Category: Economics

  • Rely® 280 Herbicide Available for Use in California Avocado Groves

    The California Department of Pesticide Regulation (DPR) has approved the herbicide Rely® 280 (glufosinate-ammonium) for use in avocado groves in California. Rely® 280 is a post-emergence broad-spectrum herbicide for use against broadleaf and grassy weeds. Glufosinate-ammonium is an excellent alternative to glyphosate, especially for those weeds that have developed glyphosate resistance.

    The California Avocado Commission provided funding for Dr. Peggy Mauk, extension professor for subtropical horticulture at the University of California, Riverside, to conduct efficacy trials with glufosinate-ammonium and the IR-4 program provided funding for the required phytotoxicity (crop safety) trials. “Glufosinate-ammonium is an effective broad-spectrum herbicide,” said Mauk. “The weed that is the biggest problem here in Riverside is mare’s tail or hairy fleabane (Erigeron bonariensis). Glufosinate will kill it depending on the application timing and size of the plants. Treating for weeds is also going to be seasonal… the spring is usually worse because spring rains bring a lot of weeds, especially this past year.”

    Currently, growers must have a copy of the DPR approved supplemental label in their possession when using Rely® 280. The DPR-approved label has a stamp on it with the wording “LABELING ACCEPTABLE State of California Department of Pesticide Regulation Pesticide Registration” and can be downloaded here. This supplemental label expires on December 1, 2025, and BASF, Rely® 280’s manufacturer, anticipates that all old product will be used by that date and new product with avocado listed on the package label will be fully in the supply chain by that date.

    Dr. Mauk’s phytotoxicity trials found minimal damage, assuming sound application practices are followed. “Spray applications should not be made when there is a breeze,” Mauk emphasized. “If the wind carries the herbicide onto the plants, there can be some leaf discoloration. The discoloration appears as occasional purple spots on the leaves. There is not widespread damage. We also never saw any discoloration on the avocado fruit.”

    General questions about this registration can be directed to CAC’s Research Director Dr. Tim Spann at tim@spannag.com or (423) 609-3451. For specific questions regarding the use of Rely® 280, growers should contact their Pest Control Advisor. — By Ben Faber, UC Cooperative Extension

  • Victoria Hornbaker Moves from Director of Citrus Pest & Disease Prevention Division to Plant Health and Pest Prevention Services Division

    The California Department of Food and Agriculture’s (CDFA) Citrus Pest and Disease Prevention Division (CPDPD) has announced that as of May 14, 2024, Victoria Hornbaker, former director of the CPDPD, will transition to her new role as the director of the CDFA’s Plant Health and Pest Prevention Services (PHPPS) Division. David Gutierrez, branch chief of the CPDPD, will serve as interim director while a recruitment process is conducted to find a permanent hire for the role.

    During her tenure, Victoria played a pivotal role in the development of the CPDPD, which was officially declared a division of CDFA in 2019. For the past 11 years, Victoria has led efforts to develop and execute innovative strategies to manage various citrus pest and disease threats, including the Asian citrus psyllid and Huanglongbing.

    With Victoria’s transition to her new position as director of the PHPPS Division, David Gutierrez has been appointed as the interim director of the CPDPD, bringing his experience of serving as branch chief to the role, and will maintain the CPDPD’s various operations and activities during this transitional period.

    CDFA will be recruiting for a permanent director to lead the CPDPD in the coming months. For any questions regarding the CPDPD or this transition, please email cdfa.cpdpd@cdfa.ca.gov.

  • Rising Fruit Fly Populations Concern California Growers

    Fruit fly populations spiked last season and brought multiple species, compounding the damage to vineyards and orchards following Hurricane Hilary.  This is a continued concern for California fruit growers moving into the 2024 season with limited pest management tools available. Watch this brief California Ag Network interview with Adam Borchard from the California Fresh Fruit Association to learn more.

  • Fresno County Leads Nation in Processing Tomato Production (May California Forecast)

    As of May 15, California’s tomato processors reported they have or will have contracts for 11.5 million tons of processing tomatoes for 2024. This production estimate is 1 percent below the January intentions forecast of 11.6 million tons and 10 percent below the final 2023 contracted production. The May contracted acreage of 228,000 is 2 percent below the January intentions forecast of 232,000 acres and 40,000 acres less than last year’s final contracted acreage.

    Fresno County remains the top California county and leading the national in contracted planted acreage for 2024 with 53,000 acres. Yolo, Kings, Merced, and San Joaquin make up the remaining top five counties, accounting for 65 percent of the 2024 total contracted planted acreage for California.

