Act Now to Help Pass the USMCA

House to Take First Step Towards Full Ratification of USMCA

Provided by California Farm Bureau Federation

This Thursday, the House will take the first step towards full ratification of the renegotiated NAFTA known as the “US-Mexico-Canada Agreement” (USMCA). California agriculture exports $6.6 billion in goods to Canada and Mexico and supports more than 56,000 jobs.

Since NAFTA was implemented, U.S. agricultural exports to Canada and Mexico quadrupled from $8.9 billion in 1993 to $39 billion in 2017. After President Trump renegotiated NAFTA, the International Trade Commission determined that the USMCA would have a positive impact on the U.S. economy and a positive impact on U.S. agriculture. An additional $2.2 billion in exports is expected once this agreement is ratified.

Congress must pass USMCA to preserve the proven successes of NAFTA while enjoying greater access to dairy, chicken, and eggs. The agreement has positive updates for fruit exports, improvements in biotechnology, protected geographical indications, and strengthened sanitary/phytosanitary measures.

All in all, the USMCA is needed to bring more stability to the volatile trade market. Please reach out today to your U.S. Representative to urge their YES vote on this important agreement.

Click Here: ACT NOW for USMCA House Passage

California Ag Today2019-12-25T14:06:59-08:00December 18th, 2019|

Rep. Josh Harder: Trade War With India Must End for Almond Industry

India is Top Export Destination for Almonds, Worth $650 Million Annually

News Release

Representative Josh Harder (CA-10) released the following statement after India imposed retaliatory tariffs up to 70 percent on American products, including almonds. Rep. Harder’s district is one of the largest producers of almonds in the country, and India is the top export destination for the product.

Josh Harder

“This trade war has to end. The president is shooting from the hip on his trade policy and it’s Central Valley almond farmers that are left holding the bag. India is our top export partner and we just can’t afford to take this hit. I’m going to continue pushing the administration and the USDA to stop this devastating cycle of retaliatory tariffs. We need to be supporting our farmers, not cutting off our markets and depressing our economy.”

According to the United States Department of Agriculture (USDA), the United States exported over $650 million worth of almonds to India in 2018.

California Ag Today2019-06-18T20:59:02-07:00June 18th, 2019|

Almond Growers Helped In Trade Dispute

Almond Grower and Board Chair Holly King Attends White House Briefing with President

News Release

U.S. Secretary of Agriculture Sonny Perdue announced almonds will be included in the administration’s new trade mitigation package. This package aims to continue the support of farmers and ranchers impacted by delayed negotiations and trade disruption with China.

Almond Board Chair Holly A. King attended a briefing at the White House recently with President Donald J. Trump and representatives from other major farm groups to discuss the trade mitigation package.

“It is an honor to represent the California almond industry at the White House briefing with President Trump and express appreciation for his efforts to ease the burden of the trade tariffs on California almond growers,” King said. “We have invested heavily in developing the market for California almonds in China for more than 20 years and hope the Administration is successful in negotiating a new trade deal soon so we can get back to business as usual.”

The $16 billion package includes $14.5 billion for the Market Facilitation Program, $1.4 billion in surplus commodity purchases through the Food Purchase and Distribution Program and $100 million in Agricultural Trade Promotion funding. Almonds will be included in the Marketing Facilitation Program. According to the USDA release, “Tree nut producers, fresh sweet cherry producers, cranberry producers and fresh grape producers will receive a payment based on 2019 acres of production.”

The Almond Board has worked closely with the Almond Alliance of California throughout the developing tariff situation to ensure the voice of the California almond industry is heard.

“The Almond Board and Almond Alliance have been actively engaged with USDA, the US Trade Representative and Congress regarding the impact of this trade disruption on almonds. The Alliance has led efforts ensuring almonds are included in the second mitigation package,” said Julie Adams, Vice President of Global, Technical and Regulatory Affairs at the Almond Board. “We look forward to working with USDA in leveraging these funds to best benefit the entire almond industry and our grower communities.”

