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The Agriculture Quarterly
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Issue 371, Fall 2008
Back to school, pushing local foods forward
Board of Agriculture builds bridges to conservation community
Director's column
Valley harvest
Six families celebrate 100 years of farming
Oregon nurseries help themselves in protecting against sudden oak death
Net farm income in Oregon up 50 percent
ODA walks the talk when it comes to sustainability
Nursery energy efficiency measures save money, earn Salmon-Safe certification
Loan limits increase for direct operating and farm ownership loans
State Fair is "easy as pie" for the Governor
Announcements
Alternative file formats
Back to school, pushing local foods forward
Photo: Sarah Masoni and Cory Schreiber work on salad dressings
Sarah Masoni and Cory Schreiber work on salad dressings
By Bruce Pokarney
 
While most kids in Oregon were absent from the classroom, as they normally are during the summer months, a handful of dedicated public servants and private individuals spent the time making progress in bringing more local food products into the state's school system. The farm-to-school wave is sweeping the country and is beginning to make quite a splash in Oregon, where there has been a great deal of activity the past several months.
 
"I'm more confident than ever that our schools will be offering more high quality fresh and processed foods from Oregon in the months and years to come, and that it's a priority for Oregonians to make that happen," says Katy Coba, director of the Oregon Department of Agriculture. "There are many efforts out there on many levels that suggest our state can be a leader and a model for the farm-to-school movement nationwide."
 
For many Oregon children, school meals are the primary source of food and nutrients on a daily basis. According to the Oregon Department of Human Services Center for Health Statistics, only one-fifth of Oregon's children consume the recommended daily amount of fruits and vegetables. If farm-to-school and school garden activities can get firmly established in the schools, the health and well being of Oregon's youth will be served-along with nutritious local food.
 
It's hard to find anyone who doesn't see the value of getting more locally-produced foods into Oregon schools. The trick is making it happen. Conversation, collaboration, and coordination are combining this fall to turn the concept into reality.
 
Creating opportunities
Schools, farms, food processors, and garden programs are building alliances to create opportunities for more Oregon foods in Oregon schools. ODA and the Oregon Department of Education (ODE) have both established full-time positions to coordinate these efforts. Non-governmental organizations and other interested parties are catalyzing the movement. A coalition of nearly 70 individuals and organizations has put in time and effort the past three years towards defining, assisting, and supporting farm-to-school activities in Oregon. The hard work is paying off.
 
"Oregon is ahead of the national curve because volunteers, teachers, schools, students and administrators care so much about local agriculture, healthy foods, and community connections," says Cory Schreiber, manager of ODA's Farm-to-School Program.
 
Schreiber, an-award winning and well-known Portland chef who came to ODA late last year to head up the agency's farm-to-school efforts, is currently focusing on program development, farm links, and tracking the purchase of local foods by schools. He is also responding to districts that have specific needs for the current school year.
 
Earlier this year, the Oregon Department of Education filled a counterpart position provided by the legislature that will greatly expand the capacity of the state to help schools. Joan Ottinger is working with Cory Schreiber to help school districts identify and use local Oregon food products. Ottinger is also coordinating school gardens that provide produce and an educational opportunity for kids to appreciate what it takes to grow food.
 
"We want to provide easy access to the tools teachers and families need to grow successful school gardens," says Ottinger. "Gardens are outdoor classrooms for teaching math, science, nutrition, and art. Children love to eat the veggies they grow themselves."
 
Food for thought for the kids who participate in the 47 million school lunches and 22 million school breakfasts served in Oregon each year.
 
More dollars = more local food
Thanks to the generosity of the Kaiser Permanente Community Fund at the Northwest Health Foundation, some 2.6 million meals consisting of more Oregon grown and processed foods will be served this year in Portland Public Schools and the Gervais School District of Marion County. The grant, secured by Ecotrust's Food and Farms Program, is an example of what is possible when additional money is directed to farm-to-school efforts.
 
The $290,000 Kaiser grant expands the Harvest of the Month Program, which focuses on specific fruits and vegetables grown locally. Colorful posters and classroom activities tie the featured foods with learning. Parents are also encouraged to follow along with the Harvest of the Month calendar and purchase the same foods from local grocery retailers to serve at home. Portland Public Schools is serving an entire meal with locally-sourced foods one day each month.
 
In preparation for the new program, Portland and Gervais school food service directors literally spent months in the field forging relationships with local farmers willing to grow fresh, seasonal fruits and vegetables for harvest during the school's calendar year, or frozen in peak season, in the case of Oregon berries. They also contacted Oregon food manufacturers capable of developing specialty items using local ingredients for lunches.
 
"Portland is the first large, urban school district in the country to make such substantial gains in the farm-to-school programming," says Kristy Obbink, Director of Nutrition Services for Portland Public Schools Nutrition Services. "This process has inspired us to incorporate local ingredients in products that we use every day, such as Northwest-grown wheat in almost all of our baked goods."
 
As part of the Kaiser grant, a six-month study is underway to measure the impact of serving fresh seasonal produce and locally processed foods to kids, and how that affects the local economy. Data from the study will come in handy when the 2009 Oregon Legislature convenes. Lawmakers will be asked to provide state funding for school lunch and breakfast programs. Oregon is one of a handful of states that currently does not contribute additional funds for such meals.
 
