PERSONALLY SPEAKING

from Business Pulse magazine May | June 2020

by Business Pulse magazine

INNOVATIVE AGRICULTURE

PHOTO: iStockphoto. com/piepereit

Travel won’t likely unravel Sandy Ward remains busy and optimistic, even with the door slammed on her tourism team

Mike McKenzie

28 BUSINESSPULSE.COM | MAY/JUN 2020

Sandy Ward puts our region on the map. Literally. And in brochures, in magazines, and to millions through the internet. Anywhere the trademarked BE (Bellingham Experience) can attract travelers, and inform them on where to eat, sleep, and be merry. Sandy, just three-plus years into her position as president/CEO of Bellingham Whatcom County tourism, has moved the organization to a seven-figure budget, attracting over $700 million in travel & rec visitation.

Cue the sound of a screeching halt.

Circumstances far beyond extraordinary drew Sandy’s professional and personal world to standstill status. When we first sat down for conversation, very early in March, the agency’s doors already were closed to public, some travel cancelled, and we bumped elbows instead of a handshake or hug in greeting. Within a week, due to virus vicissitude, all doors slammed shut. Tourism’s louder than most. Much of our content became moot points. Hence, working backward, the give-and-take with Sandy begins at the end.

BP: Your industry is surreal, in slow or even no motion. What’s the trickle-down effect to the local level? SW: Whether national, county, city, local — we’re all in the same boat. People are really not able or allowed to travel. We’re told to shelter in place, stay home and not travel. Interestingly enough, we received an email reply from Bend, Oregon, when we requested a visitor’s packet, that said.”Your Bend vacation can wait. Stay home. When this passes, then we want you to come.”

BP: Any alternatives? SW: No. Some cities on the Washington coast shut down their roadways because people were flocking to beaches and trails, going on hikes and not doing social distancing, which defeated the purpose. With th.”Stay Home, Stay Healthy” order, people started heeding the advice and only left home for essential reasons.

BP: Are you optimistic? SW: When recovery starts, we know Bellingham and Whatcom County will be in a good position, because we sit between two giant easy-drive markets — Seattle and Vancouver, British Columbia. That’s millions who don’t have to take an airplane. Drive markets with outdoor activities usually recover more quickly than the fly-in markets during downturns.

BP: What actions have you taken now that your office is closed? SW: Immediately at the end of February, we rescheduled the inclusivity training for staff that was set for March 16. Also, before the mandated closures of non-essential businesses, we closed our visitor centers to the public because many of our volunteers are in the highrisk category for the virus. The only events we stage, Tastes of Tourism, are cancelled. Tastes of Tourism features restaurants that donate all the food. It puts them in a precarious position, and that’s a lot to ask of them.

Our only other event is the annual meeting of membership, now postponed from May until October, but without food.

BP: What’s your crystal ball say? SW: All of our partners are suffering and laying off people. But here’s the interesting thing: I’ve been in this industry my entire adult life and seen recessions and other things that cause chaos, and what I know is that people will do without a lot of things. From new carpet and drapes to foot deodorant.

But they will not do without their travel and leisure activities. All around us, major events have evaporated. Ski to Sea had been going 46 years.

BP: What exactly is the agency’s purpose? SW: Our job is to publicize and promote to bring visitors in for all events. We don’t produce events. We do cooperative ad buys — for example, either Alaska Beyond (airline magazine) or AAA Journey. We’re going to do one in Allegiant Airlines’ in-flight magazine, Sunseeker, in the July-August issue so that people flying to and from the West Coast, Las Vegas, Arizona and Bellingham will learn all about Bellingham SeaFeast while flying.

BP: How are you structured? SW: We’re a 501(c)(6) nonprofit that’s been around since 1978. We have a board of directors; they’re my boss. We have seven full-time employees and three part-time, and about 30-plus volunteers. That could change temporarily, given the current circumstances surrounding COVID-19.

BP: Where does your funding come from? SW: We’re funded mostly with hotel/ motel taxes from City of Bellingham, from unincorporated Whatcom County — which includes Birch Bay and Lummi Island — and a bit from contracted partnerships with the Port of Bellingham, Blaine and Lynden. We also have funding from advertising sales and membership.

BP: Can you tell us about your budget? SW: It’s around $1. 2 million per year. We own our building, so the bulk of our money is spent on marketing, advertising and media outreach, which includes salaries. We are about 85% funded by hotel/motel taxes and the rest from dues and ad sales (for inhouse publications).

