Agriculture & Farming paper 3-25-15

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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

MARCH 2015

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Page 4 2015's big question for Northeastern Oregon agriculture: Will spring rains ease the deepening drought that has left reservoirs such as

Phillips (at left) depleted?

Page 8

THE OBSERVER a BAKER CITY HERALD —3

PAGE 6

Seed swaps aregrowing in popularityforpeoplewhowant to grow plantsthat arenot hybridsor geneticallymodified PAGE 12

For thefirst timesince2006the federal governmenthasincreased the feeforgrazinglivestock on public lands PAGE 20

Cattle prices remain near record highs due to a

Union Countycouplewhowere early enthusiastsaboutsolar power saythetechnology has potential applicationsfor ranching

drought in the Midwest that

forced ranchers to shrink their herds, and continuing strong demand both nationally and abroad

PAGE 22

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Baker City man has started a grain-malting business with a goal of supplying locally grown barley and other grains to the region's burgeoning microbrewing industry

ON THE COVER: Phillips Reservoir, along the Powder River about 17 miles southwest of Baker City, has been depleted by two consecutive years with below-average rain and snow.

S. John Collins/Baker City Herald file photo

Farmersmarketsin Baker, Union and Wallowacounties aregearing up to makelocally grownfood available toresidents PAGE 24

Acreagesvaryfromyearto year due tomarkets,butwheat remains an importantcropfor Baker,Union and Wallowacounties

4 — THE OBSERVER a BAKER CITY HERALD

AGRI-BUSINESS

MARCH 2015

2015's big question for NE Oregon agriculture: Will spring rains ease the deepening drought?

By Jayson Jacoby Baker City Herald

and Katy Nesbitt The Observer

Dave Freeman looks at Sutton Creek and sees summer in its sluggish flow.

Except it's still winter.

Only barely winter, to be sure — the equinox is just 10 days away when Freeman makes the comment.

Yet near this junction of the seasons, Sutton Creek, a Powder River tributary that flows through the Freeman Angus Ranch several miles southeast of Baker City, ought to be clogged still with ice or else swollen with snowmelt.

Trouble is, Freeman said, there's no snow to melt.

Which is why Sutton Creek is running at a volume more typical of June than March, Freeman sard.

"It's beyond dry," he said."It looks pretty grim right now."

Freeman's gloomy assessment is hardly unique among ranchers and farmers in Northeastern Oregon.

The drought that has affected much of the West the past few years has gradually extended its reach to the north.

Lastyear atthistim epartsof Northeastern Oregon were in a m oderate drought,according to the federal government's drought monitor index. The far northeast corner of Wallowa County was deemed"abnormallydry"butwas not technically in a drought.

Today, by contrast, the southeast part of Baker County is suffering from either extreme or severe drought, while the rest of the region — with no exceptions as in2014 — isin a m oderate drought.

And with mountain snowpacks abouthalfofaverage,farmers and ranchers won't be able to depend

S. John Collins/Baker City Herald file photo

Phillips Reservoir, a key source of irrigation water for farms in BakerValley, is only slightly more than one-third full as spring begins.

With the snowpack in the nearby mountains well below average, it's unlikely the reservoir will refill this year.

on the spring runofFto keep their ditches full and their sprinklers spraying through the heat of summer.

"It's shaping up to be one of the worst years in my tenure," said Rick Lusk, who has worked as Baker County watermaster since March 2000.

Reservoirs aren'tasdepleted as they have been in some of those years.

Phillips Reservoir near Baker City, for instance, was about 34 percent full in mid March this year.

At that time in 2004 the reservoirwas just 13 percent full.

But Lusk notes that the snowpack was much deeper in 2004 than it was today.

Statistics bear this out.

The snow-measuring station at Bourne, in the upper Powder River basin upstream from Phil-

lips Reservoir, the water content in the snow on March 10 was 6 inches, less than half of average.

On that day in 2004 the water content at Bourne was 18.7 inches — more than three times as much.