"I think the proposal is important for Oregon agriculture," says ODA's Schreiber. "If school food service purchasing administrators get the 7 cents per student for breakfast programs and the 15 cents for lunch programs-money earmarked for Oregon agricultural goods-that is a great boost to our local farm economy. This includes cutting back on the cost of transporting foods that travel great distances to get here."
 
The requested package adds up to $22,580,000 in general funds and provides grants for complementary food and garden-based education open to all Oregon schools.
 
Survey says
To know where you need to go with farm-to-school efforts, it helps to know where you are. ODA is using the results of two surveys to determine the awareness and ability of schools and the agriculture community to match up with each other.
 
A survey of Oregon schools completed earlier this year delivered good information about food service buyers and their current practices in purchasing, preparing, and serving local foods. Nearly half of those who purchase food for Oregon schools don't even know whether they have an option to buy from local sources. The statewide survey showed most purchasers don't make it a priority to buy local. But there is plenty of potential to change that around, according to Schreiber, by simply educating food service buyers that they have an opportunity to buy local.
 
A survey of food processors is near completion. Schreiber says the survey suggests key interest in the processing of foods for the school market.
 
"Many Oregon processors provide basic items like canned fruits and vegetables, baked goods, and dairy products that are used in schools," he says. "The need for local products exists. The question is whether the schools are able to afford them. If the state funding request is approved, providing the 7 cents for breakfast and 15 cents for lunch, it will open up a whole new opportunity for Oregon processors and schools."
 
Some districts and processors are already working out deals. Last year, Portland Public Schools purchased thousands of blackberry and cherry cobblers with product provided by Willamette Valley Fruit Company and processed by Truitt Brothers, both of Salem. It was considered a significant sale of value-added products from Oregon.
 
"It's fun to know that the product is going to benefit children," says Jeff Dunn, sales manager of Willamette Valley Fruit. "Hopefully, the Harvest of the Month Program will educate many as to the benefits of local, farm-fresh products and the health benefits of fruit-even when it's in a dessert."
 
Truitt Brothers is also working with Portland Public Schools to create a vegetarian chili that includes local vegetables.
 
There are other exciting partnerships taking place elsewhere in the state. The Ashland School District is working with Sodexo-a major institutional food supplier-to open a portion of the school food buying to local farms. Also part of the collaboration is the Ashland Food Co-op and an independent farm-to-school contractor working with ODA to collect data for analysis.
 
ODA has helped the La Grande School District prepare a grant request of the Northwest Health Foundation to support farm-to-school efforts. The Oregon Potato Commission granted $10,000 worth of educational materials and potatoes to Eugene schools. And the Lebanon School District has already established a large garden program that helps feed half of the district's 4,000 K-12 students. The district is applying for a $40,000 Ford Foundation Grant to support the work.
 
The Food Innovation Center, jointly run by Oregon State University and ODA, is also into the act of creating something for schools.
 
"I am working with Sarah Masoni from the OSU food technology labs on three Oregon fruit-based salad dressings," says Schreiber. "New Seasons Market has interest in selling the salad dressings in their stores and passing the proceeds back so that schools can purchase the same dressing for their salad bars at a reasonable rate for the schools. The Oregon fruits used in the salad dressing are pear, blueberry, and sour cherry."
 
The partnerships exhibited by New Seasons, Truitt Brothers, and many other retailers and processors will go a long way in getting healthy local food into Oregon schools.
 
An eye on the future
Schools, which are in the business of educating, are themselves being taught to take advantage of Oregon agriculture. Schreiber has completed a farm-to-school manual to help schools that want more local foods. While each district has different needs and ability to engage farm-to-school programming, most could use information about fruit and vegetable grants available through the federal government, educational materials for classroom activities associated with agriculture, and product development.
 
An Internet-based data site being developed will bring together farms, chefs, retailers, processors, and schools. The idea is to match up the parties and provide access to local food by building a platform for searching and purchasing local foods.
 
"It is a proposed project that requires research, database building, funding, and an introduction into a growing market that is ready to embrace on-line purchasing," says Schreiber. "Our food purchasing survey made it clear that 80 percent of the purchases by school buyers are done on the Internet. ODA is talking with Ecotrust regarding a collaboration on this project."
 
There are a great many optimists who envision a bright future for farm-to-school efforts.
 
"I think the school lunch program is entering a period that will maintain and reinforce a healthy school lunch foundation for kids in America," says Schreiber. "Helping students practice healthy eating habits at school and helping them make wise food choices will contribute to their positive mental and physical well being in the years to come."
 
As a result, children won't be the only winners. So will Oregon agricultural producers and processors. 

Board of Agriculture builds bridges to conservation community
Photo of panel
The State Board of Agriculture has historically held conversations with industry groups, listening to what agriculture has to say about priorities and key issues. That same courtesy is now being extended to conservation groups-a crowd not always on the same page as agriculture when it comes to natural resource issues. 
 
At the most recent quarterly meeting of the board, a panel of speakers, representing such groups as the Nature Conservancy, Defenders of Wildlife, and the Oregon Environmental Council (OEC), gave its perspective on upcoming legislation and common-ground issues in which collaboration with agriculture might benefit both sides. Invasive species, climate change, and land use are among the more frequently mentioned challenges that could put agriculture and the conservation movement on the same team.
 
