2022/2023 CA LGMA Member Packet

2022/2023 MEMBER PACKET

Thank you for being a California LGMA Member.

Enclosed are materials to help you navigate the 2022/2023 fiscal year, including information about: • Staff & Leadership • The New Strategic Plan • Food Safety Standards • Sales & Marketing Support • Assessment Rate

CEO Letter May 9, 2022 Dear LGMA Member, It’s been a busy year at LGMA, and we hope you’ll agree, also a productive year!

The pandemic effect was still a limiting factor for many of us, but we did not halt needed progress in leafy greens safety. Here are three highlights: The Canadian Food Inspection Agency offered a new pre-harvest testing option for romaine lettuce imports. The pre-harvest option offered LGMA members a way to save time and money when compared to finished product testing.

The LGMA Food Safety Standards were updated last July as part of our members’ commitment to make leafy greens safer. These changes will become an official part of the CA LGMA audit checklist in June 2022 and span four areas: • Root Cause Analysis • Adjacent Land Risk Assessments • Risk-Based Pre-Harvest Testing • A New Approach to Soil Amendments & Crop Inputs* *The soil amendment and crop input audit questions will be informational only this season.

The LGMA office was relocated from Sacramento to Salinas. Members can stop by and say hello anytime at:

Thank you for being a 11 Quail Run Circle, Suite 102 California LGMA Member.

Salinas, CA 93907 Phone: 831-272-3141

Enclosed are materials to help Now, let’s look forward, and where LGMA is headed the future. the 2022/2023 you innavigate fiscal year, including Advisory Board, Committees and Staff The Advisory Board guides the LGMA programs and staff.

A Board list isabout: included in this information packet. Please note that new officers were elected at our March board meeting, they • Staff & Leadership include: • Chair: Jan Berk | San Miguel Produce | Ventura • The New Strategic Plan • Vice-Chair: Robert Verloop | Coastline Family Farms | Salinas • Food Safety Standards • Secretary-Treasurer: Matt Amaral | D’Arrigo Bros. of CA | Salinas • Sales & Marketing Support Additional members of the Executive Committee include Dan Sutton, Immediate • Assessment Rate Past-Chair and Ron Ratto, Chair of the Training Committee.

CEO Letter (continued) I want to take this opportunity to acknowledge the tremendous leadership Dan Sutton has provided and continues to provide to the LGMA. He is passionate about this program, producing safe food, and is a tremendous face of the growers for LGMA. Thank you Dan for your time, energy, and passion- you make a difference!

If you or one of your staff are interested in becoming more involved in the LGMA, we need participation on three standing committees – Technical, Training, and Marketing/Communications. If you are interested in, please contact me. A complete staff contact list is included.

Strategic Plan We have recently completed a strategic plan developed with a task force and board engagement, as well as other stakeholders. A copy of the new plan is included.

Food Safety Standards / Metrics This year there is one focus area for updating the Food Safety Standards/Metrics and that is related to Pre-Harvest Testing. While we know testing can be controversial, Western Growers has assembled a group of subject matter experts, including industry to determine under what conditions, and for what reasons, testing should be conducted. This work is in its early stages, and enclosed you can learn more about the process.

We are pleased to share that we have launched a new resource to support members.

LGMA Connect is an online resource library for use by LGMA members as well as growers, harvesters and industry providers that provides food safety updates, training, and other resources. Check it out: www.lgmaconnect.com Marketing & Sales Support Thank you for being a you We wanted to share materials that can help your sales and mark eting team.

Enclosed will find some general messaging about the LGMA that you can use as well as the official ways to use the LGMA Service Mark and MemberCalif Mark. ornia LGMA Member .

Assessments & CDFA Notices Enclosed are materials to help The LGMA board has voted to maintain the assessment rate at $0.0110 per 24-count navigate the 2022/2023 equivalent. CDFA has also asked that we send you you the attached Admininstrative Rules.

fiscal year, including

Thank you for your ongoing support of the LGMA and your valiant efforts to provide safe and healthy products to consumers. Your participationinformation and engagement about: make a difference.

Sincerely,

Tim York

• Staff & Leadership • The New Strategic Plan • Food Safety Standards • Sales & Marketing Support • Assessment Rate

2022/2023 STAFF, BOARD & MEMBER LIST

MA STAFF RESOURCES STAFF LG Connie Quinlan

Program Coordinator connie@lgma.ca.gov 831-594-8060

Greg Komar Tim York

CEO tim@lgma.ca.gov 831-320-3137

Brooke Palmer

Technical Director greg@lgma.ca.gov 408-607-2232

April Ward

Administrative Assistant brooke@lgma.ca.gov

Marketing Communications april@lgma.ca.gov 916-947-0751

916-441-1240

Alyssa Licata

Compliance Officer alyssa@lgma.ca.gov 831-884-2062

Thank you for being a California LGMA Member.

Enclosed are materials to help you navigate the 2022/2023 fiscal year, including information about: • Staff & Leadership • The New Strategic Plan • Food Safety Standards • Sales & Marketing Support • Assessment Rate

ADVISORY BOARD

Thank you for being a California LGMA Member.

