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Oregon Department of Agriculture
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State of Oregon Agriculture
About this report Place sustainability Transportation infrastructure
State Board of Agriculture Labor reform Energy efficiency
Industry overview Water Invasives
Key policy initiatives Land use and right to farm Food safety
Resource sustainability Agricultural research Extending the harvest
Economic sustainability Farm transition Print the full document
About this report
Cover photo
J. Frank Schmidt Irrigation Specialist Rod Miller
Oregon agriculture is a dynamic, complex mix of many issues, challenges, and opportunities facing our farm, fishing, and ranch communities. People and business rely on a healthy farm sector to sustain the Oregon way of life. As a representative of this great and diverse enterprise, the State Board of Agriculture recognizes this report cannot address all issues and developments. But the board has focused on a list of key factors that it feels are the highest priorities and essential steps towards a brighter future for Oregon agriculture.
 
You will see at least three constant themes throughout this report: Oregon agriculture’s diversity and complexity, agriculture's dedication to sustainability, and the direct relationship agriculture has with all Oregonians. We hope that this report fosters a better understanding and appreciation of Oregon agriculture, and a chance for all Oregonians to join together to address key issues.
 
Oregon growers demonstrate ingenuity and innovation, dedication to the communities they live in, stewardship of natural resources, and a commitment to produce quality products.
 
We commend Oregon's farmers and ranchers for their contributions to our state.
 
State Board of Agriculture
Photo of board members
The State Board of Agriculture advises the Oregon Department of Agriculture about programs, policies, and issues affecting Oregon agriculture.
 
Contact: Sherry Kudna, 503-986-4619

State Board of Agriculture subcommittees (2010)

Government relations, Tom Fessler, Chair

  • Biennial Report to the Legislature
  • Labor, immigration, and minimum wage
  • Tax policies
  • Farm Bill program priorities
  • Legislative contacts and federal issues
  • Governor’s Office liaison
  • Wildlife depredation
  • Renewable energy issues

    • Land use, Pat Dudley, chair

    • Land use policy for agriculture
    • Urban growth management policies
    • Interim review of land use system
    • Agri-tourism use of agricultural lands
    • Utility siting and aggregate mining issues for agricultural lands
    • Right to Farm laws
    • Agriculture in urban environments

    Marketing and Food Safety, Lynn Youngbar, Chair

    • Market development for agricultural products (local, regional, international)
    • Transportation and infrastructure, freight movement strategy
    • Food processing and agri-business development issues
    • Farmers’ markets, direct to consumer, and other local marketing ventures
    • Farm-to-School Program
    • Phytosanitary issues and international trade barriers
    • Food safety programs
    • Small farm assistance
    • Certification programs

    Natural resources, Doug Krahmer, Chair

    • Water, air, and soil quality
    • Water quantity, availability, irrigation efficiency
    • Long-term water strategy
    • Invasive species
    • Pesticides: crop and animal protectants
    • Global Warming Commission

    Current Board of Agriculture members
    Board of Agriculture member profiles 
     
    Industry overview
    Industry photo

    Complexity

    Agriculture is dynamic, complex, and often contradictory.
    • In the US, growers produce some of the highest yields and widest varieties of high quality agricultural products in the world, even while farmers go broke because market prices are below the cost of production.
    • Grocery stores are brimming with food, yet foodbanks are faced with the highest demands since the Great Depression.
    • Nutritional and health information are readily accessible everywhere, yet 64 percent of adults are overweight or obese, and the prevalence of obesity in children (aged 6 to 11 years) has almost tripled over the last 20 years from 6.5 percent to 19.6 percent. For teenagers, the obesity rate has more than tripled from 5 percent in 1980 to 18.1 percent in 2008.
    • Sustainable practices in agriculture are more prevalent than at any time in the past 50 years, yet the public perception of agriculture is often negative, viewed as dirty, "factory derived," and an industry that leaves too big a carbon footprint.
    • Local and direct marketing is coming more into the limelight, yet buyers outside Oregon also relish Oregon's top quality products and purchase more than 80 percent of Oregon's agricultural output.
    • Modern technology and electronics have made more information accessible to the public than at any time in history, yet most of the consuming public have lost a real connection to Oregon's working landscapes: farms, fisheries, and ranch lands that provide consumers with food and fiber.
    • The world population is projected to increase 50 percent or more in the next 30 years, from 6.5 billion to 9 billion people-many more mouths to feed on a decreasing amount of farmland and water resources. Yet some people have concerns with the application of modern technology in seed engineering and other venues that can enable higher yields on less ground with fewer inputs and chemicals.
    Oregon's growers are in the pitch of these issues, sorting out what to grow, which markets to serve, and how to produce crops and animals while staying economically viable in a shifting sea of opinions, perspectives, markets, and policies.

    Oregon owned/Oregon grown

    Picture of DiversityDiversity and quality are two words that describe Oregon agriculture. A mild climate and good soils make Oregon a great place to produce more than 250 commodities. Oregon farms are just as diverse, ranging from a few acres to thousands of acres in size. But nearly all are family farms. About 85 percent of Oregon's farms are operated by sole proprietors. Another 10 to 12 percent are organized as family partnerships or family corporations. Less than 2 percent of Oregon farms are non-family corporate entities. "Farmer owned, farmer grown" is a good slogan for Oregon agricultural production.
     
    Economies of scale are important to compete in a world economy, but quality is just as important. The chart [1] indicates the breakout of farm size, economic output, and acres managed by Oregon producers.

    Sustainability

    Those involved in Oregon agriculture are guided by values and principles that can keep the industry sustainable-economically, environmentally, and socially. New management practices and techniques are constantly adopted to cut costs and generate a higher net income. Farmers and ranchers, fisherman and foresters in Oregon demonstrate sound stewardship of the land and water that sustains their way of life. Keeping agriculture, forests, and fisheries viable preserves the communities and rural heritage that all Oregonians value.

    Change and challenge

    Dealing with changing consumer demands, food safety issues, certification programs, labor uncertainties, fluctuating energy costs, regulatory changes, pest and disease issues, irrigation water limitations, and international trade complications is now part of the daily effort to produce food, fiber, fuels, and other goods.
     
    A succession plan to pass on the farm is critical to the long-term success of farm families as they face complex estate tax issues, land use, and family relationships; the average age of operators is now surpassing 57 years.
     
    Sustainable agriculture in Oregon means adapting to ever changing market and consumer preferences. Change is always a challenge, and Oregon growers are making strides to diversify production, utilize the latest technologies, employ aggressive stewardship of natural resources, and pay close attention to trends. All this helps, but doesn't protect growers from the external forces of the wider economy.

    Economics

    Value of Farm and Ranch ProductionAgriculture and related economic activity accounts for over 12 percent of Oregon's economy; agricultural products lead all Oregon exports by volume and rank second by value; and agriculture creates more than 234,000 jobs in the state (422,250 if we include food service and drinking). For decades, the value of agriculture measured by farm output has predominantly trended upward, playing a key role in all regions of the state's economic footprint. Six of the top 10 agriculture counties in Oregon are classified as urban counties (See Chart 4).
     
    Chart 2 demonstrates how Oregon growers have collectively increased output and productivity in an upward trajectory for decades. However, the recent recession has resulted in significantly lower prices paid to growers and decreased consumer demand. Farm production expenses (costs) have also accelerated over time, leaving net farm income nearly flat for the past two-and-a-half decades.
     
    The years 2009 and 2010 can best be described as a whiplash for agriculture. The farm commodity markets went up like a rocket in 2008 and came crashing down with equal impact in 2009, losing up to 50 percent of value for some crops and an industry-wide loss of 15 percent in production value. On the plus side, overall farm expenses (nationwide) were down 6.5 percent in 2009, making revenue losses somewhat less brutal than they would have been with static or increasing input costs.
     
    Many farmers are struggling, notably those in grass seed, nursery and greenhouse, dairy, wheat, and beef cattle. However, a drought in Russia affecting wheat production has rallied US wheat prices. Beef and dairy/milk prices saw a marginal increase in the latter half of 2010. Grass seed growers have adjusted to poor prices by dumping 160,000 acres into other crops over the past five years, from the peak of 500,000 acres. Most of this acreage has migrated to wheat, oilseeds, specialty crops, vegetable seeds, dry beans, and hay.
     
    Just as 401K funds and other retirement accounts have depreciated in value for private or public sector employees, many farmers have lost decades of investment value and equity from their operations. As market prices to farmers collapsed, loans had to be repaid out of savings or selling off assets in the past two years.