"By sharing the views of each community with one another, we hope to jump-start a deeper conversation about respectful, productive communication, and working on the common ground we share to accomplish more together than we can separately," says Allison Hensey, program director of OEC's Healthy Food and Farms Program.
 
OEC and the other groups represented at this summer's board meeting are encouraged by the industry's willingness to sit down and listen. Others associated with agriculture are similarly optimistic.
 
"A number of people recognize that the relationship between production agriculture and conservation groups in 2008 has improved from the beginning of the decade, and I think many people on both sides of the aisle want to see that relationship continue to improve," says Katy Coba, director of the Oregon Department of Agriculture.
 
Board of Agriculture chair Ken Bailey, a cherry grower from The Dalles, has hope that the two communities can work together to help each other.
 
"Finding common ground is much less risky for the future of agriculture than taking an approach of constantly fighting change," says Bailey. "Agriculture is in a constant state of change and should look for opportunities to make changes that will avoid conflicts with the concerns of others. One of the best ways to learn about those concerns is to communicate and work with others to find solutions beneficial to all."
 
Bailey plans to continue earlier efforts by the Board of Agriculture to reach out to various conservation groups and inviting mutual participation. Over the past couple of years, board members have provided several farm tours of their operations to environmental group leaders. That kind of thing didn't often take place in the past.
 
"It is essential that the agricultural community continue to expand and improve the relationships with the conservation community," says Bailey. "Oregon agriculture cannot live in a vacuum and must work well with others in order to have a successful future"
 
Both Bailey and ODA Director Coba don't see the conversations as "giving in" to environmentalists.
 
"We need to recognize we're going to have to agree to disagree in some places, and we are both better off doing so," says Coba. "But we can identify the places where we can work together and make progress. With those two groups working together on key issues, it's a pretty formidable force in Oregon's policy landscape."
 
Oregon agriculture and the state's conservation movement may not see eye-to-eye on everything, but they don't always have to go toe-to-toe when it comes to issues concerning the environment. 

Director's column
Photo of Director Coba
Katy Coba, ODA director
Did you happen to see the September cover story of Oregon Business Magazine? If not, it might be worth your time to check it out. The headline reads "The Return of King Ag" with a beautiful picture of a combine rolling through a golden wheat field in eastern Oregon. It makes me feel right at home! 
 
The article highlights the amazing story of agriculture the past couple of years and the positive impact that agriculture has on Oregon's economy. The story also accurately portrays the risks to the industry which every farmer and rancher out there is acutely aware of. But do you know the thing that I like most about the story? It's the fact that agriculture has the cover story on the front of a prominent business magazine in this state! Perhaps the industry's ongoing effort to "tell its story" is beginning to pay off.
 
There are undoubtedly a number of factors that have raised the public's awareness of agriculture and the critical role it plays in our society. Included on that list would be the recent multiple food safety scares and a strong interest in knowing where one's food comes from; rising food prices; the renewable fuel focus and debate about how much this is contributing to rising food prices; the increase in exports of agricultural products partly due to the low value of the dollar; a strong desire to purchase food locally and to support local farmers and ranchers; the growing recognition of the positive environmental benefits that farm and ranch land provide; and I could go on and on and on!!
 
Oregon agriculture is extremely well positioned to take advantage of these factors. The industry has also come together recently, working with the Agri-Business Council of Oregon, to survey urban Oregonians about their impressions of agriculture in this state. The results of that survey are very positive and again provide the industry with an opportunity to move forward with key messaging about the benefits of agriculture. While there are some image challenges identified by the survey, there is a lot more good will among urban Oregon towards those who produce our food and fiber. That generally good feeling about agriculture gives the industry a chance to make even more favorable impressions with Oregonians if the messages are well thought out and on target. 
 
Too often, we preach to the choir when it comes to agriculture. It is high time to focus more energy to those who don't understand the industry, but seem to be willing to learn.
 
We talk a lot about how agriculture needs to be more active in telling its story. But we also need to be realistic about the fact that the storyteller needs a receptive audience. It is definitely a two-way street. I believe that the public has a strong interest and desire to support Oregon agriculture. Combine that with the industry's efforts to develop strong messages that paint a true picture of what it takes to be a successful farmer and rancher and to raise the wonderful agricultural products that we have in this state. The result is that the time is right to spread the positive word about agriculture and be heard. If the September cover of the Oregon Business magazine is any indication, then "King Ag" is back in more ways than one.

Valley harvest
Photo of wheat harvest
By Madeline MacGregor

Going for wheat
A few miles south of Independence Oregon, Buena Vista Road twists and curls around cornfields, glossy mint, and filbert trees. On a recent warm and sultry evening, I stopped to shoot photos of an early wheat harvest. I put the car in neutral and stepped out onto a triangular patch of gravel at the crossroads between Buena Vista and Hultman roads. My camera shutter clicked briskly as a big red combine stirred the air. Whirring blades cut wide even paths in the grain.
 
A car drove up, the window lowered, and a friendly face said, "You better hurry up and get those pictures because after tonight that wheat won't be there. That's my son out there and he's getting it all in." Sue King's car tires crunched down the gravel drive as the combine lifted its header up from thick wheat stalks.
 