Enclosed are materials to help you navigate the 2022/2023 fiscal year, including information about: • Staff & Leadership • The New Strategic Plan • Food Safety Standards • Sales & Marketing Support • Assessment Rate

MEMBERS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Agro Jal Farms, Inc. Amigo Farms, Inc. Andrew Smith Co. Babe Farms, Inc. Baloian Packing Co., Inc. Beachside Produce, LLC Bella Vista Produce, Inc. Bengard Ranch, Inc. Bonipak Produce Co. Boskovich Farms Braga Fresh Family Farms / Braga Fresh Foods C and E Farms, Inc. Church Bros, LLC / True Leaf Farms Cinagro Farms, Inc. Classic Salads, LLC Coastal Fresh Farms Coastline Family Farms, Inc. Curation Foods, Inc. D'Arrigo Bros. Co. of CA Dan Andrews Farms Deardorff Family Farms Dole Fresh Vegetables Duda Farm Fresh Foods, Inc -CA Durant Distributing Dynasty Farms EpicVeg, Inc. Field Fresh Farms Fresh Choice Marketing, Inc. Fresh Express, Inc. Fresh Kist Produce Fresh Venture Farms George Amaral Ranches, Inc. Gold Coast Packing Co. Golden WestVegetables, Inc. Greengate Fresh, LLLP Grimmway Farms Harbinger Group, LLC dba Misionero Heritage Farms, LLC Hitchcock Farms, Inc. Ippolito International J. Marchini Farms Jayleaf, LLC Joe Heger Farms, LLC Kenter Canyon Farms Lakeside Organic Gardens, LL C Mainas Farms, LLC Mann Packing Co., Inc. Marmolejo Farms, Inc. Mike Abatti Farms, LLC Muranaka Farm, Inc.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Muzzi Family Farms Ocean Mist Farms organicgirl, LLC Pablo's Produce Pacific Fresh Produce, Inc. Pacific Internati onal Marketing Pajaro Valley Fresh Fruit and Veg Dist.

Peter Rabbit Farms / Amazing Coachella, Inc. Pismo Oceano Vegetable Exchange Premium Valley Produce, Inc. Ratto Bros., Inc. Ready Pac Foods, Inc. River Fresh Farms, LLC Royal Rose, LLC Sabor Farms Salad Savoy Corp.

San DiegoFarms, LLC dba Fresh Origins San Miguel Produce Santa Barbara Farms, LLC Silva Farms, LLC Spinaca Farms, Inc. Steinbeck Country Produce Sun Terra Produce Traders, Inc. Sunsation Farms,Inc. Talley Farms, Inc. Tanimura and Antle Fresh Foods, Inc. Taylor Farms The Nunes Co., Inc. The Salad Farm, LLC TLC Custom Farming Company, LLC Vessey and Company, Inc. Visionary Vegetables, LLC Western Harvesting, LLC Zada Fresh Farms

Thank you for being a California LGMA Member.

•

Enclosed are materials to help you navigate the 2022/2023 fiscal year, including information about: • Staff & Leadership • The New Strategic Plan • Food Safety Standards • Sales & Marketing Support • Assessment Rate

2022/2023 NEW STRATEGIC PLAN

CALIFORNIA LEAFY GREEN M A R K E T I N G AG R E E M E N T S T R AT E G I C P L A N 2 0 2 2 - 2 0 2 5

FACILITATED AND PREPARED BY

LGMA MEMBERS: When I look back at the history of the California Leafy Green Marketing Agreement (LGMA), we have a lot to be proud of. As an industry, we came together in a time of crisis and took action. We held ourselves accountable and created rigorous food safety standards that drove the industry forward. And, most importantly, we made leafy greens safer — but that doesn’t mean our work is done.

In fact, amid so much change in recent years, the call to action is stronger than ever to ensure LGMA continues to push itself and the leafy green community to demonstrate leadership in addressing current challenges and opportunities in the marketplace. A rapidly changing world, along with selecting a new chief executive officer in 2020, made the time ripe to take a strategic look at the next evolution of LGMA. For that, we engaged Nuffer, Smith, Tucker (NST) to assist us in developing the enclosed strategic plan.

Strategic planning is about answering four basic questions: Where are we now as an organization?

Where do we want to be in the future? How will we get there? And lastly, how will we know when we have arrived? To answer these questions, a comprehensive planning process was developed (see Pg. 3). The end result is a plan that takes site on an ambitious new vision where LGMA certified members are universally recognized as providing the safest leafy greens.

Driving toward this new vision, we will focus on four strategic priorities: continuously evolving LGMA standards and the audit process; growing industry relationships and support; engaging buyers and government agencies; and building public confidence.

Throughout my career, I have always felt passionate about the importance of food safety and for that reason, I was honored when chosen to lead LGMA. That said, I was also challenged when first considering how to take the great work of the organization and make it even better — and we now have a clear roadmap to do just that.

