WALNUT NEWS WALNUTS & CORONAVIRUS FOOD ASSISTANCE PROGRAM (CFAP) BACKGROUND:
On May 19, 2020, USDA announced the details of direct assistance to farmers through the Coronavirus Food Assistance Program (CFAP). USDA’s Farm Service Agency (FSA) began accepting applications from agricultural producers who have suffered losses.
ELIGIBILITY:
Producers of specialty crops are eligible for CFAP payments in the following three categories: 1. Had crops that suffered a five percent-or-greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic, 2. Had produce shipped but subsequently spoiled due to loss of marketing channel, and 3. Had shipments that did not leave the farm or mature crops that remained unharvested.
IMPACT ON WALNUTS:
Walnuts are currently included in two of the three categories (2 & 3). Walnuts were excluded from category # 1. USDA, using their own market price analysis, determined that walnuts, along with several other commodities that were excluded, had not suffered a greater than 5% price decline between January and April 2020. However, the CWC has challenged this decision via USDA’s process which includes
JUNE 2020
IN THIS ISSUE Export Marketing Credit Back Domestic Marketing Complete Protein Health Research Upcoming Events
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a Notice of Funds Availability (NOFA) process. The NOFA is currently open and will close on June 22nd, 2020. USDA is reviewing comments as they come in however; a decision is not anticipated until the NOFA closes. If walnuts are included into the program for category #1, the CWC will work with FSA for a walnut specific webinar for walnut growers and handlers. In regard to Category #2, FSA confirmed on June 9th that product in inventory that will be sold after 4/15/20 is not eligible for the CFAP program. Product that was destroyed, rotted or otherwise unsaleable remains eligible. This will limit the use of the program. The CWC has expressed its frustration with the program implementation to The Secretary and the USDA divisions AMS & FSA, the California Congressional delegation and have asked for clarification from USDA as to why walnuts were included in program categories we were not eligible for and excluded from a category where we should have been. Applications submitted now will only be considered for available opportunities which are now limited. Waiting to complete an application until we have a decision on category #1 is recommended.
REVISIONS TO DIRECT GROWER PAYMENTS UNDER MARKET FACILITATION PROGRAM (MFP) The USDA Farm Service Agency (FSA) has revised its policy by allowing dividends earned from Interest Charge Domestic International Sales Corporations (IC-DISC) to count towards applicant Annual Gross Income (AGI) when calculating if
at least 75 percent of the applicant’s AGI is derived from farming, ranching, or forestry operations. Dividends earned through an IC-DISC may now be considered farm income for 2019 MFP, and consequently, some producers, who may
have earlier not met the 75% threshold are now eligible to apply for direct payments under MFP. The deadline to file the application for 2019 MFP is COB June 30, 2020. With the current workload associated with CFAP in the County Offices, the special 2019 MFP sign-up will be handled at the State level.
EXPORT MARKETING
Producers who filed an application during the regular signup period but were not paid due to not meeting the AGI
California State Office will accept and process all new 2019 MFP applications during this special sign-up period. Mary Dugger is the contact person at the State Office. She can be reached at 530-792-5531 or mary.dugger@usda.gov.
THE POWER OF THREE During February, the California Walnut Commission enacted
its first global marketing campaign titled “the Power of 3” to increase awareness of how California walnuts can easily fit into daily eating and improve overall wellness. The campaign was designed consumers that Omega-3 is good for your heart and that walnuts are the only tree nut with a significant source of plant-based omega-3 ALA (2.5g/oz or 2.7g/30g serving). To reap the benefits and start a new habit, consumers needed to eat at least 3 handfuls of walnuts per week and share the news about walnuts and omega-3 ALA with at least 3 other people. The campaign was supported by a global landing page and engaging video with parts filmed in several countries and language adapted. A global press announcement was followed by activities tailored in each market with more
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requirements can now submit new CCC-942 (05-19-20) due to the revised policy. The new CCC-942 can be submitted to Mary Dugger or the County Office where 2019 MFP is already on file. Form CCC-942 must be submitted by COB June 30, 2020.
