Capital Press Agriculture News Oregon

United Grain Corporation to invest millions in old PGG facilities

PENDLETON, Ore. — It’s been a hectic homecoming for Tony Flagg.

After nearly two decades as CEO of the Pendleton Flour Mills, Flagg finds himself back in the Round-Up City — this time as vice president of business development for United Grain Corporation, which recently bought all grain assets from the now-dissolved Pendleton Grain Growers.

The deal became official June 10, which gave Flagg one month to hire staff and open a new office on Main Street before the start of wheat harvest. The sale included PGG’s upcountry grain elevators and Columbia River terminal, but not its other businesses or main office building on Dorion Avenue.

The timing was tricky, having to jump directly into harvest. But Flagg said they’ve hit the ground running and made a good first impression on producers.

“I think we’ve been received very well,” he said. “They appreciate that we’re here.”

United Grain now has the task of picking up where PGG dropped off, while updating infrastructure that has become obsolete. When UGC agreed to buy the facilities, it promised to invest $9 million toward making them more modern and efficient. Flagg said the contract gives them five years to get the job done, but added they want to move forward as soon as possible.

“Many of the elevators are so antiquated they’re no longer competitive and, quite frankly, no longer safe,” he said.

That level of commitment from United Grain comes at the backing of its owner, the Mitsui Group, a multi-billion dollar international trading company with offices in Tokyo and New York City. Mitsui became interested in food production after building its portfolio in mining, energy and manufacturing.

United Grain is at the forefront of that strategy, Flagg said. The company formed in 1969 and now operates the largest grain export terminal on the West Coast in Vancouver, Washington. For years, UGC operated purely as a wheat exporter, but with the rise of genetically modified crops, an emerging middle class in China and deepening of the Columbia River channel to accommodate larger ships, Flagg said the market has become significantly larger and more complex.

That, in turn, has led United Grain to branch out and work directly with farmers, which Flagg said gives them a greater command of the whole supply chain. In other words, they can supply more grain at a faster rate, amounting to more reliable service for customers.

“It’s all about speed, space and service,” Flagg said. “That’s why we’re here.”

The PGG Board of Directors voted to dissolve in May, ending 86 years of service in Eastern Oregon. Flagg said everyone, including himself, regrets that the co-op failed. But UGC is excited for the chance to develop relationships directly with farmers. UGC did retain nine former PGG employees, including Jason Middleton, who was hired as region manager.

Flagg knew even before the sale it would take time and money to get the elevators where they need to be. Some just simply aren’t equipped to handle the needs of today’s farmers and, when it comes to harvest, time equals money.

“I’m dealing with truck lineup issues at McNary, and it’s only the front end of harvest,” Flagg said. “If the trucks don’t get back to the field, harvest stops ... We need to make these facilities faster, and hold more grain.”

The first step, Flagg said, is to look at which elevators are worth updating and which UGC will have to close. Flagg, 66, said he will facilitate that process and, once the operation is running smoothly, he plans to retire.

Umatilla County is one of, if not the best, grain producing counties in the U.S., Flagg said. He said it’s up to them now to improve their level of service and win PGG’s customers back.

‘Renaissance’ turns around fortunes of Oregon’s popular nut

CANBY, Ore. — Nurseryman Rich Birkemeier can’t keep up with the demand for hazelnut trees.

The owner of Birkemeier Nursery supplies farmers with young hazelnut trees, but the demand has been so great that his 300-acre hazelnut farm and nursery is sold out for 2016 and has already sold out of some varieties for 2017. Birkemeier has been forced to start a waiting list for new growers who want to plant the popular nut tree.

Birkemeier called the last four years a “renaissance in the hazelnut industry” and sees a bright future for Oregon hazelnuts.

“A lot of things have come together at the same time that have really pushed the hazelnut industry forward,” Birkemeier said. “There’s a gaining realization in the agricultural community that hazelnuts are the things to grow in Oregon.”

Willamette Valley growers have planted between 3,000 and 4,000 acres of hazelnuts a year since 2014, according to Pacific Agricultural Survey. Owner Mike McDaniel said he expects even more new acreage to be added this year.

New growers with no agricultural experience, farmers looking to diversify their crops and long-time hazelnut producers are among those planting trees, with this year’s statewide acreage blossoming to about 46,000 acres.

Hazelnuts have been grown in the Willamette Valley since the first tree was planted in 1858 because of the region’s unique rich soil and mild climate. Today Oregon produces 99 percent of U.S. hazelnuts and 4 percent of the world’s supply.

Oregon State University hazelnut breeder Shawn Mehlenbacher said he could have never anticipated the growth in hazelnut acreage he has seen during the last few years.

“This industry is growing faster than I ever imagined,” Mehlenbacher said, adding that “we don’t have any problem selling what we can grow.”

The picture wasn’t always so rosy. In a 2012 survey, the National Agricultural Statistics Service reported that hazelnut acreage and production were flat, a disease was devastating hazelnut trees, and prices were stagnant.

However, a series of “God moments” turned the industry around, Birkemeier said.

The biggest breakthrough came in 2009, when OSU’s Mehlenbacher released several cultivars resistant to eastern filbert blight, bringing new hope to growers. The fungal disease had showed up in Oregon in 1973 and eventually infected a large portion of the state’s hazelnut orchards, sending the industry into gradual decline.

As the resistant trees began to replace those that were susceptible to EFB, other events further boosted the industry.

Ferrero U.S.A. expanded its production of Nutella, a hazelnut-and-chocolate spread especially popular among young consumers. Ferrero already operated a plant in Ontario, Canada, and in 2012 built another in Mexico to meet the growing demand, with Oregon the closest hazelnut provider.

Two years later, a major freeze wiped out one-third of Turkey’s hazelnut crop. The nation provides 70 percent of the world’s hazelnuts. With that production decline, several countries — particularly China — turned to Oregon to meet their demand.

The result: 15,000 acres of hazelnut trees have been planted since 2009.

The cost of a new hazelnut orchard depends on the density of the planting, whether outside contractors do the work and the price of the drip irrigation system.

