GOOD AFTERNOON. EVERYONE WANT TO
THANK EVERYBODY FOR JOINING US
THIS AFTERNOON FOR AN
INFORMATIONAL HEARING ON
CALIFORNIA AGRICULTURE AND THE
COMPETITIVENESS THE
COMPETITIVENESS OF THE INDUSTRY
WOULD LIKE TO THANK OUR ASSEMBLY
AGRICULTURE COMMITTEE STAFF
VICTOR AND NICOLE FOR ALL OF
THEIR WORK AND PUTTING THIS
HEARING TOGETHER. I KNOW IT WAS
A LONG TIME COMING. WE'VE BEEN
THIS IS BEEN MONTHS, UM, IN THE
WORKS AND SO FORTH SOME
LOGISTICS AND PROTOCOLS FOR ANY
MEMBERS OF THE PUBLIC. THERE ARE
PRESENT IN THE HEARING ROOM. UM
CERTAINLY, PLEASE BE MINDFUL OF
PHYSICAL DISTANCING IN PLEASE
FOLLOW THE DIRECTIONS OF OUR
STAR GENTS AND POSTED GUIDANCE.
THERE WILL BE AN OPPORTUNITY FOR
PUBLIC COMMENT. COMMENTS MAY BE
MADE IN PERSON IN THIS ROOM OR
BY PHONE. THE PHONE NUMBER TO
MAKE PUBLIC COMMENTSIS 87769289. THE ACCESS CODE IS 1315126.
THIS NUMBER WILL ALSO BE SHOWN
TO VIEWERS ON SCREEN THROUGHOUT
. THE HEARING IS ALSO POSTED ON
OUR ASSEMBLY COMMITTEE WEBSITE
AND REMEMBER THE PUBLIC IS ALSO
WELCOME TO SUBMIT WRITTEN
COMMENTS TO THE EGG COMMITTEE
THROUGH EMAIL, WHICH IS THE
EMAIL ADDRESS IS A G R I DOT
COMMITTEE. AT ASSEMBLY DOT
CA.GOV EMAIL ADDRESS CAN ALSO BE
FOUND ON OUR WEBSITE. IN ORDER
TO MAKE SURE THAT WE FACILITATE
THE GOAL OF OUR HEARING. UM UH
AND TO, UM, HEAR FROM AS MUCH OR
TO HEAR, UH, AS MUCH FROM THE
PUBLIC WITHIN THE LIMITS OF OUR
TIME, WE WILL NOT, UM, PERMIT
CONDUCT THAT DISRUPTS THAT, UM,
THAT DISTURBS OR OTHERWISE
IMPEDE THE ORDERLY CONDUCT OF
OUR HEARING. SO PLEASE BE AWARE
OF THAT VIOLATIONS OF THESE
RULES MAY SUBJECT YOU TO
REMOVAL. OR OTHER ENFORCEMENT
PROCESS BY THE STATE ASSEMBLY.
AND SO WITH THAT, AS YOU KNOW,
APPRECIATE ALL WHO, UM HAVE MADE
THIS HEARING. UM UH, POSSIBLE
THIS AFTERNOON. AND AS WE KNOW,
HERE IN OUR STATE IN CALIFORNIA
, WE ARE AN AGRICULTURAL
POWERHOUSE, ACCORDING TO THE
CALIFORNIA DEPARTMENT OF FOOD
AND AGRICULTURE, OUR STATE HAS
69,600 FARMS AND RANCHES AS OF
2020. UM AND, UH, IT'S, UH, IT'S
CALIFORNIA AGRICULTURE THAT IS
INCREDIBLY IMPORTANT TO OUR
LOCAL, STATE AND NATIONAL
ECONOMY. UM THE CONTRIBUTIONS OF
OUR FARMERS AND RANCHERS HERE IN
CALIFORNIA ATTEST TO THE
IMPORTANCE OF BOTH OUR FARMS. UM
AND OUR RANCHES ON A NATIONAL
AND A GLOBAL SCALE. AND
CERTAINLY HERE IN CALIFORNIA.
WE'RE ONLY ONE OF FIVE
AGRICULTURAL REGIONS IN THE
ENTIRE WORLD WITH A
MEDITERRANEAN MET IRANIAN GLOW
GROWING CLIMATE ENABLING THIS
STATES FARMERS TO GROW A VAST
ARRAY OF SOME COMMODITIES WITH
OVER 400 THAT ARE PRODUCED HERE
IN OUR STATE. UH HERE IN
CALIFORNIA AGRICULTURE HOLDS AN
IMMENSE A DIVERSITY OF CROPS.
AND DESPITE THE ECONOMIC, UM,
THE PROFITABILITY OF CALIFORNIA
AGRICULTURE OUR STATES, FARMERS
AND RANCHERS ARE DEALING WITH
INCREASING CHALLENGES TO
OPERATIONAL SUCCESS AND
LONGEVITY. AND TODAY WE'RE GOING
TO HEAR FROM FARMERS AND OTHERS
ABOUT THESE ECONOMIC CHALLENGES
THAT THEY FACE AND HEAR ABOUT
SOME POTENTIAL WAYS IN SOME
SOLUTIONS THAT WE AS A STATE CAN
ADVANCE. UM THAT, YOU KNOW,
CERTAINLY THAT WE CAN ADVANCE
WHEN IT COMES TO, UM, THE
COMPETITIVE COMPETITIVENESS OF
THIS INDUSTRY IN BOTH THE SHORT
AND THE LONG TERM, AND SO WITH
THAT OUR FIRST WE HAVE THREE
PANELS THIS AFTERNOON AND, UM
AND JUST PRIOR TO, UM BE
BEGINNING THAT FIRST PANEL I DO
WANT TO SEE IF VICE CHAIR MATHIS
HAS ANY COMMENTS HE'D LIKE TO
MAKE. THANK YOU, MR CHAIR. I
THINK, UM MANY OF US HERE AND
LISTENING AND UNDERSTAND THE
VITAL ROLE THAT AGRICULTURE IN
CALIFORNIA PLACE. UM AND
FRANKLY, WE ALL KNOW NATIONALLY
AND GLOBALLY. CALIFORNIA
AGRICULTURE IS NUMBER ONE. BUT
SADLY AND TRAGICALLY HERE IN
CALIFORNIA, WE DO NOT TREAT
AGRICULTURE AND WHAT GOES INTO
AGRICULTURE IS THE NUMBER ONE
PRIORITY LOOKING AT THE
AVAILABILITY OF WATER AND
AVAILABILITY OF LABOR. THE CAR,
SEVEN ENERGY AND ALL THE OTHER
INFLATION MATTERS THAT HAVE
DRIVEN COST UP. SO IT'LL BE A
GOOD PANEL TO SEE WHAT WE CAN DO
AS A STATE TO HELP AG BETTER.
AND, UM I JUST HOPE THAT WHAT IS
SAID HERE TODAY CARRIES ON TO
OTHER OFFICES AND
ADMINISTRATIONS HERE AT THE
CAPITOL. THANK YOU. THANK YOU,
MR VICE CHAIR. OUR FIRST PANEL
IS AN OVERVIEW OF THE
COMPETITIVE ISSUES FOR
CALIFORNIA AGRICULTURE. UM I'D
LIKE TO INVITE OUR FIRST
PANELIST, MR JOHANSSON, MR.
JAMIE JOHANSSON, WHO'S THE
PRESIDENT OF THE CALIFORNIA FARM
BUREAU? WHO IS HERE IN PERSON?
UM SO, MR JOHANNSON, ALWAYS
GREAT TO SEE YOU. I APPRECIATE
YOU MAKING THE TIME. THANK YOU.
GOOD AFTERNOON CHAIR RIVAS, VICE
CHAIR MATHIS AND THE REST OF THE
COMMITTEE ON ZOOM THERE. I AM.
JAMIE JOHANSSON, WITH THE
CALIFORNIA FARM BUREAU
REPRESENTING OVER 30,000 FARMERS
AND RANCHERS. ALSO A FARMER UP
IN BUTTE COUNTY MYSELF. FARM
BUREAU, AS WELL AS OUR MEMBERS
ARE DEDICATED TO PROTECTING THE
FUTURE AND QUALITY OF LIFE FOR
ALL CALIFORNIA FARMERS AND
RANCHERS. I'D LIKE TO THANK THE
COMMITTEE FOR HOLDING THIS
HEARING ON AGRICULTURAL
COMPETITIVE TO ADDRESS INDUSTRY
CONCERNS IN CALIFORNIA THE COST
OF RUNNING A BUSINESS,
ESPECIALLY IN AGRICULTURAL
OPERATION IS EXTREMELY COSTLY.
THE STATE RANKS 48TH AND COST OF
DOING BUSINESS AND 35TH IN
BUSINESS FRIENDLINESS, ACCORDING
TO CNBC. IN RELATION TO THIS WE
HAVE SEEN MORE AND MORE FARM
STRUGGLE TO STAY AFLOAT HERE. AS
SEEN BY 7100 FARMS, CLOSING
BETWEEN 2016 AND 2020. AS WELL
AS A RECENT ANNOUNCEMENT. BY
MANY BY SMITHFIELD FOODS THAT
THEY WILL BE LEAVING CALIFORNIA
DUE TO THE COST OF DOING
BUSINESS. ONE OF THE THINGS MR
OUT AND GOING FORWARD TO THAT
SCARES US WORRIES US IN
AGRICULTURE, NOT JUST OUR OWN
BENEFIT, BUT THOSE PEOPLE WHO
BUY OUR PRODUCTS AND HOW HOW
AFFORDABLE IS IT TO DO BUSINESS
IN CALIFORNIA FOR THEM,
ACCORDING TO A 2020 USDA NASS
REPORT. CALIFORNIA TOTAL FARM
EXPENDITURES TOTALLED $42
BILLION, REPRESENTING THE
LARGEST SHARE OF THE 2020 US
TOTAL EXPENDITURES BY 11.4%
EXPENDITURES PER CALIFORNIA FARM
AVERAGE $602,000 IN 2020. IN
ADDITION, FARMERS AND RANCHERS
FACE A WHOLE HOST OF CHALLENGES
TO VIABLY COMPETE HERE IN
CALIFORNIA, AND I KNOW THIS
COMMITTEE IS FAMILIAR WITH MANY
OF THEM HAVE ALREADY BEEN STATED
IN YOUR OPENING COMMENTS. UM
EVERYONE IS AWARE OF THE WATER
SITUATION. THE DROUGHT IN
CALIFORNIA. IN FACT, CALIFORNIA
FARMERS AND RANCHERS UNDERSTAND
YOU'RE OUT. CALIFORNIA
UNDERSTANDS DROUGHT. WE SPENT 40
OF THE LAST 100 YEARS IN A MULTI
YEAR DROUGHT. WHAT WE STRUGGLE
WITH AND WHAT CREATES
UNCERTAINTY FOR US FOR THE FIRST
TIME THAT WE DON'T UNDERSTAND IS
A FAILURE TO PLAN FOR DROUGHT
WHEN THEY KNOW THEY ARE COMING.
ACCORDING TO A U C. MERCED AND
PPC REPORT, 395,000 ACRES OF
LAND WERE IDLED IN 2020 ALONE
DUE TO THE DROUGHT. SIGMA
IMPLICATION COMING DOWN COULD
PUT ANOTHER MILLION ACRES OF
FARMLAND. UM TAKE ANOTHER
MILLION ACRES OF FARMLAND OUT OF
OUT OF CALIFORNIA. THE NUMBERS
WE'RE SEEING IN 2022 WILL BE
EQUALLY, IF NOT MORE, SO
STAGGERING PARTICULARLY IF YOU
LOOK AT OUR RICE INDUSTRY I FARM
UP IN BUTTE COUNTY, WHERE RICE
IS A ONE OF THE PRIMARY CROPS
BUT ON THE WEST SIDE OF THE
SACRAMENTO VALLEY, TWO THIRDS OF
THE RICE LAND THERE FOLLOWED
THIS YEAR BECAUSE OF A LACK OF
WATER. WE WILL SEE STAGGERING
NUMBERS WHEN WE COME OUT OF
2022. THE DIRECT COST OF FARMERS
AND LOST AND LOST IS OVER 8700
JOBS JUST IN 2021 ALONE. MORE
WATER CANTONMENTS AND THEREFORE
LESS WATER AVAILABILITY WILL
ONLY LEAD TO REDUCED AG
PRODUCTION AND DIMINISH OUR
ABILITY TO COMPETE AS A FOOD
PRODUCING STATE. ONE OF THE
THINGS WE'RE MOST PROUD OF ON
OUR FARMS IS OUR LABOR.
CALIFORNIA AGRICULTURE ENJOYS A
UNIQUE ASSET, A LARGE, WELL
TRAINED WORKFORCE THAT SERVES AS
THE VALUE MULTIPLIER TO A
MASSIVE CAPITAL INVESTMENT. MADE
BY BOTH CALIFORNIA FARMERS,
INVESTORS FROM OUTSIDE
AGRICULTURE AND OUTSIDE
CALIFORNIA WHO WANT TO INVEST IN
THE SUCCESS OF OUR INDUSTRY. WE
ARE TOLD THAT NEARLY THREE OUT
OF FIVE AGRICULTURAL EMPLOYEES
WORKING IN THE UNITED STATES
WORK IN CALIFORNIA. THAT'S ABOUT
800,000 PEOPLE WHO WORK ON OUR
FARMS THROUGHOUT THE YEAR,
SPECIFICALLY 950,000 WORK DURING
OUR PRIME GROWING SEASONS IN THE
SUMMER. THAT LARGE LABOR FORCE
ALSO POSES COMPETITIVENESS,
CHALLENGES UNIQUE AMONG OUR
NEIGHBORING STATES AND OTHER
COUNTRIES, AGAINST WHOM WE
COMPETE. THE EMPLOYMENT OF
PEOPLE IN CALIFORNIA IS
EXPENSIVE, EVEN AMONG ARRAY OF
EXPENSIVE AGRICULTURAL INPUTS.
COLOR CALIFORNIA FARMERS MUST
USE INCLUDING FERTILIZER SEED
AND ABOVE ALL, PREVIOUSLY
MENTIONED WATER. OUR MINIMUM
WAGE IS THE SECOND HIGHEST
UNITED STATES AT $15 PER HOUR.
AND OF COURSE, WE KNOW IT WILL
RISE TO 15 50 IN THE COMING
YEAR. ADD TO THIS AN ARRAY OF
LEGALLY MANDATED BENEFITS LIKE
WORKERS' COMPENSATION AND
UNEMPLOYMENT, INSURANCE,
HEALTHCARE FOR LARGER EMPLOYERS
AND AN ARRAY OF STATE AND
FEDERAL PAYROLL TAXES AND ALL
EMPLOYERS IN CALIFORNIA,
INCLUDING AGRICULTURAL EMPLOYERS
FACE A CHALLENGE CHALLENGING
COST ENVIRONMENT AS THEY
STRUGGLE TO SELL WHAT THEY
PRODUCE TO INFLATION CHALLENGE
CONSUMERS AT A PROFIT SO THAT WE
CAN MAKE PAYROLL WORKERS
COMPENSATION HAS BEEN WELL
ADDRESSED. COST IS ANOTHER
PROBLEM. CALIFORNIA WE HAVE THE
THIRD HIGHEST WORKERS COSTS IN
AMERICA WELL AHEAD OF COMPETING
STATES LIKE OREGON, FLORIDA,
TEXAS AND EVEN TRADITIONALLY
HIGH COST STATES LIKE NEW YORK,
NEW JERSEY AND ILLINOIS, ONE OF
THAT MOST RECENT TURN OF EVENTS
IN LABOR IS THE UNEMPLOYMENT
INSURANCE, WHICH WILL BECOME A
HUGE BURDEN TO CALIFORNIA HAS A
EMPLOYERS AS THE COST OF
UNEMPLOYMENT INSURANCE BENEFITS
PAID DURING COVID 19 PANDEMIC.
WILL BE BORN BY CALIFORNIA
EMPLOYERS IN FUTURE YEARS AS
UNEMPLOYMENT INSURANCE TAXES.
PAID BY EMPLOYERS WILL ESCALATE
TO REPAY THE NEARLY $20.20
BILLION DOLLAR DEFICIT IN OUR
STATE'S UNEMPLOYMENT INSURANCE
TRUST FUND. BARRING A RECESSION
OR FURTHER WORSENING OVER THE
RECESSION. CALIFORNIA EMPLOYERS
WILL PAY ESCALATING UNEMPLOYMENT
INSURANCE TAX RATES FOR THE NEXT
DECADE, CULMINATING IN AN ANNUAL
TAX OF MORE THAN $400 PER
EMPLOYEE UNTIL THE DEFICIT IS
PAID OFF, UNFORTUNATELY, APPEARS
THAT CALIFORNIA WILL SPEND LESS
THAN $4 BILLION OF ITS MATCH THE
BUDGET SURPLUS. TO PAY OFF THIS
BURDEN, AS MANY OF THE STATES
AROUND US HAVE DONE SO TO
ALLEVIATE THAT TAX BURDEN GOING
FORWARD ON EMPLOYERS AND
EMPLOYEES. OVERALL ON AVERAGE,
CALIFORNIA PRODUCER SPENT MOST
LABOR MOST ON LABOR, AVERAGING
$180,000 PER FARM, JUST ON LABOR
ALONE. AND, OF COURSE,
CALIFORNIA WE EMPLOY THREE TIMES
MORE AG WORKERS THAN ANY OTHER
STATE. AND OF COURSE, WE ALSO
LOOK AT THE COMPETITIVE
ADVANTAGE IN THE INVESTMENTS
WE'VE MADE AND HOW WE TAKE CARE
OF OUR EMPLOYEES. BUT IT SHOULD
BE NOTED THAT IN MEXICO, THE
MINIMUM WAGE IS $8.67 A DAY AND
THEIR SPECIALTY CROP SHARE OF
THE U. S MARKET, FRESH FRUITS
AND VEGETABLES HAS INCREASED
580% FROM 2000 TO 2020. AND
FORESEEABLY WILL CONTINUE TO
GROW, WHEREAS ALSO IN PERU,
WHERE IT'S A DOLLAR 77 AN HOUR
IN CHILE, 3 60. WE UNDERSTAND
THAT THEY HAVE DIFFERENT
ECONOMIES, BUT THOSE ARE JUST
THE REALITIES THAT WE FACE IN
THE MARKET AS WE COME, UH, THE
INTERNATIONAL MARKET. WE CANNOT
COMPETE IN THE GROCERY STORES
ARE FOOD PRICES WILL ALWAYS BE
HIGHER THAN THE FOREIGN IMPORTS
FROM THIS REGION. ADDITIONALLY
ALSO WE ARE ADJUSTING TO
OVERTIME WAGES, AND WE KNOW THAT
THOSE WILL CONTINUE TO RISE AS
WELL. ACKNOWLEDGED THAT
AGRICULTURE IS NOT A 9 TO 5 JOB
DURING THE HARVEST SEASON, BUT
WE CONTINUE TO STRUGGLE TO ADAPT
TO OVERTIME, WHILE OTHER STATES
WHO HAVE ADAPTED OVER TIME FOR
AGRICULTURE EMPLOYEES HAVE MAYBE
TAKEN A MORE CREATIVE OR MORE IN
DEPTH. LOOK AT HOW THEY CAN MAKE
THAT WORK. IT IS TIME FOR
CALIFORNIA TO REVIEW WHERE THAT
HAS LEFT OUR EMPLOYEES AND WHERE
HAS LEFT OUR EMPLOYERS IN TERMS
OF ADAPTING TO OVERTIME PAY FOR
AG WORKERS. ENERGY SUFFERING
FROM COST AVAILABILITY AND
RELIABILITY. I THINK IT'S
IMPORTANT TO NOTE LAST YEAR, C
BERKELEY STUDY FOUND PGD
CUSTOMERS PAY ABOUT 80% MORE PER
KILOWATT HOUR THAN THE NATIONAL
AVERAGE. AH EDISON'S 45% MORE IN
SAN DIEGO GAS ELECTRIC IS DOUBLE
EACH UTILITY NOW HAS DOUBLE
DIGIT ANNUAL RATE INCREASES THAT
ARE ONLY EXPECTED TO RISE AS
WILDFIRE SPENDING INCREASES IN
STATEWIDE ELECTRICAL INITIATIVES
PUSH STRAIGHT SKYWARDS, THE
AVERAGE ELECTRIC AGRICULTURAL
CUSTOMER RATE FOR PG AND E IS 29
CENTS A KILOWATT HOUR. THAT'S A
ALMOST A 9% INCREASE FROM JUST
JUST LAST JANUARY. CUSTOMER
INTERCONNECTION APPLICATION
TIMELINES TO BECOME MORE
ELECTRIFIED ON OUR FARMS ARE
BETWEEN 12 TO 18 MONTHS, AND
SOME ARE AS FAR OUT AS TWO YEARS
WITH THE PRESSURE ON CUSTOMERS
TO ELECTRIFY OPERATIONS.
QUESTIONS ARISE AS TO WHETHER
THE UTILITY INFRASTRUCTURE IS
SUFFICIENT TO SUPPORT THOSE
REQUIREMENTS. WE ALSO KNOW. IN
CALIFORNIA WE HAVE UNIQUE
RESTRICTIONS, INHIBITING AND
COMPETING, NOT ONLY OTHER
COUNTRIES BUT FROM OTHER STATES
AS WELL TO DO TO OUR INCREASING
UNIQUE RESTRICTIONS, FOR EXAMPLE
, AS LEGISLATION CONTINUES TO
THREATEN THE AVAILABILITY OF
PESTICIDES, FARMERS MUST DEAL
WITH THE FALLOUT OF DECREASED
YIELDS AND ARE LEFT DEFENSELESS
SHOULD A MASSIVE PEST EVENT
PRESENT ITSELF, ACCORDING TO THE
UNITED NATIONS. LATEST DATA 40%
OF CROPS ARE LOST TO PESTS AND
DISEASES. AS THE SPECTER OF
EMPTY SHELVES, FOOD SHORTAGES
AND INCREASED FOOD ASSISTANCE
PROGRAMS ARE ONCE AGAIN
HIGHLIGHTED IN THE MEDIA. THIS
IS NOT THE TIME TO MAKE
CALIFORNIA FARMERS LESS
PRODUCTIVE. REGULATIONS SUCH AS
PROPERTY TO AND NOW THE MOST
RECENT PROP 12 HAVE HAVE TO
COMPLIANCE COSTS FOR FARMERS ON
ESTABLISHING MINIMUM CARDS FOR
CONFINING CERTAIN FARM ANIMALS.
ACCORDING TO U. C. DAVIS IS
THESE COSTS WILL HAVE PUT THE
FIGURE AT ABOUT 8% HIGHER FOR
PORK PRODUCERS WERE NOT A HUGE
PORK PRODUCING STATE, BUT WE DO
HAVE SOME PORK PRODUCERS. IT
SHOULD BE NOTED THAT IT WILL
COST UPWARDS AROUND 6% INCREASES
IN GROCERY PRICES TO COMPLY WITH
PROP 12 FOR OUR CONSUMERS WILL
PAY. THEY WILL ALSO COST
CALIFORNIA PARCHMENT OF FOOD AND
AGRICULTURE. $10 MILLION EXTRA
ANNUALLY TO ENFORCE THIS
MEASURE. I CLOSE WITH THIS,
ACCORDING TO A WELL MENTIONED
STUDY. I'VE MENTIONED MANY TIMES
OFTEN DO STUDY DONE BY CAL POLY
AGRIBUSINESS DEPARTMENT. IT WAS
FOUND THAT THE COST OF
PRODUCTION FOR LETTUCE ROSE
24.8% BETWEEN 2006 AND 2017.
THAT WAS THE COST OF PRODUCTION
SEED FERTILIZER WATER, HOWEVER,
AT THE SAME TIME, WELL
REGULATORY COMPLIANCE COSTS FOR
THAT SAME CROP HAVE RISEN 795.
AGAIN THE STUDY WAS DONE IN 2017
. I CAN TELL YOU, UM, IT HAS NOT
THAT THE COST OF HAS NOT GONE
DOWN AND DOING BUSINESS AND WE
LOOK FORWARD TO FARMER TO
UPDATING THAT STUDY. WITH THAT
SAID, I THINK THE COMMITTEE
AGAIN. UM UH, FOR TACKLING THIS
SUBJECT, I THINK IS A LAST TIME
I WAS HERE. WE WERE TALKING
ABOUT THE PORTS ISSUE, WHICH
CONTINUES TO BE A PROBLEM. MAYBE
SOME SUCCESS ON THE HORIZON,
PARTICULARLY WITH CONGRESSMAN
GARAMENDI'S LEADERSHIP. AH! ON
THE OCEAN SHIPPERS REFORM ACT.
WE'RE SEEING POSITIVE STUFF
THERE, BUT GOING FORWARD, UH,
DISTRIBUTION. TRUCKING IMPORTS
WILL CONTINUE TO BE A PROBLEM.
BUT LIKE WITH ALL THESE ISSUES,
THERE IS NOT ONE SILVER BULLET.
THEY NEED TO BE TACKLED ONE AT A
TIME. AND THE BIGGEST THING WE
CAN ASK AT FARM BUREAU IS
ACTION. WE'VE SEEN A LOT OF BIG
BUDGET NUMBERS GO AROUND, AND
I'VE TOLD SOME IN THE
ADMINISTRATION A MASSIVE
SURPLUSES OUT THERE. BUT THE
MONEY MEANS NOTHING IF A PROJECT
CANNOT BE STARTED, AND
ESPECIALLY COMPLETED ON TIME,
AND FOR THE PEOPLE OF CALIFORNIA
AND YOUR FARMERS WHO LOOK
FORWARD TO WORKING WITH THIS
STATE AND THIS COMMITTEE GOING
FORWARD TO COME UP WITH REAL
SOLUTIONS. THANK YOU, CHAIRMAN
AND AS ALWAYS, JAMIE REALLY
APPRECIATE YOU BEING HERE AND
I'M SURE WE WILL HAVE QUESTIONS
AFTER THE SECOND PANELIST. THANK
YOU. UM AND THE, UM UH, SECOND,
THE SECOND MEMBER TO SPEAK HERE
ON THIS PANEL IS DOCTOR MR
DANIEL SUMNER. HE'S WITH THE
DEPARTMENT OF AGRICULTURE AND
RESOURCE ECONOMICS AT THE
UNIVERSITY OF CALIFORNIA. HE'LL
BE JOINING US VIA WEB X. SO MR
SUMNER, WE ARE READY WHEN YOU
ARE. THANK YOU FOR BEING WITH
US. THANK THANK YOU, MR CHAIRMAN
, VICE CHAIR AND I ALSO WANT TO
REINFORCE, UH THE STATEMENTS
MADE BY MR JOHANNSON. I THINK
HE'S SUMMARIZED VERY WELL. A
LIST OF CHALLENGES FACED IN
CALIFORNIA AGRICULTURE. UH HE
DIDN'T HAVE TIME TO LIST
EVERYTHING AND BUT BUT I THINK
YOU'RE GOING TO HEAR FROM FARM
PANELISTS IN THE NEXT PANEL AND
FROM SECRETARY ROSS AND OTHERS
LATER. I WANT TO TAKE A SOMEWHAT
DIFFERENT TAX BECAUSE I OFTEN
HEAR FROM PEOPLE AROUND THE
WORLD. OH CALIFORNIA AGRICULTURE
MUST BE SHEDDING SHUTTING DOWN.
YOU HAVE SUCH CHALLENGES THERE.
YOU CAN NO LONGER COMPETE. ISN'T
THAT RIGHT? I HEAR IT FROM
JOURNALISTS. I HEAR IT FROM
PEOPLE ALL OVER THE WORLD. AND
THE ANSWER IS NO. THE ANSWER IS
CALIFORNIA. AGRICULTURE IN FACT,
IS STRONG AND RESILIENT. DESPITE
ALL THE CHALLENGES THAT WE JUST
HEARD ABOUT ABOUT SOME OF THESE
ARE PERENNIALS, WE KNOW THAT
THERE HAVE BEEN LABOR CHALLENGES
. WE KNOW THAT DROUGHTS OR
REGULAR IMPACT. MR JOHANNSON
POINTED OUT THAT WE KNOW
DROUGHTS ARE COMING. UH AND WE
DO HAVE TO DO MUCH MORE TO PLAN
FOR THEM, AND WE HAVEN'T DONE
NEARLY AS WELL AS WE SHOULD. BUT
DESPITE THAT I WOULD ARGUE. WE
HAVE A KIND OF RESILIENCE IN
CALIFORNIA AGRICULTURE. UH THAT
, UH, THAT WE SHOULD BE VERY
PROUD OF, AND WE ARE. AND WE
SHOULD UNDERSTAND IT AND WHAT I
WANT TO EMPHASIZE IS AH! DESPITE
THIS YEAR'S ECONOMIC ISSUES,
MANY OF WHICH COULD HAVE BEEN
REPEATED FROM LAST YEAR, SOME OF
WHICH ARE NEW. AH! THERE THERE
ARE SHOCKS EVERYWHERE IN THE
SUPPLY CHAIN. AND ONE THING I
WANT TO REINFORCE IS THAT THINGS
THAT HAPPEN ON THE FARM AFFECT
JOBS OFF THE FARM. WE RECENTLY
DID SOME WORK IN THE SACRAMENTO
VALLEY, EMPHASIZING THOSE OFF
FARM JOB EFFECTS OF, UH OF
DROUGHT ON THE FARM. BUT AT THE
SAME TIME THINGS THAT HAPPEN OFF
THE FARM. GO BACK TO THE FARM
AND WHETHER IT'S THE COURT SLOW
DOWN, OR INTEREST RATES OR OTHER
PROBLEMS IN THE ECONOMY. UH, THE
WHOLE SUPPLY CHAIN IS LINKED.
AND ONE THING THAT MEANS IS THAT
AS AN AGRICULTURE COMMITTEE, YOU
REALLY MUST PAY ATTENTION TO
OTHER THINGS IN THE ECONOMY. SO
PUT PROCESSING COSTS THAT GO UP.
WHICH CHALLENGES ON THE FARM.
THEY HAVE TO LOWER PRICES FOR
FARMERS HERE IF IT'S MORE
COSTLY. EITHER PROCESS TRANSPORT. TO GET OUR CROPS AND OUR
LIVESTOCK PRODUCTS TO CONSUMERS.
UH THE STUDY THAT WAS JUST
MENTIONED ABOUT PROPOSITION 12,
WHICH, OF COURSE, ALSO AFFECTS
THE EGG INDUSTRY IN A BIG WAY OF
THE EGG INDUSTRIES IS LARGER
THAN THE CALIFORNIA PORK
INDUSTRY. THAT'S THE STUDY THAT
I WORKED ON. AND ONE OF THE
MAJOR POINTS OF THAT STUDY WAS
TO SAY WHEN YOU DO SOMETHING IN
THAT CASE HAD TO DO WITH A
FARMER, MOSTLY WITH FARM
HOUSING. BUT IT IMPOSES COSTS
ALL THE WAY ALONG THE SUPPLY
SYSTEM AND AFFECT MOST OF THE
COSTS FOR CONSUMERS. WERE THE
INCORRECT COSTS. IMPOSED ON
PROCESSING. TRACEABILITY KEEPING
TRACK OF WHERE PRODUCTS ARE IN
THE SUPPLY CHAIN AND HAVE THEY
MET THE REGULATORY CONSTRAINTS
NEEDED. AH! I WANT TO FURTHER
EMPHASIZED THAT BESIDES THE
DEFINITION OF COMPETITIVENESS
HERE MEANS NOT ONLY, UH,
COMPETITIVENESS ON THE FARM, BUT
ALL ALONG THE SUPPLY CHAIN. AND
IT ALSO MEANS COMPETITIVENESS
AMONG CROPS. AND ONE THING ABOUT
CALIFORNIA IS OUR FLEXIBILITY.
FOR EXAMPLE, WE'VE SEEN TRINA AT
ACREAGE IN THE LAST GENERATION.
NOW EXCEED TOTAL FIELD CROP
ACREAGE IN THE STATE. IT'S UP
OVER THREE MILLION ACRES. UH,
HAS AND WHAT WE'VE SEEN AS A
REPLACEMENT. COTTON ACREAGE HAS
GONE DOWN. ALMOND ACREAGE.
PISTACHIO ACRES HAS GONE UP.
SIMILARLY WITH SOME VEGETABLES,
THE SAME SORT OF TRANSFORMATIONS
HAPPEN. THAT RESILIENCE THAT
WILLINGNESS TO ADJUST AND
CHANGE. IS WHAT KEEPS CALIFORNIA
AGRICULTURAL COMPETITIVE. AND SO
THERE MAY BE CROPS. OVER THE
NEXT 20 YEARS. THERE CERTAINLY
WILL BE CROPS THAT ARE LESS
COMPETITIVE THAN THEY ARE NOW.
WHAT DOES THAT MEAN? IT MEANS
THAT CALIFORNIA AGRICULTURE WILL
ADJUST WHAT WE GROW. THAT'S BEEN
GOING ON FOR GENERATIONS. IT
WILL CONTINUE TO GO ON. AND IN A
CRUCIAL PART OF THAT. IS TO
ALLOW CALIFORNIA AGRICULTURE TO
REMAIN INNOVATIVE. AND A LOT OF
THAT INNOVATION REALLY IS OUR
SCIENCE. AH NO PRODUCTION, FOR
EXAMPLE, STILL THE LARGEST
COMMODITY IN CALIFORNIA
AGRICULTURE. THROUGH THE AMAZING
RATES UP UNTIL ABOUT 15 YEARS
AGO. AND MILK PRODUCTION HAS
BEEN FAIRLY STEADY SINCE THEN.
ONE. SOME PEOPLE ASK. HOW IS
MILK PRODUCTION STAY COMPETITIVE
IN CALIFORNIA, AND THE ANSWER IS
SCIENCE AND INNOVATION. THE SAME
THING WITH THE OTHER CROPS THAT
WE'RE GOOD AT. SO I WOULD SAY
THE MOST IMPORTANT THING. FOR
THIS COMMITTEE AND FOR THE
CALIFORNIA STATE GOVERNMENT. IS
TO MAKE SURE WE STILL HAVE THE
OPPORTUNITY TO INNOVATE. AND
REGULATIONS ARE A BIG PART OF
THAT IN MR JOHANNSON EMPHASIZE
THAT AND I WANT TO REINFORCE IT.
UH IF THE CALIFORNIA GOVERNMENT
WILL ALLOW FARMERS TO COMPETE,
THEY WILL BE COMPETITIVE. AND
WHAT I MEAN BY THAT IS BOTH
TECHNOLOGY. AND THE AND ALLOWING
FARMERS TO MAKE THE ADJUSTMENTS.
THEY NEED TO MAKE SOME OF THAT.
IS SIMPLY APPLYING SCIENCE,
SOMETHING THAT THE UNIVERSITY OF
CALIFORNIA CONTRIBUTES, AS DOES
CAL POLY IN THE STATE UNIVERSITY
SYSTEM. AH CONTRIBUTING OF THE
KIND OF INNOVATION THAT THAT IS
ALLOWED CALIFORNIA AGRICULTURE
TO THRIVE. I WANT TO MENTION
THAT ESPECIALLY IN THE CONTEXT
OF CLIMATE CHANGE. I WOULD
ARGUE. THAT. IF THEY'RE ALLOWED
TO CALIFORNIA FARMERS AND
RANCHERS AND THE REST OF THE
SUPPLY SYSTEM. WILL ACTUALLY DO
BETTER. AT SUPPLYING THE WORLD
WITH THE FOOD. AND FIBER AND
OTHER AGRICULTURAL PRODUCTS THAT
NEEDS THEN. MOST OTHER PLACES
THAT WE COMPETE AGAINST AND THE
REASON IS OUR FARMERS ARE HIRED
FARM WORKERS. OUR SCIENTISTS AND
OTHERS THROUGHOUT THE SUPPLY
CHAIN THAT HAVE A TRADITION OF
INNOVATION. CLIMATE CHANGE WILL
PUT THAT MUCH MORE PRESSURE ON
ALL OF US. TO INNOVATE. AND THE
CALIFORNIA STATE GOVERNMENT CAN
PLAY A WONDERFUL ROLE IN
FACILITATINGTHAT INNOVATION IN
ITS MOSTLY. NOT BLOCKING
INNOVATIONS, AND I WANT TO
EMPHASIZE THAT THERE IS ALSO A
ROLE IN PERHAPS FUNDING AND SOME
OTHER THINGS THAT THE EMPHASIS I
WANT TO PLACE IS ALLOWING
FARMERS TO DO WHAT THEY DO BEST
AND THAT IS TO INNOVATE TO MEET
CLIMATE CHANGE CHALLENGES, AS
WELL AS THE OTHER CHALLENGES
THAT WE'VE HEARD. LET ME STOP
THERE. I KNOW YOU'VE GOT A LONG
HEARING, AND I WANT TO GIVE YOU
PLENTY OF TIME TO GET TO ASK
QUESTIONS AND TO GET THE OTHER
PANELISTS. WELL, MR SUMNER.
THANK YOU SO MUCH FOR BEING WITH
US ONCE AGAIN, AND THIS TIME
I'LL OPEN UP TO THE MEMBERS OF
THE COMMITTEE THAT ARE HERE FOR
ANY QUESTIONS. SEE THAT I DO
HAVE ONE QUESTION. UM AND THAT
IS, YOU KNOW UM, IN LIGHT OF
WHAT UH, HAS BEEN MENTIONED AND
DISCUSSED THUS FAR, YOU KNOW
WHAT ARE SOME OF THE ECONOMIC
FORCES OUTSIDE OF CALIFORNIA
IMPACTING OUR STATE'S
AGRICULTURAL ECONOMY, SO MAYBE
WE'LL START WITH MR JOHANSSON.
WELL, CERTAINLY, UH, FEED COSTS
FOR OUR LIVESTOCK. CERTAINLY
WHAT YOU KNOW MOST OF OUR FEED
FOR OUR LIVESTOCK. A LOT OF IT
DOES COME FROM FROM THE MIDWEST.
SO PLAYS IN A ROLE THAT WOULD
ALSO INCLUDE AGRICULTURE AND
ENERGY INTENSIVE. INDUSTRY NO
MATTER WHERE YOU ARE IN THE
UNITED STATES, SO THOSE COSTS
CERTAINLY, UM, ARE PLAYING INTO
EFFECT WITH OUR FERTILIZER COSTS
LIKE PREVIOUSLY MENTIONED JUST
IN TERMS OF THE COST OF
ELECTRICITY, NATURAL GAS PRICES
WE HAVE DETERMINED IN CALIFORNIA
, MAYBE TO CUT BACK ON THOSE
SUPPLIES. BUT GOING FORWARD. WE
STILL NEED THEM IN AGRICULTURE
AND TELL THE TECHNOLOGY CATCHES
UP, AND NO ONE HAS ADAPTED
QUICKER AND I BRING THIS UP IN
TERMS OF ELECTRIFICATION KNOWN
AS EMBRACED, UM I'LL ALTERNATIVE
SUSTAINABLE ENERGY SOURCES LIKE
THE CALIFORNIA FARMER AT ONE
TIME LAST I SAW WE WERE WE HAD
TWICE AS MUCH RENEWABLE ENERGIES
ON OUR FARMS AS THE NEXT TWO
LARGEST STATES TWICE AS MUCH AS
THE NEXT TWO LARGEST STATES IN
AMERICA. WE'VE EMBRACED THAT
TECHNOLOGY, BUT IT DOES NOT MEET
ALL OF OUR NEEDS AROUND THE
CLOCK, AND THEN WE FACTOR IN,
UM, POWER SHUTDOWNS. WE DO NEED
TO HAVE A RELIABLE SOURCE OF
POWER. SO THOSE REALLY TWO
BIGGEST ONES, OF COURSE
FERTILIZERS WAS WAS A HUGE IS
CONTINUED TO BE A HUGE INJURY
ISSUE THIS YEAR WILL BE
ACCORDING TO THE UNITED NATIONS
GLOBALLY, SO LET'S CONTINUE TO
SEE MORE PRESSURES AGAIN BECAUSE
OF OUR DEPENDENCE ON SOME OF OUR
FERTILIZER NEEDS COMING FROM
OVERSEAS, PARTICULARLY IMPACTED
WITH WHAT'S HAPPENING IN RUSSIA
AND UKRAINE IS IT'S REALLY THE
TWO BIGGEST ONES WOULD BE IN
TERMS OF THE ENERGY REQUIRED TO
FARM IN CALIFORNIA. GOT IT.
THANK YOU, MR JOHANSSON. LET ME
ADD JUST VERY QUICKLY INTEREST
RATES OR SOMETHING THAT SHOULD
BE ON EVERYBODY'S MIND.
CERTAINLY THERE ON THE MIND OF
FARMERS IN CALIFORNIA. AH WITH
THE INFLATION WE'VE BEEN FACING
. OF COURSE, THE FED HAS BEEN
INTERESTED IN JUST INCREASING
INTEREST RATES THOSE OF FILTERED
THROUGH AND EVERYTHING ELSE AND
THE REASON I EMPHASIZED THAT IS
A LOT OF CALIFORNIA AGRICULTURE
, TREE NUTS AND TREE FRUITS AS
WELL AS INVESTORS. OTHER
INVESTMENTS ON THE FARM ARE OR
OR OR CAPITAL INTENSIVE. AND
CAPITAL IS MORE EXPENSIVE AS
INTEREST RATES RISE ONE OF THE
THINGS THAT HAD THE TREE NUT
REVOLUTION IN CALIFORNIA THE
MASSIVE EXPANSION OF TRINA THE
ACREAGE WAS A AH A LONG PERIOD
OF LOW INTEREST RATES. I DON'T
THINK ANYBODY REALLY KNOWS WHERE
INTEREST RATES ARE GOING, JUST
LIKE NOBODY REALLY KNOWS WHERE
INFLATION'S GOING OVER THE NEXT
FEW YEARS. SOMETHING WE ALL NEED
TO KEEP OUR EYE ON ON AND IT'S
SOMETHING THAT AFFECTS ARE
COMPELLED WITH WITH OTHER PLACES
. ONE THING THAT HELPS OUR
COMPETITIVENESS. IS THAT WE HAVE
SUCH A STRONG CAPITAL MARKET FOR
AGRICULTURE HERE IN CALIFORNIA
AND THE UNITED STATES. AND THAT
HELPS US COMPETE WITH OTHER
MEDITERRANEAN CLIMATES AS YOU,
MR CHAIRMAN, INDICATED. AND SO,
UM, MACROECONOMIC MANAGEMENT,
INFLATION AND INTEREST RATES ARE
ALSO CRUCIAL FOR AGRICULTURE. I
THANK YOU SO MUCH FOR THAT AND
I'LL TURN IT OVER TO SOME OF THE
MEMBER MATHIS. JUST NEITHER ONE
OF THE PANELISTS CAN ANSWER SOME
OF THE NUMBERS THAT WE'VE SEEN
IS THAT CALIFORNIANS ARE EATING
AROUND 24% LESS FRESH FRUITS AND
VEGGIES. WHAT IS THE IMPACT ON
THAT? I MEAN IS THAT IS THAT
MORE OF A COST THING IS THAT YOU
KNOW, BECAUSE WE'RE SEEING MORE
IMPORTS COME IN, ACTUALLY SEEN,
UH, VICE CHAIRMAN AT THIS, UM
THAT WE'RE EATING MORE, WHICH IS
ENCOURAGING, BUT YET, YOU KNOW,
IS IT MORE THAN 20 FORNEY IN OR
IS IT? I GUESS YOU HAVE TO
AFRAID IT COULD BE LESS
CALIFORNIA FRESH FRUITS BECAUSE
WE DON'T WE HAVE MORE IMPORTS
COMING IN. BUT I DO SEE
CONSUMPTION UP, WHICH SPEAKS TO
THE FACT THAT WHAT CALIFORNIA
AGRICULTURE DOES BEST IS
PRODUCED FOR CONSUMPTION NEED
AND DEMAND. SO IF WE SEE THOSE
NUMBERS COMING UP, PEOPLE ARE
EATING HEALTHIER. UM CAN WE
COMPETE? AND CAN WE PARTICIPATE
IN THAT? OR IS THAT SOMETHING
THAT WE SUCCEED TO OUR
COMPETITION AROUND THE GLOBE?
AND THE ECONOMISTS MADE DR
SUNDER MAY ACTUALLY KNOW HAVE
SEEN. YEAH ME TOO, BECAUSE WE
DID A LOT OF WORK ON THE FRESH
OTHERS PROGRAM FOR THE SCHOOLS
AND EVERYTHING ELSE. SO I MEAN,
THESE ARE COST EFFECTIVE THINGS
TO GO ALL THE WAY DOWN TO OUR
KIDS. AND YOU KNOW, ONE IN EIGHT
KIDS GOING HUNGRY EVERY NIGHT
AND ALL THESE OTHER THINGS SO
THAT'S WHY I ASK AND IT'S
CERTAINLY AN IMPORTANT ISSUE FOR
CALIFORNIA AGRICULTURE, I WOULD
I WOULD EMPHASIZE IS TO
RECOGNIZE THAT OUR MARKETS ARE
GLOBAL FOR CALIFORNIA
AGRICULTURE AS WELL. WE KNOW THE
VERY LARGE SHARES OF TREE NUTS,
EXPORT EXPORT, UM OUR WINE
GRAPES OR TABLE GRAPES. CANADA'S
A HUGE MARKET FOR US, SO WE NEED
TO, WE THINK IN CALIFORNIA
AGRICULTURE ABOUT GLOBAL MARKETS
, NOT JUST OUR COMPETITION FROM
IMPORTED PRODUCTS. OUR ALSO OUR
EXPORTED PRODUCTS, AND THERE'S
NOTHING WRONG WITH COMPETITION
IS WE EXPAND, FOR EXAMPLE,
PISTACHIO ACREAGE. WE TAKE SOME
ACREAGE OUT OF OTHER CROPS.
THAT'S A NATURAL THING TO
HAPPEN. AH! FRUIT AND VEGETABLES
ARE NOW AVAILABLE YEAR AROUND IN
WAYS THAT THEY WEREN'T BEFORE
THE DAIRY INDUSTRY IN CALIFORNIA
IS A GREAT SUCCESS IN THAT WAY.
WHAT WE USED TO THINK OF AS A
SEASONAL CROPS LIKE
STRAWBERRIES. NOBODY THINKS THAT
STRAWBERRIES OR ANY BERRIES.
IT'S EASILY ANYMORE. THEY'RE ALL
THERE ON THE SHELVES YEAR AROUND
SOME OF THAT IS IMPORTS. MUCH OF
IT IN THE CASE OF BERRIES IS
FROM RIGHT HERE IN CALIFORNIA.
THOSE ARE GREAT THINGS FOR US. I
DO THINK THE COST OF FRESH
FRUITS AND VEGETABLES ARE OR AN
ISSUE FOR LOTS OF CONSUMERS. AH!
HMM. I DON'T HAVE A SOLUTION TO
THAT ONE OF THE THINGS WE'VE
DONE HERE IN CALIFORNIA IS
RAISED WAGE RATES FOR HIRED FARM
WORKERS. EVERYBODY WANTS FIRED
FARM WORKERS TO MAKE HIGHER
WAGES. BUT UNLESS WE RAISE
PRODUCTIVITY ALONG WITH THAT IT
HAS TO INCREASE THE COST OF
FRESH FRUITS AND VEGETABLES. I
WORK ON FARM BUDGETS QUITE
OFTEN. WERE YOU? WE HEARD
STATEMENTS ABOUT PRODUCE PRICES
VERY PRICES. THE BIGGEST COST
FACTOR FOR EVERY ONE OF THOSE
ITEMS IS HIRED FARM LABOR.
THAT'S EVEN MORE TRUE FOR THE
TREE CROPS WHERE PEOPLE ARE
HARVESTING IS ON LADDERS, SO
WE'RE HARVESTING COSTS OR TIME
TO GO HARD HANDLE LABOR. UH
INCREASING WAGE RATES MAKE THOSE
MORE EXPENSIVE AND THEY MAKE IT
THAT MUCH MORE COST PROHIBITIVE
FOR CONSUMERS IS SOMETHING WE
ALL NEED TO WORK ON. I HAVE LOTS
OF SCIENTISTS, FRIENDS,
ENGINEERS THAT ARE WORKING ON
THAT THAT ISSUE EVERY DAY. LET'S
PUT IT. IT'S A REALLY TOUGH NUT
TO CRACK. AND UM AND IT'S ONE
MORE PLACE WHERE INNOVATION IS
NEEDED. AND ONCE AGAIN I'D LIKE
TO THANK OUR FIRST PANEL. WE
HAVE TO MOVE ON TO OUR SECOND
PANEL, BUT I REALLY APPRECIATE
YOU MAKING THE TIME TO BE HERE
THIS AFTERNOON. JAMIE AND, UH,
MR SUMNER. THANK YOU SO MUCH.
YOU. AND SO OUR SECOND PANEL IS
HERE TO TALK ABOUT THE IMPACTS,
UM, THAT ARE BEING EXPERIENCED
TO OUR FARMERS AND RANCHERS HERE
IN CALIFORNIA, AND I LIKE TO
INVITE UP OUR FIRST PANELIST TO
SPEAK, WHO IS HERE IN PERSON
THAT IS BLAME. CARRION. I
BELIEVE WHO IS THE VICE
PRESIDENT OF, UM OF DESERT FRESH
INK. AND SO BLAME WELCOME. AND
THANKS FOR BEING HERE. GOOD
AFTERNOON, MR CHAIR AND MEMBERS
OF THE COMMITTEE. MY NAME IS
BLAINE CARRYING. I AM A THIRD
GENERATION FARMER. MY
GRANDFATHER FLED EASTERN EUROPE
IN 1916, EVENTUALLY SETTLING IN
CALIFORNIA. MY INVOLVEMENT IN
THE AGRICULTURAL INDUSTRY
STARTED IN 1975 WORKING AT THE
FAMILY BUSINESS. IN 1982. I
STARTED MY OWN COMPANY BUYING
CROPS ON THE VINE, EVENTUALLY
RENTING AND BUYING VINEYARDS.
THE SUCCESSOR COMPANY TO MY
ORIGINAL BUSINESS JUST CEASED
OPERATIONS. I NOW CONSULT ON A
FULL TIME BASIS. I'M INVOLVED IN
THE FOLLOWING ORGANIZATIONS. I'M
CHAIR OF THE DESERT GRAPE
ADVISORY COMMITTEE, WHICH THE
MINISTERS ARE FEDERAL MARKETING
ORDER IN COACHELLA VALLEY FOR
TABLE GRAPES. VICE PRESIDENT AT
COACHELLA VALLEY RESOURCE
CONSERVATION DISTRICT, A BOARD
MEMBER OF GROWING COACHELLA
VALLEY, WHICH IS A FIVE OH ONE C
THREE AND A BOARD MEMBER OF THE
GREATER COACHELLA VALLEY CHAMBER
OF COMMERCE. I WANT TO THANK YOU
FOR THE OPPORTUNITY TO
PARTICIPATE IN THIS
INFORMATIONAL HEARING TODAY. I'M
VERY PLEASED TO BE ABLE TO SHARE
WITH YOU MY PERSPECTIVES ABOUT
CALIFORNIA'S AGRICULTURAL
COMPETITOR COMPETITIVENESS.
CALIFORNIA'S CONSIDERED THE
AGRICULTURAL POWERHOUSE THE
UNITED STATES. THE OTHER
SPEAKERS HAVE DONE A GOOD JOB OF
FRAMING THE CALIFORNIA CULTURE
COMMUNITY'S CONTRIBUTION TO OUR
STATE'S ECONOMIC WELL BEING AND
GROWTH. WE HAVE A HUGE FOOTPRINT
IN TERMS OF AGRICULTURAL
COMMODITIES THROUGHOUT THE
COUNTRY IN THE WORLD. IN 2022,
CALIFORNIA AGRICULTURAL INDUSTRY
EMPLOYED MORE THAN 400,000
WORKERS, AND IT'S ESTIMATED THAT
THE VALUE CHAIN COULD ACCOUNT
FOR NEARLY THREE MILLION
ADDITIONAL JOBS IN CALIFORNIA
THROUGH ANCILLARY INDUSTRIES. IN
CALIFORNIA. WE ARE WE HAVE TO
KNOW AND UNDERSTAND WHAT'S
HAPPENED ALREADY TO RECOGNIZE
THE IMPACTS THAT WE ARE
EXPERIENCING IN REAL TIME, BUT
WE ALSO NEED A GAME PLAN GOING
FORWARD AND ATTEMPT TO DEVELOP A
PLAYBOOK THAT WILL MEET THE
NEEDS OF OUR INDUSTRY IN THE
YEARS TO COME. CALIFORNIA HAS
SOME OF THE MOST STRINGENT,
STATUTORY AND REGULATORY
FRAMEWORKS FOR LABOR, HEALTH,
SAFETY AND ENVIRONMENTAL
PROTECTIONS IN THE NATION AND
THE WORLD. IN MOST CIRCUMSTANCES
, THE CALIFORNIA LAWS AND
REGULATIONS FAR EXCEED THE
BASELINE REQUIREMENTS
ESTABLISHED AT THE FEDERAL
LEVEL. A DESIRE TO LEAVE THE
COUNTRY IN THESE AREAS COMES
WITH INEVITABLE EFFECTS THAT
THESE GOALS AND OBJECTIVES HAVE
ON IN STATE INDUSTRIES. THE
CALIFORNIA AG INDUSTRY HAS
HOULDERED THE DIRECT IMPACTS OF
MANY OF THESE ROBUST STATUTORY
AND REGULATORY FRAMEWORKS. AS A
RESULT, CALIFORNIA CULTURE FACES
A VERY CLEAR AND DISTINCT
COMPETITIVE DISADVANTAGE WITH
AGRICULTURAL PRODUCTION IN
COMPARISON TO OTHER STATES AND
COUNTRIES WHEN IT COMES TO
COMMODITY PRICING. GROWERS AND
PRODUCERS OUTSIDE OF CALIFORNIA
OUTSIDE THE UNITED STATES ARE
NOT REQUIRED TO COMPLY WITH THE
SAME OR IN MOST CASES, EVEN
COMPARABLE EMPLOYMENT, FOOD
SAFETY AND ENVIRONMENTAL
PROTECTION RULES. AND THEREFORE
THEY CAN GROW AND PRODUCE AND
SELL AGRICULTURAL COMMODITY
PRICES FOR UNDERCOAT, CALIFORNIA
GROWERS. FOR EXAMPLE, CONSIDER
THE EFFECT OF CALIFORNIA'S
REGULATORY FRAMEWORK ON IN STATE
GROWERS AND PRODUCERS WITH
RESPECT TO PESTICIDE USE.
CALIFORNIA HAS THE MOST
STRINGENT REGULATORY FRAMEWORK
REGARDING THE APPLICATION OF
PESTICIDES, WHICH FAR EXCEEDS
THE NATIONAL STANDARDS. THIS CAN
BE A SIGNIFICANT IMBALANCE THAT
THREATENS TO PUNISH TO PUSH
PRODUCTION AND JOBS OUTSIDE OF
THE STATE. I DON'T KNOW. I DON'T
WANT TO DWELL ON THE STATUTES
AND REGULATIONS THAT HAVE
ALREADY BEEN ENACTED, EVEN
THOUGH THESE FRAMEWORKS CREATED
SUBSTANTIAL DISADVANTAGE. WHAT
IMPORTANT WHAT'S IMPORTANT FOR
US NOW, THOUGH, IS THAT
CALIFORNIA TACKLES THE
CHALLENGES THAT LIE BEFORE US SO
WE DON'T KEEP ON PERPETUALLY
DISADVANTAGE ALIFORNIA
AGRICULTURE FOR YEARS TO COME.
WE COLLECTIVELY NEED TO DO A
BETTER JOB ON APPROVING WHAT
CALIFORNIA'S WATER AND DROUGHT
RESILIENCE. WE NEED WATER
SUPPLIES AND REQUISITE
INFRASTRUCTURE TO ENSURE THAT
OUR INDUSTRY AND OUR QUALITY OF
LIFE CAN BE SUSTAINED. PROP ONE
PASSED IN 2014, IN PART TO FUND
NEW RESERVOIR CONSTRUCTION YET
TO DATE, NOT ONE SHOVEL OF DIRT
HAS BEEN TURNED IN EIGHT YEARS.
WITH SACRAMENTO'S CLIMATE GOAL.
HOW WILL A ZERO AND A MISSION
AND MANDATE ELECTRICAL ELECTRIC
VEHICLE FLEET IMPACT CALIFORNIA
AGRICULTURE? WELL THIS
TECHNOLOGY EVEN BE FEASIBLE AT
THE FARM LEVEL. CAN WE
ACCOMMODATE THE COST OF THIS NEW
TECHNOLOGY? THESE ARE SOME OF
THE AREAS THAT WE HOPE YOU AS
CALIFORNIA POLICYMAKERS LOOK AT
IN THE COMING MONTHS TO ENSURE
THAT CALIFORNIA CAN SURVIVE.
SUGGESTED SOLUTIONS FOR YOUR
CONSIDERATION INCLUDE ENSURING
THAT PRODUCE SHIPPED INTO
CALIFORNIA MEETS THE SAME
RIGOROUS LABOR, FOOD SAFETY AND
ENVIRONMENTAL PROTECTION
STANDARDS AND REQUIREMENTS
IMPOSED ON CALIFORNIA GROWERS
AND PRODUCERS. IN MOST
CIRCUMSTANCES OUT OF STATE
AGRICULTURE PRODUCERS LEG FAR
BEHIND CALIFORNIA STANDARDS.
COMPARABLE STANDARDS ON OUT OF
COUNTRY PRODUCERS ARE
ESSENTIALLY NON EXISTENCE. WE
WOULD SUGGEST ADVANCE TO ADVANCE
A BY CALIFORNIA ETHIC BY
ENSURING THAT ALL CALIFORNIA
INSTITUTIONS PURCHASE ONLY
CALIFORNIA GROWN AND PRODUCED
AGRICULTURAL PRODUCTS WENT IN
SEASON. YOU HAVE THE ABILITY
WITH THE ENACTMENT OF A B 778 BY
ASSEMBLYMEMBER'S EDUARDO GARCIA
AND SB 13. OH, EIGHT BY CENTER
AND A CABALLERO TO MAKE
MEANINGFUL STRIDES IN THIS AREA
IN THE CURRENT LEGISLATIVE
SESSION, THANK YOU VERY MUCH AND
ONE AFTER THE OTHER PANELISTS.
I'M AVAILABLE FOR ANY QUESTIONS.
THAT'S GREAT. AND I REALLY
APPRECIATE YOU MAKING TIME TO BE
HERE, AND I'M SURE THAT WE WILL
HAVE SOME QUESTIONS AT THE END
OF THE PANEL. NEXT I'D LIKE TO
INVITE UP OUR SECOND PANELIST,
WHICH IS KING VANG WITH THE
FRESNO. UH B I P O C. UM UH IT'S
PRODUCE SO BANGING MR BANK IF
YOU ARE HERE I'VE SEEN HIM. OH,
SAYS IN PERSON HERE, BUT IS HE
REMOTE. MR BANG. ARE YOU WITH
US? IF NOT, WE COULD MOVE TO
OUR, UM FINAL SPEAKER THAT'S
SCHEDULED WHO'S WITH US VIA
WEBEX, WHICH IS TOM RICHARDS
WITH A BUTTE COUNTY GRASS FED
BEEF? UM, RANCHER? I'M HERE NOW
WITH US. OH, HE'S HERE.
FANTASTIC. FANTASTIC. WELL,
WELCOME. WANTED TO SEE IF YOU
GUYS WERE ON YOUR TOES. WELL,
WELCOME AND REALLY APPRECIATE
YOU BEING HERE WITH US THIS
AFTERNOON. UM WELL, THANK YOU.
THANK YOU FOR HAVING ME AND, UM
UM UH, THANK YOU, MR CHAIRMAN.
AND MEMBERS, UM I'M REALLY
GRATEFUL TO BE HERE. ACTUALLY
I'LL TELL YOU A LITTLE BIT ABOUT
MYSELF. UM SO MY NAME IS THOMAS
HENRY RICHARDS, THE FIFTH
ACTUALLY FIFTH GENERATION
CALIFORNIA. MY FAMILY. UH, THE
RICHARDS MOVED TO CALIFORNIA IN
18 89. AND MY GREAT GRANDFATHER
ACTUALLY PURCHASED OUR FAMILY
RANCH IN 1941. AND THEN ALSO OUR
FAMILY. UM IF YOU GUYS ARE
FAMILIAR WITH RICHARD'S
BOULEVARD, MY FAMILY RAN THE
CANNERY THAT WAS ON THAT STREET
FOR DECADES. SO MY, AND ACTUALLY
I'M HERE WITH MY TWO SISTERS WHO
ARE BEHIND ME, NOEL AND CARRY
AND SO THE THREE OF US HAVE BEEN
A PART OF CALIFORNIA AGRICULTURE
FOR A LONG TIME, SO WE WERE IN
FOOD PROCESSING FRUITS AND
VEGETABLES. AND THEN, UM, NOW
AND MAINLY IN CATTLE AND BEEF
PROCESSING. AND SO UM ABOUT, UH,
I THINK EIGHT YEARS AGO. WE WERE
LOOKING AROUND AT OUR RANCH AND
TRYING TO DECIDE WITH A CATTLE
PRICE THAT WAS GOING DOWN AND
ALL SORTS OF CHALLENGES. HOW WE
COULD REALLY SURVIVE. UM IN THE
IN THE CURRENT ENVIRONMENT IN
CALIFORNIA. SO WE DID WHAT YOU
KNOW ANY RANCHER WOULD AND WE
JUST DECIDED TO START A BEEF
COMPANY. RIGHT? WHY NOT? AND SO
EIGHT YEARS AGO, WE STARTED BEEF
COMPANIES CALLED RICHARDS GRASS
FED BEEF. AND WE SELL OUR
PRODUCT TO, UM SCHOOLS,
HOSPITALS, GROCERY STORES,
BUTCHER SHOPS. UM. AND A LOT OF
FOOD SERVICE ACCOUNTS WHERE ALSO
WORKED VERY CLOSELY AND ARE A
PART OF THE, UH, FREE THE FREE
LUNCH PROGRAM, THE FARM TO
SCHOOL MEALS FOR ALL PROGRAM.
ALSO THE FARM TO INSTITUTE
PROGRAM, WHICH GOES TO HOSPITALS
AND OTHER LARGE INSTITUTIONS.
AND, UH, RECENTLY AS A PART OF
THIS EFFORT, WE HAD A MEETING AT
OUR RANCH, WHERE THE FIRST
PARTNER JENNIFER NEWSOME, JOINED
WITH ABOUT 20 BUYERS FROM
CALIFORNIA SCHOOL DISTRICTS FROM
NORTHERN CALIFORNIA ALL THE WAY
TO SOUTHERN CALIFORNIA. AND WE
TALKED TO THEM ABOUT UM, YOU
KNOW, REALLY, WHAT MAKES OUR
PROGRAM DIFFERENT? AND THAT'S
WHY I'M HERE TODAY. WHAT MAKES
OUR PROGRAM DIFFERENT, WE
BELIEVE IS THAT WE'RE AMERICAN
GRASS FED CERTIFIED. AND THEN WE
ALSO ARE REGENERATIVE CERTIFIED
, WHICH MEANS ARE BUSINESS
PRACTICES ARE GRAZING PRACTICES
IMPROVE THE ENVIRONMENT,
SEQUESTER CARBON AND WE, YOU
KNOW, SCIENTIFICALLY CERTIFY
THAT SO THAT HAS BEEN A KIND OF
ONE OF THE WAYS THAT WE'RE
TRYING TO CHANGE AND MAKE
IMPROVEMENTS. AND IN AGRICULTURE
IN GENERAL, NOT JUST IN
CALIFORNIA. SO WHY I'M HERE WITH
YOU TODAY IS AT THE MEETING THAT
WE HAD AT OUR FAMILY RANCH BACK
IN APRIL. UM WHEN ALL THOSE
PEOPLE WERE THERE, UM, I MET
RACHEL O'BRIEN. AND WE STARTED
TALKING ABOUT ISSUES THAT WE
WERE FACING. AND SHE SAID, WELL,
WHY DON'T YOU COME AND TALK TO
LEGISLATURE, AND I SAID, GREAT.
TELL ME WHEN SO. THE REASON THE
REASON I'M HERE, AND THE THING I
WANT TO FOCUS ON IS VERY
PARTICULAR TO US, BUT I THINK UH
, THE FORMAL FORMER SPEAKERS
REALLY HIT ON EVERYTHING ELSE
THAT WE'RE DEALING WITH, BECAUSE
WE'RE DEALING WITH ALL OF THE
SAME PROBLEMS. BUT THE ONE THING
I WANTED TO TALK ABOUT TODAY IS
REALLY INFRASTRUCTURE. SO WHEN
IT COMES TO GETTING A POUND OF
BEEF, OR OR, YOU KNOW AN ANIMAL
PROCESSING TO BEEF AND GETTING
THAT PRODUCT TO A CUSTOMER, IT'S
A LONG ROAD AND IT'S A VERY
EXPENSIVE ROAD. SO AND I WANTED
TO BE VERY SPECIFIC IN TERMS OF
HOW I DESCRIBED THAT. SO I'M
GOING TO GIVE YOU AN EXAMPLE. SO
ONE OF OUR CUSTOMERS IS SAC
COOP. IF YOU GUYS YOU KNOW, LIVE
IN TOWN. YOU PROBABLY SHOPPED
THERE. SO THEY ARE APPROXIMATELY
72 MILES FROM OUR RANCH, WHERE
MANY OF THE CATTLE THAT WE
PROCESS OR RAISED, HOWEVER,
THOSE CATTLE HAVE TO TRAVEL OR
THE OR ALL OF IT, THE CATTLE AND
THE BEEF AND THE WHOLE PROCESS
CAN BE BETWEEN 500 MILES AND 800
. MILES DEPENDING ON WHERE THE
WHERE OUR CATTLE ARE, BECAUSE WE
MOVE THEM AROUND TO BASICALLY
CHASED THE GRASS AS THEY SAY IN
OUR BUSINESS, RIGHT? SO THAT
MEANS YOU KNOW WE HAVE 193 MILE
TRACK TO BRING THOSE CATTLE TO
SLAUGHTER. WE HAVE, UH UH, AFTER
THAT 188 MILE TRIP TO THE
DISTRIBUTION FACILITY, A 75 MILE
TRIP, YOU KNOW TO THE CUSTOMER.
UM AND IT CAN ALSO BE LONGER
THAN THAT, DEPENDING ON WHAT
LEVEL OF PROCESSING SECONDARY
PROCESSING. WE HAVE TO DO. SO
THE BIGGEST THING THAT THAT WE
WANTED TO TALK ABOUT IS ALL OF
THIS TRANSPORTATION, OBVIOUSLY,
AS MANY OF THE PANELISTS HAVE
POINTED OUT IS VERY EXPENSIVE.
IT'S NOT GOOD FOR THE
ENVIRONMENT. AND ALL OF THESE
THINGS, BUT THE OTHER FACTOR IN
THIS IS THAT EACH STEP IN THAT
PROCESS AH REQUIRES UH, A
VENDOR, A SEPARATE VENDOR AND
THEIR PROFIT MARGINS AND ALL
THESE OTHER THINGS, RIGHT? WHICH
MEANS EMPLOYEES AND INSURANCE
AND ALL THESE KINDS OF THINGS SO
ONE OF THE THINGS ABOUT
INFRASTRUCTURE AND WHEN I SAY
INFRASTRUCTURE, WE'RE TALKING
ABOUT PROCESSING FACILITIES.
PRIMARY SLAUGHTER, SECONDARY
PROCESSING, COLD STORAGE. AND
THEN AND THEN YOU THEN YOU WANT
TO TALK ABOUT THE LAST MILE,
RIGHT? HOW YOU GET A PACKAGE OF
BEEF OR A PALLET OR WHAT HAVE
YOU FROM YOUR WAREHOUSE TO THE
INDIVIDUAL CUSTOMERS. WE HAVE
SITUATIONS RIGHT NOW WHERE UH,
WE CANNOT GET TRUCKING COMPANIES
TO DELIVER TO CERTAIN CUSTOMERS
BECAUSE THE DELIVERY IS TOO
SMALL. AND THE PRICE OF DELIVERY
EXCEEDS THE VALUE OF THE
PRODUCT. SO THAT THE IMPACT ON
OUR BUSINESS IS LOST CUSTOMERS
AND ACTUALLY VERY, VERY
FRUSTRATED CUSTOMERS BECAUSE WE
CAN'T GET THE PRODUCT TO THEM.
WE AND EVEN IF WE WERE WILLING
TO PAY THE PRICE OF THE SHIPPING
OURSELVES THE TRUCKING COMPANIES
MIGHT, IT MIGHT BE AN OUT OF THE
WAY CUSTOMER. IT'S NOT PART OF A
PRIMARY ROUTE. SO THEY WON'T DO
IT. SO SOME OF THESE ISSUES, THE
OTHER THING I'LL MENTION WITH
RESPECT TO PROCESSING. THERE ARE
ABOUT A HALF A DOZEN PROCESSING.
PLANTS THAT ARE ACCESSIBLE BY US
IN CALIFORNIA. ONE OF THOSE IS
ACTUALLY IN NEVADA. AND THEN TWO
OF THEM CAN'T REALLY SCALE TO
OUR NEEDS. SO WE'RE REALLY
LOOKING AT THREE AND OUT OF THE
OTHER. 31 IS IN BARSTOW, WHICH
IS 600 MILES FROM US, AND THE
OTHER ONE IS IN Y RICA. SO WHEN
YOU TALK ABOUT HOW FOLKS LIKE US
SMALL INDEPENDENT PRODUCERS. ARE
ABLE TO GET THEIR PRODUCT TO
MARKET. THERE'S AN ENORMOUS
NUMBER OF CHALLENGES. AND THEN
ALSO WHEN IT COMES TO ONE OF THE
BIGGEST STRUGGLES WE ALSO HAVE
IS WITH RESPECT TO STORAGE
SPACE. SO, UM WE HAVE. WE HAVE
LOOKED HIGH AND LOW AND WORKED
WITH MANY REAL ESTATE FOLKS ON
FINDING, YOU KNOW, MID LEVEL
STORAGE SPACE. BUT. AS WE FOUND
OUT THE WHAT IS AVAILABLE AND
WHAT PEOPLE ARE BUILDING TWO IS
KIND OF THE AMAZON MODEL IS
100,000 PLUS SQUARE FEET. AND
THEN WE CAN'T YOU KNOW THAT'S
NOT SOMETHING THAT'S REALLY
ACCESSIBLE TO SOME OF THE
SMALLER PRODUCERS, AND SO WERE
WE RESORT TO LEASING? SPACE IN
LARGER FACILITIES AND AGAIN. THE. THEY THE MARGIN THAT WE HAVE
TO PAY THE MARGIN AND FOR ALL
SORTS OF EMPLOYEES AND THAT KIND
OF STUFF. SO ECO KIND OF WHAT?
UM I GUESS WHAT? WHY I WANTED TO
COME HERE AWAY. WE WANTED TO
COME HERE AND SPEAK WITH YOU IS
WE LOVE THIS STATE. WE WERE BORN
AND RAISED HERE. OUR FAMILY IS
VERY DEEP ROOTED HERE. AND WE
LOVE CALIFORNIA AGRICULTURE. WE
WANT TO SEE IT BASICALLY ASSESS
FEL, BUT IN TERMS OF OPERATING A
BUSINESS IN THIS STATE, WE HAVE
FOUND IT EXTREMELY DIFFICULT.
WHAT WE'VE GOT. WHAT WE'VE ALSO
FOUND IS THAT THE OTHER STATES
SURROUNDING STATES. NEVADA,
WYOMING. UM, ARE SO MUCH MORE
COMPETITIVE AND WE'VE DONE THE
MATH ON THIS. THERE'S SO MUCH
MORE COMPETITIVE THAT WE COULD
ACTUALLY TRUCK EVEN WITH GAS
PRICES THE WAY THEY ARE, WE
COULD TRUCK OUR CATTLE TO THESE
FACILITIES. AND STILL SAVE
MONEY. WE'RE TALKING ABOUT TWO
THIRDS REDUCTION AND COST 66%
REDUCTION AND COST. SO I THINK
WHAT? WHAT I OR WHAT WE WANTED
TO BRING TO THE COMMITTEE TODAY.
IS THAT I BELIEVE THE STATE
SHOULD BE IN SACRAMENTO SHOULD
BE THE FARM TO FORK CAPITAL. I
SEE IT ON THAT SIGN EVERY TIME I
DRIVE UP BY FIVE BUT WHEN? WHEN
WE'RE OPERATING A BUSINESS THAT
IS A PART OF THAT, AND WE'VE
BEEN TO THE BRIDGE DINNER AND WE
HAVE CELEBRATED ALL THAT. BUT
BUT I THINK IN ORDER FOR US TO
REALLY GET THERE. WE NEED YOUR
HELP. WE NEED. WE NEED SOME
INVESTMENTS TO BE MADE. WE NEED,
UM UH UM. A NUMBER OF DIFFERENT
LEVELS OF ASSISTANCE. AND THEN
REALLY, I THINK MAYBE NOT JUST
ASSISTANCE, BUT CONVERSATIONS
WHERE WE CAN SIT DOWN AND EVEN
WHITE BOARD AND DIAGRAM WHAT
WE'RE GOING THROUGH. AND TALK
WITH YOU GUYS ABOUT SOLUTIONS.
BECAUSE IT IS A COMPLEX PROBLEM,
AND THERE'S A LOT OF INPUTS. SO,
UM. YOU KNOW, MY GOAL TODAY WAS
REALLY TO JUST TO MAKE IT KIND
OF PERSONAL AND FOR YOU GUYS TO
KIND OF HEAR FROM A SINGLE
BUSINESS. AND, UM AND REALLY
UNDERSTAND THAT ON THE GROUND
PERSPECTIVE, IF YOU WILL UM I
MEAN, I THINK IN TERMS OF
SOLUTIONS. SO WE CHATTED A
LITTLE BIT ON THE WAY DOWN HERE
ABOUT SOLUTIONS. UM, SOMEBODY
MENTIONED UH, COST INPUTS. AH
COST INPUTS FOR CATTLE ARE
ENORMOUS AND IT'S UP FRONT AND
YOU'RE BUYING THESE CATTLE
OFTENTIMES 30 TO 45 DAYS BEFORE
YOU ACTUALLY GET PAID FOR THEM
OR OR EVEN MORE? SO THE CAPITAL
REQUIREMENTS ARE MASSIVE. AND
WITH INTEREST RATES, DOING WHAT
THEY'RE DOING. IT MAKES IT EVEN
MORE MORE DIFFICULT, IF NOT
IMPOSSIBLE. UM SO UM, LOANS AND
THINGS LIKE THAT ARE CRITICAL,
UM, FOR NOT JUST US, BUT
EVERYBODY IN THE AG SPACE. THE
OTHER THING I WOULD SAY IS I
KNOW AND SOME OF THESE
CONVERSATIONS WE'VE HAD BEFORE.
A LOT OF WHAT GETS BROUGHT UP IS
GRANTS. OH WELL, WE'VE GOT LOTS
OF GRANTS, AND SO WE'VE APPLIED
FOR THOSE WE'VE LOOKED AT. THOSE
WERE ACTUALLY WAITING TO HEAR
ON. I THINK ONE OR TWO RIGHT
NOW. UM THE ISSUE IS THOSE
THINGS TAKE TIME. THEY'RE VERY
COMPLEX. AND BY THE, YOU KNOW, I
MEAN, WE MAY NOT EVEN HERE UNTIL
NEXT YEAR ON SOME OF THESE
GRANTS, AND WE HAVE A LOT OF
THESE ISSUES TODAY. UM SO GRANTS
I THINK CAN CAN WORK. BUT I
THINK WE HAVE TO BE HONEST ABOUT
HOW FAST AND EFFECTIVE THEY ARE
AND REALLY TAKE A LOOK AT MAYBE
REVISING THE WAY SOME OF THOSE
THOSE THINGS ARE PUT TOGETHER.
UM I THINK THERE'S A NUMBER OF
PEOPLE IN OUR INDUSTRY AND FOLKS
THAT WE COMPETE WITH, BUT WE
ALSO COOPERATE WITH UM, THAT ARE
IN THE SAME BUSINESS, AND
THERE'S A LOT OF PROJECTS BEING
TALKED ABOUT. WE'D LOVE TO BRING
THOSE AND MAKE ALL OF YOU AWARE
OF THOSE PROJECTS, YOU KNOW,
LIKE BUILDING FACILITIES AND
STORAGE. UM AND HELP GET YOUR
HELP ACCELERATING THOSE
PROJECTS. UM SO, UM. THOSE ARE
THOSE ARE KIND OF THE GIST OF
THE IDEAS THAT WE HAVE AND WHAT
WE WANTED TO BRING TO YOUR
ATTENTION. SO, UM, WITH THAT?
I'LL JUST SAY THANK YOU FOR YOUR
TIME. WE REALLY APPRECIATE IT
AND LOOK FORWARD TO THE EXPANDED
CONVERSATION. MR RICHARDS REALLY
APPRECIATE YOU BEING HERE THIS
AFTERNOON. UM AND I DO WANT TO
MENTION OUR SECOND PANELIST MAY
BE HAVING TROUBLE BE A WEBEX OR
TRY ONE MORE TIME. IS HE? IS HE
ON NOW? AND SO, UM, AGAIN, IT'S
KING VANG WITH THE FRESNO. UM AH
, BY PARK PRODUCE. SO, MR VAN IF
YOU'RE WITH US, UM THE FLOOR IS
ALL YOURS. CAN YOU GUYS HEAR ME?
YES, WE CAN. ALL RIGHT. WELL,
THANK YOU, UM FIRST OF ALL I
WANT TO THANK ROOF. NO SHE'S NOT
HERE TODAY, BUT SHE SHE WAS THE
ONE THAT, UH, PERSON WHO INVITED
ME TO THIS, UH, THIS HEARING? UM
SO I'M HERE TODAY TO TALK ABOUT
, YOU KNOW, GETTING HELPING THE
SMALL, UH, SOUTHEAST ASIAN
FARMERS OR BIPAC FARMERS HERE
AND PRESIDENT COUNTY. UM TO
BECOME VENDORS FOR THE SPREAD
WHEN YOU DID BY SCHOOL DISTRICTS
OR THE SCHOOL DISTRICT IN IN
GENERAL. UM SO OVER THE YEARS. I
STARTED WORKING BEFORE I WELL,
LET ME ASK YOU INTRODUCE THE
SONGS. I'M I'M SORRY. UM MY NAME
IS KING. UH I AM THE OWNER AND
FOUNDER OF PRESIDENT BY PARK
PRODUCE. UM I FOUND IT.
PRESIDENT BIPAC LOSE LAST YEAR.
AND. SEPTEMBER IN SEPTEMBER. I
BELIEVE, UM, AND THE MAIN
PURPOSE UH, WHY I BEGAN WERE OR
CREATED PRESIDENT BIBLE BIPAC
PROBLEMS WAS TO HELP SMALL
FARMERS TO GET INTO THE UNIFIED
SCHOOL DISTRICTS AS VENDORS. OR,
UH, EVEN IF I CAN'T GET THEM TO
BECOME VENDORS. I AM THE ONE.
THE VENDORS WHO REPRESENT MOST
OF THE, UH BY PARK FARMERS HERE
IN PRESIDENT COUNTY THAT CAN'T
GET OR CAN'T BECOME VENDORS FOR
PRESIDENT TO FIGHT SCHOOL
DISTRICT. AND. TWO YEARS AGO. UH
I STARTED WORKING FOR PRESIDENT
NÓI. WE'RE, UH, THE ASIAN
BUSINESS INSTITUTE. AND RESEARCH
CENTER IN FRESNO. IT'S NOT
POPULAR ORGANIZATION AND HERE IN
PRISON AND THAT HELPS, UH SMALL
FARMERS, ESPECIALLY SOUTHEAST
ASIAN FARMERS, WITH ALL KINDS OF
RESOURCES. AND THEN UH, A BURKE
. UH THE ACRONYM FOR ASIAN
BUSINESSES, TOO, AND RESOURCE
CENTER IS A BIRD. AND A BIRD HAS
BEEN WORKING WITH ALONGSIDE WITH
/C CEF, FRESNO TO ADVOCATE FOR
THIS, THE FARMERS TO BECOME
VENDORS. AND OVER THE YEARS IT
HAS BEEN REALLY, REALLY, UH HARD
IT. IT'S ALSO A CHALLENGE FOR
OUR SMALL FARMERS TO BECOME
WINNERS BECAUSE A LOT OF OUR
FARMERS ONE THEY DON'T SPEAK
ENGLISH, UM TO THEY'RE NOT TECH
SAVVY, SO THEY DON'T EVEN KNOW
HOW TO LIKE, YOU KNOW, UM TESTER
EMAIL. THEY DON'T KNOW HOW TO
APPLY TO BECOME A VENDOR IN THE
FIRST PLACE. AND SO ALL THESE
CHALLENGES WERE BOTH THESE
CHALLENGES. UM HAVE BEEN LIKE A
BIG REALLY BIG, UH, BLOCKING
POINT FOR THEM TO BECOME VENDOR
. ON TOP OF THAT, YOU KNOW,
THERE'S OTHER ISSUES. UM
PERSONAL UNIFIED SCHOOL DISTRICT
WANTED OUR FARMERS SEE, YOU
KNOW, HAVE, UH, CERTIFICATION.
UM AND CERTIFICATIONS REAL HARD
FOR OUR SMALL FARMERS BECAUSE,
YOU KNOW, SERVED WITH
CERTIFICATION INCOMES. YOU HAVE
TO USE MONEY. UH AND A LOT OF
OUR FARMERS. THEY DON'T HAVE THE
, UH THE FINANCIAL, UM,
CAPABILITY TO DO THAT. AND SO
THROUGH A LOT OF ADVOCACY WITH A
BERG AND NEW CCG, UM WE WERE
ABLE TO OR OR THE ORGANIZATIONS
WERE ABLE TO ADVOCATE AND HELP
SOME OF SMALL FARMERS GET THEIR
FOOD SAFETY CERTIFICATIONS,
MAKING SURE THAT ALL THE POSTS
THAT WERE COMING FROM, UH, THE
FARMER. THE FARMS WHERE WE'RE
SAFE ENOUGH WHERE FOR THE
SCHOOLS. AND SO THAT WAS WHEN IN
2000. 2019 I BELIEVE PRESIDENT
YOU'RE FIGHTING MADE THE FIRST
PURCHASE WITH A, UH, SOUTHEAST
ASIAN WHEREBY, POP FARMER UH AND
PRESNELL, UM, BUYING THAI CHILI
FROM HIM TO MAKE YOU KNOW SAUCE.
I DON'T KNOW IF ANY OF YOU GUYS
HAVE HEARD OF THAT STORY. UH AND
SO WITH THAT AFTER THAT, NO
COVID HERE IN 2020. AND THAT WAS
WHEN THE SCHOOL DISTRICTS WHERE,
UH, KIND OF LIKE, UH, SETTING
FARMER SCHOOL ON THE SIDE
BECAUSE OF THAT. BECAUSE AND
ALSO BECAUSE STUDENTS WEREN'T
GOING TO SCHOOL, AND SO, UM,
LAST YEAR, UH, WHEN THE SCHOOLS
OPEN UP AGAIN, SCHOOL STUDENTS
WERE GOING BACK TO SCHOOL AGAIN.
UM WE A BURG WHEN I WAS STILL AT
A VERY WE CONTINUE TO ADVOCATE.
UH AND ALSO PUSH, UH, PRESENTLY
IN FIVE TO BUY FROM OUR FARMERS
, AND THEY DID BUY IT, BUT THEN
THEY DIDN'T BUY IT IN LARGE
AMOUNT, AND THEY WERE BUYING
LIKE SMALL MICRO PURCHASES. UM
WHICH IS UNDER I BELIEVE LAST
YEAR, MICHAEL PURCHASES WERE
UNDER 10,000. AND THEY WERE
THINK THEY BOUGHT THEM TO
FARMERS. AND SO. WHAT PRESIDENT
UNIFIED SCHOOL DISTRICT WANTED
ABLE TO DO, UH, TO BECOME THE
AGGREGATOR, UM OR THE FOOD HUB
TO REPRESENT ALL THE FARMERS
BECAUSE IN THAT WAY, PRESIDENT
IF I BELIEVE THAT IT WILL BE
EASIER, AND WHEN PRESIDENT
UNIFIED SAID THAT I DID. I DID
BELIEVE THEM TOO, BECAUSE
THERE'S A SYSTEM WITH THE
PURCHASING OF PROCUREMENT THAT,
YOU KNOW, UM, THEY CAN'T REALLY
BY THE SAME TYPE OF PRODUCE
FROM, UM, MULTIPLE FOR MULTIPLE
VENDORS. AND SO IN THAT CASE, IT
MAKES SENSE. BUT THEN, UH, AT
THAT TIME, ABRA DIDN'T WANT TO
TAKE ON THE AGGREGATOR ROLE. SO
THAT WAS WHEN IT CLIPPED ME
INSIDE, AND I WAS LIKE, OH, HEY,
MAYBE YOU I CAN I CAN DO THAT.
AND SO THAT WAS WHEN I TOOK THE
BIG STEP. UH TO, UH TO OPEN UP
OR TO CREATE AND START PRESIDENT
BY PARK PRODUCE, AND THAT WAS
WHEN I UM, ALSO DID MY FIRST
PURCHASE OF PURCHASE OR MY FIRST
ORDER PRESIDENT UNIFIED SCHOOL
DISTRICT. AND WE WERE ABLE TO
MAKE FROM LAST YEAR TO NOW. I
THINK WE MADE THREE ORDERS
THROUGH FEDERAL BIKE LOCK
PRODUCE, AND ALSO BECAUSE, UM,
THERE WAS AN INCREASE THE
MICHAEL PURCHASE, UM. THRESHOLD
ALSO INCREASED FROM 10,000 TO
50,000. AND SO WE WERE ABLE TO
MAKE MORE PURCHASES LIKE THAT,
BUT, UH, I WAS STILL HOPING THAT
PRESIDENT UNIFIED SCHOOL
DISTRICT WOULD WOULD ORDER MORE.
UM BECAUSE A LOT OF OUR BY POPPY
FARMERS HERE IN PRESIDENTIAL WE
GROW, THEY GROW A LOT OF PRODUCE
THAT ARE CULTURALLY RELEVANT.
UH, AND PRESIDENT. THERE'S A LOT
OF THEM SOUTHEAST ASIAN
STUDENTS, MORE OTHERS ALSO, UM
HISPANIC LATINO STUDENTS AS
WELL. UM. WHICH IS A LARGE
AMOUNT OF THE NUMBER IS PRETTY
BIG HERE AND SO WE KEEP
ADVOCATING AND OUT REACHING TO
PRESIDENT AND VICE SCHOOL THIS
WEEK, BUT IT'S BEEN A CHALLENGE
AND ALSO, UM ONE OF THEIR MAIN
REASONS THAT THEY SAID THAT
THEY'RE THEY'RE NOT PERSONAL LOT
FROM US, BECAUSE, UM I BELIEVE
THEY APPLIED FOR THE, UH, PDF A
FARM TO SCHOOL GRANT. UM AND
THEIR THEIR GOAL IS TO MANY
PURCHASE ORGANIC PRODUCE. AND
THAT IS ONE OF THAT IS A REALLY
BIG CHALLENGE FOR OUR SMALL
FARMERS HERE IN FRESNO, BECAUSE
A LOT OF HOURS A LOT OF OUR
SMALL FARMERS BIPOD FARMERS,
THEY CAN'T THEY CAN'T BECOME
ORGANIC. UM AND THE MAIN REASON
IS BECAUSE OF LAND TENURE, MOST
OF THEM LEAST THEIR FARM ON THE
YEAR TO YEAR BASIS AND YOU KNOW,
AND FOR YOU FOR YOUR FARM TO
BECOME ORGANIC, YOU HAVE TO, YOU
KNOW, UH, HAVE HAVE TO NOT DO
ANYTHING ON YOUR ON YOUR FARM
FOR THREE YEARS. LET US SIT NO
CAMERA GOES, NO, NO, NOTHING AND
IT'S REALLY HARD. UM SO OUR
FARMERS CAN BE ORGANIC FARMERS
AND EVEN THEY BECOME ORGANIC
FARMERS. IT MEANS THAT THEY'RE
GOING TO SPEND MORE BECAUSE A
LOT OF THE ORGANIC, UH, PRODUCTS
THAT THAT THAT ARE USED FOR
ORGANIC FARMING, IT'S VERY
EXPENSIVE. AND SO OUR FARMERS
THAT THOSE ARE SOME OF THE
REASONS WHY THE FARMERS DON'T
WANT TO BECOME ORGANIC FARMERS.
BUT A LOT OF OUR FARMERS ARE
ALREADY FARMING LIKE ORGANIC
FARM ORGANIC FARMING, BECAUSE,
UM THEY A LOT OF OUR FARMERS.
THEY DON'T USE PESTICIDES OR
CHEMICALS AT ALL. AND SO THAT IS
ALSO SOMETHING SUDDENLY THAT WE
ADVOCATE FOR WHEN WE TALK TO
YOU, THE SCHOOL DISTRICTS. AND
SO. I'VE ALSO SPOKE WITH NICK
FROM CDF TO HE'S BEEN, YOU KNOW,
VERY, VERY HELPFUL AND VERY, UH
, SUPPORTIVE OF ME AND
SUPPORTIVE OF, UH, THE SCHOOL
DISTRICTS BUYING FROM OUR SMALL
FARMERS BECAUSE HE'S BEEN TO OUR
FARMS. UM HE'S ALSO BROUGHT THE
FIRST LADY TO THE FARM. AND I
THOUGHT THAT. DURING THAT TOUR
THAT WE HAD WITH PDF TO AND WITH
THE FIRST LADY. I THOUGHT THAT
THAT WAS WAS GOING TO BE A BIG
LIKE CHANGED BECAUSE I THOUGHT
THAT UH, THEY'RE NOT TIME WE
WERE I THOUGHT THAT WE WERE ABLE
TO MOVE WRESTLING TO FIGHT TOO,
YOU KNOW? START PURCHASING MORE
FROM FROM OUR FARMERS BECAUSE WE
DID. WE DID PUT HER ON THE SPOT.
UM I KNOW THAT WE DID PUT HER ON
THE SPOT. UM IN FRONT OF THE
FIRST LADY IN THE FRONT, CDF A.
BUT UM, IT'S STILL IT'S STILL
DIFFICULT AND SO I THINK THE
REASON AND THE REASON THAT I'M
HERE TODAY IS, UH, I WANT YOU
ALL TO KNOW HOW HARD IT IS FOR A
SMALL FARMERS TO SELL IT TO
BECOME A VENDOR AND ALSO TO SELL
AND EVEN FOR ME, UM, BEING TAX
SAVVY, UM KNOWING HOW TO AND
UNDERSTANDING ENGLISH. IT'S HARD
FOR ME TO SELL OF PRODUCE TO THE
SCHOOL DISTRICT. SO I NEEDED
SUPPORT. UM, FROM YOUR TO KNOW.
PUT PRESSURE ON THE SCHOOL
DISTRICTS. UM I'M ALSO RIGHT
NOW. I'M ALSO OUT REACHING TO
MULTIPLE SCHOOL DISTRICTS. UM T
SEE IF THEY'RE WILLING TO MAKE
MICHAEL PURCHASES. UM ESPECIALLY
BECAUSE WELL, I'M OUT REACHING
TWO SCHOOL DISTRICTS THAT I KNOW
THAT HAS A LOT OF SOUTHEAST
ASIAN, UH, POPULATION LATINO
POPULATION, BECAUSE THAT'S A LOT
OF, UH, THAT'S WHERE A LOT OF,
UH OF ALL A LOT OF THE PRODUCE
IS THAT MY FARMERS GROW CAN GO
TO, UH, ESPECIALLY IN IN
SACRAMENTO. AH MERCED, UM, THE
LOS ANGELES COUNTY AREAS. YOU
KNOW, THOSE PLACES ARE THE
PLACES THAT HAS A LOT OF THEM
THAT ASIANS, LATINOS THAT COULD
COULD USE THESE TYPE OF PRODUCE
THAT WE HAVE THAT ARE CULTURALLY
RELEVANT. AND I'VE ALSO, UM.
TURN INTO GRANT THIS SUMMER OF
THE CDF, A GRANT PHARMACY SCHOOL
INCUBATOR. UH AND WE'LL SEE HOW
THAT TURNS OUT. I HOPEFULLY I AM
A RECIPIENT LATER ON, HELPFULLY
. I HEAR BACK FROM THEM. SO THAT
WAY I GET SOMETHING WORSE
SUPPORT. DO YOU KNOW, HELP THE
SMALL FARMERS HERE IN FRESNO, UM. THAT'S THE BEST THING I CAN DO
HERE AT FRESNO IS, YOU KNOW TO
SUPPORT THE SMALL FARMS AND I'M
REALLY THANKFUL FOR YOU GUYS.
TIME FOR LETTING ME BE HERE AND
, UM KAY MY STORY, SO THANK YOU.
MR VAN. WE REALLY APPRECIATE YOU
MAKING TIME THIS AFTERNOON TO BE
WITH US REMOTELY. AND WITH THAT
WE'RE GOING TO OPEN UP FOR
QUESTIONS. I'M GONNA ASK SOME OF
THE MEMBER MATHIS. THANK YOU, MR
CHAIR IN, UH, MR VAN HANG OUT
WHILE YOU'RE STILL THERE,
BECAUSE I REMEMBER IF I REMEMBER
CORRECTLY. YOU CAME UP A FEW
YEARS AGO AND TESTIFIED IN THIS
ROOM BEFORE US ASKING FOR
TECHNICAL ASSISTANCE AND SOME OF
THOSE, AND I KNOW WE HAD WORKED
ON SOME PROGRAMS LIKE THAT. HOW
IS THAT TURNED OUT FOR YOU? AND
HOW HAS THAT HELPED THE
COMMUNITY OR DID THAT JUST KIND
OF ALL GO TO THE WIND WITH
COVID? AH WE DID GET SOME WHEN I
WAS WORKING. A BRIDGE. WE DID
GET SOME FUNNY FOR TECHNICAL
ASSISTANCE. UM BUT EVEN WITH
TECHNICAL ASSISTANCE, THE ONLY
THING WE WERE ABLE TO DO WITH,
UH, THE PRIMARY SCHOOL, UH, IS
TO HELP THE FARMERS BECOME
DONORS. BUT LIKE I MENTIONED
EARLIER, IT DOESN'T MAKE SENSE
THAT IF ALL OF OUR FARMERS
BECOME VENDORS FOR PRESIDENT,
UNIFIED BECAUSE THEY ALL GO THE
SAME THING. AND PRESIDENT. THAT
MEANS THAT MEANS THAT PRESIDENT,
YOUR FIGHT WON'T EVEN BUY FROM
LIKE A LOT OF THEM. PRESIDENT
UNIFIED CAN ONLY BUY FROM ONE
FARMER THAT THAT THAT GOES ONE
TYPE OF PRODUCT AND THEY'RE
THEY'RE NOT GONNA THEY'RE GONNA
THEY'RE GONNA EXPAND THEIR
PURCHASES. SO EVEN WITH
TECHNICAL ASSISTANCE, UM YOU
KNOW, IT'S ONLY IT'S ONLY ABLE
TO HELP THEM BECOME VENDORS AND
IT GOES ONLY GOES SO FAR, BUT
BUT WE NEED TO PUT PRESSURE ON
THE SCHOOL DISTRICTS. AH KIND OF. I MEAN, I WISH THERE WAS A WAY
WHERE YOU COULD, UH HAVE
REQUIRED THEM TO PURCHASE FROM
SMALL FARMERS AND, UH AND BUY
POT FARMERS. ALRIGHT, SO ON BACK
TO THE TECHNICAL ASSISTANCE ON A
SUCCESS OF THE PROGRAM IF YOU
HAD TO READ IT BETWEEN ONE AND
55 BEING THE BEST. WHAT WOULD
YOU GIVE IT? I WILL GIVE IT TO
OKAY? THANK YOU. AND THEN, UM.
MR RICHARDS. ONE THING. THANK
YOU AND YOUR FAMILY FOR STILL
CONTINUING AND TRYING TO MAKE
CALIFORNIA ACT BETTER. UM I
THINK YOU ADDRESSED A LOT OF
POINTS THAT THAT I SEE. NOT ONLY
DO I HAVE I SAID IS VICE
CHAIRMAN OF AGRICULTURE. WHAT DO
WE GOT? 67 YEARS NOW? UM BUT I
ALSO SENT INTERNATIONALLY ON THE
STATE AG AND RURAL LEGISLATORS
BOARD WITH ALL THE U. S STATES
AND CANADA AND LOOK AT ALL THESE
ISSUES FROM THAT PERSPECTIVE AS
WELL. AND EVERYTHING YOU SAID.
I'VE HEARD MY ENTIRE TIME I'VE
BEEN IN OFFICE, UM THE BIGGEST
THING THAT YOU BROUGHT UP THAT
KIND OF BRINGS THE QUESTION IN
MY HEAD IS WE'RE IN A STATE
WHERE WE HAVE ACTIVISTS TRYING
TO SHUT DOWN. ANIMAL PRODUCTION
AGRICULTURE. ONE OF THEM
ACTUALLY GLUED GLUED THEMSELVES
RIGHT WHERE YOU'RE SITTING IN A
FEW MONTHS AGO. UM BUTYOU
BROUGHT UP A GREAT POINT IN AS
YOU SAW ME IN THE CHAIRMAN KIND
OF WHISPERING BACK AND FORTH.
WHEN'S THE LAST TIME WE
INTRODUCED A NEW BEEF PROCESSING
FACILITY IN CALIFORNIA. BECAUSE
WE TALK ABOUT CLIMATE CHANGE. WE
TALK ABOUT VEHICLE MILES
TRAVELED AND YOU BROUGHT UP SOME
FANTASTIC POINTS ABOUT IT IS
CHEAPER FOR YOU TO SEND YOUR
COWS OUT OF STATE ECONOMICALLY
CHEAPER ALL OF THAT, BUT YOU'RE
GOING TO INCREASE YOUR
ENVIRONMENTAL FOOTPRINT. AND SO
WHAT ARE WE DOING AS A STATE? TO
SAY HEY, IF WE CARE ABOUT THESE
THINGS RIGHT THERE WHERE THEY
SAY THEY'RE SUPPOSED TO CARE
ABOUT THIS? WHAT ARE WE DOING?
AND WHAT ARE WE DOING TO MAKE
THAT MORE EFFECTIVE? UM, WHERE
YOU KNOW? IT'S GONNA BE
BENEFICIAL FOR YOU TO STAY HERE
BECAUSE THAT'S ONE OF THOSE
QUESTIONS. I ASKED NOT JUST IN
AGRICULTURE BUT FRANKLY IN
PRODUCTION. IN CALIFORNIA AS A
WHOLE. IS WE ALL KNOW WE HAVE
THE MOST REGULATORY FRAMEWORK.
WE DO EVERYTHING CLEANER AND
BETTER, AND WE PAIR PEOPLE
BETTER IN EVERYTHING'S BETTER ON
EVERY POSSIBLE THING. YOU CAN
IMAGINE. IF THEY HAVEN'T THEY
WILL CREATE IT NEXT YEAR IN THE
NEW BILL. BUT THE QUESTION
REALLY SHOULD BE. HOW CAN
CALIFORNIA. WITH ALL THAT
FRAMEWORK HELP YOU INCREASE
PRODUCTION. HOW CAN WE MAKE
PRODUCTION AG IN CALIFORNIA IS
SO GREAT. WE'RE PUTTING THE GUYS
OUT OF STATE. THESE OTHER GUYS
THAT DON'T HAVE THE SAME
REGULATIONS. HOW DO WE PUT THEM
OUT OF BUSINESS? NO OFFENSE TO
MY FRIENDS OUT OF STATE. BUT I
WANT TO CALIFORNIA AG. TO
CHALLENGE THAT. BECAUSE WE DO DO
IT BETTER. AND THERE'S A VALUE
TO THAT. AND THERE'S GOTTA BE A
WAY WHERE WE CAN INCREASE
PRODUCTION HERE. NOT ONLY THAT,
BUT IT WOULD HELP WITH JOBS AND
OTHER ECONOMIC FACTORS IN THE
STATE AS WELL. SO I MEAN, FROM
YOUR PERSPECTIVE IN FROM GRAIN,
TOO. ALL RIGHT. WHAT? JIMMY 34
THINGS THAT THAT WE CAN KIND OF
SEND BACK BECAUSE I THINK IT'S
SIMPLE. WE'RE LIKE, JUST DO IT.
UM. BUT WHAT DOES THAT LOOK LIKE
TO YOU? THIS STATE COULD PUT
THEIR MONEY WHERE THEIR MOUTH
IS. WE'VE BEEN PROMOTING AT
LEAST THE STATE INSTITUTIONS TO
BUY ONLY CALIFORNIA PRODUCT WHEN
IT'S WHEN IT'S AVAILABLE.
THERE'S NO REASON FOR SCHOOLS
AND STUFF TO RUN OUT OF
PRODUCTS. SO WHEN IT'S AVAILABLE
, THEY SHOULD BE BUYING ONLY
CALIFORNIA PRODUCTS BECAUSE
WE'RE PASSING ALL THESE RULES
AND REGULATIONS, SAYING IT'S A
SAFEST PRODUCT IN THE WORLD. AND
YOU TALKED TO SCHOOL DISTRICTS
AND YOU TALK TO UNIVERSITIES,
AND THEY HAVE CISCO DELIVERING
THE CHEAPEST PRODUCT. THEY CAN
GET OUT THERE BEATING UP
EVERYBODY'S PRICES AND IT'S NOT
THE SCHOOLS OF BUYING DIRECT.
THEY'RE BUYING THROUGH A
PROVIDER, BUT AT LEAST THE STATE
COULD START THERE. YOU WOULD
THINK I THINK, UM, I'M SORRY IN
IN BACK TO THE PRODUCTION SITE,
BECAUSE I THINK YOU ALL
MENTIONED PRODUCTION AG, AND I
THINK THAT'S ONE OF THOSE
BIGGEST THINGS. WE KIND OF LOSE
SIGHT OF. UH BECAUSE WE ALWAYS
HEAR ABOUT THE GROWER AND ABOUT
THE GUY ON THE GROUND AND IN THE
DIRT. BUT THEN WE FORGET ABOUT
THE PRODUCTION SIDE. I THINK THE
PRODUCTION SIDE COST OR WHAT'S
KILLING US THE MOST. YOU KNOW
WHAT I MEAN? IF I'M WRONG, TELL
ME I'M WRONG, BUT I MEAN, IT'S
WHAT ARE THE THINGS? YEAH, SURE.
SO. UM IN A NUTSHELL. IT'S A
BOTTLENECK. RIGHT SO WE'VE GOT
ALL THIS BEAUTIFUL LAND. WE'RE
RAISING ALL THESE BEAUTIFUL
ANIMALS EVERYWHERE. AND THEN
IT'S TIME TO PROCESS THEM. AND
SO IT'S EITHER YOU'RE DRIVING
THEM HUNDREDS OF MILES. UM WELL,
NOT EITHER YOU ARE, YOU HAVE TO
DRIVE THEM HUNDREDS OF MILES.
AND THEN THERE'S A SECOND
BOTTLENECK, RIGHT? AND THAT IS
SECONDARY PROCESSING. SO IF YOU
WANT TO TAKE IT FROM PRIMAL CUTS
TO GROUND BEEF. CUT STEAKS, ALL
THOSE KINDS OF THINGS. THE
SECONDARY PROCESSING IS AN EQUAL
BOTTLENECK AND THEN EVEN IF WE
EVEN IF YOU EXPAND THOSE
INDIVIDUALLY, IF THEY'RE NOT
CENTRALLY LOCATED, YOU STILL
HAVE THE TRANSPORTATION? YEAH
BIGGER PLAYERS, HARRIS RANCH OR
CARGILL OR JBS OR WHATEVER THE
BIGGER PLAYERS CARGILL SIMPLOT
ALL IN ONE PLACE, RIGHT? SO
THERE'S NO ONE TRUCK AND IT
COMES OUT READY FOR THE GROCERY
STORE. SO. I THINK WHAT WE'RE
HOPING TO SEE OUT OF THIS
ENGAGEMENT IS UM, IDEAS AROUND
FINANCING, SO YOU KNOW, THERE'S
PLAYERS OUT THERE LIKE YOU KNOW,
FARM CREDIT WEST, AND THEY DO. I
THINK THEY PROBABLY DO THE BEST
JOB IN TERMS OF RATES. BECAUSE
THERE'S A REBATE AND SOME OF
THESE THINGS, HOWEVER, NOT RIGHT
NOW. THEIR THEIR RATES ARE
HORRIBLE. SO I THINK THERE'S
SOMETHING THAT CAN BE DONE IN
TERMS OF FINANCING. THERE'S YOU
KNOW, PRIVATE PUBLIC
PARTNERSHIPS THAT COULD BE
CREATED WITH INVESTORS TO CREATE
FUNDS. AND YOU KNOW, VC
OPPORTUNITIES. UM I ALSO THINK
THERE OR I KNOW WE'RE WE'RE
TALKING WITH A LOT OF PEOPLE
BECAUSE WE ALL HAVE THE SAME
PROBLEM. AND WE'RE TALKING ABOUT
GRANTS AND FUNDING TO GET, UM,
PROJECTS OFF THE GROUND IN AND
AROUND SACRAMENTO FOR THIS TYPE
OF FACILITY, BUT THAT COULD BE 3
TO 5 YEARS FROM NOW. SO I THINK
WHAT THE WAY WE'RE THINKING
ABOUT THIS IS THERE'S A SHORT
TERM. THERE'S LIKE THINGS YOU
CAN DO IN THE SHORT TERM, WHILE
INVESTORS AND THE STATE WORK ON
KIND OF IMPROVING AND ENABLING
AN INFRASTRUCTURE SYSTEM THAT
BASICALLY ENABLES. IT'S KIND OF
IF YOU THINK ABOUT LIKE
BASEBALL, RIGHT. YOU HAVE YOUR
FARM TEAMS AND YOUR MINERS AND
YOUR MAJORS IN THE BIG LEAGUES,
RIGHT? THE AG COMPANIES THAT ARE
THAT ARE COMING UP. THEY'RE
GOING THROUGH ALL OF THOSE
PHASES, AND SO IF YOU AND THE
INFRASTRUCTURE IS SET UP FOR THE
MAJOR LEAGUERS. THAT'S IT. THEY
WANT TO. THEY WANT PALLETS AND
PALLETS OUT. AND WE HAD OUR
FIRST, UH, STORAGE FACILITY THAT
WE WORKED WITH. WE HAD TO BEG
THEM. EVERYBODY SAID NO. AND
THERE WAS THIS WONDERFUL MAN WHO
LET US IN WITH TWO PALLETS. AND
THAT'S HOW WE GOT STARTED. BUT
EVERYBODY ELSE SAID NO AND UM,
SO THERE'S IF WE WANT TO BE THAT
THAT YOU KNOW, GLEAMING STAYED
ON THE HILL, SO TO SPEAK OF
AGRICULTURE. UM WE HAVE TO
ENABLE THE SMALLER PRODUCER TO
TRY NEW THINGS AND GROW IDEAS
AND PRODUCTS AND GIVE THEM THE
STAIR STEPPING SPACE THAT THEY
CAN GO THROUGH. AND I THINK, UM
YOU KNOW, WE'VE WE'VE TALKED TO
REAL ESTATE FOLKS LIKE THE BUZZ
OUTS GROUP AND STUFF LIKE THAT
HERE LOCALLY. THEY HAVE THE
FUNDING TO BUILD THOSE TYPES OF
FACILITIES OR THEY HAVE THE
ABILITY TO CHOP UP A FACILITY
AND, YOU KNOW, CREATES THE
SPACE. BUT IT'S REALLY IT'S
REALLY, UM A CONVERSATION LIKE
THIS GETTING THOSE IDEAS ON THE
TABLE BECAUSE I THINK WE CAN
BRING WITH OUR NETWORK. UH UM,
WE CAN BRING A LOT OF PEOPLE I
THINK TO THE TABLE WHO WOULD
PARTICIPATE IN THINGS LIKE THIS.
AND THESE ARE BECAUSE WE'RE VERY
CLOSE WITH ALL OF OUR
COMPETITORS, AND SO IT'S NOT.
THERE'S SO MUCH OPPORTUNITY.
THERE'S NOT REALLY THAT YOU
THINK THAT GOES BACK EXACTLY TO
WHAT DR SUMNER SAID, MAKING SURE
THAT AGRICULTURE HAS ROOM TO
INNOVATE. YEAH AND I THINK WHAT
WE'VE SEEN IS THAT WE'RE HAVING
TO GO INTO LARGER COMPANIES AND
KIND OF LEASED SPACE AT A HIGH
PREMIUM. AND THEN WE'RE A
NUISANCE. FRANKLY AND WE'RE IN
EVERYBODY'S WAY AND SO WHAT WE
WOULD LOVE TO SEE IS IN THE
SPIRIT OF THIS THIS FARM TO FORK
THING WE'RE TRYING TO GROW. IS
THE CREATION OF THIS STAIR
STEPPED TYPE OF INFRASTRUCTURE
OF FACILITIES AND THEN ALSO, THE
BIGGEST THING AS PEOPLE WERE
TALKING ABOUT WAS, UM, COST OF
PROCESSING. SO IF YOU KNOW WHEN
WE FOUND OUT WHAT OTHER
COMPANIES ARE PAYING FOR
PROCESSING THAT ARE BIGGER THAN
US WERE FURIOUS. FURIOUS RIGHT?
IT COMES DOWN TO DOLLARS
MULTIPLE DOLLARS PER POUND LESS
RIGHT, AND SO. IF WE WANT
REGENERATIVE AGRICULTURE IF YOU
WANT ALL OF THESE THINGS THAT
ARE THAT ARE GOING TO HELP
CLIMATE CHANGE AND ALL THOSE
KIND OF STUFF. YOU KNOW WE'RE
THE ONES DOING THAT WORK, BUT WE
NEED WE NEED TO HAVE A FAIR
PLAYING FIELD BECAUSE WE'RE
WE'RE PAYING ASTRONOMICALLY MORE
FOR THE SAME THINGS FOR
PROCESSING AND CUT AND WRAP AND
ALL THESE KINDS OF THINGS. AND
SO IT'S AN UNFAIR PLAYING FIELD.
AND SO THAT I THINK IS WHAT WE'D
LOVE TO EXPLORE. UM WITH YOU ALL
SINCE YOU'VE BEEN DOING THIS
LONGER, AND I'M SURE THERE'S
MANY THINGS I HAVEN'T THOUGHT
OF, BUT I THINK THERE'S A LOT OF
THOSE THINGS FINANCING
FACILITIES. AND, UH, UH, YOU
KNOW, I A PROCESS OF ENABLING
SMALLER COMPANIES TO START. AND
GROW. YEAH AS YOU SAY, SMALLER
COMPANIES. THAT MAKES ME THINK
ABOUT HOW SOME OF THE SOME OF
THE GIANT CO OPS GOT STARTED.
MHM OPPORTUNITIES IN THAT SPACE
. YEAH, IT'S CLEAR THAT USED TO
BE DISCUSSED MORE. YEAH. WHO
WILL I? SO WE HAVE TO MOVE ON.
BUT I WANT TO THANK OUR SECOND
PANEL. APPRECIATE. UM YOU'VE
BOTH BEEN HERE IN PERSON. WANT
TO THANK, UM MR VAN FOR HELPING
US OUT HERE BY BEING REMOTE. AND
WITH THAT WE'LL MOVE ON TO OUR
FINAL PANEL. THE AFTERNOON WHICH
IS AN ADMINISTRATIVE PERSPECTIVE
ON THIS TOPIC. UM AND WITH US,
WHO WILL BE TESTIFYING IN PERSON
IS A DEEDEE MYERS AND INVITE HER
TO PLEASE JOIN US AT THIS FRONT
TABLE. SHE'S UM, A SENIOR
ADVISOR TO THE GOVERNOR, AND
IT'S ALSO THE DIRECTOR OF, UM GO
BIZ. SO MISS MYERS. THANK YOU
FOR MAKING TIME FOR US THIS
AFTERNOON. THANK YOU, MR
CHAIRMAN. AND THANK YOU, ALL OF
YOU FOR HAVING ME HERE TODAY TO
JOIN THIS REALLY IMPORTANT
CONVERSATION ABOUT OUR
AGRICULTURAL COMMUNITY. AS YOU
MENTIONED I AM THE DIRECTOR OF
JOB IS AND WE ARE THE STATE'S
LEADER FOR JOB GROWTH AND
ECONOMIC DEVELOPMENT. AND UH, WE
WE'RE HERE TO SUPPORT BUSINESSES
ACROSS CALIFORNIA, INCLUDING IN
THE AGRICULTURE. SEGMENT SO
SECTOR SO I WANTED TO SAY FEW
WORDS ABOUT THE VARIOUS PROGRAMS
THAT WE HAVE SOME OF WHICH I
KNOW ARE FAMILIAR TO YOU. AND
THEN HOW THOSE PROGRAMS ARE
SERVING THE COMMUNITY. FOR
STARTERS, WE HAVE OUR BUSINESS
INVESTMENT SERVICES TEAM THAT
SUPPORTS COMPANIES LOOKING TO
EXPAND OR STAY OR OR GROW IN
CALIFORNIA, AND WE OFFER A RANGE
OF SERVICES, INCLUDING
CONFIDENTIAL SITE SELECTION
SUPPORTED NAVIGATING WITH
VARIOUS INCENTIVES IN WHICH
THERE ARE A LOT OF DIFFERENT, UM
, INCENTIVES IN THE THINGS LIKE
THE EMPLOYMENT TRAINING PANEL I
BANK TREASURER'S OFFICE WHERE
THESE INCENTIVES LIVE, HELPING
AGAIN. COMPANIES CONNECT WITH
THOSE, UH AND THEN HELPING WITH
PERMITTING PROCESSES ON THE
LOCAL, REGIONAL AND STATE LEVELS
. WE OF COURSE, PROVIDE ALL
THOSE SERVICES TO COMPANIES,
INCLUDING AG COMPANIES, AND JUST
A FEW EXAMPLES. WE HELP THE
COMPANY AG LAND RENEWABLES,%
WHICH PROVIDES SUSTAINABLE
PROCESSING OF AG BYPRODUCTS.
WITH A CALCULATE PIZZA
APPLICATION WITH SITE SELECTION
WITH PERMIT ASSISTANCE AND
INCENTIVE NAVIGATION. WE HELPED
BLUE DIAMOND GROWERS WHOM YOU
ALL KNOW AS THE CALIFORNIA AG,
COOPERATIVE AND MARKETING
ORGANIZATION, FOR ALMONDS AND
ALMOND GROWERS, WE HELP THEM
NAVIGATE INCENTIVES PROGRAM.
INCENTIVE PROGRAMS AND SECURING
ET GRANT FOR RAPID WORKFORCE
TRAINING. WE HELPED JOSEPH GALLO
FORMS A SMALLFAMILY FARM IN
1946, WHICH HAS GOTTEN QUITE BIG
, UH, WITH HELP THEM NAVIGATE
INCENTIVES AND RETENTION
SERVICES, AND WE WERE ALSO ABLE
TO ASSIST THEM IN SECURING BOTH
AN ECONOMIC DEVELOPMENT RATE
DISCOUNT WITH PG AND E AS WELL
AS FUNDING FROM THE C. E. C S
PRODUCTION INVESTMENT PROGRAM.
WE HELPED CALIFORNIA FARMS WITH
KATE FOR CREDIT $1.9 MILLION IN
A CAL COMPETES CREDIT OF 2.45. I
COULD GO ON. THERE'S MANY MORE
EXAMPLES WHICH WE CAN SHARE WITH
YOU. BUT THOSE ARE JUST SOME OF
THE PROGRAMS AND SOME OF THE
INCENTIVE NAVIGATION AND
CONNECTION TO WHAT WE DO THAT WE
PROVIDE STATEWIDE. WE HAVE
ANOTHER, UH, A NEW PROGRAMS ARE
COMMUNITY BASED SOLUTIONS, WHICH
INCLUDES 13, LOCALLY BASED
REPRESENTATIVES WHO LIVE AND
WORK IN THE VARIOUS REGIONS.
THESE ARE ALIGNED WITH THE SURF
REGIONS, THE COMMUNITY ECONOMIC
RESILIENCE FUND THAT YOU ALL
FUNDED LAST YEAR AND THAT WE'RE
STANDING UP. UM THE TEAM ALSO
SUPPORTS, UM INDUSTRY, INCLUDING
BY WORKING WITH THE CALIFORNIA
DEPARTMENT OF WATER RESOURCES.
TO INCLUDE LOCAL GROUNDWATER
SUSTAINABILITY PLANS INTO
ECONOMIC DEVELOPMENT STRATEGIES
AND BY PROVIDING SIGMA ONE OH
ONE EDUCATION SERVICES. I KNOW
MANY OF YOU ARE FAMILIAR WITH
CAL COMPETES. IT'S OUR INCOME
TAX CREDIT CREDIT PROGRAM AND
MORE RECENTLY HAS A GRANT
COMPONENT. UH WE HELP AVAILABLE
BUSINESSES WHO WANT TO LOCATE OR
STAY AND GROW IN CALIFORNIA.
BUSINESSES OF ANY INDUSTRY SIZE
OR LOCATION CAN COMPETE. THE
CREDITS NOW $180 MILLION A YEAR,
AND IT'S BASED ON 12. DIFFERENT
CRITERIA, INCLUDING THE SIZE OF
THE INVESTMENT, THE STRATEGIC
IMPORTANCE AND THE NUMBER AND
QUALITY OF THE JOBS BEING
CREATED. SO AGAIN THOSE CREDITS
AND NOW THE GRANTS ARE ALSO
AVAILABLE TO ADD BUSINESSES. WE
HAVE WE HAVE THE OFFICE OF THE
SMALL BUSINESS. ADVOCATE IS THAT
JOB IS AND WE KNOW THAT SMALL
BUSINESSES THE DRIVE IS A DRIVER
OF ECONOMIC GROWTH, CREATING TWO
THIRDS OF JOBS HERE IN
CALIFORNIA AND EMPLOYING NEARLY
HALF OF ALL PRIVATE SECTOR
WORKERS. CALLOW SB SERVES AS THE
VOICE OF SMALL BUSINESS HERE IN
THE STATE AND REPRESENTS THE
VIEWS AND INTERESTS OF SMALL
BUSINESSES AND HELPS ENSURE
EQUITABLE ACCESS TO CAPITAL
MARKETS AND NETWORKS, SO THAT
ALL OF OUR BUSINESSES, INCLUDING
THOSE IN THE EGG SECTOR CAN
SUCCESSFULLY START INVEST, GROW
AND BECOME MORE RESILIENT. AH WE
ENSURE THAT ENSURING THAT
BUSINESSES ARE AWARE OF ALL THE
RESOURCES. SOME IS SOMETIMES A
CHALLENGE, AND I KNOW ONE THAT
THAT WE HAVE TALKED WITH MEMBERS
ABOUT THAT'S WHY WE'RE WORKING
HARD. CALLOW SP IS WORKING HARD
TO BUILD STRONGER ECOSYSTEMS AND
CREATE A BETTER OUTREACH
ENGAGEMENT NETWORK. THEY'VE ALSO
EXPANDED PARTNER NETWORKS AND
SOCIAL MEDIA OUTREACH, INCREASED
DIRECT SUPPORT. AND CREATED NEW
CUSTOM CONTENT AND THE MORE THAN
80 SMALL BUSINESS TECHNICAL
ASSISTANCE CENTERS ACROSS THE
STATE, INCLUDING IN RURAL AREAS
HAVE BEEN CRITICAL TO THIS
EFFORT, HELPING SMALL BUSINESS
ACCESS APPROXIMATELY $1.5
BILLION IN CAPITAL. UM OBVIOUSLY
, THE DROUGHT WHICH HAS COME UP
, UH IT'S JUST, YOU KNOW, IT'S
BEEN INCREDIBLY IMPACTFUL.
HISTORIC WATER RESTRICTIONS HAVE
IMPACTED BOTH FARMERS AND
CONSUMERS. FARMERS WAS NOTED.
EARLIER ARE UNABLE TO WORK THEIR
ENTIRE ACREAGE AND CONSUMERS ARE
PAYING HIGHER PRICES FOR FOOD.
UH IN RECOGNITION OF THESE
CHALLENGES THE GOVERNMENT THE
GOVERNOR INCLUDED AN ADDITIONAL
$75 MILLION IN THEBUDGET FOR A
NEW PROGRAM. CALIFORNIA SMALL
AGRICULTURAL BUSINESS DROUGHT
RELIEF PROGRAM AND THAT WILL
FUND AND PROVIDE FUNDING BASED
ON THE LEVEL OF DOCUMENTED LOSS
THAT BUSINESSES IN THE EGG
SECTOR HAVE FACED, UH WE GO BUSY
DEVELOPED THAT PROGRAM ALONGSIDE
CALLOW S, B, A AND OTHER CDFA
AND OTHER STAKEHOLDERS IN THE
EGG SECTOR. SO UH, IT'S DESIGNED
TO BE FLEXIBLE, WHICH I THINK IS
REALLY IMPORTANT THAT CAN BE
APPLIED TO A WIDE RANGE OF NEEDS
, INCLUDING EMPLOYEE EXPENSES,
WORKING CAPITAL OVERHEAD AND
OTHER DROUGHT RELATED COSTS THAT
AREN'T ALREADY COVERED THROUGH
EXISTING GRANTS ARE FORGIVABLE
LOANS. AH WE HAVE THE CALIFORNIA
INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK IS ANOTHER GO
BUSINESS PROGRAM. UH IT HAS THE
AUTHORITY TO PROVIDE FINANCING
TO PUBLIC AND PRIVATE ENTITIES
EXIST. ISSUE TAX EXEMPT AND
TAXABLE REVENUE BONDS PROVIDE
CREDIT ENHANCEMENTS, ACQUIRED
RELEASE FACILITIES AND LEVERAGE
STATE AND FEDERAL FUNDS. AMONG
MANY PROGRAMS. I BANK MANAGES
THE FARM LOAN PROGRAM. IN FISCAL
2021. THAT PROGRAM PROVIDED
NEARLY $3 MILLION TO CALIFORNIA
FARMERS AND SINCE ITS INCEPTION
IN 2008, IT'S PROVIDED 88 LOANS
TO FARMS, FARMERS AND TOTALING
$22.3 MILLION, AND SO 72 OF
THOSE FARMS WERE EXECUTED,
EXECUTED THROUGH THE CENTRAL
VALLEY SMALL BUSINESS
DEVELOPMENT CORPORATION AND 12
UH, WORK THROUGH THE CALIFORNIA
COASTAL RURAL DEVELOPMENT
CORPORATION IN SALINAS. SO
OBVIOUSLY IN THE IN THE HIGH
OUTPUT AREAS OF THE STATE, UM
YOU KNOW, IN IN FISCAL 2020. WE
ALSO HAVE THE SMALL BUSINESS
LOAN GUARANTEE PROGRAM. AND SO I
BANK PROVIDES A GUARANTEE WHICH
HELPS LEVERAGE LOANS FOR THOSE
WHO HAVE CHALLENGES ACCESSING
CAPITAL. UH HUH. AND IN 2021,
THAT PROGRAM MADE 363 LOANS
SUPPORTED BY MORE THAN 111
MILLION IN LOAN GUARANTEES WITH
THAT WAS ABLE TO LEVERAGE 228
MILLION OVERALL CAPITAL INTO THE
STATE SMALL BUSINESS COMMUNITY,
HELPING NOT JUST THE EGG SECTOR,
BUT THOSE SUPPORTING BUSINESSES
THROUGHOUT THE STATE. UM FINALLY
, SUPPLY CHAIN IS A OBVIOUSLY IS
A IT'S BEEN FRONT AND CENTER. UM
AND SOMETHING THAT IS HEAVILY
IMPACTED OUR COMMUNITY AND OUR
EXPORTERS LAST YEAR, AS YOU
KNOW, THE GOVERNOR SIGNED
EXECUTIVE ORDER IN 19-21
DIRECTED US JOB IS TO WORK WITH
OUR COLLEAGUES AT COSTA C D. F A
AND THE LABOR AGENCY TO FIND
SOLUTIONS TO SOME OF THESE KEY
CHALLENGES, INCLUDING WORKFORCE
AND JOB TRAINING, DATA AND TECH.
UH PORTRUSH OPERATIONS,
INFRASTRUCTURE AND WAREHOUSING,
SO WE CONTINUE TO WORK CLOSELY
WITH OUR FEDERAL PARTNERS. WE
TALK TO THEM EVERY SINGLE WEEK,
AND WE WORK CLOSELY WITH OUR
REPORTS, INCLUDING THE PORTAL
OAKLAND. UM AGAIN. EXPORTS OF
COURSE, HAVE BEEN ESPECIALLY
HARD HIT, AND SO AMONG OTHER
THINGS, AND SECRETARY ROSS WAS
ESSENTIAL IN THIS WE PARTNERED
WITH THE U. S FEDERAL DEPARTMENT
OF AGRICULTURE AND THE PORTAL
OAKLAND TO CREATE A WATERFRONT
CONTAINER DEPOT THAT'S HELPED
INCREASE THE EFFICIENCY OF THE
PORTS, MARINE TERMINALS AND
PROVIDED ENHANCED ACCESS TO
EQUIPMENT FOR AG EXPORTS.
THERE'S A LOT MORE THERE NEEDS
TO BE DONE THERE AND WE'RE
WORKING ON IT EVERY DAY, BUT WE
HAVE MADE SOME IMPORTANT STEPS.
AND FINALLY, AS YOU KNOW THE
BUDGET, THE GOVERNOR'S BUDGET
INCLUDED SOME NEW FUNDING FOR
PORTANTINO STRUCTURE, INCLUDING
SUPPLY CHAIN DATA TRANSPARENCY,
WHICH WE'RE WORKING ON WITH YOU
ALL PORTS, LABOR AND WORKFORCE
DEVELOPMENT AND SEAPORT,
ENVIRONMENTAL UPGRADES, SO WE
WILL CONTINUE TO FOCUS ON THAT.
IT'S REALLY IMPORTANT TO NOT
JUST THE AD COMMUNITY, BUT TWO
STATES ECONOMY AND
INFRASTRUCTURE LARGE AND SO THAT
THAT'S DEFINITELY A HIGH,
ONGOING HIGH PRIORITY. UM AND SO
IN CLOSING, LET ME JUST SAY
THANK YOU FOR HAVING ME HERE
TODAY. UM GO BIZ IS COMMITTED TO
WORKING WITH THE COMMUNITY. AND
I'D LIKE TO SAY WE HOPE THAT ANY
BUSINESSES THAT HAVE SERVICES
THEY'D LIKE TO EXPLORE WE ARE
HERE TO HELP. PLEASE REACH OUT
TO US, AND WE WILL SEE HOW WE
CAN CONNECT YOU TO AGAIN. THE
WIDE RANGE OF SERVICES THAT THE
STATE DOES PROVIDE. SO THANK
YOU, MISS MYERS. THANK YOU AGAIN
FOR BEING WITH US THIS AFTERNOON
, AND I'M GOING TO ASK OUR FINAL
PANELIST OF THE DAY TO COME UP.
WHO'S NO STRANGER TO OUR
COMMITTEE. SHE HAS, UM, BEEN
WITH US ON SEVERAL OCCASIONS IN
SOME SIMILAR HEARINGS, BUT THAT
IS MISS KAREN ROSS WAS THE
SECRETARY OF THE CAFE DEPARTMENT
OF FOOD AND AGRICULTURE. SO
SECRETARY ROSS, IT'S ALWAYS A
PLEASURE TO SEE YOU. THANK YOU
SO MUCH FOR THE INVITATION, AND
IT'S A PRIVILEGE TO BE ON THE
PANEL WITH MY COLLEAGUE DEEDEE
MYERS, WHO HAS JUST A JOY TO
WORK WITH, AS IS EVERYONE AT
YOUR AT YOUR OFFICE OF SO NOW
THAT WE'VE DONE ALL OF THAT,
THANK YOU. AND UM MISS MYERS DID
TOUCH ON THE SUPPLY CHAIN. I AM
KAREN ROSS, SECRETARY OF THE
CALIFORNIA DEPARTMENT OF FOOD
AND AGRICULTURE AND OUT OF
RESPECT FOR YOUR TIME AND
PATIENCE AND LISTENING TO US.
YOU HEARD FROM THE MOST
IMPORTANT VOICES BEHIND ME IN
THE FARMING COMMUNITY, AND I
DON'T NEED TO SPEND ANY MORE
TIME. OUTLINING WHAT THE
CHALLENGES ARE THAT IT'S FACING
AGRICULTURE AS WE ALL WORK
TOGETHER TO MAKE CALIFORNIA
AGRICULTURE CONTINUE TO BE THE
JEWEL. THAT ABSOLUTELY IS, AND
SO I'M GOING TO SPEND MOST OF MY
TIME REDOING MY COMMENTS IN MY
HEAD. SO FORGIVE ME IF IT
DOESN'T MAKE SENSE TO YOU, IT
DOES TO ME. FIRST OF ALL, I
THINK THAT WHAT WE HAVE DONE IN
THE LAST VERY FEW YEARS HAS BEEN
REALLY COMING TO THE REALIZATION
THAT WE NEED TO SHORTEN OUR
SUPPLY CHAINS. WE ARE PAYING FOR
THAT OVER AND OVER AND OVER
AGAIN. AND ONE OF THE MOST
IMPORTANT WAYS THAT THIS
LEGISLATURE WORKING WITH
GOVERNOR NEWSOM, WITH HIS
LEADERSHIP HAVE REALLY LOOKED AT
AND THANK YOU TO OUR FIRST
PARTNER IS REALLY THINK ABOUT
HOW DO WE SUPPORT WHAT MAKES UP
THE BEST MAJORITY OF CALIFORNIA
FARMS. TWO THIRDS OF OUR FARMS
ARE LESS THAN 500 ACRES. AND OF
THAT ABOUT 30% ARE LESS THAN 100
ACRES. SO HOW DO WE MAKE SURE
THAT WHEN WE TALK ALL THE BIG
NUMBERS, THAT'S THE CUMULATIVE
IMPACT OF WHAT AGRICULTURE DOES
MEAN TO THIS STATE. 70,000 FARMS
, $50 BILLION IN FARM GATE VALUE
, AT LEAST 100 AND $50 BILLION
IN VALUE ADDED THROUGH THAT THAT
FOOD CHAIN HOW DO WE FOCUS ON
THE DIVERSITY OF NOT JUST OUR
CROPS, ALL 400 OF THEM. BUT THE
FARM SCALE SIZE THAT WE HAVE AN
UNDERSTANDING THAT 95% OF OUR
FARMS ARE FAMILY OWNED, AND THAT
ALL OF THEM STARTED AS SMALL
FARMS AND SMALL RANCHES AND THE
BEAUTY OF CALIFORNIA AGRICULTURE
AS WE HAVE BEEN A PLACE THAT HAS
PROVIDED THE SETTING THE NATURAL
RESOURCES INTELLECTUAL CAPACITY
TO INNOVATE SO THAT THE NEXT
GENERATION AND THE ONE AFTER
THAT HELPED GROW THESE SMALL
FARMS INTO VERY SUCCESSFUL AND
LARGER. ENTERPRISES MANY OF THEM
THAT ARE VERTICALLY INTEGRATED.
SO THE FIRST THING THAT YOU HELP
I'LL HAVE DONE AND I CAN'T
EXPRESS MY APPRECIATION. ENOUGH
IS REALLY LOOK AT ARE. HOW DO WE
CREATE HOW DO WE MAKE SURE WE'RE
MAKING INVESTMENTS IN POLICIES
THAT WILL SUPPORT HEALTHY, LOCAL
RESILIENT CLIMATE, SMART FOOD
AND FARMING SYSTEMS. OVER A
BILLION DOLLARS OVER THE LAST
FIVE YEARS HAS BEEN INVESTED IN
CLIMATE SMART AGRICULTURAL
PROGRAMS. SUMMER AT THE
DEPARTMENT OF FOOD AND
AGRICULTURE. OVER $123 MILLION
IN ON FARM WATER USE EFFICIENCY
. THE TUNE BUDGET INCLUDED AN
ADDITIONAL $50 MILLION FOR THAT
WATER, WATER USE EFFICIENCY. AND
THERE'S STILL $60 MILLION
PENDING FOR ACTION YET THIS
MONTH THAT IS HELPING FARMERS WE
TARGET, UM ARE UNDERSERVED
POPULATIONS TO MAKE SURE THAT
WE'RE PROVIDING TECHNICAL
ASSISTANCE FOR THEM NOT ONLY IN
THE GRANT PROCESS BUT ALSO IN
THE REPORTING PROCESS AND WHAT
ARE THE BEST TECHNOLOGIES THAT
ARE APPROPRIATE FOR THAT SCALE
OF FARMING? WE'VE PUT OVER $107
MILLION INTO HEALTHY SOILS
PROGRAMS. WE KNOW WHAT AN
IMPORTANT STRATEGY THIS IS AS
AGRICULTURE BEING ONE OF TWO
SECTORS, FORESTRY AND
AGRICULTURE THAT CAN ACTUALLY
DRAW DOWN CARBON STORED IN OUR
SOILS AND BE PART OF THE
SOLUTION. BUT WE ALSO KNOW THAT
BY INCREASING OUR SOUL AND
ORGANIC MATTER, WE INCREASE OUR
WATER HOLDING CAPACITY IN OUR
HOTTER, DRIER FUTURE THAT WE
THOUGHT WOULD BE IN THE NEXT
DECADE OR SO. BUT WE'RE LIVING
NOW. THESE ARE TWO REALLY
IMPORTANT STRATEGIES FOR
RESILIENT SYSTEMS. WE HAVE A
VERY SUCCESSFUL METHANE
REDUCTION PROGRAM. WE'VE HAD A
FOOD PROCESSING ENERGY
EFFICIENCY PROGRAM AT THE ENERGY
COMMISSION, AND ALL OF THE
PROGRAMS THAT ARE OFFERED BY THE
CALIFORNIA ASSOCIATED
ASSOCIATION RESOURCES DISTRICT
TO REPLACE DIRTY ENGINES AND TO
REALLY IMPROVE THE TECHNOLOGIES
THAT ARE AVAILABLE. SO IF
THERE'S ANYTHING THAT I WANT TO
STRESS IS THAT WE CAN'T MAKE
THESE CHANGES OVERNIGHT. THE
SYSTEMS THAT ARE IN PLACE THE
SUPPLY CHAINS THAT ARE IN PLACE
HAVE BEEN THERE FOR A WHILE. OUR
FARM TO SCHOOL PROGRAM WITH $60
MILLION THIS YEAR IN THE BUDGET
THAT HAS JUST BEEN APPROVED.
THESE PROGRAMS ARE TWO YEARS OLD
. THEY'RE NOT GOING TO MAKE THAT
TRANSFORMATIONAL CHANGE
OVERNIGHT, BUT THEY ARE THE
RIGHT PATHWAY. WE NOW HAVE OUR
ROADMAP SEEDS FOR SUCCESS ON HOW
DO WE GROW OUT THE NETWORK SO
THAT WE'RE CONNECTING SMALL
FARMS BIPAC FARMS TO THE SCHOOL
SYSTEMS. WE'VE HAD INCREDIBLE
INVESTMENT NOT ONLY WITH THE
UNIVERSAL SCHOOL LUNCH PROGRAM,
INCREASING THE FUNDING THAT'S%
AVAILABLE SO THAT THEY CAN SPEND
MORE ON LOCALLY PRODUCED FOOD
AND WORKFORCE, DEVELOPMENT,
DOLLARS AND INFRASTRUCTURE
DOLLARS TO DO MORE FROM SCRATCH
COOKING SO THAT WE'RE SUPPORTING
LOCAL SMALL FARMERS KEEPING
THOSE DOLLARS IN THE LOCAL
COMMUNITY. WE'RE SUPPORTING
CHILDREN HAVING ACCESS TO
HEALTHY, NUTRITIOUS FOOD AND
GETTING NUTRITIONAL INFORMATION
AND GETTING EXCITED ABOUT EATING
HEALTHIER, WHICH OVER THE LONG
TERM IS THE BEST WAY FOR US TO
REDUCE HEALTH CARE COSTS THESE
KINDS OF TRIPLE WINDS WHEN WE
THINK ABOUT WHERE THE INVESTMENT
STARTS, AND HOW DO WE CONNECT
WILL HAPPEN? I'M VERY PLEASED,
AND I WANT TO THANK YOU. ALSO
FOR $3 MILLION IN OUR FARM TO
FORK OFFICE. SO THAT WE CAN HAVE
16 REGIONAL NAVIGATORS THAT WILL
SPECIFICALLY HELP BUILD OUT THE
NETWORK TO MAKE SURE THAT THE
SCHOOL NUTRITION DIRECTORS KNOW
WHO'S IN THEIR COMMUNITY WHAT
THEY'RE GROWING AT THAT TIME OF
THE YEAR AND HOW TO ACCESS IT.
WE HAVE A NEW PILOT PROGRAM. $15
MILLION FOR IT'S A PILOT FOR AN
AGGREGATOR HUB PROGRAM TO REALLY
THINK ABOUT HOW DO WE BRING
SMALL FARMERS TOGETHER AND
AGGREGATE? THOSE LOADS SO THAT
WE CAN GET THEM INTO THE SCHOOLS
, AND THAT'S GOING TO BE A VERY
INFORMATIVE LESSON FOR US, AND I
ALSO WANT TO CALL OUT LITERALLY
BILLIONS OF DOLLARS THAT USDA IS
MAKING AVAILABLE FOR SIMILAR
PROGRAMS. ONE WAS JUST ANNOUNCED
TWO WEEKS AGO WITH LOCAL FOOD
PROCUREMENT COOPERATIVE
AGREEMENTS. IT WAS $43 MILLION
TO THE STATE OF CALIFORNIA FOR
FOOD BANKS, AND IT IS TARGETED
SPECIFICALLY TO HELPING SUPPORT
LOCAL FARMERS AND SMALL FARMERS
TO CONNECT THEM TO THE TO THE
CITIZENS WHO AT ANY GIVEN TIME
AND WITH FOOD, INFLATION.
THERE'S MORE OF THEM NOW TO BE
ABLE TO PURCHASE THEM AND TAKE
SOME OF THE RISK OUT OF FARMING
BECAUSE YOU'RE STARTING TO
DEVELOP THAT KIND OF
INSTITUTIONAL BUYING. AND I
AGREE WITH THE COMMENTS. IT
WOULD BE GREAT TO HAVE ALL STATE
INSTITUTIONS BY BUT DON'T FORGET
THE PRIVATE SECTOR. IF WE JUST
HAD THE HEALTHCARE SYSTEM ITSELF
DO WHAT IS HAPPENING HERE AT UC
DAVIS SCHOOL OF MEDICINE WHERE
THEY'RE DOING ALL OF THEIR
SOURCING WITHIN 100 MILES? 6700
LUNCHES A DAY. I MEAN, WE CAN
MAKE THAT AND TAKE IT TIMES,
1000 AND THE MILLIONS OF SCHOOL
SCHOOL MEALS ARE BEING SERVED.
SO THIS FOCUS ON LOCAL RESILIENT
AND HEALTHY LOCAL FOOD SYSTEMS.
LOCAL FARMING SYSTEMS IS ONE WAY
OF BEING ABLE TO SUPPORT THE
TENS OF THOUSANDS OF VERY SMALL
FARMERS THAT WE HAVE IN THIS
STATE AND MAKE SURE THAT THOSE
FARMERS THOSE BIPAC FARMERS THAT
HAVE EXPERIENCED DISCRIMINATION
AND HAVE BEEN HISTORICALLY UNDER
RESOURCED ARE FIRST IN LINE TO
BE ABLE TO TAKE ADVANTAGE OF
THESE KINDS OF PROGRAMS, DROUGHT
AND CLIMATE. WE'VE TOUCHED ON A
BIT. THERE'S SO MUCH MORE FOR US
TO DO AND TO REALLY FOCUS WITH
OUR GREAT WATER RESILIENCE
PORTFOLIO OF REALLY BOILING THAT
DOWN TO WHERE ARE THE
STRATEGIES? THAT CAN BE
ACCOMPLISHED YET THIS THIS
DECADE AND PERMITTING AS ALWAYS
, A CHALLENGE. SECRET IS ALWAYS
A CHALLENGE. WORK BY OUR
COLLEAGUES IS GOING ON THAT WITH
THAT, SO THAT THOSE FUNDS THAT
WERE PUT INTO THE BOND IN 2014
OR IF YOU LOOK AT THE WATER
COMMISSIONS PAGE, YOU WILL SEE
THE YEAR THAT THEY'RE SCHEDULED
TO COME ONLINE. BUT THESE ARE
HUGE INFRASTRUCTURE PROJECTS,
AND THAT'S AN AREA THAT WE ALL
NEED TO WORK ON. UM WE KNOW THAT
WE HAVE TO CONTINUE FINDING
DRINKING WATER SOLUTIONS AND THE
MOST AFFORDABLE WAY POSSIBLE. WE
NEED TO INVEST MORE AND
UNDERGROUND STORAGE AND ABOVE
GROUND STORAGE WITH OUR
GROUNDWATER, BANKING AND
OPPORTUNITIES TO DO MORE WITH
THAT CAPTURE STORMWATER RUNOFF
AND NOT LET IT BE A RUN OFF ITS
NEW WATER. LET'S CAPTURE IT. AND
THE CAPACITY TO DO MORE ON WATER
. RECYCLING ARE ALWAYS THAT WE
WILL BE ABLE TO SURVIVE AND
THRIVE WITH THE WATER RESOURCES
THAT WE NEED. COMBINED WITH
ONGOING CONSERVATION BY ALL
SECTORS OF THE ECONOMY. FINALLY
I WANT TO TOUCH ON ONE THAT
WASN'T TOUCHED ABOUT AS MUCH
TODAY BUT WORKFORCE DEVELOPMENT
, THE TOOLS AND THE TALENTS THAT
WILL HELP US BE SUCCESSFUL
INVESTMENTS YOU HAVE MADE. I'M
KIND OF CALL OUT INVESTMENTS,
NOT JUST AT THE DEPARTMENT OF
FOOD AND AGRICULTURE. BUT
REMARKABLY, TWO YEARS AGO, THIS
LEGISLATURE AND THE GOVERNOR
RESTORED FUNDING FOR COOPERATIVE
EXTENSION, WHICH IS A HUGE
KNOWLEDGE TRANSFER OF NEW
FINDINGS AND INNOVATIONS ON
COLLEGE CAMPUSES, GETTING IT
INTO THE HANDS OF THE END USERS.
THIS YEAR IN THE JUNE BUDGET $75
MILLION FOR THE CSU SYSTEM THAT
HAS FORCED SCHOOLS OF
AGRICULTURE WITH FARMS. WE
CANNOT EXPECT OUR WORKFORCE TO
KNOW THAT THE TECHNOLOGIES
UNLESS THEY HAVE THE OPPORTUNITY
TO USE THEM, THEY CAN'T USE 1950
INFRASTRUCTURE TO BE ABLE TO
LEAD ON INNOVATION IN THE
FUTURE. THE LAST ONE THAT I WANT
TO TOUCH ON AND I KNOW I'VE LEFT
A LOT. A LOT OF THEM OUT IS THIS
LEGISLATURE LAST YEAR? AGREED
WITH GOVERNOR NUISANCE PROPOSAL
FOR $30 MILLION FOR THE FRESNO
MERCED FUTURE OF FOOD INNOVATION
INITIATIVE. IT IS ABOUT REALLY
BEING THE ONES THE CREATORS OF
THE AG TECH THAT WORKS FOR
SPECIALTY CROPS. IF WE CAN DO
THAT HERE AND DO IT AT A SCALE
FOR THE SMALL FARMS AS WELL AS
THE LARGE FARMS, WE WILL HAVE
YET ANOTHER HIGH VALUE
EXPORTABLE COMMODITY. AND WE CAN
MAKE IT IN CALIFORNIA, AND WE
CAN MAKE IT IN THE CENTRAL
VALLEY. WE CAN ADD MORE FOR
CLIMATE SMART FOOD SYSTEMS BY
DOING MORE PROCESSING IN THE
VALLEY. IT FOCUSES ON WORKFORCE
AND AS A NETWORK WITH UC CSU AND
EIGHT COMMUNITY COLLEGES ON
WORKFORCE DEVELOPMENT, AND IT'S
MAKING A SIGNIFICANT INVESTMENT
IN THE SUSTAINABLE. FOOD SYSTEM
THAT'S LOCAL FOOD TRUCKS. THOSE
YOUNG FOOD ENTREPRENEURS, MAKING
SURE THAT SMALL SCALE FARMERS
HAVE ACCESS TO THE PROCESSING
NETWORKS. FOR THEM. THAT IS A
MARK FOR THE FUTURE. AND IS THE
REASON THAT WITH ALL THE
CHALLENGES WE HAVE, IF WE WORK
TOGETHER SMARTLY AND WE FOCUS ON
WHAT WILL MAKE THE INVESTMENTS
BRING THE BIGGEST RETURN. WE CAN
HELP CALIFORNIA AGRICULTURE
CONTINUE TO THRIVE AND MORE
IMPORTANTLY, WE CAN CONTINUE TO
BE A SIGNIFICANT PLAYER IN THE
FOOD AND NUTRITION SECURITY
BECAUSE OF WHAT WE GROW AND HOW
WE GROW IT. THANKS FOR YOUR
TIME. ALWAYS HAPPY TO ANSWER
QUESTIONS, BUT I KNOW YOU'RE
RUNNING OUT OF TIME. THANK YOU.
SECRETARY ROSS. UM IT'S
CERTAINLY APPRECIATE ALL YOU DO
AND THANK YOU SO MUCH FOR, UM,
YOU KNOW, ALWAYS BEEN ACCESSIBLE
. AND YOU KNOW, I KNOW WORKING
WITH VICE CHAIR MATHIS AND MANY
OF OUR COLLEAGUES AND LESSONS
ARE VERY THANKFUL FOR THE
GOVERNOR FOR THE HISTORIC
INVESTMENTS THEY HAVE MADE IN
AGRICULTURE, NOT ONLY THIS YEAR,
BUT IN PREVIOUS YEARS,
ESPECIALLY LAST YEAR. UM YOU
KNOW, BUT YOU KNOW, WITH THAT,
AS VICE CHAIR MENTIONED, UM IT
IN IN THE LAST PANEL, BUT THE
FIRST PANEL REALLY, YOU KNOW,
HIGHLIGHTED THE NEED FOR SCIENCE
AND INNOVATION AS WE MOVE INTO
THE FUTURE, THE FUTURE FOR
AGRICULTURE. UM YOU KNOW, AND SO
, YOU KNOW, ONE COMMENT THAT I
BELIEVE IT WAS. THE PROFESSOR,
HE SAID, WAS ALLOWING FARMERS-TO, UM, MAKE SURE THAT THEY
COMPETE OR HAVE THE OPPORTUNITY
TO COMPETE HERE IN CALIFORNIA.
SO THIS MAY BE, YOU KNOW, SOUND
LIKE A LOADED QUESTION. AND YOU
HIGHLIGHTED IT, MADAM SECRETARY,
BUT WHAT MORE CAN WE DO AS A
STATE TO ADDRESS? UM YOU KNOW
SOME OF THE CONCERNS THAT HAVE
BEEN EXPRESSED TODAY AND THAT WE
KNOW EXIST HERE. UM YOU KNOW,
FOR AGRICULTURE. I THINK ONE OF
THE THINGS WE'RE LOOKING AT IS,
UM THE NEED FOR PRECISION IN
EVERY ASPECT OF FARMING, AND
THAT'S A LOT OF TECHNOLOGY, AND
IT'S ALSO AUTOMATION. IT IS NOT
AUTOMATION TO DISPLACE PEOPLE.
IT'S TO EXPAND THE OPPORTUNITIES
OF BEING IN THE FIELD AND BEING
THE OPERATOR OR THE PROGRAMMER
OF THE APP. THAT WILL BE. WE
HOPE THATSOMEDAY WE WILL BE
ABLE TO CROSS THAT BRIDGE FOR
MORE AUTONOMOUS TRACTORS AND
FIELD EQUIPMENT. WE KNOW IT'S
WITHIN OUR GRASP, AND THAT'S AN
AREA THAT REQUIRES THAT. FROM
THE DESIGN OF THESE TYPES OF
THINGS WE NEED TO INCLUDE OUR
LABOR PARTNERS BECAUSE IT
SHOULDN'T BE ABOUT THAT'S GOING
TO PUT SOMEBODY OUT OF A JOB.
IT'S ABOUT THE NEW WORKFORCE
THAT'S REALLY PART OF THE FUTURE
, HAVE A GREAT PARTNER AND
SECRETARY POLO JIA OVER AT LABOR
AND WORKFORCE, AND SHE'S VERY
WILLING TO REALLY FOCUS ON THE
WORKFORCE OF THE FUTURE AND THE
THINGS THAT WE NEED. THOSE ARE
THE TYPES OF THINGS WE NEED TO
THINK ABOUT. WE DON'T WANT TO BE
THE FOLLOWERS OF ANOTHER STATE
THAT'S LEADING ON AUTONOMOUS
VEHICLES. THEY COULD REALLY
ACCOMPLISHED A LOT AND ENHANCE
THE LIVES OF PEOPLE. WE HAVE TO
THINK ABOUT EXTREME HEAT AND
WHEN PEOPLE WILL NO LONGER BE
ABLE TO WORK THE SAME KINDS OF
HOURS ON THE SAME KINDS OF WAYS.
THESE ARE SMART THINGS FOR US TO
TALK ABOUT, BUT WE NEED TO BRING
PEOPLE TOGETHER, SO IT DOESN'T
SOUND LIKE IT'S AN US AND THEM
TYPE OF AN APPROACH. I THINK YOU
CAN BE VERY, VERY HELPFUL IN
THAT KIND OF A SPACE. AS WELL AS
WE ARE REALLY LOOKING AT. HOW
COULD WE WORK WITH CSU AND YOU
SEE REALLY THINKING ABOUT THE
NEXT DECADE AND THE FIVE DECADES
AFTER THAT, BECAUSE WE'VE BEEN
COASTING ON THOSE KINDS OF
RESEARCH INVESTMENTS? WHAT IS
THE MASTER PLAN FOR WHAT
CALIFORNIA AGRICULTURE HAS BEEN
ABLE TO ACHIEVE? AND WHAT IS IT
THAT WE KNOW THAT WE CAN LEAD ON
AND CONTINUE OUR GLOBAL
LEADERSHIP? AND PROVIDING THE
FOOD AND THE INNOVATIONS THAT
WILL ALLOW OTHERS TO BE ABLE TO
FEED THEMSELVES IN A FAST
GROWING CHANGING CLIMATE, WHERE
THERE'S LESS ARABLE LAND, LESS
WATER AND NUTRITION SECURITY
WILL BE KEY TO COPING WITH THE
CHANGES THAT ARE GOING TO BE
FACING US. ESPECIALLY YOU HAVE
ANYTHING. BUT FOR TIME'S SAKE,
I'LL SHORTEN IT. SINCE WE'RE
ENDING WITH THE FINANCIAL
QUESTION ON INVESTING AT THE
BUCS AND THE SHOES, AND I KNOW
THAT THAT'S MOVING FORWARD TO
GET THOSE FACILITIES UP TO DATE.
UM FRANKLY, I WISH WE DOUBLE
THAT INVESTMENT IN REALLY LOOKED
AT THEM AND HELP INNOVATE ON
THAT SIDE, BECAUSE IT'S
TREMENDOUS WORK. SO ANY ANYTHING
I KNOW MY WORDS TO THE GOVERNOR
AREN'T AS MUCH AS YOURS. SO UM,
I'LL JUST LEAVE THAT AT THAT.
BUT WITH TALKING WITH
EFFICIENCIES ALSO, I MEAN, WHEN
WE I THINK IT HAS TO BE SAID.
ARE AGRICULTURAL FAMILIES. OR
SOME OF THE BIGGEST INNOVATORS
WHEN IT COMES TO WATER
EFFICIENCIES I HAVE EVER SEEN,
AND I HAVE BEEN ALL OVER THE
WORLD NUMEROUS TYPES. BUT YOU
HIT A POINT. WHERE YOU CAN ONLY
REDUCE WHAT YOU USE SO MUCH
WHERE THERE IS A PHYSICAL
IMPOSSIBILITY. AND WE HAVE TO
GET THIS WATER STORAGE ONLINE
AND WE'VE GOT TO MOVE THE BALL
ON SITES. WE'VE GOT TO DO THESE
THINGS, AND I KNOW I'M PREACHING
TO THE CHOIR HERE, SO I'LL JUST
SAY THAT AND STOP UM BUT WE'VE
GOT TO DO IT. AND WE'VE GOT TO
MOVE THE BALL ON IT. WE'VE GOT
TO LOOK AT THINGS. LIKE THE
CELL. IN REALLY REALIZE,
ESPECIALLY WITH THE COST
EFFECTIVE. SEE NOW. THAT
BUILDING A DIESEL PLANT, AND I
DON'T KNOW HUNTINGTON'S BEACH IS
THE SAME COST AS BUILDING A DAM
SOMEWHERE ELSE, AND IT TAKES
THAT PRESSURE OFF THAT LINE AND
MOVES MORE WATER. UM. IT WAS
MENTIONED. THE IMPORTANCE OF THE
AGRICULTURAL JOBS AND THE
ECONOMY. MOST OF US IN THIS ROOM
KNOW THAT ONE IN FOUR JOBS IS
RELATED TO AG IN THE STATE OF
CALIFORNIA. ESPECIALLY IN OUR
RURAL COMMUNITIES IN OUR
COMMUNITIES. WHAT'S NOT SAID
ENOUGH IS THAT OUT OF THOSE ONE
AND FOUR JOBS, MOST OF THOSE
FOLKS ARE MARRIED. SO THEIR
SPOUSE IS ALSO A VITAL ROLE IN
THAT COMMUNITY. THERE. A TEACHER
THERE A FIREFIGHTER, THERE ARE
POLICE OFFICER THEY WORK AT THE
GROCERY STORE AND WHEN WE LOSE
THESE AGRICULTURE JOBS, YOU'RE
NOT JUST LOSING THE FARM. YOU'RE
LOSING THAT ENTIRE COMMUNITY.
AND WE'RE SEEING THAT WE'RE
SEEING ARE SMALL AG COMMUNITIES
BECOME GHOST TOWNS. BECAUSE OF
THE LACK OF SOME OF THESE
RESOURCES. AND I THINK THAT'S AN
IMPORTANT THING THAT'S WORTH
MENTIONING AND SOMETHING WE ALL
NEED TO DO A BETTER JOB OF
LOOKING AT. UM. MADAM SECRETARY,
YOU BROUGHT UP THE AGGREGATED
THING, AND I THINK THAT GOES TO
UM, SO WHAT MRVAN WAS TALKING
ABOUT WITH THE SMALL FARMERS IN
BRINGING THEM ALL TOGETHER, SO I
THINK THAT'S AN IMPORTANT STEP.
AND I WANT TO THANK YOU FOR
THAT. UM. MISS MYERS. YOU TALKED
ABOUT SOME OF THE BUSINESS SIDE.
AND I KNOW AS MENTIONED HERE. I
KIND OF WANT TO BRING IT BACK TO
WHAT MR RICHARDS HAD SAID, AND
HE BROUGHT UP THE CAST OF THE
ECONOMY, THE INFLATION IN THE
INTEREST RATES. HAVING ACCESS TO
CAPITAL IS GREAT. WHAT ARE WE
DOING? WHAT IS WHAT ARE WE ABLE
TO DO? FRANKLY BETWEEN THE TWO
OF YOU IN THE ADMINISTRATION. TO
YOU KNOW, WE HAVE THE PROGRAMS.
BUT WHAT ARE WHAT ARE THE
CURRENT INTEREST RATES THAT ARE
OUT THERE FOR THEM? AND WHAT CAN
WE DO? ESPECIALLY WITH THE
BUDGET SURPLUS? AND OTHER THINGS
TO BRING SOME OF THAT DOWN OR
KOREA SPECIALIZED PROGRAM. AND
WE STILL GOT BUDGET TRAILER
BILLS THAT ARE BEING COOKED
RIGHT NOW. SO I MEAN ANY INSIGHT
ON THAT WOULD BE GREAT. UH YOU
KNOW, THE INTEREST RATES ARE
DRIVEN BY FACTORS MUCH LARGER
THAN US. AND EVEN AT I BANK. I
ASKED THAT BECAUSE, AS A COMBAT
VETERAN, I KNOW THERE'S SOME
SPECIAL INTEREST RATES FOR
VETERANS WHERE THINGS GET LOCKED
IN FOR US. SO IT MAKES ME POSE
THE QUESTION OF CAN WE MAKE A
SPECIAL INTEREST RATE FOR
FARMERS TO LOCK THEM IN, SO THEY
KNOW THEY HAVE A SECURITY AND
ARE DEALING WITH INDEX
VARIABLES. AH I'M HAPPY TO TAKE
THAT QUESTION. I DON'T I DON'T
HAVE A SPECIFIC ANSWER TO IT. UH
YOU KNOW THAT THE CAPITAL THAT
WE HAVE THAT I BANK IS ATTACHED
TO BROADER INTEREST RATES TO
FUNDAMENTAL INTEREST RATES. AND
SO THE COST OF THAT CAPITAL DOES
GO UP, UNFORTUNATELY, BUT WE DO
TRY TO BACKFILL THAT WITH OTHER
GRANTS, UH AND OTHER KINDS OF
AID PROGRAMS BECAUSE AGAIN THE
COST OF CAPITAL SOMETHING WE
CANNOT CONTROL AND THE GOVERNOR
DIDN'T INCLUDE A LOT OF
ADDITIONAL FUNDING FOR SMALL
BUSINESS. OVER THE LAST TWO
YEARS THROUGH THE PANDEMIC AND
INCLUDING THE $75 MILLION FOR
THE FOR THE DROUGHT IMPACTED
FARMERS, WHICH IS IN PROCESS SO,
UM, I'M HAPPY TO LIKE IT'S A
GREAT QUESTION. IS THERE A NO? I
CAN GET A CALVET LOAN? YEAH
GOING ON MY HOUSE AND I GOT A
FLAT RATE INTEREST RATE THAT'S
NOT GONNA GET MESSED WITH AND
THAT'S GOING TO BE FINE. BUT IF,
SAY, MR RICHARDS AND SOME FOLKS
WANTED TO GET TOGETHER IN A CO
OP TO BUILD A BEEF PROCESSING
PLANT. THEY'RE GOING TO BE STUCK
ON SOME VARIABLE. INTERESTING
THAT THEY'RE GONNA HAVE TO DO
THIS. SO HOW DO WE HOW DO WE
JUST FIRE TO THAT? BECAUSE I
THINK THERE'S TIME IN THE BUDGET
YEAR THIS YEAR WHERE WE COULD
POSSIBLY HAVE A CONVERSATION ON
THAT. I'M AGAIN HOW HAPPY TO
HAVE TO FOLLOW UP. UM. I CAN
CONTINUE, BUT I KNOW WE'RE SHORT
ON TIME CHAIR. MY STAFF WOULD BE
VERY UPSET WITH ME. I WANTED TO
TOUCH ON REGULATIONS BECAUSE
THAT IS SUCH A BURDEN, AND IT IS
EXTRAORDINARY COMPARED TO OTHER
STATES. WE DID A SURVEY FIVE WE
HAD A GRAD STUDENT SPENT A
SUMMER DOING A SURVEY FIVE YEARS
AGO, SO IT'S OUTDATED. 170
DIFFERENT. COMPLIANCE
REQUIREMENTS, AND THAT'S JUST AT
THE STATE LEVEL INCLUDED. SOME
OF THE STATES ARE SOME OF THE
FEDERAL AS WELL AS SOME OF THE
COUNCIL. THERE'S A LOT OF COUNTY
ONES. GOVERNOR NEWSOM IS SO
FOCUSED ON DOING GOVERNMENT
BETTER THAT WE PROPOSED THAT.
LET'S TRY A PILOT PROJECT AND
PARTNER WITH OUR FRIENDS AT CALI
, P A. AND JUST LOOK AT RIGHT
REPORTING BECAUSE DATABASES
AREN'T CONNECTED. AND SO YOU MAY
BE DOING A LOT OF DUPLICATE
INFORMATION TO MULTIPLE AGENCIES
. WE ARE IN THE CONTRACTING
PHASE TO BE ABLE TO START THAT
PROJECT. IT WILL BE A PILOT, BUT
I THINK IT WILL BE
EXTRAORDINARILY INFORMATIVE.
IT'S IMPORTANT THAT GOVERNOR AS
A AS A AS A FORMER BUSINESS
PERSON REALLY APPRECIATED THAT
WE WANTED TO TRY THIS AND SO WE
LOOK FORWARD TO USING. THIS IS
ONE EXAMPLE OF CAN WE BE SMARTER
AND SIMPLIFY THE REPORTING IN
THE COST OF COMPLIANCE BY
STARTING WITH VERY FUNDAMENTAL
PROJECT, BUT I DID WANT YOU TO
BE AWARE OF THAT BECAUSE THE
LEGISLATURE AGREED WITH THAT
PROPOSAL IN THE BUDGET. THANK
YOU FOR MENTIONING THAT I
REMEMBER. I THINK IT WAS BUDGET
LAST YEAR WE WERE TALKING ABOUT
SOME OF THE COMPUTER SYSTEMS IN
THE STATE AND HOW THEY ARE ABLE
TO TALK TOGETHER AND WE FOUND
OUT MOST OF THE SYSTEMS WERE
BUILT. AROUND 25 TO 30 YEARS
AGO. AND IF YOU'VE GOT A
COMPUTER THAT'S THAT OLD
PROBABLY DOESN'T RUN SHELL. IT'S
AMAZING HOW OUR STATE IS ABLE TO
FUNCTION. WE CAN GET SOME
MOVEMENT ON. THAT WOULD BE
FANTASTIC. THANK YOU BOTH. THANK
YOU. THANKS. SO ONCE AGAIN
REALLY APPRECIATE THE BOTH OF
YOU MAKING THE TIME TO BE HERE
AND I HOPE TO SEE YOU SOON. AND
SO WITH THAT, UM THAT WAS OUR
FINAL PANEL, SO WE WILL MOVE TO
PUBLIC COMMENT. IF WE HAVE
MEMBERS OF THIS AUDIENCE THAT
WOULD LIKE TO MAKE SOME
COMMENTS. NOW IS THE TIME TO DO
SO. PLEASE FEEL FREE TO STEP UP.
THE MICROPHONE. SEE NONE. WE
WILL MOVE TO THE PHONE LINES.
MODERATOR IS THERE ANYONE IN THE
QUEUE? UM YEAH. NO, I DON'T
THINK SO. MODERATE UM UH, FOR
THE MODERATOR. IS THERE ANYONE
IN THE QUEUE? WHO? UM FOR PUBLIC
COMMENT. IF YOU WOULD LIKE TO
MAKE A PUBLIC COMMENT. IT IS ONE
THAN ZERO ON YOUR PHONE. YOU'RE
USING A SPEAKERPHONE. PLEASE
PICK UP THE HANDSET BEFORE
PRESSING THE NUMBERS. AND IT IS
ONE THEN ZERO. I DO NOT HAVE
ANYBODY QUEUING UP FOR ANY
PUBLIC COMMENTS AS OF RIGHT NOW
. THANK YOU, MADAM. MODERATOR
AND AGAIN, WE'D LIKE TO THANK
EVERYONE HERE WHO PARTICIPATED
N THIS HEARING AND LOOK FORWARD
TO FOLLOW UP AND WORKING WITH
ALL OF YOU. THANK YOU SO MUCH.
WE ARE ADJOURNED.