The bottom line, Lusk said, is that he expects he and his deputy watermasters will be busy distributing water based on water rights priority dates by April 1.

That's at least a month earlier than usual, Lusk said.

"The water's just not going to be there," he said.

Both Lusk and Freeman point out that the story of the 2015 water year can't yet be written.

With the whole of spring ahead — typically the wettest season in Northeastern Oregon — the agriculture industry might yet get a reprieve.

Enterprise, forinstance,gets about 37 percent of its annual

rainfall, on average, during the three-month period of April, May and June.

The percentage for the Baker City Airport is 35 percent, and for the La Grande Airport it's 29 percent.

"If we had some spring rains it would certainly help," said Cal Foster, a cattle rancher who lives in Bowen Valley, just south of Baker City.

He's especially worried about a lackofforage on the lower-elevation rangelands where his cattle spend a couple of months before moving to a Forest Service grazing allotment in the Elkhorn Mountains near Sumpter.

Although temperatures have been warm enough for grass to start growing, forage on the spring range isn't thriving, Foster said, something he attributes to the lack of moisture.

He's also expecting that for the third straight year he and other landowners who have rights to irrigation water from Phillips Reservoir will get less water than they would were the reservoir to refill.

Foster said mud, the scourge of farmers and ranchers during most Marches, had dried by the first week of the month this year.

Freeman, whose ranch is a few ridgestothe eastofFoster's,said his rangelands are in a similar condition.

"I keep hoping for a green-up, but right now the hills are kind of beige," Freeman said.

The dry and mild weather that prevailedacrossNo rtheastern Oregon for most of February and into the first half of March was "terrific" for ranchers getting through calving season, Foster said.

SeeDrought/Fbge 10

AGRI-BUSINESS

MARCH 2015

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6 — THE OBSERVER a BAKER CITY HERALD

MARCH 2015

Swapping seeds helps growers sample new varieties

By Cherise Kaechele The Observer

Union County might be seeing a seedswap organizationcome together with every town participating fairly soon.

Cindy Edwards, co-owner of Folly Farms in Cove, held a biannual seed swap event for the community to gather, exchange heirloom seeds, learn new techniques and share experiences with like-minded gardeners.

The seed swap is growing in popularity for those who want to have seeds that are not hybrids or have not been genetically modified.

Participants gather seeds from their previous crops and share them with others. This time of year, Edwards said, people are beginning to gather seeds and plan their upcoming crop season.

Additionally, the seed swap is good because the seeds are

Edwards said.

Her swapisbarely getting off the ground since beginning it two years ago.

"Make sure to always advertise heirlooms," she said.

Edwards said she's heard from people in Union, Elgin, Summerville, La Grande and Cove who are interestedin starting up a swap.

StephanieBoudreau attended the seed swap for the first time this year. Boudreau is a gardener and wanted to see what the swap i /j' was like.

"I just love growing," Boudreau Cherise Kaechele/TbeObserver Cindy Edwards and Stephanie Boudreau stand over the table of said. "I like to try the different seeds participants have brought to a seed swap event at Cove. The varieties.

You're going to have seeds indicated what they were on the bag and participants were m ore success with localseeds, able totake as many seeds as they wanted. too."

Boudreau came from Summercoming from plants that have approached by Lori Daniels, who ville and enjoyed the swap.

"It's bountiful," Boudreau said successfully grown in the Grande expressed her interest in scheduling a similar swap in La Grande. in describing the event. "It's more Ronde Valley.

During the swap, Edwards was "Ittakes a long time to start," than I thought. It's exciting to

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Mary Cooke also attended the swap and brought her own seeds to share.

"Seeds are very expensive," Cooke said. '%e'r e able to save the things that grow easy."

Edwards also provided printed materials including a garden planner, which provides information about what plants should go where, how many should be planted and whether to grow using starts or seeds. She willingly provides the information to anyone who wants to learn.

Edwards plans to give a demonstration of soil blocking, which is a light and simple way to start seeds,she said.Ifthe weather holds, she'll also give participants a tour of Folly Farm.

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8 â&#x20AC;&#x201D; THE OBSERVER a BAKER CITY HERALD

MARCH 2015

att e mar et remains ri t s ot or re ion

By Debby Schoeningh

zon, Bohnert said, is the aging producer population. The 2012 agriculture census data shows the average age of a rancher is about

For WesCom News Service

Local cattle producers, still riding the wave of national recordhighcattle pricesin 2014,are looking forward to another robust year in 2015.

Mark Coomer, relationship manager/vice president for Northwest Farm Credit Services in Baker City, said it appears Eastern Oregon cow/calf producers will continue to receive better-thanaverage prices this year, as will all sectors in the cattle industry.

"Priceprojections for 2015 are for continued good prices," Coomer sard.

A nationwide decrease in herd numbers, coupled with a strong globaldemand forbeef,Coomer said, continues to support high market prices.

The U.S. Department of Agriculture's January cattle report estimated the number of cattle and calves in the U.S. at the beginning of 2015 was up 1.4 percent &om the previous year. Herd expansion isexpected to continue forseveral more years, depending largely on weather conditions. Several years of drought across the U.S. was the m ajor factorin recentyearsfor thedecrease ofcattlenumbers nationally.

Even though herd numbers are building, Coomer said,"an increaseddomestic supply does not necessarily lead to lower market prices. It more likely will mean lessimported beefand/ormore exported beef. Thus, prices will be more dependent on global demand than domestic consumption."

An improving domestic economy, Coomer said, "may be able to absorb any decline in exports brought on by a stronger dollar."

However, as producers retain heifers to add to their herdsthat would otherwise go into feedlots, U.S. beef production is expected to continue to decline.

"As a result, demand is being met in the U.S. by more foreign imports," said Coomer."Imports

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Kathy Orr/Baker City Herald file photo

A rancher moves cattle in southern Union County, with wind turbines in the background.

continue to be an ever more vital part of the beef supply in the U.S." Despite increases in retail beef prices, Coomer said, consumer demand has remained strong.

"Beef sales are doing well compared to pork and chicken with the retail prices of all three at all-time highs," he said."There is an increasing supply of pork and chicken, but consumers continue to placea highervalue on beef."

In late February, the Dietary Guidelines Advisory Committee releaseditsrecommendations for the 2015 Dietary Guidelines for Americans, which called for a reduction in red meat in the

American diet due to reasons of saturated fat and environmental impact.

"U.S. dietary guidelines alone will not have a significant impact on beef sales due to the international demand for meat protein," said Coomer.

Although it may seem counterproductive toexportmeat to other countries when cow numbers have been at an all-time low in the U.S., David Bohnert, director and associ ate professoratOregon State University's Eastern Oregon Agricultural Research Center iEOARCl in Burns, said most of the U.S. beef exports are products

not typically consumed in the American diet such as tongue, liver, gut, oxtail and heart.

"Exporting those products to other countries," said Bohnert, "adds value to local beef."

Industry Challenges Like other areas, beef producers in Baker, Union and Wallowa counties face production challenges in 2015 and beyond, including the possibility of drought, high feed costs, availability of grazing land, impact of government regulations and the strength of the U.S. dollar.

An issue looming on the hori-

"Gettingyoung peopleback on the ranch or enticing new ones to take it on is a big challenge," said Bohnert.'When it comes to raising cattle, who'sgoing to doit?"

Animal welfare and how the publicperceives what cattle producers do, Bohnert said, is an important and growing component of the industry.

"Consumers want to know how the animals are treated and managed and we, as an industry, are addressingthat, "he said.

There are also human nutritional concerns, said Bohnert. ''We have always produced a healthy, wholesome product, but consumers want to know more," he said.

Why do some think organic, natural, grass-fed or non-genetically modified iGMOl grain for cattle is better? The reason, Bohnert said, is"perception; sciencedoesn't support these concepts, so it boils down to public perception."

For example, he said, the 2012 controversy over"pink slime," 4oneless beef trimmings added to ground beef), has not been proven to cause health issues in humans, but public opinion spread and gave the product a negative perception.

However, "as long as there is a demand for organic, natural, grass-fed and non-GMO raised products, the industry needs to supply them," he said.

Although the demand for these branded products continues to grow, Bohnert doesn't think it will supersede the demand for grainfinished beef due to the higher production costs, which are passed on to the consumer, and because of the taste Americans have become accustomed to.

See Cattle/Fbge 14

AGRI-BUSINESS

MARCH 2015

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10 —THE OBSERVER 5 BAKER CITY HERALD

MARCH 2015

U.S. Drought Monitor

March 10, 2015

West

(Released Thursday, Mar. 12, 2015) Valid 7 a.m. EST Drought Conditions (Percent Area) None DO-D4 D1-D4 D2-D4 • Current Last Week 3/3/20 I 5

3 Months Ago 12/snc/3

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29 72

70 28 59 80

2 9 93 16 6 2

7 04

29 95

70 05 59 79

2 9 48 16 6 2

7 04

3 4 01 18 98

8 45

34 32 65 68

Start of Calendar Year 34 76

55 16

65 24 54 48

3350

1 8 6 8 5 40

31 48

68 52 55 57

3 5 65 19 9 5

8 90

27 09

72 91 58 65

4 0 20 1 5 2 7

361

12/30/20/3

Start of Water Year socnc/3

One Year Ago

P

3/ i i/20 i 3

Kathy OrrlBaker City Herald file photo

~lntensit:

Irrigation water could be in short supply in parts of Northeastern Oregon this summer.

DO Abnormally Dry

D3 Extreme Drought

Dl Moderate Drought

D4 Exceptional Drought

D2 Severe Drought

The t rought Monitor focuses on broad-scale conditions Local conditions may vary See accompanying text summary for forecast statements

DROUGHT

Extension agent, said, "My grandfather always said, 'if it didn't rain Continued from Page 4 it was going to be a long dry spell.' " It's too soon to tell if Wallowa If anything, he said, the afternoons have been too warm, rising County is going to have a dry year into the 60s on several days. or not, Williams said, given that it's only March.

But on most mornings tem"April, May and June might be peraturesdipped into the 20s, and Foster said those wide daily the wettest we've had — we have temperature ranges can increase a history of those three months therisk ofcalvesdeveloping bailing us out with water," he said.

"Right now in Wallowa County pneumonia,even though they're we're not in trouble, yet.n inoculatedagainst the disease.

Williams pointed out that after No farmer or rancher prefers drought, of course, but both Free- an unusually dry February and man and Foster pointed out that early March, rain returned to the the currentdry spellis atleastoff- region in mid-March.

The indications are clear that setby near record-high pricesfor beef (see related story on page 8). lower elevation snowpack is The market has been buoyed non-existent and receded much in part over the past few years by earlier than usual. At the higher the much worse and more proelevations, things aren't as grim, Williams. longed drought in the Midwest, which forced many ranchers to The Mount HowardSnotelcull their herds and trimmed the an automated snow-measuring U.S. cattle population to its small- device— at7,910 feethasrecorded 24inches ofprecipitation since est since the 1950s.

Yet demand for beef, not only Oct. 1, 2014. The 30-year average in America but also in foreign is 24.5inches forthistime of markets, especially the Far East, year. The snow water equivalent remains strong. isalsovery close tothe 30-year Prices have been so high, Foster average at 13 inches. said, that even after a recent At the Aneroid Snotel, in the minor drop in prices the "market Eagle Cap Wilderness, the preis still good." cipitation is an inch below the avoWe'dbe a lot worse off if the erage at 26 inches and the snow/ market was weaker," he said. water equivalent is 14 inches.

The average is 22 inches.

WallowaCounty "This is where we fall off n said Williams.