OSU Orchard Crops Extension Specialist Nik Wiman said hazelnut trees cost an average of $7 to $8 each. Some growers plant orchards in a single-density configuration — 108 trees per acre. Contracting someone to plant the orchard adds about $1 per tree to the cost, he said.

Some growers plant double-density orchards — 216 trees per acre, which costs an average of $1,620. Wiman said planting those orchards is more costly upfront but yields significantly higher returns sooner.

A single-density orchard begins producing hazelnuts — about 75 pounds per acre — in the third year. Production will typically increase each year until an orchard reaches full production — about 2,800 pounds per acre — by the 12th year, according to OSU.

A double-density orchard’s production is twice that of the single-density orchard until the 10th year, when every other tree is removed to provide adequate spacing for the mature trees.

Oregon Hazelnut Commission Administrator Meredith Nagley said the nuts are popular with the state’s 650 growers because they produce long-term yields, are sustainable and don’t require many inputs once they are planted and start yielding nuts.

Leroy and Barney Kropf first planted 35 acres of hazelnuts on their Linn County, Ore., grass seed farm in 2009. As of this year, their hazelnut orchard has grown to 300 acres, and Barney Kropf said they plan to add 30 acres a year.

“We were expecting to expand but not this fast at all,” Kropf said.

He said the grass seed business is unpredictable and hazelnuts are the opposite, which makes them a good complementary crop.

OSU Extension’s Wiman said he expects a lot of growers in the southern Willamette Valley to also start growing hazelnuts, following the lead of growers in the northern valley, where they are most popular.

Kropf said one of the most attractive things about growing hazelnuts is the high demand from processors.

At Willamette Hazelnut Growers in Newberg, Ore., CFO and Sales Manager Michael Severeid said the rapidly growing industry has put pressure on processors to obtain supply and has created competition for the nuts.

According to the USDA noncitrus fruits and nuts summary published this month, Oregon hazelnuts sold for an average of $1.34 per pound in 2013, and prices peaked in 2014 at $1.80 per pound after the frost in Turkey. In 2015, the average price per pound was $1.40.

“There’s a lot of competition with the processors to get supply and meet demands,” Severeid said. “The opposite is true for growers. Everyone wants your business.”

To attract new growers, Severeid said Willamette Hazelnut helps them be more successful. One effort is a giant metal bin that can carry up to 20 times more hazelnuts than typical harvest bins.

Severeid said Willamette Hazelnut built the bin for growers to make it easier and more cost-effective for them to handle their crops.

Severeid sees even more room for expansion in the North American market.

“Our problem has always been an inadequate supply for export,” Severeid said. “We never have a problem selling what we can produce.”

New and veteran growers don’t only get support from processors. The hazelnut commission’s Nagley said the industry is one of the most collaborative and supportive she has ever seen.

Mehlenbacher said that’s because the annual hazelnut production is easily sold, which in turn encourages growers to work together.

OSU also plays a big role. Beyond creating the filbert blight-resistant cultivars, OSU Extension Service researches new hazelnut cultivars and provides resources to growers.

OSU Extension is split into four areas: breeding and genetics, insect and pest management, plant pathology and cultural practices.

OSU Extension’s Wiman works in cultural practices, researching the physiological needs of the trees and serving as a resource for growers.

“My job is to empower growers and investigate the needs of the trees,” Wiman said.

Birkemeier also stressed the importance of the strong relationship between OSU and growers.

In 2010, OSU and Oregon hazelnut growers established the Hazelnut Variety Committee and agreed to pay royalties for cultivars created by OSU in return for exclusive rights to new cultivars. When OSU releases a new cultivar, no overseas growers can buy it for three years.

“Hazelnut people are the example of how to behave, support new people and support research,” Mehlenbacher said. “We’re the little guys in the world. We have to work together to be successful.”

With more acres going into production every year, growers and processors see a bright future for the hazelnut industry.

Having been in the hazelnut industry his whole life as a grower and a nurseryman, Birkemeier said he is excited.

“It’s so rewarding to see an industry go through all of that struggling for 30 years and to all of a sudden see this huge resurgence in hazelnuts,” Birkemeier said.

Train rams wheat truck at E. Oregon crossing

ECHO, Ore. — A train collided with a semi-truck Wednesday near Rieth Road, about nine miles east of Echo.

The train was heading east toward Pendleton pulling roughly 15 railroad cars at about 30 mph, according to Umatilla County Undersheriff Jim Littlefield.

The semi-truck, belonging to Platinum Transportation of Hermiston, was carrying two trailers of wheat and headed north when it apparently failed to yield at the railroad crossing.

The driver, Budd Richards, 54, of Hermiston, was conscious, but complaining of head, neck and leg pain when rescue crews arrived. He was transported via ambulance to St. Anthony Hospital and was expected to be released Wednesday.

According to Union Pacific Railroad employees at the scene the train had sounded its horn, but could not stop in time before hitting the truck.

Cell phone service is scarce in the area, and the call for help came via radio.

Mariano Hawk, the terminal manager for Union Pacific, said the train struck the truck where the two trailers were hitched together, knocking the truck cab and one trailer on its side north of the railroad tracks and leaving the rear trailer upright to the southeast of the tracks.

Oregon farmer wins zoning dispute

Straw-compressing facilities can be built on Oregon farmland without a county conditional use permit, according to the Oregon Court of Appeals.

The appellate court has rejected arguments that compressing bales of straw for easier shipment to overseas markets is a form of “processing” that’s disallowed within farm zones without a permit.

The ruling upholds a finding by Oregon’s Land Use Board of Appeals, or LUBA, that straw-compressing is crop “preparation” that’s allowed outright on farmland.

“The record reflects that the straw is unchanged in substance from when it is first baled in the field to when it is packaged for resale,” the appellate court said in the July 20 ruling.

The case is seen as significant for Oregon land use law because it could have changed allowable farm activities on a county-by-county basis.

