for purposes of filing bankruptcy.
    • Clarifying that the calculation of disposable income for purposes of confirming a chapter 13 plan shall not include coronavirus-related payments.
    • Explicitly permitting individuals and families currently in chapter 13 to seek payment plan modifications if they are experiencing a material financial hardship due to the coronavirus pandemic, including extending their payments for up to seven years after their initial plan payment was due.

    The American Bankruptcy Institute (ABI) emphasized that the bankruptcy provisions of the CARES Act listed above sunset within a year. Additionally, the law provides temporary relief for federal student loan borrowers by requiring the Secretary of Education to defer student loan payments, principal, and interest for 6 months, through September 30, 2020, without penalty to the borrower for all federally owned loans. This provides relief for over 95 percent of student loan borrowers.

    “The American Bankruptcy Institute (ABI) commends Congress and the President for their prompt action on this stimulus package to provide needed financial relief due to the COVID-19 coronavirus pandemic,” said ABI Executive Director Amy Quackenboss. “Consumers and small businesses will have greater access to the financial fresh start of bankruptcy thanks to this important legislation. “Our members will be sure to utilize these tools to help consumers and small businesses struggling with overwhelming debts due to the economic fallout of the pandemic.”

    ABI will be holding a free abiLIVE webinar with experts examining the bankruptcy provisions of the CARES Act on April 3 at 1 p.m. EDT. To register, please click here.

  • 2019 Market Facilitation Program Workshops

    USDA’s Market Facilitation Program (MFP) is continuing for the second year, providing almond growers with an opportunity to apply for direct payments to help alleviate the damage resulting from the global trade situation. Unlike the 2018 program when payments were based on delivered pounds, the 2019 MFP program is based on bearing acreage. To learn more about the changes to the 2019 program, and how you can also apply for 2018 payments, the Almond Alliance of California and Almond Board of California are co-hosting workshops with local USDA Farm Service Agency offices.  Pacific Nut Producer Magazine will also be hosting workshops at our annual Tree & Vine Expo at the Stanislaus County Fairgrounds on November 12th and the Grape, Nut & Tree Fruit Expo at the Big Fresno Fairgrounds on November 19th, featuring Chris Keeler, California District Director with the USDA Farm Service Agency.

    Come learn about the program and how you can apply!

    For more information contact Toni Arellano tarellano@almondboard.com regarding Almond Board workshops or Matthew Malcolm at matthew@malcolmmedia.com regarding the Ag Expo workshops.

  • Supporting Candidates that Support the Almond Industry

    Dear Industry Partner:

    Agriculture, water, trade and pest management policy decisions directly impacting the California almond industry are decided every day in Sacramento and Washington, D.C. Our industry continues to be in the national spotlight as elected officials debate issues regarding retaliatory tariffs, water, pest management and labor. In this unprecedented political climate, it is essential that the almond industry advocate for our legislative and regulatory priorities. We have worked hard to successfully build the Almond PAC to support candidates who value the almond industry and take the time to understand it.

    I am writing to you today asking you to join hundreds of your colleagues statewide who actively participate in the Almond PAC. By contributing to the Almond PAC, you help support candidates who care about agriculture and are concerned about the future of the California almond industry.

    There are numerous policy and legislative decisions that negatively impact California agriculture. The Almond PAC raises donations to support champions who continue speaking out about these issues and how they negatively impact the California almond industry. We must educate and fight back!

    Contributions must be made by check and made payable to California Almond Industry PAC. Please be advised a remittance form (Click Here) must be completed in its entirety and accompany each contribution. Political contributions are not tax deductible.

    Thank you in advance for your support. If you have any questions pertaining to the Almond Industry PAC, please contact Annie Romero at (209) 300-7140 or aromero@almondalliance.org. For more information about the Almond PAC, Click Here, or visit our website at www.almondalliance.org. Thank you for your consideration and support and may you have a bountiful harvest season.

    Sincerely,

    Elaine Trevino

    California Almond Industry Political Action Committee

  • Harder Leads Bipartisan Coalition to Protect Local Farmers from China Tariffs

    WASHINGTON– Representative Josh Harder (CA-10) is leading a bipartisan group of lawmakers from across the country in an effort to ensure that Central Valley specialty crop growers aren’t again left out of a critical aid program provided to farmers harmed by Chinese tariffs. Although the ongoing trade war has cost the California walnut industry over $600 million, walnut farmers were not covered by the last Market Facilitation Program (MFP). Rep. Harder led a letter with Congressman Jimmy Panetta (CA-10) and 14 other members of Congress who represent districts that rely on specialty crops directly to Agriculture Secretary Sonny Perdue asking that these crops, including walnuts, be included in the next trade mitigation package.

    “Our walnut growers can’t become collateral damage in this trade war – our local folks have already lost millions in revenue and were left out of the last round of funding,” said Rep. Harder. “Walnut producers don’t want to have to rely on bailouts, but if farmers of other crops are getting a hand, we want to make sure our farmers qualify as well. We need the USDA to work for Central Valley farmers – that means providing critical support to help blunt the impact of these tariffs.”

    “Although my specialty crop producers on the central coast of California want long term business and not short term bailouts, all farmers affected by China’s retaliatory tariffs should be included in the forthcoming USDA trade mitigation package,” said Rep. Panetta.

