CAWG eNews: CAWG Welcomes New Board Directors, Food & Ag Board Delays Regenerative Ag Definition, and More...

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December 5, 2024

YOUR SOURCE FOR CAWG AND INDUSTRY NEWS

FOR CAWG MEMBERS ONLY

IN THIS eNEWS

This Week's eNews Includes:

CAWG News:

CAWG's 50th Anniversary Celebration
CAWG Welcomes New Board Directors from Napa and San Luis Obispo Counties; Re-elects Officer Team
Producers Behind the Policies: Jason Smith, Valley Farm Management
Final U.S. House Seat Called: Adam Gray Wins CA-13
Food & Ag Board Delays Regenerative Ag Definition
Businesses Must File Beneficial Ownership Information by January 1, 2025!
Electric ATV & UTV Rebate?
Unconstitutional Legislation
Can’t We All Get Along?
CAWG Webinars - Recording & Upcoming Opportunities

Industry News:

7.0-Magnitude Earthquake Rattles Northern California
New Survey Finds Local Vineyard Employees Prioritizing New Skills, Technologies, and Establishing Roots
Problem Solvers Caucus Introduces Bill to Lower Gas Prices
PD/GWSS Board Now Accepting Grant Proposals
5,000 Bills is Too Many California Legislature Sets New Max on Legislation
2024 California Winegrape Pest and Disease Survey
Turrentine Market Update, November 2024

Upcoming Events:

Upcoming CSWA Webinars and New Deadlines for the 2025 Certification Year - Dec. 18, 2024
2025 Unified Wine and Grape Symposium - Register Today and Save!

REMINDER: Membership invoices have been mailed. Please contact Mindy DeRohan with any questions or to pay your invoice. Thank you - look forward to working for you in the year ahead.

CAWG News

CAWG's 50th Anniversary Celebration

Last month, CAWG celebrated its 50th Anniversary with a special event at the Kimpton Sawyer Hotel in Sacramento. A full recap of the event with pictures of the night will be sent on December 16 to celebrate CAWG's official day of incorporation. In the meantime, please enjoy this video reflecting on CAWG's five decades of advocacy, education, and support to CAWG members. Thank you!

CAWG Welcomes New Board Directors from Napa and San Luis Obispo Counties; Re-elects Officer Team

CAWG recently announced the election of two new board directors, Johnnie White of Piña Vineyard Management in Napa and Hilary Graves of Booker Vineyard in Paso Robles. Their terms commenced on December 1, 2024. The board also reelected Gregg Hibbits of Grapevine Capital Partners in San Luis Obispo as chairman of the board, along with Jeff Bitter, a winegrape grower in Madera, and John Chandler of Chandler Farms in Selma as vice-chairs; Duff Bevill of Bevill Vineyard Management, LLC in Healdsburg as secretary; and Jason Smith of Valley Farm Management in Salinas as treasurer. Their officer terms will run through November 30, 2025.

CAWG extends its sincere gratitude to the outgoing directors who have completed their dedicated service to the board: Kendall Hoxsey-Onysko of Yount Mill Vineyards in Oakville and Marshall Miller of The Thornhill Companies in Santa Barbara.

Read the full press release here.

Producers Behind the Policies: Jason Smith, Valley Farm Management

CAWG Director and owner of Valley Farm Management, Jason Smith is featured in USDA's Risk Management Agency's blog and video, Crop Insurance Coast to Coast, sharing why he and other growers use Federal Crop Insurance as a risk management tool for their operations.

Read the full blog post here.

Final U.S. House Seat Called: Adam Gray Wins CA-13

In conclusion of the 2024 election cycle, Democrat Adam Gray has narrowly unseated Republican Rep. John Duarte in California’s 13th Congressional District, the final U.S. House race to be decided. The outcome, determined by fewer than 200 votes, underscores the district’s competitiveness.

Duarte had flipped the seat in 2022, besting Gray by a razor-thin margin of 564 votes, but this year’s rematch swung back in the Democrat’s favor.

This Democratic gain leaves Republicans with a slim 220-215 majority in the U.S. House for the next Congress. While the GOP’s control of the House, Senate, and presidency—achieving a governing trifecta for the first time since early 2017—offers opportunities to advance its legislative agenda, the narrow House margin could complicate efforts to unify around key priorities.

Final Election Results

Food & Ag Board Delays Regenerative Ag Definition

This week the State Board of Food & Agriculture unanimously called for further revisions to a proposed definition of “regenerative agriculture.” There will likely be modifications for sustainable pest management, soil health, and desirable outcomes. The definition is ultimately intended to help California agriculture connect to consumers where they are.

“This [regenerative ag] can be a luxury for farmers. Most farmers want to do this, but have limitations on what they can afford,” said Board Member David Mancera, who asked for general guidance in the final definition, not requirements. Certification is a different conversation, added new Board Member Hernan Hernandez.

Links:

NOTE: Secretary Karen Ross in her report to the Board noted that she was honored to attend and speak to CAWG’s 50th anniversary celebration. She spoke briefly about the challenges facing growers and CAWG’s history of accomplishments.

Businesses Must File Beneficial Ownership Information by January 1, 2025!

As a reminder, the Beneficial Ownership Information (BOI) filing deadline is approaching on January 1, 2025. The Corporate Transparency Act requires businesses, including many agricultural entities, to report specific information about individuals who own or control the company to the Financial Crimes Enforcement Network (FinCEN). Non-compliance could result in significant penalties. Be sure to review your filing requirements to avoid any issues.

This week, a new AI tool has been launched to aid companies in completing their BOI filings. HAL is an artificial intelligence engine that has been trained to answer questions regarding the BOI reports. It is not a substitute for legal or accounting advice from a licensed professional. This launch comes at a critical time, as federal estimates indicate over 30 million businesses still need to meet their filing requirements before year-end.

FAQ’s and Filing Information

Hal AI Tool

Electric ATV & UTV Rebate?

Last week Governor Newsom announced if the federal ZEV tax credit is eliminated, he will propose creating a new version of the state’s Clean Vehicle Rebate Program (CVRP), which was phased out in 2023. CAWG is looking at how Newsom’s announcement could potentially be of benefit to growers.

There is already some funding in place for farmers who want to purchase electric tractors. For example, the F unding Agricultural Replacement Measures for Emission Reductions (FARMER) Program provides funding through local air districts for agricultural harvesting equipment, heavy-duty trucks, tractors, and other equipment used in agricultural operations. Additionally, the Zero-Emission Agricultural Utility Terrain Vehicle (UTV) Voucher Program provides monetary incentives for the replacement of existing diesel or gasoline-powered UTVs and tractors with less than 25 horsepower with new, zero-emission UTVs.

However, for both of these replacement programs, there is more demand than there is funding. Additionally, there is no rebate or funding program in place for the purchase of all-terrain vehicles (ATVs) on farms or purchase of small farm UTVs (such as John Deere’s popular electric Gator TE 4x2) unless it is replacing a gasoline or diesel UTV. That is why, if Newsom indeed proposes to renew the CVRP through legislation in 2025, CAWG may be asking that small electric vehicles (ATVs and UTVs) on farms be included in the rebate program.

Unconstitutional Legislation

Every year, the State Legislature considers several measures that, on their face, appear to be unconstitutional. In many cases, the Legislative Counsel (the attorneys who work for the Legislature) will formally notify lawmakers that the measure is likely unconstitutional.

Many lawmakers dismiss this concern entirely, and many of those bills become law. Lawmakers simply state if someone doesn’t think the law is constitutional, they should go to court and let the courts decide.

Indeed, the courts have often thrown out several unconstitutional laws. One recent example is AB 587, which was signed into law in 2022 and proposed to limit content on social media. In September, a federal appeals court blocked the state from enforcing AB 587 finding that the law “collide[s] with the … Constitution.”

To create some accountability for lawmakers, newly elected Assemblymember Carl DeMaio (R-San Diego) is proposing Assembly Constitutional Amendment 1. This measure provides that when a court rules that a new law is unconstitutional, the lawmakers who voted in favor of that law shall have their salary reduced by 25% for one year and the governor who signed the bill into law shall lose his or her entire salary for one year.

If approved by the legislature, ACA 1 would be on the ballot in November 2026. Unfortunately, it is doubtful that ACA 1 will even get a hearing in the Assembly, much less be submitted to the voters for approval.

Can’t We All Get Along?

This week, the legislature in earnest began the 2025/26 Legislative session. The first order of business in any legislative session is for the institution to get organized. This includes swearing in the legislators, electing officers, and adopting the rules.

When the Assembly adjourned at the end of the 2023/24 legislative session in September, tempers flared as legislators screamed past each other and decorum was lost. The tone seemed much better this week when the 2025/26 legislative session began. Assembly Speaker Robert Rivas welcomed new legislators to the Assembly and spoke on the need for collegiality and working together in the interest of governance that serves the people. Unfortunately, that sentiment did not last long.

Fourteen minutes after Speaker Rivas concluded his remarks, Republican legislators asked for a 1-hour recess to give Republicans time to read the proposed Assembly Rules, so they could cast an informed vote on those rules. Republicans stated that they were given the rules (73 pages long) just a few minutes before the hearing. The Republican’s request was denied.

Additionally, Republicans asked for consideration of a Minority Party Bill of Rights to be included in the Assembly Rules. In part, the rights would provide that all lawmakers could participate in debate and that the Republican leader (instead of the Speaker of the Assembly) would decide which Republicans serve on each committee. This request was also tabled without even a vote on the proposal.

Democrats have a super majority in both the Assembly and Senate. If the opening of the 2025/26 Legislative Session is any indication of what is to come, it seems that Democrats are not all that interested in working in a bipartisan manner.

CAWG Webinars - Recordings & Upcoming Opportunities

CAWG hosted two webinars in the last few weeks focused on crop insurance policies and enhancements. Please find the recording links posted below:

Don't miss these upcoming opportunities and please share webinar details with others in your company.

December 6: New CA Laws for 2025: What Employers Should Know
December 10: Maximizing Farm Revenue: A Comprehensive Guide to WFRP Coverage
January 16: Get a Fast ROI with the Right Palletizing Deployment Method

All webinar registration pages are hyperlinked above.

Quote of the Week

“So I have to ask, if the anti-alcohol folks can’t get behind the promotion and consumption of NON-alcoholic drinks, then just what could they possibly want?” – Relative to Alcohol Justice’s opposition to non-alcoholic beverages.

Tom Wark, publisher of “Fermentation” on Substack.

Industry News

7.0-Magnitude Earthquake Rattles Northern California

Earlier today, a powerful 7.0-magnitude earthquake struck Northern California, causing shaking and prompting a brief tsunami warning for coastal regions. Officials launched a Tsunami warning and evacuated nearby areas. The Tsunami warning has since been canceled.

The earthquake was centered off the coast south of Eureka and was felt as far south as the San Francisco Bay Area.

Live Updates from the New York Times

New Survey Finds Local Vineyard Employees Prioritizing New Skills, Technologies, and Establishing Roots

A recent survey of 1,668 Sonoma County vineyard employees, conducted by the Fundación de la Voz de los Viñedos and Beacon Economics, offers a comprehensive look at the workforce behind the region's wine industry. The findings showcase a deeply experienced and dedicated labor force, with nearly 15 years of agricultural experience on average. Key highlights include high job satisfaction stemming from competitive wages, many earning between $18 and $20 an hour, and unique benefits like employer-provided housing and healthcare.

The survey also revealed a strong desire for continued education and training, with over 90% of workers eager to develop skills in areas like equipment operation, sustainable farming, and mechanization. This aligns with the industry's innovative trajectory, supported by initiatives like the "Farm of the Future" and advanced technologies transforming vineyard management.

The workforce’s demographics reflect a predominantly young, male, and Mexican composition, with many employees working alongside family members in close-knit communities. Additionally, over 80% of respondents live locally in Sonoma County, with 40% receiving housing benefits and most enrolled in employer-provided healthcare plans.

The survey highlights the essential role of vineyard employees in sustaining Sonoma County's wine industry while providing insights into how employers can continue fostering a supportive and progressive work environment.

The survey was conducted in the summer of 2024 and 1,668 responses were received from vineyard employees from operations of all sizes. The collected responses were digitized and analyzed by Beacon Economics.

More information:

Problem Solvers Caucus Introduces Bill to Lower Gas Prices

This week, the California Problem Solvers Caucus introduced AB 30 which would require CARB to approve a cost-saving fuel blend with increased ethanol levels (E15) by July 1, 2025. Studies estimate that E15 adoption could reduce gas costs by 20 cents per gallon, saving Californians $2.7 billion annually while lowering particulate emissions. California remains the only state prohibiting E15 sales.

A University of California, Riverside study found that the E15 fuel blend reduces particulate emissions, making it both cost-effective and environmentally friendly. Bipartisan sponsors Assemblymembers David Alvarez (D-San Diego) and Heath Flora (R-Ripon) highlighted these benefits during the Assembly's recent special session, leading to the introduction of ABx2-9 (Petrie-Norris), which passed unanimously in the Assembly but stalled in the Senate.