A bumpy ride
Several minutes later, I found myself crossing a two-foot deep drainage ditch separating my car from the field. The young farmer driving the combine stood on its deck and called to me. "My mother phoned from the house and thought maybe I could help you out. Did you want to get a closer look?" Erik King graciously lowered the ladder, and up I climbed into the air-conditioned cab.
 
As we lumbered slowly across the field's borders, Erik apologized for the bumpy ride. "It's because we practice no-till. It doesn't make for a very smooth ride." I reassured him that I could still get the photos I was after. The wheat spiraling into the blades looked like a giant pinwheel of gold. I told him it was a beautiful crop. "Well, the heads were a lot larger last year, but I'm cutting at the right time," he said. "With another one of my fields on the other side of Buena Vista, I waited too long because the stalks were all standing straight up. You want to get them cut while they're still bent over."
 
Mouse nests and slug fests
Rounding a gentle curve in the field, I could see several large dry holes in the sea of ripened grain. Erik told me that mice and geese had eaten their fill of some of his expensive crop. "We're pretty restricted in the types of chemicals we use here, so I've found that mice set up house all over the place. And geese? Well, I'd like to not see them in the valley at all, since we don't use anything chemical to control them." He explained that another pest, slugs, had nearly destroyed his 80-acres of wheat not too long after sowing. Apparently the slimy eaters converged en masse, requiring the King family to take decisive action. "We used regular slug bait, and that worked to control them, but I really thought we had lost the entire thing."
 
Pioneers in the future of farming; the younger generation
Erik is the one child of Sue and Dennis King that chose to carry on farming with his father. At age 31, he is aware that farming could be a vanishing way of life. "I can't believe how many folks in the city don't know the bread they buy in grocery stores has its origins in a field like this," he said. "If our wheat and other food production continues to be outsourced, I'm not sure what I'll do." At current market price for his hand planted field, Erik will sell the wheat at $8.00 per bushel. "What with the price of fuel, that's not as high as it should be." 
 
Since Erik represents less than 5 percent of Oregon farmers under age 35, his generation may be faced with even greater challenges holding on to the family farm. This includes navigating the ever-growing urban-rural divide, where new neighbors fall in love with the beauty of the countryside but have little tolerance for the noise and dust that farming can generate. Resources for young farmers are limited as well, although discussion has begun at ODA to find better ways to support these new "pioneers."
 
If prices for wheat remain in the profit margin, and if Erik's customers do not gravitate to cheaper foreign markets, he may still be able to follow his chosen occupation. "I just want people to know how much safer our US grown food supply is," he says.
 
And those loaves of bread in the grocery store? We can thank Erik and Dennis for their commitment to farming despite problems with pest management, climate change, rising fuel costs, and land development. Marionberry jam on that toast anyone? 

Six families celebrate 100 years of farming
Photo of 2008 CFR award recipients
By Madeline MacGregor

Proud mothers, fathers, grandparents, smiling toddlers and teens, and in some instances, five generations of farm and ranch families, crowded onto the stage at the 2008 State Fair for a special celebration. This year, not only did six families attain century status-but the Oregon Century Farm & Ranch Program also marked its 50th anniversary. ODA Director Katy Coba presented each family with a certificate signed by her and Governor Kulongoski.
 
Two large cakes designed to represent CF&R roadside signs were shared with the audience. The families will receive their actual metal signs in a month or so, through a special donation by ODA to the CF&R program. Roth's Family Markets and the Tillamook Creamery Association provided refreshments for the event.
 
The families and farms or ranches honored this year were:
 
  • Sydney and Rick Blaine currently own Avalon Orchards established 1907 in Hood River County. In 1908 Sydney's grandmother Grace named the farm after the King Arthur legend featuring a mythical island famous for its apple trees and tranquility. 
  • In 1905 William Barnes assumed ownership from the Killian family and founded the Barnes-Campbell Family Farm. William's granddaughter Marjorie and her husband Lloyd Campbell now operate 56 of the original 190-acres. 
  • John Hafner founded Hafner Farms of Sublimity, in 1907. His son John T. was the only child from 10 siblings who stayed on the farm to help his father. The multi-generational Hafners still grow grass seed, and manage 2,200 acres of their own acreage and leased land.
  • Hellberg Farms of Umatilla County was established in the late 1880s and is owned by Leland and Carolyn Hellberg. Leland and Carolyn's daughter Sarah, and her husband Jonathan Wilson are the fifth generation to live on and work the farm.
  • William Stewart planted Hillcrest Orchard's first fruit trees in 1897. In 1908, Reginald Parsons purchased the 200-acre apple and pear orchard. Judson Parsons, Reginald's grandson, has maintained the orchard for over 30 years with help from the rest of the family. 
  • In 1883, Fredrick Peter bought 180 acres near Canby for $10 an acre, and established the Peter Farm. The fourth and fifth generation of Peters, Ernie and his son Jeff, now run the original farm-growing wheat, grass hay, clover, grass seed, and hazelnuts. 
 

Oregon nurseries help themselves in protecting against sudden oak death
Greenhouse photo
Oregon nurseries now have a couple of new tools to proactively deal with the threat of Phytophthora ramorum, the fungus that causes sudden oak death. A grower-assisted inspection program and an online training course both offer voluntary options to go along with the mandatory inspection and certification program conducted by the Oregon Department of Agriculture.
 
