Planting Seeds - Food & Farming News from CDFA

Drought & Flood Relief: CalOSBA Launches California Small Ag Business Drought & Flood Relief Grant Program

Is your small agricultural business recovering from a drought or flood? The California Small Agricultural Business Drought & Flood Relief Grant Program will provide relief to small agricultural businesses that experienced a decline in annual gross receipts or gross profits due to drought or flood conditions.

The grant funds will be allocated in a series of four distinct groups of small ag businesses:

Drought Group 1:

Will be allocated to small farms and socially disadvantaged farmers who are qualified small agricultural businesses that:
(a) experienced a decline in annual gross receipts or gross profits of 10 percent or more when comparing the 2022 taxable year to the 2019 taxable year and
(b) have been affected by severe drought according to a D2 or higher drought classification pursuant to the USDA Drought Monitor (view map here).
Click here to learn more.

Drought Group 2:

Will be allocated to qualified small agricultural businesses that:
(a) experienced a decline in annual gross receipts or gross profits of 30 percent or more when comparing the 2022 taxable year to the 2019 taxable year,
(b) have been affected by severe drought according to a D2 or higher drought classification pursuant to the USDA Drought Monitor (view map here), and
(c) are identified as one of the following 2022 North American Industry Classification System (NAICS) or National Taxonomy of Exempt Entities (NTEE) codes listed here.
Click here to learn more.

Drought Group 3:

Will be allocated to qualified small agricultural businesses that:
(a) experienced a decline in annual gross receipts or gross profits of 10 percent or more when comparing the 2022 taxable year to the 2019 taxable year,
(b) have been affected by severe drought according to a D2 or higher drought classification pursuant to the USDA Drought Monitor (view map here), and
(c) do not file their 2022 tax year returns until 2024.
Click here to learn more.

Flood/Winter Storm Group 1: Will be allocated to qualified small agricultural businesses that:
(a) have been affected by flood within or serve a county that has a state or federal disaster declaration for flooding (view map here) and
(b) are identified as one of the following North American Industry Classification System (NAICS) codes listed here.
Click here to learn more.

Further information about eligibility requirements is available on the grant website – click here for drought grant info and here for flood grant info. The site also includes a detailed description of the review process.

The California Small Agricultural Business Drought & Flood Relief Grant Program is administered by the California Office of the Small Business Advocate (CalOSBA).

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New detections of West Nile Virus in California horses — prevention tips from CDFA

Fourteen California horses have tested positive for West Nile Virus in recent weeks, as far north as Butte County and as far south as Orange County. Six of the horses are deceased and a number of them were unvaccinated or under-vaccinated.

Horse owners are encouraged to have their animals vaccinated to make sure they are maximizing protection against the disease. And once vaccinations occur, horse owners should be checking regularly with their veterinarian to make sure they stay current.

Californians can also do their part to prevent the disease by managing mosquitoes that carry West Nile Virus. Here are some tips:

  • Draining unnecessary standing water found in wheelbarrows, tires, etc.
  • Cleaning water containers at least weekly (i.e., bird baths, plant saucers)
  • Scheduling pasture irrigation to minimize standing water
  • Keeping swimming pools optimally chlorinated and draining water from pool covers
  • Stocking of water tanks with fish that consume mosquito larvae (Contact local mosquito control for assistance) or use mosquito “dunk” available at hardware stores.

It’s important to remember that mosquitoes become infected with the virus when they feed on infected birds. Mosquitoes then spread the virus to horses.  Horses are a dead-end host and do not spread the virus to other horses or humans. For more information on West Nile Virus, please visit this link.

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The California story — California Grown report shines spotlight on state’s leading role in food production

California farmers, ranchers and farmworkers work together to produce more than 400 different specialty crops, and California Grown, also known as the Buy California Marketing Agreement, was created to promote those products.

California Grown is a statewide marketing program that utilizes creative storytelling and other innovative approaches to reach millions of consumers. The message for Californians is simple — buying California products brings direct benefit to the state’s economy, communities, farmers, ranchers and consumers. And the message for out-of-state consumers is equally simple — California products are high-quality, nutritious and diverse.

The “CA Grown” license plate is an iconic symbol around the world and encourages all consumers to “Be Californian — Buy California Grown.”

The program’s annual report to the California legislature may be viewed here.

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Climate adaptation assistance for Ag — off-road vehicle incentive program promotes purchase of zero-emission equipment

The California Air Resources Board has launched the Clean Off-Road Equipment Voucher Incentive Project (CORE) to help businesses and fleets invest in the most advanced zero-emission off-road freight, agricultural, harbor craft and construction technologies.

The program will offer vouchers of up-to $1 million to help cover the costs of equipment and
infrastructure. Additional funds and priority funding are available if the equipment is operated in a pollution-overburdened community (refer to program guidelines) or if the equipment
is purchased by a small business.