    Leading crops and commodities

    Hay is grown on more land than any other crop in Oregon, topping one million acres. Alfalfa hay is the premium variety, high in protein and roughage, and grown primarily for dairy cattle on 400,000 acres. More than 600,000 acres of grass hay is also grown, feeding a million head of beef cattle, horses, alpacas, and other animals through winter months when pasture is dormant in most of the state. Hay prices rose to over $200/ton in 2008, then followed the economic decline to about $140/ton by 2010.
     
    Wheat is grown on more than 970,000 acres in Oregon. Leading wheat producing counties include Umatilla, Morrow, Sherman, Wasco, and Gilliam. Wheat acreage in the Willamette Valley increased from 25,000 acres in 2007 to more than 100,000 acres in 2008 due to higher market prices for wheat and because of the need for an alternative crop to grass seed. Wheat acreage statewide is up 8 percent from 2008, and the acreage in the Willamette Valley is now estimated at 180,000 acres. Canola and other oil seeds are gaining acreage statewide as demand increases for both edible oil and biofuel.
     
    Nursery and greenhouse products topped the list of all agricultural commodities in production value over the past 10 years, peaking in 2008 at $1 billion in sales. The housing crisis directly affects demand for landscaping materials, and the sector experienced a 30 percent decline of sales value to $732 million in 2009.
     
    Erratic weather is proving to be a significant factor in fruit and vegetable production. Cherries, pears, apples, grapes, tomatoes, and many other fresh produce items experienced yield declines, market delays, and other challenges due to a very wet and cool spring in 2010.
     
    As the general economy slowly recovers, and export markets rebound, agriculture will again see an upswing. But it may be well into the 2011 or 2012 season before profitability returns.
     
    Oregon is also well-known for its succulent Dungeness crab and pink shrimp, two of the leading commercially harvested species by Oregon fishermen; many other species are also commercially harvested. Fisheries brought in $104 million in landed fish value in 2009, the 2nd highest total amount in the past 10 years; perhaps a sign that the recession has bottomed out as consumers are moving back into purchasing more seafood-and a good sign for Oregon's coastal communities where many jobs are tied to the seafood sector.

    Food prices

    Despite the recent plummet in commodity prices, food prices are unlikely to fall as dramatically. This is because farm commodity prices account for a relatively small percentage of retail prices paid by consumers. Prices paid to growers were not the primary driver pushing food prices higher in 2008 and won't be the anchor pulling them down. Lower fuel prices in 2010 have helped temper food price increases, but credit, labor, electricity, packaging, and other costs continue to move upward, putting pressure on retail prices.

    Small local growers and outlets

    A growing local food movement provides producers with new opportunities to sell directly to urban consumers. At the same time, broader public interest in food, local sourcing, and sustainability is growing. These developments are creating interest in small-scale farming, agriculture at the urban-edge, public vegetable gardens, and even backyard gardens that are managed by private companies (like lawn companies that provide services for homeowners). The FoodHub, an online food/ag exchange, is another tool recently launched to help match buyers with local growers.

    Exports

    Exports remain critical to Oregon agriculture even as locally sourced food gains favor in many Oregon communities. Roughly 80 percent of what Oregon farmers produce leaves the state and goes to buyers who value Oregon quality products. Nearly 40 percent of total production leaves the country, primarily to Asian and European markets, compared to a national export rate of 25 percent. Transportation infrastructure and container shipment costs are significantly important to Oregon producers.
     
    Maintaining a competitive transportation system is important to the economic viability of producers. Rail and port services are the most efficient and lowest carbon-intensive modes of transportation. The Port of Portland handles over 47 percent of the entire exports of wheat for the US, making it the nation's largest wheat and barley export gate, and third largest in the world. Deep draft ships (40 feet or more) increasingly call on the Port of Portland since the channel has been deepened to accommodate the vessels. Up to 1,000 additional 20 foot containers can be loaded on these larger-draft ships, leading to cost savings for shippers, consumers, and the environment.
     

    Oregon's top 10 ag producing counties, 2009: Total Farm Value Sales

    Marion $493,022,000
    Umatilla $369,549,000
    Morrow $345,374,000
    Clackamas $302,449,000
    Klamath $241,298,000
    Washington $238,945,000
    Linn $237,208,000
    Malheur $227,982,000
    Yamhill $222,564,000
    Polk $162,055,000

    Oregon's top ten commodities, by value

    Crop / Commodity 2007 2009
    Greenhouse & Nursery Products $ 988,000,000
    		 $732,570,000
    Hay, all
    		 $ 470,040,000
    		 $464,832,000
    Cattle and calves
    		 $ 465,249,000
    		 $420,628,000
    Grass Seed, all $ 507,732,000
    		 $322,896,000
    Milk
    		 $ 408,639,000
    		 $307,976,000
    Wheat, all
    		 $ 384,691,000
    		 $223,633,000
    Potatoes, all
    		 $ 156,941,000
    		 $151,293,000
    Onions $97,524,000 $102,197,000
    Christmas trees
    		 $ 109,267,000
    		 $100,949,000
    Pears, all
    		 $ 89,417,000
    		 $84,313,000
    Key policy initiatives
    In this report to the Governor and State Legislature, the State Board of Agriculture provides the following high level policy statements that comprise the fundamental elements of viable and sustainable working lands and waterways. Sustainability is a much used term. In this document it means the long-term viability of our farms, ranches, fisheries, and forests with respect to:
    1. economic profitability and contributions to the state's economy and job creation
    2. ecological benefits and natural resource stewardship
    3. social and community ties that link rural and urban, farm and city, grower and buyer.
    Every topic area in this report is a component of one of these pillars; these issues are elaborated further in the topical areas within this report:
    • Awareness: Recognize that agriculture, forestry, and fisheries are intrinsically tied to the health and well-being of people, communities, and the environment when policy decisions and laws are made.
    • Do no harm: Do not enact laws that put Oregon's agricultural producers on an uneven playing field versus competitors (domestically or internationally) with respect to regulatory requirements, tax policies, management tools, or technologies.
    • Resources: Dedicated funds, paid for through fees by growers and food processors for purposes specified in law, should not be "swept" by the Legislature for other uses.
    • Economics: Recognize that natural resource industries, including agriculture, forestry, fisheries, and related recreational activities, account for over one-third of Oregon's total economic production and one-third of Oregon's employment. Agriculture accounts for the 2nd largest economic engine in the state, generating over $25 billion in output and supporting over 240,000 jobs. Agriculture is the single largest volume of exports from Oregon and ranks 2nd in export value. Create and maintain the legal, tax, regulatory, and business environment that supports this economic engine!
    • Markets: Recognize and support the development of markets in all venues—locally, regionally, and internationally—to sustain the diverse farm size and commodity types unique to Oregon agriculture, and to bring traded-sector (export) dollars into Oregon.
    • Food processing: Recognize that food processing is the natural extension of agricultural production. Food is not "manufactured," but is grown and processed—a viable and vibrant food processing industry is necessary to maintain a viable production industry.
    • Transportation infrastructure: Develop a comprehensive and integrated state freight strategy. The strategy should address all modes of transportation, including highway, rail, waterways, aviation, pipeline, and all kinds of domestic and international freight.
    • Land: Maintain strong support for Oregon's land use system as stated in ORS 215.243(2): "The preservation of a maximum amount of the limited supply of agricultural land is necessary to the conservation of the state's economic resources and the preservation of such land in large blocks is necessary in maintaining the agricultural economy of the state and for the assurance of adequate, healthful and nutritious food for the people of this state and nation."
    • Water: Immediately embark on bold, innovative, and collaborative efforts with irrigators and other users to capture, store, efficiently use, reuse, and increase the quantity of available water. Maintain resources in water quality initiatives to assist growers with restoration and enhancement.
    • Labor and jobs: Urge Congress and the President to quickly pass immigration reform legislation so employers and employees know the rules and processes for legal employment in agriculture. Ensure state regulations support a viable farm workforce.
    • Productivity: Investments in research and OSU Extension are critical to help growers meet the monumental challenge of feeding the world in a healthy way. Our state must invest in agricultural systems based on science that support the economic viability of growers, the ecological sustainability of natural resources, the strength of our communities, and health of our citizens.
    Resource sustainability
    Photo of Doug Krahmer
    Water, soil, and air quality
    "The soil I farm, the native areas I manage, the water I apply to the plants I grow, and the air quality around me are my most important assets; they enable an economically viable and environmentally sustainable operation. Most commercial growers are keenly aware that the management practices they use affect the quality of their land, water, and other natural resources. We work hard at being good stewards. We have many partners in these efforts, including the Oregon Department of Agriculture, the US Department of Agriculture agencies, local Soil and Water Conservation Districts and watershed councils, the Oregon Watershed Enhancement Board, and private consultants that help keep our business healthy even as we work to sustain our resources. We all have the same goals—working lands that provide economic benefits to our state, quality products to our citizens and the world, and enhanced natural resources through sustainable practices."
     
