Mutual Board Votes on Free Rider Proposal Mutual Stresses

VOLUME 58, ISSUE NUMBER 13, APRIL 11, 2008
Mutual Board Votes on Free
Rider Proposal
On April 9th, the Florida Citrus Mutual Board of Directors met via conference call to
further review the Florida Department of Citrus’ “unified juice tax” proposal which would
fundamentally alter Chapter 601 and the tax that funds the industry’s marketing and research
efforts.
After two hours of in-depth discussions, the Board passed the following position by a
majority vote:
“Mutual supports the FCC’s proposal to alter Chapter 601 for the 2009 legislative
session. In the meantime, the proposal could be completely vetted by the industry. As
part of this recommendation, Mutual urges the FCC to schedule several workshops
on the proposal designed to answer lingering questions i.e. effect on current contracts,
USTR’s opinion, WTO implications, etc... Mutual would also take responsibility for
educating Legislators and relevant Federal officials on the issue and developing an
appropriate legislative strategy to ensure passage next year. In addition, the Florida
Citrus Processors Association (FCPA) has agreed to voluntarily increase the “opt in”
provision of the equalization tax which could provide a partial, short-term solution
to the free rider for the ’08-’09 season while generating additional funds for canker
and greening research. We ask the FDOC to actively negotiate with the Processors to
increase their equalization tax payment for the ’08-‘09 season.”
“The free rider is a complex issue. We must ensure that any and all proposals protect the
Florida citrus grower,” said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual.
“Moving forward with an incomplete proposal is not in the grower’s best interest. Let’s
scrutinize this, get it right and take a buttoned up proposal to the Legislature in 2009.”
“In the interim, we have an opportunity to work with the Processors to uncover additional
research dollars.”
(Please see Free Rider continued on page 3.)
Mutual Stresses Importance of
Immigration Reform to Legislators
Florida Citrus Mutual provided Legislators with information on the importance of immigration reform as part of Tuesday’s Legislative workshop in Tallahassee on the issue.
Mutual stressed the importance of a reliable workforce to harvest Florida crops and
maintain a domestic source of food. The workshop was called by Legislative leaders to
discuss six immigration related bills currently under discussion.
The six immigration bills would institute a variety of punitive measures on illegal immigrants. Mutual has its eye on a bill sponsored by State Sen. Mike Fasano, R-New Port
Richey, that denies the agricultural assessment to Florida growers who knowingly employ
illegal aliens. The measure would also expose growers to fines of $25,000.
“There is nothing the state of Florida can do unilaterally to solve global warming. And
there is nothing we can do unilaterally to solve immigration,” Marco Rubio, the House
speaker told the Associated Press.
Speaker Rubio and Rules & Calendar Chairman David Riviera of Miami are both
Cuban Americans and are very sensitive to over-zealous immigration reform as well as
the needs of our farmers.
Mutual will continue to monitor the progress of the Fasano bill and other related legislation.
Greening: What Every
Grower Must Know
Want to know everything going on
with greening and canker research?
Look no further than Florida Citrus
Mutual’s educational sessions at the
2008 Florida Citrus Industry Annual
Conference in Bonita Springs, Fl. on
June 11-13.
The sessions, titled Greening:
What Every Grower Must Know, will
feature lead scientists from IFAS and
USDA updating growers on specific
pest and disease projects, where they
stand and what final results the industry
can expect.
There will also be a presentation
by Juliano Ayres of Fundecitrus on the
actions to control greening in the São
Paulo State. Remember, growers can
receive CCA’s and RUP CEU’s by attending the educational sessions.
“The future of our industry might
well depend on research so it’s clear
growers want to keep informed of the
latest news,” said Michael W. Sparks,
executive VP/CEO of Florida Citrus
Mutual. “We took special care in addressing this need at the 2008 Annual
Conference. I expect the session to truly
be a learning experience for growers.”
Topics include:
• What we are learning about the
HLB pathogen inside citrus plants
• Materials and application methods for suppression of psyllid
• Use of guava as a measure to
affect greening
• SARs and other products being
evaluated for greening and canker
• Transgenic plants for use
against greening and canker
For more information or to register
for the Annual Conference, visit Mutual’s website at www.flcitrusmutual.
com.
