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Lawmakers approve Oregon farmland easement fund

Capital Press Agriculture News Oregon -

SALEM — Oregon lawmakers have created a state fund dedicated to buying farmland-preservation easements, albeit without the $4.25 million initially sought by supporters.

Proponents of the Oregon Agricultural Heritage Fund are nonetheless cheering the news, since new spending bills were met with skepticism from legislators due to a tight budget outlook.

“It’s pretty incredible to create a program like this in a not-easy legislative session,” said Nellie McAdams, farm preservation program director with Rogue Farm Corps, a group dedicated to training future farmers.

Because the state’s land use system greatly restricts building on farmland, working lands easements aren’t as common in Oregon as in many other states.

Farmers can sell easements on their land that extinguish most development rights while still preserving their ability to grow crops and livestock on the property.

However, existing funding sources for easements are often geared toward conserving wildlife habitat and riparian areas and not production agriculture.

The Oregon Agricultural Heritage Fund would help solve that problem with money dedicated to working lands easements, but the $4.25 million originally planned for the program was viewed by legislators as an unrealistic request.

Instead, supporters focused on getting the program’s basic mechanisms and governance established.

“We can focus in the future on funding,” said Mary Anne Nash, public policy counsel for the Oregon Farm Bureau. “There’s a tremendous public benefit so we’ll be looking for public funds in the future.”

Under House Bill 3249, which passed with strong majorities in the House and Senate in the waning days of the legislative session, nearly $200,000 will be directed to writing rules for the program and forming a commission to oversee it.

“The next step will be finding out who will be shaping this program,” said McAdams.

It’s likely that proponents of the fund will go back to lawmakers in 2019 to seek money for the fund, so the next two years will be devoted to setting priorities for the program, she said.

“That process should probably be long and include a lot of public involvement,” McAdams said.

Another farm-friendly program also won funding late in the legislative session.

House Bill 2038, which provides $4.5 million in grants for schools to buy food from local growers, passed both chambers unanimously on July 7, when the session was expected to adjourn.

Funding for the farm-to-school program was pared down from the original request of $5.6 million, but the program is expected to remain functional with the reduced amount, said Jenny Dresler, state public policy director for the Oregon Farm Bureau.

Oregon rancher challenging well shutdown

Capital Press Agriculture News Oregon -

An Oregon rancher is challenging the state government’s method of determining when groundwater well pumping must be shut down to avoid disrupting surface water rights.

Tom Mallams of Klamath County claims the Oregon Water Resources Department has ordered him to stop pumping from a well near Snake Creek, a tributary of the Sycan River, based on an erroneous mathematical model.

The well was drilled into a confined aquifer that’s not connected to the creek or the river, so pumping restrictions won’t have any effect on surface water flows, according to Mallams.

Mallams has petitioned Marion County Circuit Court Judge Thomas Hart to overturn OWRD’s order because it’s “not supported by substantial evidence” as required by Oregon law.

The agency has derived its conclusions from “general studies of the Klamath Basin” without collecting any data specific to Mallams’ well, according to the petition for review.

Mallams claims OWRD should have instead relied on a well driller’s report submitted to the agency, which found the well is hydraulically separate from surface waters.

A representative of OWRD said the agency is reviewing the legal challenge with attorneys from the Oregon Department of Justice and can’t comment on the litigation at this time.

Mallams’ lawsuit is not the first time that OWRD’s method of gauging groundwater pumping impacts on surface water has provoked controversy.

In 2014, lawmakers proposed several bills requiring the agency to prove that individual wells were affecting surface flows before taking enforcement action.

The proposals were divisive in the agricultural community, with some irrigators arguing they’d disrupt Oregon water law while others claimed they’d protect water rights.

According to OWRD, the new testing requirements would have cost the agency $80,000 per well. Ultimately, the bills died in committee.

Aside from Mallams’ petition, the agency’s decision to restrict irrigation in the Klamath region is facing several other lawsuits this year.

Reacting to a “water call” from the Klamath Tribes — which have the most senior “time immemorial” water rights — OWRD has issued orders halting irrigation on roughly 300,000 acres of land.

Since early June, irrigators have filed four lawsuits disputing the agency’s rationale for enforcement action.

Campbell Soup buying Pacific Foods for $700 million

Capital Press Agriculture News Oregon -

NEW YORK (AP) — Campbell Soup says it has agreed to pay $700 million to acquire Pacific Foods, which makes organic broths and plant-based drinks.