Farmer John Gilmour of Albany, Ore., said that time restrictions imposed on his straw-compressing facility by Linn County were hurting its competitiveness, while some neighbors complained of traffic hazards and noise.

The ruling ensures uniformity across Oregon in the definition of “farm use,” said Alan Sorem, attorney for Gilmour.

If each county were to have its own interpretation of farm use, with different restrictions on operations, it would be destabilizing for agriculture, he said.

“It’s a great decision in that it provides stability for farmers,” Sorem said.

Suzi Maresh, a neighbor opposed to the facility, said that straw-compressing is a great business but should be situated in an area where trucks don’t cause road hazards.

“This is an entirely inappropriate development for this location in Linn County,” Maresh said.

The Oregon Court of Appeals decision is disappointing because it doesn’t resolve the traffic problem and could allow it to grow worse if Gilmour expands, she said.

Critics of the facility argued for a reversal of the LUBA opinion, claiming the board’s analysis of “processing” was incomplete and should have followed Linn County’s interpretation, which held that straw compressing was a “commercial activity in conjunction with farm use” and required a permit.

The Oregon Court of Appeals has disagreed with this view, ruling that LUBA is not required to defer to the county’s legal reasoning.

Critics claimed facility compresses up to 25,000 tons of straw collected from other farms, compared to 5,000 tons grown by Gilmour, and it operates year-round, which disqualifies it as a “farm use.”

Gilmour countered that the facility may accept outside straw because it’s also grown on property zoned exclusively for farm use.

Compressing is simply a “preparation” of the crop for shipping, as it doesn’t fundamentally change the character of the straw — unlike turning berries into jam, he said.

Onion growers confirm success of applying herbicide through drip system

ONTARIO, Ore. — Oregon State University field trials have shown that applying the herbicide Outlook through drip irrigation works much better than surface application in controlling the yellow nutsedge weed.

Now grower experience is confirming that research.

Farmers who produce yellow bulb onions in Idaho and Oregon received special permission for the first time this year from their state agriculture departments to apply Outlook through drip irrigation. Previously, they were limited to surface application of the herbicide.

“We were very successful with” applying it through a drip system, Nyssa farmer Bruce Corn said. “It worked very, very good.”

About 95 percent of the 20,000 acres of bulb onions grown in Southwestern Idaho and Eastern Oregon are yellows and about 60 percent of them are on drip irrigation systems.

According to OSU researchers, Outlook is one of the most effective tools in controlling yellow nutsedge, which is the main weed challenge for growers in this region.

OSU Weed Scientist Joel Felix said growers who have used Outlook in drip systems this year are reporting good results.

“The growers that I’ve spoken to so far that are using it in a drip system are quite happy,” he said. “If you have a drip system, I think you’ll be wasting your money applying it over the top ... because we’re seeing much better nutsedge control from applying it through a drip system.”

The field trials Felix has led at OSU’s Malheur County Research Station the past three seasons are occurring in silt loam soil, and he said farmers with lighter soils would likely be better off applying Outlook at lower rates than those being applied at the station.

Growers in the area are limited to applying a total of 21 ounces of Outlook through a drip system per season.

The OSU trials are experimenting with different application rates.

For example, 7 ounces of the herbicide is being applied three different times over three weeks or 11 ounces is being applied and then 10 ounces two weeks later.

The herbicide will be more available in lighter soils than it is in loamy soils because of the reduction in organic matter and farmers with lighter soils should probably apply the herbicide at smaller rates, Felix said.

Applications are being studied at the plant’s two-leaf stage and having more of the herbicide available to the young plants could cause injury to them, Felix said.

“On the lighter soils, it might be better to go 5-5-5-6 or 7-7-7 or you may end up getting more injury to onions than a grower can stomach,” he said.

He said it’s also important that the herbicide be diluted with water and applied over an extended period. For example, OSU researchers are mixing 7 onces in 35 gallons of water and injecting that solution into the drip line for eight hours.

Port of Morrow to expand land application for wastewater

The Port of Morrow is expanding its capacity to recycle industrial wastewater for local farmers to irrigate their crops.

General Manager Gary Neal said as the port has grown there has been a sharp increase in the amount of wastewater generated by food processors and data centers at the East Beach Industrial Park. The nutrient-rich water is already used to water nearby farmland under a permit with the Oregon Department of Environmental Quality, but in order to keep up with the pace of growth, the port plans to build a 15-mile pipeline to pump additional effluent to Madison Ranches near Echo.

Neal said the project will benefit both sides, providing water to the farm and creating flexibility for the port to handle its wastewater.

“It’s a good fit,” Neal said. “You can grow basically any crop with that process water.”

Neal said they expect to start construction in September and finish by March 2017. The pipeline will run underneath both Highway 730 and Interstate 84 between the port and Madison Ranches. The entire project is expected to cost between $12 million and $13 million, and has been backed by the state Infrastructure Finance Authority.

Neal said the number of acres the port can use to apply wastewater will nearly double following the build-out.

“We obviously have had a lot of growth the past couple of years,” he said. “We’re trying to play catch-up and add some capacity.”

The port pumps wastewater to three different farms around Boardman, totaling roughly 6,000 acres. Ron McKinnis, engineer at the port, said they would have to build a wastewater treatment facility if they didn’t use land application. Not only would that be more expensive, but he said the farms would also lose out on water rich in nitrogen and phosphorous.

“It really is a good recycling project,” McKinnis said. “There’s a good crop benefit at the end of the day.”

Time runs out for Oregon timber ballot initiatives

Three ballot initiatives that would have restricted clear-cutting and aerial spraying in Oregon have failed to qualify for the November general election.

One of the petitions, which would have imposed new limits on aerial pesticide applications, was able to obtain the Oregon Supreme Court’s approval for its ballot title language.

However, that didn’t leave enough time for supporters to collect about 88,000 valid signatures by the July 8 deadline.

The state’s highest court has yet to rule on the ballot title for another petition that would restrict aerial spraying and logging in landslide-prone areas.

A third petition to prohibit clear-cut timber harvests was withdrawn by supporters due to legal complications involving forestland property value laws.

