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| 2007 Legislative wrap-up: ODA and agriculture both win some, lose some |
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By Bruce Pokarney
The shortest session of the Oregon Legislature in at least a decade, dealt with a long list of issues that included many affecting agriculture, directly or indirectly. For the state agency that both promotes and regulates the industry, the votes were generally positive.
A good session for ODA
It’s not always the case, but what’s good for the Oregon Department of Agriculture is generally good for the industry. And the legislature was very kind to ODA.“We had a very aggressive legislative agenda going into the session and, from our perspective, it was an excellent session,” says ODA Director Katy Coba. “Despite the intensity of the session and all the hard work it took to gain approval, I think it was a great session for us.”
The agency’s $81 million budget—which is actually more than a million dollars less than the 2005-07 legislatively approved ODA budget—sailed through and included a handful of new positions to deal with emerging issues and interests. Those additions include a renewable energy specialist, a position aimed at getting more local agricultural products into school lunch programs (farm-to-school), and money to contract for an invasive species coordinator. Just as significant, was a series of fee increases approved by lawmakers.
“In this environment of increased scrutiny on fee increases, I’m thrilled all four of our requests were supported,” says Coba.Fee increases were needed in the brand, weights and measures, pesticides, and shipping point inspection programs in order to maintain current service levels. Many of these programs had not had a fee increase in more than a decade.The legislature also approved increased funding for ODA’s Noxious Weed Control Program, and for the state’s soil and water conservation districts.
There is no doubt that a brighter revenue picture made for a better session, but ODA’s director has high praise for the level of interest shown by house and senate members.“Natural resource protection, invasive species issues, food safety and consumer protection—these are all issues our agency deals with and issues that urban folks care about. When we were able to explain our programs and the benefits they provide, there was a lot of overall support from the Legislature,” said Coba.There was one major disappointment, according to the director. Funding for a certification package and the Oregon Sustainable Agriculture Research Center (OSARC) was not approved.
New areas of opportunity
Two new initiatives that have great potential for Oregon agriculture include renewable energy and the farm-to-school efforts. Both received a great deal of attention from the legislature, but only one—renewable energy—received major funding consideration. House Bill 2210 sets incentives for farmers who grow crops that can be used in biofuel production and processing. ODA’s soon-to-be-hired specialist will help link agriculture with the myriad of partners and participants in this fast-growing area of opportunity. (See story on page 3.)
Even though no additional money has been provided for the farm-to-school initiative, ODA will hire a person to identify opportunities, barriers, and elements of a plan that will help schools access and purchase nutritional Oregon food products. Advocacy groups, including Ecotrust Food and Farms Program, are expected to pursue funding in future legislative sessions that will create better purchasing power for school districts wanting local foods. (See story page 4.)
Clearing the air
One of the most significant pieces of legislation to pass was debated right up to the last week of the session. Senate Bill 235 removes the agricultural exemption in Oregon law so that it complies with the Federal Clean Air Act. It was a very contentious issue and the bill went through several potential amendments before settling back to, basically, its original form.
Under its provisions, a special task force will be appointed by the governor to continue studying the issue of agricultural air quality. Industry and environmental representatives will be part of the task force with ODA and the Oregon Department of Environmental Quality (DEQ) in the middle of the discussion.
“If this had not passed, the state’s air quality program, administered by DEQ, would have been jeopardized,” says ODA Deputy Director Lisa Hanson. “The task force will be looking at the best available science surrounding air emissions from dairies and new practices the industry can employ that work for producers while keeping the air clean.”Oregon’s dairy industry actually spearheaded efforts to remove the exemption for agriculture, proactively dealing with an issue that has caused problems for the industry in other states.
“The dairy industry wants to be ahead of the issue and address it in a way that allows producers to remain competitive, but also helps them do all they can to minimize impacts on air quality,” says Hanson. “This is something we will continue to spend a lot of time on.”
The issue is confined to dairies right now but could be expanded to include other animal agricultural operations in the future. Currently, all of Oregon’s confined animal feeding operations (CAFOs) permitted by ODA are considered to be in compliance with the Federal Clean Air Act. But as the law evolves, there could be operations that will no longer have the state exemption and will need to comply with regulations.
Even more contentious was a bill that would have banned field burning in the Willamette Valley. The proposed legislation failed but opponents of field burning—tired of dealing with impacts of smoke in populated areas—have taken the next step by petitioning the Environmental Quality Commission (EQC) to administratively ban the practice employed by some grass seed growers. The EQC is determining whether it even has the legal authority to consider the issue. In the meantime, field burning will continue to be an issue at the State Capitol, if nothing changes in the near future.
Odds and ends
Pesticides drew some attention during the session. ODA was given authority to increase the maximum civil penalty for a first violation of the state’s pesticide law from $1,000 to $10,000 if it is a case of willful misuse. It was the agriculture industry, itself, that asked for the increase, recognizing that a stiffer penalty might be a stronger deterrent to those who would misuse a pesticide product.
Various proposals to restrict or further regulate the use of pesticides failed in the legislature, including a proposed tweak to the relatively new Pesticide Use Reporting System (PURS). “It was an opportunity for ODA and the industry to educate new legislators, and those not involved with the issue in the past, about how pesticides are used in Oregon, and the fact that there are already strict laws to ensure they are used properly,” says Director Coba. “But I think we will continue to see future questions. As more and more people move into or near agricultural operations and don’t understand them, we’re going to keep seeing these kinds of legislative efforts come forward.”