Overall, trade disputes have underscored the importance of having diverse, healthy export markets, a position of strength that the California almond industry has long enjoyed. For decades, ABC has supported the industry by making significant investments in foreign market development and expansion. Recently, the Almond Board started marketing programs in Italy, Mexico, Germany and re-entered Japan. ABC also ramped up marketing activity in Germany and India.

“While we appreciate almonds’ inclusion in the second package, almonds continue to be impacted by the increase in tariffs, and we’ve seen a significant decline in shipments to China, our third-largest export market,” said Adams. “Getting back to normal trade is critical.”

California Ag Today2019-06-03T16:53:20-07:00June 3rd, 2019|

American Lamb on the Rise

American Lamb Is Part of U.S. Culture

By Jessica Theisman, Associate Editor

American lamb is as popular as ever. California Ag Today recently spoke about lamb with Jim Percival, chair of the American Lamb Board, who is also a lamb producer in Ohio.

“It is part of our culture, and the majority of the folks that raised lamb in the U.S. are family operations, family farms,” Percival said.

Some of the farms are generational: three to five generations old. The American Lamb Board is working to build that domestic demand for lamb. They have seen an increase in the last couple of years.

“We are finding that millennials love American lamb, and that is one of the things that excites us,” Percival said.

John Percival is Chair of the American Lamb Board

“[There’s] our Feed Your Adventure Side campaign; we have also worked really hard to make lamb more approachable, easy to serve, and easy to fix,” he explained.

“The millennials also want something different, and lamb is a wonderful premium protein and they love the taste. They love the texture, they love the meat, and they’re flocking to it.”

Lamb is especially popular in California and other places on the West Coast.

“We still do that lamb jam every year in San Francisco, and that is still a huge event that a lot of people show up to,” Percival said.

After 16 years without open trade, Japan has recently opened back up for American lamb producers. Trade was closed after the BSE scare, and lamb was never able to be exported into Japan. As of two weeks ago, the first load of American lamb was shipped to Japan.

The demand there is very strong; the Japanese want that premium protein product.

“The chefs over there are asking for our product, and we see that as a real opportunity for growth for American lamb,” Percival said.

“Japan was one of our biggest trade partners before it was closed. I’m sure it is going to have a huge impact on the California producers, and the demand there is very strong, but as with anything else, our biggest thing is to make sure that more Americans are eating more American. Lamb,” Percival said.

The American Lamb Board, the U.S. Meat Export Federation, and ASI all worked together to open the market back up with Japan.

California Ag Today2021-05-12T11:17:09-07:00December 11th, 2018|

Calmer Minds Must Prevail for Trade Talks

California Growers in a World Market

By Patrick Cavanaugh, Editor

Paul Wenger, a Stanislaus County almond and walnut grower told California Ag Today recently that California growers have often suffered with tariffs. “The proposed trade agreements such as TTIP and TPP along with NAFTA would have helped solve tariff problems,” he said. “But TTIP and TPP are gone.”

“The Trump administration may try to negotiate a bilateral agreement with other countries, and he seems to be working on NAFTA with Mexico,” noted Wenger, who is also the past president of the California Farm Bureau Federation.

At the end of the day, Wenger hopes that calmer minds will persevere and we’ll see these trade negotiations get done and we’ll move forward.

“Because we are in a world market,” Wenger explained. “As much as President Trump puts tariffs on steel and aluminum … saying that we’re going to bring back our rust belt, well, we’re not, because it’s not the market that has killed the steel industry, it has been the regulations. Our steel industry can’t produce at a level that people are willing to pay.”

There are a lot of crops that can only be grown in a Mediterranean climate. There are only five Mediterranean climates in the world; California is one of them and the largest producer of specialty crops.

The central part of Chile can produce a lot of the crops that we have today. But other than that, it’s the south tip of Australia and South Africa and the Mediterranean region itself.

“When you really think about who can produce, as long as we have the water, not only do we have to worry about marketing our product, we have to also fight for our water so we can produce those crops. And long-term, people are going to find a path to California for the crops that we grow here,” Wenger said.

