2026 Packer 25 honorees, John Hollay, president and CEO of the National Council of Agricultural Employers; Gail Delihant, senior director of California government affairs, Western Growers Association; and Hector Garza, director of industry relations, Texas International Produce Association, have a front seat to policy decisions at every level of government from federal labor regulations to state packaging mandates to cross-border logistics. And these policy decisions directly dictate the operational viability and future of the fresh produce supply chain.
Why Ag Labor Reform Is an ‘Everybody Problem’
Recognized for his strategic leadership in federal agricultural labor advocacy and protecting agricultural employers, Hollay says a major challenge facing the fresh produce industry is growers “don’t know if they will have workers, who they will be, or how much it will cost to employ them.”
Labor is the largest expense for fresh produce growers. That expense, coupled with an aging-out domestic workforce and a costly, seasonal-only guest worker visa program in H-2A, has significantly threatened domestic specialty crop production.
“American growers cannot make 10-year investments on labor costs they cannot predict,” he says. “Their foreign competitors don’t face that problem, and the steady rise in fruit and vegetable imports shows where production goes when growers can’t compete. Once it leaves, it rarely comes back.”
And this is why he says structural reform can’t wait.
“I think the most critical thing for American agriculture to stay competitive is to give farmers the certainty they need to do what they do best,” he says. “If we can provide certainty on the cost and availability of labor, the highest input cost for countless commodities, our farmers can do more than survive. They can thrive.”
A major priority for NCAE is the Securing Agriculture’s Workforce Act, which was developed out of a bipartisan Congressional working group that identified H-2A guest worker visa reform as a key to agriculture’s economic future.
“The legislation meets the needs of farmers because it was written based on their direct feedback,” he says. “By opening the program to industries without legal workforce solutions, cementing a wage rate that allows for predictability, and streamlining the program so that it works as intended, SAWA is the reform we’ve waited 40 years for.”
Hollay says this ag labor crisis doesn’t just impact agriculture; it highlights a fundamental question facing the industry: “Who do we want growing the healthy foods that will Make America Healthy Again?”
And this is why growers desperately need the tools to do so.
“We need to do a better job of helping people realize that this isn’t a farmer/farmworker problem; this is a consumer problem, an everybody problem,” he says.
The Hidden Supply Chain Costs of SB 54
Recognized for her vital work raising industry awareness around California’s SB 54 regulations, educating growers on packaging compliance and bridging the gap between farm realities and state mandates, Delihant says this regulation is determining the “producer” and thus the responsibility for paying extended producer responsibility, or EPR, fees.
“Responsibility can become even more confusing when produce is field-packed, packed for another company, sold under a private label or repacked farther down the supply chain,” she says.
“Operationally, growers and shippers must identify every type of covered packaging they use, determine its material composition and weight, document where and how it is used, and connect that information to individual products and sales into California,” she says. “Most agricultural businesses do not have systems designed to collect that level of packaging data.”
Beyond just the fees, fresh produce businesses may need to take costly steps such as redesign packaging, change suppliers or purchase or modify packing equipment. She says there is real concern that compliant alternative packaging that provides equal or better food safety protection and performance may not exist. Also, growers can’t simply absorb the costs or pass them along without affecting the economic viability of their operations.
“Fresh produce is a living, perishable product. Its packaging is part of a carefully designed system that allows the product to be cooled, protected, transported and delivered safely while preserving quality and shelf life,” she says. “The package must withstand moisture, temperature changes, stacking, long-distance transportation and repeated handling throughout the supply chain.”
Arbitrarily removing packaging risks higher food waste and damage, which directly defeats SB 54’s environmental targets. Delihant says packaging must be judged on performance, not just material.
“The biggest misconception is that fresh produce packaging is primarily a marketing choice and can easily be replaced with something else,” she says. “Regulators need actual information from growers, not assumptions about how produce is grown, packed, cooled, shipped and sold.”
Another misconception is that because SB 54 is a California law, it does not affect growers and shippers outside the state.
“If their packaged products are sold into California, they may have responsibilities under the program,” she says. “Oregon and Colorado’s programs are already underway. Washington, Maryland and Minnesota will soon implement their programs. Other states are considering similar policies.”
Building Trust Across the U.S.-Mexico Border
Garza, recognized for his crucial work strengthening cross-border industry relations and facilitating seamless fresh produce commerce, says that TIPA plays a key role in bringing together parties from both sides of the border that depend on one another. While regulations can be complicated and small differences in how they’re understood or implemented can create problems, communication is a vital part of these relationships.
“The relationships we have built with Mexican associations are especially important because they allow communication to move in both directions,” he says. “We can share what U.S. importers and regulators are seeing while also understanding the challenges growers and exporters are facing in Mexico. Ultimately, our goal is to create consistency and predictability.”
Multiple jurisdictions and agencies are involved in moving shipments of fruits and vegetables from Mexico to the U.S. and that can be a major challenge. Garza plays a key role in facilitating conversations and if challenges arise, noting that the relationships built over time are extremely valuable.
“You don’t want the first conversation with an agency, association or industry partner to happen when there is already a problem,” he says. “Maintaining those relationships year-round allows us to pick up the phone, get reliable information and help our members make informed decisions more quickly.”
And that’s especially with United States-Mexico-Canada Agreement, which he says, “USMCA provides the framework for trade, but relationships between the people operating within that framework are what make it work every day.”
South Texas is a major hub for fresh produce, and Garza says the region’s future will depend on infrastructure and technology to grow with it. He says this includes automation and AI integration at ports of entry, inspection capabilities, cold storage, warehouses, transportation networks and more. But he says, while technology will help fuel growth, the fresh industry is still a relationship-driven industry.
“The companies that succeed will be the ones that combine technology with strong relationships among growers, importers, logistics providers, buyers, government agencies and associations on both sides of the border,” he says.