BP: What’s your No. 1 priority? SW: Stewardship, above all else. Sure, we need to spend wisely to replenish our funding. But mostly, we want to make sure that the people who live here can coexist with the visitors we bring — that those visitors share our values. Example: We value the environment and the outdoors, so we want people who visit Bellingham and Whatcom County to share our commitment to protecting it. We believe in sustainability, so we want our visitors to feel the same way so we can all coexist while having a positive impact on the economy.

BP: Your role is basically marketing, then. SW: Yes, we are a destination marketing and management organization. That’s our whole job. A lot of people in town don’t know about what we do because we don’t advertise locally.

We want to offer visitors from far enough away plenty of fun things to do that keep them circulating around the county so they’ll spend the night. They spend money differently than people who live here. And we want them to have so much fun that they will come back again and recommend us to others.

BP: Where do people find you? SW: At our visitor centers. Besides our main one off of Lakeway (904 Potter St. ), we have one at Village Books, one at the cruise terminal in Fairhaven, one at Woods Coffee in downtown Bellingham’s Flatiron Building on Bay Street, one at the Bellingham airport, and one at Bellis Fair Mall.

BP: What’s your main source for recommendations? SW: Reviews on websites such as Tripadvisor and Expedia and direct response from ad campaigns and media coverage in magazines and online. We had around a million visitors to our website last year, and we have a huge

social media presence on Instagram, Facebook, Twitter and our YouTube channel, where we are known as @BellinghamExperience. Further, we do a number of publications: a visitor guide, a hiking guide and some other collateral materials. We mailed about 10,000 visitor guides last year to potential visitors outside the area. Another 15,000 were distributed around the Puget Sound region, and the balance went to local hotels, restaurants and attractions.

BP: How else do you spread the word? SW: We attend a lot of trade shows meeting consumers and tour operators and wholesalers and travel agents. We have a very comprehensive media outreach program to get stories written about our area. With Annette (Bagley, director of marketing), we work on bringing in travel writers. And we know that people believe what they read in an article more than they believe in advertising. Finally, if you want to see what people are saying about us — around the world — you can go to the www. bellingham. org media link and look for articles and coverage.

BP: How do you measure results? SW: We measure our activity with industry research that tells us average daily rates and occupancy trends, so we know how full the hotels and shortterm rentals are.

We share all of our information with the state of Washington and get reports back that tell us the economic impact of the industry, including hotels/motels, retail, restaurants, gas stations, transportation, entertainment, those kinds of things.

From that annual report, we know that over $705 million was spent by visitors in 2018. We haven’t gotten the 2019 information yet. BP: What’s the biggest spend? SW: Restaurants. People who come here like to eat, and restaurants were expected to be the first businesses to recover after COVID-19.

BP: Where do people come the furthest from? SW: We see people from all over the world. India, South America, Mexico, Australia, the United Kingdom and Germany work really well for our destination because they like to hang out with locals and drink beer, for which we are famous, and they enjoy the great outdoors.

BP: All that you’re describing makes you an economic driver, doesn’t it? SW: Yes, we’re an economic development agency, and the way we drive the economy is by bringing in outside visitors with outside money. We’re another economic development tool in the toolbox that Bellingham and Whatcom County and Port of Bellingham have, and we succeed when everybody works together. We also know that tourism is what we call the front door of economic development. A lot of times, business owners or corporations come here for vacation and they look around and they say.”Gosh, this would be a great place to live. I could bring my business here.” Many businesses came here first as a visitor — it’s really common here.

BP: Do you see light at the end of the tunnel to ramp back up? SW: Absolutely. The flower festivals might be off, but the daffodils and tulips are still growing. Earth knows what to do — birds, the soil, flowers, plants… none of that has changed. We humans will get through this together and recover quickly once the coast is clear. ■

PHOTO: iStockphoto. com/brankospejs

A path to recovery Resources to help your business regain its footing

C. J. Seitz

As our battle with the novel coronavirus and its many impacts continues, we can start planning our recovery. A number of organizations in Whatcom County are part of that important effort.

In March, Whatcom Unified Command designated the Regional Economic Partnership, led by the Port of Bellingham Economic Impact Team, as the lead economic impact agency and the lead coordinating organization for Whatcom County.

