BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 2504 Hearing Date: 6/21/16 ----------------------------------------------------------------- |Author: |Committee on Agriculture | |-----------+-----------------------------------------------------| |Version: |6/15/16 Amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- Subject: Seed Advisory Board: assessments: alfalfa seed producers SUMMARY : This bill would authorize the Seed Advisory Board to make recommendations to the secretary of the California Department of Food and Agriculture(CDFA) to assess alfalfa seed sold in this state to fund research to benefit the alfalfa forage industry; would authorize the board to assess alfalfa hay producers up to $0.10 per pound of alfalfa seed sold by the producer; and, upon recommendation of the Seed Advisory Board, establishes an alfalfa seed subcommittee, as specified. BACKGROUND AND EXISTING LAW : The California Seed Law (CSL) was enacted in 1967 to ensure that agricultural and vegetable seed is properly and accurately identified on the product label. Seed is analyzed through the Seed Services Program administered by CDFA. The CSL is locally enforced by county agricultural commissioners, who enter into cooperative agreements with the secretary of CDFA and agree to maintain a statewide compliance level on all seed sold in the county. Funding for this program is entirely supported through industry seed assessments and registration fees and is administered by CDFA. (Food and Agriculture Code (FAC) §52251, et seq.). The Seed Advisory Board was created to make recommendations to the secretary of CDFA in regards to seed law and regulations, AB 2504 (Committee on Agriculture) Page 2 of ? enforcement, seed laboratory diagnostics, and annual budgets. Advisory board members are appointed by the secretary and consist of registered seed labelers representing seed production, conditioning, marketing and utilization; persons who receive or possess seed for sale in California; and two members of the public. Existing law: 1) Authorizes the secretary of CDFA to regulate seed sold in California to ensure that agricultural and vegetable seed is properly and accurately identified on the product label (Food and Agricultural Code § 52251 et seq.). 2) Establishes the Seed Advisory Board to make recommendations to the secretary of CDFA in regards to seed law and regulations, enforcement, seed laboratory diagnostics, and annual budgets. PROPOSED LAW : This bill: 1) Authorizes the Seed Advisory Board to make recommendations to the secretary of CDFA to assess alfalfa seed sold in this state to fund research to benefit the alfalfa forage industry. 2) Authorizes the Seed Advisory Board to assess alfalfa hay producers up to $0.10 per pound of alfalfa seed sold by the producer to fund research to benefit the alfalfa forage industry. 3) Authorizes the secretary of CDFA, upon the imposition of an assessment fee, to appoint an alfalfa seed subcommittee to advise the secretary on funding alfalfa research with the proceeds of the assessments collected. 4) Comprises the nine-member subcommittee as follows: eight alfalfa hay producers, two from each of the 4 specified regions, and one public member. AB 2504 (Committee on Agriculture) Page 3 of ? ARGUMENTS IN SUPPORT: According to the author, "AB 2504 would allow the Seed Advisory Board to advise and make recommendations on assessments to fund research for the benefit the alfalfa seed industry to the Secretary of the California Department of Food and Agriculture. Alfalfa is California's tenth largest commodity with a farm gate value in 2014 of $1.4 billion. Alfalfa hay is planted on approximately 875,000 acres in the state. Currently in California there is less than $25,000 dedicated to alfalfa seed research by the Alfalfa Seed Production Research Board. Nationally, alfalfa ranks third in value at $10.7 billion, behind only corn and soybeans. There is only $2.1 million allocated for alfalfa research by the federal government. To be clear, AB 2504 does not prescribe an assessment. It allows the Seed Advisory Board, which is made up of labelers and sellers of seed, to make recommendations to CDFA, if the Board decides there is a need to fund alfalfa seed research." ARGUMENTS IN OPPOSITION: According to the California Seed Association, this bill would "create a unique and unprecedented assessment just on alfalfa seed for alfalfa forage research. Currently there are already three funding sources for alfalfa forage research. [?] Prior to implementing an additional assessment on just one type of seed for activities unrelated to the seed program, a thorough review of these other funding sources and the research plan should be commenced." COMMENTS : Need for this bill. According to the author, there are very little funds dedicated to California alfalfa research. Given California's unique climate conditions, research conducted in this state can more specifically address the challenges facing California alfalfa producers, such as irrigation methods and drought resistance. This bill would allow the Seed Advisory Board to make recommendations to CDFA to assess alfalfa seed producers to fund alfalfa research. Furthermore, according to proponents, this bill provides an opportunity to create a dedicated funding source, ensuring long term research AB 2504 (Committee on Agriculture) Page 4 of ? commitments by the University of California to improve alfalfa production. Alfalfa. California leads the nation in alfalfa hay and seed production. In 2014-15, alfalfa hay was California's 11th top agricultural commodity with a farm gate value of $1.4 billion, and alfalfa seed ranked 63rd with a $72 million farm gate value. Nationally, alfalfa hay is the 10th most valuable agricultural commodity, valued at $8.5 billion. Alfalfa research funding. The Alfalfa Seed Production Research Program was established in 1973 as a Marketing Order within CDFA and is governed by the Alfalfa Seed Production Research Board. This program was developed to provide funds for research relating to the production of alfalfa seed. The program is funded through an industry assessment paid equally between alfalfa seed producers and processors, and the annual budget is $35,000. A public hearing is held by CDFA every five years to reconsider the continuation of this program, and the last hearing was held in 2012. On February 12, 2016, USDA announced the availability of $1.85 million in funding for the Alfalfa Forage and Research Program, created by the 2014 Farm Bill, which funds research that improves alfalfa forage and seed yields and trains producers to utilize best management practices. Past projects include research conducted at UC Davis to ensure the sustainability of Western U.S. alfalfa production by developing irrigation strategies and resilience to drought. Each project can receive maximum funding of $250,000, with a required 100% match. The National Alfalfa & Forage Alliance (NAFA) announced on May 3, 2016, the development of the U.S. Alfalfa Farmer Research Initiative (alfalfa checkoff program), a "farmer-funded investment in alfalfa-related research to help drive innovation and profitability in the alfalfa industry." Participation in this program is voluntary by seed brand, and the assessment is $1 per bag of alfalfa seed. According to the NAFA president, "Until now, alfalfa was the only major crop without a farmer-funded checkoff program." NAFA plans to develop a list of research priorities and circulate a Request for Proposals to all known public U.S. alfalfa researchers. PRIOR AB 2504 (Committee on Agriculture) Page 5 of ? ACTIONS : ------------------------------------------------------------------ |Assembly Floor: |79 - 0 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |19 - 0 | |--------------------------------------+---------------------------| |Assembly Agriculture Committee: |10 - 0 | | | | ------------------------------------------------------------------ SUPPORT : California Farm Bureau Federation (Sponsor) OPPOSITION : California Seed Association -- END --