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than 1 billion reached. Launched simultaneously across several countries, each nation brought it to life in their own unique way. In the U.S., consumers were inspired with a Power of 3 blog series featuring helpful articles about 3 ways to show yourself some love in February and 3 simple ways to eat heart healthy complete with recipes for culinary inspiration. The Power of 3 activities rounded out American Heart month and Valentine’s Day with more reasons to eat and share walnuts. Locals and tourists in London had the opportunity to ride in one of the many Power of 3 branded taxis running all over the city.
event was a cooking show at the San Ildefonso Market in Madrid lead by a former MasterChef contestant. Social media and influencer outreach were complemented with recipes and wellness articles in mainstream media across India. To promote the versatility of walnuts in desserts, the CWC participated in one of the most popular dessert festivals in India. A variety of sumptuous desserts were created for sampling and acclaimed home chefs demonstrated 3 easy to make dessert recipes with walnuts as the core ingredient. Koreans participated in two consumer events on Facebook and Instagram to share ‘the Power of 3’ by tagging 3 friends letting them know about the benefits of Omega-3 found in walnuts. In Japan, a two-week Instagram photo contest asked participants to share photos of different ways to eat walnuts. During the campaign, Tully’s Coffee, the 4th largest coffee chain in Japan launched a new menu with three walnut laden dishes including a “Tuna Cheddar Walnut Toast”. In Germany, consumers that learned about the campaign spent an average of 8 minutes on the Power of 3 localized microsite to watch engaging cooking videos and learn about walnuts role in heart health. Major retailers joined in with samplings and point of sale materials promoting the campaign. An influencer contest was held in Spain where bloggers created recipes that could be put together in just 3 steps and posted to their social media. The recipes were published on the nuecesdecalifornia website and fans voted for their favorite - a delicious Carrot Cake. Another exciting
GROWER REFERENDUM VOTE APPROACHING ON CREDIT-BACK AUTHORITY Our spring special edition newsletter highlighted the California Walnut Board’s pursuit of formal rulemaking to amend the Marketing Order to allow for credit-back authority and its importance to the industry. The rulemaking process has continued, most recently with a USDA public hearing held in April 2020. The CWB now awaits the recommended decision and subsequent thirty day comment period. Following this the Secretary will issue a decision, and if affirmed, USDA will put the proposal to a vote of the growers, where you will be asked to vote. The CWB’s proposal requested the authority be in place for the coming marketing year, therefore the
In Turkey and the Middle East, celebrity Influencers shared posts and InstaStories about the health benefits of walnuts and how to easily incorporate them into daily life. There was even a live cooking demonstration at the Dubai Food Festival with Chef Ammar Al Ekili using California walnuts to make a walnut hummus. The 2020 campaign reached millions of people around the world letting them know that walnuts should be a part of their daily diet and in 2021, the CWC looks forward to the “Power of 3” campaign reaching even more.
voting period is expected to be in August 2020. The CWB encourages your participation in the referendum process.
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. W A L N U T
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Structure/Mechanics
proportionate share of walnuts included.
• The credit back authority, once approved, will be in the Order, whether industry chooses to use or not.
• Complete rules, regulations and eligible/ineligible activities are defined in the Credit-back Guide.
• Program authorization to spend will be determined on annualized basis in conjunction with fiscal budgeting.
What are the impacts to the Board?
• Available dollars for the crop year will be based on percent of budgeted assessment revenue. • Each handler’s share of available dollars marketing year 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.
DOMESTIC MARKETING
• Walnuts used as an ingredient in manufactured food products would receive credit-back based on the
• Available dollars for the marketing 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
• USDA Recommended decision followed by 30 day comment period. • Grower Referendum (August 2020) following USDA’s recommended decision.
AMERICAN HEART MONTH 2020 BIGGER THAN EVER! California walnuts had the biggest retail promotional campaign during American Heart Month to-date! Not only was it the first national retail program for the California Walnuts, but it was surrounded by activity in public relations, social media and foodservice. It also coincided with the launch of a new global marketing initiative, also emphasizing heart health.
