Meeting Notice

There will be a meeting of the

Agricultural Benefit Advisory Committee Monday, June 1, 2020

3:00 pm

Conference call at +1 (442) 265-7999 w/access code 35433549 followed by # key.

If unable to join via conference call, you may join in-person at 852 Broadway, El Centro, CA 92243

In light of current events, it is strongly recommended that all attendees join via phone.

Agenda:

All supporting documentation is available for public review at the Agricultural Commissioner’s Office. For details call (442) 265-1500

1. Call to Order

2. Pledge of Allegiance

3. Conflict of Interest Form

4. Public Comment for Items Not on the Agenda

This is an opportunity for members of the public to address the Committee on any subject matter within the Committee’s jurisdiction, but not an item on the agenda. Any action taken as a result of public comment shall be limited to direction to staff

5. Approval of Order of the Agenda

6. Approval of Minutes: February 24, 2020

7. Discussion/Action regarding UC Cooperative Extension Grant - Ali Montazar

8. Agricultural Benefit Scholarship Program

9. Formation of the Imperial County Business Stabilization Lending Program

10. Discussion/Action of Southwest Microbial Loan

11. Fund Balance

12. Set Next Meeting Date

13. Adjourn Meeting

Agricultural Benefit Advisory Committee

Draft Meeting Minutes

February 3, 2020

I. Call to order

A regular meeting of the Agricultural Benefit Advisory Committee was called to order at 3:00 pm on February 3, 2020 at

the Agricultural Commissioner’s Office Conference room.

II. Roll call

Committee Members present: Carlos Ortiz, Paula Pangle, Steve Snow, Kay Pricola and Harold Walk.

Guest present: Brea Mohamed, Rosa Lopez, Michael Bandiera, Bari Smith, John Currier, Todd Bean, Jolene Dessert and

Sandra Mendivil.

III. Public Comment

Carlos informed the committee the General Public Member and Alternate selection was in the consent calendar of the

Board of Supervisors meeting the following day. A letter with the committee’s recommendation was sent to the Clerk of

the Board as requested by the committee at the last meeting. Carlos will contact the candidates selected after the

Board has made their decision.

Kay asked that all documents that will be presented to the committee be sent out with the agenda in order to comply

with the Brown Act.

IV. Approval of Order of the Agenda

Kay made a motion to approve the agenda; Paula seconded; the motion passed unanimously.

V. Approval of Minutes

Harold requested a change be made to a statement under Public Comment pertaining to the request for proposal for

financial institutions to assist in the loan portion of the program. He corrected the comment to include that the issue is

not the money but the fact that the loans would not be originated by the bank. Paula made a motion to approve the

meeting minutes from January 27, 2020 with the revisions; Harold seconded; the motion passed with one person

abstaining.

VI. Loan Application – Imperial CBD Extraction

Carlos informed the committee that a team comprised of County CEO and Auditor’s staff had been on location to

review the company’s financial information. County Staff had reported that the company had provided all the necessary

documents in order to proceed with the process. Bari Smith presented the loan proposal for Imperial CBD Extraction to

the committee. Bari gave an overview of the company and the hemp market forecast. She explained the extraction

process would be a cryo-ethanol extraction and went on to provide details. The company is projecting they will be able

to do CBD extraction, remediation, formulation and provide white label services to the grower. She explained the need

for such extraction facility as there are very few facilities and those are already at capacity. Bari also reviewed the

financial projections for the company and how they project a profit margin of about 73%. Regarding economic

development, they expect to create 29 new fulltime equivalent (FTE) jobs in the first year and 53 FTE jobs by the 3rd

year and expect 70% of those jobs to go to local employees. They would use the loan to purchase additional equipment

needed as well as have working capital. The collateral they are considering is the equipment that would be purchased

with the loan. They are requesting a 20% loan forgiveness upon meeting the hiring initiative. The committee asked

questions regarding the demand, market, byproducts and the process. The committee also advised the applicant to

provide another form of collateral as opposed to the equipment they had originally suggested. The committee

suggested a personal guarantee or a lien on real estate property. After some discussion, Paula made a motion to

recommend to the Board of Supervisors Imperial CBD Extraction be granted the $600,000 loan with the caveat of

providing a personal guarantee or first on real estate property as well as a 20% loan forgiveness at the 5 year mark for

job creation; Steve seconded; the motion passed unanimously.