    Mild spring temperatures and adequate water have aided the development of the processing tomato crop. Planting began in late February in warmer areas of the state and has progressed with little to no weather delays. There were reports that the beet leafhopper has been detected in some areas, warranting close monitoring and increased pest control. At this point, yields are projected to be a little higher than last year. Harvest is expected to start in early July.

    Tomato supplies were replenished after growers in 2023 produced the largest crop in years. As a result, contracted acreage has decreased in most counties. Planted acres in Kings County increased significantly, as cropland that was previously under water has since been recovered. Processors anticipate that this year’s tomato harvest will be on schedule and will not extend beyond normal timelines, reducing the need for late- season deliveries.

    This early processing tomato estimate is funded by the California League of Food Producers.

  • New UC Study Estimates Costs for Growing Coastal Organic Strawberries

    A new study that can help growers and other readers estimate costs and potential returns for Central Coast organic strawberries was recently released by UC Agriculture and Natural Resources, UC Cooperative Extension and the UC Davis Department of Agricultural and Resource Economics.

    Organic strawberries represent approximately 13% of all strawberries produced along the Central Coast.

    “This study provides growers with a baseline to estimate their own costs, which can help when applying for production loans, projecting labor costs, securing market arrangements, or understanding costs associated with water and nutrient management and regulatory programs,” said Brittney Goodrich, UC Cooperative Extension specialist and study co-author.

    The cost study models a management scenario for a 30-acre farm, 27 acres of which are planted to organic strawberries.  The remaining acres are for the irrigation system, roads, and buildings.  The study describes the cultural practices used in organic strawberry production and harvest, including land preparation, soil fertility and pest management, irrigation and labor needs.

    The 20-page study shows costs for each operation, material inputs and costs, and cash and non-cash overhead costs in a variety of formats for one production and harvest cycle.  A ranging analysis is also included and shows potential profits or losses over a range of prices and yields.

    The new study, “2024 Sample Costs to Produce and Harvest Organic Strawberries,” can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.

    For a detailed explanation of the assumptions and calculations used to estimate the costs and potential returns for each crop, readers can refer to the narrative portion of each study.

    Sample cost of production studies for many other commodities grown in California are also available at https://coststudies.ucdavis.edu.

    For more information about the organic strawberry cost study, contact Mark Bolda, University of California Cooperative Extension farm advisor, at mpbolda@ucanr.edu or Jeremy Murdock in the Department of Agricultural and Resource Economics at jmmurdock@ucdavis.edu.

    UC Agriculture and Natural Resources brings UC information and practices to all 58 California counties. Through research and Cooperative Extension in agriculture, natural resources, economic growth, nutrition and youth development, our mission is to improve the lives of all Californians. Learn more at ucanr.edu and support our work at donate.ucanr.edu.

  • UC Davis Ends Strawberry Licensing Agreements with Eurosemillas

    The University of California, Davis, a leader in the development of world-class strawberry varieties for the California and global markets, is terminating all strawberry licensing agreements with Eurosemillas S.A., which has been a master licensee for older UC Davis strawberry varieties in countries outside of the United States.

    The decision to terminate the UC Davis Public Strawberry Breeding Program licensing agreements with Eurosemillas does not come lightly. The University of California provided due notice to Eurosemillas of the university’s position that Eurosemillas had defaulted on its agreements, and the university’s concerns were not addressed.

    The university is taking steps to provide stability for nurseries and fruit growers during this transition period, and ensure continued access to older UC Davis strawberry varieties. Newer UC Davis strawberry varieties continue to be available throughout the world per licensing agreements with other partners, Fresa Fortaleza and Global Plant Genetics.

    “The UC Davis Public Strawberry Breeding Program has been a huge success for consumers, growers, California’s agricultural economy and the global strawberry market,” said Helene Dillard, dean of the UC Davis College of Agricultural and Environmental Sciences. “The step the university is taking today is necessary to support our growers and our program, and to ensure the scientific breakthroughs at UC Davis and resources provided by the state of California are cared for, managed and marketed properly.”

    UC Davis holds active patents on 20 strawberry varieties, all of which have been licensed to nurseries to sell to strawberry growers.

    The university directly licenses strawberry varieties to California nurseries, offering state strawberry growers exclusive access to new varieties for two years and reduced royalty rates to give them a competitive advantage. The university also directly licenses varieties elsewhere in the United States and Canada.