The following equipment is covered by the program:

Agricultural equipment
Airport cargo loaders
Construction equipment
Container-handling equipment
Forklifts (greater than 8000 lbs. lift capacity)
Ground power units (GPU)
Harbor craft
Landscaping equipment
Mobile power units (MPU)
Mobile shore-power cable management systems
On- and off-road terminal tractors
Railcar movers
Rubber-tired gantry (RTG) cranes
Shore-side electric vessel supply equipment,
including hydrogen fueling
Transport refrigeration units
Wide-body aircraft tugs

Please see this link for more information about the CORE Project.

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USDA announces $12.3 million investment in private-sector tech innovation for food and agriculture — California companies to receive more than $1.4 million

From a USDA News Release

The USDA has announced an investment of more than $12.5 million as part of the USDA Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The awards will support 76 small businesses conducting high-quality research that addresses critical scientific challenges and opportunities in agriculture.

Nine California firms working on these challenges have been awarded funding totaling more than $1.4 million.

  1. Astalake Biosystems, Emeryville — $181,500 for a project that would aim to improve yields, stress tolerance and biomass quality in alfalfa.
  2. Cellbae, Inc, Berkeley — $174,992 for the validation of rapid test kits for foodborne pathogens.
  3. Intelligent Fiber Optic Systems Corp, San Jose — $174,962 for sensor advancements in greenhouses.
  4. Isca Technologies Inc, Riverside — $125,000 for pest control for the diamondback moth.
  5. OnaVia Inc, Hayward — $175,000 for development of an online nitrogen analyzer.
  6. Quorum Bio, Inc – San Ramon — $181,476 for research of fertilizer alternatives.
  7. Rednox Inc, Pleasanton — $174,976  for NOX and N20 sensors for both subsurface and ambient measurements.
  8. Soliculture Inc, Scotts Valley — $161,172 for a new type of solar panel that can integrate with agricultural production.
  9. Tiami, Elk Grove — $125,000 for repeater coordination for ultra-long-range rural wireless broadband access.     

“Small businesses play a key role driving innovation in the food and agriculture sectors,” said Dr. Manjit K. Misra, director of the USDA’s National Institute of Food and Agriculture, which funded some of the projects. “By partnering with research institutions, these small businesses are bridging an important gap between where science is conducted and how it is made available to the public.”

View USDA news release

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Climate-Smart Food Systems — California works to divert byproducts to livestock feed rather than landfills

In 2022 the California feed industry diverted more than 18.5 million tons of byproducts from human food, fiber and biofuel production to livestock feed. If these byproducts were not diverted to feed, they would likely have gone to landfills.

The byproducts include canola meal, cotton seed, almond hulls, distiller’s grains, bakery byproducts, and culled fruits and vegetables.

The carbon emissions of incinerating byproducts at a landfill are, on average, 60 percent greater than feeding them to cows, according to the UC Davis CLEAR Center.

California leads the nation in the production of nuts, fruits, vegetables, wine and beer. Processing these foods creates various byproducts, such as fruit pulp/pomace, almond hulls, brewer’s grains and other products not consumable by humans. Livestock, particularly ruminants (cattle), have digestive systems that can utilize the remaining nutritional value of these byproducts. For example, more than 85 percent of what cattle consume is feeds that humans can’t, including by-products (40 percent) and forages (45 percent). Importantly, diversion of byproducts to livestock feed creates an “upcycling” opportunity that channels food waste into the production of high-quality, nutritious products like meat, milk and eggs.

The amount of byproducts diverted to livestock in 2022 is based on tonnage reported to CDFA’s Commercial Feed Regulatory Program. Visit CDFA’s Safe Animal Feed Education (SAFE) Program’s Human Food Waste (Byproduct) Diversion webpage for more information.

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Wanted — Input for regulatory study on food safety and water quality

CDFA has contracted with Crowe LLP to conduct a Regulatory Alignment Study in collaboration with the State Water Resources Control Board. The study is evaluating food safety and water quality regulations as part of an effort to streamline administrative processes and optimize information collected by the state.

Stakeholder input is being sought for this effort, and Crowe is offering listening sessions with all interested parties, either individually or in groups. Input will be kept confidential.

Key Regulatory Programs Being Evaluated:

1. Produce Safety Program

2. Irrigated Lands Regulatory Program

3. Dairy / Confined Animal Facilities Program

4. Stormwater Industrial General Permit

5. State and Regional Winery Programs

Email RegulatoryAlignmentStudy@crowe.com to schedule a listening session.

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Governor Newsom announces new climate partnership with Australia

CDFA Secretary Karen Ross, second from left, joins Governor Newsom and the California and Australia delegations for the MOU signing.

From a Governor’s Office news release

California and Australia have signed a Memorandum of Understanding (MOU), forging a new climate partnership between two of the largest economies in the world.

The MOU outlines five years of cooperation between California and Australia on clean energy, clean transportation, clean technologies, nature-based solutions, climate adaptation, green finance and investment and circular economy. 