It was a mixed bag of results for water-related bills. On the plus side, the Oregon Water Resources Department (OWRD) received funds to develop a long-range plan to determine future water needs and how to meet them. That is considered important for agriculture. Other bills—whether requiring measurement of water use or setting aside Columbia River water for irrigation in Eastern Oregon—were not successful but are expected to come back in the future.
“I can guarantee you that the focus on water quantity will not go away,” says Coba. “We have to figure out ways to capture winter water and have it available for multiple uses in the summer, whether it’s for agriculture, recreation, fish, or municipalities.”
The hot debate over Measure 37 has been extended and will include a referral on the November ballot that makes some significant changes to the original law. Agriculture is square in the middle of the discussion.“We must figure out a way to allow and preserve agricultural operations in the Willamette Valley, but also deal with legitimate desires for individuals to use their property as they see fit,” says Coba. “It’s a tough balancing act and we’re not done yet.”
Finally, family farms and ranches received some favorable news from Salem this session when lawmakers increased the limit on how much property farmers and ranchers can pass on to their children before it triggers the estate tax. As a result of legislation, the limit will be raised to $7.5 million. With the average age of operator increasing, it is important to make it easier to pass along the farm to the next generation.
All quiet in Salem, for now
It is unusual for legislators, lobbyists, and interested parties to enjoy the majority of the summer during a legislative year, but 2007 is an exception. Normally meeting every other year, the legislature will assemble again next February for what should be a very focused and abbreviated agenda. Whether agriculture is part of that agenda remains to be seen. But as important, diverse, and far-reaching as the industry is, elected officials can count on agriculture to stay involved in the affairs of the Legislature.
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| Board of Agriculture report: An interview with Chair Bernie Faber |
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How has the board performed, this past year, in its relatively new role as a policy making board?
I thought things were going a little bit too slow at first as we tried to establish credibility for the board so that people would show trust and ask for our opinion, particularly the legislature. I didn’t see that moving very fast. But in the last few weeks of the session, that has changed. We have received phone calls from folks wanting us to help with an issue, attend a function, or to come talk about the board and what it’s doing. That’s encouraging.
You said when you became chair that it was important for board members to represent the entire industry, not just their own commodity sector. Is that happening?
Yes. I think all of us need to be reminded on occasion that we represent all of agriculture. With over 220 different commodities, they can’t all have somebody representing them on the board. So we do need to keep in mind that all of agriculture is important to all of us.
The board has established subcommittees on key policy issues. Has that been a successful way to address those issues?
I really think so. It probably does an even better job of educating the board on these issues. Conference calls and other discussions in these subcommittees provide a great deal of information to us. We are able to keep up to speed on what is happening. That’s important for us in order to do our job.
There has been an effort to bring together agriculture and non-traditional partners, particularly environmental groups, on various issues. Has that been successful?
I think so. My motto has been that you accomplish a lot more by communicating and working together than by fighting. We can see that some of the ag organizations that don’t necessarily work with environmental groups feel a little more at ease when we are able to do it. We’re not always going to agree with environmental groups—that’s not what we’re trying to do necessarily—but when we stop talking and communicating, there is no way to get it done. We’ve been able to get some of these groups to tour ag operations. When the Oregon Environmental Council came out to my dairy farm, they said wow—they didn’t realize some of the things farmers do [to protect the natural resources]. They visited my farm and Pat Dudley’s winery. This fall they plan to visit Dan Carver’s ranch in Central Oregon. So within a year, OEC is going to make an effort to see almost a third of the Board of Ag’s operators. If we don’t accomplish anything more than that, we’ve at least got them to see and understand how we do things.
What are your goals for the board over the next year?
We need to keep moving in the direction we’re moving. My agenda over the next year is to concentrate a lot on the younger people and continue to have them on the agenda at Board of Agriculture meetings. A lot of times, us older people lose trust that there is a future for agriculture. But when we see some of these ambitious young people come in and make presentations before the board—whether it’s a young farmer, an OSU student, or an FFA student—they all stimulate us and reassure us there is a future.
I think we have a great board. It’s diverse and there are differences of opinion, which is always good. We are going to add a new member this year. There is always a benefit to having new people and new ideas come to the board.
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| Director's column |
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Much of this issue of the Agriculture Quarterly is dedicated to the recently completed legislative session. You will find some of my comments in the cover article. But to borrow a phrase from radio commentator Paul Harvey, this is the rest of the story.
I am generally pleased with the results of the 2007 session. Back in January, it was widely known that funding for education would be the key issue occupying the hearts and minds of lawmakers. In my opinion, that priority did not get in the way of natural resource and agriculture issues being addressed. Among the issues key to our agency and industry were renewable energy, water, invasive species, locally-grown food for schools, and fee increases to stabalize ODA programs.
A better revenue picture made many more things possible this session. But the diligence displayed by individual legislators was encouraging. Given the change in political balance of power from republican to democrat, I wasn’t sure what to expect when it came to agriculture. I observed a lot of support, in both the house and senate, for our agency and the work it does. That same support extended to several key issues facing the industry. We continue to have our traditional legislative supporters and have added a broader base of support on many of the same issues. It is important to have that broad base of support that isn’t always defined by party-line votes. When that happens, lawmakers can focus on the policy and what is the right thing to do, regardless of party affiliation.