    Doug Krahmer

    Policy recommendations
    1. Maintain support/funding for Oregon Soil and Water Conservation Districts (SWCDs) which provide on-the-ground technical support to grower projects that sustain and enhance land and water.
    2. Recognize ODA’s expertise in water, soil and air quality related to agriculture, and ensure ODA's key role in strategy development for statewide policies.
    3. Maintain tax credits and funding to growers who adopt practices and participate in programs that encourage energy efficiency, sustainable resource management on working lands, wetland restoration, riparian restoration, fish screens, and related projects.
    4. Continue supporting proactive, voluntary measures that enable farms and ranches to maintain and enhance water quality, including the Oregon Plan for Salmon and Watersheds.
    5. Support research into climate change mitigation and adaptation strategies for growers.

    Agricultural perspective
    Today's successful agricultural operation maintains the sustainability, availability, and quality of agriculture's key resources-soil, water, and air. More than 1,100 farms in Oregon are century farms or ranches, operating in the same family for more than 100 years. No other Oregon industry can claim that level of continuity to community, resource sustainability, and contribution to the state's economy.
     
    "Over 30 million acres of Oregon are privately owned, and more than 85 percent of these lands consist of cropland, rangeland, and forestland, making stewardship by private landowners critical to the health of our state's natural resources," said USDA State Conservationist Ron Alvarado. Native plant maintenance and restoration is also an important component of good resource stewardship by private and public land managers.
     
    Growers employ cutting edge technologies, strategies, and collaborative efforts to maintain, enhance, and protect Oregon's working farm and ranch lands. Examples of some of their accomplishments include the following:

    Water quality

    • All container nurseries in Oregon capture and reuse or recycle irrigation water.
    • Confined animal feeding operations, (CAFOs-farms that confine animals and store manure part of the year) must have a waste management plan, which ODA reviews to ensure it meets the zero off-site discharge standard. All permitted CAFOs are inspected at least once a year.
    • Watershed-level agricultural water quality plans incorporate water quality requirements established by the Department of Environmental Quality (DEQ). ODA assists farmers and ranchers with crop and livestock management strategies to help keep waterways clean while allowing growers to stay competitive.
    • Many Oregon producers install screens to protect and keep fish from getting trapped in irrigation waterways.

    Soil quality

    • Total cropland erosion declined by about 54 percent from 1982 to 2007 as growers changed tillage practices, added buffers, and idled highly erodible land from production.
    • More than 600,000 acres of private farmland in Oregon are enrolled in various conservation programs that enhance wildlife habitat, restore riparian areas and wetlands, filtrate rain and irrigation water, and stabilize soil.
    • Growers play a critical role in noxious weed control. Weeds can easily overtake working lands and restored/preserved areas.

    Air quality

    • Participation in the Dairy Air Quality workgroup to assess dairy methane and other emission issues.
    • Development and adoption of alternatives to Willamette Valley field burning, a practice largely eliminated by the 2009 Oregon Legislature. Many grass seed growers have experimented with other ways to remove straw and control pests and diseases, despite limited economically viable options.
    • Greenhouse gases (GHG) are largely circular in agriculture. While it takes energy and inputs to produce food and fiber, crops take up carbon dioxide and other air constituents, sequester (store) it in their plant and root systems, and provide air "purification."

    The challenge
    Research helps growers understand the need to change their resource management. But implementing change too quickly can have an adverse impact.
     
    The way climate change is addressed could greatly impact agriculture. Greenhouse gas emissions from agriculture are from four primary sources: 1) nitrogen fertilizer, 2) animal agriculture (methane and nitrous oxide), 3) soil disturbance, and 4) carbon emissions from operating equipment. Significant research is needed in these areas to enable agriculture to adapt to new practices that: 1) are economically feasible, 2) sustain or enhance yields, 3) utilize on-farm resources in a sustainable manner, and 4) support local communities.
    Economic sustainability
    Photo of Jan Kerns
    Farm costs and profits
    "Economic viability of a farm or ranch is the core of sustainable agriculture. The other elements of sustainability only exist if the farm stays in business.
     
    Producers know they must control costs as they bring the product to market in a timely fashion. They often make adjustments to production and crop selections while anticipating unpredictable markets. Increasingly, producers recognize that maximum production is not necessarily the same as optimum production.
     
    Farmers also buy inputs (seed, fertilizers, etc.) at retail prices but generally sell at wholesale prices. Direct marketing works for some growers, but not all. Even those that get into branded niche markets and retail certifications find extra costs. Increasing food safety requirements create more paperwork. It takes additional time and cost to assure traceability and verification, and comply with consumer-driven and regulatory audits. Producers would benefit from more sales or higher prices to reflect these challenges."
     
    Jan Kerns

    Policy recommendations
    1. Ensure a favorable tax system for farms and ranches, that include:
      • farmland taxed at farm-use rates, not speculative land development rates.
      • farm inventories, perennial crops, equipment, and irrigation facilities are exempt from taxation.
    2. Carefully evaluate the economic impact of proposed regulations, laws, taxes, or restrictive actions on agricultural businesses of all sizes before taking action.
    3. Support federal and state laws that provide growers the right to pool resources to act as cooperatives, collectively marketing, processing, selling, or negotiating in the marketplace.

    Agricultural perspective
    Wouldn't grocery shopping be interesting if farmers could bill for their food like doctors bill for their services? Many professional services send customers a bill based on their time, use of equipment, materials, disposal costs, and overhead. Farmers are professionals at growing food but don't customarily send a bill for what they produce. It generally works the other way around—the buyer tells the grower what they are willing to pay, and if the grower doesn't accept, the buyer finds another grower who has a lower price, pitting farmer against farmer.
     
    Therefore, individual growers have the incentive to plant more acres, increase their volume of product, and spread costs across more units. It appears profitable for an individual farm to expand production, but the collective actions of all farms can lead to a decline in profits for everyone. Growers with higher cost margins can be forced out of business. Consumers benefit from this increased efficiency, but for growers it is a continuous treadmill in a purely competitive marketplace for commodity crops and livestock.
     
    To partially address these marketplace issues, Congress passed the Capper-Volstead Act in 1922, allowing growers to pool their crops or products and bargain with input suppliers and buyers over prices through cooperatives. Effectively managed, cooperatives can be beneficial tools for growers. Tillamook Cheese, NORPAC Foods, Blue Diamond Growers, and Pendleton Grain Growers are examples of successful cooperatives. Unfortunately, some cooperatives have not survived.
     
    On average, growers receive less than 20 percent of the final retail food dollar spent by consumers, and studies show growers shoulder a disproportionate amount of shipping costs from farm to wholesale levels.
     
    US consumers now enjoy the lowest cost of food anywhere in the world at any time in history, spending (on average) about 9 percent of their expendable income on food, whereas consumers in most other countries lay out considerably more.
     
    More recently, many producers have adapted their crops or production methods to reflect changing market demands, also documenting their stewardship through certification of specific farm practices. Branding products by identifying a unique quality can move goods out of the commodity marketplace and allow the grower to be a price maker rather than a price taker. Community Supported Agriculture (CSA) is an emerging model that shows promise with consumers "subscribing" or contracting production from a grower before planting, ensuring a market and profit margin. However, any type of specialty, niche, or value-added product development requires extra time and expense to the grower, including on-farm processing, marketing, and transportation.
     
    Other "tools" in the profitability toolbox include crop insurance, hedging crop prices through market trading (if applicable), closely tracking and managing on-farm costs and inputs, and diversifying what is produced on the farm.

    The challenge
    Agriculture comes with some inherent risks, such as weather and pests. Adding on more unexpected or additional risk creates uncertainty and cost. That is where state and federal tax policies and regulations can affect farm profitability. Businesses built around biological systems cannot easily change their structure or dynamics. Inherent risks are high and margins are thin. Growers would deeply appreciate government at all levels keeping this in mind, consulting with growers on issues that affect them before proposing changes, and tailoring changes for a dynamic sector where "one size fits all" is a difficult fit at best.
    Place sustainability
    Photo of Lynn Youngbar
    Ties to communities, markets, and people

    "Historically, agriculture, fishing, and forestry tied together the land, the people and their communities. Our communities were sustained by the agriculture sector. In turn, our communities supplied workers, transportation, and markets. With the resurgence of interest in knowing where our food comes from, people are more supportive of farming and ranching, and the quality products they bring to us. People are making the connection between fresh local food products and preserving farmland, and realizing that ‘eating local’ is a vote to sustain Oregon's agriculture base. Our farmers' and ranchers' ties to the land and its production promote community sustainability because of their long-term commitment to place.

