WEEKLY UPDATE July 8, 2016

CONTACT US @ 1315 K Street, Modesto, CA 95354 Telephone: 209.527.6453 Fax: 209.527.0630 info@westernuniteddairymen.com

WEEKLY UPDATE DELIVERY OPTIONS Send change of address or request for Update delivery to WUD by phone or fax, or email to info@westernuniteddairymen.com

LIKE US ON FACEBOOK!Western United Dairymen has a Facebook page. “Like us” today and join in on the conversation about California dairy families.

CONTENTS Page

Market Update 2

CDFA SWEEP Funding 3

Mid-year Meetings 4

Headline News 4

* Weekly Update is provided from WUD as part of your membership benefits. Enjoy the latest information on issues impacting the dairy industry and WUD’s work to represent you at the local, state and national level.

by Anja Raudabaugh, CEO Western United Dairymen

On June 29th, the Senate Subcommittee on Labor and Industrial Relations held a hearing for a gut and amend bill from Assemblywoman Lorena Gonzales. This bill, AB 1066 –decisively defeated in the Assembly where is was introduced as AB 2757, was reborn through a questionable process referred to as “gut and amend” –where the bill sponsor takes an unrelated bill in the Senate (in this case a failed education bill), guts the contents, and reintroduces the previously killed bill language in a desperate attempt to get the Assembly to take it up again. This process has been considered so sneaky in the past, it actually made the expensive signature count to

be placed on the ballot in November 2016 in an effort to have more transparency by the public in the legislative process in California (Legislative Transparency). To be clear, the bill had its shot –and was SELECTED to fail by those in the Assembly wise enough to see its true consequences on the workers and in the ag industry.

WUD pointed out during opposition testimony during the hearing that dairy families cannot pass on their costs (as with many other sectors of agriculture) to the consumer and specifically identified the regulated minimum pricing system used by the dairy industry. Alarmed, the Chairman asked the author for further explanation of this unique circumstance. Assemblywoman Gonzalez’ response… “I will continue to work with the dairy industry, and if we need to, we can slightly raise the prices in this state for milk and cheese. I think that’s a reasonable expectation if we pass a law (removal of ag overtime exemption) that they can then pass on those costs . . . I’m sure if this passes then we can have those discussions.”

(Continued on page 3)

Allied Business Members at a Glance

Ag Overtime Elimination Legislative Update

Interested in joining this group of supporters?

Call WUD today!

Page ! 2

by Annie AcMoody, Director of Economic Analysis

Your Weekly Market Update

According to USDA’s Cold Storage report, dairy stocks continued to climb in May. U.S. butter stocks ballooned 23 % over the year before. Total cheese stocks were up 12% year-over-year. Some varieties didn’t climb as fast, but American cheese (the largest category with 61% of total cheese stocks), was up 13%. American cheese represents 40% of the total cheese produced in the U.S.

Stocks are notably increasing due to lower exports and increasing U.S. milk production. One factor that has prevented stocks from going up even higher is the American consumer. So thank a cheese or butter eating neighbor, because he may have been doing his part to help. According to USDA, domestic consumption of milkfats in 2016 will be up 4% from 2015; 2016 skim solids consumption will be up 3.4% from last year.

*Your regular Market Update commentary and pricing will resume next week.*

Page ! 3

CDFA Announces SWEEP Funding Availability for 2016

The California Department of Food and Agriculture (CDFA) has begun accepting applications for the State Water Efficiency and Enhancement Program (SWEEP). An estimated $18 million will be available for competitive grant funding to provide financial assistance to implement irrigation systems that reduce greenhouse gases and save water at California agricultural operations. This project is part of the California Climate Investments, which use proceeds from the state’s cap-and-trade auctions to reduce greenhouse gas emissions while providing a variety of additional benefits to California communities.

Agricultural operations can apply for funding of up to $200,000 per project for irrigation projects that provide quantifiable water savings and greenhouse gas reductions.

Prospective applicants must access the “Application Guidelines” at www.cdfa.ca.gov/go/SWEEP for detailed information on eligibility and program requirements. To streamline and expedite the application process, CDFA is partnering with the State Water Resources Control Board, which hosts an online application tool, Financial Assistance Application Submittal Tool (FAAST). All prospective applicants must register for a FAAST account at https://faast.waterboards.ca.gov. Applications and all supporting information must be submitted electronically using FAAST by Friday August 5, 2016 at 5:00 p.m. PDT.

CDFA staff will provide guidance on the application process, provide several examples and answer any questions. There is no cost to attend the workshops. Individuals planning to attend should email grants@cdfa.ca.gov with his or her contact information, number of seats required and the workshop location. CDFA has also prepared informational video clips to assist applicants with the 2016 SWEEP application. These video clips can be viewed on the SWEEP webpage.