This year’s first-ever February national retail campaign was successful with 23 retailers who operate over 7,300 stores supporting the program. An overall volume increase of 4.8% was seen in markets with at least one retailer participating, compared to an average volume increase of 2% for non-participating markets. The Board supported retailer participation with tagged television and radio ads in 40 markets that accounted for 36% of television households. Media markets reported 30 times 1
• To be funded from prevailing assessments, likely reduction in domestic program, given this is the largest area of CWB spend.
greater incremental sales during February than markets without any advertising. At six retailers, we enhanced the program with integrated activities from their dietitians. Participating retailers saw volume sales lifts up to 37%, with the promoted brand seeing even stronger volume lifts up to 572%. Given the scientific evidence for walnuts as a heart-healthy
Supportive but not conclusive research shows that eating 1.5 ounces of walnuts per day, as part of a low saturated fat and low cholesterol diet
and not resulting in increased caloric intake, may reduce the risk of coronary heart disease. (FDA) One ounce of walnuts offers 18g of total fat, 2.5g of monounsaturated fat, 13g of polyunsaturated fat including 2.5g of alpha-linolenic acid – the plant-based omega-3. 4
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food, American Heart Month was a timely touchpoint for media outreach. Coincidentally, the timing aligned with a
marketing initiative that aimed to raise overall awareness and consumption of walnuts by celebrating the unique
new study showing a link between the heart and gut health benefits of walnuts. During the month, efforts resulted in 93 articles with an estimated reach of 481 million, meaning our target consumer saw walnut coverage an average of 3.2 times.
omega-3 content of walnuts, inviting consumers to eat 3 handfuls a week and sharing the good news about walnuts with 3 friends. The campaign came to life in the U.S. with an integrated digital and social effort that encouraged consumers to participate in the program with an opportunity to enter the Power of 3 weekly sweepstakes.
California walnuts were integrated into a cooking segment on Good Morning America on February 12th with registered dietitian Dr. Wendy Bazilian. She prepared two of our AHA Heart-Check certified recipes while sharing with viewers the key nutritional and heart health benefits of walnuts. In addition to themed recipe posts from our annual influencer partners, we partnered with Simply Quinoa, which posted two heart-healthy recipes featuring California walnuts (Dark Chocolate Overnight Oats and Creamy Walnut Pasta) seen an estimated 6.8 million times. Also leveraging the heart health benefits of walnuts during that time period was the launch of “The Power of 3� global
Foodservice also joined in with a Restaurant Associates partnership in corporate cafes across New York City reaching an estimated 10,000 people. We promoted California Walnuts in cafes, including Chef Table Takeover lunches at Warner Media, Conde Nast, and Meredith cafes. All cafes displayed signage to promote the walnut menu items as well as fun walnut facts, tips and health messaging around the building. Efforts resulted in a 6% increase in walnut usage over the prior month. We look forward to building more enthusiasm and excitement for the program in 2021!
STAY IN THE KNOW!
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HOW DO WALNUTS FIT INTO THE PROTEIN DISCUSSION? LET’S TALK ABOUT IT. One reason consumer interest in protein has been soaring is due to the popularity of plant-based eating, and a rise in new products like plant-based burgers and ground “meat”. Although there is not a shortage of protein in the US diet, consumers want to learn more about the types and sources of protein. You may have come across the phrase 'complete protein', a term that describes foods that contain all of the essential amino acids in adequate amounts and is most commonly used among athletes and fitness enthusiasts. Essential amino acids are those that cannot be made by the body and must come from food.
WHAT CAN WE SAY ABOUT WALNUTS AND PROTEIN?
With all this talk about protein, how do nuts in general, and walnuts specifically, fit into the conversation? According to the Food and Drug Administration (FDA), animal foods (i.e., dairy products, eggs, meats, poultry, seafood) and soy are “complete proteins,” defined as a food that contains the nine essential amino acids in adequate and consistent amounts. Plant foods (i.e., beans, grains, nuts), with the exception of soy, are considered “incomplete proteins” for while they may contain all of the essential amino acids, the amounts may vary. While there is ongoing research on how to evaluate the quality of protein in foods, there is currently not enough regulatory guidance or scientific evidence to declare that walnuts are a 6
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complete protein. Under the California Walnut Board Federal Marketing Order guidelines, we are not able to state or imply it. With that said, walnuts absolutely play an important role in helping consumers meet their dietary needs by providing four grams of protein per ounce. For overall good health, it is recommended that adults and children four years and up consume 50 grams of protein per day and children one to three years old get 25 grams per day, on average. The USDA Dietary Guidelines state: “Most Americans get enough protein in their diets but may need to make leaner and more varied selections of the foods in the Protein Foods Group. These recommended choices include lean meats, seafood, and plant-based proteins such as dried peas and beans, and nuts”. Plant-based protein options, like walnuts, can also provide satiety benefits – important for helping to feel full and not overeating.