Thanks to the LGMA strategic planning task force and LGMA board, the current strategic plan is ambitious. It explores new opportunities with research. It examines ways to improve the standards by looking at postfarm gate risks. It challenges us to create a smarter audit process that includes even more growers who supply LGMA members, and it prioritizes — like never before — customer engagement with an aim of growing support for LGMA and its standards.

Importantly, it also clarifies our values, providing clear guidance on how decisions will be made moving forward. As you will see, one of those values is focused on collaboration, something I know is essential to driving progress on this plan. To that end, I look forward to continuing to collaborate with our members and supply chain partners to carry out LGMA’s important mission of adopting food safety standards, verifying practices, and promoting a culture of food safety for leafy greens.

To making leafy greens even safer, Tim York Chief Executive Officer

As we move forward, the plan puts a lot of weight on our shoulders as individuals, companies and as LGMA. However, I am confident that — as we have done in the past — we will push beyond the status quo and in doing so, build confidence and trust in leafy greens by making them even safer.

Regards, Dan Sutton Chairman of the Board

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S T R AT E G I C PLANNING PROCESS

The LGMA strategic plan represents input from various members of the leafy green community. In addition, the plan was iterative, allowing multiple opportunities for board review before gaining final board approval. Specific steps in the planning process included: 1. Interviews with strategic planning task force and board.

LGMA developed a strategic planning task force designed to represent the diversity of the leafy green community (see below). The task force, along with the LGMA board, were interviewed about organizational strengths and weakness along with opportunities and threats. Input was also gathered on key elements of the plan, including the values, mission, vision and purpose of the organization.

2. Electronic survey of board alternates and staff.

LGMA wanted to ensure board alternates and staff could also make their voices heard. For that reason, an electronic survey was developed. Board alternates were also given the option to conduct a telephone interview, should they prefer to weigh in beyond the electronic survey.

3. Board preview meeting of findings from interviews and survey.

Findings from the interviews and electronic survey were shared with the board in advance of the task force meeting. During this board preview, the board also weighed in on the findings of steps one and two, and offered additional guidance to the strategic planning task force.

3. Strategic planning meeting with the planning task force; staff planning sessions.

Using input from previous steps, the task force laid out a draft plan, including areas of focus for LGMA. Following the meeting, the CEO and staff helped refine the direction of the task force for review by the board. Staff also developed the SMART objectives.

5. Review and final board approval of plan.

The board then viewed two versions of the plan, offering further refinements before ultimately approving the plan in March 2022.

While these five steps represent key elements of strategic plan development, strategic planning is never done. Rather, the plan should continually be referenced to ensure all LGMA activities support the plan. In addition, key plan elements — values, mission, purpose, vision — should remain intact for the duration of the plan (2020-2023) while action plans should be reviewed for potential updates annually.

S T R AT E G I C P L A N N I N G TA S K F O R C E Tony Alameda Sabor Farms

Steve Church Church Brothers

Dan Sutton POVE

Matt Amaral D’Arrgio Brothers Co.

Chris Drew Ocean Mist Farms

Robert Verloop Coastline Farms

Rod Braga Braga Fresh

Scott Grabau Tanimura & Antle

Jack Vessey Vessey & Company

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LGMA S T R AT E G I C P L A N AT A G L A N C E

VISION: LGMA certified members are universally recognized as providing the safest leafy greens.

MISSION: To adopt food safety standards, verify practices and promote a culture of food safety for leafy greens.

I M P O R TA N T DEFINITIONS Vision: The destination we are working toward.

Mission: LGMA’s core business.

Purpose: End benefit of LGMA to people or society.

Values: Principles that drive decisions.

Strategic Priorities: Areas of focus to achieve the vision.

PURPOSE: To build confidence and trust in leafy greens by making them even safer.

VALUES: At LGMA we believe in: • Food Safety: We believe in creating a culture of food safety among the leafy green community and putting people’s health first in all we do.

• Collaboration: We work collaboratively with leafy green handlers, growers, industry partners, and buyers.

• Science: We draw upon sound science and subject matter expertise to execute informed decisions and evolve standards.

• Taking Action: We monitor the world around us for threats and opportunities, and act with urgency.

S T R AT E G I C P R I O R I T I E S : 1. Continuously Evolve LGMA Food Safety Standards and the Audit Process: Demonstrate leadership through improved food safety standards that are informed by sound science and subject matter expertise, and universally adopted by LGMA handlers and their growers.

2.Grow Industry Relationships and Support: Deepen relationships with industry — handlers, growers, associations and more — through improved information sharing and communication, education and outreach.

3. Engage Buyers and Government Agencies: Engage buyers, customers and government partners in the development of LGMA’s food safety standards and ongoing communication about the value of LGMA. 4.Build Public Confidence: Build public confidence in leafy greens through strategic, proactive communications, building a cadre of informed ambassadors and furthering trust-building efforts.

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S T R AT E G I C PRIORIT Y 1: S TA N D A R D S Demonstrate leadership through improved food safety standards that are informed by sound

Actions:

science and subject matter expertise, and

•

universally adopted

by LGMA handlers and their growers .

Review, refine and give clarity to the process by which LGMA food safety standards are developed. As part of this effort, outline the role of committees, Western Growers, and any third parties that provide input.

