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| Good businesses and good neighbors: A hopeful future for Oregon dairies |
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By Bruce Pokarney
Bernie Faber is known as one of the small guys these days. His 350-cow CalGon Dairy in Polk County west of Salem is surviving at a time when the old way of farming doesn't always cut it anymore. Oregon's population is growing, homes are being built closer to agricultural operations. But something happened more than 20 years ago that taught Faber a lesson that can be useful today.
"I went to talk to a neighbor about renting some additional property for my dairy," recalls Faber. "The husband seemed okay about it but then his wife came out and said ‘you're the guy who makes things stink around here.' Her husband tried to hush her up, but I stopped him because I wanted to hear what she had to say. I found out that the odor from my dairy was only noticeable to her at 5:00 p.m. when we applied manure to the nearby fields. I was able to adjust our schedule so that we did the pumping at 5:00 a.m. That was okay with her since she said she would be sleeping at that time, not making dinner."
Faber, who also chairs the State Board of Agriculture, admits that dairy folks can be independent and, too often, don't listen to other people. It's time for that to change if dairies are going to survive an increasingly urbanized Oregon.
Not in my backyard
Activity this year surrounding potential new dairies being located in Oregon has provoked conversations about how communities and livestock operations can live in harmony. It's a challenge worthy of all parties.
"We in the agricultural industry and residents in urban communities have an excellent opportunity right now to openly discuss how we can have a viable economic sector like dairy coexisting with livable, vibrant communities," says Katy Coba, director of the Oregon Department of Agriculture. "As more people without agricultural backgrounds move to our state, it becomes imperative for the agriculture industry to step up to the plate and find ways to be a good neighbor and proactively deal with environmental impacts."
ODA's Confined Animal Feeding Operation Program permits 378 dairies in Oregon. ODA has routinely gone through the permitting process without a lot of public concern. But efforts by a Willamette Valley dairy operator to locate a facility near Hermiston earlier this year ignited controversy. Fearful that a dairy so close to the city would impact livability, city officials were quick to oppose that particular site. The situation reached a boiling point when the city council invited environmentalists to give a presentation on factory farms without inviting the prospective dairyman to explain his plans.
"When a city council invites the Sierra Club and not the industry to make a presentation on dairies, we haven't done a very good job of telling our story," says Jim Krahn of the Oregon Dairy Farmers' Association. "We plan on making the industry more visible to the urban community through presentations, e-mails, and other forms of communication."
As Nick Furman, the new administrator of the Oregon Dairy Products Commission, points out, "People like to enjoy a glass of milk and take for granted it will always be in the local supermarket. Everyone wants to enjoy high quality cheeses that Oregon is known for. But there is this sense of ‘not in my backyard' when it comes to locating dairies."
Pete DeHaan, the dairy operator who wanted to come to Hermiston, is now exploring other options. It is interesting to note that he operates a facility right next to Linfield College in McMinnville. There has never been a complaint to ODA regarding that operation.
"Clearly there are places that are better sites for dairies than others," says ODA's CAFO Program Manager Wym Matthews. "In the DeHaan case, we eventually found out the city wasn't against having dairies near Hermiston, they just opposed one that big in that spot."
Eastern Oregon has long been thought of as ag country. If dairies face challenges operating in the relative open spaces east of the Cascades, what are they to do?
Go east, young man
Oregon's dairy industry generates more than $600 million annually to the state's economy. It remains a perennial top-five commodity in terms of production value. But there has been a big shift in the industry driven by a need to expand the number of cows per operation in order to be economically viable. For years, Tillamook County on the northern Oregon coast was the mecca of dairy production. But the scarcity of additional land, the cost of bringing in more feed for more animals, and the wet climate's effect on animal waste issues have conspired to move industry expansion to the drier side of the state.
"Environmental issues can be better controlled in Eastern Oregon," says Marty Myers, General Manager of Threemile Canyon Farms, Oregon's largest dairy operation, located near Boardman in Morrow County. "We get eight inches of rainfall a year here while Tillamook may get eight inches of rainfall in just a couple of days."
When the Tillamook County Creamery Association (TCCA) looked for a place to build a second cheese factory, they settled on Boardman with the idea that nearby dairy production would provide a local supply of milk. Since then, other dairy operators-some from Oregon, some from out-of-state-have focused on Eastern Oregon as the place to be, especially the bigger operations. ODA recently permitted a dairy on the east side for 3,000 animals and has received an application for an 8,000 animal facility.
Threemile Canyon Farms is permitted for 55,000 milking animals, making it a very large operation, even by national standards. Its sheer size has made it an inviting target for those who rail against corporate farms.