The deal marks the latest effort by Campbell to diversify its product lineup to better reflect changing tastes toward foods that are seen as healthier or fresher. The New Jersey-based company’s other acquisitions have included hummus and salsa maker Garden Fresh and organic baby food maker Plum. But its efforts to focus on fresh have run into some struggles , such a recall of Bolthouse Farm drinks as well as smaller-than-expected carrots that hurt sales.

Pacific Foods generated about $218 million in sales for the year ending May 31, according to Campbell. Campbell says it will continue operating Pacific Foods out of Tualatin, Oregon, where it was founded in 1987.

Extended heat wave settles on Treasure Valley

Capital Press Agriculture News Oregon -

MERIDIAN, Idaho — Farmers in the Treasure Valley of Idaho and Oregon are bracing for an extended heat wave.

High temperatures in the area are forecast to be near or above 100 degrees for at least the next two weeks.

“It’s going to be a tough job the next couple of weeks,” said Meridian, Idaho, farmer Richard Durrant.

Beginning July 4, the high temperature in Homedale, Idaho, is forecast to reach at least 100 degrees on 16 of 17 days through July 20, and it’s expected to hit 99 the other day.

In Parma, Idaho, and Ontario, Ore., the high is expected to reach 100 degrees 15 of 17 days during that same span, with the other two days hitting 99 and 98.

“Having 100-degree weather here is not unusual,” said Stuart Reitz, an Oregon State University Extension cropping systems agent in Ontario. “But having it linger for a couple of weeks is.”

Most crops in the region are behind schedule because of heavy snow cover that lasted longer than normal, followed by a constant string of spring rainstorms, and could use some warm weather to catch up, Reitz said.

But many crops produced in the region stop growing when temperatures reach the high 90s, he said.

“That just puts them that much further behind,” Reitz said. “It just makes things that much more complicated.”

The biggest danger for farmers during a hot spell like this one is reduced yields and timely irrigation will be important to mitigate yield loss, said Joel Felix, an OSU weed scientist and crop production specialist in Ontario.

“The main concern is losing yield through moisture stress,” he said. “If you don’t irrigate when the crop needs it, you will lose the yield.”

Ontario farmer Bruce Corn said maintaining a proper irrigation schedule will be critical during the heat wave and that also means not over-watering “because over-watering will cause stress, too.”

“You just have to watch your water real close,” he said. “You have to be out in your fields every day to see what the moisture levels are. Twelve hours can make a big difference in this kind of heat. It’s just a matter of watching things.”

Growers need to be aware of what’s happening in each of their fields “and water according to their crop’s need and not just keep water going because it’s so hot,” Reitz said. “You just need to pay attention to what each individual crop and field’s needs are.”

Durrant said he’s particularly worried about the impact the lingering heat will have on wheat quality because the high temperatures come as much of his wheat is starting to fill.

The heat could have an impact on some of the region’s seed crops because a lot of them are in bloom or starting bloom and the heat could affect pollinators, said Fruitland, Idaho, farmer Jon Fabricius.

“Sometimes pollinators don’t work best when it’s that hot,” he said.

New insecticide to remain on market despite ESA violation

Capital Press Agriculture News Oregon -

A new reduced-toxicity pesticide may remain on the market even though its approval violated the Endangered Species Act, according to a federal appeals court.

Cyantraniliprole, or CTP, was registered by the U.S. Environmental Protection Agency in 2014 as an active ingredient in 14 insecticide brands used on numerous crops. It’s commonly known as Cyazypyr.

The chemical provides a new weapon against the spotted wing drosophila in blueberries and the Asian citrus psyllid in citrus crops.

Environmental groups — Center for Biological Diversity, Center for Food Safety and Defenders of Wildlife — filed a lawsuit against EPA claiming the agency never studied CTP’s potential effects on threatened and endangered species.

According to the plaintiffs, CTP may be “fairly persistent” in an agricultural environment even as it degrades, raising the possibility the chemical will accumulate over time.

The plaintiffs pointed to EPA’s own ecological risk assessment that found the insecticide is expected to be sprayed in areas inhabited by 1,377 endangered species.

The U.S. Court of Appeals for the D.C. Circuit has now agreed that EPA violated the law by not reviewing the chemical’s potential to affect protected species or consulting about those effects with other federal agencies.

However, the EPA did not have “total disregard” for CTP’s possible adverse consequences, as shown by the ecological risk assessment, and registered the chemical because it’s likely to replace other insecticides more toxic to humans, birds, fish and bees, the D.C. Circuit said.