• Formalize the process by which LGMA informs and drives research with other groups — such as the Leafy Green Research Board and the Center for Produce Safety — representing the leafy green community and/or involved in food safetyrelated research. As part of this process, consider the formation of a task force.

•

Leverage existing research from credible parties and industry collaborators, including AZ LGMA, to inform CA LGMA food safety standards. At the same time, explore the ability and usefulness in LGMA directly funding research. ⊲ Review LGMA bylaws and the process by which they can be amended. ⊲ Audit the quantity and depth of research currently underway by third parties to determine if added research abilities within LGMA would provide value and be non-duplicative.

• Create a smarter audit process by collaborating with the California Department of Agriculture (CDFA) to achieve greater participation from growers, avoid redundant audits and streamline the audit process without compromising food safety or the integrity of the program and standards. As part of this process, require LGMA handlers to provide grower lists to LGMA. •

Expand food safety standards to include standards for wash water, while exploring other post-farm gate vulnerabilities with emphasis on those within the processing environment. ⊲ Conduct audit of potential food safety risks not currently covered as part of LGMA’s food safety standards and provide recommendations to the board on areas of greatest concern.

•

Continue to collaborate with AZ LGMA with an aim on standards harmonization to the best extent possible, while taking into account regional-specific needs.

•

Explore options to audit products that are grown or processed in non-California/ Arizona growing regions by LGMA handlers.

SMART Objectives: •

All growers of LGMA handlers are audited annually by FY24.

A SMART objective related to research and audit improvement will be developed by FY23, upon completion of additional steps by CA LGMA and input received from the board.

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S T R AT E G I C PRIORIT Y 2: INDUSTRY R E L AT I O N S H I P S AND SUPPORT Deepen relationships with industry — handlers, growers, associations, and

Actions:

more — through improved

•

information sharing and communication, education and outreach.

Expand communication efforts between LGMA and handlers and growers.

Communication should be ongoing and proactive — even outside of changes to the standards — and clear, effective, timely, and useful. Whenever possible, visuals should be included to aid in understanding. ⊲ Focus on engaging handlers at multiple levels, including the CEO/leadership, who should directly receive communication about any changes to LGMA standards. ⊲ Arm handlers with information that can be shared with growers. ⊲ Target growers directly and build the database of growers. ⊲ Emphasize the science behind any changes to the standards. ⊲ Educate on the proper use of LGMA member marks to ensure the integrity of the LGMA brand on products that bear its seal. ⊲ Educate about the role of LGMA in building public confidence.

•

Require mandatory continuing education training for handlers who are part of LGMA to further understanding of and compliance with the LGMA food safety standards.

Explore the use of technology as means of conducting trainings in an effective and cost-conscious manner.

•

Collaborate with industry groups — Western Growers, PMA, etc. — to share information and further industry engagement. ⊲ Support Western Growers on data-collection efforts and promote and encourage LGMA members to share food safety data, with an aim on improved food safety overall.

SMART Objectives: •

Increase the number of LGMA handlers who feel engaged and informed about the LGMA program, as determined by a baseline survey to be conducted in June 2022.

Upon completion of the handler survey, LGMA will set a specific measurable objective for the duration of the plan.

•

Develop continuous education training by FY23; 100% of LGMA handlers will participate in continuous education training by FY24.

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S T R AT E G I C PRIORIT Y 3: E N GAG E BUYERS AND G OV E R N M E NT AG E N CI E S Engage buyers, customers and government partners in the development of LGMA’s food safety standards and

Actions: •

In conjunction with the LGMA board and its members, establish a group with a dual function to: 1) Advise LGMA on their food safety priorities as a way to inform LGMA standards and 2) Serve as a conduit of information to retailers and foodservice distributors and operators about LGMA’s food safety standards and their value.

•

Engage customers and groups that represent them, such as Leafy Green Safety Coalition, with an ongoing and consistent communication effort that demonstrates the value of LGMA food safety standards. Communication efforts should include bringing customers to LGMA member operations and connecting them to LGMA handlers.

•

Deepen relationships with CDFA, United States Food and Drug Administration (FDA), Centers for Disease Control and Prevention (CDC), and other agencies through ongoing engagement to position LGMA as the “go-to” resource for food safety information related to leafy greens.

•

Engage with congressional influencers via ongoing direct outreach to legislators.

This may include virtual desk-side meetings and D.C. trips where the LGMA board and membership can serve as faces and voices of the industry.

ongoing communication about the value of LGMA.

SMART Objectives: •

Engage six influential buyers/customers in the LGMA customer group to help inform the development of the standards by FY23.

•

Demonstrate positive impact of proposed or enacted regulations annually.*

*LGMA is not setting a specific measurable objective here because the ability to impact this objective is largely determined by areas outside of LGMA’s control.

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S T R AT E G I C PRIORIT Y 4: S T R AT E G I C P U B L I C E N GAG E M E NT

Build public confidence in leafy greens through strategic, proactive communications, building a cadre of informed

Actions: •

Review and refine LGMA’s messaging with an aim of ensuring it is compelling, relevant and trustworthy in the eyes of stakeholders; consider the role of research to inform this action.