Corporate social responsibility
Marty Myers is a fifth-generation Oregonian who believes in what the state represents as far as quality of life is concerned. Born in Yamhill County, he now has the awesome responsibility of managing the 93,000 acre Threemile Canyon Farms, with its 300 year-around employees, 400 seasonal workers, and $10 million payroll. While the operation can certainly make a strong case for its positive impact on the local economy in an area where jobs are not all that plentiful, it has tried to counter attacks on its corporate image with what is called a CSR (Corporate Social Responsibility) process.
"We like to say we are turning our good intentions into intentional good acts," says Myers.
A 2005 report issued by the dairy highlights a wide array of practices, ranging from environmental stewardship to the workplace environment. The report doesn't give the operation an A-plus in all categories, but Myers believes it demonstrates a commitment to doing the right thing.
"It is important to have a good relationship with the local community and to be open with the public on what we are doing," he says.
In addition to producing 120,000 gallons of milk per day, Threemile Canyon Farms grows 5,000 acres of potatoes and an increasing amount of organic produce. Animal waste produced by the dairy offers a steady supply of fertilizer for crop production. Plans are underway to build a methane digester to handle extra animal waste.
Nationally, there have been allegations that so-called "factory farms" are moving into areas and ruining the landscape. These large operations are under increased scrutiny as officials look at air quality issues connected to agriculture. But for anyone who has driven the vast expanse near Boardman, it is hard to imagine another industry or business matching the economic activity of Threemile Canyon Farms. It's not your typical Oregon dairy, but it is an example of how the industry is evolving nationwide.
Room for both big and small
In 1998, there were more than 180,000 dairy farms in the US. It is predicted that by 2010, there will only be 13,000 farms. The number of cows is expected to stay the same. Given that equation, it's obvious many dairies will be getting larger.
In Oregon, there is a place for the 50 to 100 cow dairies most commonly found in Tillamook County as well as the operations that hold tens of thousands of animals. So says Krahn of the Oregon Dairy Farmers Association.
"With the growth in organic milk production and specialty cheeses, the smaller dairy can survive as well as the big guy. Operators are taking advantage of the consumers they have locally to increase the bottom line. I expect our producers will be able to extract a higher value out of the market, and size of operation won't matter in that issue."
Krahn sees Oregon dairies more likely selling value-added products. The key to expansion may be the ability for the state to attract more dairy processors to go along with the milk production.
"At the end of the day, Oregonians want to know they are consuming a high-quality, safe, and healthy product," says Furman of the Dairy Products Commission. "I don't think they wonder if it came from a huge farm in Boardman or a small operation in Tillamook. In reality, it's all the same-it's high quality."
Big or small, dairies need to utilize efficiency in order to survive, according to dairyman Bernie Faber.
"We need to try and stay up with as much technology as possible and watch how we spend our money," he says. "This is the way all of agriculture needs to go these days."
Non-fatal attraction
"It's not uncommon to hear about communities that don't want dairies nearby, but there are just as many reasons why communities might want to actually attract these dairies for the economic activity," says ODA's Matthews.
Harney County, which surprisingly does not have a current dairy facility despite its agricultural reputation, would like to join Morrow County in attracting the industry. There is even talk of creating so-called CAFO enterprise zones, in which a tax break would be given as an incentive for dairies to locate at a site chosen by the local community. ODA's involvement is not confined to the permitting process. The agency has been very active in finding workable solutions that bring economic development to an area by recruiting dairies.
If dairy operators can continue to demonstrate their ability to be environmentally-friendly, the challenge of locating near communities will be less daunting-even though some residents simply will never accept living next to a dairy. The industry will need to get out the message that dairies can be assets.
"We need to make sure the community is comfortable before a yard of concrete is ever poured," says Faber. "It might take a bit more time to develop a relationship with the community, but it will be worth it."
It's also a two-way street. ODA Director Coba sees opportunity on the horizon.
"Now is an excellent time for local communities to reach out and embrace potential new neighbors and business opportunities by educating themselves about Oregon's dairy industry, and how environmentally proactive our dairy producers truly are," she says.
The industry believes it has an excellent story to tell, whether 50 cows are being milked or 20,000. It is time to begin communicating.
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| Board of Agriculture subcommittees press forward |
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As part of its relatively new role as a policy making body, the State Board of Agriculture continues to make progress in several areas of interest. Subcommittees have been formed in four key policy areas: Government Relations, Land and Water Use, Marketing, and Technology. Below are summaries for each subcommittee:
Government Relations: Of immediate interest to the subcommittee is the Oregon Department of Agriculture's budget proposal and legislative concepts. ODA budget issues include a request for additional staff to handle emerging and important issues to the industry such as water quantity, air quality, sustainable agriculture certification, local farm and nutrition, Brand Oregon, and renewable energy. Potential fee increases for various ODA programs have also been reviewed by the subcommittee, which has recommended support by the full board for ODA's proposed budget and legislative concepts.
Agricultural labor remains an area of focus for the subcommittee. The full board has been asked to facilitate meetings of various commodity groups to help deal with significant anticipated worker shortages for next year with the idea of better coordinating an available pool of employees. The subcommittee fully expects collective bargaining issues to be discussed in the upcoming legislative session.
