Agri-Business 2014

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For information, contact your nearest collection facility. Union County...City Garbage Service 3412 Hwy 30, La Grande 541.963.5459 Baker County...Baker Sanitation 3048 Campbell Street, Baker City 541.523.2626 Wallowa County...Wallowa County Public Works 619 Marr Pond Lane, Enterprise 541.426.3332


AGRI-BUSINESS

OCTOBER 2014

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THE OBSERVER a BAKER CITY HERALD —3

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AGRI-BUSINESS

4 — THE OBSERVER a BAKER CITY HERALD

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ON THE COVER: Harvesting sileage corn in BakerValley. •

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2014: Dry, but not a disaster for Northeastern

Oregon farmers and ranchers

Growing potatoes is a labor-intensive endeavor, but prices make it an attractive crop

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Opinions differ on GMO food labeling

Beef market remains bullish

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Beef: It's what's for dinner in.... China

Bountiful harvest for Folly Farm near Cove

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Grass-fed and grass-finished beef a natural for Baker Valley ranchers Rebecca and Scott Jager

Good golly, it's garlic! Family grows 30 varieties on their farm near Baker City


AGRI-BUSINESS

OCTOBER 2014

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Bob and Michael Black have owned Black Distributing Inc. since 1971. Shannon Black is the general manager of the family business. I n 1988 a c ard-lock station was added at Th ird and B r oadway Streets. In 1 9 9 2 the card-lock station began offering attendant service to the general public without restrictions. The general office for the business is at the Broadway location. A commercial-only cardlock is located at the bulk plant on 17th Street.

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Help educate our young adults to the dangers of excessive drinking. For moreinformation or brochures, contact lLTew Directions 541-523-8364 • 2100 Main, Baker City orthwest Inc.

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• Late winter snowstorms in the high mountains, and timely rains during the summer, kept the worst of the drought at bay

AGRI-BUSINESS

OCTOBER 2014

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benevolent at the cusp of summer, though. a e Asked to describe the 2014 growA winter with a rather skimpy ing season in Baker Valley, Jan snowpack was followed by a spring Kerns chooses an adjective that isn't that failed to bring the copious rains typically associated with the region's that gmwers depend on during that inclement climate, noted for its June crucial season. e fiosts and August hailstorms. May, on average the wettest r "Gentle." month in most of Northeastern 'The whole season turned out Oregon, didn't deliver. to bepretty gentleon crops,"said Rainfall that month was less Kerns, who with her husband, Tim than half of average at the Baker L. Kerns, grows potatoes, wheat CityAirport. By the end of May and alfalfa on their Kerns Rainbow the yearly deficit at the airport was Ranch. almost three-quarters of an inch. The situation for local farmers and ranchers didn't seem nearly so See Dry/Bge8 C attle grazing in a pasture near Baker City.

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show our support fqr local agriculture. Our farrrring and ranching families r e the cornerstone of'the community and we value

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OCTOBER 2014

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THE OBSERVER a BAKER CITY HERALD —7

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AGRI-BUSINESS

8 — THE OBSERVER a BAKER CITY HERALD

BAKER CITY RAINFALL: 2014 3ANUARY This year: 0.50 inches Average: 0.87 2014 Deficit: 0.37

FEBRUARY This year: 1.19 inches Average: 0.62 Cumulative 2014 Surplus: 0.20

MARCH This year: 1.04 inches Average: 0.80 Cumulative 2013 Surplus: 0.44

APRIL This year: 0.54 inches Average: 0.82 Cumulative 2013 Surplus: 0.16

MAY This year: 0.58 inches Average: 1.46 Cumulative 2013 Deficit: 0.72

3UNE This year: 1.02 inches Average: 1.31 Cumulative 2013 Deficit: 1.01

3ULY This year: 0.05 inches Average: 0.53 Cumulative 2013 Deficit: 1.49

AUGUST This year: 0.70 inches Average: 0.66 Cumulative 2013 Deficit: 1.45

SEPTEMBER This year: 0.38 inches Average: 0.58 Cumulative 2013 Deficit: 1.65

OCTOBER 2014

DRY Continued ~om Page6 "Going into the summer, looking up at the mountains, the lower elevation snowpack just wasn't there," said Kerns, who lives near the base of the Elkhorn Mountains northwest of Baker City. She and her husband rode four-wheelers up Rock Creek to Eilertson M eadow in lateJune or early July, and she said she was surprised by how dry the ground was even atan elevation of about 5,400 feet. Yet the water shortagethat seemed imminent never really materialized, Kerns sald. "The water seemed to stretch long enough to get by," she said."And it seemed like the rain we didgetcame at the right time." Jess Blatchford, whose family grows wheat and potatoesin Baker Valley, credits a series of storms in late February and early M arch that bolstered the snowpack high in the Elkhorns. And because there were no spring heat waves, that snow melted gradually, rather than coming off the mountains in a single torrent. "Mountain water turned out to be pretty good," Blatchford said. Farmers and ranchers also benefited from something they didn't get, forthemost part. Hail. Kerns said some of her family's fields were hit by hail during one thunderstorm, but the stones didn't damage the crops.

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Harvesting barley in BakerValley, with the Elkhorn Mountains in the background.

