To effectively serve all
Florida citrus growers by
representing them on issues
affecting their business.
FloridaCitrusMutual
2003-2004Annual
Report
Building Blocks for TomorrowANDREW W. LAVIGNE, FCM Executive Vice President/CEO
This is the time we review the year’s highlights and recount the year’s accomplishments.It is tradition to celebrate the past. Yet, we must also look to the future because today isnot just to see what has been done. It is also the time to foresee what must be done.
While Florida Citrus Mutual’s (FCM) mission is clear in purpose, many view ourindustry in varying shades of gray. Their perception of us is not yet as clear asour vision of ourselves. And, in this world, it is perception that rules.
Perception is indeed reality. We must be clear about who we are,what we’re building, and how we’re perceived. So, what mustFCM do to realign perception with our reality? In the eyes of others,what must we do to shape the marketplace to motivate othersto purchase our products? What must we do to earn the right to beheard in the public policy arena? And, more importantly, what must wedo to position FCM so its public policy opinions are sought early and theassociation’s influence is always felt? The key to building success for tomorrowis starting to do the work today.
In 2003, FCM put in place the building blocks for the Citrus Tariff Preservation Plan by appointing the CitrusTariff Oversight Committee (CTOC). This industry-wide, coordinated effort has proven successful to date, butmore construction must occur before we can deliver a completed project. Rarely has the industry seen an effortof this magnitude and with so much industry cooperation. It is indeed a testament to the fact that together wecan build and overcome anything.
FCM has and continues to put in place the building blocks for a political grassroots network. In 2003, the FloridaCitrus Industry Grassroots Network (FCIGN) was successful in convincing the Florida Cabinet to keep the orangeon the standard automotive license plate, as a tribute to the state’s most recognizable agricultural commodity.In addition to continually building our grassroots network, we have now shifted our focus to building our state andfederal political action committees (PACs). Now, more than ever, we must encourage legislators to listen and focuson citrus issues. One of the best ways to do that is through political contributions. Therefore, I commend thosewho have and continue to support our efforts to build our PACs, and I encourage others to do so as well.
FCM is putting in place the building blocks for a stronger defense against the introduction of damaging new pestsand diseases from abroad. Recognizing the threat posed by foreign pests and diseases, FCM continually works withthe Florida Department of Agriculture and Consumer Services’ Division of Plant Industry and U.S. Department ofAgriculture in order to prevent invasive pest and disease outbreaks. We also work to educate growers onidentifying invasives. In 2003, FCM received a federal grant in order to conduct invasive pest and diseaseeducational training for growers. We must proactively safeguard Florida’s citrus industry before they have had
time to become established.
FCM is putting in place the building blocks for several other citrus grower issues, such as researchcoordination, labor, mechanical harvesting, water management, etc. These ongoing concerns
represent a significant impact on growers’ ability to competitively grow citrus and are crucialissues for FCM.
FCM is putting in place the building blocks for our industry to shoulder an increasing shareof its own destiny. In the strategic areas of government advocacy, communication, research,market information, economics and education, FCM has indeed begun the journey to makethe investments necessary to reshape the image others see of us and to strengthen the rolewe see for this industry. FCM is building for this industry’s future.
Florida Citrus Mutual – A Strong LeaderSQUIRE SMITH, President
Over the past year, communications within our industry have been open andhonest. Florida Citrus Mutual continues to take a strong leadership role inthe two major areas that have consumed much of the resources and energyof your association.
CITRUS CANKER
The unanimous Supreme Court decision reconfirming the constitutionalityof the canker eradication program is a critical step along the path of removingthis insidious disease as a threat to the Florida Citrus Industry.
Our industry owes a debt of gratitude to Commissioner Bronson for hisunrelenting support of the canker eradication effort.
Florida Citrus Mutual has been very active and instrumental in thisprocess and will continue to focus its efforts with anticipation ofthe day when we can declare the state of Florida canker free.
TARIFF
Protection of the tariff remains the primary focus of Florida CitrusMutual.The formation of the Citrus Tariff Oversight Committee willbe looked back upon as a pivotal event in our industry’s history.Thisgroup of leaders have worked tirelessly through, at times contentious butalways critically important issues that will ultimately enable this great industry to prevail in this battle.
With the support of the Mutual Board and the commitment of Florida Citrus Mutual financial resources,our plan of action has been designed and implemented with a level of success thus far that we could haveonly dreamed of a year ago.The collaboration of these efforts with the Department of Citrus and CitrusCommission has been essential and greatly appreciated by throughout the industry.