Steve Pedery, a chief petitioner for all three proposals, said the application process was started late and further hindered by legal challenges from the timber industry.

“Once we ended up in the court process, the clock was probably going to run out on us,” said Pedery, who is also conservation director for the Oregon Wild environmental non-profit.

However, Pedery said he’s pleased the Oregon Supreme Court has approved the ballot title for one of the initiative petitions, since such language is now likely to stand in future elections.

Oregon Wild is a taking a long-term interest in enacting timber reforms, possibly with initiatives on the 2018 or 2020 ballots, said Pedery.

Oregonians for Food & Shelter, an agribusiness group, is glad the “extreme and damaging measures” won’t be on the November ballot, but it’s likely the issues will be revived, said Scott Dahlman, its policy director.

Similar ideas will also probably surface in the Oregon legislature again next year, Dahlman said.

Lawmkers rejected such proposals during the 2015 legislative session in favor of a “more reasoned approach” once they learned about their negative consequences, he said.

“We think the people of Oregon would do the same if they were educated on the issue,” Dahlman said.

Supporters of proposed bans on aerial spraying in Lincoln and Lane counties are currently gathering signatures for ballot initiatives, he said.

However, time is running short for the Lincoln County effort while the deadline has passed for the Lane County petition to qualify for the November ballot, Dahlman said. Either petition could also qualify for the May 2017 election.

Sara Duncan, public affairs director for the Oregon Forest & Industries Council, said the timber industry has made great technological improvements to prevent off-site spray drift.

Aside from a few high-profile incidents, pesticide spraying in forestry has proven to be safe, she said.

“We already have stringent rules and regulations,” Duncan said.

Prosecutor says Bundy brother hatched escape plan

PORTLAND, Ore. (AP) — A federal prosecutor says Oregon standoff figure Ryan Bundy was working on a plan to escape from a Portland jail.

Assistant U.S. Attorney Geoff Barrow dropped the bombshell at a hearing Monday in which Bundy and his brother Ammon sought to be released as they await trial on charges stemming from the January takeover of a national wildlife refuge in Oregon.

In trying to show Ryan Bundy is a flight risk, Barrow said deputies searching Bundy’s cell in April found torn sheets braided together in a 12- to 15-foot rope, as well as extra towels, pillow cases and food.

Bundy denied he was attempting an escape, telling U.S. District Judge Robert Jones it is “self-serving speculation” and “simply not true.”

Barrow said Bundy’s excuse to jailers was that he’s a rancher and was practicing braiding. In court, Bundy told the judge he used the rope and towels for additional comfort.

Court records show Bundy hasn’t been charged with any crime related to the episode.

The leading figures in January’s takeover of the Malheur National Wildlife Refuge have been behind bars for nearly six months. They contend the 41-day occupation was a peaceful protest, and getting out of jail will help them prepare for their September trial on conspiracy and weapons charges.

To win release, the brothers must convince Jones they are not a danger to the community and will return to Oregon in September. Jones said he’ll decide Tuesday whether to release them.

The brothers also face the possibility of being sent to a Nevada jail, where they are accused of taking part in a standoff with federal agents at the ranch of their father, Cliven Bundy.

Judge Jones noted that Ammon Bundy seems unlikely to flee the country. The Emmett, Idaho, resident has a wife, six children, owns a fleet-maintenance business and resides on a property that includes an orchard with 240 apple trees. But the judge worried about him returning for trial.

“He might want to hole up like his father did for two years,” he said. “I’m still concerned about that.”

Ammon Bundy took the stand late in the hearing, explaining that he and the other occupiers took action to protest the imprisonment of two Harney County ranchers and publicize their belief that the federal government has taken unconstitutional control of too much Western land.

He said prosecutors and the media mischaracterized the occupation as a “standoff,” when in reality they were open to communication and never specifically ordered to leave.

He said at most the occupiers were trespassing, and the charges that carry a combined maximum of more than 10 years in prison are wrong: “We should not be tucked away in a dark cell as we try to answer these (constitutional) questions.”

Assistant U.S. Attorney Ethan Knight confirmed that the FBI never ordered the occupiers to leave, largely because they wanted a peaceful resolution. He said the Bundy clearly knew he wasn’t supposed to be on the property and Harney County Sheriff Dave Ward informed him that citizens wanted him to go.

“They can say what they want,” Knight said of the Bundys. “The reality is they do what they want.”

As to the question of danger, Knight conceded that prosecutors have no evidence that Ammon Bundy carried a firearm at the refuge. He said one of the 50 or so firearms seized at the end of the occupation was registered to Bundy and it was legally obtained.

Ryan Bundy read a lengthy statement in which he described himself as a peaceful man who’s devoted to his wife Angela and their eight children. He said the refuge was vacant when the group arrived Jan. 2 and that was intentional because they didn’t want a confrontation.

“I did not use violence when the government was shooting at me during the ambush and arrest,” he said, referencing the Jan. 26 traffic stop that concluded with the fatal shooting by police of Arizona rancher Robert “LaVoy” Finicum.

Earlier Monday, Jones allowed occupier Shawna Cox to serve as her attorney, a step previously taken by Ryan Bundy and another two defendants. He wasn’t in favor the decision.

“It’s like a doctor trying to take out his own appendix; it’s stupid,” he said. The judge also warned her not to question the authority of the court or take other “screwball positions.”

Meanwhile, U.S. District Judge Anna J. Brown, the primary judge overseeing the case, denied a motion seeking a change of venue. Brown agreed with defendants that media coverage has been extensive, but said it has been factual in nature and not so overwhelming that a sufficient number of potential jurors could not be impartial.

Moreover, Brown said the news coverage with the greatest potential for prejudice occurred during the standoff that began Jan. 2 and lasted nearly six weeks. With the trial scheduled to start in September, the events are not as fresh in the minds of potential jurors.

Environmentalists shut out of Oregon forest litigation

Environmental and fishing groups will be shut out from high-stakes litigation over Oregon’s forest management policies, according to a judge’s order.

