Walnut growers to vote on assessment cap increase

A referendum of the California Walnut Commission is being held this month to give growers an opportunity to vote on raising the assessment cap, not the assessment, from $0.01 per inshell pound to $0.0175 cents per inshell pound. The assessment cap can only be changed by a vote of the growers, and each year the assessment itself is decided by commission board members. The California Department of Food and Agriculture mailed the ballots on March 2 and growers will have 30 days to send in their vote.

When the commission was established in 1987, the assessment cap was set at $0.01 per inshell pound. In its 25 years of existence, the CWC has been below the cap in 12 of those years, including the current year.

The walnut commission said it faces some serious challenges to its programs. Marketing costs are on the rise in key markets around the world. Exchange rate fluctuations can significantly hinder the ability to implement market development programs.

Also on the rise is the cost of conducting health research. Health research has proved to be a valuable program, the commission said. Over the past 20 years the CWC has established a health research program that has generated 75 published papers in leading peer reviewed journals. Research has focused on key public health issues including cardiovascular disease, cancer, diabetes and cognitive function, among others.

This database of health research led to walnuts achieving a qualified health claim from the United States Food and Drug Administration. Publishing papers has become very competitive and research needed for the USDA Dietary Guidelines comes at a higher price, the commission said. Lastly, the commission said it is continually working to reduce trade barriers in export markets, which now account for over 60 percent of walnut shipments, thereby increasing the scope and importance of trade relations.

Budget discussions in Washington, D.C., raise fears about reductions or elimination of federal funding that contributes significantly to export market development, the commission said. It currently receives $4.5 million from the Market Access Program and, coupled with other programs, a total of approximately $5 million annually could be at risk.

In February 2011, the commission board voted unanimously to hold a grower referendum to increase the assessment cap from the current $0.01 to $0.0175 per inshell pound. The decision is up to the growers.

Growers should contact Kathy Diaz of CDFA at 916-900-5018 with questions about the referendum. For questions regarding the California Walnut Commission and its activities, please contact the CWC offices at 916-932-7070.

The California Walnut Commission is funded by mandatory assessments of growers, CWC represents over 4,600 growers and 81 handlers of California walnuts in export market development activities and conducts health research.