California Ag Today2018-09-11T15:59:43-07:00September 11th, 2018|

Lessening Negative Feelings Over Trade War

Walnut Processors Maintain Optimism

By Patrick Cavanaugh, Editor

California Ag Today recently spoke with Paul Wenger, past president of the California Farm Bureau Federation. He farms 700 acres of almonds and walnuts in Stanislaus County. He said that California Farmers and other stakeholders of the industry need to be less negative about the current trade war with China.

Almond and Walnut Grower Paul Wenger

“The more we talk negatively, the more that negative things are going to happen,” he said. “As I talked to walnut processors. They’re optimistic. That’s good news. I’ve talked to some walnut processors and said, ‘Well, what’s going to happen this year?’ We shouldn’t expect much as far as prices.”

“Marketing is always a self-fulfilling prophecy and it’s more psychology than it is anything,” Wenger said. “We are one of the largest producers now. Certainly, China is the largest producer. But China had a terrible crop and so they need walnuts, and so strange things can happen and the Chinese are always one that can bend the rules when they need.”

“We know that’s why President Trump has been going after China supposedly over some of these intellectual properties. Certainly, those aren’t the things that hurt agriculture, but we in agriculture are paying the price as we look at these countervailing tariffs that are coming on,” Wenger said.

Wenger explained that the Chinese know that, throughout the Midwest, it was the farm vote that helped and the rural states that helped bring home a victory for the president, so they’re going to go after President Trump.

A large amount of product was sold last season at a low price.

“We just go through the Affordable Care Act and then the port slowdown on the 2015 crop, which went into the 2016 crop, which was a little better We got a little bit better than 2017 crop was a good year for us,” Wenger said. ‘So you’re looking at a pretty good ’18 and now this happens.”

California Ag Today2018-09-04T13:42:28-07:00September 4th, 2018|

Despite Great Harvest, California Apple Growers Face Challenges

California Apple Growers Face Regulatory Disadvantage

By Patrick Cavanaugh, Farm News Director

Many California apple growers are in the midst of harvest season right now. Alex Ott, executive director of the Clovis-based California Apple Commission expects a 3% increase in production across the country. Ott foresees a 1% increase in California this season, where apples stand out because of their freshness.

“California is the fifth largest producer of apples in the United States,” Ott explained. “We are about the third largest exporter of apples in the United States. We like to pick, pack and ship. Unlike other states that like to store fruit and have that fruit around longer, California apple growers like to get in and get out,” Ott said.

“We have a small marketing window and we pride ourselves on fresh crops,” Ott elaborated. “So we try to get out of the market no later than December. Sometimes we go as late as January, but the idea is to [quickly] fill that niche window between the Chilean and the Washington state fruit.”

Alex Ott, executive director of the Clovis-based California Apple Commission

Yet, the California apple industry faces challenges going forward. Ott stated, “Over the last five years, California apple crop production has decreased by nearly 39%. A lot of that has to do with the changing of the crops. Any time you start to see an uptick in another crop, especially when it is not hand labor-intensive like apples, you will see a migration to those types of crops.”

Transitioning toward less labor-intensive crops may accelerate since Gov. Jerry Brown signed AB 1066. This bill will enable California farm employees to accrue overtime pay after working an 8-hour day, instead of a 10-hour day.

“It’s definitely going to be a challenge for California apple growers,” Ott said, especially given the labor shortage. “So apple production in the state will decrease.”

Ott lamented many countries already produce a lot of these other less labor-intensive crops. AB 1066 definitely puts us at a competitive disadvantage in keeping up with demand. The challenge is how can California apple growers compete with farmers in other state and countries who can do it faster and cheaper?

California Ag Today2016-10-14T18:26:24-07:00October 14th, 2016|

Governor Signs AB 1066 Overtime Bill for Farmworkers

Governor Signs AB 1066 With Good Intentions

By Patrick Cavanaugh, Farm News Director and Laurie Greene, Editor

TODAY, Governor Jerry Brown signed AB 1066, the overtime bill for farmworkers, despite pushback from agricultural groups and farmworkers in the state. Ian LeMay, director of member relations & communications of the Fresno-based California Fresh Fruit Association, anticipates that not only will farmers in the state lose, but farmworkers, exports, and possibly consumers will lose as well.