The D.C. Circuit said it’s convinced that leaving CTP’s registration in place while EPA further evaluates the chemical will maintain “enhanced protection of environmental values.”

The insecticide’s manufacturer, DuPont, intervened in the lawsuit, arguing that CTP’s registration fulfilled the fundamental purpose of the Endangered Species Act.

The D.C. Circuit rejected that argument, ruling that EPA wasn’t excused from the legal requirement to conduct an “effects determination” or consult about the chemical’s impact with other agencies.

Senior Circuit Judge Raymond Randolph dissented from the ruling because he believes the environmental plaintiffs weren’t injured by the pesticide’s approval and thus lack the legal standing to file the lawsuit.

Jump in dark northern spring wheat prices takes soft white wheat with it

Capital Press Agriculture News Oregon -

Farmers should take advantage of the surge in wheat prices and sell at least some of their crops, market analysts say.

On the Portland market, dark northern spring wheat prices have ranged from $8.55 to $10.15 per bushel, depending on protein percentages. That’s an increase of more that $2 a bushel from April prices, according to the USDA Market News.

The increase is the result of dry weather and extreme heat in the wheat-growing regions of eastern Montana and the Dakotas, said Byron Behne, marketing manager for Northwest Grain Growers in Walla Walla, Wash.

The Wall Street Journal recently listed wheat as the top-performing commodity, up about 25 percent year-to-date.

“I don’t think we’re going back to $25 (per bushel) DNS like we did in the winter of 2008 ... but $10 isn’t out of the question because it’s a very specific high-end wheat with a high-end use,” Behne said. “People are going to pay whatever it takes to get it.”

Dark northern wheat generally has a high percentage of protein — more than 14 percent — and soft white wheat has a lower percentage of protein, usually below 10.5 percent. Higher protein generally indicates higher gluten content. High gluten content is important for baking light, yeast-leavened breads.

Nearby DNS futures prices are higher than futures prices later on, said Clark Johnston, a marketing consultant in Ogden, Utah.

“That’s because the demand is outrunning the supply,” he said. “The market is saying, ‘We need your wheat right now, we’re not going to give you an incentive to hold it until after the first of the year.’”

The DNS price increase prompted speculators to move into the other wheat classes, said Dan Steiner, grain merchandiser for Morrow County Grain Growers in Boardman, Ore.

Soft white wheat ranged from $5.50 to $5.60 per bushel in Portland this wheat. That’s up from $4.40 to $4.60 a bushel in April. Hard red winter wheat ranged from $5.51 to $6.20 per bushel, up from $4.97 to $5.17 a bushel in April.

“For soft white, six months ago, you’d have thought, ‘This would be a great price,’” Steiner said. “But when you’re looking at $9 wheat (for DNS), it’s like, ‘Gee, can we have some more of that?’”

“They’re just buying ... all wheats now, which probably isn’t really sustainable in Chicago futures because soft wheat and dark northern spring wheat are two completely different things,” Behne said.

Lower protein soft white wheat has less gluten that DNS and is used in Asian noodles, cakes, pastries and flat breads.

“I don’t really see this ending well for soft wheat unless we end up with a corn problem later on,” Behne said.

Corn prices would need to increase to pull excess soft wheat supplies into livestock feed channels and boost demand, Behne said. Wheat futures were nearly $2 over corn futures, making the spread too high for farmers to buy it for livestock.

“We have a big soft white crop coming again this year,” Behne said. “Without some feeding going on, I don’t know how we’re going to chew through that.”

Wheat needs to trade at roughly $4.95 per bushel to be viable for feed, Steiner said.

Steiner isn’t sure how long the higher prices will last.

“I had no idea this rally was going to be this big, that it was going to go this far, or how long they’re going to push this,” he said.

Behne and Johnston both expect an eventual drop in prices. But weather forecasts indicate heat will continue in the spring wheat production areas of the Northern Plains, Behne said.

Johnston advises farmers to look for futures bids that are in keeping with current cash prices, and contract their wheat now before prices begin to decline, particularly in the other classes.

If DNS gets to be too expensive, some end-users won’t want it, he said, which will impact cash markets.

“There’s been a 90-cent spread between the high and the low of the day,” he said. “When that kind of stuff happens, I start to get a little nervous about this market.”

In recent tenders, Russia sold wheat to Egypt at $5.80 per bushel and Romania at $5.75 per bushel. France offered wheat at $6.10 per bushel, while U.S. wheat prices were $8.03 per bushel, Steiner said.