Linn County Circuit Court Judge Daniel Murphy has denied a request by several non-profit organizations to intervene in the lawsuit, which seeks $1.4 billion from Oregon on behalf of multiple counties.

“Passionate concern about something does not qualify an applicant for intervenor status,” Murphy said in the ruling.

The proposed intervenors included the Wild Salmon Center and its policy director for Oregon and California, Robert Van Dyk, as well as the Association of Northwest Steelheaders, Association of Northwest Guides and Anglers and Pacific Rivers Council.

Linn County filed a complaint against the State of Oregon earlier this year, arguing that 15 counties turned over 650,000 acres of their forestlands in the early 20th Century to the state in exchange for promises of future revenues.

In addition to Linn County, Benton, Clackamas, Clatsop, Columbia, Coos, Douglas, Josephine, Klamath, Lane, Lincoln, Marion, Polk, Tillamook, and Washington counties turned timberland over to the state.

Oregon has since breached that contract by enacting a “greatest permanent value” forest policy rule that prioritizes wildlife, water and recreation over logging, costing the counties $1.4 billion in past and future timber revenues, the complaint said.

The non-profit groups argued they should be allowed to intervene in the case because they have an interest in forest health and Linn County was effectively trying to increase logging in state forests.

However, the judge has held their participation is unnecessary in the litigation, which is focused on whether Oregon has violated contractual obligations to maximize timber revenues for the counties.

“Therefore the applicants have no unique ability to offer evidence to the court concerning the breach of contract issues,” Murphy said.

Intervenor status would have given the non-profits the full rights of defendants in the litigation. The judge also said they wouldn’t be allowed to submit friend-of-the-court briefs on legal issues in the case.

These arguments would focus on “consequences to third parties” of any potential ruling that shouldn’t be considered in a breach of contract dispute, he said.

Linn County opposed the proposed intervention of the non-profit groups because they could stand in the way of a possible settlement deal or challenge a ruling favorable to the counties.

“All they were seeking to do is be obstructionists,” said John DiLorenzo, an attorney for Linn County.

The role of the court in this case is to resolve a contractual dispute, not to “micromanage” the state’s forest management policy, DiLorenzo said.

To that extent, the non-profit groups have no more interest in the lawsuit than any other member of the public, he said.

Oregon can’t re-write its regulations without approval from legislators or state agencies, so the non-profits would have the opportunity to influence that process regardless of the lawsuit’s outcome, DiLorenzo said.

Ralph Bloemers, attorney for the non-profits, said he’s disappointed they’ve been excluded from the case because a possible remedy for Oregon would be to increase logging to the detriment of his clients.

The groups offered a different perspective than the State of Oregon because they don’t believe its forestlands are being managed in compliance with the federal Endangered Species Act or Clean Water Act even under current logging levels, Bloemers said.

Several timber groups are currently footing the legal costs for Linn County, which makes them represented in the litigation, he said.

The non-profit groups haven’t yet decided whether to appeal the denial of their intervention request, Bloemers said.

OSU suggests later application to control thrips

ONTARIO, Ore. — If onion growers could push applications of Movento back a little later in the season, they might have more success controlling thrips, Oregon State University research is showing.

Onion thrips are the biggest pest problem for bulb onion growers in Idaho and Eastern Oregon. Besides causing feeding damage, which results in smaller onions, the insects can transmit the iris yellow spot virus, which can devastate onion fields.

According to OSU researchers in Ontario, an aggressive spraying program to keep thrips populations down is the only effective way for onion growers to control the insect.

OSU Cropping Systems Extension Agent Stuart Reitz said Movento is one of the most effective pesticides in controlling immature populations of onion thrips and recommendations have been for growers to start their spray program off with Movento and apply it early in the season because it takes awhile for it to absorb into the plant and become effective.

But if growers in this area apply the pesticide too early, its residual effect is gone by late June or early July, right as thrips populations in the area are starting to soar, he added.

Pushing use of Movento back a little later in the season can result in better control when thrips numbers are exploding, Reitz said.

“If you can push using that to a little later in the season, I think you can get a bigger bang for your investment,” he said. “If you use another material early in the season to hold those low populations in check and put the Movento out a little bit later, I think it will ultimately pay off.”

OSU researchers in Malheur County have been conducting field trials supported by the Idaho-Eastern Oregon Onion Committee to try to find the best way for onion growers to manage thrips.

Nyssa farmer Bruce Corn said the various onion-related trials there have greatly benefited the area’s onion industry over the years and growers have high hopes the thrips trial will help them manage thrips with as little spraying as possible.

“It sounds very reasonable,” he said of Reitz’ Movento recommendation. “We really depend on them and look to them to figure out the best way to do things.”

Because of the roller-coaster weather in the valley this year — it’s gone from hot early to cooler, than hot again and cooler — populations of thrips, which like hot, dry weather, have been spotty, Reitz said.

“Thrips pressure has come up and gone down and come up and gone down,” he said.

Growers have had decent success this year in controlling thrips but they’ve had to spend money to do that, said Nyssa grower Paul Skeen.

According to Skeen, it costs a grower about $50 per acre on average each time they spray for thrips.

“We feel like we’re keeping them under control this year,” he said. “Of course, we’ve already sprayed five times and we still have a ways to go.”

Bailey named grass roots coordinator for ag, timber group

Nursery owner Angela Bailey began work July 18 as the new grass roots coordinator for Oregonians for Food and Shelter, the ag and timber lobbying group.

Executive Director Katie Fast said the OFS board went through a planning process with stakeholders to review the group’s work and focus, especially since the 2015 retirement of Paulette Pyle, the organization’s revered and well-known connection to legislators and regulatory agencies.

The review process made it clear there was a gap in working with producers who need to be telling their story at the local level, Fast said.

“We’re challenged around GE (genetically engineered) crops, aerial spraying and pesticides in general,” she said. “We want to focus on working with people on a community level, and give them the tools to engage around the issues,”

Bailey, owner of Verna Jean Nursery near Gresham, Ore., has the experience to do that, Fast said.