WHAT IS CALIFORNIA WALNUTS DOING TO PROMOTE WALNUTS AS A PROTEIN OPTION?
California Walnuts wants consumers to recognize walnuts as a food with protein. We are sharing this message in a variety of ways, including: • Partnering with sports dietitians to promote the benefits of walnuts to consumers including their protein content. Natalie Rizzo, MS, RD and Jim White, RD featured walnuts as a top plant-based protein in articles for Livestrong and Runner’s World which reached close to two million people. • Promoting walnuts as a convenient snack option for protein and other key nutrients that will keep you full between meals, as part of our snacking campaign. • Educating fitness professionals through a partnership with
IDEA, an organization that reaches thousands of fitness experts who have an important role in educating and influencing consumers.
• Participating in events to demonstrate walnut protein applications to foodservice professionals who play a role in menu development.
• Targeting food manufacturers with messages about walnuts as a plant-based meat alternative and examples of successful walnut products on the market.
• Leveraging a plant-based menu promotion with a large foodservice operator to showcase walnut protein on breakfast and lunch menus.
• Promoting walnuts as a protein source through direct outreach efforts toward snack and snack bar manufacturers.
WHAT IS THE TAKE HOME MESSAGE?
HEALTH RESEARCH
• Innovative recipe development, custom cooking videos and trade advertorials to inspire food professionals to use walnuts as a protein source in plant-based applications.
More and more, consumers are interested in the types and sources of protein in their diets. Current recommendations encourage people to eat a variety of protein foods including more plant-based options such as walnuts.
IMPORTANCE AND SIGNIFICANCE OF THE CALIFORNIA HEALTH RESEARCH PROGRAM: 2025 AND BEYOND
The California Walnut Commission (CWC) established a health research program 30 years ago to increase awareness and improve understanding of the unique benefits of walnuts to human health. This program continues to be a vital part of the overall mission of CWC. A priority specific to our current industry strategic plan is to support research that informs and advances health benefits of walnuts and public health awareness of these findings. In order to support this industry directive, research priorities are now identified in consultation with the CWC Health Research Advisory Group, a group of leading nutrition science professionals who provide expert insights and guidance. Findings from published research on walnut consumption: • Have been submitted to the Dietary Guidelines for Americans Committee for their consideration and information as they review the body of scientific evidence and provide advice to all Americans on what to eat and drink to promote health and reduce risk of chronic disease. • Have been instrumental in supporting qualified health claims for walnuts in the US and EU. • Have supported California Walnuts as part of the American Heart Association Heart-Check Food Certification Program and heart-healthy seal of approval from Heart UK. • Have provided opportunities for new and continuing health-related news stories and articles. For example, in the 18/19 crop year, health benefits were covered 60% of the 8 billion times walnuts were mentioned in U.S. media.
CWC supported research continues to allow walnuts to be part of the conversation when it comes to public policy, dietary recommendations and overall promotion of evidence-based nutrition science. Looking forward to 2025 and beyond, the CWC is now focusing on clinical trials with populations such as millennials and adolescents, looking at body weight, gut health and skin health.
PUBLICATIONS
The most recent publication that CWC has supported was published in the Journal of American Heart Association on April 1, 2020, “Changes in nut consumption and subsequent cardiovascular disease risk among U.S. men and women: three large prospective cohort studies”. Dr. Yanping Li of T. H. Chan School of Public Health found that increasing intake of total consumption of nuts, and intake of specific types of nuts, including walnuts, other tree nuts, or peanuts, was associated with a subsequent lower risk of heart disease. This is good news with implications including: 1. Maintaining a regular consumption of nuts is associated with lower risk for heart disease. 2. Incorporating nuts into diet is beneficial for the prevention of heart disease, even among those who previously did not consume nuts. 3. Substituting less healthful food items with nuts is associated with reduced risk of developing heart disease.
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CALIFORNIA WALNUT BOARD 101 Parkshore Drive, Suite 250 Folsom, CA 95630 Phone 916.932.7070 Email info@walnuts.org Fax 916.932.7071 walnuts.org
UPCOMING EVENTS MEETINGS
CALIFORNIA WALNUT BOARD & CALIFORNIA WALNUT COMMISSION
⊲ California Walnut Board & Commission Annual Fall Meeting Date: September 11, 2020 at 9:00 AM
Location: TBD (Depending on state guidance for group gatherings) For more info, please contact Dana Hull at (916) 932-7070
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