VII. Adjourn

The meeting was adjourned at 4:00 pm.

Carlos Ortiz Agricultural Commissioner

Accomplishments and Future Plan for the Research and Outreach Program: Assessment of alternative crops and

irrigation practices for water conservation in the Imperial Valley

Ali Montazar Irrigation and Water Management AdvisorUniversity of California Cooperative Extension

Imperial County Agricultural Benefit ProgramAdvisory Committee Meeting - June 1st, 2020

Special thanks to:

• IC Board of Supervisors & Agricultural Benefit Program

• Other funding agencies/sponsors/contributors (USDA-CDFA; USDA-NRCS; California Fresh Carrots Advisory Board; California Leafy Greens Research Board; Coachella Valley Resource Conservation District; Imperial Valley Irrigation District, Palo Verde Irrigation District)

• Cooperative growers (42 commercial fields)

• UCCE academics and state scientists/experts(Particularly Oli Bachie, Khaled Bali, Michael Cahn, Daniel Geisseler, Alex Putman, Richard Snyder, Alireza Pourreza, Sonia Rios, Cayle Little, Dennis Corwin, Robert Krueger, Daniel Putnam, Jose Aguiar, Jairo Diaz, Michael Rethwisch, Eta Takele)

Staff• Two lab assistants

• Eight college students / paid interns (from Imperial Valley

College, University of Arizona - Yuma, UC Riverside, California State

Polytechnic University - Pomona)

• A PhD student from Jiangsu University, China

• Contract laborers 11,800-hour field works

Accomplishments

• Conduct research trials in 42 commercial fields (totaling more than 1,800 acres - 11 crop commodities of alfalfa, carrots, date palm, onions, klein grass, lemons, olives, sugar beets, spinach, sunflowers, and wheat)

• Conduct six research trials at UC Desert Research and Extension

Center (alfalfa, organic spinach, and carrots)

• Provide/set up more than 500 soil moisture

sensors in commercial fields

• Provide/set up 39 Tule ET sensors in commercial fields

• Publications (19 extension and one peer-reviewed journal articles

published; 10 articles under preparation/publication)

• Presentations (29 presentations in local/regional/state/national events)

• Interviewed by ag. industry related media (14 interviews)

• Recruit eight students/paid interns + two lab assistants

• Generate additional/matching funds for the program($809,373)

Develop Crop Water Use Information (ongoing project)

Sugar BeetsWheat

Alfalfa Sunflowers Klein grass

OnionsLemonCarrots

Olives

Improve Date Palm Water Use Efficiency (ongoing project)

Viability of Sub-surface Drip Irrigation for Sugar Beets Production in the Imperial Valley (ongoing project)

Evaluation of Drip Irrigation for Spinach Production and Downy Mildew Management (ongoing project)

Best Nitrogen and Irrigation Management Practices in CA Low Desert Carrots (ongoing project)

Alfalfa Experiments (ongoing project):

(1) Subsurface drip irrigation (SDI)and best irrigation water management practices

(2) Comparisons of irrigation practices (flood vs. SDI and sprinkler linear move)

(3) Deficit irrigation of alfalfa as a water conservation strategy

Plan for the next two-year• Continue close work with the cooperative growers and expand

collaboration with new growers

• Continue on-going research and extension projects/activities

• Publish the outcomes of projects – develop applied

tools/information and recommendations

• Develop new research projects based on continuous needs

assessment

• Conduct economic feasibility assessment of water conservation

practices in collaboration with IC FB and IVH2o

• Continue recruiting students and supporting staff

• Continue generating additional funds for the program

Many thanks for all the supports you’ve provided IC-UCCE, specifically this project.