The subcommittee is also overseeing the development of a biennial report on Oregon agriculture to be submitted to the Oregon Legislature when it convenes in 2007. That report is being drafted by ODA staff.
Land and Water Use: The subcommittee has proposed policy statements that support a sustainable water supply for agriculture in Oregon. That includes a more comprehensive approach to addressing water supply issues around the state so that agriculture is a prime consideration in future decisions. The subcommittee also supports efforts to assess and evaluate existing and future water needs in Oregon. The proposed policy statements will be considered by the full board in its December meeting.
The subcommittee is also following with interest deliberations by Metro, the regional government of the greater Portland area, on future acquisition of land for open spaces. Metro has indicated a willingness to consult with agriculture officials before purchasing land in the future.
Marketing: The subcommittee continues to monitor the Brand Oregon statewide marketing effort and how the Board of Agriculture might assist in promoting more of the industry through that effort. Sustainable agriculture and certification efforts also continue to be discussed by the subcommittee. Of growing interest are farmers' markets and community supported agriculture. The subcommittee is also tasked with monitoring the status of the US Farm Bill and supporting efforts to get more assistance for non-program commodities.
Technology: Members of the subcommittee have been heavily involved in helping draft a proposed biopharm policy statement as directed by the governor. That draft statement calls for no ban on biopharming in Oregon but a preference that test crops be grown indoors, for the time being.
The subcommittee also recommended full board support of legislative funding for canola research at Oregon State University. With growing interest in canola production for oil, there is a need for more information on the impact of canola on specialty seed crops and the development of alternative crops to canola.
All four subcommittees will continue meeting in the weeks to come and report back to the Board of Agriculture at its next meeting in Portland, December 6-7.
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| Director's column |
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Editor's note: The following column also appeared in the August 2006 edition of the Salem Business Journal.
One of the many interesting things I get to do as director of the Oregon Department of Agriculture is participate in governor trade missions to promote agricultural products in markets throughout the world. This summer, Governor Kulongoski led a very aggressive one week trade mission to South Korea and Japan. We spent a whirlwind two-and-a-half days in Seoul and another busy two-and-a-half days in Tokyo. An Oregon delegation of over 50 individuals was charged with promoting Oregon exports, attracting direct foreign investment to Oregon, and highlighting Oregon as a tourist destination for foreign vacationers. On the whole, the mission was very successful.
Seven of us comprised the agricultural delegation. We had meetings with producers, retailers, trading companies, and QVC -a Japanese home shopping network. We conducted a menu promotion for Oregon seafood and berries in a South Korean high-end hotel; toured Tsukiji Market, one of the world's largest fresh fish markets; toured a perishable air cargo facility, conducted media interviews; and met with US Embassy staff. In addition, the agricultural delegation participated in receptions with the governor and key trade, business, and tourism contacts in the two markets.
For Oregon agricultural products, the Japan market continues to be our largest overseas market with South Korea not far behind. Both are fascinating and unique markets and will continue to be very important trading partners for Oregon agriculture in the foreseeable future. For that reason, it is very important for the Oregon Department of Agriculture to have a consistent and visible presence in those markets on behalf of our industry.
Probably the most interesting thing about the South Korean market that we learned on this trip was the new focus on food products that are natural, sustainable, or organic. There seems to be a strong new interest in "healthy" foods in South Korea. Oregon is particularly suited to provide these kinds of products for this market. In addition, there is a real shift away from the previous popularity of fast food restaurants, like McDonalds and Kentucky Fried Chicken. The new popular restaurant in South Korea is the family dining type restaurant. We saw an Outback Steakhouse Restaurant that is an example of the type of eating establishment that is growing in popularity.
The Japanese market continues to be a very high-end market for Oregon agricultural products. Interestingly enough, in a meeting with Nike Japan, they indicated that Tokyo is now considered the most fashion conscious city of all major cities in the world and Japanese consumers are willing to pay extremely high prices in order to obtain the newest fashion trends. This continues to bode well for high quality and high value Oregon products in this market. On one of our store audits, we saw a container of approximately 90 Rainier cherries, evenly matched and perfectly aligned that was selling for $105 in US dollars. Needless to say, we didn't purchase them but waited until we arrived back in Oregon to buy a similar number of cherries for closer to $10!
And finally, we explored a potential new opportunity with QVC, which is a very popular home shopping network in Japan. This could be a venue for producers of high quality Oregon products to get smaller quantities of product into a lucrative market. We will be having follow up conversations with QVC to explore Oregon products that could be sold on their network.
All in all, this governor's trade mission was as interesting and exhausting as many of the others that I have participated in! They are always great opportunities for Oregon agriculture to continue learning about our international markets and where we might have new possibilities. They also provide venues to network with and educate fellow Oregonians about the agriculture industry and the important economic role it plays both locally and internationally. And finally, it's always beneficial to have the state's governor help market Oregon agriculture.