I also appreciated the leadership provided by the Governor and his staff.
I’m especially pleased that several urban legislators were interested, engaged, and ultimately supportive of agriculture. That doesn’t mean all of them saw eye-to-eye with every agricultural interest group on all issues. But the willingness to try and work through the things that are important to the industry is always an important first step to reaching resolution. I hope the respect generally shown for ODA and the industry will be a staple in future legislative sessions.
During any legislative session, very few get everything they ask for. Certainly, the agriculture industry has important unfinished business that I expect will be revisited in future sessions. I have been around the process for some 20 years now, and many issues will continually resurface. The big complicated policy issues are very rarely resolved in a single legislative session. Sometimes these things need to run their course, perhaps getting introduced in one session but not gaining traction until the next time lawmakers convene. You have to look at the legislative process as running multiple marathons.
We are all recovering from and, in some cases celebrating the latest race, but we will keep training to be in shape for the next one.
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| Renewable biofuels: Legislative changes in 2007 and beyond |
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By Brent Searle, ODA
Renewable fuels and energy are receiving a lot of attention here in Oregon, around the nation, and internationally.
There is a swell of interest coalescing around these issues, for a wide variety of reasons including: economic development and job creation, rural revitalization, environmental and global warming concerns, higher costs of petroleum-based fuels, and energy security and national security perspectives.
Grain farmers are seeing the highest prices in years. The ethanol market for corn has stimulated an increase in all grain prices. It is the first time in two decades that many grain farmers can rely more on the market than government subsidies.
Higher grain prices, inevitably, have an affect on other agricultural sectors that rely on grains. These sectors, and consumers further down the line, had become accustomed to plentiful supplies of overproduced commodity grains at cheap prices. Dairy and livestock operations are experiencing price increases for feeds, as are some food processors for inputs. An ensuing debate has developed about “food versus fuel.” This is a complex issue, but there are certainly competing interests and impacts.
Grains impact a limited number of the broad range of foods in the marketplace. A recent study demonstrated that the past year’s increased petroleum fuel prices, reverberating through the entire food distribution system, had a much higher impact on food prices than has the grain market, due to ethanol. That aside, agriculture is in a transition period equivalent to the industrial revolution. The opportunities surrounding a carbohydrate economy, versus a hydrocarbon economy, are enormous for agriculture.In the short term (next five years), corn and other grain and oilseed crops will continue to be the dominant inputs for biofuel. Beyond that, cellulose (plant material, such as straw, woody biomass, etc.) will be used to make ethanol. Other oilseed crops, beyond canola, will come into play.
The 2007 Farm Bill, now under development, will expand on federal incentives to assist in the further development, research, and production of renewable energy and biofuels. To ensure renewable energy opportunities, the State, led by the Governor’s Office, the Oregon Department of Energy (ODE), Oregon Department of Agriculture (ODA), Oregon Economic and Community Development (OECDD), and other entities created the Renewable Energy Action Plan. This plan identified potential opportunities, roadblocks, and incentives then made recommendations that were turned into legislative bills and introduced this session.
The objectives of these bills are to:
- encourage local feedstock production and provide opportunities for Oregon agriculture, forestry, and other feedstock suppliers.
- encourage the building of local processing infrastructure for the feedstock.
- create a marketplace for the resulting fuels through a blending standard (renewable fuel standard) that is triggered when certain milestones of in-state production are reached. This will require a 2 percent blend of biodiesel in all diesel sold in the state (except marine, household heating, and railroad use) when five million gallons of biodiesel are produced; later increasing to 5 percent content requirement when 15 million gallons are produced in Oregon from regional feedstocks. A 10 percent level of ethanol in all gasoline will be required when 40 million gallons of ethanol production capacity are built in Oregon.
All three of these “legs of the stool” are necessary to get the industry going. The ethanol trigger may be reached this year as ethanol facilities, now under construction, come online. The biodiesel trigger may be reached in 2008 with the expansion of the SeQuential Biofuels processing facility in Salem.
There are many challenges as this moves forward, including biofuel distribution and quality assurance, economics related to petroleum prices, and agronomic research and cropping questions.
ODA is, and will continue to be, involved in many of the aspects of this developing industry.
House Bills 2210 and 2211, passed by the Oregon Legislature, create new incentives (tax credits) for biofuel production.
ODA will provide information to the Oregon Department of Energy as the agencies craft procedures and rules regarding tax credits and other incentives. Guidelines should be available to the industry by August, 2007.
ODA will collect information regarding the use of incentives, feedstock development, and possible unintended consequences of biofuel production. The department will also work with OSU to provide research and education to growers.
(See http://cropandsoil.oregonstate.edu/bioenergy )
Further, the department’s Measurement Standards Division has a key role under this new legislation to assure biofuel quality meets ASTM standards, and certify in-state production levels that will trigger the renewable fuel standards.ODA’s 2007-2009 budget contains funding for a full-time renewable energy specialist. This is an exciting development for our department and we will be recruiting for this position in July. This will enable the department to further develop renewable energy and biofuels expertise and assistance for the agricultural industry.
The Oregon Department of Agriculture maintains a Web site on renewable energy, and encourages producers to review the information and contact ODA, or other state agencies, if they have questions: oregon.gov/ODA/energy.shtml
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| Food processors get together with Oregon school districts |
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While Oregon lawmakers debated so called farm-to-school legislation this session, others forged ahead with plans to bring together locally grown and processed foods with kids who receive meals at schools throughout the state. One of those efforts was a one-day meeting at the Food Innovation Center in Portland in May, hosted by the Oregon Department of Agriculture.