Of the summer forecast for snowpack and precipitation, John He said so far precipitation is Williams, Wallowa County's OSU holding its own, but the snow/wa-

Author: Matthew Rosencrans CPC/NCEP/NtryS/NOAA

USD~A~ ter equivalent started falling off in Januaryand Wallowa County has gotten further behind since.

"Recently we've seen quite a drop off n Williams said."Whether it's going in the ground or not, I couldn't tell you; it depends on how much water is already in the groun(l.

As far as storage for the summer, Williams said Wallowa County is blessed with water.

"We have the lakes basins and we have man-made dams at Wallowa Lake and Minam Lake that supply us with an abundance of water," he said.

As far as soilm oisture goes for the region, Williams said those are in good shape.

"We should grow some decent grass early," Williams said.

He said his concern, if the spring rains don't prove abundant, is that the stock ponds on the range will run dry.

"Filling stock ponds — that's the difficult one this year," he said."Those ponds are not full today. We need a lotofrain to fill them — the snow isn't there to fill them and if they are snow-dependent ponds, they are probably

Qy ® March 44, 2014

e

not going to fill."

If the rains don't come, the irrigation season will shorten.

In many parts of the Wallowa Valley irrigators have enough

water into September to water their crops.

Williams said, "So it comes back to what my grandfather saId.

AGRI-BUSINESS

MARCH 2015

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AGRI-BUSINESS

MARCH 2015

Fe era razin ees increase

ercent

By Pat Caldwell FormjesCom News Service

The price of doing business for cattle ranchers who utilize public land just went up.

The Bureau of Land Management and the U.S. Forest Service will charge $1.69 per animal unit month (AUMl for 2015 — a jump

fiom $1.35 in 2014.

The 25-percent boostisalso significant when fiamed against the annualAUM rate since 2006.

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The fee stood at $1.35 fiom 2006 until the new hike was announced in January.

The new fees became effective March 1.

AnAUM or HM is categorized as the amount of public land used by a cow and her calf; one horse or five sheep or goats for a month. Under federal law and a subsequent ExecutiveOrderreleasedin 1986,the grazingfeecannotfallbelow $1.35, nor can the fee increase by more than 25 percent in any year.

The hike will affect about 18,000 grazing permits or leases administered by the BLM. Depending upon which side of the fence one stands, the fee boost is either an indication of a better overall beef market or yet another costranchers must absorb.

"Itis good news for the livestock industry when the fee goes up because itindicates conditions have improved," saidTom Gorey,a BLM spokesman based in Washington,

S. John Collins/Baker City Herald file photo

Ranchers will pay 25 percent more this summer in grazing fees on public land managed by the Forest Service and BLM.

it doesn't mean it will always be up.

The cattle industryis one of cycles," he said.

Sharp said the grazing fee may seem modest but in reality the price hike can resonate across a wide D.C. But Tom Sharp,thechairman of spectrum.

"Because you take that small the Oregon Cattlemen's Association's Endangered Species Comincrease and multiply that by the AUM and it has multiple implicamitte, said even a small boostin grazing fees can have an impact on tions," he said.

Baker County Commissioner beef producers.

"Anyincrease is an input cost the Mark Bennett, who is a cattle permit holder has to absorb," Sharp rancher, agreed that what might sald. appearto bea sm allfeeboostcan Sharp is fortunate in that he does actuallyreverberate through every notrun his cattle on public land aspect ofa cattle operation.

'The more variables you add into butinstead utilizes private ground.

Still, Sharp said linking a grazing it the more expenses you add," he fee hike to a strong cattle market sald.

Bennett once utilized allotments m isses a broaderpoint.

"Cattle prices have been up. But on Forest Service and BLM land.

Now, though, he said his cattle operationonly usesoneForestService allotment.

Bennett said at first glance $1.69 per AUM may not seem like much butit can make an impact.

"It doesn't sound like much. But it starts to sound like a lot when you add all ofthecoststogether,"hesaid.

Smaller ranch operations — like many small businesses — operate on a thin margin everyyear and costs are measured carefully and often can mean the difference between a good year and a period of breaking even. Thatis why, Bennett said,thatoverallcostsarea huge factor for manyranchers.

