Home Back Issues February 2009 Economy pummels King Ag

Economy pummels King Ag

| Print |  Email
Archives - February 2009
Sunday, February 01, 2009
wheat.jpg

PENDLETON In 2008, wheat prices soared to a whopping $16 per bushel and then plummeted to $5.50 by the end of the year. Prices currently hang at $5.28, below the break-even mark, leaving farmers facing an uncertain future.

Farmers break even at about $6 per bushel, according to Kevin Porter, former president of the Oregon Wheat Growers League. Shipping to Portland from Eastern Oregon costs an additional 70 cents. “It doesn’t take a calculator to figure out that’s a loss.”

“I have very few complaints because it was a tremendous pricing opportunity, if you played your cards right,” said Craig Reeder, vice president of Hale Farmers near Echo. “The only thing about the market that’s troublesome is the volatility — and the attitudes of farmers have been as volatile as the market.”

In Reeder’s opinion, the farmers who got burned sold too early in 2007 and too late in 2008. But in general, farmers are approaching the 2009 harvest with a positive, albeit cautious, attitude.

Tammy Dennee, executive director of the Oregon Wheat Growers League, says fuel and fertilizer prices were “unpredictably high” and an extra burden on farmers. According to Pendleton Grain Growers, a 2,500-member cooperative that operates a 12-million bushel capacity system, the price of fertilizer tripled in price between 2007 and 2008.

Porter thinks the recession has actually helped rather than hindered farmers, because it instigated the fall in fuel and fertilizer prices. Though fuel and fertilizer prices came down in late 2008, they didn’t drop as rapidly as the price of wheat.

There are strong indicators that fuel and fertilizer prices will be heading back up before the 2009 harvest. When fuel prices dropped, Porter filled all his storage containers in preparation for the 2009 harvest; just one way farmers are trying to pare down their input costs.

“The euphoria of last year sure faded quickly,” says Porter.

JENNIFER FURNISS



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 


 

 

More Articles

The solution to youth unemployment

News
Thursday, February 27, 2014
02.27.14 Thumbnail TeenworkBY ERIC FRUITS

Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.


Read more...

What I'm reading: Brad Smith & Travis Boersma

March 2014
Tuesday, February 25, 2014

Brad Smith, founder of Hot Pepper Studios, and Travis Boersma, president of Dutch Bros. Coffee, share their recent reads.


Read more...

Rapid ascent

March 2014
Tuesday, February 25, 2014
IMG 4255-2BY AMY MILSHTEIN

Kelly Dachtler, president of The Clymb, redefines outdoor retail.


Read more...

Spring thaw

News
Thursday, April 17, 2014
Spring ThawBY JASON NORRIS | OB BLOGGER

The “polar vortex” of 2014 seems to have finally thawed and we believe this change in weather will bring more sunshine to the U.S. economy as well.


Read more...

Branching out

March 2014
Tuesday, February 25, 2014
DSC04185BY LINDA BAKER

A blueberry bush is a blueberry bush — except when it’s a blueberry tree.


Read more...

100 Best Companies to Work for in Oregon [VIDEO]

News
Monday, March 03, 2014

Screen shot 2014-03-03 at 11.26.47 AM

Check out interviews with employees from some of the 100 Best Companies to Work For in Oregon winners and find out what makes their company a great place to work.


Read more...

Spreading the wealth

March 2014
Tuesday, February 25, 2014
HiResBY PAIGE PARKER

A money management firm broadens its reach. 


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS