BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 2504 Hearing Date: 6/21/16
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|Author: |Committee on Agriculture |
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|Version: |6/15/16 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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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 :
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|Assembly Floor: |79 - 0 |
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|Assembly Appropriations Committee: |19 - 0 |
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|Assembly Agriculture Committee: |10 - 0 |
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SUPPORT :
California Farm Bureau Federation (Sponsor)
OPPOSITION :
California Seed Association
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