The Port of Bellingham is our state-designated associate development organization, authorized and empowered to work directly with the Washington State Department of Commerce in stewarding economic development in Whatcom County.

The Port of Bellingham created the Regional Economic Partnership to deliver a coordinated, efficient and responsive development ecosystem. During the coronavirus crisis, the partnership assures that all efforts for assessing and addressing economic impacts are coordinated, helping ensure that businesses and entrepreneurs receive con

sistent and correct information and access to resources.

The Bellingham Regional Chamber of Commerce is taking the lead on organizing and coordinating with all Whatcom County chambers responsible for networking and disseminating daily updates on Facebook (facebook. com/BellinghamSBDC) and offers a weekly newsletter focused on getting Whatcom County back to work as this crisis subsides. Our state agencies are also working diligently to support business and have offered regulatory, remit

“We urge you to remain hopeful, as everything we are learning points to widespread economic relief.”

information among their members. The Western Washington University Small Business Development Center was assigned the lead on technical assistance for businesses, providing access to resources as they become available and acting as the business and entrepreneur resource hub for the county. The SBDC monitors emerging recovery assistance opportunities, disseminates vetted program information and provides assistance in gaining access. To more effectively fill this role, the SBDC is offering a link on the center’s home page to business continuity resources, a regularly updated selection of information about local, regional, state and national recovery resources. The SBDC also provides

31 MAY/JUN 2020 | BUSINESSPULSE.COM tance and financial relief programs. The Washington State Employment Security Department has eliminated waiting periods, suspended job search requirements and extended standby times to help both employers and employees gain greater flexibility during this crisis. The Paid Sick Leave program can help employees maintain income during this crisis, providing paid leave for workers to care for themselves and their families and to look after children out of school due to health-related closures. The Paid Family and Medical Leave program can provide paid leave benefits for absences due to a serious health condition or to care for a family member. The Washington State Department of Revenue is

asking all businesses to continue to file returns and renewals in a timely manner but is offering relief for payments due.

Your Western Washington Universi- ty Small Business Development Cen- ter has served the Whatcom County businesses community for more than 35 years with free and confidential technical assistance to help you survive and thrive. Business owners face complex challenges every day. You and your company resources may be stretched thin. Competition may be tough, and new challenges await you at every turn.

There is much uncertainty right now, and we are all anxious to get Whatcom County back to normal. We urge you to remain hopeful, as everything we are learning points to widespread economic relief. As part of that relief, our team is here for you! While it will be some time before we can again invite you to our offices, we are pleased to continue to offer our free and confidential services online via Zoom meetings, phone calls and email correspondence. Please continue reaching out; we are committed to being here for all of you for as long as it takes.

Working with an SBDC adviser al- lows you to focus on what is most important to achieve your personal and business goals. They will help guide you through tough, strategic decisions to drive your business forward. You can trust your SBDC to get the most upto-date guidance on program availability, recovery planning and one-on-one assistance.

With experienced, professional advis- ers and talented research associates, your SBDC can serve as your recovery Sher- pa, guiding you to the summit of success. Please visit sbdc. wwu. edu to access resources specific to Whatcom County. ■

CJ Seitz is the director of WWU’s Small Business Development Center. She has more than 20 years of experience in executive planning, administration, financial strategy and marketing in non-profit and private sectors.

Lamenting

(and learning from) lost dollars The environmental lessons of the coronavirus and the economic downturn

Todd Myers

When times are good, the cost of things sometimes is of little consequence. We buy the top-shelf whiskey. We get those fancy shoes we wanted. We eat a nice steak. We may pay more than we should, but in good times, paying that little bit extra can be part of the fun. Waste can be a signal to ourselves, and to others, that we are having fun.

That is the attitude many politicians and activists in our state have had for the past several years when it comes to environmental policy. Economic times were good. We could avoid hard decisions. However, the economic downturn we are now facing due to the coronavirus should be a reminder that every dollar is precious and that wasting taxpayer dollars is not only harmful to our economy but also harmful to the environment.

Climate policy is one clear example. Rather than prioritize the most effective carbon dioxide-reduction projects, some Washington legislators chose far less effective climate policies as a way to virtue signal t.”social justice” activists and other political supporters about how much they care.