    As we support our local farm and ranch community, it supports us with over 234,000 jobs throughout the food system in Oregon, and provides an ongoing commitment to preserve the open space and environment we all value."

    Lynn Youngbar


    Policy recommendations
    1. Recognize and support the need to develop markets in all venues—locally, regionally, and internationally—to support the broad spectrum of Oregon agriculture and to bring traded sector dollars into Oregon.
    2. Support local farm venues, such as farmers' markets, roadside stands, farm-to-school programs, and local sourcing of food products for institutions, hospitals, prisons, colleges, etc.
    3. Support certification programs that enable growers to tell their story and gain access to new markets, while ensuring that claims are truthful and subject to third-party confirmation.
    4. Support economic development efforts that create food processing opportunities, consolidated freezer storage and shipping, and related infrastructure that enable local growers to be the engine of new jobs and community food functions.

    Agricultural perspective
    Agriculture, including fishing, is a permanent part of Oregon’s economy. Many farms have historical roots tracing back over 150 years in the same family. And, there are many new farmers—often growing a variety of crops on small acreage and selling their products direct to consumers and institutions around urban areas. This continuum of farm types and sizes is evidence that agriculture will continue to sustain Oregon communities into the future.
     
    Agriculture supports our communities by
    • providing nutritious food that connects all citizens with growers and fishers at farmers markets, farm stands, community supported agriculture, eating establishments, and grocery stores.
    • providing the wonderful green plant products used in yards, streets, and parks for landscaping, and to replant forests harvested for sustained yields.
    • creating jobs—more than 234,000 throughout the food system in Oregon—including input suppliers, on-farm employment, food processing establishments, marketing, wholesale and retail trade.
    • donating produce to food banks and other outlets that support seniors, low-income families, and the unemployed.
    • providing the scenic landscape and open spaces we all value.
    • establishing a vital link between urban and rural Oregon.

    Reconnecting urban with rural, farm with city, and food grower with food consumer is an urgent need. It's beginning to happen.
     
    While most of Oregon's farm products are shipped to regional, national, or international markets (80 percent leaves the state), there is a renewed interest in nearby farms to satisfy local food and fiber needs. Not only is the public showing an increased interest in their food source, but our communities take pride in the farms, ranches, and forests that surround them and the bounty they produce. Portland and Eugene are recognized as ‘foodie’ communities, spawning interest in boutique food processing and urban agriculture, including backyard, community gardens, school gardens, and small acreage farms.
     
    Growing awareness and interest in food provides huge opportunities for all of agriculture to explore new markets—local or far from home. The market demands that more products be certified as to their location, growing and processing methods, and resource management. While much of this is human health driven, there is also an increasing awareness that farming and processing methods impact soil, air, and water. Consumer education is an important component of certification to help the public make buying decisions based on facts and science as well as values and needs. Ideally, producers can receive appropriate compensation for the quality of their product and care of their operations.

    The challenge

    Farming, ranching, and the processing of food and plant goods in the US are highly regulated at the state and federal level. For farms to be viable, they must know the rules, be able to grow their products profitably, and have markets to sell to, nearby or far away. Processors need access to high quality products and must be able to meet high standards in their facilities. Many of the medium to large producers have the economies of scale and experience to grow, process, or market their products.
     
    Newer farms tend to be smaller and focused on local markets. They are less familiar with regulatory requirements. But, developing innovative ways to ensure all producers and processors—regardless of size—meet an appropriate level of food safety, environmental stewardship, and workforce standards without undue economic cost is a critical challenge. This is especially difficult during an era of drastically reduced budgets for regulatory programs like ODA's Food Safety Division.
    Labor reform
    Photo of Tom Fessler

    "Labor is still one the key issues facing Oregon agriculture into the future. Technology allows growers to continually strive for more efficient production by fine tuning practices. We use variable-rate applications for our crop nutrients, GPS to steer our tractors and equipment, and yield monitoring on combines. All of these practices need highly skilled people to operate. But we also need highly educated newcomers to our farms, and a workforce that is competent, available, legal, and willing to work in planting, weeding, irrigating, pruning, and harvesting our crops.

    One out of 10 jobs in Oregon has its roots in Oregon agriculture. To keep agriculture viable, It is criticly important that we ensure quality farm products for our consumers—to do so, we must have the necessary workforce. Congress must resolve the untended business of our borders, our immigration laws, our workforce status, and our economic reliance on labor as the single largest cost component of farming in Oregon."

    Tom Fessler

    Policy recommendations
    • Enact state-level farm worker bargaining laws that provide appropriate safeguards to all parties, ensure workers have the ability to organize under secret ballot procedures, and remove the threat of boycotts that damage Oregon businesses.
    • Ensure Oregon labor regulations allow for an adequate and available workforce.
    • Support state educational programs that improve training and retention of farm workers and others in natural resource sectors. Support other outreach efforts to educate Oregon's students and future leaders about natural resource careers and ag issues. Ensure agriculture and natural resources are central to the implementation of the "No Child Left Inside" (HB 2544) initiative for K-12.
    • Urge Congress and the President to quickly pass immigration reform legislation so employers and employees know the rules and processes for legal employment in agriculture.

    Agricultural perspective
    American agriculture is in a bind, and Oregon agriculture is not far behind.
     
    Oregon growers rank fifth nationally in total number of hired farm workers and wages paid to employees. However, Oregon farm sales rank 26th in the US, and Oregon growers pay proportionately higher labor costs than nearly any other state. Oregon's micro-climates and regions that support an abundant supply of fruits, vegetables, nursery/landscape, and other specialty crops rely heavily on labor-intensive activities. As more operations convert to organic production, the demand for labor increases even more.
     
    More than 10,000 Oregon family farms hire 58,000 non-family employees (annual average) to help with the work. Peak season employment can reach nearly 110,000 during harvest.
     
    Workers eager for farm jobs have long migrated from areas south of the US border. They learn key skills and work hard. Unfortunately, a majority are in the US as undocumented workers. So while 98 percent of Oregon's farms and ranches are owned and managed by family farmers, the hired workers increasingly come from Mexico and other countries in Central America.
     
    Some argue that higher wages will bring more domestic workers, but wage appears to be less of an issue than the type and intensity of the work.
     
    Despite recent interest by some US citizens seeking internships or farm work—mostly on small and organic operations—a majority of those looking for jobs never make their way to farms despite high national unemployment.
     
    Agricultural employers support three major policies to ensure a stable and legal agricultural labor force:
    1. Enforcement of employment and immigration laws.
    2. Implementation of a workable, affordable, and timely temporary worker program which can bring in foreign workers at critical periods, and then return them to their native country when the work is finished.
    3. Establishment of a clear avenue toward legal status, with appropriate requirements attached, for workers already in the US.
    Implementing enforcement without resolving current worker status and providing a temporary worker program leaves employers and employees in jeopardy, and criminalizes them—with no effective remedy.

    The challenge
    Oregon's agriculture sector needs the US government to enact appropriate immigration and documentation procedures to enable an adequate and legal workforce. Current temporary guest worker programs are costly, overly bureaucratic, and unworkable under present regulations. Agriculture faces an uncertain future, with an estimated 50 to 70 percent of the agricultural workforce improperly documented. This is not unique to Oregon or to agriculture, but especially in agriculture finding local replacements for these workers is very difficult. An entire year's crop can be at risk. Today's farm workers are skilled in machinery operation, pruning, irrigation management, and many other tasks that limit the ability to rapidly place untrained workers in this specialized workplace.
    Water
    Photo of Bob Levy
    Lifeblood of agriculture and society
    "Water is arguably our most important natural resource. We would not survive without it. Oregon faces future challenges in balancing its water needs for all uses. Yet, Oregon must proceed cautiously.
     
    Oregon agriculture is on the cutting edge of water use technology—developing low-water use plant varieties, researching geology for underground storage locations, mapping geography to determine optimum production areas, and continuously developing crop science technology. These tools allow Oregon to be uniquely situated for agriculture and high yield crop production. However, water is a limited resource. Future considerations must support agriculture through water availability, source development, sustainability, conservation, and reuse. Oregon’s future viability depends on water use for agriculture as a means for economic stimulus, environmental protection, sustainability, and the continued ability to feed the citizens of our state and the world."
     
    Bob Levy

    Policy recommendations
    1. Immediately embark on bold, innovative, collaborative efforts to capture, store, efficiently use, reuse, and improve water quantity. Fund efforts toward storage strategies, delivery options, new technologies, conservation, and implementation timelines.
    2. Follow up the 2007 investment in studies and grants, and continue the water basin planning process to establish baseline water availability, peak flows, and demands.
    3. Immediately fund statewide 50-year water assessment needs for anticipated demands related to all uses (fully accounting for an increase in demand for agriculture and expanded acreage opportunities). These projections should anticipate potential climate change impacts with more rain and less snowpack during winter months.
    4. Protect existing water rights by supporting the priority right established in common law to access and use water for agriculture. Irrigation (and production of high value crops) creates higher farm property values, a robust local property tax base, and a vigorous farm economy.
    5. Fund a water quantity position at the Oregon Department of Agriculture.