Economics Lead to Increase in Agricultural Crimes
As agricultural crimes such as stolen equipment, copper thefts and cut fences are occuring
increasingly each day, it is important that growers and land owners learn to properly protect
themselves and their property. It is also important to be aware of the resources available to assist
in preventing and resolving these crimes. Florida Citrus Mutual recently discussed agricultural
crime with Polk County Sheriff Grady Judd.
1) What is defined as agricultural crime? We classify a crime as agricultural when the victim’s business is primarily agricultural in nature
and the crime itself is directly related or connected to the agriculture aspect of the business. 2) Have you seen an increase in agricultural related crimes? Why?
Yes we have. The increases we have seen are mainly thefts involving copper, aluminum, or
other valuable metals. These thefts are usually from grove pumps, radiators, and other equipment
with copper tubing. Thieves are removing any copper or aluminum wiring on electric pumps
they can safely get. On some tractors, it’s also the radiators and whatever other precious metal they can steal. We have also
seen increases in diesel fuel thefts from grove pump tanks.
The easy answer to “why?” is economic. Scrap yards and recyclers are paying significantly higher dollar amounts for
copper and aluminum than they were just a few years ago. With higher commodity prices, stealing these metals has become
more lucrative for criminals. The same applies to diesel fuel thefts. With the extremely high cost of fuel these days, the market
for stolen diesel has increased. Thieves have become more innovative and ingenious—they are using high volume pumps to
quickly siphon the diesel into their own tanks. 3) What can a grower do to prevent these types of crimes?
There are many things a grower can do—generally falling into two categories: 1) marking items prone for theft and 2)
“hardening” targets to discourage and prevent theft.
Large items on grove pumps, such as a radiator, need to be clearly marked to make it easier to identify stolen parts and allow scrap yards to help us sort out criminals from legitimate scrappers. A high visibility paint that is not easily removed should
be applied to the radiator. Etching or stamping unique numbers on the items will also help. We have been to scrap yards and
seen piles of radiators, but none have had any visible means of identification. Generally, all items of significant value should
be marked and owners should keep an up-to-date and accessible inventory.
Some items should be better secured, such as welding brackets or bars over the radiator to make it harder for the thief to
remove them. The fill tubes on fuel tanks should have some type of anti siphon device installed—it could be as simple as what
common vehicle fuel tanks have now. It should be something that allows fuel to be pumped in, but prevents a suction tube
from being inserted in the fill tube. The idea of “hardening the target” is to make it as hard as possible for the thieves to steal
fuel or other items.
Also, be observant of your surroundings and environment. Many times it is the grove owner, manager or worker who
knows better who should or shouldn’t be in their grove, or the neighbor’s grove for that matter. Many thefts are occurring
during the daylight hours when normal operations are running. If you see suspicious activity, call and report it immediately. Please do not get involved by trying to confront the suspects or trying to stop them.
Also consider “high tech” solutions. We have recently been using game or scout cameras with great success. We have
made several recent arrests using wireless scout cameras using the photos and information retrieved from these cameras. Both
owners and law enforcement may not have the time or resources to physically stake out expansive rural areas. Anything that
can give us a leg up on the criminals will help.
4) If a grower suspects he’s been a victim of an agricultural crime, what can he do?
Call our office and report it. The Agriculture Crimes Unit works varying hours depending on our pattern of calls for
service and where the problems are. We have made a point of getting our direct numbers out to the agricultural community. If a victim calls and is told there are no agriculture units currently working, they should call the Sheriff’s Office main crime
reporting number to have a patrol deputy respond. (As always, if there is an emergency, dial 9-1-1 immediately.) Agricultural
related crimes are forwarded to the Agriculture Crimes Unit for follow up. If the crime is in progress and depending on the
nature of the crime, many times we will call out an Agriculture Deputy to get involved from the beginning and follow through
with the investigation.
Also, ask us about getting Heartland Crime Stoppers involved—if we have enough unique information about the crime,
we will distribute a Crime Stoppers News Release to the media in hopes that someone in the community knows something and
will provide us anonymous information in return for a reward. We have solved numerous crimes using Crime Stoppers—it’s
a great resourse.
Mutual Members Encouraged to Vote in Upcoming Elections
It’s that time of year when Florida Citrus Mutual members will determine the 21 individuals that will represent their interests
on the Florida Citrus Mutual Board of Directors for the 2008-09 season. Members are encouraged to attend elections, which will
be held in the ten districts on Thursday, May 15.
