|| Print ||
|Archives - September 2008|
|Monday, September 01, 2008|
Spiking prices and insatiable demand produce a record-breaking season for Oregon’s farmers.
By Ben Jacklet
Midway through the frenzy of the harvest, Oregon Wheat Growers League president Kevin Porter found himself working as truck driver for the day. His job was to load a thousand bushels or so of wheat into a 70-foot rig, haul it off to the McNary Grain Elevator by the Columbia River, return for another load, and repeat, all day long. Out in the fields, three combines were cutting 30-foot swaths of wheat nonstop and offloading without slowing. By day’s end 10 people, 10 machines and $3,000 worth of diesel fuel had harvested 300 acres of wheat and loaded it into storage for export.
Efficiency is nothing new in Oregon wheat country. What has changed is the money.
Not any more. The wheat price was hovering at around $8 a bushel during the harvest, and if global grain supplies remain constricted and Australia suffers through its third consecutive year of drought, the price is expected to bump up even higher. Wheat hit a record $16 per bushel in February, and while prices have dropped to earth this summer, the market remains strong. Oregon wheat farmers have the option of selling early for twice the price they’re used to getting, or holding out for more.
Wheat growers aren’t the only farmers harvesting with a renewed sense of urgency this season. Spurred by the weak dollar and the ethanol boom, the global marketplace is starved for wheat, hay, grass seed and other major Oregon exports. Prices are up for the vast majority of Oregon’s 225-plus agricultural products with the sad exception of onions. No wonder the Oregon Department of Agriculture is forecasting record revenues.
The strong market for agricultural exports helped convince a major Japanese shipping line, K Lines, to resume service to Portland in July after a four-year hiatus. Exports of Oregon agricultural and processed food products in the first quarter were worth $978 million, which Brent Searle of ODA called “an amazing number and nearly equal to the entire annual [agricultural] exports a couple years ago.”
Unfortunately for farmers, the costs of diesel, fertilizers and farm chemicals are rising just as rapidly as are crop prices. But they are getting paid well enough for what they produce to invest and expand. Agricultural sales trickle far and wide through the Oregon economy, from the John Deere dealership to the grocery store to the farmland real estate market. More money in farm sales means more money for food processing, agricultural services, retail and wholesale trade, transportation, and warehouse storage. Companies such as Ag West Supply, founded in 1932 with five locations in Oregon, are benefiting from the uptick. “We’ve built an aggressive sales plan and we’re ahead of that right now,” Ag West general manager Steve Danner said. “There’s a lot of concern about expenses but there’s a lot of optimism too. We’re expecting a very strong fourth quarter. There’s a lot of older equipment out there that needs to be updated.”
Commodity prices also are reawakening demand for farm properties. The average value of Oregon agricultural land hardly changed between 2002 and 2005, increasing minutely from $1,185 per acre to $1,192 per acre. From 2005 to 2008 it grew by 51% percent to $1,800 per acre.
“The value of agricultural land has increased and the biggest reason for that is the commodity prices,” says Deb Sue Hamby, a Pendleton-based loan officer with the Northwest Farm Credit Services bank. “There have been a lot of outside investor buyers that have been coming into the area buying up land.”
“The farmers are in a very good position for the first time in at least 10 years,” Krueger says. “A lot of them had one hell of a time getting through the hard times but if they’re still standing they are looking at some real opportunities now that the market’s going the other way.”
About 230 miles west of Umatilla County’s arid wheat country, the green fields of the Willamette Valley are lush with growth. Cruising past healthy rows of nursery trees, corn, blackberries, hazelnut trees, wheat and green beans, berry farmer Doug Krahmer has nothing but praise for the climate, soil quality and crop diversity of the Willamette Valley. Krahmer is glad he invested in farmland here when he did. He figures that valley land prices have doubled if not tripled since he bought most of his properties in 1999 and 2000.
Other specialty crops in the valley such as hazelnuts and hops are also doing extremely well, and the bump in commodity prices has encouraged a massive shift back into Willamette Valley wheat. Valley farmers who followed the money years ago from wheat to grass seed followed it right back to wheat in 2008, building makeshift wheat storage areas and securing last-minute freight rail contracts to get their crops to the grain terminals of Portland for export. Unlike dry-land farmers east of the Cascades, the farmers of the valley have many crop options, so they are accustomed to following markets and planting accordingly. They did not benefit significantly from the commodity price increases last year, but they are expected to capitalize in 2008 and 2009.
As chairman of the Oregon Blueberry Commission and a member of the Oregon Board of Agriculture, Krahmer is acutely aware of the risks and opportunities stemming from the current volatility of world markets. He sees great potential in exporting to the burgeoning middle classes of India and China, but like most farmers he identifies the recent price bumps as a double-edged sword. Yes, farmers are making more money (Krahmer rotates wheat on his fields to prepare the soil for berries and was happy to earn income from that crop for a change last year); but at the same time fuel and fertilizer costs are “eating us alive,” he says.
PHOTOS BY FRANK MILLER
Friday, May 22, 2015
BY ANNIE ELLISON
Portland tech veteran Ben Berry is leaving his post as Portland’s chief technology officer for a full-time role producing unmanned aerial vehicles (UAVs) aimed at first responders and the military. Berry’s AirShip Technologies Group is poised to be on the ground floor of an industry that will supply drones to as many as 100,000 police, fire and emergency agencies nationwide. He reveals the plan for takeoff.
Monday, April 27, 2015
BY JACOB PALMER
As a general rule, the more people with autism can be provided with visual cues, the better they will be able to understand and manage their environment. It’s a lesson Tom Keating learned well. The 61-year-old Eugene grant writer spent 31 years taking care of his autistic brother James, and in the late 1980s developed a spreadsheet that created a series of nonsense characters that grew or shrank depending on how much money James had in his account.
Friday, May 22, 2015
BY EMILY LIEDEL
Inside the topsy-turvy world of corporate sustainability rankings.
Monday, April 27, 2015
BY KIM MOORE
Are we too quick to diagnose corruption?
Wednesday, April 08, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
The Wilsonville-based company is targeting GoPro enthusiasts with its latest release. Is spy gear poised to go mainstream?
Monday, April 27, 2015
BY LINDA BAKER
Mohan Nair channels a visionary.
Thursday, April 23, 2015
BY LINDA BAKER
On April 1 I attended a forum at the University of Portland on the sharing economy. The event featured panelists from Lyft and Airbnb, as well as Portland Mayor Charlie Hales. Asked about the impact of tech-driven sharing economy services. Hales said the new business models are reshaping the landscape. “But,” he added, “I don’t pretend to understand how a lot of this [technology] works.”
|100 Best Green Workplaces in Oregon|
|Credit Unions Perspective|
|Hall of Flame|
|The Green Paradox|
|Information of more than 100K taxpayers breached|
|Media CEOs majority of top-10 highest paid|
|Two protesters chain themselves to Shell ship outside of Bellingham|
|PDX Carpet Adidas sell out in limited edition release|
|How to court millennials|
|Wal-Mart wants meat suppliers to improve treatment of animals|
|Scandal negatively impacts Tom Brady's endorsement value|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
The Oregon Entrepreneurs Network (OEN) will be presenting its third annual Entrepreneurial Summit on Friday, June 5 at Castaway in Portland, Oregon.
On June 13th Mayor Charlie Hales will attend nonprofit organization Dream Change’s inaugural Love Summit and will introduce one of its keynote speakers, Dan Wieden of Wieden+Kennedy advertising agency.
34 spots for food, 17 places to sip, and 7 sites to choose a brew beckon visitors.