    Agricultural perspective
    Water is a necessity for much of agriculture that sustains our society. In Oregon, Irrigation is used on about half of the state's total crop land (1.7 million acres) by nearly 45 percent of Oregon growers. Yet this irrigated ground produces over three-fourths (77 percent) of the value of all harvested crops.
     
    Water volume is a somewhat fixed amount. But water use can be extended by efficiency improvements and application of innovative technologies to capture, store, and distribute water, based on need and timing (winter capture, summer distribute).
     
    Oregon's irrigation systems are some of the most sophisticated in the world, using state-of-the art technology to capture, move, distribute, and place water for use with crops. Advancements over the past 25 years include low-pressure systems and sprinklers, variable speed pumps that adjust to water usage needs, soil moisture testing linked to weather data and computer controlled irrigation, and central pivot systems that are efficient and economical.
     
    Other agriculture technologies that "extend" water include better seed and crop varieties, improved use of soil amendments and management activities, and innovative mechanization. These practices, coupled with irrigation on crops, have increased yields over 500 percent since the 1930s. Technological innovation helps put every drop of water to optimal use.
     
    There is an upward trend in the number of Oregon producers adopting changes resulting in energy and cost savings: 4,982 Oregon farms reported making changes in the past five years to their equipment or management practices that reduced energy use or conserved water.
     
    Irrigation enables more production on less land. For example, grain production can increase two to four times on irrigated land. Even as the world's dependency on increased food production (and water) mounts with population growth, available farmland is being lost, making efficient use of water especially critical.
     

    Plants get thirsty and rainfall is not always predictable, adequate, or crop appropriate. Fresh fruits and vegetables, vegetable seeds, and alfalfa hay require summers with enough dry, warm days to allow crops to mature with minimal fungus and plant disease. That is why 80 percent of US fruit and vegetable production is conducted in arid areas under irrigation. Unlike corn, soybeans, or wheat that may be profitably grown in the Midwest under rain-fed conditions, most fruits and vegetables require water in managed amounts at certain growth periods.

    The challenge
    Oregon relies on irrigation to produce the crops that account for over 75 percent of the state's harvested value. Water is integral to the viability of farms and rural communities, jobs, food processing, and transportation of goods. How will the state manage water in the future to sustain and support our agricultural heritage? Can we balance the water requirements of agriculture with the needs of others, including fish, wildlife, native tribes, urban communities, and businesses? These and other tough water decisions need to be addressed through the state Integrated Water Resources Strategy.
    Land use and right to farm
    Photo of Pat Dudley

    "Oregon is a national leader in protecting farmland from urban sprawl and commercial development. A cornerstone of that success has been Exclusive Farm Use (EFU) zoning, incorporated into Oregon law in 1961. One of the State Board of Agriculture's primary missions is to maintain vigilance in the face of political and economic pressure. There is growing pressure to expand the list of non-agricultural activities that are potentially incompatible with surrounding farm uses. The watch-list includes gas pipelines, power lines, wind farms, destination resorts, and the endless hunger to expand urban growth boundaries onto high-value and other important farmland.

    Our best hope to secure Oregon's agricultural land for the future is for the non-farming public to understand that productive farmland is an irreplaceable resource that sustains us all, and to support that concept when voting. Our challenge is to get the general public out to Oregon's farmland to see for themselves where their food comes from, without interrupting essential farming activities."

    Pat Dudley


    Policy recommendations
    1. Discourage expansion of urban growth boundaries (UGBs) and urban reserves onto high-value farmland.
    2. When UGBs and urban reserves are proposed to expand onto such lands, they should not be permitted without requiring the establishment of protection measures for agriculture, such as buffers and setbacks located within the urban area. Added protections to the area's remaining high-value farmland base, such as adequate rural reserves, should also be required.
    3. Support strong Right to Farm (RTF) laws that shield producers from nuisance lawsuits to curtail traditional and accepted agricultural practices.
    4. The Board of Agriculture opposes any additional non-farm permitted uses in prime agricultural lands and recommends a re-examination of current permitted uses with the goal of reducing those permitted uses.
    5. Find a careful balance between on-going commercial agricultural operations and consumer-oriented activities on agricultural lands (agri-tourism, weddings, events, wine/ag tours, etc.)

    Agricultural perspective

    Farmland loss and population growthLand in agricultural use can be viewed as a biological production facility. Sunlight, land, water, nutrients, and skilled management provide everything necessary to transform seeds and plants into crops and products for humans. Even livestock, which provide such products as eggs, milk, and meats, make use of the land and what it has to offer. Properly managed, agricultural lands can sustain production indefinitely. Farms and ranches provide food for humans and other amenities enjoyed by society; grass, trees, and plant and fiber products.

    Roughly 17.1 million acres, or 28 percent of Oregon's land mass, are in agricultural production. About 3.5 million acres are cultivated (land that is tended and harvested every year.) Another 500,000 acres are fallow (idle) and rotated with wheat to conserve moisture and aid in erosion control. Over 600,000 acres are enrolled in dedicated conservation programs (10-year contracts or trusts that provide easements, riparian buffers, etc.). Pastureland and rangelands (used in livestock production) total 9 million acres. The remaining acreage is in woodlands, farm buildings, farm ponds, and miscellaneous uses.

    Oregon's land use laws created agricultural zones for such activities. Even with these laws, growers who farm near developments or urban boundaries can face nuisance complaints about noise from machinery operated at night, or sound cannons used to protect crops from birds. Other common nuisance issues may include dust, odors, or driving behind slow moving farm machinery. Oregon's landmark Right to Farm (RTF) law (ORS 36.360) protects growers from civil suits for customary and reasonable practices, even when these practices change over time. The law enables operators to engage in agriculture without the fear of a lawsuit over customary activities.


    The challenge
    The most highly productive farm land in Oregon is also where most Oregonians live—the Willamette Valley. Along with population pressures, aggregate mining companies create competing interest by seeking gravel beneath valuable farmland soils. Exclusive Farm Use zones (EFU) have been used for several decades to protect agricultural lands and minimize conflicts with surrounding communities.
     
    While EFU zones and Right to Farms laws provide some insulation from these pressures, thousands of acres of farmland are still converted to non-farm uses each year. The cumulative impact affects industry viability: acreage is lost to development; growers lose input suppliers, processors, and buyers; and growers must travel farther for parts and repairs. Weddings and other events at farms or vineyards create increased traffic or situations often not compatible with working farms.
    Agricultural research
    Photo of Tracey Liskey
    "Research and technology are critical to the future of healthy and affordable foods and other agricultural products. Today’s production cost to farmers and ranchers is increasing at least four times the rate of return for the products they raise. The only way for farmers to stay in business and for the public to keep eating affordable food is to increase productivity.
     
    When I went to college 30 years ago, our ranch weaned beef calves at just under 500 pounds; now we produce calves that weigh over 700 pounds at weaning thanks to genetics and nutrition research. Our fields produced 3 tons of grass hay with a protein value of 8 percent; now we cut 5 to 6 tons of grass hay with protein value of 12 to 16 percent as new varieties have been developed.
     
    With the world population expected to increase by 50 percent in the next 20 to 30 years, a declining amount of farmland and water, and increasing environmental regulations on agriculture, the only way to meet future demands is through research and technology."
     
    Tracey Liskey

    Policy recommendations
    1. Support fundamental and applied agricultural science research at Oregon State University to identify management strategies, technologies, cost-containment innovations, and collaborative efforts that are essential to a viable future of agriculture in Oregon and the needs of the world's increasing population.
    2. Support critical research and Extension projects that support this report's policy recommendations, specifically those that help growers adapt to climate change/variability, including techniques and equipment that will lower the costs of new technology and adoption of practices.
    3. Support education programs in K-12, as well as higher education, that enable in-depth understanding of agriculture and natural resource issues and needs, solving real-world problems, and preparing students for future careers in natural resource fields.

    Agricultural perspective
    World population growthProductivity, which measures the increase in outputs against growth in production inputs and technological advances, is a closely watched economic performance indicator because of its contribution to a healthy and thriving economy.
     
    Agriculture, in particular, has been a very successful sector of the US economy in terms of productivity growth. US agricultural output grew at an average rate of 1.89 percent annually from 1948 to 1996, entirely due to productivity growth. In contrast, output growth in other sectors of the economy was largely from increased use of inputs. Productivity growth in agriculture can be attributed to investments in research and development (R&D), extension, education, and infrastructure.
     