During the most recent legislative session, Gov. Jay Inslee’s top climate priority was to impose a low-carbon fuel standard designed to reduce transportation-related carbon dioxide emissions. This type of policy is already in effect in California and Oregon, so we “The economic downturn we are now facing due to the coronavirus should be a reminder that every dollar is precious and that wasting taxpayer dollars is not only harmful to our economy but also harmful to the environment.”

PHOTO: iStockphoto. com/kativ

33 MAY/JUN 2020 | BUSINESSPULSE.COM have a good estimate of the cost it imposes. Currently, the low-carbon fuel standard costs about $150 to reduce one metric ton of carbon dioxide in Oregon — about 27 cents per gallon of gas when the policy is fully implemented. The cost is even higher in California — about $200 per metric ton, which translates to 36 cents per gallon.

By way of comparison, anyone can spend $10 today to reduce one metric ton of carbon dioxide by investing in projects through groups like the Bonneville Environmental Foundation. These projects are certified by independent auditors, and the state promotes them in the Clean Energy Fund. Rather than investing in effective projects, however, Washington politicians are pushing policies that spend $150 to get only $10 worth of environmental benefit.

It gets worse.

Last year, Washington state used money from the Volkswagen legal settlement to fund electric buses. According to our estimates, this costs an incredible $1,538 per metric ton

of reduced carbon dioxide. The state Legislature also adopted legislation to subsidiz.”community solar” projects that put rooftop solar (the most expensive form of energy) on roofs in Washington (one of the worst locations in the country for solar). Using data from Google and the National Renewable Energy Laboratory, we calculated that those subsidies cost $1,629 per metric ton of reduced carbon dioxide.

This problem is not limited to climate policy.

Washington state is spending $750,000 to study the impact of the Snake River dams on salmon populations. This simply echoes a more comprehensive study from the federal government and decades of research by National Oceanic and Atmospheric Administration Fisheries. Meanwhile, there are several unfunded salmon-recovery projects in north Puget Sound that could help salmon and orca populations in the near term. Instead, legislators chose to spend the money on yet another study.

Spending money on protecting the environment is not the problem. Indeed, I applaud that. That is one of the wonders of economic prosperity — we have the resources to help salmon, preserve open spaces and protect the environment. I spend my own money to reduce carbon dioxide emissions and fight against plastic in the ocean.

The sin is wasting money that could have helped the environment. Wasting opportunities to maximize environmental benefit will end up harming the environment. Now that budgets are tight, we should lament, and learn from, those lost opportunities.

I don’t know what will happen with the economy over the next year. Nobody does. But I hope the lesson we take is that it is important — in good times and bad — to get the most out of every public dollar we devote to environmental stewardship. ■

Todd Myers is the director of the Center for the Environment at Washington Policy Center. He is one of the nation’s leading experts on free-market environmental policy. Todd is an author and researcher. He formerly served on the executive team at the Washington State Department of Natural Resources.

PHOTO: iStockphoto. com/wildpixel

COVID-19: the market gets a virus Building a plan, sticking with it still best course of action

Over the past month, global markets have seen rapid declines due to fears about the impact of the coronavirus. Almost everyone is now familiar with the origin and spread of the virus that causes COVID-19, along with the massive efforts to slow its advance. But for those invested in the stock market, the more personal questio.”How will this impact my future?” is very real. While no one can predict the future, and while each investment situation is unique, we can at least provide a bit of historical context and real numbers that help support a case for maintaining a level head and sturdy hand when it comes to your investments. Nathan Twining

tial to impact economies, many with a much higher mortality rate than the current pandemic. In some cases, there was a drop in markets, and in others, the market shrugged it off and continued upward. The chart below shows some of those epidemics and the returns 1, 3, and 6-months post-epidemic.

What is unprecedented is the abruptness of this drop, as is the reaction of governments around the world. We have experienced dramatic personal restrictions, as well as some of the largest daily market movements

Is this unprecedented?

Yes and no. Since 1970, there have been several epidemics with the poten

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in history, with double-digit percentages being almost commonplace. The market, being an efficient aggregator of current emotions, fears, risks and future possibilities, is incorporating the vast implications of the virus at a rapid clip.

How does this impact me?