•

Support trust-building efforts through proactive engagement, including:

ambassadors and furthering trust-building efforts.

⊲ Building a cadre of industry food safety ambassadors through industry groups (See Strategic Priority 2) and LGMA’s network of supporters. ⊲ Identifying third-party ambassadors (influence the influencers) in related industries who can amplify LGMA’s messages and the value of the standards. ⊲ Implementing a strategic media relations effort to establish relationships with toptier media with a history of covering food safety news in order to establish LGMA and its leadership as a “go-to” source of information.

•

Strengthen LGMA’s crisis response plan to ensure the organization is ready if a crisis were to occur. Include draft messaging, holding statements and a library of resources that can be deployed, if needed.

SMART Objectives: •

Establish relationships with five top-tier, mainstream (non-trade) media contacts in FY23.

•

Maintain a group of 12 third-party ambassadors annually who can help amplify LGMA’s messages.

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2022/2023 FOOD SAFETY STANDARDS/ METRICS

FOOD SAFETY STANDARDS

Thank you for being a California LGMA Member.

Enclosed are materials to help you navigate the 2022/2023 fiscal year, including information about: FOOD SAFETY RESOURCES FOR LEAFY SHIPPERS, • StaffGREEN & Leadership GROWERS, HARVESTERS AND SERVICE PROVIDERS. • The New Strategic Plan LGMA connect is your destination for food safety updates, training and more.

• Food Safety Standards www.lgmaconnect.com • Sales & Marketing Support • Assessment Rate

2022/2023 MARKETING & SALES SUPPORT

G ENE RA L M ESSAGI NG

BRINGS FARMERS TOGETHER

TO MAKE LETTUCE & LEAFY GREENS SAFER

THE LGMA: Verifies food safety practices Enforces through government audits Requires a commitment to continuous improvement

LGMA.CA.GOV

LG MA MEMBER LOGO AND S ERVICE M A R K

U SAGE G UI DEL I NES

LGMA members are committed to safe leafy greens. You can provide a visual reminder of this commitment by using the LGMA Member Logo and the LGMA Service Mark in your business operations. Many produce buyers require LGMA certification and by using these marks you can help to reinforce your status. This guide provides specific information on where, when and how you can use the LGMA Member Logo and the LGMA Service Mark.

G ENE RA L G UI D EL I N E S

MEMBER LOGO

SERVICE MARK

• Can be used by any certified LGMA Member

• Is to be used by certified LGMA Members – it is to certify “that the goods have been grown/produced using the best agricultural practices and food safety standards.”

• The LGMA Member Logo is promotional and demonstrates a company’s commitment to safe leafy greens – it is not a certification mark • Use of the LGMA Member Logo is optional • Use of the LGMA Member Logo is a way of assuring customers that your company participates in the LGMA food safety program

Decertification from the LGMA (or opting out of membership) will result in loss of use of the LGMA Member Logo and Service Mark which can lead to a decline in business, credibility and access to key customers.

• Cannot be used by decertified or pending members • The LGMA Service Mark is a regulatory and demonstrates audit oversight by the California Department of Food and Agriculture • Use of the service mark is mandatory on bills of lading • Use of the service mark is a way of assuring customers that products have been grown according to the LGMA food safety practices and verified by mandatory government audits

HOW TO USE

• The logo/mark shall be reproduced only in authorized colors as provided • The logo/mark may be adjusted in size provided the proportions are not changed • The logo/mark shall not be altered in any way other than size as specified above

• Participant’s name and/or trademark may not be inserted within or overlap the boundaries of the logo/mark • Participant shall not use the logo/mark as its own mark, or as the exclusive representation of Participant’s business entity.

W HERE TO USE

MEMBER LOGO

Potential Uses • Product Cartons • Product Packaging • Traceability Labels • Websites • Brochures • Tradeshow Booths • Presentations

SERVICE MARK

Approved Uses • Bills of Lading (Required) • Additional documents including: • Invoices • Manifests • Letterhead Not Allowed • Product packaging* *The Service Mark shall not be used as a certification mark to certify product as meeting the food safety practices.

AD D IT I O N A L I N F O R MAT I O N

• The Service Mark shall only be used by Members of the LGMA in accordance with the LGMA policy for use of the mark (as outlined in this document).

• Members of the LGMA agree to produce and handle product according to the Good Agricultural Practices (GAPs) promulgated by the LGMA. • The Service Mark shall not be used as a certification mark on packaging to certify product as meeting the LGMA food safety practices. Use of the Service Mark on packaging or product is not allowed.

• The Service Mark shall be used without reference to a private brand or label.

• LGMA Members are prohibited from including any accompanying verbiage with the Member logo on packaging that may directly or implicitly certify that the product contained therein is safe or free from any pathogens.

• Participant shall provide reasonable assurances it has a system in place to meet the above requirements.

Participant shall maintain records sufficient to audit this system for the life of the Compliance Agreement and shall make those records available upon request to the Department.

CERTIFICATION SEAL

MECH A N I C A L SP E C I F I C AT I O N S

There is only one version of the CDFA Certified seal. It should always appear in black and white and with the SM mark.

To add emphasis to the seal and to make it stand out against a complex background, a white stroke may be added to the outside and the SM converted to white.

Do Not:

X

Change the color of the seal

X

Show the logo without the SM mark

X

Remove the stroke around the seal

X

Remove portions of the seal

MEMBER LOGO

MECH A N I C A L SP E C I F I C AT I O N S

Primary Logo

Use this version at all times when color allowances and space will accomodate it.

Logo Spot Colors

PMS 357

PMS 368

Secondary Logo - Two Color Leaf with Tagline Use this version when color restrictions apply.

Single Color One color versions are to be used when legibility or printing restrictions requires.

Do Not:

Edit type colors

Display the logo on a background without sufficient contrast

Change the logo color

Change the size relationship between the leaf and text

Logo Without Tagline Use the logo without a tagline when the tagline will be too small to be legible.

2022/2023 ASSESSMENTS & CDFA NOTICES

April 8, 2022

Notice of 2022-2023 Assessment Rate for the California Leafy Green Products Handler Marketing Agreement (LGMA) Set at $0.011 per 24-count carton or its equivalent TO THE CALIFORNIA LGMA SIGNATORY HANDLER ADDRESSED: Upon the recommendation of the California Leafy Green Handler Advisory Board (Board), the California Department of Food and Agriculture (Department) has established an assessment rate to be levied on LGMA signatory handlers during the 2022-2023 marketing season, which is period of April 1, 2022 through March 31, 2023. The assessment rate for the 2022-2023 marketing season has been set at $0.011 per 24-count carton, or its equivalent, on all leafy green products put into commerce by a signatory handler. The assessment rate for the 20222023 marketing season is the same as last season’s rate.

The party responsible for paying assessments on leafy green products is the signatory handler whose name appears on the legal panel on packs as they move into commerce. If the product is not packed under a signatory trade name, the signatory handler with the legal responsibility for the product as it moves into commerce is responsible for paying the assessment. For additional information about the party responsible for paying assessments under various business scenarios, please refer to the attached LGMA Administrative Rules and Regulations.

Assessment forms and additional instructions for reporting and remitting assessments will be provided to all signatory handlers by the Board office. These instructions will include a list of assessment equivalencies for various pack styles and bulk leafy green products.

Funds generated from this assessment are used to conduct food safety audits to assure that signatory handlers are marketing leafy green products that have been produced and handled in accordance with the LGMA’s food safety practices. Additionally, the LGMA conducts technical food safety education activities for leafy green producers and handlers and educates the public about its food safety efforts.

If you have questions regarding this assessment or the activities of the California Leafy Green Products Handler Marketing Agreement, please contact Tim York, CEO of the LGMA, at 831320-3137, or Dennis Manderfield with the Department’s Marketing Branch at 916-900-5018.

Sincerely,

Joe Monson, Branch Chief Marketing Branch Attachment CDFA Marketing Branch ● 1220 N Street ● Sacramento, California 95814-5603 Telephone: 916.900.5018 ● Fax: 916.900.5343 ● www.cdfa.ca.gov/mkt/mkt

2022 0328 | 2022 0407 | 1506

State of California Gavin Newsom, Governor

1

BEFORE THE STATE OF CALIFORNIA

2

DEPARTMENT OF FOOD AND AGRICULTURE

3 4 5 6

In the matter of establishing a rate of assessment for the California Leafy Green Products Handler Marketing Agreement as recommended by the California Leafy Green Handler Advisory Board to the California Department of Food and Agriculture

) ) ) ) ) ) )

Order of the Department of Food and Agriculture Establishing and Making Effective a Rate of Assessment for the California Leafy Green Products Handler Marketing Agreement for the 2022-2023 Marketing Season

7 8

WHEREAS, the Department of Food and Agriculture of the State of California (Department),

9

acting pursuant to and by virtue of the authority vested in it by the provisions of the California

10

Marketing Act (Act), being Chapter 1 of Part 2, Division 21 of the Food and Agricultural Code,

11

issued the "California Leafy Green Products Handler Marketing Agreement" (Agreement), which

12

became effective February 7, 2007, and which incorporates amendments effective through May 4,

13

2015, and

14 15 16 17 18 19 20 21 22 23 24 25

WHEREAS, during its meeting on March 24, 2022, the California Leafy Green Handler Advisory Board (Board), the administrative agency established to assist the Department in the administration of the Agreement, recommended to the Department the establishment of an assessment rate to be levied on signatory handlers to the Agreement of $0.011 per 24-count carton, or its equivalent, of leafy green products put into commerce by a signatory handler during the 20222023 marketing season, being the period April 1, 2022 through March 31, 2023, and WHEREAS, the Department hereby finds that the recommended rate of assessment is proper and equitable and reasonably calculated to provide sufficient funds to defray the necessary expenses of carrying out the provisions of the Agreement and effectuate the declared purposes of the Act; NOW, THEREFORE, the Department of Food and Agriculture of the State of California,

26

acting pursuant to and by virtue of the authority vested in it by said Act and Agreement, does

27

hereby approve and establish a rate of assessment for the California Leafy Green Products

Leafy Green Marketing Agreement

Department Order Establishing Assessment Rates For the 2022-2023 Marketing Season

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Handler Marketing Agreement of $0.011 per 24-count carton, or its equivalent, of leafy green

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products put into commerce by a signatory handler during the 2022-2023 marketing season, levied

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on signatory handlers to the Agreement.