“We’re not remotely close to being competitive on the world market,” he said. “(Prices are) spectacular, but probably a selling opportunity (for farmers), I would guess.”

At a Portland farmers’ market, a young entrepreneur makes his mark

Capital Press Agriculture News Oregon -

PORTLAND — Remember all that talk and worry about the next farmers? Who are they? Where are they coming from? How will we replace the retiring generation?

Relax. Kids such as Cole Laube are already taking charge.

Cole, who is 12, and his younger brother, Jake, 9, are the sons of Julie and Jason Laube, who operate Greens Bridge Gardens in Jefferson, Ore., about 60 miles south of Portland.

The parents grow berries, vegetables, pumpkins, silage corn, wheat, grass seed and more. They have a fruit and veggie stand at their farm, and also sell at farmers’ markets in Salem, Beaverton, Lake Oswego, Lebanon and — every Wednesday — at the Moreland Market in Southeast Portland.

The boys are part of the family economy. Jake polished up some petrified wood pieces in a tumbler and sold them at one of the markets. This past week, Cole was helping his mom at the Moreland Market as they sold raspberries, blueberries, blackberries, tayberries and a selection of vegetables.

Cole was keeping an especially keen eye on sales of Columbia Star blackberries. He marked containers filled with berries that he personally picked, and got to keep the proceeds from those sales, He estimated he’s earned $50 this season.

His mom said the money goes into the bank, and there’s a lesson in the arrangement.

“They go pick it, they can sell it,” Julie Laube said. “There are a lot of ways for kids to make money. I’m not just going to give it to them.”

The operation may require some negotiation in the future. The boys provide the picking labor, sure, but so far haven’t been assessed a share of input costs and so on.

“Right now it’s 100 percent profit,” Julie Laube said with a smile.

Cole said he wants to be a berry grower when he grows up, and he’s already showing an awareness of business practicalities. He chose to sell Columbia Star blackberries “because they’re the biggest berries my dad grows” and quickly fill picking containers.

“And they’re thornless,” his mom added.

NORPAC sells canning business to Seneca Foods

Capital Press Agriculture News Oregon -

SALEM — NORPAC Foods has sold its canning business to Seneca Foods Corp.

“In our 93 years as a farmer-owned cooperative, our canning business has been an important part of our history, but over time, it gradually represented a smaller percentage of our overall business,” Shawn Campbell, president and CEO of NORPAC, said in a press release. He has been the company’s top executive since April.

The canning business represented 6 percent of the company’s volume, according to NORPAC spokeswoman Amy Wood.

“The company is now looking at really focusing energy on growth and innovation in the frozen category,” she said.

A spokesman for Seneca Foods declined to comment on the purchase.

NORPAC is a cooperative owned by more than 200 family farmers in the Willamette Valley, and provides frozen vegetables, fruit, soups and other value-added products to the foodservice, retail, club store, remanufacture and export market segments, according to its website.

The June 30 sale will result in the closure of a small Salem beet processing facility and the consolidation of the Hermiston, Ore., facility with the Brooks, Ore., and Quincy, Wash., operations. In 2018 the plants in Brooks and Stayton, Ore., will be redesigned to accommodate more frozen vegetable processing.

NORPAC will continue manufacturing other products for Seneca through late 2017.

“The transition away from our canning business and the closure of our Hermiston processing facility will help us drive efficiencies and reduce operational complexities as we invest in continued growth and innovation in our frozen product lines,” Campbell said.

In April, Seneca also acquired the remaining 50 percent ownership of Truitt Bros. Inc. from David Truitt, making the Salem-based company a wholly owned subsidiary. Truitt Bros. also has an operation in East Bernstadt, Ky.

Seneca Foods is the leading provider of packaged fruits and vegetables in North America.

McGregor Co. offers exclusive wheat variety

Capital Press Agriculture News Oregon -

The McGregor Co. will offer limited amounts of a soft white winter wheat variety for planting this fall.

The variety, M-Press, is suited for regions with a 16 to 22 inches of annual rainfall, said Cat Salois, company director of research and technology.

“For the last two years, this particular variety was a standout in yield and performance,” Salois said. “I’ve seen it do better in situations where we have a little bit more summer heat.”

M-Press has performed well in the Pendleton, Ore.; Walla Walla, Wash.; Waitsburgh, Wash., and Pomeroy, Wash., areas.

The line has good medium maturity timing and a thick straw to handle a high yield. According to McGregor, the line yields 6 to 8 percent more than SY Ovation or WestBred 1529, Salois said.

