Well, it is now official.  The new Cal/OSHA regulation specifying lighting requirements for operation of agricultural equipment at night goes into effect on July 1st.  These new requirements aren’t as intrusive as originally proposed thanks to the involvement of the Association, but they are still imposing.  The new requirements include the following highlights, when working between sunset and sunrise:

• All tractors, trucks and harvest equipment must have a light at the front of the equipment and one rear light to illuminate equipment
• Lighting must be provided at the following illumination levels:

o Meeting and meal/rest areas – 3 foot-candles
o Around agricultural operations, pathways
leading to and around bathrooms and drinking
water stations, inside bathrooms and storage
areas – 5 foot-candles
o Intermittently exposed points of operation or
moving parts of machinery, or using tools that
can potentially cause cuts, lacerations or
punctures – 10 foot-candles
o Performing maintenance work on equipment –
20 foot-candles
o Note: the illumination levels can be provided by
the use of one or more light sources including
hands free portable lighting (e.g. headlamp),
equipment mounted lighting, or other sources

• At the beginning of every shift, a safety meeting must be held to inform employees of location of restrooms, drinking water, break areas, bodies of water and high traffic areas
• Employers must provide, and require workers to wear, high visibility garments

For questions or should you need additional information, please contact our office.

• Zenith COVID-19 Resources
• Routes of transmission
• Employee health monitoring
• Employee and workplace hygiene
• Social (Physical) distancing
• Personal Protective Equipment (PPE)
• Visitors and non-employee interaction

The U.S. Department of Agriculture (USDA) seeks nominations of domestic cotton producers from Arkansas, California, Louisiana, Mississippi, North Carolina and Texas, and importers of cotton and cotton-containing products for positions on the Cotton Board. The producers and importers will fill positions for 13 members and 13 alternates. USDA will appoint members and alternates to serve three-year terms beginning Jan. 1, 2021, to Dec. 31, 2023.   The mission of Research and Promotion (R&P) programs is to expand, maintain and develop markets for individual commodities in the United States and abroad. This mission is an important contributor to the U.S. Department of Agriculture’s (USDA) overall vision related to “providing economic opportunity through innovation and helping rural America thrive and promote agriculture production that better nourishes Americans while helping to feed others throughout the world.” Through the guidance of the R&P board members, appointed by Secretary Perdue, these programs execute a variety of activities benefitting agriculture.  Consequently, the input and decision making provided by the board members is the foundation for success of these R&P programs.

Certified producer organizations (CPOs) and certified importer organizations (CIOs) will hold caucuses to nominate two qualified persons for each open position in their respective industry segment.  Producer caucuses are scheduled as follows and all times are local times:

• Arkansas: Wednesday, July 8 at noon
• California: Wednesday, July 15 at 10 a.m.
• Louisiana: Thursday, July 16 at 10 a.m.
• Mississippi: Friday, July 10 at noon
• North Carolina: Monday, July 20 at 3:20 p.m.
• Texas: Wednesday, July 22 at 10 a.m.

For nominating and caucus information, including organizations seeking certification and a list of CPOs and CIOs, contact Cotton Research and Promotion at (540) 361-2726 or CottonRP@usda.gov.

More information is available on the Agricultural Marketing Service Cotton Board webpage or on the board’s website at www.cottonboard.org.

U.S. Secretary of Agriculture Sonny Perdue today announced details of the Coronavirus Food Assistance Program (CFAP), which will provide up to $16 billion in direct payments to deliver relief to America’s farmers and ranchers impacted by the coronavirus pandemic. In addition to this direct support to farmers and ranchers, USDA’s Farmers to Families Food Box program is partnering with regional and local distributors, whose workforces have been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat and deliver boxes to Americans in need.  Beginning May 26, the U.S. Department of Agriculture (USDA), through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses.  Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief, and Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020, and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corporation Charter Act to compensate producers for $6.5 billion in losses due to on-going market disruptions.   Non-specialty crops eligible for CFAP payments include malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Wool is also eligible. Producers will be paid based on inventory subject to price risk held as of January 15, 2020. A payment will be made based 50 percent of a producer’s 2019 total production or the 2019 inventory as of January 15, 2020, whichever is smaller, multiplied by the commodity’s applicable payment rates.