For years, California farm employees accrued overtime pay only after working a 10-hour day, instead of an 8-hour day, like most other employees in California. AB 1066 changes the overtime rules for farmworkers by gradually lowering overtime thresholds in steps over the next four years so farmworkers will eventually earn overtime after an 8-hour day.

The California farm industry has appreciated the prior overtime policy, according to LeMay, because agriculture is not a typical 52-week type of job. The workload of farming ebbs and flows with the seasons, weather, cultural practices and tasks.

For instance, harvesting of crops such as strawberries, citrus and table grapes, normally occurs during short 2- to 3-week periods in the state and is accompanied by an increase in demand for labor. As one might expect, the need for labor declines during non-harvest and non-planting phases, to the extent that farmworkers may endure periods of no work, and hence, no pay. So farmworkers have appreciated the opportunity to work extra hours and earn overtime during busier phases.

Labor costs for California growers of all fresh fruit, avocados and many vegetable crops will be most affected by this change. “This is going to have a very, very big impact on crops that require a high degree of labor like our stone fruit, table grapes and the rest,” said LeMay, “It’s definitely going to change the way our members have to approach doing business,” he said.

“When you compare it to the other states in the union that we are going to have to compete with,” LeMay elaborated, “when you take into account recent changes in minimum wage, piece-rate compensation, increasing farm regulations and now overtime, it’s going to be very difficult to compete not only in a domestic market, but also internationally. That’s the disappointing part about this.”

LeMay also explained that over the last 40 years, the California legislature has crafted labor law to create the highest worker standards in the U.S. “California was the only state in the union that had a daily threshold for overtime of [only] 10 hours per day, and we were one of four in the union that had a weekly threshold for overtime of [only] 60 hours. So in terms of ag overtime, California was already the gold standard.”

And, although lawmakers intended AB 1066 to help farmworkers, LeMay noted, “ultimately, the measure will impact farmworkers the most because farmers in the number one Ag state will find a way to keep its bottom line from eroding any further.

“California farmers will need to solve the puzzle of how to achieve the same amount of work in fewer hours per day,” said LeMay. “They will consider hiring double crews, increasing mechanization in packing facilities, orchards and vineyards, and reducing farm acreage to match their workforce. Or, for those commodities that require increased labor, you could see a transition to commodities like nut crops that use less labor.”

LeMay explained that during down periods on the farm, farmworkers generally collect unemployment, which is based on gross annual income. Now, by giving the farmer an incentive to reduce worker hours, farmworkers’ unemployment compensation may decrease as well.

Furthermore, for the consumer who desires fresh local food from small farms, the phase-in schedule AB 1066 provides to smaller companies is actually a competitive disadvantage. “While AB 1066 allows small farmers—those with fewer than 25 employees—more time to phase in changes,” LeMay asked, “why would a farmworker stay at small farm under the prolonged 60-hour per week overtime threshold rule, when he or she could work at a larger farm under the phased-in 40-hour per week threshold?”

Are consumers willing to pay for increased labor costs on the farm? “As the saying goes,” LeMay quipped, “generally farmers aren’t price makers, they are price takers. Consumers are usually unwilling to pay extra for their produce, so farmers usually have to absorb increased costs.”

“Economically,” LeMay summarized, “the legislature has taken us from high labor standards to economically disadvantaging farmers and farmworkers. Lawmakers are not paying enough attention to keeping California companies viable, sustainable and successful.”

California Ag Today2016-09-12T18:40:13-07:00September 12th, 2016|

Brexit Hurts Wine Exports To U.S.

Brexit-Devalued Pound Hurts Wine Exports To U.S.