July was hotter than usual but the timing of the heat waves was fortuitous, Kerns said, becausepotato plants didn't yet have the heavy foliage that makes them vulnerable to wilt-

ing during torrid days. Moreover, nights, with a few exceptions, were cool. "That really helps," Kerns said."Potatoes need coolnights." The warmest night of the

summer, July 14, the low temperatureat the airport was 62 degrees. SeeDry IPage 10


AGRI-BUSINESS

OCTOBER 2014

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THE OBSERVER a BAKER CITY HERALD — 9

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AGRI-BUSINESS

10 — THE OBSERVER a BAKER CITY HERALD

DRY Continued ~om Page8 On everyother night the temperature dropped to at least 58, and on many nights it dipped below 50 — 15 such nights in July and 24 in August. "It was just about an ideal growing season forpotatoes, "Kerns said. The spud harvest in late September and early October was complicated by unseasonably warm days — the temperature topped 80 on several days during that period — which made it difficult to keep storage cellars cool, Kerns said. Blatchford said his family's crews had to adjust their harvesting machines' positions — "we ran our windrowers about 100 yards ahead of thediggers,"he said — toensure potatoes weren't exposed to the warm sun for too long. Crews were able to get potatoes &om the field to the fan-cooled cellars within 15 to 20 minutes, Blatchford said. "Itwas a bitofachallenge attimes, "he said. The relative scarcity of summer thunderstorms meant many hay growers were able to get theiralfalfa and grassbaled beforeit

"Itwas anotherdroughtyear,butw e' re still prettyfortunate compared with

other partsfothe country." — Chris Heffeman, North Powder farmer

was doused by downpours. ''We were very fortunate around here," said Chris Heffernan, who owns North Slope Hay and Farm, a farming, timber and custom-farming business with his wife, Donna, and their sons, Justin and Sheldon, near North Powder. It was an ideal summer to put up a quality hay crop, too, because hay prices are high, Heffernan said. He's also excited about the sunflower crop his sons have tended on the family's property near Clover Creek, north of North Powder. Although sunflowers, which are grown forseed,have been avaluablecrop in the Grande Ronde Valley for several years, the Heffernans were the first farmers to grow sunflowers on the south side of Ladd Canyon. Chris Heffernan said this year's crop,

OCTOBER 2014

which is scheduled to be harvested this week, is a good one. But it turns out that the benefits of growing a crop for the world market — the Heffernans sell their sunflower seeds to Pioneer, a Woodland, California, distributor that sells seeds in Europe and elsewherecan bea curseaswellasa blessing. The problem, Justin Heffernan said, is the unrest that plagued Ukraine earlier this year. That country, which has been partially occupied by Russian troops, is an important market for Pioneer. But the Russian occupation has at least temporarily closed most of the markets in Ukraine, Heffernan said. Fortunately, Pioneer officials found out about the closed markets before the Heffernans planted this year's sunflower crop. They ended up planting wheat on 75 acres that were originally scheduled to be sown in sunflowers, Justin Heffernan said. The loss of the Ukraine market probably will mean the Heffernans get a lower priceforthisyear'scrop compared with last year's, buton thepositive sideofthe ledger, this year's sunflower yield is good enough to make up much of the difference, Justin

Heffernan said. Chris Heffernan's assessment of the 2014 water year mirrors Kerns' and Blatchford's. "It was another drought year, but we're still pretty fortunate compared with other parts of the country," Heffernan said. His concern looking to 2015 is that the effects of drought are cumulative — the water supply shrinks more with each successive dryyear. "Everybody's concerned about water now," he said. And with good reason. The drought has depleted many ofthe region's irrigation reservoirs. Phillips Reservoir, along the Powder River about 17 miles southwest of Baker City, is at 15 percent of its capacity, slightly above last year at this time but well below the average from the previous five years. With such a paltry carryover of water, it will take a bountiful mountain snowpack to refill the reservoir next spring and summer. Phillips supplies irrigation water for about 30,000 acres in Baker Valley. This yearfarmers received lessthan halftheir normal allotment of irrigation water &om the reservoir.

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THE OBSERVER a BAKER CITY HERALD — 11

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OCTOBER 2014

rowers'o inions i er on By Cherise Kaechele The Observer

Oregon voters will decide in the Nov. 4 election whether to require packaged foods containing genetically modified organismsGMOs — carry labels identifying them as such. Measure 92 is sponsored by Oregon GMO Right to Know and is giving voters the choice of requiring raw and packaged food to be labeled that is entirely or partially produced by"genetic engineering," according to the Ballotpedia website. Voting"yes" on the measure would require the retailers, suppliers and manufacturers of all the GMO products to label their food. "I think it's a little bit of an overreaction to something that isn't very important," said Dale Case of Cove, who has served on the Oregon WheatFoundation.

"It's di fficult to think these

"I thinkit's a little bit o f an overreaction to something thatisn't very important."

chemicals do no harm to human and animal systems."

— Dale Case, wheat grower who opposes GMO food labels

— Margaret Mead, who supports GMO label measure

"The GMO hasnotbeen proven to cause any problem within the foodchain sofar,atleast,and so I think we don't need to be concerned," Case said. Currently, the law does not require GMO labels. The measure would begin a chain oflabeling beginning with the producer to label their contents as genetically modified and down the line from the manufacturers to the suppliers. Margaret Mead of La Grande is a localfood producer who believes productsshould be labeled iftheir food is genetically engineered.

