Ballot Measures
The Ag Council PAC is joining Governor Schwarzenegger, legislative leaders and many agricultural and business organizations including California Farm Bureau Federation, California Grape and Tree Fruit League, Western Growers, California Chamber of Commerce and California Business Roundtable in supporting the ballot measures that will be voted upon in the May 19 Special Election:
- 1A - Rainy Day Fund
- 1B - Protect Education Funding
- 1C - Lottery Modernization
- 1D - Children Services Funding
- 1E - Mental Health Funding
- 1F - Salary Freeze
These proposals are part of a comprehensive package of spending reductions, temporary tax increases, federal stimulus funds and borrowing constituting the 2009-2010 State Budget agreement reached in February. Agriculture has a lot in the State Budget because of the General Fund support allocated for pest protection, animal health, Williamson Act subventions and UC agricultural research and extension. The industry is also subject to an array of regulatory fees that inevitably increase when General Fund revenues decrease. Unfortunately, there’s no quick fix to the state’s fiscal woes and the passage of these measures (which is far from certain) merely prevent a bad situation from becoming much worse.
Legislative Update
The Senate Food & Agriculture Committee held its first full hearing on Tuesday and passed the following bills:
Pierce’s Disease – SB 2 (Wiggins) Extends statutory authorization of the Pierce's Disease Control Program in the Department of Food and Agriculture and the Pierce's Disease Management Account in the Food and Agriculture Fund until March 1, 2016.
Tail Docking SB 135 (Florez) Prohibits the docking of cattle except during an individual treatment, emergency, or operation performed by a veterinarian.
Citrus Nursery Stock – SB 140 (Corbett) Requires CDFA to establish the Citrus Nursery Stock Pest Cleanliness Program to protect citrus nursery stock from harmful diseases, pests, and other risks and threats. The bill requires any person who, by any method of propagation, produces any citrus nursery stock shall comply with all agricultural practices, application specifications and deadlines, eligibility, inspection, notification, pest control, records maintenance and availability, registration, sanitation, testing, and other lawful orders issued by the secretary.
Food Safety – SB 173 (Florez) Requires every grower, food processor and food facility that tests the food that it grows, processes, or prepares to testing to determine the presence of a microbe, pathogen, poisonous chemical or other harmful substance that may cause food-borne disease to maintain accurate records with the results of these tests and report to the Department of Public Health the test results. It also requires the State Public Health Officer to recall food that may carry an illness, infection, pathogen, contagion, toxin, or condition that, without intervention, could transmit an illness that could kill or seriously affect human health.
Milk Pooling - SB 362 (Florez) Repeals the Gonsalves Milk Pooling Act which provides for equalization pools and milk pooling to govern the production and distribution of fluid milk and fluid cream.
Ag Burning – SB 382 (Florez) Provides that an agricultural burn permit for burning within the jurisdiction of the San Joaquin Valley Unified Air Pollution Control District is invalid on days in which the district prohibition on the operation of wood burning devices is in effect.
Antibiotics - SB 416 (Florez) Places severe restrictions on the use of antibiotics in livestock and poultry raised for food products. The provisions include: prohibiting any school, after January 1, 2012, from serving poultry and meat products treated with antibiotics to pupils; prohibit the registration of any antibiotic; and, commencing January 1, 2015, prohibit a person from using antibiotics for non-therapeutic and prophylactic use in any animal raised for the production of any human food product.
Citrus Inspection – SB 562 (Florez) Specifies that procedures for implementing a citrus inspection program shall also include development of a communications program to inform producers and handlers of the requirements of the inspection program.
Three of the aforementioned bills, SB 173, SB 362 and SB 416, are controversial and will have our full attention as they proceed through the legislative process.
Blueberry Commission Scrutinized
AB 606 (Ma) authorizing the establishment of the California Blueberry Commission received extra legislative scrutiny in the Assembly. Although the proposed commission is unopposed and consistent with all other commodity commissions relative to the authority to conduct research, pest management and promotion programs, it was double referred to the Judiciary Committee after it was passed by the Agriculture Committee. Double referral means the legislation is heard by two policy committees instead of one. In the case of AB 606, it was referred to the Judiciary Committee on the basis its authority to bring civil actions against anyone violating the rules and regulations of the commission. This process vis-à-vis commission legislation is unprecedented. Fortunately, for the bill’s sponsor, the California Blueberry Association, AB 606 was unanimously passed by the Judiciary
Committee. However, this double referral process reflects growing concern by lawmakers over improper management practices by some commissions that have surfaced in the past couple of years.
Humboldt Creamery Update
Following Following-up Humboldt Creamery’s ongoing financial problems, this article was posted by Times Standard in Eureka on April 21:
Humboldt Creamery filed for Chapter 11 bankruptcy protection this morning in U.S. Bankruptcy Court in San Francisco. Humboldt Creamery has been in crisis since late February when then-CEO Rich Ghilarducci resigned and reported through an attorney that there were inaccuracies in the company's finances. The news rocked the company and the dozens of dairy families that are part of its cooperative.
Only months ago, it was believed Humboldt Creamery was doing well, and it had even reported record sales last year. Now it has deferred millions of dollars in payments to its member farms, is trying to sell its Los Angeles plant, and is struggling to come up with credit.
According to documents filed with U.S. Bankruptcy Court's Northern District of California, the creamery has between 1,000 and 5,000 creditors and carries an estimated $50 to $100 million in liabilities. In the filings, the company estimated its assets to be between $50 and $100 million.
Interim CEO Len Mayer said the creamery saw bankruptcy as necessary to get credit to carry it through the busy summer ice cream season.
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