"We like both of these programs and feel they can provide additional assurance to other states and federal officials that Oregon is working hard to minimize the threat of P. ramorum," says Gary McAninch, supervisor of ODA's Nursery and Christmas Tree Program.
 
There is much at stake, now that sales of Oregon nursery products has topped the one-billion dollar mark. As much as 80 percent of that plant material leaves the state, making it crucial that P. ramorum does not become an industry-wide problem. Federal regulations require a rigorous state inspection program of all nurseries that ship plants susceptible to P. ramorum, such as rhododendrons and camellias. This includes taking samples for laboratory analysis. ODA also conducts visual-only inspections of nurseries that do not grow the kinds of plants most susceptible to the fungus. There are roughly 2,000 nurseries required to be inspected by ODA each year.
 
"It has been a mighty task these past few years," says McAninch. "The program is very labor intensive. As a result, it is very money intensive. We think there are other tools out there that will help us do a better job of protecting Oregon's nursery industry from P. ramorum."
 
The Grower Assisted Inspection Program (GAIP) empowers nurseries to do their own inspections and adopt management practices that lessen the likelihood of finding P. ramorum and other Phytophthoras on site. GAIP uses a systems approach that is becoming more common within agriculture. The principles of HACCP-Hazard Analysis and Critical Control Points-shift the emphasis of inspection from the end product to the process itself. Key elements of the program include focusing on how the plants are produced and developing an individualized plan to reduce the risk for disease introduction. It is vital to have a plan to manage Phytophthora if it is found at a nursery. ODA inspectors audit the participating nursery to ensure it is following its own plans.
 
Currently, nearly two-dozen Oregon nurseries are voluntarily participating in GAIP and are at various stages of developing their "mitigation manual"-the nursery's game plan for dealing with Phytophthoras. ODA has not yet started auditing those nurseries but is anxious to get started.
 
"We are looking for more nurseries to volunteer for this program," says McAninch. "It would be great if we could get another 50 to participate by next year.
 
The other new program, launched this spring, is an online training course on Phytophthoras, developed and managed by Oregon State University's Extended Campus, in partnership with ODA. The free, non-credit course includes training on the biology of the fungi, including symptoms and diagnosis. It also provides instruction on disease management and the specific regulatory aspects of P. ramorum. For an optional $100 fee, nursery growers can earn a Certificate of Mastery after successfully completing an online exam. A Spanish version of the online course will soon be available.
 
While only a handful of participants have actually completed the exam, many more have at least visited the Web site and presumably have learned something about Phytophthoras.
 
John Aguirre, Executive Director of the Oregon Association of Nurseries, says the course provides essential knowledge for nursery staff to identify symptoms and protect themselves from Phytophthora outbreaks.
 
"OSU's Phytophthora online course is an outstanding training tool and reference source for the nursery professional who wants to understand, prevent and control Phytophthora in the nursery setting," says Aguirre. "Undoubtedly, nursery  growers committed to producing quality plants will want to utilize OSU's Phytophthora online course and certification program."
 
There will be more participants taking the online exam as well as the training course. ODA's Pesticides Division is offering recertification credits for those who want to renew their pesticide license. In addition, nursery workers participating in the Grower-Assisted Inspection Program will be required to complete the online course and exam.
 
With GAIP and the online training course now available, nurseries can help themselves by being proactive when it comes to Phytophthora concerns.
 
To access the OSU Phytophthora Online Course, go to http://ecampus.oregonstate.edu/phytophthora.

Net farm income in Oregon up 50 percent
Overall net farm income in Oregon has never been higher. But expenses for producers continue to rise and are keeping many farmers and ranchers from fully enjoying a healthy profit margin. A newly released economic snapshot of Oregon agriculture shows net farm income at $1.48 billion in 2007-a 50 percent increase from the previous year. The high mark shatters the previous record of $1.21 billion in 2004 and is more than three times higher than the net farm income in 2000.
 
In a state with a diverse agriculture industry like Oregon, the latest numbers can be a bit misleading. Not all farmers and ranchers are seeing big profits.
 
"On the surface, our latest net farm income number is incredible and shows just how valuable the agriculture industry is to Oregon's economy," says Katy Coba, director of the Oregon Department of Agriculture. "Many commodities enjoyed tremendous prices this past year. However, expenses continue to rise for all producers. Keep in mind, net farm income is an average number. Some farmers and ranchers did extremely well in 2007, others not so well."
 
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. The number does not account for payments on land purchases, family living expenses, or family health insurance. Still, statistics provided by the U.S. Department of Agriculture's Economic Research Service (ERS) show net farm income is on its way back up despite a decrease in each of the previous two years. 
 
Last year, gains in agricultural production value, largely due to strong prices paid for commodities, outpaced increases in farm expenses. The value of crop production increased 11 percent last year at $3.3 billion while the value of livestock production increased 17 percent at $1.12 billion. Both are record highs according to the ERS statistics.
 
The production value of food grains, most notably wheat, increased 55 percent last year. That rise reflects the high prices paid for grain. 
 