One of the highlights of the implementation of the Tariff Protection Plan has been the total cooperationof our intermediate handlers and processors.The essential role that these folks have played in thecollection process is greatly appreciated by all elements of our Industry.
In light of the success that we have enjoyed this past year, our ultimate goal remains the removal of thetariff from all future trade negotiations.This will only be achieved by our steady, thoughtful andaggressive interaction with those that hold the future of the Florida Citrus Industry in their hands.
Rest assured that Florida Citrus Mutual is committed to the unity and purpose of achieving this goal.
Legislative Battles on theState and Federal Levels
FEDERAL LEGISLATIVE ISSUES - • Tariff Preservation - in 2003, Mutual President Squire Smith
appointed the Citrus Tariff Oversight Committee (CTOC), asub-committee of Mutual.The CTOC then hired a DC lobbyingfirm and implemented the Citrus Tariff Preservation Plan.There were several CTOC successes in 2003 – the trade negotiations in both Cancun and Miami did not address the citrus tariff. Although 2003 was a good year for citrus growers, the CTOC will remainvigilant on this issue.
• Canker Funding - Since canker began moving into commercial citrus growing areas of the state,Mutual has worked to secure lost tree and income compensation totaling $95.2 million including$10 million for 2004. Additionally, Congress has appropriated more than $183 million for theeradication program. Mutual will continue this effort until canker is eradicated from Florida.
• Labor - After many years of hard work, Mutual, in conjunction with other U.S. agriculturalgroups, was able to get beneficial labor legislation introduced in the U.S. House and Senate in 2003.The AgJOBS bill, which has bipartisan support and numerous co-sponsors in each House, addressesseveral areas of concern for Florida citrus growers. We will continue to work this issue.
• Tree/Crop Insurance - Mutual has worked with the USDA Risk Management Agency (RMA) to encourage improvements in the Crop Insurance risk management tools available to the citrus growersof Florida. In response to that urging, RMA has contracted for a complete review of recommended changes to the Tree Insurance Program and has contracted for development of a Revenue Insurance Program.
STATE LEGISLATIVE ISSUES -• Constitutional Referendum Reform - We continue to work
with the appointed committees within the House and the Senate.Our goal and that of nearly all parties in this debate is to raisethe bar by which an amendment passes.
• Farm Labor Issues - This issue involves the pesticide bill inboth the House and the Senate, and the anti-slavery bill.Mutual continues to work with legislators on the pesticidelanguage.Work continues to combine these issues into theAgriculture Committees and combine them into one farmworker bill.
• Soda Pop Bill - Mutual continues to work towards advancement of this bill, which is strongly opposed by Coca Cola, the Florida Candy Association,and Pepsi. The goal is to introduce healthy choices, such as 100% juices into school vending machine instead of carbonated soft drinks, whichare predominately in machines now.
• Canker Bill - Work continues in an effort to move all canker cases to Tallahassee, allowing for the plaintiffs to cover the burdensome costs of these battles instead of agriculture; and allow for the Commissioner of Agriculture’s declaration of an ag emergency to set aside city & county rules andordinances. This would help prevent local cities and counties from passing ordinances that wouldimpede the emergency work, such as canker eradication, of the Commissioner of Agriculture.
Congressman Adam Putnam addressesMutual's Board as Andy LaVigne listens.
Florida Department of AgricultureCommissioner Charles Bronson speaks withMutual Board members Louis Haverlock
and David Evans in Tallahassee.
