The Legislature has shot down a Republican attempt to ease the employer burden for California’s ag overtime law. SB 628 proposed a dollar-for-dollar tax credit to farmers on overtime wages.
Championing the bill, Sen. Shannon Grove of Bakersfield leaned on recent research to point out that farmworkers have been taking home less money since the law passed in 2016. She argued wages are the only factor farmers can control — at a time when regulatory mandates out of Sacramento have driven up costs for water and other necessities.
Backers: Michael Miiller of the California Association of Winegrape Growers, a co-sponsor on the bill, raised alarms that “the ag industry is on the decline in California,” with the wine market at a historic low. CAWG President Natalie Collins said in a statement that her members “share the governor’s belief that supporting farmworkers is essential” and described the bill as a modest, targeted fix.
Opposed: The California Federation of Labor Unions blamed employers for less take-home pay and reasoned the industry can afford the added costs since it hit $59 billion in farmgate sales in 2023. Labor advocates claimed taxpayers would subsidize employers under the proposal, draining public dollars from other priorities.
Democrats locked arms behind the powerful labor coalition and voted the measure down in its first hearing.
Remember: In 2022 the labor federation played a key role in persuading President Joe Biden and other national Democratic leaders to back a card check bill in the Legislature. Gov. Gavin Newsom bowed to the pressure and signed the bill — after vetoing it the prior year.
Almond Board releases initial acreage report
The Almond Board estimates state almond growers will have roughly 1.4 million bearing acres and remove 52,000 acres this year. That’s nearly 20,000 fewer acres removed from the 2024 initial estimate.
Agricultural and environmental research firm Land IQ partners with the board to use on-ground and remote sensing to map California almond orchards. This is the sixth annual acreage report from the association, which will release a final estimate in November.
California is the world's 4th largest economy
Gov. Gavin Newsom announced Wednesday that California surpassed Japan as the fourth largest global economy. The ranking is based on International Monetary Fund and U.S. Bureau of Economic Analysis data.
The IMF’s 2024 World Economic Outlook estimates California’s nominal GDP at $4.1 trillion — $80 billion more than Japan.
The governor’s office boasted state tourism spending, new business development, agricultural production and manufacturing capabilities among its economic highlights.
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On that note: Newsom took the opportunity to jab at federal tariff policies, connecting them to a projected $100 billion annual decrease in the U.S. economy.
“California’s economy powers the nation, and it must be protected,” he said in a statement.
Canada’s produce farmers eye temporary gains from tariff backlash
Canadian consumers are protesting U.S. trade policy with their wallets, with many pivoting purchases to domestic alternatives of imported products. Fruit and vegetables are among the top targets for substitutes, and Canadian farmers are anticipating some temporary market gains.
“We have had an increase in activity and phone calls from domestic buyers hoping to secure and lock down the asparagus crop for this year,” Mike Chromczak, an asparagus and watermelon farmer in Ontario told Agri-Pulse.
Read our full report at Agri-Pulse.com.
USDA withdraws proposed salmonella framework
USDA is withdrawing the salmonella framework it proposed last summer after years of study, drawing praise from the broiler industry but sparking concern from consumer advocates.
In July, the Food Safety and Inspection Service released its proposed framework for raw chicken carcasses, chicken parts, ground chicken and ground turkey. The proposal would have declared salmonella an adulterant if those products had levels at or above 10 colony-forming units per gram and prevented them from entering the market or made them subject to recall.
Read our full report at Agri-Pulse.com.
Bayer-backed pesticide labeling bill enacted in North Dakota
North Dakota became the first state to enact a law intended to shield pesticide manufacturers from state liability lawsuits, with the signing of a bill by Gov. Kelly Armstrong on Thursday.
Farm groups and Bayer praised enactment of HB 1318, which recognizes that a state pesticide label “consistent with” EPA’s carcinogenicity classification “is a sufficient warning label” for the purposes of litigation.
Read our full report at Agri-Pulse.com.
Rollins eyes harvest time for trade aid decision
Ag Secretary Brooke Rollins says USDA will assess market losses from President Donald Trump’s tariffs closer to harvest and then provide aid to producers if it’s necessary.
“We will be putting some program in place to mitigate a lot of that damage,” Rollins says in an interview for this week’s edition of Agri-Pulse Newsmakers.
The first Trump administration provided about $28 billion in trade assistance for the impact of retaliatory tariffs in 2018 and 2019. The Commodity Credit Corp. account used to provide that aid is down to a few billion dollars.
But Rollins says she is “very confident” that congressional leaders on both sides of the aisle will agree to replenish the account as needed.
Keep in mind: Rollins’ timetable makes sense. Economists tell Agri-Pulse it could be several months before retaliatory tariffs have a significant impact on soybeans and other commodities.