    Over the 50 year span noted above, the advances in agriculture have enabled the use of fewer workers on farms (less labor) and less land per unit of output, while more machinery, improved seeds, fertilizers, pest control, and energy output to meet the growing demand of an expanding world population.
     
    Persistent and long-term investments in agriculture research and extension are essential because of productivity lag. In other words, a research project may take several years to complete because of the natural systems within which farmers work. It also takes additional time for farmers to learn about the innovation and put it into practice, even as risks and low margins remain a part of production agriculture.
     
    The Cooperative Extension System is aimed at reducing the time lag between the development of new technologies and their adoption. is aimed at reducing the time lag between the development of new technologies and their adoption. Extension agents disseminate information on crops, livestock, and management practices to farmers and demonstrate new techniques as well as consult directly with farmers on specific production and management problems.

    The challenge
    Public agricultural research and extension expenditures have grown little in real terms since 1980. The federal share of public extension expenditures has fallen steadily during the past few decades. The bulk of funding for extension services now comes from state and county governments, with more reductions threatening the essential and critical need for this service which ultimately benefits all of our citizens.
     
    Consumer trends and regulations are also changing, with more emphasis on production methods, availability of pest control products, livestock containment, and food safety. Growers need cutting edge research that keeps pace with these changing demands so decisions are based on science, realistic cost and adaptation timelines, support the viability of all sizes of farms, and meet the needs of a growing world population.
    Farm transition
    Photo of Dan Carver
    "We've all heard transition stories of how successive generations don't get along, and ultimately the farm passes out of the family and maybe even to a different use. Producers and their families must overcome these challenges. We need to recognize generational differences, work toward effective communication, a common vision and goals, and eliminate as many gray areas as possible.

    Taxation of farmland transfer is a moving target. We must push legislators to enact a permanent plan for Capital Gains and Estate Taxes, and stick to it. Farming, with its large land base, is especially subject to discriminatory taxation upon transition. The only winners today are the accountants and attorneys that you must hire to protect the integrity of the farm, the family, and the land use. Families often need to purchase expensive insurance premiums in order to pay the estate taxes. It is an expensive process and a deal breaker for many farms. We need a seamless process that allows generational transfers without the expense and uncertainty we have today."
     
    Dan Carver

    Policy recommendations
    1. Support programs that create an environment for successful family farm transition, and networks to support a new generation of agriculture professionals for all sizes of farms, including:
      • estate and succession planning
      • vocational and technical programs at all education levels that teach agricultural literacy and skills
      • farm internship or apprenticeship programs to provide hands-on farm experience, post-education
      • a “farm link” program that matches available land for rent or sale to aspiring young farmers
      • technical assistance at community colleges and Extension Service to provide on-going training.
    2. Urge Congress to pass permanent estate and capital gains tax laws that encourage family farm property transfers to the next generation.

    Agricultural perspective
    Oregon farmers by ageAccording to the 2007 Census of Agriculture, 59 Oregon farmers under the age of 25 claimed farming as their primary occupation. Those over 65 years of age totaled 6,770, outnumbering their younger counterparts by 114 to one. Two-thirds of Oregon's farmers and ranchers are over the age of 55. Collectively, they own or manage nearly 21,000 farms and ranches, with 9 million working acres—55 percent of the state's total farmland. Over the next decade, as the present generation of farmers retires, more than half of Oregon's agricultural land will change hands.
     
    Who will own and operate Oregon's farmlands into the future? Will farm income be adequate to keep these lands in agricultural use and entice new entrants into agriculture as a way of life? Will tax laws and regulations be structured to attract young people to careers in agriculture and supporting job sectors?
     
    Acres in farming by age of producerMany of the skills needed to successfully operate a farm or ranch require years of hands-on learning. Knowledge in biology, genetics, and animal health is highly beneficial. Experience in crop and feed production, soil management and irrigation technology is often necessary. The ability to manage commodity marketing, employees, and regulatory permits is critical. Also, operations produce crops or livestock that may require at least one to five growing seasons (years) to reach maturity and generate revenue. The initial investment in land, seed stock, equipment, and other inputs is substantial. Agriculture is a biological process that cannot be turned on and off like a factory's power switch. In order to provide food and fiber for everyone, it requires skilled farmers and employees working the land, and expertise from agricultural lenders, risk management specialists, crop consultants, and veterinarians.
     

    The challenge
    It is imperative to attract young producers, whether they are part of an existing farm family or new to agriculture. The next generation of farmers needs to learn about soils, the production process, pest and disease control, the marketplace, and much more. It takes time to transfer years of experience from an aging farming population to the next generation—or years for new growers to learn on their own. Policy makers must consider incentives, programs, or structures that encourage farming and its associated careers.
     
    Fortunately, Oregon's land use laws and farm-use tax assessments help keep agricultural land in agricultural use. Regrettably, passing the farm on to the next generation can be hampered by capital gains and estate taxes. The transfer process requires significant estate planning and expense. Intergenerational and family communication over the farm's future is also critical—which may require assisted facilitation and mediation.
     
    The new generation of farmers may find itself without a family land base. These farmers face great difficulty in buying farm land because of the enormous cost. However, existing small parcels and plots can be rented, leased, or crop-shared. Caution must be exercised against carving up existing larger commercial agriculture lands into small acreages. Once this happens, the potential to lose farmland to homes and development is high. Agricultural land, once developed, cannot be reclaimed.
    Transportation infrastructure
    Photo of Steve VanMouwerik
    "Nearly 80 percent of Oregon’s farm production reaches customers who don't live in Oregon, but want to enjoy our high quality products. There are many examples: rye grass straw is fed to Wagyu beef cattle in Kobe, Japan; Hood River apples are a key fresh ingredient for juice blenders in other states; small, specialty lots of Eastern Oregon wheat head for noodle makers in other states and Europe.
     
    Oregon’s farms, new or established, large or small, diversified or focused, continually reach for the highest standards in quality, stewardship, and competitiveness. One in 10 Oregon jobs is tied directly or indirectly to that effort.
     
    World class market access and transportation cost competitiveness are critical to the energy and entrepreneurial investments Oregon producers and processors make every day. Oregon must support good access to markets by all modes across the connective platform—be it by river, ground, air, ocean, regulation, or information technology."
     
    Steve VanMouwerik
     

    Policy recommendations
    1. Develop a comprehensive and integrated state freight strategy that addresses all modes of domestic and international transportation, including highway, rail, waterways, aviation, and pipeline.
    2. Provide state involvement and influence to keep short rail lines open, conduct oversight on rate charges, and ensure the availability of cars for agricultural and other product movement in Oregon.
    3. Support an updated I-5 bridge connecting Oregon and Washington.
    4. Support efforts to facilitate availability and cost-competitiveness of shipping containers for Oregon exports.
    5. Funding for maintenance and improvement of waterways should increase at the federal level. All revenue collected into the Harbor Maintenance Trust Fund each year should be spent for its statutory purpose of maintaining our waterways.


    Agricultural perspective
    Moving fresh product to market in a timely manner is critical for producers and consumers, and transportation infrastructure is necessary. The key components of an effective system to move agricultural goods from farm to fork include
    • adequate labor, equipment, and technology to harvest, process, and move product from field to warehouse or processing facility in a timely manner.
    • roadways, bridges, and related infrastructure that allow farm vehicles to move from field to field and from field to delivery points.
    • economical ways to move aggregated crops, livestock, and farm goods (fresh or processed) via roadway, railway, waterway, and airway to destination points around the world.
    Commercial waterways are vital to our transportation system. Shipping by barge is far more economical than by rail or truck. The typical barge can move 750,000 bushels of wheat, while 870 trucks would be needed to move the same amount.
     
    Fuel and energy costs affect all facets of the food and fiber system, from planting and fertilizing to harvesting, storing, processing, and transporting. Saving money through energy conservation and efficiency, renewable energy options, stable energy costs, and effective transportation alternatives is imperative.
     
    Nearly every transportation avenue faces unprecedented challenges, including costs and container availability that put Northwest growers, processors, and shippers at a disadvantage in world trade.
     
    By sea—Topping out at about $9,000 in 2008, the typical cost of transporting a cargo container from the US to China is three times that of 2003. The ocean freight cost adds the equivalent of a 10 percent duty to the price of exported goods. There is also an annual deficit of nearly 70,000 containers in Oregon and southern Idaho.
     