The meeting attracted 24 food processors and representatives from six Oregon school districts responsible for 25 percent of the state’s school food budget. Participants generally agree that the meeting was helpful and could lead to more Oregon food products making their way to kids at school.“ As a result of the meeting, we’ve had several school districts tell us there will be Oregon products on the menu this coming year that they would not have otherwise offered,” says Gary Roth, administrator of ODA’s Agricultural Development and Marketing Division. “Getting Oregon products into Oregon schools absolutely fits with the buy local trend we see throughout the state and the country.”
A wide range of Oregon processors took part in one-on-one discussions with school district food service directors from Portland, Beaverton, Reynolds, Lake Oswego, Tigard-Tualatin, and Seaside. Products sampled and considered ranged from fruits and vegetables to dairy products and baking goods. The ultimate goal is to get nutritious local food as part of the 47 million school lunches and 22 million school breakfasts served in Oregon each year. The ODA-sponsored meeting got the conversation going and is expected to lead to purchases of at least some of the offerings.
“The school districts say they are interested in buying more Oregon products but they often don’t know who has the types of products they want or need,” says ODA’s Laura Barton, who organized and facilitated the meeting. “Many of the processors have not looked at selling to schools before. It was good for them to learn more about the possibilities and get acquainted with the schools.”Oregon schools are definitely seeking local products.“Supporting Oregon farmers and producers, and reducing transportation fuel usage will be considered in buying decisions when possible,” says Janet Beer of the Tigard-Tualatin School District.
“I think it’s critical for schools to start exploring ways they can incorporate and use local products,” says Susan Barker of the Beaverton School District. “The schools serve the community and the community supports the schools. So buying locally whenever possible just makes good sense.”The participating food processors also see a great opportunity in reaching kids via the schools.
“We view Oregon schools as a good opportunity for our apple juice, especially with all the pressure to supply kids with healthy drinks when they are at school,” says Keith Loran of the Hood River Juice Company. “I also think it is important for schools to buy locally whenever possible. It is a great way for the schools to give back to the state and local economy, which the schools rely upon for funding.”
Chantal Wright of Norpac is excited about providing processed vegetable components to schools. “Taking into consideration the number of school districts in the state and the number of children that are fed daily, it is key that we explore the options to join forces with Oregon schools and be a part of their initiative to provide healthy meals,” says Wright. “We are fortunate to have a vast array of local produce, dairies, and bakeries in Oregon that produce top quality products needed by the schools.”
The two-way exchange of information between processors and school district representatives provided some key first steps in a business relationship that should move local products onto the menu. Food processors learned about what types of foods and recipes worked best for schools. In some cases, there was a creative discussion on how certain food products could be part of new meal solutions that meet dietary requirements while still keeping kids interested in eating lunch at school.“We have an upscale line of vegetables that was of interest and a line of pastas that was a huge hit,” says Norpac’s Wright. “These products allow schools a shorter prep time and a spectrum of creativity with each item.”
“The one consistent comment I got from the school district buyers was that our apple cider tastes like an apple and a lot of the juice they buy does not,” says Loran of Hood River Juice Company. “They are very interested because it is an all natural apple cider and, more importantly, they thought the kids would drink it.”
Other food products of interest on display at the meeting were a muffin using the new “white” whole wheat with improved texture, pizza crusts and bread sticks made with whole grain flours, and seven ounce yogurt smoothies, Some companies came away with ideas to create new food products that would be better accepted by schools.Taking the two parties through the next steps will be key. ODA will help keep the conversations going.
“For some, this first meeting was more of a fact gathering experience,” says ODA’s Barton. “For others, they can now call and have orders placed. There are some long term opportunities we want to keep tracking.”
Meanwhile, Ecotrust Food and Farms Program continues to partner with school districts across the state to bring Oregon grown foods into the school lunch program. Combined with efforts at the State Capitol (see page 1) and ODA’s continued involvement, momentum is building toward better food for school kids and a new market for Oregon producers and processors.
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| FCA looks for fish screening demonstration sites |
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The Farmers Conservation Alliance (FCA) is currently looking for partners in the Northwest to install demonstration screens during 2007 and 2008.
The Farmers Screen is a newly developed horizontal, flat-plate, irrigation screen system that stops debris, but allows safe passage for fish. This system complies with state and federal laws and has been approved by both National Marine Fisheries Service (NMFS) and the Oregon Department of Fish and Wildlife (ODFW).
For more information about the Farmers Screen test demonstration project, visit the Web site at www.farmerscreen.org or contact the Farmers Conservation Alliance, PO Box 1621, Hood River, OR 97031, 541-400-2100 or 541-490-4062.
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| It ain't easy being a hundred and fifty |
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By Madeline MacGregor, ODA
The Internet highway leads to the Oregon Trail
“Go ahead and order those six-inch valve openers,” Kenny Reynolds says—as he holds the farm office phone in the right hand—and then speaks to his wife from the cell phone in the other hand, “Okay, hon.” Reynolds then flips back to the office phone, “Oh—and get one of those six-inch threaded valves while you’re at it.”
