Study Forecasts Cost of Regulations on California Citrus Industry

Citrus Research Board Explains Cost Impacts on Growers

News Release From California Citrus Mutual

New regulations are expected to cost California citrus growers an average of $701 per acre per year, or $203 million annually statewide, according to a new study commissioned by the Citrus Research Board (CRB).

“Compliance with environmental regulations not associated with groundwater sustainability is estimated to increase costs by $17.7 million, or $67 per acre of citrus,” predicts Bruce A. Babcock, Ph.D., a professor in the School of Public Policy at UC Riverside who authored the study. “New labor requirements will increase costs by $112 million, or $357 per acre, once they are all phased in.”

“Babcock has presented a well-researched economic report that shows how new regulations will increasingly impact California’s citrus industry,” said CRB President Gary Schulz.

The report, Impact of Regulations on Production Costs and Competitiveness of the California Citrus Industry, also predicts that controlling the Asian citrus psyllid (ACP) “will increase costs by $65 million, or $248 per acre per year, if controls are extended to all citrus-growing regions.” Compliance training costs are estimated to increase costs by another $29 per acre, or $7.5 million for the state citrus industry.

“As I read and reread Dr. Babcock’s report, two things kept jumping off the page: one, ‘Cost increases borne by California’s citrus but not by … other citrus growing regions decrease the future competitiveness of California’s citrus industry’; and two, ‘… future compliance with these regulations is estimated to increase costs by $203 million, or $701 per acre per year,'” said California Citrus Mutual President Joel Nelsen. “When the cost of citrus at store level gets too expensive, consumers look for lower priced fruit. This UCR report paints a clear path for policy makers if their goal is to drive the citrus industry out of California and onto off-shore production areas.”

The 20-page report includes a breakdown of increases in labor costs, including California’s minimum hourly wage increases, which are scheduled to rise in annual increments to $15 over the next four years. The report also covers the projected cost increases of recent state legislation dealing with paid sick leave, payment rates for rest and recovery periods, overtime and workers compensation.

The section on insecticide treatment addresses grower cost of spraying for ACP, even though the severity of the problem currently differs greatly in various areas of the state. If ACP establishes itself in all citrus regions in the state, which the report says is “almost inevitable,” control efforts would amount to $39.5 million per year, according to Babcock. This would be in addition to the state-mandated tarping of fruit that is transported to packinghouses, at a cost of approximately $9 million per year.

According to the report, The Food Safety Modernization Act, which was passed in 2011 and is still being implemented, will not require major changes for growers who are already GFSI-certified (Global Food Safety Initiative compliant).

The impact of the Sustainable Groundwater Management Act (SGMA) is hard to predict, according to Babcock. “It will not be possible to calculate the impact of SGMA until each basin’s groundwater sustainability plans have been finalized,” he states. “Without new surface water supplies, it seems inevitable that some farmland that currently relies on groundwater will need to be fallowed to balance withdrawals with recharge rates.”

Babcock, a Fellow of the Agricultural and Applied Economics Association, has won numerous awards for his applied policy research. He received a Ph.D. in Agricultural and Resource Economics from UC Berkeley, and Master’s and Bachelor’s degrees from UC Davis.

The CRB administers the California Citrus Research Program, the grower-funded and grower-directed program established in 1968 under the California Marketing Act, as the mechanism enabling the state’s citrus producers to sponsor and support needed research. The full report on the Impact of Regulations on Production Costs and Competitiveness of the California Citrus Industry, as well as more information about the Citrus Research Board, may be read at www.citrusresearch.org.

Citrus Referendum Coming Up

Citrus Growers to Vote on Referendum

News Release from Citrus Research Board

California citrus growers soon will receive a critical citrus referendum ballot from the California Department of Food and Agriculture (CDFA) asking them to vote on continuing the work of the Citrus Research Board (CRB) for the next five years.

The grower-funded and grower-directed CRB was chartered nearly 50 years ago to enable California citrus growers to sponsor and support needed research that industry members otherwise would be unable to individually fund or access on their own. The Board’s mission is to ensure a sustainable California citrus industry for the benefit of growers by prioritizing, investing in and promoting sound science.

Some key areas funded include general production research, a variety improvement research program, a quality assurance program on agricultural chemical residues, and pest and disease control activities. Currently, disease control is crucially important.

The California citrus industry is now in the fight of its life to prevent the spread of the devastating disease huanglongbing (HLB) from California’s orchards.

HLB already has decimated most other major citrus growing regions, including Florida.

In California, HLB so far only has been found in 40 residential trees in Los Angeles; however, unless researchers are able to find a solution, HLB could gain a foothold in the state’s commercial groves. Currently, the CRB is dedicating its primary research efforts to controlling the spread of HLB and eradicating the disease. The Board is beginning to see some promising results; but without the CRB, much valuable research will go unfunded.

“We urge all citrus growers to vote when they receive their ballots from the CDFA,” CRB President Gary Schulz said. “Citrus is important to our state’s economy, employment, health and positive identity. We are proud to proactively protect and sustain the world’s largest fresh citrus market. The work that our researchers are conducting is vital to sustaining the California citrus industry and ensuring its continued success.”

The CRB administers the California Citrus Research Program, the grower funded and grower-directed program established in 1968 under the California Marketing Act as the mechanism enabling the State’s citrus producers to sponsor and support needed research. More information about the Citrus Research Board may be found at www.citrusresearch.org.

Gary Schulz Gives California Citrus ACP and HLB Update

California Citrus ACP and HLB Update from Gary Schulz

By Brian German, Associate Broadcaster

 

The Citrus Research Board (CRB) recently held their annual California Citrus Conference in Exeter, bringing together a variety of guest speakers and research presentations. The Conference focused on pressing Asian Citrus Psyllid (ACP) and Huanglongbing (HLB) issues, along with political action updates and current projects that are important to the citrus industry. Gary Schulz, president of the CRB, said “We have a 21-member board and we’ve been planning this event for the last 12 months. It’s been 4 years since we held the last conference,” noted Schulz.

Gary Schulz, president, Citrus Research Board
Gary Schulz, president, Citrus Research Board

The CRB is responsible for overseeing the California Citrus Research Program (CCRP), a grower-funded and grower-directed program created in 1968 under the California Marketing Act. The CCRP’s purpose to enable California’s citrus producers to sponsor and support research that furthers the overall industry. Therefore, close to 70 percent of the CRB’s overall budget is allocated to research.

Schulz said the Conference “was a great, great day to have a good update on some of the dollars the Citrus Research Board has been spending on the growers’ behalf on research.” Schulz explained HLB represents the single greatest threat that citrus growers have faced worldwide.

For the past seven years, the USDA and Congress have allocated between $10 and $12 million dollars annually for ACP and HLB research operations.  Advocacy groups and other supportive ag organizations have contributed the difference to reach an annual ACP and HLB research budget of close to $90 million dollars a year. We fund a lot of UC Riverside and USDA agricultural research, service researchers, plus research at UC Davis and the University of Arizona,” Schulz noted.

Schulz, who has many years of experience in California agriculture, having served as general manager of the Raisin Administrative Committee and CEO of the California Raisin Marketing Board, stated that CRB has a great working relationship with California Citrus Mutual (CCM). “Joel Nelson and CCM have worked very hard with the packers to assess themselves, put together a private foundation, and work with the university,” Schulz said.

Featured Photo:  Adult Asian Citrus Psyllid (Source: The Citrus Pest & Disease Prevention Program)


Resources

California Marketing Act

Citrus Research Board (CRB)

California Citrus Mutual

CAPCA ANNOUNCES GARY SCHULZ NEXT CEO/PRESIDENT

The California Association of Pest Control Advisers (CAPCA) Chair, Jeremy Briscoe, has announced the hiring of Mr. Gary Schulz as the next Chief Executive Officer. Mr. Schulz succeeds retiring CEO Terry W. Stark, effective February 1, 2015.

Gary Schulz, next CAPCA CEO
Gary Schulz, next CAPCA CEO

Gary Schulz departs his current position as President/General Manager of the Raisin Federal and State Marketing Orders responsible for program research, marketing and compliance with the orders. Prior to his six years with raisins, Mr. Schulz managed the International Agri-Center, Inc. and the World AG Expo in Tulare from 1990-2005. The World AG Expo doubled in size under his leadership from 700 exhibitors to over 1,500 with over 2 million square feet of exhibits.

Established in 1975, CAPCA represents 75% of the 4,000 California EPA licensed pest control advisers (PCAs) that provide pest management consultation for the production of food, fiber, and ornamental industries of this state. CAPCA’s purpose is to serve as the leader in the evolution of the pest management industry through the communications of reliable information. CAPCA is dedicated to professional development and enhancement of our members’ education and stewardship which includes legislative, regulatory, continuing education and public outreach activities.

raisin characterCAPCA membership covers a broad spectrum of the industry including agricultural consulting firms, U.C. Cooperative Extension Service, city, county and state municipalities, public agencies, privately employed, forensic pest management firms, biological control suppliers, distributors, dealers of farm supplies, seed companies, laboratories, farming companies and manufacturers of pest management products.

The California Association of Pest Control Advisers (CAPCA) was established in 1975 to support and promote agricultural pest control advisers (PCAs).