Specialty Crops
For eligible specialty crops, the total payment will be based on the volume of production sold between January 15 and April 15, 2020; the volume of production shipped, but unpaid; and the number of acres for which harvested production did not leave the farm or mature product destroyed or not harvested during that same time period, and which have not and will not be sold. Specialty crops include, but are not limited to, almonds, beans, broccoli, sweet corn, lemons, iceberg lettuce, spinach, squash, strawberries and tomatoes. A full list of eligible crops can be found on farmers.gov/cfap. Additional crops may be deemed eligible at a later date.

Eligibility
There is a payment limitation of $250,000 per person or entity for all commodities combined. Applicants who are corporations, limited liability companies or limited partnerships may qualify for additional payment limits where members actively provide personal labor or personal management for the farming operation. Producers will also have to certify they meet the Adjusted Gross Income limitation of $900,000 unless at least 75 percent or more of their income is derived from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions.

Applying for Assistance
Producers can apply for assistance beginning on May 26, 2020. Additional information and application forms can be found at farmers.gov/cfap. Producers of all eligible commodities will apply through their local FSA office. Documentation to support the producer’s application and certification may be requested. FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed. Applications will be accepted through August 28, 2020.

Payment Structure
To ensure the availability of funding throughout the application period, producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment, not to exceed the payment limit, will be paid at a later date as funds remain available.

USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service, or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

This past week, the Federal Motor Carrier Safety Administration (FMSCA) revised the hours of service (HOS) regulations to provide greater flexibility for drivers subject to those rules. In the final rule, the FMSCA made four significant changes:

• The on-duty limits for short-haul operations will increase from 12 to 14 hours and from 100 air-miles to 150.
• The adverse driving provision will extend the driving window two hours if the driver encounters adverse driving conditions.
• Now requires a 30-minute break after 8 hours of driving time (instead of on-duty time) and allows an on-duty/not driving period to qualify as the required break
• The 30-minute break provision will be modified to require the break after eight hours of consecutive driving time (instead of on-duty time) and allows an on-duty/not driving period to qualify as the required break.

“These new common sense rules will give truckers more options for planning their days,” U.S. Transportation Secretary Elaine Chao said. “They will help drivers reach their destination safely without feeling like they have to race against the clock to comply with federal mandates. They also will help truckers get the rest they need when they need it. When safety rules make sense, drivers are better able to comply and that benefits everyone.”   The final rule is expected to be published in the Federal Register this week, the agency said. The rule will go into effect 120 days after it is published to allow ELD manufacturers to implement programming changes. Depending on when the rule is published, the changes could go into effect as soon as Sept. 15.

The accounting firm of Moss Adams is hosting a webcast on Thursday, May 21st, at 2:00 pm on the Paycheck Protection Program (PPP).   This webcast will provide insight into PPP loans for organizations that both DID and DID NOT receive funds. We’ll provide an overview of cash relief options available as well as alternative financing options you may want to explore. Additionally, we’ll touch on special considerations for employee benefits related to sick leave and family leave. More specifically, we’ll cover the following:

• Determining and maximizing PPP loan forgiveness, including what expenditures “count”, applicable period, and employee considerations
• Minimizing and deferring expenses, whether you received a PPP loan or not, including major financing options post-CARES Act
• Tax credits
• Families First Sick Leave and Family Medical Leave Act issues
• Raising additional funds during the pandemic
• Other business considerations for cash relief
• Come prepared with questions as there will be plenty of time for Q&A.

Presenters

Eric Krienert, Partner – Moss Adams
Eric is director of Agribusiness Programs at Moss Adams. He has worked in public accounting since 1997. He is experienced in tax planning and consulting for large partnerships and corporations in the food and agriculture industries, specializing in cooperatives. He provides services related to patronage philosophy and formulating patronage allocation programs based on book, tax, and hybrid programs; equity planning; mergers and acquisitions, joint ventures, and other combinations; nonqualified equities; and domestic manufacturing deduction and taxation.

K-Deep Dhaliwal, Partner – Moss Adams
K-Deep has provided auditing and consulting services to food processing and agriculture companies since 2005 and is the regional industry group leader for the firm’s agribusiness practice. His focus includes agricultural marketing and supply cooperatives; food processors and marketers; manufacturing and distribution; citrus growers; row crops and permanent crops; vineyard operations; fresh fruit packing and marketing; and wine production and distribution.  He is the past president of theNational Society of Accountants for Cooperatives (NSAC) Far Western Chapter.