    In markets outside North America, the university contracts with master licensees to work with nurseries, farmers and growers. International markets where UC Davis strawberry varieties are grown include the European Union, the United Kingdom and Switzerland; Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay; China; Egypt, Israel, Jordan, Morocco and Turkey; South Africa; Canada; New Zealand and Australia.

    UC has been and will continue to be vigilant about supporting the UC Davis Public Strawberry Breeding Program and honoring its obligations to farmers and growers to ensure access to high-quality, affordable varieties in California and elsewhere. As a public research institution, UC diligently protects and promotes its intellectual property to maximize public value, support thriving agricultural economies and ensure reinvestment in university research and education.

    About the UC Davis Public Strawberry Breeding Program

    Strawberry varieties developed at UC Davis produce about 60% of all strawberries consumed worldwide. Varieties developed at UC Davis have made California a leading producer, with the state growing more than 87% of North American strawberries. The UC Davis Public Strawberry Breeding Program is funded primarily by revenue from licensing strawberry varieties. Licensing funds also support patent expenses, campus inventors, the UC Office of the President and UC Davis. Annually, the University of California generally receives between $8 million and $9 million in licensing revenue from the strawberry breeding program.

    UC Davis develops strawberry varieties for greater yield, disease resistance, flavor, adaptation to different growing conditions and other positive characteristics. UC Davis breeders work collaboratively with industry leaders to produce fruit that meets the market demand and address the needs of growers. The program also trains students and postdoctoral researchers to be leaders in this vital industry. — By Bill Kisliuk, UC Davis

  • Israel May Seek U.S. Pistachio & Vegetable Imports Due to Turkish Trade Ban

    USDA Foreign Ag Service — Turkey, Israel’s third largest foreign supplier of imported agricultural and related products, recently announced a ban on all trade with Israel due to the regional conflict. Accordingly, Israeli importers may look to source certain agricultural imports from elsewhere. Israel’s leading agricultural and related imports from Turkey include fresh and processed agricultural produce—specifically tomatoes, olive oil, cucumbers, onions, and eggplant. For the United States, pistachios may be in greater demand as Turkey is the only other foreign supplier to the Israeli market.

    Turkey Bans all Trade with Israel

    On May 2, 2024, Turkey announced a ban on all trade with Israel due to the “worsening humanitarian tragedy” in Gaza. According to the Turkish Minister of Trade, the ban will be lifted when a sufficient flow of humanitarian aid flows into Gaza. As a result of the ban, the Israeli government is looking to increase domestic production, Israeli importers are looking for new or expanded sourcing for certain agricultural imports, and regional media reports some Israeli importers are looking for alternative routes to circumvent the ban from Turkey.

    Depending on its length, the trade ban could significantly impact the Israeli market as Turkey is a strong trading partner due to its geographical proximity, a bilateral free trade agreement established in 1996, and competitive prices. Moreover, in the past six months, many Israeli importers looked to increase imports from Turkey as trade via the Red Sea has been disrupted by Houthi attacks on vessels passing through the Bab al-Mandab Strait.

    Turkish Exports to Israel

    In calendar year 2023, total Israeli imports from Turkey were valued at roughly $5.3 billion (5.7 percent of total Israeli imports). For agricultural and related products, Turkey was the third largest foreign supplier to Israel, after Russia and the United States. Israel imported $543 million in agricultural and related products from Turkey (5 percent of the total value of its agricultural and related imports) in 2023.

    As seen in the chart below, Turkish tomato exports represent the largest agricultural export to Israel. However, sourcing for other agricultural products, such as olive oil, sunflower seeds, and certain types of fish, may also be impacted. Furthermore, a quick increase in Israeli production for some agricultural products would be difficult to realize as it could take many months or years to sufficiently supply gaps.

    For the United States, pistachios may see increased opportunities as Israel only imports pistachios from Turkey and the United States (Note: Total value of Israeli imports of pistachios totaled $40.5 million in 2023).

  • USDA Funding to Address Specialty Crop Export Challenges

    U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor today announced the availability of funding for the first five projects under the new Assisting Specialty Crop Exports (ASCE) initiative.

    The ASCE initiative is part of USDA’s commitment to create more, new and better markets at home and abroad for U.S. producers and agribusinesses. The innovative partnership between USDA and the specialty crops sector will focus on projects to address the non-tariff trade barriers that hinder U.S. exports of fruits and vegetables, tree nuts, horticultural crops and related products.

