Sponsored by Oregon Business

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

Epitaph for a Boondoggle

April 2015
Friday, March 27, 2015
BY JOE CORTRIGHT

The CRC is a cautionary tale about how we plan for, finance and invest in transportation infrastructure.


Read more...

How a Utah-based essential oils company cornered the Oregon market

March 2015
Friday, February 20, 2015
BY AMY MILSHTEIN | OB CONTRIBUTOR

Multilevel marketing, health claims and zyto scanner biofeedback machines: How dōTERRA thrives in Oregon. 


Read more...

Meeting Facilities Perspective

March 2015
Tuesday, February 24, 2015
BY KIM MOORE | OB RESEARCH EDITOR

A conversation with Donna Earley, director of sales and marketing for the Salem Convention Center.


Read more...

Downtime with the executive director of Greater Portland Inc.

April 2015
Thursday, March 26, 2015

Janet LaBar, Executive director, Greater Portland Inc.


Read more...

Beyond Bodegas

April 2015
Friday, March 27, 2015
BY JACOB PALMER

Five years in the making, the Portland Mercado — the city’s first Latino public market — will celebrate its grand opening April 11. A $3.5 million public-private partnership spearheaded by Hacienda CDC, the market will house 15 to 20 businesses in the food, retail and service sectors. It has some big-name funders, including the Paul G. Allen Family Foundation and JPMorgan Chase. The project goals are equally ambitious: to improve cross-cultural understanding, alleviate poverty and spur community economic development. 


Read more...

Get on the bus!

April 2015
Thursday, March 19, 2015
BY APRIL STREETER

How the private sector can ride the next transit revolution.


Read more...

Uncertainty about convention center hotel could cost Portland an NBA All-Star Game

The Latest
Wednesday, February 18, 2015
463545460BY JACOB PALMER | OB DIGITAL NEWS EDITOR

NBA commissioner: "I would love to end up having an All-Star Game in Portland. It's really just a function of ensuring that we can fit in town."


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