At 47-years old, Century Farm owner Ken Reynolds runs a tight operation. He moves in pace with technology, yet is acutely aware that the lessons from his farm’s past became the lodestar that guided him onto the fertile ground of the present.
Located on Hwy 20 in Corvallis, Reynolds’ office is infused with tangible connections to his family’s history and is a hub of activity and contradiction. From the flat screen computer and phones that never stop ringing to the bear-skin rug hanging beneath a wooden horse buggy, the proof of how he has integrated both the past and the present of farming is everywhere.
Reynolds is eager to fill in the missing details of his great, great grandfather, Daniel Morgan’s original Donation Land Claim (DLC). He has used the Internet to compile evidence that Morgan was scheduled to arrive at his Willamette Valley homestead in the year 1847. Reynolds points to the computer screen, “RootsWeb.com was the place where I just typed in ‘Morgan’ into the Benton County pioneer database index, and two Daniel Morgan’s showed up.” Reynolds navigates to a new page, “It turns out that they were father and son.”
New information gleaned from Reynolds’ Web search revealed that the older Daniel and his first wife Rachel were traveling the Oregon Trail when Rachel died during childbirth. Their infant daughter, Morgan, expired only three months later at Summit Meadows. The Oregon Trail was a harsh road to travel—claiming perhaps 20,000 to 30,000 emigrants over the 2,000 mile journey; an equation of 10 graves per mile. Childbirth was a dangerous and iffy event on the trail—there was no time for recovery, poor nutrition, and little if any medical assistance.
Daniel and three remaining Morgan children, Thomas, Anna, and Seth, continued onward to Benton County and filed their Donation Land Claim for Parcel #47. Reynolds notes that some details about Daniel’s marriage to Mary Taylor (which may have occurred along the Oregon Trail, after their arrival in the Willamette Valley) remain a mystery. Either way, the daughter of Mr. Taylor, owner of adjoining DLC Parcel #46, became Daniel’s second wife. This marriage expanded the original Morgan homestead site to approximately 640 acres.
Daniel and Mary became the parents of a baby girl, Minerva Jane. While Minerva Jane was quite young, Daniel died of consumption. John Sylvester, a farmhand living at the neighboring Knotts family claim, began helping newly widowed Mary with chores. They eventually married and, although more a marriage of convenience than romance, they remained good friends, keeping the Morgan land claim and family of young children intact.
Minerva Jane, or Dolly as her mother and stepfather affectionately called her, grew up and married Reuben Columbus Kiger. Reynolds describes Reuben as “a young up-and-comer” in Corvallis. Reuben purchased the same livery stable that he had worked in as a thirteen year-old, but not willing to curtail his adventurous spirit, “Reuben sold the livery, packed everything up, and drove a herd of cattle over the Cascades to Eastern Oregon.” relates Reynolds.
Reuben, Dolly, and their three children, John, Will, and Minerva (named after her mother), settled into Redmond, starting a new ranch. “Now they about froze to death that first winter. And, it was right in the middle of the Sheep Wars. Instead of fencing the cattle in, Reuben used a natural gorge (still known as Kiger Gorge) that was 13-miles long with an opening only 900-yards wide, and built a rim-rock wall to corral them.” Reynolds pauses in his narrative, answers another ringing phone, but then resumes the story without missing a beat. “But there were a few problems—Dolly was not much of a pioneer. To her, basically every snake was a rattler.” During the Bannock Indian War in 1878, white homesteaders all around the Steen Mountains were under attack. When Dolly saw an Indian woman wearing one of her dresses from off the clothesline, she told Reuben “That’s it!”
Reuben sold off their cows to cattle baron Pete French, packed up the family belongings, and moved back to the Morgan-Sylvester homestead in Benton County. Reuben’s in-laws, Mary and John Sylvester, came over the mountains to help the young family move out. But Mary never made it back; she fell to her death when the bridge over the Calapooya River collapsed.
Reynolds chronicles Reuben’s next steps, “When he gets home, Reuben buys back the livery stable, and buys some more land on a small island nearby, which he and Dolly name Kiger Island.” Reynolds leans forward in his office chair, tabulating. “At that point, they have about 1,200 acres of farmland—and then it all gets a little discombobulated in 1907. That’s when Reuben dies from internal injuries following an accident removing a tree stump on the farm. So the farm is passed to the two sons—Uncle John, and Uncle Will—and the Kiger Island property goes to my grandmother Minerva.” Reynolds stops to answer the phone again, while his elderly Labrador retriever, snoozing on the sofa, stretches her long legs, and yawns.
“Uncle Will and Uncle John were not real interested in being farmers. They liked the benefits of the work, but not the work,” Reynolds jocularly explains. “So they decided to swap the farm with my grandmother—and let her have it, while they took over the Kiger Island house. In 1912, Minerva ends up marrying Jay Merrit Reynolds, that’s my grandfather, and then they have one son, Edward Jay Reynolds, and that’s my father.”
When Ed married his college girlfriend Jean, they continued to work the same land Reuben farmed. When Ed was ready to retire, their only child, Kenny Reynolds, took hold of the reigns. Because both Ken and his parents are Oregon State University graduates—they returned to the farm with a well-rounded sense of the world—applying it to the business they love. But the Reynolds also experienced, firsthand, the tenuous nature of farming in the Valley.
The boundaries are blurred when the city is your next door neighbor
When asked if there is a caveat to describe how to farm in modern Benton County, especially so close to Corvallis proper, Reynolds sums it up in one word, “Carefully!” The combined acreage from the homestead and land he leases creates precariously placed puzzle pieces in-between development; Reynolds has urban neighbors bordering all of his fields. “Because we are very visible, we need to tow the line.”
Reynolds articulates the disparities, “I’ve got to raise the most perfect crops under the most environmentally sound conditions—yet the consumer goes and buys fruit from Chile, beans from China and Mexico, and seems to care nothing about the fact that the restrictions on how to raise these things only apply to me, and not the foreign growers.”
Reynolds wonders if the public will be willing to sacrifice a little, in order to effect change. Shopping for inexpensive imported goods produced under questionable standards, versus purchasing local goods produced under good handling practices, may not be an easy choice for some families to make. “There’s a kind of realization that you don’t know if you’ll ever be able to make the public aware—or that they’ll be willing to do anything about it. The price of gas goes up, and there are a few things you can do about that—you can change your habits. But when the price of food goes up, it’s pretty tough to change your habits.”
Twelve-hundred acres and no mule; the risks are big and the returns are small
Part of Reynolds’ dilemma hinges on how much diversification can be realized when land and money are not readily available. “About the only way to be successful these days is to get larger, but there’s almost nowhere to go around here.”
The competition for land in the area is undeniably fierce—emphasized by a recent auction Reynolds attended. “You’re not going to make much, if any, profit if you have to pay two million for a farm. About the only way, is if you can pay cash and then wait for it to catch up in value. The bigger guys can achieve economies of scale, but about all I can really get at a time is a piece that’s maybe 45 to maybe 145 acres.”
Reynolds’ fescue grass and bean fields are on the opposite side of the road from his farm office, home, and barns. Reynolds must maneuver lumbering combines and other large farm machinery across the highway (and between cars whizzing by at freeway speed) in order to work his crops. He shakes his head, “It can take me 20-minutes to cross Hwy 20, when in the 60s, I didn’t even have to look both ways.”
And, as Reynolds notes—there are numerous roadblocks to realizing a robust financial portfolio from farming. “In the early 80s when I came back here to take on the business from my dad, interest rates were through the roof. I ended up switching crops around a lot, and I lost a pile of money. I’ve seen my prices go up a little, but I’ve also seen my costs go up a lot.”
Reynolds gives a clear example of the squeeze mid-size operators feel, “They say wheat might hit six bucks this year—and if it does, it’ll hit what it did for my dad back in the 80s. Well if I could buy a combine now, for what I could in the 80s, wheat should be at about $25.” The offsets are rapidly gobbling up any discernable profits. As prices for machinery, fuel, and supplies spiral upward, the costs are not balanced by rising profit levels. “So I don’t know—I think farming’s a great lifestyle but a terrible business,” he says with mixed emotion.
Because Reynolds’ major crop is grass seed, he has felt the squeeze in a unique way. “I look at the industry I’m in, and it’s such a weird deal to contract our crop for a yet-to-be determined price, that’ll be paid at a yet-to-be determined time. In this industry, everything seems to roll downhill to us, the farmers.”
“My margins are variable, from positive to negative, but it seems like if you go one level beyond me (to large operations) they work to a minimum margin that is always positive.” Reynolds would like to get off the unpredictable back-and-forth seesaw of margins and achieve a modicum of well-being for his wife and three young children. “Security is a good thing to have,” he says. “All of this is very cyclical, and now it’s weather factors (climate change) and ethanol. And ethanol is having a huge effect on grass seed. In my industry, the hot topic is alternative fuel—because they’re making it from the straw. Yet the price I pay for fertilizer is almost two-and-a-half to three times higher than it was last year, and the price I’m getting for my product hasn’t really gone up at all.”
The bottom line—a stool with three legs
For Reynolds and his family, the farm is the place where it all comes together. He’s not ready to give it up anytime soon, although at times feels more like he’s in the business of real estate than raising crops. Land values skyrocket, while farming in the Valley can be a liability.
However, Reynolds feels grateful for the opportunities given him and shares the secret of how his family retained the homestead through five generations, “I stood on the shoulders of my dad, who stood on the shoulders of his dad—and hopefully my three kids will stand on my shoulders and start at a higher level than I was able to. That’s how it works.”
Sitting at his office desk beneath the icon of Reuben’s livery buggy, Reynolds’ pledge to retain the family homestead is not just symbolic. “The bottom line is the land is not going anywhere. There are trials and tribulations in every business, but I’m not going to be the one to lose it.”
He likens the business that began 150-years ago to a three legged stool. For each of his children, the endowment may mean three different, separate businesses; with one leg representing the farm. When speculating on what the other two legs of the stool might bring, Reynolds jokingly predicts, “We just might go back to hops and garlic and turn this place into one giant brewery."
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| The new Century Farm & Ranch Sesquicentennial Award |
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Applications for the new CF&R Sesquicentennial Award, are being accepted through October 1, 2007. If your farm or ranch is turning 150-years old or more, don’t miss out on a special event that will take place on February 14, 2008. Honoree families will be hosted to a special ceremony at the State Capitol Building in Salem. Please contact Glenn Mason, CF&R program coordinator at 503-297-5892.
The Agriculture Quarterly wants to publish your story. Contact ODA, CF&R program board member Madeline MacGregor at 503-986-4758.
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| Taiwan wheat deal good news for Oregon growers |
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With a simple stroke of a pen, some 4.4 million bushels of soft white wheat from the Pacific Northwest—a significant amount from Oregon—will be headed to Taiwan in each of the next two years as part of an overall 62 million bushel purchase of US wheat. The windfall for Oregon growers could be more than $17 million and, more importantly, a reliable, cash-paying customer like Taiwan. A ceremonial letter of intent was signed by Governor Kulongoski, ODA Director Katy Coba, and the head of Taiwan Flour Millers Association as the trade delegation stopped at the State Capitol on the last leg of a four-state tour to announce the purchase agreement.
“Taiwan has been a good and steady customer for many Oregon agricultural products, and we are pleased to see its continued interest in wheat,” said ODA Director Coba. “Our wheat growers have had some tough times in recent years, but it appears their fortunes are turning around. This purchase agreement reflects the improved outlook.”
As a customer of high quality wheat, Taiwan millers have been willing to pay for that quality and specify exactly what they want. Wheat breeding programs have developed those specific traits for the soft white wheat that Oregon grows, as well as other wheat classes. Soft white wheat is used in Taiwan to make flour for steamed buns and as an ingredient in various noodles.
“It’s very significant that the delegation is stopping in Oregon,” says Gary Roth, administrator of ODA’s Agricultural Development and Marketing Division, which has helped make arrangements for the Salem signing ceremony. “I think it pays tribute to the work done by our wheat industry, which has been very active and on the forefront in creating and maintaining export markets.”
Although the purchase agreement is for two years, there is every expectation that Taiwan will continue coming back for more.
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| ODA uses trap trees to detect unwanted beetle |
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It looks harmless enough. A newly planted ash tree that has been girdled and wrapped in a band of purple cellophane. To the emerald ash borer—an invasive wood-boring beetle that literally kills trees—it looks like a welcome new home. This tree, however, is a trap designed to lure the insect onto its sticky surface so that Oregon Department of Agriculture insect trappers can detect whether the insidious bug has entered the state.
“We’ve been looking for emerald ash borer for several years but have not yet detected it in Oregon,” says Kathleen Johnson, supervisor of ODA’s Insect Pest Prevention and Management Program. “We have many ash trees in Oregon, both in the urban environment and in riparian areas. This is a pest we don’t want established in Oregon. If these beetles have entered the state, we want to find them early.”
The emerald ash borer has caused extensive damage to ash trees in Michigan and parts of Indiana, Ohio, Illinois, and Ontario, Canada. Infested ash nursery stock has also been found in Maryland and Virginia. Adult beetles are metallic green and about a half inch long. Tree removal is used to eradicate emerald ash borer. Signs of the insect in ash trees include small, D-shaped emergence holes, branch or tree dieback with branch or root sprouting below the dead tissue, and serpentine feeding tunnels in outer sapwood and phloem layers. The exotic wood-boring pest originally came from Asia and is believed to have entered the US for the first time in the 1990s. It was first discovered in the Detroit area in 2002 and officials say it probably arrived in wood packing crates.
Even though Oregon is about 2,000 miles away from the Great Lakes region and even farther from the beetle’s native Asia, the pest can show up via solid wood packing material imported from China, ash nursery stock originating from infested areas of the Midwest, or even firewood brought to Oregon by visiting campers and new residents who have literally moved everything in their possession from their previous homes back east. All those potential scenarios are enough for ODA to keep checking.
“This is the time of year that emerald ash borers, if they are in Oregon, would be emerging from ash trees,” says Johnson.
In the past, ODA survey technicians have simply done visual inspections of ash trees as they went about checking thousands of gypsy moth and Japanese beetle traps throughout Oregon. They have been trained to look for the telltale D-shaped holes in the trees and other signs of the emerald ash borer. This year, ODA is taking an additional step by using the so-called trap trees.
“We are using 40 ash trees that are in a susceptible stage and large enough to be attacked by emerald ash borer, and have planted them at 12 sites in the greater Portland metro area,” says Johnson. “We have stressed each tree by removing at least a three-inch band of bark around the trunk. Purple cellophane is wrapped above the girdled area and a sticky substance is sprayed onto the cellophane. Adult emerald ash borers are attracted to the color purple and to stressed trees. We will peel back the bark in search of signs of the insect as the trap trees are removed in the fall. If the emerald ash borer comes in, we’ll detect it as soon as possible.”The 40 ash trees were donated to ODA by J. Frank Schmidt and Son Nursery in Boring.
There is no reason to believe this year represents any more danger of emerald ash borer showing up in Oregon than any other year. But the threat is real. Wood-boring insects continue to be transported around the world in raw wood products and solid wood packing materials. Large volumes of packing materials and dunnage from Asia are received by Oregon and other west coast ports, making those high-risk locations for exotic beetle introduction. Also, the fact that the emerald ash borer has established in multiple locations back east—including through movement of nursery stock—increases the possibility of spreading the bug from infested areas of the Midwest to the Pacific Northwest. In either case, the emerald ash borer commands a great deal of attention for an insect that has yet to show up in Oregon and is listed as one of the state’s 100 most dangerous invasive species.
Emerald ash borer has already devastated millions of trees in the Great Lakes region. Currently, the US Department of Agriculture has imposed a quarantine in all states where the beetle has been detected. That quarantine prevents host material like firewood, bark, and wood chips from crossing state lines. This is the kind of scenario Oregon hopes to avoid.“The Great Lakes states have tried a strategy of containing emerald ash borer first and then moving ahead to eradicate it,” says Johnson. “They have not been successful and it continues to spread.”
In addition to refraining from bringing in firewood from out-of-state, Oregonians can help by providing an extra pair of eyes. Anyone seeing evidence of the ash-boring insect is encouraged to contact ODA’s Plant Division at 800-525-0137 or the Invasive Species Hotline at 866-INVADER. The public can also learn more about emerald ash borer by visiting oregon.gov/ODA/PLANT/IPPM
So far, there have been no signs of the insect in Oregon. But the time period for emerging beetles has just begun. With the help of the trap trees, their noticeable purple cellophane, and the sticky goo that would secure the insect, officials expect to find emerald ash borer if it is in Oregon—at least in the Portland area. By the end of the season, ODA hopes that no news is good news when it comes to the tree-boring invaders.
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| Gypsy moth spray projects completed in Bend, St. Helens |
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The spraying has been completed, now the traps have been set. The latest battle in the war against the plant-eating gypsy moth took the Oregon Department of Agriculture to Bend for the first ever gypsy moth eradication project east of the Cascades, and to St. Helens to treat the Asian variety of gypsy moth for only the third time in Oregon history.
Both spray projects went smoothly despite some early weather challenges in Bend, where 57 gypsy moths were detected last year. In St. Helens, the eradication effort was in response to last year’s detection of one Asian gypsy moth. This version of the insect pest is potentially much more serious, therefore requiring immediate attention even if only one moth is trapped. Unlike the more common European gypsy moth, female Asian gypsy moths are strong fliers and are attracted to lights, allowing populations to spread much more rapidly. In addition, the Asian gypsy moth feeds on a broader range of host trees, including conifers.
The early morning sound of the helicopter applying the biological insecticide Bacillus thuringiensis var. kurstaki was one of the most noticeable impacts on residents of both locations.
Next up, will be the inspection of gypsy moth traps placed in high density of both treated areas. Those traps will be checked throughout the summer, when male gypsy moths are in the adult stage and would be attracted to the female sex pheremone used in the trap. If no gypsy moths are detected this year and next, ODA can officially declare the eradication project successful.
Traps will also be placed throughout the state as part of ODA’s routine detection program.Gypsy moth is not native to Oregon and is considered a serious pest of trees and shrubs. ODA’s goal is to prevent negative economic and environmental damage to Oregon by loss of foliage on trees, restrictive quarantines on commodities, or loss of favorable fish habitat due to degraded watersheds.
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| Formal declaration brings Oregon closer to animal by-products solution |
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A collaborative effort involving industry and state government is underway to deal with Oregon’s lack of rendering capacity. Participating members of the Oregon Solutions Team signed a Declaration of Cooperation formalizing each team member’s commitment to the issue. The approach is being hailed as Oregon’s best chance of finding an economically viable, environmentally safe, and socially acceptable option for processing dead animals and other organic residue into marketable products.
Governor Kulongoski appointed State Representative Deborah Boone and Dr. Jim Males of Oregon State University to convene a team of public, private, and non-profit partners to develop an integrated strategy. The Governor’s designation of the effort as an Oregon Solutions project assures participation of his staff and appropriate state agencies with other partners.
In 2006, Oregon’s two rendering companies discontinued operations. The closure of these facilities left the state’s slaughtering industry, livestock community, grocery stores, and others with fewer options for dealing with animal by-products. There are currently no in-state rendering options.
The Oregon Department of Agriculture looked to Oregon Solutions as a way to move forward to identify a long-term strategy.
More than $62,000 from 25 organizations has been contributed to fund the Oregon Solutions Animal By-Products Project. Those organizations include agricultural associations, private companies, government agencies and commissions, and non-profit organizations. Funds will support the team through technology assessment and market analysis. The team is expected to have initial results by the end of summer.
It is estimated that Oregon companies must safely dispose of more than 41,000 tons of waste material each year. Finding alternatives to depositing these materials in Oregon landfills or transporting them to Washington or California is the goal of the Oregon Solutions Animal By-Products Project team.
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| Announcements |
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Weed control grants available
The Oregon State Weed Board (OSWB) is accepting applications for noxious weed control grants. Applications are due July 27, 2007. Information: call 503-986-4622, or visit the Web site: http://oregon.gov/ODA/PLANT/WEEDS/grantindex.shtml
Oregon Agriculture: Facts and Figures brochure available
This free brochure provides the most current production value statistics for Oregon’s wide variety of agricultural commodities. Call the Information Office, 503-986-4550 or visit the Web site to download a copy: http://oregon.gov/ODA/docs/pdf/pubs/ff.pdf
New DVD now available, "Oregon Agriculture—A Growing Industry"
This 15-minute DVD produced by the Oregon Department of Agriculture provides a video tour of this diverse industry that will educate all Oregonians about the importance of agriculture. For a free copy of the DVD, please contact ODA at 503-986-4550.
State Board of Agriculture meeting
Pendleton Red Lion Hotel, September 10 and 11, 2007. For more information, please call 503-986-4758.
ODA publications readership-survey
The ODA Information Office needs your feedback on what publications you find useful, and which you would rather not read. Please take a moment and link to our online survey form at: www.oregon.gov/ODA/docs/pdf/0707pub_survey.pdf
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