PolkPolk17241724
LevyLevy3 MarionMarion
1414
AlachuaAlachua4747 PutnamPutnam
6262 FlaglerFlagler4
SeminoleSeminole150150
VolusiaVolusia345345
ManateeManatee129129
HardeeHardee374374
DeSotoDeSoto238238SarasotaSarasota
7979CharlotteCharlotte
4444
Indian RiverIndian River289289Okeechobee
Okeechobee
3434
St. LucieSt. Lucie207207
OsceolaOsceola105105
LeeLee111111
HendryHendry103103
Palm BeachPalm Beach7979
MartinMartin2525
BrowardBroward8989CollierCollier
4444
St. JohnsSt. Johns1313
BrevardBrevard162162
HernandoHernando5555
PinellasPinellas137137
HillsboroughHillsborough704704
PascoPasco305305
CitrusCitrus2626
OrangeOrange906906
HighlandsHighlands404404
LakeLake958958
GladesGlades7
DadeDade157157MonroeMonroe
1414
Membership: Over 10,600 Strong
CITRUS VOICE BEING HEARDTHROUGH GRASSROOTS NETWORKEnsuring the citrus industry’s voice is heard, the Florida Citrus Industry GrassrootsNetwork (FCIGN) allows members to be active in the decision making process andjoin with others who share common views. FCIGN plays an important role in thelegislative process. Made up of citrus growers, business leaders and communityleaders, FCIGN is devoted to increasing political involvement by organizing andinvolving these groups of people on issues facing the citrus industry. As necessary,FCIGN members are called on, through Calls-to-Action, to send letters to theeditors of local newspapers and to write, call or visit legislators.
FCIGN INSTRUMENTAL IN SAVING THE ORANGE• Implemented successful grassroots strategy for preserving
orange on standard Florida license plate
• Speakers Bureau-Using FCIGN members, the Speakers Bureau is an avenuefor citrus representatives to speak at civic clubs, schools, and local agenciesin order to educate communities about Florida citrus and it’s economicimpact on the state of Florida.
Mutual’s CommunicationVital For the Citrus Industry
Mutual holds a strong communication between grower members, media, elected officials,grassroots members, allied members, and regulatory agencies. Participation in the Citrus Expo,Florida Agricultural Conference and Trade Show, Indian River Citrus Seminar along withregional meetings is a vital source of communication throughout the citrus industry.
• TRIANGLE – Mutual’s four-page weekly member newsletter informs members of issuespertinate to the citrus industry.
• MEDIA – Mutual holds a positive relationship with media outlets including television,radio and print. Successful media outreach strategies include FTAA Ministerial in Miami.
• ALLIED MEMBERSHIP – Mutual’s Allied Membership is offered to non-citrus producingbusinesses that rely heavily on the success of the viability of the Florida citrus industry.
• AREA MEETINGS – Continuing the tradition of quality communication with its members,Mutual holds Area Meetings each year at various regions of the state.Vital industry andeducational information is given, along with an opportunity for members to voice opinionsand concerns.
• GRANT AWARD – Mutual was awarded a $52,000 grant from the U.S. Department ofAgriculture Risk Management Agency to allow educational materials and seminars forpest and disease management to be formulated and made available to Florida citrus growers.
• EDUCATION – Through a partnership with the Florida Departmentof Agriculture and consumer Services and the U.S.D.A./Risk Management Agency Federal Crop Insurance Corporation,Mutual published the Florida Citrus Invasive Pest and DiseaseIdentification Handbook to allow citrus growers recognizemany invasive pests and diseases while out in the field.
• WEBSITE – Mutual’s website contains vitalindustry information, such as newsclips,updates on the citrus tariff preservation,upcoming events, industry links and a widerange of general industry information.
CASEY PACEDirector of Public Affairs
Mutual Works to Protect Citrusand Valuable Florida Resources
CROP INSURANCE – Mutual worked with the U. S. Department of Agricultures’ Risk ManagementAgency (RMA) improve the risk management tools available to Florida citrus growers and to encouragedevelopment of new and better policies for the Florida citrus industry.
• Florida Fruit Tree Insurance program - Mutual was instrumental in adding citrus canker as a peril to the program. Mutual urged RMA to contract with a private insurance company to review andmake recommendations for improvements to the program. If accepted, those recommendations will result in a much improved tree insurance program.
• Risk Management Tools – At Mutual’s urging, RMA has contracted with a privateinsurance company to develop a revenue-based insurance policy that will insure therevenue stream for Florida citrus growers. That policy is now being developed andshould be ready to present to RMA in 2005.
LABOR ISSUES – Mutual serves on the Board of Directors and Executive Committee of the NationalCouncil of Agricultural Employers (NCAE) in Washington DC.
• AgJOBS Bill - Mutual has worked closely with NCAE to develop a workable guest workerprogram, such as the AgJOBS bill. This bill is a result of over 5 years of negotiations anddevelopment and Mutual has worked to secure the support of Florida’s congressional delegation.
• Mechanical Harvesting - Mutual staff serves on the Citrus Harvesting Research Advisory Councilto develop Mechanical Harvesting that is suitable for all regions of the industry and the potentialfor robotic harvesting.