Led by Governor Gavin Newsom and The Honorable Dr. Kevin Rudd, Australia’s Ambassador to the United States, the California and Australia delegations signed the historic MOU at the Stanford Mansion in Sacramento.

What Governor Newsom said: “California and Australia are on the front lines of the climate crisis. From extreme heat and historic drought to catastrophic wildfires and rising sea levels, the last few years have further crystallized the need for urgent action. It’s not enough for us to act alone. We’re coming together to confront the greatest crisis our world has ever known for the good of all Californians and Australians.” 

What Ambassador Rudd said: “I’m proud to join Governor Newsom for the signing of this landmark climate MoU. While Australia and California face shared challenges from the climate crisis, we also share a mutual ambition to find bold solutions to combatting climate change and achieving net zero emissions. This MoU accelerates our cooperation and affirms our intent to be global leaders in areas including clean transportation, clean energy, nature-based solutions, research and development, and climate-friendly business.” The text of the MOU can be found here. In addition to the MOU, Governor Newsom and Ambassador Rudd signed a Joint Statement affirming their partnership on the climate action outlined in the MOU. 

Following the MOU signing, the California Governor’s Office of Business and Economic Development (GO-Biz) co-hosted a business forum with CalChamber and the Australian Embassy that focused on the importance of public-private collaboration in the fight against climate change.

HOW WE GOT HERE: California’s world-leading climate policies have led the state to exceed its 2020 climate target four years ahead of schedule, and created partnerships across the U.S. and around the world:

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Secretary Ross looks back on informative visit to Indonesia

Secretary Ross with a winner of a cheese tray contest featuring California products.

BY CDFA Secretary Karen Ross

Our last two days in Jakarta included “first ever” experiences for me!  In addition to informative meetings with two industry groups — the Global Food and Beverage Association and the U.S. Soybean Export Council — we traveled outside of the city to watch the filming of an Indonesia “Master Chef” episode featuring Nebraska beef with ranch couple Matt and Audra Allen from Arthur NE, and Professor Chris Calkins, an international expert on beef quality whose work has led to new cuts of meat, including the very much in demand flat iron steak. He recently retired from the University of Nebraska, Lincoln after more than 40 years.  

We also participated in a CA Milk Advisory Board “Real California Milk” exclusive CA cheese tasting event with Chef Barbara Alexander, a consulting chef for the Culinary Institute of America at Greystone in the Napa Valley. Approximately 25 social media influencers and media representatives were in attendance and most were posting on Instagram throughout the event!  The chef’s cooking demonstration featured five delicious and easy to prepare dishes that ended with each participant creating their own cheese tray from a beautiful assortment of CA cheeses, dried fruits and tree nuts with local honey comb and jams. Our team selected the winners of best presentation cheese trays.  

The USDA’s Foreign Ag Service worked hard to make both of these novel events happen as a way to introduce U.S. products and show how they can be integrated into traditional Indonesian menus. My colleagues came up with lots of fun content to pitch to Master Chef producers to feature the U.S. ag products we are so proud to share with the world!! Along those lines, I was thrilled to meet Douglas Lim of his family’s importing company, Pandu Rasa, at a reception last week. He had been in California three weeks ago on a visit sponsored by our western regional association, WUSATA.

Our two ag industry meetings reinforced how important it is to “show up” and take the time to understand the country, its culture, and its regulatory system.  We spent a great deal of time in our discussions to gain greater clarity on new Halal certification and labeling requirements that will take effect in October 2024. I am very fortunate to have traveled with this great group of colleagues and to have the opportunity to meet so many warm and welcoming Indonesians!    

My experience last week reinforced for me the critical importance of hosting importers, chefs, and government regulatory officials on inbound missions so they visit our farms, processing plants, and our state labs to better understand the great care for food safety and the high quality of our CA GROWN products for consumers around the world. 

Secretary Ross (seated–center) at a meeting with the US Soybean Export Council. More than 90 percent of soybean imports to Indonesia come from the US.
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Secretary Ross in Indonesia — learning more about the markets for Ag

Secretary Ross (third from left) at a reception in Indonesia hosted by NASDA

By CDFA Secretary Karen Ross

What an incredible learning journey with colleagues on the NASDA (National Association of State Departments of Agriculture) Emerging Markets visit to Indonesia.

In addition to government meetings with the Ministry of Agriculture and the Bureau of International Cooperation and others, we have met with two state-owned enterprises and hosted a reception for about 75 government officials, importers, in-country cooperators, and organizations representing ag.

Touring outdoor markets and retail stores is an excellent way to understand food consumption, culture, and the palate of the country. We enjoyed the hospitality of the general manager of a “Grand Lucky” store, a fast-growing retail chain in Jakarta and Bali.

We have also met with representatives of the American Chamber of Commerce. They were so knowledgeable and helped us better understand doing business in Indonesia. This country is clearly an important place to be but requires a long-term plan, patience, and relationship building without expecting overnight results.

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