That largely depends on how well you prepared. If you have a good financial plan (one that you can stick to) and a well-diversified portfolio, the impact to your planning goals should be minimal. Well-diversified portfolios are designed to withstand volatility and recover from it. That doesn’t mean your portfolio won’t go down in value, but it should help mitigate the more extreme drops. Your plan should already account for short-term spending and withdrawal plans during down markets. If, however, you have a concentrated portfolio of individual stocks or other asset classes and/or a poor plan (or a good plan that you choose to abandon), you will likely experience substantial losses that may never be recovered. These are the real risks of owning a concentrated portfolio of individual stocks or of selling everything during market declines. Unfortunately, this is a lesson that largely seems to resonate only after it’s too late.

No one should invest with the expectation that bear markets or volatility will never strike. You might be surprised to recall that since 2009, the S&P 500 has experienced drops of 5% or more 26 different times, with a variety of concerning headlines to go along with each. Stocks are volatile, and your plan needs to account for that.

What should I do?

The temptation to fret over the drop and impulsively sell your investments will strike early and often. Pessimism and gloomy headlines will continue to dominate the news. While selling everything and sitting on the sideline might feel better in the short term, it is likely to devastate your long-term goals. There is no telling when the market will stop dropping, and often the largest single-day gains in markets come during the most volatile times. Missing out on those large gains has a huge impact on your returns. Your investment plans should not hinge upon successfully timing drops or recoveries in the market, as that has been attempted innumerable times with dismal results.

Instead of retreating from a market downturn, the best course of action is to be proactive within the context of your plan: If you have lots of cash sitting on the side, now is a good opportunity to evaluate how that fits into your long-term goals. Talk with your financial adviser. Look for opportunities in tax-loss harvesting, in rebalancing your portfolio back to target allocations, or in taking advantage of Roth conversions.

Having a disciplined process on which to rely during times of market duress is invaluable. If you don’t have a plan or are feeling lost, seek out a qualified adviser to help you navigate. Build a plan and stick with it; your future is (still) bright. ■

Nathan Twining, CFP®, is a Lead Advisor and Principal with Financial Plan Inc, in Bellingham. Following his career as a civil engineer, Nathan found fulfillment planning for and serving the financial needs of clients across the country. Distilling complex plans into concise objectives is something of a professional hobby and Nathan is passionate about bringing objectivity, trust, and honesty to the Financial industry. Outside of work, Nathan can be found spending time with his wife and three daughters, golfing, reading, mountain biking or behind the drum kit. He is proud to be a member of Rotary International’s Rotary Club of Bellingham.

The sow must go on The COVID-19 pandemic complicates things, but Washington farmers and ranchers will press forward

Pam Lewison

Like any other business owners, farmers and ranchers are no strangers to challenges. Whether it is a downturn in commodity prices or a global pandemic, the agricultural industry maintains an ever-present drive to produce and continue forward.

The recent emergence of COVID19 has not changed agriculture fundamentally, but it has highlighted some of the pressures farmers and ranchers in our state face annually.

As seasonal work begins to pick up in agricultural production, the need for employees increases as well. The 2020 demand for labor is the same as or greater than it was in 2019. The question that weighs heavily on the minds of agricultural employers is where their labor force will come from.

Washington state relies on the federal H-2A temporary agricultural jobs program to fill the needs of many farmers, particularly in the tree fruit industry. There had been concern in recent weeks that H-2A workers from outside the United States would not be allowed into the country due to travel restrictions. However, H-2A workers who have previously worked in the United States now will be allowed to work through the season here.

Once the workers arrive, there is an additional problem: the Adverse Effect Wage Rate. The federally mandated H-2A wage for Washington state, currently set at $15. 80 per hour, operates as a driver for wages for the domestic and temporary work forces. When a farm hires an H-2A worker, an employer is required to pay all workers at the same rate as the H-2A worker, habits and contract availability to how long the COVID-19 crisis lasts.

A final note during this chaotic time: farmers and ranchers have been recognized by the United States Department of Homeland Security as providing an essential service. The reason for that is simple — the production of

creating artificially high costs for all workers regardless of hiring status.

Beyond labor concerns going into the busy farming months, commodity prices and markets are currently fluctuating unpredictably. When demand in grocery stores goes up — shelves being emptied of flour, cold cases bereft of meat — there is a perception that commodity prices are on the rise. Higher market prices do not necessarily reflect a price increase at the farm gate. Market volatility is part of the agriculture industry. Whether it will last depends upon factors ranging from purchasing

healthy, affordable food is critical to all of us. Washington’s farmers and ranchers have long been an important part of this state’s economy and will continue to be as we move forward beyond the current trying times and into the next farming season. ■

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Pam Lewison is a fourth-generation farmer from Eastern Washington and the agriculture research director for the Washington Policy Center. She has a master’s degree in agricultural leadership, education and communications from Texas A&M University and completed her undergraduate studies at Washington State University. You can read more of her research at www. washingtonpolicy. org.

