1/24/01 -- During the last six weeks I have held discussions with every other handler and with a significant number of growers regarding the Marketing Order. As a result of those discussions I have come to the following conclusions.

1. It is possible to develop a plan that will be fair to all growers and should return $35 to $40 per barrel.
2. It is not possible to develop a plan that provides every handler with the fruit they want at the price they want.

It is my opinion that, as growers, we must enact a Marketing Order that serves us first. We must not ignore the handler issues, but we cannot advance a plan that addresses handlers’ interests first. We must strive to develop a plan that should increase grower prices to the $35 to $40 range and addresses as many handler concerns as possible.

The economic data presented by the independent economists suggests that if we, as growers, want a price per barrel of $40, we must have a plan that limits the total available supply to 7,500,000 to 8,000,000 barrels. I believe that the growers understand that the oversupply is an industry problem. I believe that the growers are willing to agree to a plan that shares the pain equally between all growers regardless of handler affiliation.

I have sat at several grower meetings with Ocean Spray, Cliffstar, Pappas, Decas, Hiller and Northland growers and have witnessed a true spirit of cooperation. I have also sat in several meetings at the handler level and find them full of innuendo and finger pointing as each handler attempts to serve their individual agenda.

Northland’s agenda is simple. We are looking for a plan that, according to economic analysis, should generate $40 per barrel for the fruit that Northland and its growers produce. Based upon feedback from other growers, I believe that Northland’s agenda is the same as the agenda of most of the growers. My proposal to accomplish that agenda is as follows.

1. Utilize the Producer Allotment to deliver 70% of Sales History in 2001.
2. Divide the 70% into two "pools".

1. 55% unrestricted
2. 15% restricted

1. Restricted Pool controlled by CMC.

1. Price of $50 per barrel

1. $5 retained by CMC
2. $10 paid to handler for cost of binning freezing etc.
3. $35 returned to grower

1. Establish lower price for new foreign sales to build market

1. Allow growers to sell allocation to other growers and choose to not grow a crop.
2. Handlers voluntarily agree to treat foreign purchase the same as US

Problems:

1. We would need the USDA to approve an "informal rule" to allow us to combine Producer Allotment and Handler Withholding. I believe that if the industry supported the plan with a vast majority, we could obtain approval.
2. We would need approval to allow the sale of allotment between growers. Since under the current rule a grower can transfer allotment through a lease if USDA did not approve a sale, any grower could "lease" his allocation.
3. Some handlers will object to paying $50 to access fruit.

Advantages:

1. Shares the burden of fixing the problem equally by all growers regardless of handler.
2. Limits supply to a level that economists predict will raise grower prices to $40.
3. Makes supply available at $50 per barrel if in fact more than 7,500,000 barrels can support a price to the grower at $40 and the economists underestimated the total barrels that were necessary.
4. Provides protection at the 7,500,000-barrel level against a bad crop due to growing conditions.
5. Places supply and demand in line quickly rather than dragging out the problem over several years.
6. Eliminates the need to destroy large amounts of fruit and the political nightmare of dumping.
7. Allows growers to make individual decisions.

1. Grow zero crop and sell allocation.
2. Purchase allocation and grow entire crop.
3. Reduce crop to 70% of Sales History.

Plan #2 - Only if USDA does not approve the combination of Producer Allotment and Handler Withholding.

1. Grow the entire 2001 crop.
2. Implement Handler Withholding at 55% of crop.
3. Set CMC fruit price at $50 (same as Plan #1).

Problems:

1. Requires growers to spend the money to grow the entire crop.
2. Requires significant "dumping" with related costs and political issues.

Advantages:

1. Requires no informal rule by USDA.
2. Reduces available supply to the economists’ target supply for projected return to $40 per barrel.
3. Makes fruit available if it can be sold at grower breakeven prices.

We must quickly act as growers to utilize our legal power within the Marketing Order to reduce supply in order to increase price. As growers, we need to contact our CMC voting member and make our desires known. We need to trust that our fellow growers on the committee will represent us as growers and not just be a handler representative.

Many will accuse me of living in a dream world, but I believe that the growers understand what it takes to solve the grower problem and our grower members of the committee will act on behalf of all growers in the end.

I will be glad to discuss any suggestions or comments on my proposal at anytime.