Bailey, known to friends as “Angi,” served as the Oregon Farm Bureau’s second vice president in 2015 and won the Outstanding Farm Bureau Woman Award during its 2014 annual meeting. She’s also a graduate of the American Farm Bureau’s communications “boot camp,” She’s been active with the Oregon Association of Nurseries and other groups.

She and her husband, Larry, have two daughters. Bailey hadn’t planned a career in the nursery business but took over the nursery in 2005 after her mother died unexpectedly. The nursery specializes in ornamental trees, including Japanese maples and monkey puzzle trees.

Judge denied venue change in Oregon refuge case

PORTLAND, Ore. (AP) — A federal judge has denied a change-of-venue request from a defendant charged in the armed occupation of the Malheur National Wildlife Refuge.

Jason Patrick sought to have the upcoming trial moved out of Portland, citing the extensive media coverage.

In her ruling, U.S. District Court Judge Anna J. Brown agrees that press coverage has been extensive, but says it has been factual in nature and not so overwhelming that a sufficient number of potential jurors could not be impartial.

She also notes the passage of time between the occupation that ended Feb. 11 and the trial scheduled to start in September.

Patrick is among 26 defendants indicted on a charge of conspiring to impede federal officers from doing their jobs at the refuge. Seven men have already pleaded guilty.

U.S. House passes bill that prevents a Malheur County national monument

ONTARIO, Ore. — An Interior Department funding bill passed by the U.S. House of Representatives includes a provision that blocks a proposed national monument in Malheur County, Ore., that is strongly opposed by local ranchers and farmers.

The bill passed 231-196 July 14 and is headed to the Senate.

It includes a proposal by Rep. Greg Walden, R-Ore., that prevents funds from being used to create a national monument in Malheur County.

Oregon Natural Desert Association, a Bend, Ore.-based environmental group, has proposed creating a national monument on 2.5 million acres in an area of the county known as the Owyhee Canyonlands.

It would cover 40 percent of the county and encompass about 33 percent of the county’s total grazing land. County residents voted 9-1 against the idea during a special election in March.

Walden said in a news release that the House vote sends “a strong message to the president that the overwhelming majority of local residents and the People’s House oppose a monument.”

“The people of Malheur County have already spoken on this issue and they’ve come out adamantly opposed to a proposed unilateral national monument declaration on the Owyhee River canyon,” Walden said. “Now the U.S. House has also voted on my proposal to block a monument in Malheur County.”

Walden’s communication director, Andrew Malcolm, said Walden will do everything he can to stop the proposal.

“We’re going to continue to speak out against it and use every tool available to try to stop this monument,” he said.

The vote was applauded by Jordan Valley rancher Mark Mackenzie, vice president of the Owyhee Basin Stewardship Coalition, which was formed this year to represent ranchers, farmers and others who oppose a national monument designation.

Regardless of what happens to the bill in the Senate, “it’s sending a loud message ... that, hey, we’re not happy with this proposal,” Mackenzie said.

He said if a monument is created, a completely new set of rules would have to be drawn up for it and that unknown is concerning to ranchers.

“It’s very, very upsetting for the industry because we don’t know what we’re going to get,” he said.

Malheur County is Oregon’s No. 1 cattle producing county with about $134 million in farm-gate receipts annually.

Livestock sales yards in Idaho and Oregon recently donated $17,300 to the OBSC to support its campaign to oppose a national monument.

Producers Livestock Marketing Association donated $11,600 it raised during cattle auctions in June in Vale, Ore., and Treasure Valley Livestock donated $5,700.

Opponents of the national monument proposal worry that having 40 percent of the county’s land designated as a national monument would restrict grazing and access to these lands and harm the local economy.

The national monument proposal “is a huge concern over here,” said Paul Skeen, president of the Malheur County Onion Growers Association. “That’s why we voted 93 percent ‘no’ on it.”

Removal of Dillon Dam could happen next summer

ECHO, Ore. — A headache for farmers and fish on the lower Umatilla River for decades, the Dillon Dam is finally near its end.

The Umatilla Basin Watershed Council and Confederated Tribes of the Umatilla Indian Reservation plan to remove the troublesome diversion dam near Echo by next summer. Not only has the concrete structure long blocked passage for native salmon, steelhead and lamprey, it has been a maintenance nightmare as gravel bars routinely wash over the irrigation headgate.

But before the dam can come out, water rights for the local Dillon Irrigation Co. need to be rerouted from another source. The watershed council came up with a design in 2014 that taps into the neighboring Westland Irrigation Canal, running 11,000 feet of pipe down Andrews Road and back into the Dillon Irrigation Ditch — completely bypassing the dam.

Funding for the project appears to be in place after the Oregon Department of Fish and Wildlife’s Restoration and Enhancement Board approved a $175,500 grant in May. The Oregon Fish and Wildlife Commission still needs to approve the grant at its Aug. 5 meeting in Salem, but Jon Staldine, executive director for the watershed council, said their proposal has been well-received.

“They saw it was really a collaborative project,” Staldine said.

The watershed council had already received $350,000 from the Oregon Watershed Enhancement Board and $20,000 from the CTUIR to build the pipeline. Staldine said the grant from ODFW will allow them to start construction in November or December, wrapping up by February so farmers can get back to work.

“The pipeline is the key project,” he said. “If that doesn’t happen, the dam won’t be removed.”

Dillon Dam is operated by the Dillon Irrigation Co., which was established in 1897. The company is currently made up of three landowners with approximately 1,400 total acres. Mike Taylor owns the Double M Ranch, the largest of the bunch, and also serves as president of the irrigation company.

Taylor has been talking about getting rid of the Dillon Dam for 15 years before the watershed council took the reins. He said the Dillon Irrigation Co. collects $10 per acre from landowners, most of which goes toward paying for maintenance at the dam.

Whenever high flows sweep down the river, it washes gravel and debris that plugs up the headgate and fish ladders at the dam. It’s up to the producers to come in and clean up the mess. Taylor said they’re looking forward to having a more reliable water delivery system from the Westland Canal.