"Three huge corporations own most of the GMO seeds and can charge farmers what they want and make it virtually impossible — due to contamination of nonGMO crops &om the GMO onesto savetheirown seed,"said Mead said."Non-GMO seed is becoming scarce." Jess Blatchford, whose family grows wheat and potatoes in Baker Valley, neither of which is a GMO crop, said he opposes Measure 92 for two reasons. First, he citesthe lack ofpeerreviewed studies showing that GMOs pose any health risk to

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people. Second, Blatchford said he's concerned that GMO labeling laws will increase the cost not only for companies that sell the packaged foodthatcarry labels,butalsofor farmers such his family who grow the staplecropsused in those foods. "All that cost trickles down to everybody," Blatchford said. The measure's biggest opponent is the organization No on 92, according to Ballotpedia. One of the organizatio n'sdirectorsis Scott Dalhman, who is the executive director ofOregonians for Food and Shelter. The organization advocatesfor "the right to responsibly use pesticidesand biotechnology,"according tothewebsite. M ead said she believestheNo on 92campaign istryingtoscare peopleintovoting againstthe

measure. 'The 'No on 92' campaign uses the scaretacticofgreatercostsfor ourfoodiflabelshave to change," Mead said."Companies change their labels &equently and the additional info would cost little, if anything. Plus, we don't know the long-term health care costs the GMOs cause." Mead said the GMO crops arebecoming more resistant to pesticides which makes stronger chemicals necessary. 'These chemicals get into the foods we consume as well as iintol waterbodies,"M ead said."It'sdi5cult to think these chemicals do no harm to human and animal systems. Some studies have shown a greater increase in health issues concomitant with the development of GMO crops." Jayson Jacoby of the Baker City Herald contributed to this story.


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD — 13

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14 —THE OBSERVER s BAKER CITY HERALD

OCTOBER 2014

S. John Collins/Baker City Herald file photo

Cattle gather at a water trough in the arid rangelands east of Baker City.

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• Northeastern Oregon ranchers are part of a truly world market, which means minor changes in demand across the globe can have big eII'ects here S. John Collins/Baker City Herald file photo

By Jayson Jacoby Baker City Herald

John Williams tracks the beef cattle industry in Northeastern Oregon but his gaze extends clear across the Pacific Ocean. And his focus is on China. sWe're in a world market," said Williams, a livestock agent for the Oregon State University Extension Service who's based in Wallowa County.'The demand side of the supply-demand curve for beef is including more and more foreign markets." And no market has more potential than China, with a population at 1.3 billion and growing. "Just a half-percent increase in demand in China is huge for the world market,"Williams said. China is big but also, he concedes, unpredictable. Still and all, if the country's middle class continues to grow, and along with it a hunger for beef, it'spossiblethattherecord-

high beef prices that Northeastern Oregon ranchers have enjoyed the pastcouple ofyearscould become the "new baseline" rather than a welcome but unsustainable blip on the charts, Williams said. The outlook, even not accounting for China, is good, he said. One of the main reasons for the rise in beef prices is that the U.S. cattle inventory has plummeted to its lowest level in more than half a century. That's mainly the result of persistent severe drought in cattlerich Texas and Oklahoma that forced many ranchers to cull their herds or get out of the business altogether, Williams said. Ranchers are beginning to rebuildtheirherds,butsofarit's been an extremely slow process, he said. Northeastern Oregon ranchers in general have fared better than their counterparts in droughtstricken regions.

Williams said his oft-repeated joke this year, in reference to the drought that has affected much of the West, and California in particular, is that sWallowa County refuses to participate." Indeed, both Wallowa and Union counties have barely registered on the drought index monitor this year, being rated instead as "abnormally dry." Baker County's conditions aren't so good, with moderate drought in the northern part and a severe drought in the south. But even that's better than the situation in much of California and smallsections ofNevada, Oklahoma and Texas, where the federalgovernment ratesthe drought as "exceptional," as in exceptionall y severe. "All in all, we weathered pretty well,"Williams said iseerelated story at right). See Beef/Fbge 28

Phillips Reservoir near Baker City was about half full when this photo was taken in June 2014. The reservoir receded farther during the summer.

Drought'sseveri goes from minor inthe north to severe tothe south By Chense Kaechele

leton. The Grande Ronde Valley is in the yellow category of the U.S. Nothing short of a crystal ball can predict how next year's Drought Monitor Index, meanfarming season will go, but the ing the area is abnormally dry. upcoming months may give us a Local conditions may vary, but fair glimpse. the drought monitor focuses on Eastern Oregon has been thebroad scaleconditions. "iLa Grande) isn't severe suffering through a drought the past summer, said Ann Adams, enough to be ranked,"Adams weather technician assistant sald. forecaster atthe National Weather Service office in PendSeeDrought/Fbge26 The Observer


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD — 15

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AGRI-BUSINESS

16 —THE OBSERVER a BAKER CITY HERALD

OCTOBER 2014

A ainstt e rain • Baker Valley ranchers Scott and Rebecca Jager emphasize flavor over animal size with theirherd ofgrass-fed andgrass-finished cattle

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By Debby Schoeningh For WesCom News Service

In an industry where the latest trend has been to breed larger&amed cattl etoincreasethe carcasssizeofoffspring fordinner plate-si zed ribeyes,Scottand Rebecca Jager are going against the grain. The Jagers own and operate a grass-fed/grass-finished cattle ranch near Baker City. Rather than follow the standards established in the mainstream grainfed beef industry, their breeding program at Four Pines Ranch focuseson traitsthatproduce animals easily adaptable to their environment while remaining

competitive in beefproduction. They are raising smaller &amed cows and calves that thrive without chemicals, antibiotics and growth hormones, taking the animals &om birth to slaughter, completely on grass. Some producersraisegrass-fed beefpriorto grain finishing, but the Jagers also finish with grass. "As a result, the animals grow at anaturalpace,"Scottsaid."For these reasons and more, grass-fed animals live low-stress lives and are so healthy there is no reason to treat them with antibiotics or other drugs."

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Rebecca Jager feeds her cattle at Four Pines Ranch near Baker City. She and her husband, Scott, raise smaller framed cattle that thrive without chemicals, antibiotics and growth hormones.

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18 — THE OBSERVER a BAKER CITY HERALD

AGRI-BUSINESS

OCTOBER 2014

Growing Potatoes InBaKerValley

' xce iona' ear orraisin s u s By Debby Schoeningh For WesCom News Service

Although the humble spud has graced American dinner plates for more than four centuries as an inexpensive food staple, it is neither theeasiestnorthe leastexpensive vegetable to grow commercially. Delbert and Samantha Stephens of Haines, who raise potatoesalong with cattleand hay, said that from planting to harvesting, potato cropsrequire specialized equipment and a lot of manpower. The Stephenses said although potatoes are a high cash crop, they are also costly to raise. "Itcostsabout $2,000 per acre toraisepotatoes untilthey are shipped," Delbert said. In comparison, alfalfa typically costs about $500 per acre. Delbert said theyrotate potatoes with five to seven years ofhay crops, but farm enough acreage to produce potatoes every year. This croprotation,he said,breaks up thedisease cycle ofpotatoesand maintains soil health by alternating from the deep-rooted potato croptoa shallow-rootedcrop. Part of the higher cost in potato crops is due to the manual labor involved. "Putting up alfalfa can be done by twoorthreepeople atm ost, while potatoes require an entire crew at harvesting time," Delbert sard. Forlocalpotatogrowers thereis also the additional cost of storage intemperature-regulated cellars. Potatoes in this area are usually sold under contract before planting, but not shipped until the spring following the fall harvest. Even with the higher production costs, potatoes typically bring higher market premiums than hay crops, depending on market fluctuations, making spuds a desirable crop torotateintoa

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Juniper Lanmon picks out the larger debris as the potatoes roll off of a truck onto a conveyor belt for sorting during the Stephens potato harvesting this fall near Haines. farming operation. The Stephenses contract their Russet Burbanks, which have a long storage life,to Heinz,forthe company's Ore-Ida brand frozen products including fries, hashbrowns andtater tots.M ostlocal growers, Delbertsaid,contract theirpotato cropsto companies for frozen foods, rather than selling them for fresh pack in supermarkets. He said potatoes grown in Eastern Oregon are typically

consideredto bepartofthe Idaho production, while potatoes grown farther west, beginning with Oregon's Columbia Basin region, are more commonly included in Oregon's production. Delbert said Baker County potatoes are particularly high in quality. "The cooler nights in this area create more dense potatoes which are graded better," he said. Although the hot days and nights in the west side of the state

m ake the potatoes grow faster, they are not as dense. Growing conditions for potatoes in Baker County were nearly ideal this year. Delbert said he plants potatoesabout April15-20 and usually harvests starting around Sept. 15; however summer-like temperaturespersisting into second half of September this year, he waited until Oct. 1. "Every year is a different year," said Delbert, "But this has been an exceptional yearforpotatoes."

Delbert said theaverage yield of potatoes grown in Baker County is 420 sacks per acre i100 pounds per sack). This year he said he did better than average. In fact most potato producers in the Baker Valley reported a better than average year with good weather, and "good digging" despite the rocks and heavy soil that can hamper harvesting production in some fields. SeeSpuds/Page 28


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20 — THE OBSERVER a BAKER CITY HERALD

AGRI-BUSINESS

OCTOBER 2014

GRASS-FED Continued ~om Page16 It takes a little longer to finish cattle on grass— about 18 to 24 months compared with 12 to 13 months for grain/corn fattened animals — but the Jagers say the added time and expense is worth the investment considering their finished product is healthier for consumers, their resources are sustainable, and their cattle are allowed to grow and mature on the animal's native diet. "For production reasons, we select for smaller-sized cattle which means we can run more animals per acre," says Scott.'This changes our focus from production per cow to profi tperacre." The Jagers got serious about raising grass-fed/grass-finished cattle about five years ago. a '%e were doing a lotofreading and research and found that rais~J P sr ~ ing cattle purely on grass seemed Debby Schoeningh/ForWesComNews Sennce logical and intriguing," Rebecca said."Being new to ranching, we Rebecca and Scott Jager chose Black Angus and Red Angus breeds for their Four Pines Ranch in haven't lived with any other tradi- Baker Valley. tions. At this point we are sold on theprocess.Itworksfor us." finishing process, we make sure "We weredoing a lot of reading and researchandfound that Grass-fed genetics and they have the best new growing raising cattle purely on grass seemed logical and intriguing. At breeding grass. This leads to the best flavor, this point we are sold on the process. It worksfor us." The Jagers chose Black Angus best quality and best tenderness." Although they do harvest beef and Red Angus breeds for adapt— Rebecca Jager, Four Pines Ranch ability, productivity and flavor, and in the fall, they say the best time for finishing and harvesting is in use data derived from ultrasound forungulates to calvebecause the technology and DNA testing for ished for processing in the spring the springbecause the grassis their bull selection to help them weather is warmer and the grass are put on the best quality grass," new and growing. Their pasture determinegenetictraitsthatare is growing, giving the cows the Rebeccasaid."The cow/calfpairs grass consists of orchard grass, important to them as beef produc- best nutritional support for milk can follow on the remaining, still fescue, brome, perennial ryegrass, nutritious, undergrowth of those ers, including good marbling and production." and oat grass, mixed with some tenderness. pastures." legumes such as alfalfa, sanfoin, '%e look for animals that thrive Grass feeding and finishing Although cattle can still thrive trefoil, and clover. with low maintenance and the on drier grasses, she said, "Once "Grass that is high in calcium As with most livestock producability to prosper on grass alone," ers, the Jagers' main commodity our temperatures reach 85 and phosphorous produces sweetsaid Scott. is grass. degrees, grassstartsto lignify iit flavored meat," Rebecca said. They also selectsiresthatare They raise hay, producing up to becomes more rigid and woody), "Grass from soils with low pH can ratedhighforcalvingease,aratthree cuttings annually, some they so for finishing cattle in the fall we be sour-flavored." Dry-aging the beef, Scott said, ing usually considered for heifer sell and the rest is used as winter supplement with alfalfa hay." breeding, but the Jagers use these feed for their cattle. In the winter, Scott said that knowing when to alsoadds to thetenderness that finish the animals for slaughter is Four Pines Ranch beef aims for. bulls on their mature cows as they feed the cattle on the same "Most supermarkets in the U.S. well, which Scott says, "makes our pastures, covering the fields with key to having a successful product. "The general consideration is breedingseason nearly effortless." manure as a natural fertilizer. todaydo not dry-age their beef.It During spring, summer, and fall, heifers are ready to finish when Other traits they breed for intakes time and there is a significlude cattle with good dispositions, theJagersrotate theirherd to feed they weigh 10 percent less than cant loss of weight during the agfly resistance, and longevity. ing process," he said.'%hen beef is on pastures that have new grass moms, and steers 10 percent dry-aged, the carcass is hung in a They calve mostly in May. Regrowth. more," he said."For us that is "The cattle that are being finroughly 1,200 pounds. During our room at near freezing temperature becca said, 'This is a natural time

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for a week to even a month. During this time moisture evaporates from the muscle, thereby increasing the concentration and saturation of the natural flavor. Natural enzymes in the beefbreak down the connective tissue which makes more tender beef." The Jagers age their grassfinished beef for approximately 10 days and say they do notice benefits from using this process. Their main interest in raising grass-fed/ grass-finished beefisfor the health benefits. "Meatfrom grass-fed beefhas lesssaturated fatand cholesterol," Rebecca said."Studies have shown that it has more vitamins E and C, beta-carotene, and health promoting fats including omega-3 fatty acids and CLAs iconjugated linoleic acid) than grain-fed beef."

The Taste So doestheeatingexperience ofgrass-fed/grass-finished beef compare with the more traditional corn-fed cuts? Tom and Belinda Pilcher of Newberg think so. The Pilchers routinely purchase cuts of meat from Four Pines Ranch. 'The meat is so tender it almost melts in your mouth," said Belinda."Nothing can replace natural, grass-fed beefto support your health." The Jagers sell beef cuts yeararound after being processed and stored in vacuum sealed packages ifor freezingl at a USDA-certified plant. '%e sell by the cut because itrelatesmore to the general purchasers," Rebecca said."Most people aren't familiar with hanging weights and would need to learn what that translates to in yield. Rather than work off hanging weights, we bypass the randomness of individual yield by describing a whole beef as 400 pounds, half 200, quarter 100, and so on. This is a typical yield for 1,200-pound live weight." They can ship cold-packed cuts to six western states and deliver locally with no shipping costs. For more information visit www. fourpinesranch.com.


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD —21

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22 — THE OBSERVER a BAKER CITY HERALD '

AGRI-BUSINESS

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Cherise Kaechele/TbeObserver

Cindy Edwards and Ralph Edwards (background) provide a u-pick community garden for those wanting vegetables.

A bountiful year for Folly Farm By Cherise Kaechele The Observer

It was a great year for Folly Farm with the abundant moisture in May and the hot, hot temperatures in July and August. It made for a large amount of vegetablesfor thefamily and community to share. In late July, Cindy and Ralph Edwards, owners of the u-pick garden near Cove, had no complaints about the heat because their garden was flourishing. "We had hundreds of pounds of tomatoes," Cindy Edwards said. "Everything did very well. It was an excellent squash year." Folly Farm is on a one-acre pieceofproperty and the garden coversabout one-third ofthat. Edwards had already started planting spinach in her garden in mid-July, compared to last year when she wasn't able to until the first of August, she said. "It got warmer quicker," Edwards said."I think the damp

OCTOBER 2014

we had helped too. It was kind of wet in May and June and then it got really hot, really fast." The averagehigh temperature in July was 94 degrees — about nine degrees above normal. August (average high of 89.1, compared with normal of 86.8l and September(79.5,normal of 77.4lwere toasty,too. Folly Farm grows a little bit of everything— vegetables,herbs and some fruit. They also sell garlic. "Things are winding down right now," Edwards said. The few things left to harvest are the herbs. "We had a huge crop of basil that's just beautiful," she said. "And the greens... we had multiple succession planting of greens like kale, lettuce and spinach." Folly Farm also had quite a few varieties ofpeppers. "We're almost ready to pick our pepper crop," she said."It was a short hot pepper crop.

Without a greenhouse we're just a lit tle shortforpeppers." As far as timing goes for the end of the growing season, she said, Folly Farm is back to being on track. "We're just about exactly the same pace we were last year," she said. According to her records, she's just within a few days of where they were last year. She did say it was a drier season. "I think we have a more robust amount of vegetables than usual but it rained less often," she said. "We had some rain in late spring but then it seemed dry. We watered a lot. Thankfully we're on well water. We have a little creek in the back side of the property and it's completely dry right now for the first time since we've been here. It's usually a trickle by this time of year, and it's completely dry."