    “Today, USDA is committing more than $20 million to support U.S. specialty crop exporters in their efforts to overcome trade barriers and open overseas markets,” Under Secretary Taylor said. “We’re excited to be accepting proposals from partners interested in implementing projects that will target cross-cutting issues that were identified in our discussions with a diverse set of stakeholders. U.S. specialty crop exports totaled $25.8 billion last year, increasing the bottom line for our producers and driving economic development in their local communities and beyond. With the ASCE initiative, we look forward to expanding specialty crop exports and generating even greater benefits.”

    The project opportunities for which USDA is accepting applications are:

    Sustainable Packaging Innovation Lab – to support research and implementation projects that advance U.S. specialty crop exports through innovative solutions to emerging overseas regulatory requirements for packaging and labeling;

    Maximum Residue Limit (MRL) Regional Harmonization – to address existing and potential trade needs in Asia, Latin America, and Africa related to MRLs for U.S. specialty crops entering these regions, while supporting development of risk-based and trade-facilitative policies that are consistent with international standards such as Codex;

    Import MRL Guideline Implementation in Asia-Pacific Economic Cooperation (APEC) Economies – to support establishment of import MRLs in key U.S. export markets through the adoption and implementation of official APEC MRL guidelines that facilitate trade and are consistent with international standards such as Codex;

    Data Generation for Codex and Harmonized MRL Setting – to reduce the number of missing and misaligned MRLs by supporting collaborative research and data generation capacity for the establishment of Codex MRLs; and

    MRL Quick Reference Sheets for Specialty Crops – to develop a set of quick reference sheets for specialty crop exporters that include MRLs for the top foreign markets.

    After touring the packaging materials lab at the University of Wisconsin-Stout today, Under Secretary Taylor said, “The work being accomplished by these students and researchers will help create innovative, sustainable packaging materials that will help specialty crop exporters meet the requirements of our trading partners and extend the shelf-life of their products to ensure cost-competitive, highly nutritious American products move safely  from our farm to consumers’ plates globally.”

    For more information about the ASCE initiative and the current funding opportunity, visit: https://fas.usda.gov/programs/assisting-specialty-crop-exports-asce-initiative

    USDA is an equal opportunity provider, employer, and lender.

  • California Fruits and Vegetables Prove Some of the Safest in the World

    Newly released California Department of Pesticide Regulation (DPR) data show that 97% of fresh fruit and vegetable samples collected and tested contain no illegal pesticide residue.

    The department’s 2022 California Pesticide Residue Monitoring Annual Report includes information on 3,281 produce samples collected from more than 500 businesses throughout California.

    Key findings from the report include:

    • 97% of fresh produce tested had no detectable pesticide residues or had residues below health-protective thresholds set by the federal government.
    • 37% of all samples collected had no detectable pesticide residues, while another 60% had residues below federal benchmarks. Just 3% of all samples had illegal residue levels.
    • Only 1% of domestically grown produce sampled and tested contained illegal residues.
    • No illegal residues were found on 78 types of produce tested, including highly consumed products like avocados and apples.
    • Of the illegal residues found, 82% were on imported produce.

    DPR samples produce from wholesale and retail outlets, distribution centers, and roadside and farmers markets. Samples include imported and domestically grown produce that have been both organic and conventionally farmed. When illegal detections are found, the department traces the produce back to the store, distributor and farmer. Produce with illegal detections are quarantined and may be destroyed to prevent further distribution of tainted products.

    Samples are analyzed by scientists at California Department of Food and Agriculture laboratories and tested for 500 types of pesticides and related compounds. The testing occurs on unwashed, unpeeled produce. Residue quantities above limits set by the U.S. Environmental Protection Agency are illegal to sell. These limits are called “tolerances” and are set for specific pesticides found on specific crops.

    Violators may face fines or other penalties. In one case, results found through DPR’s monitoring led to a $10,000 fine levied by the Kern County Agricultural Commissioner’s Office for illegal use of multiple pesticides on strawberries.

    In gathering produce samples, special emphasis is given to the types of produce commonly consumed by children. The department also prioritizes produce varieties with a history of illegal pesticide residues, produce originating from countries with past illegal-residue detections, and products often treated with pesticides listed under Proposition 65 as carcinogens or reproductive toxins.

    Information about DPR’s food safety program, plus past reports, can be found here.

    Watch this YouTube video on the residue monitoring program.

  • Compost Tax Credit Bill for California Farmers Progresses Through Legislature

    California growers investing in compost to boost soil fertility on the farm may soon reap additional benefits in the form of a tax credit. Michael Miiller from the California Association of Winegrape Growers (CAWG) joined Matthew Malcolm on California Ag Network to share how this promising CAWG-sponsored bill is currently making its way through legislature. Watch this brief video to learn more.