The production value of tree fruits and nuts increased 16 percent while vegetables increased four percent in 2007-all largely due to higher prices. The trend is significant. There has been nearly a 40 percent increase in production value for fruits and vegetables in Oregon since 2004 and 2005.
 
The value of nursery products-Oregon's number one agricultural commodity-went up a moderate six percent but continues to be a big contributor to the overall value of agriculture. Increases in production value for dairy, poultry, and eggs contributed to the overall 17 percent increase in livestock value of production.
 
Meanwhile, expenses are still rising, significantly in some categories. Overall input purchases increased about three percent in 2007, but that doesn't match the increased cost of those inputs. It appears producers are cutting back on purchases when they can and managing their operations with better equipment, monitoring closely what they use, and conserving when possible.
 
Feed purchase expenses increased eight percent last year but have gone up 25 percent since 2005. Money spent by producers for fertilizers increased 12 percent even though the actual price of fertilizer has nearly tripled over the past few years. The dollar value of pesticides purchased decreased 1.5 percent last year and has remained flat the past several years as growers buy only what they need and use it judiciously.
 
Like all Oregonians, farmers and ranchers saw an increase in energy costs. The amount paid for petroleum increased 12.5 percent last year and rose 10 percent for electricity. Since 2005, those costs have increased more than 50 percent. Again, costs rose at a higher clip, but producers cut back on what they used.
 
As is the case every year, wages paid remains the number one expense for farmers and ranchers on average. More than $900 million was paid to workers in 2007, an increase of about 3.3 percent.
 
Continued strong prices for producers will help this year's net farm income. But there is no doubt that expenses are not going down and will moderate any gains recorded for 2008.

ODA walks the talk when it comes to sustainability
Insect trapping photo
A popular buzzword in today's lexicon is sustainability. While there are many definitions of the word, the Oregon Department of Agriculture can point to many of its programs and activities as befitting the term.
 
"We like to say that the agency has been promoting sustainable agriculture for more than 75 years," says Gary Roth, administrator of ODA's Agricultural Development and Marketing Division. Indeed, it can be argued that ODA began looking at sustainability soon after its creation in 1931. 
 
One interpretation of sustainability in agriculture is a system that provides a more profitable farm income, promotes environmental stewardship, and creates stable, prosperous farm families and communities.
 
"ODA is strongly committed to the sustainable development of Oregon agriculture," says Roth. "Our programs are thoughtful and well articulated with other agencies and programs. They draw upon a broad range of internal skill and expertise."
 
A look at today's ODA shows state government, in some cases, is leading the way in adopting strategies to sustain the agriculture industry. Whether it's ensuring food safety, promoting agricultural products, or protecting natural resources, numerous individual programs can be linked to sustainability. Here's a brief sampling of ODA sustainability efforts in action at the division level:
 
Plant Division
 
Invasive species surveillance and protection-provide early detection and rapid response with such species as gypsy moth, Japanese beetle, and sudden oak death has helped protect agricultural and natural resources in Oregon.
 
Noxious weed control-a specific effort to provide surveillance, control, or eradication of dangerous weed species. ODA has one of the nation's top biological control programs. 
 
Nursery and Christmas Tree Program-assist such conservation-based efforts as the nursery industry's irrigation water runoff programs. 
 
 
Natural Resource Division
 
Conservation Reserve Enhancement Program (CREP)-provide oversight and cooperation with local soil and water conservation districts, Oregon Watershed Enhancement Board, and USDA Farm Service Agency. CREP provides cost-share and rental options for agricultural producers to reduce land use or take at-risk land out of production.
 
Agricultural Water Quality Management Act (SB 1010)-address pollution problems in watersheds associated with agricultural land and activities. The program supports cooperation between local communities and agricultural producers to develop watershed management plans that reduce pollution. This program has been a model of a cooperative public/private partnership based on constructive outcomes that don't use a "one-size-fits-all" approach.
 
 
Food Safety Division
 
Shellfish Program-work with ODA laboratories to provide year-around water quality testing for Paralytic Shellfish Poisoning (PSP) and other marine toxins that threaten the sustainability of the marketplace as well as the shellfish resource.
 
 
 
Measurement Standards Division
ODA has implemented statewide renewable fuel standards for ethanol and biodiesel blends of motor fuel. The state has adopted an energy strategy that is based in renewable energy options.
 
 
Commodity Inspection Division
 
Voluntary third-party certification programs-give producers the ability to have an official third-party audit of agreed upon standards to help market the safe, sustainable practices that many Oregon growers are already undertaking. These are programs either requested by the industry or based on national standards. They include Good Agricultural Practices/Good Handling Practices (GAP/GHP) to reduce the threat of microbial contamination in fresh fruits and vegetables, identity preserved food security systems that offer "farm to fork" traceability, and GMO-free certification that verifies end-product status for markets with strict tolerances for genetically modified organism content. ODA and industry continue to develop programs that certify sustainable practices in wine and Christmas tree production.
 
 
Agricultural Development and Marketing Division
 
Transportation efficiency-advocate for agriculture. This has resulted in some needed improvements, including a load limit change on Highway 140 planned for Southeast Oregon that would save agricultural truckers 291 miles per trip to key markets. ODA worked with industry and local communities to match incoming with outgoing agricultural loads to limit empty barge travel on the Columbia River. ODA also researched eastbound all-rail containerized shipments to increase the efficiency to Midwest and East Coast markets.
 
 
Other agency programs and efforts
 
Renewable energy-provide outreach, project assistance, and policy development with the help of a newly established full-time staff position. This includes help with grant applications, education about tax credits, and cooperation with other agencies (particularly, the Oregon Department of Energy) to promote renewable energy.
 
Climate change-represent agriculture on the Oregon Global Warming Commission, which includes the ODA Director. ODA also provides outreach and education on "cap and trade" carbon credit options for the industry.
 
Partnerships for sustainable development-represent agriculture on the Oregon Sustainability Board. ODA is a founding member of the initiative to create the Oregon Sustainable Agricultural Resource Center (OSARC), which would give farmers and ranchers access to the latest information about sustainable practices and marketplace certification.
 
ODA continues looking to the future with an eye on sustainability. Oregon's Farm-to-School Program (see story on page 1) is creating opportunities for more local foods in Oregon schools. The concept appears to be a win-win for kids and producers. Children receive healthy, nutritious foods while local producers have access to an important market.
 
The National Organic Program is another area of interest for ODA. The agency pioneered the first state organic program standard with the Oregon Organic Food Law in 1973. Sometime next year, ODA will be an accredited certifier of the National Organic Program.
 
Then there is GlobalGAP, the pre-eminent international certification standard for ecological sustainability, food safety, and socially responsible agricultural practices. ODA is pursuing membership in the GlobalGAP program and be accredited to the high international standards established by GlobalGAP.
 
In its dual role of promoting and regulating the agriculture industry, ODA is in a unique position to help farmers and ranchers protect the natural resources that sustain their operations as well as develop ways to better access markets for agricultural products. 
 
"It might be certification, it might be outreach and education, or it might be on-the-ground programs to protect against invasive species-ODA gets to sustainability in a variety of ways," says Roth.
 
When it comes to these and many other efforts, ODA believes the service it provides helps Oregon agriculture be sustainable from the ground to the marketplace. While the agency has adapted with the times, those efforts have been ongoing for three-quarters of a century.
 

Nursery energy efficiency measures save money, earn Salmon-Safe certification
Photo of Lorraine Gardner, Jim Gilbert, Laura O'Leary at Northwoods Nursery
Lorraine Gardner, Jim Gilbert, Laura O'Leary of Northwoods
By Stephanie Page, ODA renewable energy specialist

Northwoods Nursery/One Green World in Molalla, Oregon is a great example of the interconnection between energy savings and other natural resource stewardship strategies. The nursery recently became the first nursery in Oregon to attain Salmon-Safe certification, which it earned through a variety of sustainable agricultural practices that protect water quality and salmon habitat, and also save energy.
 
"We're proud of the things we have done to protect and conserve natural resources at our nursery. Many of these practices not only benefit natural resources, they also save us money and, because of the certification, may also provide marketing benefits," says Jim Gilbert, owner of Northwoods Nursery. 
 
Northwoods Nursery is particularly proud of their extensive recycling program. The nursery recycles all of its plastic pots thanks to agricultural recycler Agri-Plas, Inc, in Brooks. Instead of using styrofoam peanuts to ship plant materials to customers, the nursery uses biodegradable packing peanuts. 
 
All waste plant material and other organic matter is composted onsite in a roofed, concrete-floored facility. The composted material is then used as nutrient-rich mulch in the fields. Soon, used potting medium will be pasteurized and then used for onsite transplanting material. 
 
What does composting and re-using waste plant material have to do with energy savings? As Oregon growers know, fertilizer costs are closely tied to energy prices. Natural gas is required to produce fertilizer, and fuel is required to transport it to the United States and to the grower. Northwoods Nursery is helping save energy and reduce input costs tied to energy by producing its own nutrient-rich compost.
 
Nurseries typically use propane to heat their greenhouses, so recent increases in propane costs have been a challenge. Northwoods Nursery provides some great examples of small steps that can make a difference on a nursery's propane use. "One of our employees has been locating gaps in the greenhouses and sealing them to prevent heat loss," says Laura O'Leary, pointing out caulking on a corner of a greenhouse. The nursery has also installed two sheets of poly sheeting on the outside of its greenhouses, creating an air gap and helping to prevent heat loss.
 
O'Leary isn't sure yet how much energy these measures will save, but will know more after winter bills come in detailing energy use. "We're trying a few things at a time to see what kind of effect they'll have," she explains.
This spring, the nursery had an energy audit completed to evaluate the benefits of switching to in-floor heating in several greenhouses. The in-floor heating system consists of microtubing that circulates hot water, providing heat to the plant roots. "The audit predicted that we'd save over 13,000 gallons of propane a year, reducing our propane use by 47 percent," explains O'Leary. The nursery has applied for a grant to help cost-share the heating system. 
 
In addition to rising propane costs, diesel costs are a concern for many agricultural producers. Northwoods Nursery has switched from conventional diesel to biodiesel in all of their equipment. O'Leary reports that the price is nearly competitive with diesel. The nursery also appreciates some other benefits of using biodiesel.
 
"Our employees are frequently working around the equipment while it's running. Now that we're using biodiesel in our equipment, they don't have to breathe the exhaust of conventional diesel anymore," says Laura O'Leary. 
 