    A welcome bit of good news in 2010 was the opening of the Port of Portland’s new cargo container service to Japan and South Korea. The service will carry non-refrigerated containerized agricultural products such as hay, as well as paper products and other commodities from the region to four ports of call in Japan and South Korea. The deepening of the Columbia River Channel from 40 to 43 feet—a project expected to conclude by 2011—was critical to the launch of the Portland service.
     
    By train—Rail cars are in short supply. Over the past two years, several US railroads have renegotiated contracts with ocean carriers and, in many cases, the rail rate has increased by as much as 40 percent.
     
    By road—The trucking industry is shrinking. In the past two years about 3,500 firms nationwide have shut down while others have curtailed operations. Many have sold some of their big rigs to buyers overseas. As the economy starts to recover, capacity will be further strained due to fewer trucks and trained drivers. Local roadways are crowded in much of the state and moving farm machinery is increasingly difficult, especially in the Willamette Valley.
     
    By air—Air shipments of high value products are increasingly unmanageable, due to fuel costs and foreign regulatory import requirements.

    The challenge
    As noted by Port of Portland Executive Director Bill Wyatt, most containerized exports are transported to seaports by truck and rail. So the condition of our highways, bridges, and freight railroads affects the transportation cost of US exports. Unfortunately, the maintenance and improvement of those waterways have suffered for many years from inadequate funding and excessive planning requirements. As an example, the Corps of Engineers project to deepen the Columbia River navigation channel by three feet has been in various planning stages and intermittent dredging for 21 years.
    Energy efficiency
    Photo of Steve VanMouwerik
    "We have the opportunity to increase farm value by strengthening the state's renewable energy policies. Oregon should support decentralized energy production that rewards local feedstocks and provides locally produced energy statewide. We need to bolster research at Oregon State University, other higher education facilities, and within grower communities. This can lead to developing effective strategies and resource management tools, including new crops, technologies, and applications that ultimately connect all energy users, urban and rural. By adopting new farming technologies and energy efficient equipment, and by producing crops and systems that best use local resources in a sustainable way, we can modify the way Oregon sources its energy in order to farm and to deliver product from farm to market more efficiently."
     
    Steve VanMouwerik

    Policy recommendations
    1. Support research to create Oregon-adapted, higher yielding bioenergy crops that provide economically viable options for producers as rotation crops or as perennial crops on lower-value or marginal acres. Supply-shed scale infrastructure is also needed to place pre-processed ag feedstock into energy conversion plants.
    2. Maintain the biomass tax credit to help growers address risks associated with new crop production, machinery, etc.
    3. Support energy efficiency research, incentives, and technical assistance for on-farm projects, as well as efforts to find alternative energy sources and scalable technologies that enable farmers to conserve energy and/or produce their own electricity, fuels, and other energy inputs.


    Agricultural perspective
    Energy use per farm outputsAgriculture depends on energy—whether from sunlight, liquid fuel, fertilizers, or electricity—to raise crops and livestock. Over the past few decades, great progress has been made reducing the amount of energy needed to produce agricultural products.
     
    New energy efficiency techniques can reduce operating costs, provide a quick return, and help the growers' bottom line. On-farm renewable energy projects often require a bigger initial investment and a longer time to complete. However, they help guarantee the stability and future of energy prices.
     
    Many agricultural producers are interested in growing bioenergy crops or supplying agricultural by-products for energy production, especially during this time of unstable prices for their current commodities.
     
    Private sector efforts and government incentives are helping Oregon transform farm output into energy, both at the community level and on large-scale operations. Several in-state companies process crops into biodiesel. One facility turns fruit-juice processing waste into ethanol. Anaerobic digesters in Oregon currently harvest energy from livestock manure and food processing by-products, and can also accept agricultural residues and dedicated energy crops. Pilot biofuel facilities are planned to process agricultural and forest materials into ethanol, bio-oil, and other renewable energy products. Pellets and bio-bricks are being made from forest materials and ag residues.
     
    Some Oregon agricultural operations have the opportunity to host third-party developed renewable energy projects, such as wind farms. Solar farms are another emerging opportunity. Certain operations may also be able to host third party developed anaerobic digesters. Technical assistance helps growers evaluate third party proposals and determine whether such developments are a good fit with their operation. Thorough review of proposals for compatibility with other agricultural land uses continues to be important to ensure coexistence of renewable energy developments with agriculture.

    The challenge
    In the past decade, the US has increased renewable energy to nearly 10 percent of total energy production. However, many promising energy efficiency and renewable energy opportunities remain unrealized. The low prices and market volatility for farm products makes it difficult for many growers to make capital investments in newer technologies for their operations. Broader economic conditions make it difficult for large-scale projects to raise the capital to build facilities that can benefit growers. Some growers are financially ready to invest in energy efficiency projects or on-farm energy production, but don't know where to start, or the technology is not available for their particular type of operation. Fluctuating fuel and electricity prices also discourage some projects.
     
    If energy companies were obligated to pay stable contracts or purchase prices sufficient to earn a payback for renewable energy projects, farmers and larger-scale developers would have greater confidence in decisions to move forward with energy projects.
    Invasives
    Photo of Doug Krahmer
    The relentless effort to keep out the bad stuff
    "Anyone who's grown a garden knows such pests as weeds, insects, diseases, or other unwanted invasive species. Farmers know pests even better because their livelihood depends on producing good crop and livestock yields that can be significantly affected by unwanted bugs, diseases, weeds, or wildlife. The goal is to control these "invasives" on our private working lands in a manner that is cost-effective, control-effective, and with minimal impact on the surrounding environment. Equally important are public lands, parks and scenic designations, rights of ways, waterways, riparian areas and wetlands, and other natural settings where invasive weeds, insects, aquatic life, and diseases can wreak havoc. We need robust tracking systems, control tools, and resources to respond when necessary to ensure our diverse landscapes, working lands, urban and public areas, and natural settings are not overtaken and destroyed by invasive creatures of any sort."
     
    Doug Krahmer

    Policy recommendations
    1. Support policies and systems that balance the ability of agricultural producers to deal with pests and diseases with the need to protect natural resources. Sustainable methods to control crop and livestock pests and diseases are those that are effective, minimize negative impacts on the environment, and are affordable.
    2. Support ongoing research for appropriate tools, including integrated pest management (IPM), to treat pest and disease problems.
    3. Support and maintain the Invasives Species Council, weed control grants through ODA, OR Watershed Enhancement Board (OWEB) efforts, and collaboration with federal and private land managers.
    4. Support early detection and rapid response in addressing invasive species of all kinds.

    Agricultural perspective
    Invasive species come in all shapes, sizes, and methods of introduction. But all have one thing in common—they are destructive to natural habitat, working lands, urban landscapes and greenways. They can be micro-organisms, such as bacteria, blight, or disease. They can also be insects, certain species of aquatic plants and invertebrates (like crabs and mussels), noxious weeds, and mammals. Whatever form they assume, they have escaped from their natural environment and created competition for native plants and resources. Invasive plants crowd out local vegetation, and noxious weeds steal nutrients and water from domestic crops. Invasive species can damage native ecosystems and require significant resources to eradicate or control.
     
    Oregon spent an estimated $26 million on invasive species-related activities in 2008. Much of this came from the federal government, but state and local governments, private land owners and growers, non-profits, Native American tribes and other entities contributed to this effort.
     
    Land managers (whether managing backyards, farms, forests, roadways, stream-sides, or state and federal lands) need powerful tools to battle invasive species. It is an unending war that has been amplified by climate change and international trade. The state's changing weather patterns, such as milder winters, are ushering in and enabling the survival of new diseases, pests, and weeds. The ever-increasing movement of products and people around the world provides more opportunity for hidden hitchhikers to relocate in new habitats, causing havoc.
     
    The multiple challenges dealing with invasives:
    1. Early detection—tracking or monitoring the existence of new or established invasives in the state
    2. Rapid response—employing cost-effective, control-effective, legal, and site-specific actions to accomplish eradication or control
    3. Resource management—finding and employing the resources and tools to accomplish these goals.
    While science and regulatory authorities wrestle with safe exposure levels of pest-control and herbicide products, growers and other resource managers count on sound research and timely action to address invasive plant, pest, disease, aquatic, or animal invaders. Successful eradication or control is contingent on the ability to choose from a wide array of invasive-control products, whether they be organic or advanced methods. Many growers use a mixture of technologies to achieve adequate controls, termed "integrated pest management," or IPM.
     
    IPM is a coordinated decision-making and action process that uses the most appropriate pest control methods and strategies in an environmentally and economically sound manner to meet pest management objectives. IPM practices are used widely by growers in Oregon.
     