Jon Moramarco, managing partner of Bonded Winery 166 (BW 166 LLC), is a third-generation wine professional at the company that his grandfather, Giuseppe Moramarco, a tenth-generation wine professional émigré from Italy, acquired BW 166 LLC in Los Angeles from the Jesuits during Prohibition.

Moramarco explained the effects of Brexit on wine imports to the U.S. “The UK pound has dropped in value versus almost every currency,” he began. “The UK will not want to raise their price in British pounds, so it will probably drive them to become interested in any exports to the UK from the U.S. They will want to have a lower price in U.S. dollars, which will be tough for producers to do in the U.S.”

Continuing, “Now those [EU] European wine exporters are going to say, ‘Well, I don’t want to sell at that price to the UK. I’m gonna go try and sell more in the U.S.'” noted Moramarco. “So we will see more imports coming into the U.S. from Europe.”

“So you kind of have a double whammy for wine,” Moramarco concluded, “because they’ve kind of lost the margin in one of their key markets.” He anticipated “difficulty in exports with people wanting to drop price,” as well as a greater “increase in people wanting to import into the U.S.”

California Ag Today2016-08-31T13:10:33-07:00September 1st, 2016|

Brexit Affects U.S. Agricultural Trade

Joel Nelsen’s Commentary on Washington D.C. Meetings, Brexit and U.S. Agricultural Trade

By Lauren Dutra, Associate Editor

Joel Nelsen, president of California Citrus Mutual based in Exeter, Calif., spoke about his advocacy for growers and the impact Brexit has on U.S. agricultural trade as he arrived at the Fresno Yosemite International Airport from Washington, D.C. last week. Brexit is an abbreviation of “British exit,” which refers to the June 23, 2016 referendum by British voters to exit the European Union (EU), according to Investopedia.

Nelsen explained, “There were two missions I was on while I was in Washington. One had to do with a proposal to allow lemon imports from Argentina. We’re definitely opposed to it because of pests and diseases, and a lack of transparency in that country over the last one to two decades.”

“We have a comment period,” Nelsen continued, “but we have asked for an extension on that comment period because of the scope of the rule and the economic impact, and we haven’t heard a word on that,” he said. “We met with our colleagues and friends in Washington, D.C. Senator Feinstein, Senator Boxer and a couple of House Office Committees have agreed to make a phone call to the Secretary of Agriculture and get a determination on that,” he said.

@SaveOurCitrus is a free USDA iPhone app to report and identify the four leading citrus diseases: citrus greening, citrus canker, citrus black spot and sweet orange scab. Report your symptoms to SaveOurCitrus.org and upload a photo, and citrus experts will respond.

The second purpose of Nelson’s trip was to discuss trade and the impact on the U.S. economy due to the recent Brexit, as Nelsen is chairman of the Fresh Fruit and Vegetable Agricultural Technical Advisory Committee (ATAC), a national trade committee that offers information and advice about agricultural products and trade issues to the USDA Secretary of Agriculture and the U.S. Trade Representative. “People from across the country came, and we talked about trade subjects, such as the Trans-Pacific Partnership (TPP) agreement and Britain’s separating itself from the EU,” said Nelsen. “It’s obvious that this upset everybody; Ambassador Michael Froman, United States Trade Representative (USTR) who advises the president on international trade and investment issues, said, “I know what I don’t know, and I don’t know a lot right now.”

Nelson explained, “We think [Brexit] will slow down the fresh fruit and vegetable sector, as well as the passage of the Transatlantic Trade and Investment Partnership (T-TIP). According to the USDA Foreign Agricultural Service, since the U.S. market share of agricultural products and food imported by the EU—the world’s largest importer in the category—is shrinking despite continued growth of the EU market, T-TIP negotiations offer a major opportunity to address unjustified tariff and non-tariff trade barriers to U.S. exports.

“Quite frankly,” Nelsen summarized, “we’re less than excited about [T-TIP] because it didn’t address the inherent problem that we have from competition: fresh fruit and vegetable producers in the EU get a direct subsidy and growers in the United States do not.”

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Some additional members of the ATAC for Trade in Fruits and Vegetables include: