DECEMBER 2019
SPECIAL ISSUE NEWSLETTER CALIFORNIA WALNUT BOARD PURSUING CREDIT-BACK AUTHORITY. Over the past year, discussions centering on our forecasted
of the Board, the Marketing
increase in production have culminated in the industry’s
Order Revision Committee
strategic plan to develop new opportunities to increase
(MORC) convened on
demand and stabilize future market returns. The planning
several occasions to
discussions focused on exploring any/all tools to support our
develop, review and
future growth including a possible change to the marketing
discuss the program
order to add credit-back authority. The authority would
structure. The MORC
encourage handers to build upon the California Walnut
presented its proposal to the Board
Board’s (CWB) activities, providing additional visibility,
at its annual fall meeting. An overview
awareness and sales for walnuts, through crediting a
of the program is included below.
portion of the handler promotional expenses against
The full board voted unanimously to move forward with
handler assessments due under the program.
a formal request to USDA. The request is currently under
The California Walnut Federal Marketing Order, established
USDA review. The process will include a formal hearing
in 1946, provides authority for a set of activities including:
which is expected to take place February 11, 2020. Following
research, promotion, and regulating quality and volume
the hearing, USDA will make a recommended decision
control. However it does not currently include authority
which recaps the testimony, followed by a 30 day comment
for handler credit for market promotion (credit-back). This
period. Once the comment period closes, USDA considers
authority, if approved, would allow handlers to receive a
the testimony, comments, and other available public
credit (rebate) for eligible market promotion activities of
information and may then issue a secretary’s decision and
seventy cents for every dollar in spend, up to a cap of
referendum order. The referendum order requires USDA to
available dollars based on prior year crop acquisitions. The
put the proposal to a vote of the growers, where you will be
purpose of the program is to encourage handler marketing
asked to vote on changing the language in the order to add
activities to promote the sale, use and consumption of
credit back authority. If the growers favor the amendment,
walnuts, in addition to the ongoing work of the CWB. Similar
the marketing order would be amended to include both the
programs have been successfully used in the almond and
authority to offer credit-back and the terms of the program -
prune industries.
whether or not the industry chooses to implement them. The
At the 2019 spring Board meeting, CWB staff presented a
expected timeline for voting is late spring/early summer.
framework for the potential program, and at the direction
WHAT IS CREDIT-BACK AUTHORITY? • Credit-back is an authority that several agricultural commodities (almonds, prunes, etc.) use to allow handlers to conduct eligible marketing activities in return for a partial credit/rebate on assessments. • The CWB does not currently have this authority in the marketing order, therefore, formal rulemaking has been undertaken to add the authority to the order.
OBJECTIVE/PURPOSE OF THE PROGRAM • Objective of the program – Effectively promote the sale, use and consumption of California walnuts. • Purpose – to encourage handler market promotion in addition to the CWB’s generic marketing efforts.
STRUCTURE/MECHANICS • The credit back authority, once approved, will be in the Order, whether industry chooses to use or not. CO N T IN U E D
O N
PA G E
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• Program authorization to spend will be determined on annualized basis in conjunction with fiscal budgeting. • Determining available dollars for the crop year will be based on percent of budgeted assessment revenue. • Each handler’s share of available dollars to be based on prior year crop acquisitions. • Credit-back will be .70 cents per $1 of spend on eligible marketing & promotional activities.
WHAT ARE THE RULES & REQUIREMENTS? • Credit-back requires California Walnuts wording and/or handler name with the word walnut(s) to be eligible. • Credit-back is not intended for use with private label/3rd party products. • Activities containing other nuts and/or fruits, etc. would receive credit-back based on the proportionate share of walnuts included. • Walnuts used as an ingredient in manufactured food products would receive credit-back based on the proportionate share of walnuts included. • Complete rules, regulations and eligible/ineligible activities are defined in the Credit-back Guide.
WHAT ARE THE IMPACTS TO THE BOARD? • To be funded from prevailing assessments, likely reduction in domestic program, given this is the largest area of CWB spend. • Available dollars for the crop year to be based on percent of budgeted assessment revenue; CWB Executive Committee to make a recommendation to the Board annually. • Similar programs have credit-back in the range of 10%15% of assessments. • Staffing implications to be determined based on the breadth & depth of the program.
NEXT STEPS AND TIMELINE • The CWB, at the Board’s direction, submitted our request to USDA in September 2019. • USDA is reviewing this request. • USDA to hold a public hearing (Winter 2020). • USDA Recommended decision followed by 30 day comment period. • Grower Referendum (Spring 2020) following USDA’s recommended decision.