Northwest Farm Credit Services Despite an initial pull-back early in the period, demand and prices for beefproducts remained strong in the third quarter of 2014. However, price volatility continues. Key market drivers during the third quarter include: • Strong consumer beef demand: Domestic and export demand remain strong despite a continuationofelevated prices. • Continued record high cattle prices: While volatile, prices reached record highs during the third quarter due to constrained supplies. • Herd expansion: With the national cow herd at historic lows, continued strong calf prices have caused producers to retain heifers, which could further constrain short-term supplies. • Low corn prices: Many Midwest corn growers are purchasingcalves,and feed costs are declining, pushing feeder calf prices up. The Midwest has a competitiveadvantage over Northwest feeders given lower corn prices in the Midwest.

Price Discussion Volatility is the theme in the protein complex. Bears look for signsofconsumer price resistance and increasing protein supplies from the poultry and pork complex. Bulls point to signs of improving economic conditions and lower unemployment as well as consumers' differentiat ion ofbeefasa protein of choice. Price volatility and the rising costoffeedershasresulted in extreme margin calls and increasedcapitalneeds for feeders with hedging programs. Priceswere strong across all classesofcattle atthe end ofthe

thirdquarter.Pricesfor 550 lb. steer calves reached a record $259 per cwt in August 2014, comparedto$169 per cwt in August2013.Pricesfor 750 lb. feeder steers followed a similar trend, hitting a record high of $225 per cwt in August. Many cow/calf and stocker operations captured the market upswing by forward contracting calves and yearlings privately or through the video auctions. Calves contracted in the second quarter were priced much lower than those in the third quarter. (Calfpricesincreased as corn prices fell.) Demand for calves in the Midwest remains strong, as feeders look forcattle to take advantageoflow priced corn. Fed cattl e pricesrebounded aggressively trom June 2014 lows

that reached below $150 per cwt. September saw a rally in the market that pushed live fed prices to above $165 per cwt. Tight domestic cattle supplies and strong demand for beef from U.S. consumers continue to supportrecord beefprices. The price forchoice retailbeef increased to $6.24 per pound in August 2014, establishing a new record high. Beef prices increasedapproximately 21 percent through the third quarter of 2014. Increased exports have also contributed to record high domesticbeefprices.Rising demand, primarily trom Hong Kong, Mexico, Japan, Taiwan and South Korea, has driven U.S. beef export volume growth to date. Through July,beef exports were up 4 percent in volume and 13 percent in value. Demand for beef has grown in 2014, and consumers continue to supporthigh retailprices. See Beef/Page 26


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD —23

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24 — THE OBSERVER a BAKER CITY HERALD

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OCTOBER 2014

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The Bottger family, from left: Ezra, Kevin, Brooke, Rayna and Austin, and in the front, Samuel, left, and James.

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By Lisa Britton For the Baker City Herald

By the time Brooke Bottger's garlic was growing well this spring, a good percentage had already been reserved come harvesttime — by customers clear across the nation. She and her husband, Kevin, run Oregon Trail Garlic, growing 30 varieties of garlic on their propertya few miles outside of Baker City. This summer was their third

harvest. She started up a webpage two yearsago,and made itpossible forcustomers topre-order garlic as early as May 15. "Before the harvest came, we had 200 orders," she says. She estimates that nine out of every 10orders is ma iled to the eastpart ofthe United States. "New York is our biggest," she says. H er garlic has also gone to Pennsylvania, New Jersey, Iowa

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James Bottger, 4, is excited about his family's crop of garlic.

and Wisconsin. She suspects that the keywords she used for her website — garlic, natural garlic, local garlic, etc.— helps her page pop up first in a Google search. Buying Google ads also helped. "Ittripled our sales,"she says. It is slightly more expensive to mail garlic across the nation, and

she ships using the U.S. Postal Service because she can print labelsand drop the boxes offon the counter without waiting in line. The approach is especially handy for this stay-at-home mom with five children: Ezra, 16, Austin, 11, James, 4, Samuel, 3 and Rayna, 11 months.

Although the majority of their crop wasshipped east,she still had plenty for local sales. And, because she tries out every variety, she can tell you the distinct characteristics of each kind. See Garlic/Page 26


AGRI-BUSINESS

OCTOBER 2014

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26 — THE OBSERVER tt BAKER CITY HERALD

U,S, Drought Monitor

OCTOBER 2014

GARLIC October 7, 2014 (Re/eased Thursday, Oct. 9, 20$4) Valid 8 a.m. EDT

S ", D ou.htim ao( T e s De line ate s do mina nt'imp acts S= Bhort-Term, typically lessthan 6 months (e g. agriculture, grasslands), L = Long-Term, typically greater than 6 months (e g. hydrology, ecology)

~fnfensit DQ Aonarmally Dry D1 M adel ate Draught • D2 B mere Drought • Da Extreme Drought

Author: Maric Svoi1oda :Naliotta( Dough( Mittgaitbrt Cert(er

D4 E xceptiahal Drought

The Qrought tWonytor rocuses onhroadsca/e cord)t)ona Locef,conditdha rnay

vaty. Seeeccorrpanyfrg tMysurn'rnatyt'or forecast otaternants.

httP://clroughtmonitoI.Ijnl.edu/

Continued from Page 24 She can also give tips on usingand preserving garlic ishe dehydrates slices to use in soupsor stews, orgrindsitup to makegarlicpowder). Theirgrowing practicesare "certified all-natural" and they rotate fields to ensure a healthy crop. Garlic is planted in the fall and harvested the next summer. Brooke said they will plant during the last week of October. Then they water, cover with mulch and water again. She said the goal is to plant two tothree weeks beforethe ground freezes The garlic should be planted four to six inches deep. If it's too closeto the surface,thefreezing ground can heave the cloves to the top. For more information about Oregon Trail Garlic, or to learn about pre-ordering next year, visit their website, http//oregontrailgarlic.com or find them on Facebook.