ABAC Loans & Grant Status and

Scholarship Match Program

Applicant Type

Amount

Requested

Amount

Approved by

ABAC

Amount

Approved by

BOS

Amount of

Funds

Disbursed

Term of

Loan

Amortization

Period

Payment

Amount Frequency Loan Balance Payment Status

One World Beef

Ag Business

Development 2,500,000$ 2,500,000$ 2,500,000$ 2,500,000$ 10 years 20 years $10,416.67 Monthly $2,020,089.84 Current

California Ethanol+Power

LLC

Ag Business

Development 1,500,000$ 500,000$ 750,000$ 674,101$ 10 years 8 years $93,750.00 Annual $941,589.01

Interest Only Payments,

Principal Deferred to

November 30, 2019

Dahm

Enterprises/Southwest

Ag Business

Development 150,000$ 150,000$ 150,000$ 150,000$ 7 years 7 years $1,915 Monthly $63,547.85

5 months behind

DEFAULT

Silverdale Cheese Co.

Ag Business

Development 491,890$ 491,890$ 491,890$ 491,890$ 10 years 10 years

$12,297.25

plus interest

and

penalties

Quarterly

4/1/18 $491,890.00

1st Payment 4/1/18

DEFAULT - LITIGATION

Doc's Organics*

Ag Business

Development 1,500,000$ 500,000$ 1,000,000$ 1,000,000$ 10 years 10 years

$8,333.33

plus interest Quarterly $924,922.35 Current

One World Beef #2

Ag Business

Development 2,000,000$ 2,000,000$ 2,000,000$ 1,319,679$ 10 years 10 years

$6,666.67

plus interest

and

penalties Monthly 1,222,208.45$ Current

Applicant Type

Amount

Requested

Amount

Approved by

ABAC

Amount

Approved by

BOS

Amount of

Funds

Disbursed

Term of

Loan

Amortization

Period

Payment

Amount Frequency Loan Balance Payment Status

UC Coop Extension

Research &

Development 125,000$ 125,000$ 125,000$ 32,560$ N/A N/A N/A N/A N/A

IVCR - Infrastructure

Research &

Development 150,000$ 80,000$

UC Coop Extension - AM

Research &

Development 124,889$ 249,778$ 246,678$ 185,157$

Imperial County Sheriff's

Office

Research &

Development 130,955$ 130,955$ 130,955$ 127,576$

UC Coop Extension - IPM

Research &

Development 385,000$ 385,000$ 385,000$

Imperial Valley College

Research &

Development 96,059$ 96,059$ 96,059$

Imperial Valley Economic

Deveopment Corporation HEMP Summit 25,000$ 25,000$ 25,000$ 25,000$ N/A N/A N/A N/A N/A

UC Coop Extension -

Master Gardner

Research &

Development 346,621$ 133,457$

Year

Amount

Anticipated

Amount

Dispersed

2015 45,400$ 38,650$

2016 57,100$ 55,950$

2017 75,500$ 55,250$

2018 43,750$ 41,750$

2019 62,000$ -$

5.20.2020

$3000 returned because 1 student did not enroll & 1 student did not re-enroll

Loans

Subtotal Loan Amount Approved by Board of Supervisors $6,891,890.00

* Originally approved for $500,000. Requested an increase to $1,000,000 to BOS and was approved 5.16.17

Grants

Subtotal Grant Amount Approved by Board of Supervisors $1,008,692.45

Scholarships

Comments

$650 not matched because student changed major, non-ag, $500 returned because student did not re-enroll

Current Account Balance $6,798,500.18

$2000 returned because 1 student did not re-enroll

Subtotal Scholarships 2015-2019 $191,600.00

Total Loans, Grants & Scholarships $8,092,182.45