A grower referendum is underway that would improve flexibility for the Almond Board of California (ABC). Ballots are currently being sent out and the deadline for votes is November 20. ABC President and CEO Richard Waycott said the proposed amendments are primarily administrative or modernizing in nature. However, one key factor is granting ABC borrowing authority to manage cash flow better.
“The principal item really is this borrowing authority, which does not increase the assessment. It does not increase the revenue of the organization at all during the year. It’s just a timing issue like most businesses have where they have certain times of the year where there’s more money going out than coming in,” Waycott explained. “This would allow us to bridge those times with this temporary financing.”
Marketing orders for other commodities already have established guidelines for borrowing authority. The Board of Directors and ABC’s Audit & Finance Committee would dictate how the authority would be used and to what extent. Any borrowed funds would be paid back, and ABC would not go from one crop year to another with a credit line above zero. “But it would maximize our ability to make the use of funds, with our media and driving global demand campaigns, as efficient as possible,” said Waycott.
One of the cornerstone priorities for ABC is cultivating demand for almonds. Certain times of the year can be more costly than others, in attempting to make the most of holiday celebrations such as Christmas in the West, Chinese New Year, and Diwali in India. Waycott said the borrowing authority would help support instances where funding is needed to capitalize on market potential.
“We have a lot of heavy promotional expenses. There’s public relations and especially advertising. The media budgets, which are so hefty, largely take place in the fall,” Waycott noted. “We don’t necessarily have the revenue coming in from assessments to fund all that at the same time. So, this borrowing authority will allow us to do that more efficiently.”
Listen to the segment below.
Brian German
Ag News Director / AgNet West