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| Mountain top paradise |
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| Members of the Parrett family harvest hops, circa 1900. |
By Madeline MacGregor, ODA Information Office
Traveling to Parrett Mountain requires a winding detour through Wilsonville-past schools, condominiums, convenience stores and upscale horse farms. Within three short miles, the line of demarcation between urban and rural is sudden. Mature filbert trees shade each other in neatly pruned rows. Hay fields, pear orchards, and nursery operations line the highway.
After navigating a steep turn to the right, another to the left, and climbing slowly up a gravel drive, Parrett Mountain road circles lazily to a bucolic, old-world farm. Identified by its' colorful Century Farm sign, the Parrett family house and gardens entice the visitor to stop and explore.
Crystal Dawn Smith Rilee celebrates her 91st birthday this year. Rilee, a proud descendent of early Parrett pioneers, tells me that on a clear day, you can see the gold statue on top of the Capitol Building in Salem. Across the road from a knee-deep grass-field, her property overlooks most of the northern Willamette Valley, and well beyond to snow-capped Mt. Hood.
Crystal and her granddaughter Elizabeth Rhode, oversee the leased operations of Parrett family farmland, an approximately 400 acre portion of the original 650 acres deeded to the family in the 1800s.
The land came to Crystal and her family with a heavy price. The original homestead house burned to the ground in 1923. Crystal's mother, Ella, attempted to smother the fire on her own without calling the men in from the fields. As flames shot through the roof, seven-year old Crystal persuaded her mother to let her telephone a neighboring Parrett.
Careening down the mountain in his classic Maxwell (one of the only cars available in the area), cousin Fred managed to remove several pieces of furniture from the house. Crystal was able to grab a kerosene lantern and carry her toddler brother to safety, one mile uphill from the burning residence.
With the onset of the Great Depression, financial hardship challenged the Parretts as it had most of the nation's farmers. In 1932, Crystal's father John Smith and his brothers were heavily invested in strawberry and blackcap production. When processors lacked the funds to purchase the crop, over 100 acres of berries rotted in the fields. Crystal still remembers the odor, as the fruit turned to sugary compost.
Misfortune struck once again when the Parrett farm claimed Crystal's husband of 54 years. Bob Rilee was killed in a tractor accident at the age of 92. However, nothing stopped strong-willed Crystal, as she moved forward with plans to preserve her land for one purpose: farming.
"I want to keep the land so that people cannot build million dollar homes up here, and so that it can continue to be farmed like it was back in the 1900s," Crystal maintains. Her blue eyes settle on lilacs swaying in the breeze outside her window. "I want to make it available to groups, like schools and woodworker's associations, and keep a working garden, a greenhouse, chickens, turkeys, goats, and hogs."
Crystal first started recording Parrett family history when she was just a young girl in the sixth grade. After an appendicitis attack at the age of 14, she was hospitalized for two weeks. She began to scribble on bits of paper, and keep a diary. Writing came naturally to her; she even reported on Parrett Mountain events for several regional newspapers.
Crystal's inclination towards writing and investigating lent itself to her 75-year occupation as family historian. With the honorable distinction of being the last Parrett born on the mountain, Crystal has meticulously collected family artifacts, photos, clothing, and correspondence. The remodeled Parrett Mountain Schoolhouse that Crystal purchased in the 1950s hosts the collection. Among the neatly assembled vintage objects is a much-prized Underwood-the same typewriter Crystal used when she reported for the Newberg Graphic.
Rilee's memory about the details of family farming may have faded somewhat, but she remembers clearly that her father hired his brothers to help during harvest, at the grand wages of one dollar a day. The brothers plowed and harrowed wheat, oats and barley.
The Parrett men also ran a large hop operation. Hops were the mainstay of their farm in the early years. Like many homesteads of the time, Parrett women had roles that were more traditional. From a nearby creek they hauled water and then heated it in huge iron cauldrons-scrubbing their laundry clean. They planted large kitchen gardens, and gathered eggs. Ella Parrett in particular, was well known for her skills in the kitchen. Crystal says that visitors came from miles around, to sample her mother's culinary delights. For a farming operation that encompassed 600 acres in the early 1900s, a woman's work inside the house was as integral to a farm's success as men's in the fields.
Like many children of the period, Crystal found herself working outside of the home to save the farm. "Out in the world," muses Crystal, is where she began to formulate her plans to reclaim as much of the Parrett land as possible.
When her Navy husband retired from active duty, Bob concentrated on hog farming while Crystal worked in government service. Her much needed, off-farm income empowered the hardworking couple to buy neighboring lots from other Parrett heirs. As the years passed, much of the original Donation Land Grant acreage, farmed by her great-grandparents in the 1850s, was brought back into the fold.