The variety will be available through a “limited launch” in the fall of 2017 through Tomco Seed, the seed division of the company.

The variety was slated to be discontinued by its original genetic supplier, as it has a relatively small footprint where it performs best, Salois said.

Under the terms of its agreement, McGregor cannot reveal the original company or the variety’s parentage, Salois said.

M-Press has a solid rust defense package and has a medium susceptibility to cephalosporium stripe rust. It has more snow mold susceptibility, so McGregor will keep it out of areas where that problem is prevalent. It carries a different resistance gene for soilborne wheat mosaic virus than most lines, Salois said.

“Performance alone with that disease package should drive demand,” she said.

If it performs well, Salois believes more farmers will look into the variety.

McGregor may look into other licensing opportunities for varieties to fill a niche in specific areas where they are best suited, Salois said.

Online

http://www.mcgregor.com/home/about/seed-division/

Oregon has struggled to make money off of rangeland

Capital Press Agriculture News Oregon -

Capital Bureau

SALEM — The nearly 600,000 acres of state rangeland leased to ranchers to graze livestock have struggled quietly to generate a profit for decades, even as similar management issues involving the Elliott State Forest are a higher priority and have erupted in public controversy.

But state lands officials say they continue to explore strategies to yield larger returns on eastern grazing lands.

In the 2016 fiscal year, it cost the state $1.2 million more to manage its rangeland — a term that can denote grasslands as well as Eastern Oregon’s iconic stretches of sagebrush — than it realized in revenues.

The state holds a variety of trust lands, including forests, mineral resources and agricultural land. They’re required to generate revenue for the Common School Fund, an endowment for public K-12 education. Rangeland is the largest trust land segment.

Environmental regulations have restricted logging on state forests, causing the forests to operate at a loss. So the state land board — which oversees state trust lands — has been considering selling the Elliott, an 82,500-acre swath of forest near the southwestern Oregon coast.

The possible sale of the Elliott galvanized the state’s environmental activists, though, who spoke of the state’s duty to protect public lands from privatization, turning the debate political in heavily-Democratic Oregon. In May, the board — the governor, secretary of state and treasurer — decided to pull out of its planned sale to a timber company.

By contrast, the state’s rangelands, concentrated mostly in southeastern Oregon, haven’t received much public attention.

Returns from the rangeland have varied.

Between 2013 and 2015, each acre of rangeland generated an average profit of only four cents. That means that rangelands did generate positive net revenues some years, but the margin is thin. The state’s trust agricultural land had an average per-acre profit of $18.84 in that period.

Much of last year’s losses were due to the costs of fighting wildfires. Fires cost the department $1.8 million in 2016, Department of State Lands Director Jim Paul said.

The risks that trust rangeland pose to the Common School Fund are not new. In the early aughts, the problem caught the attention of Oregon’s chief public auditor.

Back in 2004, after finding that state rangelands had lost money as far back as 1987, an audit by the Oregon Secretary of State’s Office made three main recommendations: that the state lands department sell some or all of the rangeland in a competitive bidding process, exchange it for a “better performing asset,” or get market rates for leases.

More than 10 years later, though, the state’s rangeland holdings remain relatively intact. In 2004, the state held 613,000 acres of trust rangeland. In 2016, it held 596,784 acres.

The department says the size of its holdings complicates the sale of rangelands. Putting a large share of it on the market could depress prices, meaning that sales have to be spread out over time.

And the state’s trust forests, such as the Elliott, which are consistently losing more money more quickly, have presented a more immediate problem, Paul said.

“The bigger picture is just around the issue of prioritization and where do we need to focus now, versus which things are sort of in process and are going to take longer,” Paul said.

He said you can look at the state’s trust lands like an investment portfolio.

“An individual one-year loss or one portion of the fund that’s doing poorly isn’t necessarily the trigger,” Paul said. “It’s, are you tending to the whole and getting the performance that a prudent investor would with that kind of asset?”

And since the 2004 audit, Paul said, the department has increased its lease prices, which means the department has brought in more revenue.

The department’s most recent annual report on its trust lands also seems to indicate that the department wants to find other uses for rangeland, such as installing irrigation to convert it to agricultural use, which could improve the land’s money-earning prospects.

It’s also still possible that the Legislature might come up with another plan for trust lands. A bill under consideration would give the land board the authority to develop a list of trust lands with limited performance potential, and a process for transferring them to another entity better equipped to manage it, whether that’s a state or federal agency, or an American Indian tribe.

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