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The Department does hereby further order that assessment payments shall be made monthly by each signatory handler and shall be due and payable to the Board at such times and in such manner as may be prescribed by the Board or the Department and in accordance with the Administrative Rules and Regulations under the California Leafy Green Products Handler Marketing Agreement.

DATED:

April 7, 2022

2022 0328 | 2022 0407 | 1505

JOE MONSON, Branch Chief Marketing Branch Department of Food and Agriculture

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Leafy Green Marketing Agreement

Department Order Establishing Assessment Rates For the 2022-2023 Marketing Season

Administrative Rules and Regulations Under the California Leafy Green Products Handler Marketing Agreement To Clarify the Responsible Party for Compliance With the LGMA Best Practices and the LGMA Assessment Payment And to Set Forth Provisions for Assuring Equitable and Proper Payment of the LGMA Assessment Approved by the LGMA Board on November 8, 2018

I. General Information These administrative rules and regulations are issued pursuant to the California Leafy Green Products Handler Marketing Agreement (LGMA or Agreement), originally made effective February 7, 2007, with amendments effective through March 4, 2015. Said Agreement was issued under the provisions of the California Marketing Act of 1937 (Act) being Chapter 1, of Part 2, Division 21 of the Food and Agricultural Code.

II. Definitions and Interpretation of Terms A. Definitions and interpretation of terms in these administrative rules and regulations are the same as set forth in Article II of said Agreement.

B. The Agreement does not contain definitions for “responsible party” and “equivalent assessment rates”. For the purpose of these rules and regulations, these terms shall be defined as follows: “Responsible Party” means the signatory handler that bears the legal obligation to assure that the leafy green products moving into commerce have been grown and harvested according to the LGMA Good Agricultural Practices and the legal obligation to pay the LGMA assessment that is applicable to such leafy green products.

“Equivalent Assessment Rates” means the rates of assessment that are calculated for the various leafy green products and pack styles for the purpose of assuring that the assessments paid by signatory handlers are approximately equivalent on per acre basis.

III. Purpose of These Administrative Rules and Regulations A. These administrative rules and regulations are established by the California Department of Food and Agriculture (CDFA) upon recommendation of the California Leafy Green Handler Advisory Board (Board) to facilitate the effective administration, operation and enforcement of the Agreement. It is the responsibility of the Board to assist CDFA in the proper Page 1 of 5

administration of the Agreement. This includes the collection of information necessary for carrying out this responsibility and reporting to CDFA any failures to comply with or any violations of the provisions of said Agreement and these administrative rule and regulations.

B. These administrative rules and regulations are established for the following purposes: 1. To prescribe methods and procedures for compliance with and to explain or clarify the provisions of said Agreement; 2. To clarify who is the responsible party for ensuring compliance with the LGMA Best Practices and for payment of the LGMA assessment; 3. To set forth provisions for assuring the equitable and proper payment of the LGMA assessment.

IV. Responsible Party A. In general, the signatory handler whose name appears on the legal panel on packs as they move into commerce, or if the produce is not packed under a signatory trade name, the signatory with the legal responsibility for the product as it moves into commerce, is responsible for assuring that the product has been grown and harvested according to the accepted LGMA Good Agricultural Practices and also responsible for payment of the LGMA assessment that is applicable to such product.

B. Because the leafy greens industry is complex with many diverse relationships, the following scenarios are provided to further clarify who is the responsible party in various circumstances.

Scenario 1: Signatory Handler A contracts with Grower B for a block or a field of product. Product is harvested and packed with Signatory Handler A’s label.

Signatory Handler A is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments.

Scenario 2: Signatory Handler A purchases product from Signatory Handler B on the spot market. Product is sold to Signatory Handler A in Signatory Handler B’s packages/boxes and with Signatory Handler B’s legal label.

Signatory Handler B is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments.

Scenario 3: Signatory Handler A purchases bulk product from Signatory Handler B for further processing.

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Signatory Handler A is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments.

Scenario 4: Signatory Handler A sells product to an out-of-state processor.

Signatory Handler A is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments. This is true regardless of whether the product is sold in bulk or in cartons.

Since the out-of-state processor is a non-signatory, the last signatory handler to handle the product assumes the role of the responsible signatory party for the product.

Scenario 5: Signatory Handler A packs in Customer B’s box (foodservice distributor or retailer).

Signatory Handler A is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments. Since retail and foodservice buyers cannot be signatories to the marketing agreement, the last signatory handler to handle the product (Signatory Handler A) assumes the role of the responsible signatory party even though the product is being packed in Customer B’s box.