BEEF Continued from Page 22

DROUGHT Continued from Page14 "As opposed to Baker County who is experiencing a worst drought. Most of Southeast Oregon is under extreme drought conditions." Adams looked at the seasonal outlook climate prediction center to see what the winter months might have in store for the valley, and the probability is that temperatures will be above normal. Shad Hattan, Union County watermaster for the Oregon Water Resources Department, said that in the past 15 years every year has been different which means there's really no "average year." "It depends on the snow and rain," Hattan said.'We're experiencing a multi-year drought." The moisture that runs into Wallowa Lake and the snowfall, especially if it comes early, is thedeciding factorforlocalfarmers and ranch-

DROUGHT ASSISTANCE Information about drought-relief programs for farmers and ranchers is available through the Farm Services Agency. • Baker City: 3990 Midway Drive, 541-523-7121, extension 2 • La Grande: 1901 Adams Ave. Suite 5 541-963-41 78 • Enterprise: 401 N.E. First St., Suite E 541-426-4521, extension 2

ers, Hattan said. Adams said the normal precipitation, including snow and rain, for November is two inches. December's precipitation total is 1.66 inches and January's is 1.63 inches. That doesn't include a massive snowfall, but reflects the overall average, she said. Adams said most of Umatilla County, Morrow, Union and Wallowa are on the same

drought level. Jennifer Isley at the La Grande Farm Security Agency, said the 2014 Farm Bill includes aid programs for farmers who lost income because of the drought. Union County was chosenas aprimary disasterarea due to the drought in the last crop year. Eligible producers who have suffered a grazing loss due to the drought on privately owned or cash leased land can partake in the program. Additionally, emergency loans for farmers and ranchers can apply for the low-interest emergency loan through the Farm Service Agency to help coverpartoftheirlosses. Adams said for those wanting to watch the drought index they can go to droughtmonitor. unl.edu. (see mapabove). "California is experiencing a much worse drought,"Adams said."Most of California is under exceptional drought — the worst level."

Input Costs • Pasture conditions: Drought-related stress has eased throughout most U.S. cattle producing areas,relieving some weather-related stress on input costs. • Fuel costs: The U.S. Energy Information Administration reported average gas and diesel prices during the first week of

September 2014 at $3.46 and $3.81pergallon,respecti vely. Since September 2013, gas

prices have decreased $0.13 and diesel prices are down an

average of $0.17 per gallon. • Interest rates: Short-term interestratesare stable,with the prime rate unchanged for four years.


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD — 27

YOUR FULL-SERVICE SEED SUPPLIER •

• Alfalfa — the finest genetics from Producer's Choice and Dairyland including Hybrids • Public Variety Favorites • Clovers — White, Red, Alsike • Range/Pasture Grasses • Beardless Barley, Oats, Peas • Custom Mixes

~+sTocK. srI>+ BAKER CITY, OR 8 98 1 1 0 t h S t r e e t • 5 4 1- 5 2 8 - 8 0 8 9 • 8 8 8 - 8 8 1 - 9 7 8 6 4 -H / F F A d i s c o u n t s

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• Barleys, Wheats, Oats

~~Forerttnner an d 1010 Forage Triticale rg/

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VITAUX INC.

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' oyv'ned,'Iic',W ' ll, " , r r'vI ce see~a r Nd@h,P er& ~ - 73$8 h h 6 in. Office .Irnb@i". 541-.534~ 65 M e e d Plant . . mbler: 5'4l-523-2000~5triker La'ne Plan't

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WE HAVE A DREAM... YOU CAN HELP t Tks SakeaCewty Fartt Glttttttuh)

VAen looking for a 5N(c)3 non profit for your year end donations.

cowauaehj Ettettt cetdea For all your special events, reserve early for the Community Event Center, Cockram Arena or Rodeo Grounds.

RENXWBER THE FRIENDS OF THE FAIR!

Maybe you would like to dedicate funds to ca1e of our dream projects

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EVENT CENTER:

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RODED OROUNDS — Boundary fendng upgrade — Trees/landscape

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28 — THE OBSERVER a BAKER CITY HERALD

AGRI-BUSINESS

OCTOBER 2014

BEEF

Debby Schaeningh / FarWesCom News Sennce

KalebWhite handles the loading of the potato trucks for Delbert and Samantha Stephens at their farm near Haines.

SPUDS

He said weather, as is the case with all crops, can also Continued ~om Page18 Darrin Walenta, OSU Extenpose a challenge to sion Service agronomist for Bak- potato growers. "Last winter, er, Union and Wallowa counties, said the growing conditions and there was much Step h ens irrigation water delivery sysconcern with below tems in Baker County contribute normal snowpack and drought significantly to the production of conditions in the spring," said high quality potatoes and good Walenta."Fortunately, the yield potential. reservoirs did fill well enough Walenta agrees with Steto provide irrigation water this phens, though, that"potatoes are growing season but, in some not an easy crop to grow." cases, some late season water "Planting in the spring can management strategies did be challenging waiting on soil come into play." temperatures to warm up," Disease and insect pests, he said Walenta."Early fall treeze said,are a constant challenge to events are helpful for vine killlocalpotato production. Annually, the OSU Extension down, unless such events occur too early." Service conducts an area-wide