The California Walnut Board will be conducting a grower survey soon about how best to improve communication with growers. Please consider taking the survey at: http://walnuts.org/grower-survey/
2020 UC EXTENSION SERVICE MEETINGS ⊲ Wednesday, January 21, 2020 North Valley Nut Conference (In conjunction with West Coast Nut Grower Guide Shows)
⊲ Thursday, February 26, 2020 Sutter/Yuba/Colusa Walnut Day
⊲ Thursday, February 6, 2020 Tri-County Walnut Day Visalia, CA
⊲ Tuesday, March 4, 2020 Sacramento/Solano/Yolo County Walnut Day
⊲ Friday, February 7, 2020 Tehama Co. Walnut Day Red Bluff, CA
⊲ Monday, March 9, 2020 Quad-County Walnut Institute Stockton, CA
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Contact: Luke Milliron (530) 538-7201
Contact: Elizabeth Fichtner (559) 684-3310
Contact: Luke Milliron (530) 538-7201
W A L N U T
N E W S
Yuba City, CA Contact: Janine Hasey (530) 822-7515
Woodland, CA Contact: Katherine Jarvis-Shean (530) 377-9528
Contact: Kari Arnold (209) 525-6800
CALIFORNIA WALNUT CONFERENCE
JANUARY 10, 2020 7AM–2:30PM YUBA-SUTTER FAIRGROUNDS 442 FRANKLIN AVE. YUBA CITY, CA 95991 7:00am
Registration
7:00am
7:30am
Trade Show
7:30am
8:00am
State of the Industry: Where we are and where we are going Michelle Connelly, Executive Director of the California Walnut Board & CEO of the California Walnut Commission Karen Ross, The Secretary of the California Department of Food & Agriculture
8:00am
SEMINARS
WORKSHOPS
8:30am
Plant Nutrition Update: Lessons Learned From Other Tree Crops and Opportunities to Improve Mangement Effciency in Walnuts Dr. Patrick Brown. UC Davis
“Growth Opportunities in US: Industrial and Retail” by Jennifer Williams, Marketing Director Domestic Advertising, Keith Siez, Industrial Consultant, Don Ladhoff, Retail Consultant
8:30am
9:00am
Walnut IPM & Disease Control with Organic Chemicals – Matt Boeger, Senior Vice President Commerical Ag PureCrop1
Driving Global Industrial Demand for Walnuts by Hisao Fukuda (Market Makers – Japan), Jack Jacob (Promedia – Turkey), Peter Meadows (The Garden - UK)
9:00am
9:30am
Break
9:30am
10:00am
Trade Show
10:00am
10:30am
Quick Research Updates Dr. Elizabeth "Betsy" Boyd: "Walnut husk fly trapping study"
10:45am
Jhalendra Rijal, Flatheaded borer: a new walnut pest?
11:00am
Dr. Themis Michailides: Untangling walnut mold from Botryoshpaeria and Phomopsis blights
11:15am
Dr. Pat Brown, Building a better walnut: From the genes up
11:30am
Dr. Emily Symmes: What's new in navel orangeworm management and research?
12:00pm
1:00pm
10:30am
Dr. Ken Shackel: Waiting for the tree to tell you when to start irrigating
11:00am
Dr. Gregory Kriehn, Fresno State University: Applications of unmanned systems technology for precision agriculture and walnut production
11:30am
Lunch Testing Remedies for Pre- and Post-Plant Nematode Suppression Dr. Andreas Westphal, Associate CE Specialist and Nematologist UC Davis, Kearney Agriculture Research and Education Center
1:30pm
Managing Orchard Weeds Without Glyphosate Dr. Brad Hanson
2:00pm
Pesticide Regulations Update and Review Lisa Herbert, Sutter County Agriculture Commissioner
2:30pm
Carol Berg Sloan – Walnut Health Research: Scientific Contributions and Why They Matter Jennifer Olmstead, Marketing Director Domestic PR
12:00pm Next Generation Rootstocks: Where Do We Stand? Dr. Ali McClean, Crops Pathology and Genetics Research, Biological Service Technician, USDA
1:00pm
SGMA – What it Means for Walnut Growers David Guy, President, Northern California Water Association
1:30pm
The Digital Orchard: Agriculture Technology Trends Gabriel Youtsey, Chief Innovation Ofcer, UC ANR
2:00pm
Adjourn
2:30pm W A L N U T
N E W S
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CALIFORNIA WALNUT COMMISSION 101 Parkshore Drive, Suite 250 Folsom, CA 95630
THE ANNUAL WALNUT DAY HAS BEEN NEWLY UPDATED AND EXTENDED FOR 2020. IT’S ONE CONFERENCE YOU WON’T WANT TO MISS!
A full day of educational topics, trade show, and a free lunch! • Industry Updates
• Latest Health Research
• International Marketing Panel
• Disease Resistant Rootstocks
• Domestic Marketing
• Walnut Tree Nutrition
• Smart Technology in Ag
• Regulatory Updates
• Weed & Disease Management
• Sustainable Groundwater Management Act (SGMA)
For registration, please visit https://www.wcngg.com/register/
CONTACT INFO California Walnut Board and California Walnut Commission 101 Parkshore Drive, Suite 250 Folsom, CA 95630 phone 916.932.7070 email info@walnuts.org fax 916.932.7071
walnuts.org