PHOTO: iStockphoto. com/Rawpixel

14 and a fiscal conservative Seeing the world as a financially savvy ninth grader

Dylanger McKissen

38 BUSINESSPULSE.COM | MAY/JUN 2020

I began paying attention to politics in 2015, when I was 9 years old. My dad would tell me about this famous businessman running for the Republican nomination and about a mostly unknown senator trying to upset a Clinton dynasty. I didn’t always understand what he or the politicians were talking about, but I knew one thing: I was going to be like them one day. I was going to make a difference. I immediately began an intensive process of teaching myself about U. S. history, political ideologies and basic economics. I began thinking about who I was and what I believed in. I delved deep into the black hole that is Wikipedia. Even then, I knew that a fifth grader who sequestered himself daily to learn the ins and outs of the Ford administration or the Gulf War was unusual. This experience sparked my interest in conservative ideas, and especially in conservative economics.

Where I’m coming from

My dad and I go on an annual summer road trip. In addition to driving all over the country, I’ve lived in Arizona, Florida, Missouri and Washington. From Trump country in West Virginia to the cities most friendly to Alexandria Ocasio-Cortez, I’ve seen America for what it is: a diverse group of some of the best people in the world. Sometimes those people passionately disagree with each other, but I have had amazing friends and neighbors in the conservative community we used to live in in Missouri, and amazing liberal

friends and neighbors we’ve met since we moved to Bellingham.

Seeing the effect that regulation has on the different places I’ve visited and lived has drawn me closer to the ideals of center-right economic policy.

In Missouri, my older sister started working at our neighborhood coffee shop when she was 15. She held that job for four years and learned a lot. My little sister and I used to love visiting her for hot chocolate.

There is much to love about Washington and Whatcom County, but when we moved here I started learning about our local economy and the issues affecting businesses. I know my sister would most likely not have had the same opportunity to get a job in a coffee shop at 15 if we lived in Bellingham. Having concerns about the minimum wage doesn’t mean I want anyone to be poor, hungry or struggle for a place to live. It just means there are practical implications to our policies.

And that’s what fiscal conservatism is all about: practicality.

What does being fiscally conservative mean?

From my experiences, knowledge and understanding, conservatism focuses on using one’s (or a nation’s) resources as effectively as possible while balancing all other factors as fairly as possible. It means protecting the lives of those who cannot protect themselves. It means applying to the nation the same financial logic we use in our personal lives.

It is completely possible to be pro-business and fiscally conservative while holding social ideas that don’t align with the politicians you believe have your best economic interests in mind. Supporting policies that help families pay their bills, maintain their dignity, and, if they are business owners (like my parents), create opportunity for others, does not make you a liberal or conservative. It makes you a compassionate, reasonable person.

In my family, people disagree on politics. Let’s just say my sisters do not have the same affection for Ronald Reagan and George H. W. Bush that I do — and that’s OK. They know who I am and what’s in my heart, and I know the same about them. Disagreeing on tax policy and the minimum wage should never be a reason to demonize someone. In the end, everyone wants the same thing for themselves and for their neighbors: an economically secure life in which they can achieve their version of the American Dream.

Being a 14-year-old conservative means your friends and siblings sometimes don’t agree with you — until they hear why you believe the things you do. It helps if you can share your ideas with them while still respecting who they are and what they believe. We should never believe a person is bad just because we believe their idea is bad.

And if you are 14, you should remember that sometimes economic conservatism can give you a job that you can learn from and be proud of and that can give you the skills you need to make money later in life. Wanting that job doesn’t make you a Democrat or a Republican.

It makes you the one kid in your class who has money in their pocket.

Dylanger McKissen is an eighth grader at Meridian Middle School. He will be the ninth grade associated student body vice president for the incoming class of 2024 at Meridian High School. He is involved in track and field and basketball and has many personal interests, including U. S history, politics, economics and astronomy.