"At best," says granddaughter Elizabeth Rhode, "their lives centered on subsistence living." The mountain provided timber, hay, crops, and meat when finances were lacking, yet the Parrett's never focused on their poverty. "Crystal sacrificed her life for this place," Elizabeth points out. Rilee's Spartan lifestyle helped to create a legacy of well-tended agricultural land that has, in turn, become a precious endowment to future generations.
According to the mission statement of the Crystal Dawn Smith Rilee Foundation (organized to preserve the Parrett family farm for public and educational use) the goal is to "Provide the general public a turn-of-the-century Oregon farm, as well as protect 400 acres from encroaching urban development."
By working with consultants, Crystal and Elizabeth are planning to attain self-sufficiency for the property by offering membership in the Foundation; providing fee-based day-use areas; creating a farm fresh egg and produce stand; restoring existing farm buildings; maintaining educational trails; and, refining working agricultural exhibits.
As the recently formed group states in its hopeful brochure, the family is "helping to ensure that a vast area of Parrett Mountain will forever be preserved as an oasis of peace and tranquility-where the past is remembered and opportunity is built by observing the past." For more information on the Crystal Dawn Smith Rilee Foundation, please contact Elizabeth Rhode, 503-625-9650 or e-mail earhode1@aol.com .
2006 Century Farm and Ranch awards ceremony
The Oregon State Fair hosted this year's Century Farm & Ranch awards presentation. Members from 15 families were in attendance, and celebrated their century-long history, of family farming.
Families honored were presented with certificates signed by Governor Kulongoski and Oregon Department of Agriculture (ODA) Director Katy Coba. Recipients were congratulated on stage with handshakes from representatives of ODA, the Oregon Farm Bureau, and the Oregon Historical Society.
The program and refreshments brought smiles to toddler and grandparent, alike. Roth's Grocery donated two giant cakes that resembled the program's roadside signs. The non-edible, metal program signs are provided to the families through a special grant from ODA.
The following families earned recognition for 2006:
- Agnes and Charlie Doherty, Umatilla County
- Boyd and Sheree Follett, Union County
- Wayne Morin, Donna Jenkins-Morin, and Waynette Morin, Baker County
- Donell J. and Mary F. Smock, Umatilla County
- Larry and Paula Bangs, Lane County
- Vernon and Penny Bruck, Clackamas County
- Lila and Jim Elliott, Clackamas County
- John H. and Patricia McGhehey, Yamhill County
- Robert and Ryan Mahaffy, Coos County
- Wilbur A. Olson, Don and Denise Olson, Clackamas County
- Fay Samuel (Sam) Pambrun, Jr. and Dottie Pambrun, Umatilla County
- Barbara F. Skinner and Carol A. Fery, Linn County
- Stephen Unger, Washington County
- Irv, Joan & Edith Wettlaufer, Clackamas County.
ODA wants to publish your century farm or ranch story. Please contact Madeline MacGregor, in the ODA Information Office: 503-986-4758, or e-mail: mmacgreg@oda.state.or.us
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| Oregon net farm income shows healthy five-year gain |
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Largely due to a tremendous increase in expenses, Oregon farmers and ranchers, on average, made less money last year than in 2004, but still recorded a much better bottom line than they did from 2000 through 2003. Newly released statistics show Oregon's net farm income in 2005 at $1.05 billion-an increase of 142 percent from 2000, but that does not necessarily mean Oregon agricultural producers are making money hand over fist.
"The numbers are down from what turned out to be a good year in 2004, but the overall health of the industry is much better than it was earlier this decade and in the late nineties," says Katy Coba, director of the Oregon Department of Agriculture. "As diverse as our state's agriculture is, some farmers and ranchers are doing well while others are still struggling mightily. The net farm income is an average number, and we need to recognize not everyone is making money. Still, the figure is encouraging."
Net farm income is the amount retained by agricultural producers after paying all business-related expenses. It is considered an important indicator of the agricultural economy's overall health. Statistics provided by the US Department of Agriculture's Economic Research Service show a drop from 2004's record high $1.3 billion net farm income. Still, 2005 witnessed Oregon's second highest net farm income recorded by USDA, making it a relatively good year.
Farm profits have seen highs and lows in Oregon the past three decades. Net farm income bottomed out in 1983 at $283 million. In 2004, a record high overall value of production for Oregon crops and livestock pushed net farm income over the one billion dollar mark for the first time. That high water mark has started to recede this past year as farm expenses take a bigger bite out of the bottom line. Nonetheless, the trend is definitely up even though officials warn against painting all farmers with the same brush. Some producers are hurting, others are doing relatively well.
Oregon agriculture's balance sheet basically contains a "plus" side and a "minus" side. The "plus" side consists of the production value of crops and livestock along with various additional revenues. The numbers for 2005 are a mixed bag. Grain production value dropped 16 percent last year due to low wheat prices. There was also a slight but noticeable decrease in the value of Oregon's dairy production. On a positive note, beef prices increased this past year as did the production value of various fruits and vegetables. It was also another good year for Oregon's top agricultural commodity, nursery products.