(Continued from page 1)

To say the least, it’s a fantastically uneducated statement that oversimplifies a thousand problems. But what’s more telling, is that the Committee had zero knowledge to counter such a complex question and pandering answer. Please contact WUD if you would like to see the full hearing video and see the shock and awe yourself.

Despite this and fervent opposition by many other industries, and an extremely powerful opposition statement by Senator Jeff Stone (R-La Quinta), the Subcommittee passed it through on a party line vote to be considered for the full Senate in August. As a reminder as to how this impacts the dairy industry, AB 1066 would repeal the current overtime wage law in California for agricultural workers, which pays workers overtime after 10 hours and 60 hours in a week, and phase in a new overtime pay law for agricultural workers culminating in a requirement to pay overtime after eight hours in one day or 40 hours in a week by 2022.

The grassroots membership efforts of Western United Dairymen, along with many other ag and industry groups, played a critical role in having the measure fail in the Assembly on June 2nd. This month, WUD is encouraging our dairy families to be loud and heard. The Senators listed below only need NOT vote, in addition to the Republicans voting no, to achieve victory and avoid this legislation going back to the Assembly this year. Please contact your nearest Senator –or all of them and let them know you OPPOSE AB 1066, and it will HURT their districts economy. It really, really DOES HELP us win when they hear from you!

Senator Counties Represeted Phone Number

Roth Riverside 951-680-6750

Pan Sacramento 916-262-2904

Glazer Contra Costa 925-942-6082

McGuire Del Norte, Humboldt, Mendocino, Sonoma

707-576-2771

Levya LA, San Bernardino 909-591-7016

Wolk Napa 707-454-3808

Galgiani Stanislaus, San Joaquin 209-576-6273

Hueso San Diego 760-335-3442

Dates District & Counties Social & Dinner LocationsTuesday - July 26 1

Shasta, Tehama, Glenn, Butte, Colusa 6:00pm I-5 Café 1165 Hoff Way, Orland

Tuesday - July 262

Sutter, Yuba, Nevada, Placer, Yolo, Solano, Sacramento

12:00pm New Hope Road Dairy 9547 New Hope Rd., Galt

Wednesday - July 204

Contra Costa, San Joaquin, 10:00amBartelink Dairy

12637 S. Van Allen Rd., Escalon

Thursday - July 215

Stanislaus 10:00amMt. View Grange Hall

9737 Crows Landing Rd., Crows Landing

Friday - July 22

6 Merced, Santa Clara, Santa Cruz, San

Benito, Monterey, San Luis Obispo, Santa 4:30pmWool Growers Resturant

609 H St., Los Banos

Friday - July 297

Madera, Fresno 11:30amDanny's Donut House

2365 W. Tahoe Ave., Caruthers

Friday - July 228

Tulare 10:00amSalle's Café

2082 North J Street, Tulare

Monday - July 189

Kings 12:00pmRound Table Pizza

208 N. 12th Ave., Hanford

mid-August10

Del Norte, Humboldt TBD TBD

Tuesday - August 211

Kern 12:00pmLino's Mexican Cuisine

2911 Taft Highway, Bakersfield

Wednesday - August 3

12 San Bernardino, Los Angeles, Ventura, Orange, Riverside, San Diego, Imperial 10:00am

Spires Restaurant 104 North Vineyard Ave., Ontario

2016 Mid-year Meetings

WUD Mid-year Meetings

Headline NewsCalifornia Dairy Industry news and topics of interest.

• Water districts sue the hand that feeds them - - The San Luis & Delta-Mendota Water Authority and the Westlands Water District are suing the U.S. Bureau of Reclamation to force it to possibly change how it’s trying to protect endangered species of fish. The suit questions the effectiveness of the existing measures intended to protect endangered species, the environmental impacts of those measures, and whether there are alternatives to those measures that would better protect both endangered fish species and allow more water to be extracted from the California Delta. The existing measures, adopted in 2008 and 2009, are based on biological opinions issued under the Endangered Species Act, the lawsuit notes. The two water exporters claim the measures are responsible for “the largest redistribution of Central Valley Project and State Water Project water supplies away from urban and agricultural uses.” They contend that the protections for fish “have jeopardized the water supply for waterfowl and wildlife refuges.” Reclamation adopted the existing measures without any review under the National Environmental Policy Act, the lawsuit contends. "If successful, the lawsuit may ultimately result in measures that actually help fish, and identify mitigation activities or alternatives that lessen or avoid water supply impacts that millions of Californians in the Central Valley Project and the State Water Project depend on," the two water districts claim. July 8, 2016 Central Valley Business Times

Be sure to attend one of Western United Dairymen’s regional meetings below. Contact your field rep if you have questions.

Page ! 4