insect monitoring program in Baker and Union counties which keepstrack ofinsectpestpopulations on a weekly basis. W alenta said potato psyllids start migrating into potato fields in late June and can build rapidly, increasing the expense ofseason-long control. But this year the pests were very low in numbers until late August or early September. "This indicates growers are being effective with their pestm anagementprograms,"hesaid. More good news for 2014, he said, isthat"we did notdetect Lso ia bacterial in any potato psyllid samples trom the BakerUnion County area. W alenta said potatoes are a very important component of the

agricultural economy in Baker County. It's too early to gather 2014 information, but in 2013, there were 3,800 acres harvested in Baker County with a farm gate value inet value of the product when it leaves the farm)

of $12,244,000, but crop productionwas impacted by disease that year. In the prior two years, there were 4,000 acres ofpotatoesin the county harvested each year. Union County production includes mostly certified seed potatoes iapproximately 1,000 acres per year) along with comm ercial processing and fresh pack potatoes i300 to 500 acres annually) with farm gate value

range trom $6 to $8 million per year.

Continued ~om Page14 Although Northeastern Oregon has escaped the worst of the nation's drought, Williams does worry about the cumulative effect of multiple years with below normal rainfall. As of the end of September, for instance,rainfallfor2014 atthe Baker City Airport was 1.65 inches below average — about 22 percent below. That follows two straight years when rainfall also was slightly below average— a 13-percent deficit in 2013, and 19-percent in 2012. The danger with persistent low-level drought, Williams said, is that it can cause springs to dry up and lower the soil moisture so that nativerangelands, a vitalsource of spring and summer forage for the region'scattleherds,don'tproduce as much grass. The comparatively beneficent weather also helped another mainstay of Northeastern Oregon's agricultural economy, Williams said — hay. With California suffering through the two-pronged disasters of drought and massive wildfires, that state's hay crop withered, Williams said. That, combined with the generous beef prices, meant hay was also more valuable than usual this year. High hay prices tend to be a mixed blessing for Northeastern Oregon, Williams said. Hay sellers, of course, benefit. But ranchers who don't grow enough hay to feed their herds through the region's long and sometimes harsh winters have to shell out more for their winter feed

bill. Wildfires were relatively benign this summer in Northeastern Oregon, another contrast between thisarea and other parts ofthe West, Williams said. Most of the bigger fires burned in wildernessareas or otherplaces where livestock aren't allowed to graze, he said. ''Wedidn'tlose thevastacreages of grazing land as we have in some previous years," he said.


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER tk BAKER CITY HERALD —29

e

La Grande New Holland 60588 MCAlister Rd. La Grande 541-963-8144 80 0 - 8 7 2-0773 wI

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TRI-COUNTY EQUIPMENT

B & N K

Local Money Working For Local People www.commnunitybanknet.com

Bankof Eastern Oregon Enterprise 541-426-4205

Island City 541 - 6 2+5040 Member

Waldrop Oil Co. (541) 963-8461 • GaS • DieSel Chevron

• Heating Oil • L nricnnts

l<g~~'~j' ,j EquiPment 10 East Cambell Street

www.beobank.com FDlc

Baker Cit • 54 1 -523-7823

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O LSON'S T R A C T O R A ND H Y D R A U L I C S

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Sales • Parts • Repair 41438 Hwy 30, Baker City

800.443.9314 • farm-credit.com

B ake r C i t y G old & S i l v e r 62506 Commerce Rd. La Grande 541-963-7146

541-523-2133 1812 Main Street, Baker City

B lack D i stri b u t in g I n c .

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Advanctng Rural y(rnertca's Success

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LA GRANDE -11201 Island Ave. 541-963-7151 BAKER CITY - 41216 Hwy. 30 541-523-6491 ENTERPRISE - 911 South River St. 541-426-3116

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H oll l n g s w o r t h s ' Ontario, OR

Wetser, (D

1775 sw 30th st

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97914 (541)889-7254 800-541-1 61 2

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R obb in s F a r m E qui p m e n t I n c .

P ortfolio M a n a g e m e n t 541-523-0900

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Serving Farmers & Ranchers for 73 Years (1939 - 2012)

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541-523-9527

1 -800 - 7 4 3 - 5 9 2 4 FR3c 5 41-523 - 9 7 3 7

Ciuyer 6 A s so c i a t e s Baker City 541.523.447 1 2 790 Mai n

IueealeaaaeInless

La Grande 54 1.9 6 3.6009 10 05 Ad a m s

Vg' + P 20361

215 Elm Street La Grande (541 ) 963-5440 www.northwestfurnitureandmattress.com

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Federal , ~

www.oldwestfcu.org

~ui't %>~ renr One-aev Senset Seeteesd

Baker County Custom Meats

2390 11th Street

541-523-4267

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541-523-5535

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2001 Main Street, Baker City 888-523-4411

PayneWest INSURANCE

Baker City www.eorenrals.cora

www.johnjhoward.com

Barley

541-963-7368 La Grande 541-523-7368 Baker City 541-276-7368 Pendleton

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M,J, Goss Motor Co. 10705 Island Ave., La Grande 541-962-7099

LI N C O LN

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AGRI-BUSINESS

30 — THE OBSERVER a BAKER CITY HERALD

OCTOBER 2014

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B a ke r Ci


AGRI-BUSINESS

OCTOBER 2014

THE OBSERVER a BAKER CITY HERALD —31

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AGRI-BUSINESS

32 — THE OBSERVER a BAKER CITY HERALD

OCTOBER 2014

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