“Getting the dam out of the river is a good thing,” Taylor said. “We’ve been working on it for a while.”

Once the pipeline is complete, the watershed council and tribes can turn their attention to physically removing the dam from the river. Staldine said they are working together on a design and applying for permits, which could take four to six months to be approved.

If all goes smoothly, in-stream construction will take place sometime between July 15 and Sept. 30 of next year. Staldine said they haven’t yet worked out the cost, but said it will be paid for out of the tribes’ Fish Accords with the Bonneville Power Administration.

Dillon Dam was originally built in 1915 and replaced sometime in the mid-1970s. It does have fish and lamprey ladders, though Staldine said they’re not up to current standards. Bill Duke, fish biologist with ODFW in Pendleton, said the dam has been a complete barrier to lamprey in past years, and a partial barrier to salmon.

“In some years, it’s a significant portion of the fall chinook run that gets delayed down there,” Duke said.

Staldine said the problem affects juveniles as well as adult fish stuck below the dam. The likelihood of survival for juveniles reared below the dam are virtually non-existent due to high water temperatures in the summertime, he said.

Yanking the dam will allow more fish, including fall and spring chinook runs, to make it to their traditional spawning grounds farther up the Umatilla River, boosting survival and providing more fishing opportunities.

“We won’t have fish caught below that are essentially getting fried every year,” Staldine said.

OSU hires new Seed Laboratory manager

Oregon State University’s College of Agricultural Sciences has named David Stimpson, who has spent the past 20 years working in seed science and technology for Dow AgroSciences, as its new Seed Laboratory manager.

Stimpson will start in his new position July 29.

He replaces Adriel Garay, who retired Dec. 31 after 19 years as the lab’s manager.

Dan Curry, director of seed services for OSU, said he has known Stimpson for 15 years through their participation in the society of Commercial Seed Technologists. Stimpson currently is vice president of the organization and is in line to be its president next year.

“He is a good guy,” Curry said. “A lot of people are telling me, ‘You picked the right person.’ We feel pretty good about it.”

“Dave has extensive experience in seeds, seed industry development, seed physiology, seed analysis and commercial seed quality and compliance,” said Jay Noller, head of the college’s Crop and Soil Science Department.

Curry, who has been serving as interim director of the lab since Garay’s retirement, said he is anxiously awaiting Stimpson’s arrival.

“My arms are open for Dave to get here,” Curry said. “We need a full-time manager, and we are really happy that Dave has decided to take the job.

“He is the right person, and we are anxious for him to get started,” Curry said.

Curry said the college conducted an international search to fill the position.

Next Portland mayor says he can be an advocate for Oregon agriculture

PORTLAND — Love it or despise it, this quirky city can make or break the fortunes of Oregon’s farmers and ranchers.

With 610,000 people living within the city limits, and 1.7 million in the three counties that make up the greater metro area, Portland is the chief consumer, shipper, marketer and brander of the state’s agricultural production.

What happens here ripples far beyond the city, which makes Portland politics important from Pendleton to Prineville and from Powell Butte to Paisley.

When current state Treasurer Ted Wheeler decided to run for Portland mayor and won enough votes in the May primary to avoid a runoff in November, rural producers took notice.

He won’t take office until January, but some in agriculture believe Wheeler’s ascendancy could improve urban-rural relations.

Wheeler lives in Portland, but he’s a sixth generation Oregonian with rural roots. His family was in the timber business; the Tillamook County town of Wheeler, on the Oregon Coast, was named after his great-grandfather, who started a mill there. His mother’s side comes from the Fossil area, in Eastern Oregon.

Katy Coba, director of the Oregon Department of Agriculture, said Wheeler has a “very strong affinity” for Oregon ag due to his background.

“Because of his experience, he has that statewide perspective,” she said. “He’s very sensitive to the fact that Portland does have a big influence on the rest of the state.”

Coba knows Wheeler; among other encounters, he stood in for then-Gov. Ted Kulongoski to accompany Coba on an Oregon ag trade mission to Asia several years ago.

“He hasn’t consulted me (on ag issues),” Coba said, “but if he had a question I think he would be very comfortable calling on me.”

For his part, Wheeler said he’s fully aware of both the urban-rural divide and urban-rural interdependence.

“You can’t talk about success in the agricultural industry without talking about the role urban areas play,” he said. “Urban communities in America are increasingly clueless about the challenges facing rural communities.”

But he said urban and rural areas also have issues in common. During a visit to Roseburg, he heard people express concern about the homeless, just as they do in Portland. In Klamath Falls, there was worry about escalating housing costs, another Portland concern.

“If we just assume urban and rural communities are so different that we have nothing in common, then we’re losing an opportunity to collaborate, share ideas and find common solutions,” he said.

Wheeler said he has interacted with the Oregon Farm Bureau, Oregon Cattlemen’s Association and nursery groups in the past.

“The urban-rural divide has been around a long time,” Wheeler said. “It’s not new, and it’s not unique to Oregon. There’s always been people who exploit it for political gain. You won’t see me do that.”

He’ll take office in a city that decides every election and can swamp statewide discussions of pesticides, labor, GMOs, wages or regulatory issues. Its land-use, water use and traffic patterns can affect what farmers grow, how they grow it, how they get it to market and how they use and move equipment.

“Land and transportation are the two things he can make a difference in,” said Jeff Fairchild, produce director for 18 New Seasons grocery stores in the Portland area. He deals with about 50 growers who sell to New Seasons, and must find ways to deliver their products to the city.

Dan Arp, dean of Oregon State University’s College of Agricultural Sciences, said he would remind Wheeler that agriculture is the state’s second largest economic driver. Oregon ag produces $5 billion in annual farm-gate value and is a major source of jobs, Arp said.

The state produces more than 200 commodities and is equally diverse in terms of acreage and farming methods, he said. Portland’s celebrated “foodie” culture is supported by an agricultural sector that provides high-quality foods and beverages, with an emphasis on sustainability, Arp said.

Coba, the state ag director, said development of the proposed James Beard Public Market, named for a renowned chef from the city, could showcase Oregon agriculture in downtown Portland.