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has endured near-constant change. Small farms have had to develop innovative strategies just to compete. The local, regional and national dialogue around genetically modified foods challenges producers to communicate complex issues of food safety and farm productivity in a way that helps consumers understand exactly what a genetically modified organism actually is. Shortcomings in trade policy and the growing relevance of international financial markets are additional sources of constant change. Really, the only constant in agriculture is change — but area farmers are ready to cope with change and overcome any obstacle that comes their way. Even a pandemic.

“I am and always will be proud to call myself a Whatcom County farmer,” said Galen Smith.”I have traveled across the region, across the country and across the world. I might be biased, but many of the best, smartest, toughest, most resilient people I have ever met live in this community. They are farmers and ranchers, for sure, but they are also leaders. They are innovators. They believe in this county and its people. The months ahead will present challenges, but I guarantee you that the ag community will help lead us through those challenges.”

Farming, ranching and agriculture aren’t the most glamorous industries. They literally require a willingness to roll up your sleeves and get your elbows a little dirty. They also require an ability to roll with the punches and to make the best possible hand out of the cards the world deals you. No one expected or wanted a pandemic that caused a temporary shutdown of the local, state and national economies, but farmers and ranchers live with the unexpected and unwanted nearly every day. Some days, they need a little sunshine, and all they get is rain. Sometimes a deer gets into a crop. Sometimes milk prices plummet. If the expected was all they could rely on, Whatcom County farmers would have a lot less to worry about. But that isn’t how farming works. In farming, as in life, the only thing you can count on is change.”Farmers and ranchers might be quiet leaders, but they are leaders,” Pam Lewison said.”They always will be. 2020 will differ from what we forecast for the industry. How different will it be? Time will tell. But in the long run, agriculture will continue to be one of Whatcom County’s most essential industries, and in the short run, the importance of agriculture shows just how critical some of our traditional industries are to local economies.”

In other words, the unexpected events of 2020 are a reminder of how important the basics are: an evening spent with your child, a healthy grandparent, a roof over your head and a strong local agriculture sector that will keep food on your table. ■ (Continued from page 18)

Agriculture

“Farmers and ranchers will always do what they do best: see a challenge, identify a solution and get the job done.” -Pam Lewison, director of the Washington Policy Center Initiative on Agriculture

PHOTO: iStockphoto. com/phonlamialphoto

PHOTO: iStockphoto. com/PhonlamaiPhoto

Jim McKinney First printed in the Epoch Times, April 1, 2020; updated April 22, 2020

The COVID-19 pandemic and subsequent global economic shutdown has had dramatic consequences for numerous industries. The shutdown has forced London Metal Exchange prices for aluminum below sustainable levels for U. S.-based producers. Heavily subsidized Chinese aluminum producers will soon cost more U. S. manufacturing jobs. Today, April 22, Alcoa announced the curtailment of its Ferndale Intalco smelter, a move that will impact the local and state economies and drive the U. S. deeper under Chinese control of a critical defense-related industry.

Prior to the virus outbreak, two U. S. aluminum smelters were slated for closure due to low LME prices, primarily due to Chinese overproduction and energy subsidies.

With the COVID 19 crisis, the remaining U. S. production capacity cannot economically compete, placing access to an essential metal for U. S. industry, and U. S. sovereignty, at risk.

As the People’s Republic of China dominates world aluminum production, U. S. domestic aluminum capacity is in peril. The U. S. had only seven operational aluminum smelters as of this writing — the PRC has over 140. America will soon be down to four. All U. S. facilities are financially at risk without significant assistance. A loss of U. S. aluminum manufacturing will be a direct threat to U. S. national security, our local economy and economic independence.

The Ferndale smelter has one of the highest production capacities in the U. S. at 280,000 tons per year. If it closes, it would take millions of dollars and possibly years to restore its capacity. It is the only operating smelter in the Western United States, and it employs over 700 skilled workers.

According to United States Geological Survey January 2020 estimates, total U. S. capacity is less than 1. 8 million tons annually. U. S. industry used 3. 4 million tons in 2019 and imports countless millions of tons of finished aluminum products, much from China. USGS estimates the PRC capacity at 44 million tons, more than 24 times U. S. capacity. China produced over 2. 8 million tons in February 2020 alone, the International Aluminum Institute estimates.

Aluminum is used in almost every aspect of economic production and national defense infrastructure. New aircraft, missiles, armored vehicles, electronics, radars and ships depend on the lightweight, strong and recyclable metal. F-18 and F-35 fighters use high-quality aluminum made at a single U. S. smelter in Kentucky, now operating at 40% capacity.