CITRUS CANKER ERADICATION PROGRAM – Mutual works to insure continued funding for cankercompensation to growers and for continued federal funding for the citrus canker eradication program.Congressional appropriations for commercial compensation is over $95 million since 1999 and over$240 million in federal funding for the eradication program since 1999.
ENVIRONMENTAL PROTECTION AGENCY/PESTICIDES – Mutual serves on a national working groupto review the EPA’s Worker Protection Standard and provides responses to regulations proposed by theEPA.
GROWER CERTIFICATE PROGRAM – Mutual developed an industry ad hoc committee that secured aGrower Tree Run Certificate program. After obtaining certification and testing for maturity, a growermay move fruit from his own grove into a market out of state with certain limitations allowing smallgrowers to create a market for their own fruit.
WATER – Mutual serves on the Southwest Florida Water Management District (SWFWMD) andSt. Johns River Water Management District (SJWMD) Ag Advisory Committees to represent theneeds of growers and the specific needs for the citrus industry.
• SWFWMD Southern Water Use Caution Area (SWUCA)-Mutual was instrumental in securing water meter reimbursement program in the SWUCA .
• Conserv II-Working closely with the Florida Department of Agriculture and Consumer Servicesand the Conserv II Grower Advisory Committee, Mutual secured an agreement between thegrowers and Orange County on a fee that is fair to both parties for the use of reclaimed water.
CITRUS CANKER – Canker Decontamination Seminars- Mutual worked in conjunction with variousag organizations to educate growers across the state with six canker decontamination programs.
WEATHER – From December through March, Mutual monitors the weather and records a dailyminimum temperature forecast available 24-hours a day.
• Florida Agriculture Weather Network-Mutual helped garner funding for the Florida AgWeather Network (FAWN) from the St. John’s Water Management District.
TARIFF RESOLUTIONS – Mutual worked with counties across the state to pass resolutions insupport of maintaining the tariff on imported citrus products. 25 counties have passed resolutions,which include citrus and non-citrus producing counties.
MIKE CARLTONDirector of Production
& Labor Affairs
RUSTY WIYGULDirector of Grower Affairs
Monitoring the Market
MARKET NEWS BULLETIN – Mutual publishes the MNB to update members on market trendsthroughout the season providing reliable market information needed to market citrus profitablyand strengthen industry statistics.
ANNUAL BUYERS GUIDE –This list of Mutual handlers – processors, packinghouses andintermediate handlers along with contact information assists fruit buyers in daily operations.
GROWER CONTRACT SEMINARS – FCM conducted three regional seminars to educategrowers on fruit contracts, trends, new clauses, legal issues and license and bond issues.
CONTRACTS & PARTICIPATION PLANS – Mutual publishes a book containing standard fruit contractsand participation plans from processors and handlers.
INTERMEDIATE HANDLER MEETINGS – Mutual educates intermediate handlers on importanttopics such as labor laws and mechanical harvesting at these meetings.
Economic Trends Vital to the Industry
Monitoring market trends, Mutual’s Economics Division tracks vital information for the industryrelating to movement, storage, prices and sales trends. Through the increased popularity of low-carbdiet trends, Mutual has evaluated the statistic data in order to more effectively inform growers ofexpectations in the marketplace.
ANNUAL STATISTICAL REPORT – Mutual publishes the Annual Statistics that is a historical trackingof market trends across the state. Yearly comparisons allow members to track past seasonsproductions, yield, tree inventories, imports, exports and overall production for the industryacross the state.
CITRUS STATISTICS – The Citrus Statistic is published bimonthly reporting bulk pricing,canners averages, movement and inventories on-hand and in storage.
MELANIE BURNSDirector of Market Information
BOB BARBERDirector of Economics
A Financial Look At Mutual
Florida Citrus Mutual (FCM) has taken on the financial oversight, accounting and collection ofgrower-approved assessments for the Citrus Tariff Oversight Committee (CTOC). Regular updatesare presented at CTOC meetings with financial statements and updates on the collection anddisbursement process being provided. While the FCM board is also updated with this financialinformation it is up to the sole discretion of the CTOC on how these funds are collected and disbursed.The process developed to collect these funds is much like the process FCM has used to collect itsgrower assessments. Participation has shown that growers are in full support of maintaining the tariffand are willing as an industry to finance this program. The process is working well and we anticipatesuccess in collecting the necessary funds that will enable the Tariff Committee to complete their task.