The overall production value of Oregon's agricultural sector increased six percent in 2005 to $4.7 billion, according to the USDA statistics.
On the "minus" side of the balance sheet are the expenses incurred by Oregon farmers and ranchers. That overall figure-an increase of nearly 22 percent at more than $3.2 billion-outstripped the increase in value of production, leading to the drop in net farm income in 2005.
Fertilizer costs increased at an overall rate of nearly 30 percent. Pesticide costs went up 14 percent, fuel oil up 25 percent, and electricity up 67 percent. Over the last five years, those inputs have risen 45 percent in aggregate.
Farmers and ranchers are facing the same increase in energy costs that impact all Oregon consumers. It costs everyone more to run a gas-powered engine or to heat the home. Much of the time, those increased costs cannot be passed on by the farmer to the consumer, although some items are costing more at the retail level, due to wholesale, transportation, and marketing costs.
Wages paid remains at the top of the list of expenses for farmers and ranchers, with more than $850 million paid to workers by farmers. Last year, employee compensation increased 11 percent.
An overall net farm income increase the past five years of 142 percent sounds good, but it is a misnomer to assume that Oregon farmers and ranchers are generally getting rich. The USDA statistics do not account for principal payments on land purchases, family living expenses, or family health insurance. Also, cash received by the producer is often put back into the operation for equipment, buildings, and other essentials of the business. Producers have also seen an increased cost to meet environmental and regulatory obligations. Most of these expenses come out of the farmer's net income.
While the trend is definitely up, what has happened with net farm income the past few years is no guarantee for 2006 and beyond. USDA preliminary estimates for 2006 show a further decline nationally.
"We must remember this is a snapshot in time," says ODA analyst Brent Searle. "Things could turn significantly downward. Prudent farmers, if they have available reserves, will bank those for times when they need the money. In general, things look okay for Oregon agriculture today, but you never know what's around the corner."
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| Farm Bill discussion comes to Oregon |
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| Katy Coba talks with Sen. Chambliss after Farm Bill Hearing |
Oregon's agricultural producers got a rare chance to sound off on federal policy-and on their own turf-as the US Senate Committee on Agriculture, Nutrition, and Forestry held its first ever Farm Bill Field Hearing in Oregon. Only eight such hearings have taken place this year across the country, and Oregon producers took advantage of the opportunity to comment on what should happen as a new 2007 Farm Bill is put together. With such a diverse agriculture industry in Oregon, there was no true consensus on changing provisions of the current 2002 Farm Bill. One thing all participants could agree on-it was a good sign that the Senate Committee chose to come to Oregon and listen.
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| Pesticide Use Reporting System getting closer to grand opening |
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It won't be long before the switch will be thrown for the long-awaited Pesticide Use Reporting System (PURS) in Oregon. Development of the electronic reporting system has steadily continued and a "preview" of how it will work is expected to become available by November.
Everything is on schedule for pesticide users to begin reporting online starting in January 2007.
The Oregon Pesticide Use Reporting System will collect, summarize, retain, and report information on pesticide use by all categories of users-from agricultural users to urban residents. Homeowner use information is currently being collected through a survey. Other pesticide users will need to report electronically to ODA's Web site. PURS will provide statistically valid information on what pesticides are being used in Oregon, in what quantities, and generally where they are being applied. The law, originally passed in 1999, requires each pesticide user to report at least once a year. The collection of data will climax with a yearly statewide report issued by ODA.
Pesticide users don't need to do anything yet. But at the start of next year, they will need to keep records of their pesticide usage for 2007 and electronically report it no later than January 31, 2008. Many users may choose to report at the end of each month rather than every time an application is made.
Before the end of the year-with November the likely date-the actual online system will be available for users to practice filing reports. Then, in January, the system is expected to begin accepting reports for real. All information entered during the preview will be deleted before January 2007.
Meanwhile, the Web site has new features worth exploring. The site now offers county-by-county water basin maps among other features. Users will be reporting the location of their pesticide applications by water basin or zip code.
Detailed information on pesticide use will be provided to the Oregon Department of Agriculture, but the identities of individual pesticide users will remain confidential. Administrative rules state that access to reports generated by ODA will be given to "...a health or environmental researcher acting in an official capacity from an accredited university or accepted research institute." Protecting the identity of individual pesticide users has always been a key issue in establishing a reporting system.
A new PURS brochure will soon be available for groups and individual users to help them get familiar with the system. Staff from ODA's Pesticides Division is also available to do presentations and demonstrations of the new online system to user groups.
For the latest information on the Pesticide Use Reporting System, go to http://oregon.gov/ODA/PEST/purs_index.shtml or call the Pesticides Division at 503-986-4635.