This week’s Newsmakers will be available today at Agri-Pulse.com.
Analysis estimates impact of expiring estate tax provision
Increases in land values are raising the stakes for GOP tax legislation this year. The estate tax exemption was doubled in 2017, but that provision is set to expire unless Congress extends it as part of a budget reconciliation bill Republicans hope to move in coming weeks.
According to a new analysis by the American Farm Bureau Federation, a California farm with at least 568 acres would get hit with the lower exemption, which would be $7.6 million for an individual in 2026, according to AFBF. It would take 808 acres in Iowa to hit the lower exemption limit, 1,691 in Georgia and 2,718 in Texas.
Keep in mind: The acreage estimates don’t include the value of other assets, including machinery, and the exemption is doubled for a married couple. This year, the exemption is worth $13.99 million for an individual and $27.98 million for a married couple.
Are they talking?
Beijing and Washington are giving competing accounts of whether the U.S. and China are engaging in discussions on a possible deal to de-escalate trade tensions.
A Chinese Commerce Ministry spokesperson told reporters Thursday that the two countries are not currently negotiating. He added that the U.S. should remove tariffs if it wants to negotiate a solution.
Just hours later, however, Trump said the two countries had been speaking. “They had meetings this morning, and we’ve been meeting with China,” he said at the White House.
Take note: Some China watchers are skeptical discussions could lead to a deal. Huan Zhu, who manages the analysis service China Trade Monitor, said in a webinar Thursday that Beijing is in no rush to negotiate.
She argued the U.S. won’t offer anything particularly appealing to Beijing, given it has indicated it won’t loosen export restrictions and likely won’t eliminate tariffs imposed for national security and unfair trade reasons, even it cuts reciprocal duties.
But, but, but: At least one set of negotiations is coming along, according to Treasury Secretary Scott Bessent. Bessent told reporters in the Oval Office Thursday that talks with South Korea are progressing faster than expected. He suggested the two countries could reach an “understanding” next week.
Republicans call for ethics probe on House Ag ranking member’s state town halls
The House Agriculture Committee’s top Democrat, Minnesota Rep. Angie Craig, is drawing criticism from Minnesota Republicans over her appearances at town halls outside her district during the two-week Easter recess.
Republicans have largely forgone town halls during this latest break, after receiving vocal criticism at previous events.
Keep in mind: Craig has indicated she is interested in running for the seat of Sen. Tina Smith, D-Minn. The senator previously announced she would not run for reelection at the end of her term.
Minnesota Republican Reps. Tom Emmer, Brad Finstad, Michelle Fischbach and Pete Stauber asked the House Committee on Ethics and the Committee on House Administration to review possible violations of House rules by Craig. They argue Craig is using her congressional office, which is taxpayer funded, to raise campaign donations. This would violate House ethics rules, they argue.
“That’s really rich on their part," Craig told local reporters after a recent town hall. "First of all, look, this is not being paid for by a single taxpayer dime. And the fact that they’re raising the question just gives me another opportunity to talk about the fact that they won’t come talk to their constituents. So, I welcome any question they might have about this, and I’m going to keep showing up.”
Ag industry coalition tells administration to stay in FAO
A coalition of groups from across the ag sector are pushing senior administration officials to keep the U.S. in the United Nations Food and Agriculture Organization.
More than 50 groups penned a letter to cabinet officials touting the benefits of FAO membership. The letter comes as the State Department reevaluates U.S. involvement with international intergovernmental organizations in response to a February executive order.
“FAO serves a vital organizational role in advancing science-based policies and leading initiatives that promote plant and animal health, enhance food safety, and support nutrition security,” the groups write. They single out the Codex Alimentarius Commission and International Plant Protection Convention as playing a critical role in reducing trade barriers based on shaky science.
UK ag warns leaders tariff retaliation could squeeze livestock sector
The United Kingdom’s agricultural sector is warning domestic policymakers of the potential impacts of retaliatory tariffs on U.S. ag exports on the livestock sector.
Following Trump’s imposition of a 10% baseline tariff on imports from the U.K., the U.K. government published a list of products that could be in line for retaliatory duties. Among the goods listed are a slate of agricultural inputs, including seeds, animal feeds, fertilizers and crop protection products.
Ed Barker, head of policy at the U.K.’s Agricultural Industries Confederation, told Agri-Pulse he’s been informing policymakers of how new duties on these products will impact local farmers.
“They need to be aware of the facts of what we're importing from the U.S. and why they're relevant to U.K. supply chains,” he said. The U.K. is collecting public feedback on the list of products until next week. Barker said he has been encouraging its ag producers to weigh in.
Final word
“You can't eat solar plants. You just can't.” — Sen. Shannon Grove, warning colleagues that large-scale solar projects have been replacing farmland in her San Joaquin Valley district.