Mutual members are entitled to one vote for each entity owned in different legal capacities. Memberships which are not in individual names may be represented by a duly accredited representative appointed in writing.
Those members interested in running for a seat on the Board of Directors may run in the district in which they reside or any
district in which they have groves in membership with Florida Citrus Mutual. Those running for office must declare prior to the
election, which district they will seek election in.
Locations and times for elections in each district can be found below.
For more information regarding the election of Florida Citrus Mutual Board of Directors, please call Rusty Wiygul at (863)
682-1111.
Mutual Election Locations and Times
District 1: Oviedo, Nelson & Company, 110 E. Broadway ~ 10:00 a.m. One director.
District 1 includes Alachua, Flagler, Levy, Marion, Putnam, Seminole and St. Johns counties, and the portion of Volusia County
not in the Indian River production area.
District 2: Dade City, Pasco County Ag Center ~ 2:30 p.m. One director.
District 2 includes Citrus, Hernando, Pasco and Sumter counties.
District 3: Tavares, Lake County Ag Center ~ 10:00 a.m. One director.
District 3 includes Lake County.
District 4: Winter Garden, P.H. Freeman & Sons Conference Room, 640 E. Plant St ~ 2:30 p.m. Two directors.
District 4 includes Orange and Osceola counties.
District 5: Balm, Gulf Coast Research and Education Center ~ 2:30 p.m. One director.
District 5 includes Hillsborough and Pinellas counties.
District 6: Lake Alfred, Ben Hill Griffin Auditorium/CREC ~ 10:00 a.m. Four directors.
District 6 includes Polk County.
District 7: Vero Beach, Indian River Citrus League ~ 2:30 p.m. Three directors.
District 7 includes Brevard, Indian River, Martin, Palm Beach and St. Lucie counties and the portion of Volusia County included
in the Indian River production area.
District 8: Arcadia, DeSoto County Extension Office ~ 10:00 a.m. Two directors.
District 8 includes DeSoto, Manatee and Sarasota counties.
District 9: Sebring, Highlands County Ag Center ~ 10:00 a.m. Three directors.
District 9 includes Hardee, Highlands and Okeechobee counties.
District 10: LaBelle, Dallas Townsend Ag Center ~ 2:30 p.m. Three directors.
District 10 includes Broward, Charlotte, Collier, Dade, Glades, Hendry, Lee and Monroe counties.
(Free Rider continued from page 1.)
Under the FCC proposal, a new tax, called the
“unified juice tax,” would be levied on all juice
packed in Florida, eliminating the current box
tax on fruit. The unified tax would apply AFTER
processing and blending takes place, so country of
origin would be irrelevant and all parties treated
equally. In theory this would preserve the tax’s
constitutionality while forcing foreign free riders
to pay their fair share to the FDOC.
According to estimates the unified tax would
generate about $5 million in additional funding
for the FDOC. For more information on the unified tax visit
http://www.flcitrusmutual.com/industry-issues/
fdoc_fcc.aspx
Variety
Early/Mids/Temples
Navels
Valencias
White Grapefruit
Red-Grapefruit
Tangelos
Early Tangerines
Honey Tangerines
Total all citrus
Crop Remaining To Be Harvested
(As of April 6, 2008, based on March 11th crop forecast)
This Season
Last Season
Boxes
Percent
Boxes
(1,000)
%
(1,000)
(1,715)
0.0
46
42
1.7
20
65,074
77.0
40,951
917
12.6
1,462
2,058
12.5
2,813
(30)
0.0
0
(18)
0.0
1
258
12.3
328
66,586
34.1
45,621
Citrus Administrative Committee - Weekly numbers are preliminary. Season to date numbers are certified through 3/16/08
Percent
%
0.1
0.8
65.2
16.0
16.1
0.0
0.0
15.6
28.6
Farm Bill Discussion
Continues
Key Farm Bill negotiators recently
said that they want to come as close
as possible to finishing a Farm Bill by
April 18, the date the current extension
expires. Last month President Bush asked
Congress to finish the Farm Bill by April
18 or send him an extension of the 2002
Farm Bill that would last at least one
year. House and Senate negotiators said
they had made progress but acknowledged
the biggest roadblock is what funding
offsets the Senate Finance Committee
and the House Ways and Means Committee will provide to pay for new Farm
Bill costs above the baseline of the 2002
version.