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| Golden Arches says thanks to Oregon agriculture |
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| Bob Hale & Katy Coba at McDonald's Grower Appreciation Days |
Oregon patrons of one of the world's most popular restaurant chains are learning something they might not have realized before-local farmers are largely responsible for putting many of the items on the McMenu. Any public image of McDonald's being too large to care about local agriculture is being swept away with campaigns such as the first-ever "McDonald's Grower Appreciation Days" this summer. The fact is practically every food order at a Pacific Northwest McDonald's has area growers to thank.
"It takes the best potatoes in the world to make the best French fries in the world," says Hermiston grower Bob Hale, who was on hand at one of four special events at locally-owned and operated McDonald's-this one in North Portland. "Our farm is proud to be associated with McDonald's and honored to participate in these events."
Hale says much of the Columbia Basin's agriculture was "built on the back of McDonald's" largely through relationships established between the corporation and area potato processors Lamb-Weston and J.R. Simplot. With McDonald's needing high quality product, growers in Oregon, Washington, and Idaho have filled the demand, at least for the Pacific Northwest McDonald's. To date, McDonald's annually purchases more than 619 million pounds of potatoes, 26 million pounds of apples, and 2.5 million pounds of onions from Oregon and Washington farmers. Those purchases add up to about $58 million from just one company-the Golden Arches.
To help educate customers, McDonald's not only held specific celebrations in Portland, Corvallis, Junction City, and Redmond-complete with Ronald McDonald and Miss "Ima" Blueberry-more than 170 restaurants in Oregon and Southwest Washington displayed posters and bag stuffers with information about the local ag connection. The special events culminated with a presence at the State Fair in Salem in partnership with the Agri-Business Council of Oregon.
"Much of our agriculture would not look the same if it wasn't for food service operators like McDonald's and others who source large amounts of Oregon product," says Dalton Hobbs, assistant director of the Oregon Department of Agriculture. "It's no accident that companies like McDonald's look to Oregon because we are able to consistently produce a high quality product. Whether menus change or stay the same, Oregon's reputation for quality will continue to play an important role in the future."
McDonald's support for Oregon agriculture extends beyond the food that is served. The corporation has helped back education programs such as "Ag in the Classroom" and "Ag Fest," noting that those programs provide tools for kids to learn where their food comes from as well as where it ends up.
Chances are, some of that Oregon agriculture is destined for the Golden Arches.
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| Central Oregon a hot spot for gypsy moths |
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A residential area of Bend in Central Oregon is more than likely going to get a lot of attention next spring as the Oregon Department of Agriculture makes plans to eradicate gypsy moth in 2007. This summer's detection efforts trapped nearly 60 gypsy moths in a neighborhood where a higher-than-normal density of traps were placed due to the detection of a single moth in the area last year. Survey technicians also recovered live female gypsy moths and egg masses-solid evidence that a breeding population of gypsy moths has been established in the area. While no definite plans have been made and not all traps throughout the state have been returned, it appears that a gypsy moth spray project will be proposed for next spring in the area of Bend where the insect pests have been trapped.
Other locations of gypsy moth detections this year include Shady Cove in Jackson County, Cave Junction in Josephine County, the Josephine County community of O'Brien, Eugene, Damascus, and three separate locations in Portland. Also detected was an Asian gypsy moth near St. Helens. The Asian gypsy moth represents a bigger challenge in that the female moth can fly, which is not the case with its North American cousin.
For only the third time in 26 years, there were no gypsy moth eradication projects this past spring. With projects looming in 2007, it should revert to a more normal year in Oregon.
Early detection and eradication of gypsy moth infestations are goals of the Oregon Department of Agriculture to prevent economic and environmental losses to Oregon, either by restrictive quarantines on commodities or by the loss of foliage and even trees due to expanding gypsy moth populations.
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| Liskey farm displays diversity, stewardship |
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| Tracey Liskey stands in greenhouse on family's operation. |
By Ellen Hammond, Eric Nusbaum, and Stephanie Page
It's not a stretch to call Tracey, Vickie, and Rocky Liskey's Klamath Falls area farm an oasis. In the middle of Oregon's high desert, hanging baskets of brightly colored annual flowers fill the Liskey siblings' greenhouses and cattle graze on lush green irrigated pastures. Underlying the beautiful setting are the Liskeys' ongoing efforts to diversify and a strong commitment to natural resources stewardship.
The Liskey family has farmed and ranched on their land in the Lower Klamath Lake area since the 1930s. They produce grass and alfalfa hay on some of their fields and graze 300 cow-calf pairs. They have also diversified their operation to include nursery plants, and also lease out part of the property for fish and row crop production.
"Our operation is definitely diverse," Tracey Liskey says. "The importance of diversity is a key lesson that we re-learned during the 2001 water crisis."