    “The Administration must bring this trade war to an end. California’s farmers and ranchers have been hit hard and USDA’s initial trade relief package did little to make them whole,” said Jim Costa, Chairman of the Livestock and Foreign Agriculture Subcommittee. “As Chairman of the Livestock and Foreign Agriculture Subcommittee, I urge Sec. Perdue to fully take the needs of California’s specialty crop growers, as well as dairy farmers, into account for this second attempt.”

    “Family farmers deserve to be served equally when caught in the middle of a trade war,” said Jamie Johansson, president of the California Farm Bureau Federation.“It’s vital that USDA works closely to ensure that producers of all impacted commodities are fairly represented in a relief package. We applaud this bipartisan effort to bring attention to the needs of California agriculture.”

    The last MFP program included many crops valuable to the Central Valley agriculture industry, but walnuts were not included. After the Chinese announced another round of retaliatory tariffs this week, the United States Department of Agriculture (USDA) elected to provide additional assistance to farmers who are hurt from the volatile trade market. The coalition of representatives has asked that the USDA include specialty crops, including walnuts specifically, in the expanded program.

    The text of the letter is below and an original copy is available here.

     

    Dear Secretary Perdue,

    Thank you for your leadership supporting our nation’s farmers and overseeing the U.S. Department of Agriculture (USDA). We appreciate the opportunity to work together to help our agriculture communities thrive. We understand that the USDA is actively working on another trade aid package to assist our farmers. We ask that as your office creates this trade mitigation package, it ensures that all specialty crops are included.

    Farmers are the bedrock of our rural economy, representing one of our nation’s top industries. They are navigating declining commodity prices and unstable trade markets all the while net farm income continues to fall. Our farmers deserve predictability in national trade policies, especially given the impact of trade deals on the agricultural economy. As these trade negotiations and tariff issues persist, it is important to ensure the needs of fruit, vegetable and tree nut producers are heard and reflected in these policies.

    As you know, the Market Facilitation Program (MFP) was created to help those who were directly impacted by foreign retaliatory tariffs and the loss of traditional export markets. MFP helped address the financial sting of tariffs for some farmers, but the reality is that many were consciously left out of this program, such as walnut and table grape growers. While we were pleased to see sweet cherries and almonds added to the MFP, there are many other specialty crops that have suffered from the ongoing trade disputes that deserve to be included in the next trade assistance package. As a result we request that specialty crop farmers receive direct assistance payments in a similar fashion to their program crop brethren.

    Additionally, we would like to express our support in expanding any export promotion program that may be a component in the trade package USDA is developing. Specialty crop growers throughout the country have spent decades developing these markets that are now at risk. As such they will need to rely heavily on export promotion and market retention efforts to stay competitive. Furthermore, with higher than average adjusted gross incomes, we anticipate not all our growers will be able to access a direct payment option, should one be made available to them. We therefore request all unused direct payment funds be reallocated towards the export promotion component of the trade assistance package (with that money maintained for the respective specialty crop).

    Thank you, Secretary Perdue, for your attention to this important issue. We look forward to working with you.

  • California Ag Water: Current Regulatory Challenges

    After years of drought, the 2019 winter is turning out to be a good one for California’s water supply. Several winter storm systems in the past couple of months means there is plenty of water. In some parts of the state, more than plenty, as evidenced from flooding events. Snow pack is above average (156%) and reservoirs are sufficiently full. So, farmers can rest easy, eh? Not so fast.

    Some of you may have heard that in December 2018 the State Water Resource Board announced that up to 50% of the water flowing through Lower San Joaquin River and its tributaries – the Stanislaus, Merced and Tuolumne river will be required to flow unimpaired, i.e. without diversions. The Water Board contends this is needed to restore critically endangered fish species dependent on the flow. A second phase of the plan would see similar flow requirements for the Sacramento River and its tributaries – the Feather, Yuba and American Rivers. As you can imagine, this will have a severe impact on agriculture dependent on this water.

    However, this is not a done deal. There are other regulatory processes that must be followed before the plan can go into effect. But already, legal challenges have been made to this so called “Bay Delta Plan”. Several agricultural commodity groups, including the California Walnut Commission, have voiced their opposition. Critics of the plan argue that voluntary water sharing agreements between various stakeholders can yield better results than arbitrary unimpaired flow decisions. Furthermore, they point out that water flow is just one of the factors affecting species survival. Habitat loss is another critical factor to be taken into account. Mere unimpaired water flow would not be as beneficial to species restoration. To that end, cooperation among various stakeholder groups-agricultural water rights, urban drinking water, and environmental groups, is the appropriate way to go.

    Another regulatory issue of importance is the Sustainable Groundwater Management Act (SGMA). This was passed in 2014, at the height of the California drought, to avoid severe depletion of groundwater and its quality. The first phase of SGMA implementation is approaching in 2020. Local water agencies will need to start implementing Groundwater Sustainability Plans (GSP), which will include annual tabulation of how much groundwater is being extracted. Growers should have heard by now from their local water agencies as to which Groundwater Sustainability Agencies (GSA) they belong to and what the annual reporting requirements are.

    Regardless of the regulatory issue, the California Walnut Commission will continue to make sure the opinions of the California Walnut industry are represented.