The Senate Agriculture Chairman has
said he would like to get the bill through
Congress by April 18, but other negotiators believe a short-term extension will
probably be necessary. Mutual in partnership with the Specialty Crop Alliance, a consortium of
agriculture interests, are sending a letter
to House and Senate leaders urging them
to work quickly to finish a new bill and
maintain the highest level of funding
for fruit and vegetable programs such
as research, nutrition and marketing.
Weekly Citrus Update
PROCESSED CITRUS
Week Ending 3/29/08 (1,000 gallons)
FCOJ (420 brix)
2007-08
2006-07
FCGJ (400 brix )
2007-08
2006-07
Season
Season
Season
Season
Pack
Week
To Date
Week To Date Week
To Date Week To Date
From Fruit
4,981
70,557
3,034
53,581
865
9,540 1,079
11,572
Foreign Import
306
30,325
909
14,507
0
0
0
0
Movement
2,509
68,899
2,515
75,955
428
7,848
229
5,329
Retail
363
7,745
249
8,704
1
97
1
111
Institutional
296
8,864
374
9,986
0
22
1
29
Bulk
1,850
52,290
1,892
57,265
427
7,729
227
5,189
Inventory 91,923
71,510
12,685
13,654
Bulk White 5,975
6,832
Bulk Red 6,674
6,776
Chilled OJ (SSE)
Chilled GJ (SSE)
Season
Season
Season
Season
Pack
Week
To Date
Week To Date Week To Date Week
From Fruit
20,068
308,778
20,421 281,765 2,605
22,591 1,632
From Conc. 282
8,608
450
9,375
0
(2)
0 Movement
10,923
283,921
12,196 298,332 1,579
13,382
902
Inventory 216,569 177,673
23,357
FRESH SHIPMENTS**
Week Ending 4/6/08 (1 thousand of 1-3/5 bu. boxes)
Oranges
Grapefruit
2007-08***
E/Mid
Navels
Valencia
Total
Season
Week
To Date
0
1,187
2
1,760
88
396
90
3,343
2006-07
Season
Week
To Date
0
1,448
3
1,731
118
611
121
3,790
2007-08***
Season
Week
To Date
Colored
White
Total
312
28
340
7,221
1,641
8,862
To Date
20,505
1
10,707
21,788
2006-07
Season
Week To Date
290
16 306 7,539
1,764
9,303
DELIVERED-IN PRICES FOR PROCESSED FRUIT*
Oranges
2007-08
($ PER POUND SOLIDS)
Week Ending 3/29/08
2006-07
Season
Season
Week To Date
Week
Canners Avg. 1.41
1.39
2.23
E/Mid
1.39
Valencia
1.41
1.40
2.23
In-Season Spot and Contracts
1.46
1.40
2.32
E/Mid
1.39
Valencia
1.46
1.45
2.32
Multi-Year Contracts
1.29
1.37
1.94
E/Mid
1.38
Valencia
1.29
1.30
1.94
To Date
2.02
1.95
2.23
2.05
1.97
2.27
1.82
1 .76
1.95
Grapefruit
2007-08 Season
Week To Date
W & C
0.63
0.50
Colored 0.62
0.49
White
0.63
0.53
2006-07
Season
Week To Date
0.63 0.73
0.63 0.72
0.62 0.75
Test House Factor - Grapefruit 90% Effective Mar.15 - Apr.30
Total U.S. Imports of FCOJ Jan. 2008 11.0
(mil. gal. 42’ Brix-rounded)
* Does not include advertising taxes or inspection fees, does not
include participation returns.
** Includes Exports *** Citrus Administrative Committee Weekly numbers are preliminary
Fresh season-to-date numbers are certified through 3/16/08.
Triangle is published bi-weekly except in the months of July and August by Florida Citrus Mutual, 302 S. Mass. Ave., Lakeland, FL, 33801. Its purpose is to inform member
growers and handlers of events of interest in the citrus industry statewide, nationwide and internationally; and to provide members with information they can use to maximize
production and profits. Copyright 2008, all rights reserved. Reprint by permission only.
Florida Citrus Mutual
302 S. Massachusetts Ave.
Lakeland, FL 33801
COPYRIGHT © 2008 FLORIDA CITRUS MUTUAL
APRIL 13, 2008
ISSUE NUMBER 13
WWW.FLCITRUSMUTUAL.COM
(863) 682-1111