The Liskeys responded to the water crisis by implementing several water conservation and water quality improvement measures on their grazing and hay lands. Many of their fields used to have irrigation ditches running through them. The ditches were up to 40 feet wide and livestock had unlimited access to the ditches. "Out of 400 acres, I'd estimate that 60 acres were lost in these ditches," Tracey Liskey says. "There were also potential water quality concerns from the animal access."
The Liskeys worked with the Klamath Soil and Water Conservation District and USDA Natural Resources Conservation Service to fill in the ditches, fence off some of the laterals, and convert from a flood-irrigation system to a center pivot sprinklers. Pastures are cross-fenced into three paddocks and cows are rotated through with two weeks on each paddock followed by four weeks of rest.
"We have increased our electricity use by converting to pivot irrigation," Liskey says, "But slightly more acreage is now usable for grazing because of the filled in ditches and the sprinkler system is much more convenient." Liskey, who serves on the Local Advisory Committee for the Lost River Agricultural Water Quality Management Area Plan and Rules, is also proud of the public and natural resource benefits of his more efficient irrigation system, having little to no run off from the pasture land.
Another example of efficiency on the Liskeys' farm comes from the nursery and fisheries sector of the business. Thanks to their property's unique geology with geothermal wells with temperatures of 195 to 199 degrees. The Liskeys have used geothermal energy to heat the nursery greenhouses and use the tail water to heat ponds for tropical fish and keep water open for the cattle in the winter.
The Liskeys' nursery business began in the 1970s when they began growing forestry seedlings. Fifteen years ago, they decided to try selling retail flowers.
"To our shock, we sold out in three weeks," Liskey remembers. The nursery business has grown steadily every year, with sales now ten times they were when they began. The Liskeys have moved their sales center from their home place to an outlet in Klamath Falls, and also deliver plants to major customers. The business continues to be strictly retail, with sales to businesses, individuals, and the City of Klamath Falls.
Despite the business' success, Tracey emphasizes that both the nursery and cattle industries are volatile. The family continues to pursue diversity in their operation, and is currently working on renting land and water for a biofuel and vegetable facility. "Having several businesses spreads out our risk in any one year," he says. "We hope that at least one sector will be profitable."
One sure thing is that the Liskeys' stewardship will continue providing natural resource benefits, year after year.
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| Canola gets a closer look as an oil crop in Oregon |
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Editor's note: The following is a news release written and issued by Peg Herring, Oregon State University.
Scientists from Oregon State University's College of Agricultural Sciences are working with Oregon Department of Agriculture to help inform ODA's decision-making on growing canola as a feedstock for biofuels in Oregon. ODA is working to identify funding options to assist the OSU research and extension to examine the potential for canola and other alternative crops for biofuels in Oregon.
Interest in growing canola for biofuel is increasing rapidly in Oregon, as is the nationwide interest in alternative fuels. As Oregonians search for home-grown sources of energy, canola offers potential as a high-producing oilseed for biofuel and as a crop well-suited to growing in Oregon. However, without safeguards in place, canola may also pose potential risk to established and relatively high-value specialty seed and vegetable production industries in some parts of Oregon.
A preliminary fact sheet based on findings from both new and long-term research by OSU scientists outlines some of the potential advantages and challenges, as well as areas where more information is needed related to producing canola for biofuel. The fact sheet is available on the College of Agricultural Sciences Web site at http://agsci.oregonstate.edu/research/information.html .
For several years OSU researchers at the Columbia Basin Agricultural Research Center in Pendleton have studied cultivars of canola and methods of growing them in eastern Oregon, particularly as a rotation crop with wheat. Further breeding studies are ongoing in collaboration with the University of Idaho.
In addition, OSU researchers have conducted limited cultivar trials of canola and other types of oilseed crops at OSU's Hyslop Research Farm in Corvallis and at the Central Oregon Research and Experiment Center near Madras. These studies accompany a large body of research on many other crops undertaken by researchers in OSU's College of Agricultural Sciences, Agricultural Experiment Station, and Extension.
Oregon growers in the Columbia Basin have been growing canola as a rotational crop with dryland wheat for many years. Currently there are about 3,000 acres of canola grown in eastern Oregon, most used for oil or foundation seed stocks for Canada. Willamette Valley growers produce canola on a small scale (currently about 30 acres) for foundation seed.
According to ODA, growing canola for oil on large acreages in areas with existing vegetable and seed production requires particular attention to avoiding potential risks to those industries. Therefore in 2005, ODA established protected districts where canola production is prohibited except under special permit, in order to minimize undesirable cross-pollination, disease and pest buildup, and establishment of volunteers. Protected districts include the Willamette Valley, parts of Central Oregon, parts of northeastern Oregon, and a three-mile strip along the Idaho border in Malheur County.
ODA's restrictions in protected districts will be reviewed in 2007. Until then, OSU will continue to provide ODA with scientific information about canola and other oilseed and biofuel options in Oregon.
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