Aluminum is also a critical civil infrastructure commodity used in bridges, railways, buildings, machinery and transportation. It is prevalent in almost all health care equipment, from ventilators to hospital beds.

The PRC dominates global aluminum production, with as much as 60% of the world’s capacity. China has subsidized rapid expansion and saturation of the industry. The highest cost in aluminum processing is energy. The Chinese Communist Party’s economic hybrid system subsidizes power for producers.

Cheap, subsidized PRC aluminum has flooded global

and American markets since the PRC joined the World Trade Organization in 2001. As a result, the number of aluminum smelters in the U. S. fell from 23 to seven since 2001. Ten smelters were lost in Washington state alone. The outcome has forced U. S.-based facilities to close and put countless Americans out of work.

The shutdown or curtailment of the remaining U. S. aluminum smelters will force American industry to depend on foreign imports for a critical defense and economic resource. A shutdown of Intalco, the last remaining aluminum smelter in the Pacific Northwest, will have a staggering local effect, costing 700 high-paying jobs in the Whatcom County economy. In a perilous moment in history, the local, U. S. and global future will be dependent on the CCP’s market manipulations for one of the most critical defense-related materials.

In the President’s National Security Strategy, maintaining the U. S. defense industrial base is essential. American industry depends on aluminum, the most recyclable metal on the planet. It is essential for future economic growth and defense. The U. S. cannot allow CC.”authoritarian capitalists” to dominate this critical industry.

I recommend these possible solutions: 1. Designate the domestic aluminum industry as a critical national defense priority, and create a national reserve stockpile of aluminum — the price is low, buy and hold. Purchasing a national aluminum reserve would provide immediate demand to reduce inventories and allow for a bridge through the COVID-19 pandemic. 2. In this time of crisis, establis.”Buy American Aluminum” policies for all U. S. defense and stockpile purchases. American manufacturers can and should compete in a fair market, but this market is not fair. 3. Provide loans and grants to U. S. facilities in the proposed phase IV economic stimulus infrastructure legislation for upgrades that will improve competitiveness and environmental efficiencies in order to compete with the PRC.

The pandemic is causing significant damage to countless industries. Many need help, but some are core industries that the United States cannot afford to lose and still maintain sovereignty. U. S. aluminum is one of those industries, and it is teetering due to this pandemic. In a geostrategic quest for power, the CCP could not have planned it better. ■

Lieutenant Colonel James McKinney is a retired U. S. Army Foreign Area and Intelligence Officer with over 30 years of service in strategic, tactical and special operations assignments around the globe. He is now a defense and strategy consultant and serves on the Board of Saturna Investment Trust.

For the first five or six months, he didn’t have one day off.

“By afternoon, I’d let the others go early,” Cantu said.”Then I’d be the one to seat them, take the order, make their drinks, cook their food and serve them.”

As he said, it was hard.

“Sacrifice,” he said.”It’s hard work, time and sacrifice. I missed a lot of birthdays and events.”

He and Alicia mortgaged their home and had sleepless nights, but they continued. By the second year, things grew. In year three.”It took off.”

Keys to success

“It’s a formula people like.”

“My employees give attention to every person, no matter what they spend,” Cantu said.

In addition to this personal attention, the second key i.”quality control in the kitchen.”

“We use recipes I’ve created,” he said.”We cook from fresh and use good recipes.”

From scratch? Yes. Chefs make their own chips, salsas and desserts and grill the meat themselves.

Then.”We serve with a smile.” The years of working in fine dining restaurants and country clubs paid off.

“You need to care about your customer,” he said.

The money will follow, he emphasized. The customer is first.

After establishing the three Jalapeños restaurants focused on Mexican cuisine, he ventured into an Italian bistro concept in Luna’s, adjacent to Regal Cinemas in Barkley Village.

“I like both concepts,” he said.

Of his four children, three from his first marriage, one is part of the business. Daniel, who worked in restaurants during college and has training in graphic design and technology, will be Cantu’s successor. With Daniel’s know-how, they have upgraded three point-of-sale systems in-house, saving money in the process. During the COVID-19 crisis, they quickly set up a new online system to streamline orders and deliveries.

At 66, Jesse Cantu is definitely not thinking of retirement.

“I still have the passion,” he said.”There is a passion in creating something for the public.” ■