Ashley Jacobsen, Senior Manager – Moss Adams
Ashley has practiced public accounting since 2003. She leads audits for privately held, middle market companies in the manufacturing, food processing, and agribusiness industries. She works with her clients to address their key business issues and provides best practices for financial reporting, corporate governance, and industry trends.

To register for this important webinar, please use the following link:

Registration link: https://mossadamsllp.webex.com/mossadamsllp/j.php?RGID=r56b60cd2bea6f430dc309dd1d03270cf

Are you need of general protection face masks?  How about masks made from Supima Cotton?  MRO Supply out of Los Angeles is selling masks made from Supima cotton for $5 each plus tax and shipping.  They are manufactured by a company out of Los Angeles, so it is California Grown and American Made! Here is the link to the company’s website for the mask:
https://www.mrosupply.com/safety/personal-protective-equipment/respiratory-protection/5909596_supima-mask-white_mro-supply/

Please note:  These are NOT N-95 masks.

• Antiquated, lengthy language replaced “minorities” with a more modern rendering: “an individual who is a member of an underrepresented protected class covered by [FEHA]”
• Amends age discrimination to apply to individuals age 40 and older

• Circumstances clarified regarding permitted pre-employment questions relating to the physical fitness, medical condition, physical condition, or medical history of applicants
• Clarification that an application request for information related to schedule and availability for work may not be used to ascertain an applicant’s religious creed, disability, or medical condition
  • Ex: “Other than time off for reasons related to your religion, a disability, or a medical condition, are you available to work the proposed schedule?”
• Renders online application technology that limits or screens out applicants based upon age a potential FEHA violation
  • Must include a mechanism for the applicant to request an accommodation
  • Clarifies that the prohibition against applications separated or coded includes both manual or electronic separating and coding
  • Entry of age in order to access or complete an online application or the use of drop-down menus that contain age-based cut-off dates now prohibited

• Business necessity affirmative defense properly rendered (i.e. “job-related and consistent with business necessity”), including in the context of layoffs or salary reduction efforts
• A plaintiff may now show that “an alternative practice could accomplish the business purpose equally well with a lesser discriminatory impact.”

• Examples of unlawful requirements regarding age discrimination in recruitment: maximum experience limitation, requirement that candidates be ‘digital natives’[1], requirement that candidates maintain a college-affiliated email address
• Eliminates the need to infer intent when analyzing the lawfulness of advertisements
  • Examples of unlawful language: “…young, college student, recent college graduate, boy, girl, or other terms that imply a preference for employees under the age of 40.”
  • Examples of prohibited inquiries: “requests for age, date of birth, or graduation dates, excepting where age is bona fide occupational qualification.”

This week, Cal/OSHA has released new guidance and checklists for Agriculture and Livestock, and for Food Packing and Processing.  This new guidance is intended to support a safe, clean environment for workers in these areas.  The update now mandates a “written worksite specific plan” for these operations to protect workers.  Included in the guidance is information on what is required in the written plan, training topics, individual control measures, cleaning and disinfecting protocols, and physical distancing guidelines.  To assist our members in this area, staff is currently developing a template plan, inspection checklist, training materials and developing a supervisorial training webinar the Association will be conducting in the very near future.

Here are the new Guidance Documents and General Checklists:

• COVID-19 Industry Guidance: Agriculture and Livestock
• Cal/OSHA COVID-19 General Checklist for Agriculture and Livestock Employers
• COVID-19 Industry Guidance: Food Packing and Processing
• Cal/OSHA COVID-19 General Checklist for Meat, Dairy, or Produce Packing or Processing

Stay tuned for more information!

1.  The Executive Order is retroactive to March 19 and extends for 60 days from today’s announcement.
2.  Employees working outside the home that test positive for COVID-19 or are diagnosed positive by a physician or surgeon licensed by the California Medical Board within the time period of the Executive Order are presumed to have contracted the disease at the workplace. If it is a diagnosis, the diagnosis must be confirmed by a positive test within 30 days.
3.  The presumption applies to all employees directed to work outside the home by their employer. It is not limited to essential employees.
4.  The presumption is rebuttable by the employer, however, the time for the employer to deny a claim is reduced from the current 90 days to 30 days.
5.  The rebuttable presumption is in effect for 60 days from May 6, 2020, but coverage continues after the 60 day expiration date.
6.  Temporary disability payments begin only after the employee uses all other state or federal sick leave benefits.
7.  Re-testing is required every 15 days during first 45 days of temporary disability payments.
8.  The Department of Industrial Relations will not require or accept a “no beneficiary” death benefit.