FCM also provides accounting support and tax services for the Florida Citrus Industry ResearchCoordination Council, which is a stand-alone 501c3 not-for-profit entity that is responsible forcoordinating research with the citrus industry on a state, national and inter-national level.We alsocontinue to be responsible for the accounting and reporting of both our Federal and Statepolitical action committees.
Through the annual audit conducted by KPMG, FCM continues to receive an “Unqualified Opinion”.This opinion attests to importance placed by the board and management of FCM on how growermoney is handled.
FCM INCOME SOURCE
Grower Assessments & Contributions
Grant Income
Investments
Rental
Fed PAC
State PAC
KEVIN METHENYCPA, Controller
78%
8%
6%
3%1% 4%
Allied Members
Florida citrus supports many non-citrus producing businesses that rely heavilyon the success and viability of the industry. With the tariff battle threatening theentire citrus industry, and, therefore, all those businesses that depend on theindustry, Mutual has established an Allied Membership Program. This programallows those non-citrus producing businesses to join in the battle for tariffpreservation and to demonstrate to their customers that they appreciate theimportance of the citrus industry to Florida.
AgFirst Farm Credit BankAglime Sales IncAgri-Property Consultants IncAkin Gump Strauss Hauer & Feld LLPBalancing Nature OrganicsBASF CorpBlue Goose GrowersBogdahn Consulting LLCBoring Business SystemsBox USABrooks TropicalBrown Citrus Systems IncCarden & Associates IncChemical Dynamics IncChemical SystemsCitraPac IncCitrus & Chemical BankCitrus & Vegetable MagazineCitrus Industry MagazineCitrus Industry MagazineConibear Equipment Company IncCreative Printing & Graphic DesignCrompton CorpDavid Cannon Well Drilling IncDouglass Fertilizer & Chemical IncDuPont Crop ProtectionEverglades Farm Equipment Co IncFarm Credit of South Florida ACAFarm Credit of SW Florida ACAFields Equipment Co IncFleetwing CorpFlorida Ag Services IncFlorida Bulk Sales IncFlorida Chemical Co IncFlorida Citrus ShowcaseFlorida Distillers CoFlorida Favorite Fertilizer
Florida Fruit PartnersFlorida Grower MagazineFlorida Southern CollegeFlo-Tec IncGreenline Foods IncGrimsley Oil CoGrowers Fertilizer CorpGrowers Service Co IncHelena Chemical CoHescoHydro AgriJ Rolfe Davis InsuranceKillebrew IncLakeland Air Service IncLassiter Ware InsuranceMaxijet IncMichael D MartinMid-Florida Freezer Warehouses LtdMorgan StanleyNew York Board of TradeO’Neil Lee & West IncPavese Haverfield Dalton et alPritchett Trucking IncPro Pak SoftwareR C Stevens Construction CoRalph White Grove Care IncSouth Ridge Abstract & TitleStallings Crop InsuranceSyngenta Crop ProtectionTedder James Worden & Associates PAThe Avanti CoThompson Tractor Co IncUniversity of FloridaW D Tanner IncWachovia BankWells & Associate Insurance Agency
Board Members and StaffOfficers
SQUIRE SMITH - President
MARTY MCKENNA - Vice President (Western Area)
LES DUNSON - Vice President (Northern Area)
CLAVIN LLOYD - Vice President (Southern Area)
PHILIP GATES - Vice President (Western Area)
J.A. CLARK, III - Secretary
CAREY SOUD - Treasurer
JAMIE BROWNPublic Affairs Specialist
JEWEL LETCHWORTHExecutive Assistant
HEATHER RUSSOMembership Coordinator
FRANCES LANEBookkeeper
CAROL MCKENZIEManager of Public Affairs
LAURIE HURNERAsst. Dir. Grower Affairs
SUEJETTE MCCRAWStaff Assistant
DELBOHN TRUDELLFacility Operations
Board of DirectorsBOB BARTHLE
BOB BATTAGLIA
FRAN BECKER
DENNIS BROADAWAY
DAVID EVANS
JAMES EMMETT EVANS
RIC FREEMAN
LOUIS HAVERLOCK
JACK NELSON
RONNIE OAKLEY
J. BRANTLEY SCHIRARD, JR.ROBERT SEXTON
STEVE SORRELLS
CAREY SOUD
TRAVIS WISE
Support Staff