    Biocontrol is another method used to eradicate or control invasives by identifying a natural predator or control agent from the native origin of the species, and introducing it into the location the invasive has inhabited. Working with land managers across the state, ODA has found varying degrees of success using biocontrol on established noxious weeds. A stem weevil that attacks Dalmatian toadflax has reduced the weed by up to 99 percent in some sites. ODA has also successfully controlled such weeds as purple loosestrife, diffuse knapweed, and the historically prolific tansy ragwort by using beneficial insects. No other state has had the kind of success enjoyed by Oregon when it comes to the use of biocontrol on noxious weeds.

    The challenge
    Invasives are costly, disruptive, and economically and environmentally damaging. Keeping them out is the best option, but difficult. Early detection and rapid response is a constant effort. Some invasives are already established and require persistent vigilance to control. Some are new and demand increased attention to prevent spreading. All resource managers need adequate tools to address the constant barrage of unwanted pests, diseases, bugs and non-native critters of all kinds.
    Food safety
    Photo of Lynn Youngbar
    From farm to fork
    "The safety of our food supply has taken on new urgency. Consumers want and deserve safe food. The responsibility starts with the producer, but involves everyone, including the consumer, as food moves from the farm to the dinner table. When problems occur, traceability and immediate response by ODA and others is paramount. The array of local, state and federal agencies that monitor food safety can be confusing. Budget constraints have limited ODA to monitoring high risk foods instead of sampling a broad cross section of all foods. Third party certification to verify growing and handling processes is one way to better ensure safe food and to let consumers know where their food comes from. Pending federal legislation would streamline the food safety system, but it is important that any national effort be closely linked to existing state programs to avoid duplication, and ensure efficient monitoring and emergency response. We need to walk a fine line between enforcing food safety and encouraging new food related businesses—sometimes very small ones—that can help build our local economy."
     
    Lynn Youngbar

    Policy recommendations
    1. Support ODA Food Safety Program budget levels necessary to meet the food safety needs for Oregon consumers. Food safety is critical to all consumers, and adequate General Fund to provide inspection and testing of food and consumer products is good public policy. While the farm/food sector shares responsibility to ensure integrity of the food supply, General Fund support should at least match inspection fees paid by food producers and processors.
    2. Support a strong federal food safety program contingent on collaborative efforts through existing state food safety programs.
    3. Encourage Congress to fund a stronger border inspection program for increased evaluation of produce and livestock entering the US.
    4. Provide flexibility in state law for ODA to work with small producers to ensure food safety outcomes through less-costly means.

    Agricultural perspective
    Agricultural practices vary with each farm. Agricultural production is also highly regulated with respect to resource sustainability and impact to the surrounding community. This is particularly true with water quality, crop protectant materials (pesticides and fertilizers), employee conditions and pay, interstate movement of agricultural goods, on-farm processing and handling of food, and feed ingredients.
     
    Even with careful operator and regulatory scrutiny, the safety of our food can be compromised by microbial contamination, human error, technological limitations, or consumer mishandling.
     
    Much of the nation's food system oversight is divided among federal agencies. The US Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the Homeland Security Agency are responsible for sampling and monitoring imported foods, including produce and livestock. One-third of the US supply of fruits and vegetables is imported. The reality is that some crops will not grow well in the US—for example, bananas and other tropical fruits. Sales of imported food may also be stimulated by being less expensive to the consumer than domestic products.
     
    The USDA inspects most meat processing facilities in the US and responds to animal diseases that can move across international borders. FDA, along with state public health departments, oversees food-related disease and illness. These agencies track epidemiological factors that assist with traceback of food-related health incidents.
     
    The agriculture department in every state, including the Oregon Department of Agriculture, inspects dairies and feedlots, food processing facilities, warehouses and distribution centers, shellfish production, delis and other food establishments. (Restaurants in Oregon are overseen by county health departments.) ODA also maintains a top quality food safety laboratory that assists in analytical testing.

    The challenge
    Food inspectors and food establishmentsFrom farm to fork, food safety is paramount. Educating consumers in safe food handling and preparation is equally important.
     
    New and complex food safety issues, including concerns over certain imported products, pesticide residue testing, disease transmission via food, and more require an investment in up-to-date laboratory testing and analyzing capabilities in regulatory agencies. The marketplace demands food source identity, traceability, and faster response time from food safety officials at the state and federal levels during a food emergency.
     
    An appropriate level of funding is critically needed to inspect the amount of food moving across borders. The Country of Origin Labeling (COOL) system should help, but is being challenged by Canada and Mexico. Good public policy and food safety requires sound scientific practices and the ability to track food products when the risk is real.
     
    With adequate funding and a strong traceability program, food emergencies can be reduced and have a smaller impact when they do arise.
    Extending the harvest
    Photo of Bernie Faber
    A viable food processing industry
    "Agricultural processing is the right arm of production. Local food processing provides jobs for Oregonians, preserves product quality and freshness, and helps develop regional branding—all while reducing the expense associated with long distance transportation.
     
    Some growers process at the farm level. Others belong to farmer cooperatives that process and market members' products. And, there are private companies that buy, process and market growers' products. Co-location of production and processing facilities yields many benefits, including lower transportation costs to reach the processing facilities.
     
    Milk processing provides quality products such as cheese, butter, yogurt, ice cream, powdered or fresh milk. Oregon cheese makers win national awards. Oregon's wineries produce quality products that are renowned worldwide.
     
    But there are challenges. We must make processing facilities more competitive in the areas of labor, land, transportation, water, and waste disposal to retain and expand processing in Oregon."
     
    Bernie Faber

    Policy recommendations
    1. Scalable processing: Support state efforts to encourage distributed small and medium-scale food, seafood and meat processing to enhance local food and economic security.
    2. Infrastructure: Support food processors through local, state, and federal cost-sharing and technical assistance programs for capacity development of water and solid waste disposal systems, and access to working capital for food processing plant and equipment.
    3. Food Innovation Center: Support continued program and staff collaboration between the ODA and OSU at the Food Innovation Center as a means to enhance Oregon's value added food processing sector.
    4. Animal rendering: Support state efforts to establish size-appropriate rendering capacity for livestock and poultry processing waste as a means of reducing landfill use while encouraging distributed meat and poultry processing in Oregon.

    Agricultural perspective
    Energy use by food processorsHarvest comes and goes. Many agricultural products are perishable. Without processing, packaging, freezing, refrigeration, pasteurization, or other forms of preservation, food waste would result in much of the population going hungry. Even with the efficiency of the present US food system, the US Department of Agriculture estimates that up to 40 percent of fresh produce is wasted. Much of this takes place at the retail, food service, or consumer stage. Cutting down on food waste is part of the on-going effort within the entire agriculture system, particularly at the food processing stage. Use of energy is also a focus of much attention in this sector.
     
    Food processors take raw ingredients and transform product into forms that have longer shelf life, add nutrition through vitamin fortification, and create recipes that make products unique, capitalizing on taste and quality.
     
    Oregon's food processing businesses have evolved over time from numerous fruit and vegetable processors scattered around the state, to a smaller number of more specialized companies in limited geographic areas.
     
    However, in the past 5 to 10 years, a resurgence of interest in food processing, preservation, and home-based facilities has expanded the number of operations throughout the state, including smaller-scale operations. Approximately 1,200 licensed food processing facilities operate in Oregon, and employ over 20,000 workers. Food processing is one of the few sectors that actually created jobs during the recent recession.
     
    Licensed processors in Oregon, by approximate numbers, include:
    • 250 domestic kitchens (small scale)
    • 50 dairy product or fluid milk processors or distributors
    • 675 food processing establishments (of varying sizes)
    • 200 meat processing and related facilities (of varying sizes)
    Processing is also about more than just food. Other agricultural products must be processed and transformed in order to be useful to consumers. For example, grass seed and vegetable seed must be cleaned, blended to desired mixes, and bagged; hay for export must be transported, compressed and baled for shipment; wool must be sheered, cleaned, carded and woven into yarn or fabric, etc.

    The challenge
    Scale or size is one of the key challenges. For example, most Oregon meat processing establishments are custom mobile or specialty processing facilities. The state no longer has any large-scale or even regional-scale meat processing facilities. There are also no animal rendering facilities that can handle non-palatable animal parts (meat trimmings, bones, etc.) and dead animals that are natural occurrences in raising livestock. This restricts the ability of small-scale animal production to move meat to market and creates the necessity for larger-scale producers to ship animals out of state for processing.
     
    Food processing is multifaceted and involves keeping up with changing consumer interests and demands. It also requires inventing and investing in new machinery, managing a seasonal inventory and workforce, addressing waste water, and accessing a reliable storage and distribution system. This must be done while staying economically viable and competitive with similar product from elsewhere.
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    2006 State of Oregon Agriculture, pdf version (2.6MB)
    2008 State of Oregon Agriculture, pdf version (3.2MB)

    Page updated: December 28, 2010