On the irrigation side, Northwoods Nursery has taken steps to reduce energy needed to pump water and apply it to plants. Currently, the nursery has a small rainwater storage tank fed from the gutters of the composting facility. This water, supplemented with other water pumped from wells, is applied to plants through a drip irrigation system.
 
"In addition to applying water efficiently, the drip system saves energy," explains O'Leary. "By applying less water, we are using less energy to pump the water to the irrigation system."
 
The nursery is exploring many more projects to help meet its goal of protecting natural resources while improving efficiencies. 

Loan limits increase for direct operating and farm ownership loans
Submitted by Lora Surmeyer, Farm Service Agency

Larry Frey, Executive Director of USDA's Farm Service Agency announced that the new farm bill is helping make the goal of farming a reality by raising the loan limits to $300,000 (up from $200,000) for direct farm ownership and operating loans.
 
"FSA is working with farmers at the local level and has already started making loans with this higher limit," Frey said. "FSA strives to be the lender of first opportunity and is proud to help the hard-working Americans in Oregon who were struggling with the high costs of running a family farm-especially beginning and socially disadvantaged producers." 
 
Direct loans are a resource for farmers to obtain the credit they need to build and sustain family farms and ranches. Despite continual increases in farm input costs, FSA loan limits have remained unchanged since 1984. The increased loan limits are expected to help farmers whose credit requirements could not previously be met by the FSA loan limits. In addition, some existing FSA borrowers who have already reached the previous limit of $200,000 will now be eligible to obtain additional credit from FSA. 
 
Direct farm loans are made by FSA with government funds. FSA also services these loans and provides direct loan borrowers with supervision and business planning so they have a better chance for success. Farm ownership, operating, emergency, and youth loans are the main types of loans available under the direct program. Direct loan funds are also set aside each year for loans to socially disadvantaged and beginning farmers. 
 
Farmers interested in applying for a direct operating or farm ownership loan should contact their local FSA office.
 
For more information about these and other types of loans, visit the FSA's home page at http://www.fsa.usda.gov and click on "Farm Loan Programs." 

State Fair is "easy as pie" for the Governor
Photo of Governor Kulongoski with Marionberry Pie Contest winner.
Pie judge Governor Kulongoski visits with first place winner Frances Benthin of Scio. Picking the winner of Oregon's Finest Marionberry Pie Contest at the State Fair was a tough job, but someone had to do it. 

Announcements
Oregon Agriculture in the Classroom Fall Harvest Dinner and Auction
October 18, 2008
Linn County Fair & Expo Center. 
Registration form: http://aitc.oregonstate.edu/whats/pdf/harvest_order.pdf
 
Oceans of Opportunity
October 31-November 3
Oregon Association of Conservation Districts annual meeting and convention
Newport, Oregon
Contact: Gary Whitney or Susan Ortiz 503-566-9157
Web: http://www.oacd.org
 
Sesquicentennial Awards
The deadline for 2009 Sesquicentennial Awards is fast approaching. The Oregon Century Farm & Ranch Program is looking for farms and ranches that will turn 150 years old or more this year. If you think that your family operation might qualify, don't forget to submit your application by November 1, 2008. Call 503-297-5892 for more information. 
 
Oregon State Board of Agriculture Meeting
November 10, 11, & 12, 2008
Valley River Inn
Eugene, Oregon 
Agenda to be announced. Call 503-986-4758 for information.
 
Interagency noxious weed control symposium
December 2-4, 2008
11:00 a.m. Tuesday, 8:00 a.m. Wednesday and Thursday 
LaSells Stewart Center
Corvallis, Oregon
 
Weed control grants available
Applications are due December 3, 2008. 
The Oregon State Weed Board (OSWB) is accepting applications for noxious weed control grants.  
Call: 503-986-4622
Web: http://oregon.gov/ODA/PLANT/WEEDS/grantindex.shtml
 
Ag Water Quality Management Program Policy Advisory Committee 
December 11, 2008
9 a.m.-3:30 p.m. 
Marion SWCD Office
650 Hawthorne Ave SE, Suite 130
Salem, Oregon
 
CAFO permits
The Oregon Department of Agriculture (ODA) and the Department of Environmental Quality (DEQ) propose to renew the National Pollutant Discharge Elimination System (NPDES) General Permit #01 for confined animal feeding operations (CAFOs). ODA and DEQ will hold three public hearings to explain the permit and take comments. Written comments must be received by 5:00 p.m., October 27, 2008. 
 
For more info, go to: http://oregon.gov/ODA/NRD/cafo_front.shtml#Public_notice
Public Hearings
October 21, 2008, Central Point, Oregon
October 22, 2008, Portland, Oregon
October 23, 2008, Ontario, Oregon
 
Risk management workshop
Every agricultural operation needs a good risk management plan. The Oregon Department of Agriculture and USDA's Risk Management Agency are conducting an educational outreach effort to increase visibility and understanding of the Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) policies in Oregon. Call 503‑986‑4558 to schedule a "Farming is Risky Business: Managing Risk to Bolster the Bottom Line" presentation for your group. This workshop can also include information about energy efficiency and renewable energy incentives and opportunities.

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Page updated: October 06, 2008

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