Scenario 6: Handler A is a signatory in both California and Arizona. During the winter months, Handler A handles product from both States.

Handler A is the responsible party for both the Arizona LGMA and the California LGMA. Handler A must ensure that the respective LGMA’s Good Agricultural Practices are used, must report volume shipped to the respective LGMA and pay the appropriate assessments to the respective LGMA according to where the product was grown, not where it was processed or shipped to market.

Scenario 7: Signatory Grower/Handler A sells bulk product to Signatory Handler B who subsequently sells the bulk product to Non-Signatory Handler C. Signatory Handler B is the responsible party and must ensure that the Good Agricultural Practices are used, must report volume shipped to the LGMA and pay the appropriate assessments. Since Handler C is a non-signatory, the last signatory handler to handle the bulk product assumes the role of the responsible signatory party for the product.

Scenario 8: Signatory Handler A purchases and markets, as a broker, product from Non-signatory handler B in handler B’s box.

Signatory Handler A is not in compliance with the LGMA if he or she markets product that has not been certified by the LGMA. Brokering product that has not been grown in compliance with the LGMA’s requirements is a violation of a signatory handler’s obligations as a member of the marketing agreement.

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Scenario 9: Grower A (non-signatory) sells bulk product to out of state processor for further processing.

In this scenario, the product is not subject to the LGMA since no Signatory Handler is involved. There is no responsible party.

V. Assessment Rates A. Each fiscal year, the Board will recommend a standard carton assessment rate for the approval of CDFA. The assessment is applicable to all received tonnage of qualifying leafy green products.

B. The maximum assessment rate allowed by the Agreement is $0.05 per standard 24count carton or carton equivalent.

C. The standard 24-count carton is the traditional standard for iceberg lettuce in the industry, which is why this unit was chosen for the basis of the assessment. However, because the Agreement covers many different leafy green products, shipped in bulk form for further processing or shipped in a wide variety of pack styles, weights and box sizes, there must be a set of equivalent assessment rates established in order to equitably assess all of the products handled by signatory members. The goal in establishing these equivalent assessment rates is that all such rates will generate approximately the same level of assessment per acre across all products and pack styles. The Board, on an as needed basis, conducts analyses in order to develop and fine tune the formulas needed for calculating the equivalent assessment rates.

The equivalent assessment rates are calculated each year after the standard 24-count carton assessment rate is recommended by the Board and approved by the Secretary.

D. Notification of the annually established assessment rates in effect for any marketing season will be given to signatory handlers no later than April 1.

E. If a crop failure or unanticipated expenditures create an assessment - related budget crisis, the Board may request an assessment rate adjustment from CDFA. VI. Assessment Collection Procedures A. The Board will mail assessment report forms to all signatory members on a monthly basis.

B. Signatory handlers are required to complete the monthly assessment report form and submit their assessment payment for the prior month on a monthly basis. Signatory handlers shall complete the assessment report form by reporting all regulated leafy green products received for the prior month by type and quantity and then calculating their assessment obligation for that prior month by multiplying the quantity of each leafy green product type by the applicable equivalent assessment rate.

VII. Assessment Due Date and Penalties A. The assessments are due in the Board office by the end of the month after product is handled. If payment is not received by the 15th day of the second month after product is handled, a charge of 10% of the unpaid assessment will be added. In addition, the handler shall pay a penalty of 5 percent for each 30 days the assessment is unpaid, prorated over the Page 4 of 5

days unpaid, unless CDFA determines that such failure to pay is due to reasonable cause beyond the handler’s control.

B. Unpaid handler assessments will be referred to CDFA for collection.

VIII. Handler Audits A. Signatory handlers will be audited periodically to verify accurate and complete reporting of commodity quantities received and assessments paid. Such audits will typically be conducted by a CDFA auditor at the request of the LGMA. B. It is the intent of the LGMA to audit signatory handlers at least once every three years because Section 59231 of the California Marketing Act sets a three-year statute of limitations on filing any action or penalty against a handler for violation of reporting requirements in the Act. Therefore, when conducting a handler audit, the auditor will typically examine records from the three prior fiscal years.

C. The auditor will begin the audit with an interview to learn the details of each handler’s accounting system. The auditor will then review the handler’s receiving records and grower accounts. If the auditor finds errors, he or she will continue reviewing all applicable records until the accounts are reconciled.

D. The auditor will typically provide the handler with preliminary audit findings before leaving the premises. Shortly thereafter, the auditor will send a final audit results letter to the handler and the Board to indicate whether the handler reported correctly. This letter will state whether a refund is forthcoming or whether the handler owes additional assessments, penalties, interest, and/or collection costs.

IX. Required Records For auditing purposes, signatory handlers must maintain records of leafy green products received for a minimum of three years following the end of the previous fiscal year (March 31).

X. Assessment Deposits In order to provide funds to defray necessary expenses incurred by the Board prior to the receipt of sufficient assessment income, the Board may recommend, and the Secretary may require each handler to make advance assessment deposits. Advance deposits for each handler are based upon the quantity of leafy greens received by each handler during the preceding marketing year.

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