“Clearly there’s a passion around food in Portland, we all know that,” she said.

Others in agriculture note Portland’s influence on issues ranging from gas taxes to the minimum wage. Another said Portland ought to take greater advantage of nearby agricultural production to eliminate the city’s food “deserts,” the areas where poor people don’t have ready access to fresh, healthy food.

Many in ag hope the new mayor realizes the Port of Portland and Portland International Airport are agriculture’s pipeline to world markets, whether it’s hazelnuts to China, wheat to Japan or blueberries to South Korea. Port delays, labor strife and an inadequate transportation infrastructure cost producers time and money, and they believe fixing those problems should be a priority.

Wheeler agrees, and said it is a statewide issue.

“A lot of the future success of the agricultural industry hinges on partnering with the urban area and the Port of Portland,” he said.

“I think there’s a general lack of understanding about what it takes to make agricultural enterprises successful from an economic standpoint,” he said. “That’s an area where I have a lot to learn and to share with my constituents, and I look forward to those opportunities.”

Last federal refuge standoff occupier to remain in custody

PORTLAND, Ore. (AP) — A federal court judge has allowed an Oregon standoff defendant Kenneth Medenbach to be released from jail while awaiting trial, but he will keep the last holdout in the armed takeover in custody.

The Oregonian/OregonLive reports U.S. District Judge Robert E. Jones said Wednesday he remained concerned about David Fry’s mental instability and threats of “suicide by cop” before his surrender to FBI agents.

Jones also said a psychological report on Fry states that Fry is concerned about invasions from outer space and has spoken of a wish to be reincarnated as a woman.

Fry objected to the judge’s characterization of those statements. The 27-year-old has pleaded not guilty to charges of conspiring to impede federal officers from doing their work at the refuge.

Fry was the last occupier to surrender at the Malheur National Wildlife Refuge Feb. 11.

Oregon cherry orchard donates tons of fruit to the needy

A combination of old friendships and new technology resulted this summer in about 80,000 pounds of fresh cherries being distributed to food banks that help hungry Oregonians.

John Burt, executive director of Farmers Ending Hunger, said he approached prominent orchardist Ken Bailey a couple times in the past and said, “Ken, we need to talk about cherries.”

Farmers Ending Hunger is a non-profit that lines up donations of fruit, vegetables and meat from Oregon farmers and ranchers — 4 million pounds last year. Burt, a retired OSU Extension supervisor in the Mid Willamette Valley, works his connections to reach producers. The donations flow through Oregon Food Bank, which distributes to local food banks that give food boxes to needy families.

Burt said it wasn’t a hard sell with Bailey, part of the multi-generational family that operates Orchard View Farms in The Dalles. “Great operation, great farm, great family,” Burt said. “He already knew what he wanted to do.”

Orchard View is providing about 14 1,000-pound totes per week, about 55,000 pounds through mid-July. The original target was 100,000 pounds, but Burt said the donation will probably reach 80,000 pounds.

The donated dark cherries are culls that the commercial market doesn’t want because they are perhaps under-sized, off color, or slightly bruised. Burt said the cherries are fine. “The fruit is gorgeous,” he said. “What we’re getting is just beautiful.”

As it turned out, Orchard View put in a new optical scan sorting system over the winter that made the donation process even easier. The system essentially photographs each cherry 25 to 30 times, working at a rate of 1,000 cherries per second, and automatically routes each cherry to cull or market totes. The system practically eliminates hand-sorting labor costs and results in a product of uniform quality, size and color.

But even the culls are good cherries, Bailey said.

“Generally it looks good,” he said. “It may be a little soft, but as long as it gets moved in a couple few days, it’s a very good product.”

Orchard View Farms and other producers can claim tax credits for the crop donations.

Farmers Ending Hunger bought pallets of plastic clamshell containers. Volunteers with Oregon Food Bank fill the containers with 4-pounds of cherries, and they’re included in food boxes given away by various organizations.

The value of the donation is undetermined at this point. Burt said he recently saw a similar 4-pound clamshell container of cherries on sale at a Costco store for $9.95.

Bailey said providing the cherries doesn’t slow down his processing line, as they flow into the same type of totes he uses otherwise and Oregon Food Bank handles the transport.

“This seems to be working out very well this year,” he said.

Dispute brewing over Oregon canal property

A dispute is brewing between an Oregon farmer and an irrigation district over the ownership of land underlying a canal.

Farmer Jim Gordon and his company, Kodiak Ventures, claimed ownership of the land beneath the canal through the “quiet title” process, under which property ownership uncertainties are resolved.

The previous owners of the property deeded all the land to Gordon, but mistakenly excluded the land beneath the irrigation canal and laterals, said Paul Sumner, his attorney.

After Gordon issued a public notice of the legal action, the North Unit Irrigation District — which operates the canal — filed a motion to intervene in the case.

The irrigation district claims to actually own the land beneath the canal, which it has operated since 1948, and has requested a state judge to reject Gordon’s claim.

Capital Press was unable to reach the NUID’s manager, Mike Britton, or its attorney, Alan Stewart, for comment as of press time.

Sumner said the implications of the NUID’s claim are “very troubling” because it would effectively mean that irrigation districts own the land beneath canals.

“If this argument is correct, it would be correct for every canal,” he said.

Sumner said the irrigation district simply has the right to operate the canal, but Gordon should have the right to own the underlying property.

Otherwise, he and other farmers could face land use restrictions based on parcel size or be denied access across property owned by irrigation districts, Sumner said.

It’s likely that NUID wants ownership of the property underling the canal to build hydroelectric facilities without having to buy the land, he said.

Fire destroys building, antique farm equipment near Willamette Valley town

AMITY, Ore. (AP) — A fire has destroyed a building near Amity in Western Oregon.

John Stock with Amity Fire told KOIN the building housed a machine shop and antique farm equipment such as tractors and cars inside.

Fifty firefighters were battling the Wednesday morning blaze at one point. The building and its contents were destroyed. No one was injured.

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