"It becomes expensive. Just the fence maintenance alone. So, on the surface the prices do not get you. It is when you put the prices together,"

he said.

He also pointed out that grazing allotments presentranchers with different challenges — and thereforevaried costs— than others.

"On some allotments it is more expensive to do business than others," he said.

Bennett conceded that cattle prices areup and thatisgoodfor the industry. However, he pointed out that while prices are up, so are costs.

"Cattle pricesare good.W e'vehad some pretty good years. But, conversely, ifyou buy a pickup it's the price of a house now," he said.'The $1.69, you have to take into account this giant overhead expense."

Without a doubt the beef induslry drives Northeastern Oregon's economy, accounting for $102

million in gross sales in 2012 in

Baker ($53.5 million), Union ($21.7 million) and Wallowa ($27.4 million) counties. A large percentage ofthe region'scattlespend atleast some time during the year grazing on public allotments.

Bennett acknowledged the importance of the beefindustry and saidthatseveralotherissues unique to the recent past also put pressureon the overallgrazing situation. In short, range fires and a droughtput good grazing areasat a premium,whether private orpublic. A scarcity of any resource puts it into high demand, thus adding coststo an operation.

"So (when it comes to grazing) you take into consideration that a number of factors are in place here," he said.

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MARCH 2015

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AGRI-BUSINESS

14 — THE OBSERVER a BAKER CITY HERALD

CATTLE Continued from Page8 "The U.S. has the best, safest and cheapest food in the world. In America we spend about 10 percent of our income on food," said Bohnert."In Europe 30 to 40 percent goestoward food and in some partsofA lrica they spend up to 80 percent of their income on food."

Public lands use poses another challenge, along with endangered species, and natural resource management.

"Are we going to be able to continue to use public lands?" said Bohnert."There are a lot of things public lands need to be used for, but I believe there is still room for cattle.

We are losing agriculture land, not making more. Those in the industry will need to improve animal efficiency and the land base."

He said communities are growing and that takes resources that take away &om cattle productions asless space becomes available.

"These are all issues we have to deal with as things move forward in the cattle industry, and I would be remiss if I didn't mention wolves that are having a substantial effect in more isolated areas of Eastern

MARCH 2015

"There are a lot o f things

public lands need tobe used for but I believe thereis still roomfor cattle."

— David Bohnert, director, Oregon State University Eastem OregonAgricultural Research Center

Oregon," he said.

The good news, though, said Bohnert, is that there are plans for new packing plants in Idaho ia Simplot plant near Kunal, and other areas, which will make it easier for Eastern Oregon producers to sell cull cows without the added costs of shipping.

Part of the research being conducted at EOARC focuses on ways to maintain and grow herds more efficiently without sacrificing the quality of the finished product. For more information visit http J%regonstate.

edu/dept/EOARC For more information on the cattle induslry, and other agriculture insights, visit Northwest Farm Credit Services at https J/ www.northweslfcs.com/Resources/InduslryInsights/Cattle

Kathy Orr/Baker C>ty Herald Ble photo

Bohnert contends that we're continuing to lose agriculture land as growing communities demand more resources.

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THE OBSERVER a BAKER CITY HERALD — 15

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AGRI-BUSINESS

16 —THE OBSERVER rr BAKER CITY HERALD

MARCH 2015

GOLD RUSH MALT INBAIr ,ER CI ' TY

ew usiness in WI anici a ion • Tom Hutchison is eager to turn grain grown in Northeastern Oregon fields into the raw ingredient for the region's microbrewing industry

By Jayson Jacoby Baker City Herald

Tom Hutchison plunges his hand into a paper bag filled with kernels of grain that will never end up on someone's dinner plate.

But they will make it into a mug of beer.

Hutchison owns Gold Rush Malt in Baker City.

His goals with his fledgling business are to help microbreweries add a distinctly local flavor to their beers, while helping Northeastern Oregon farmers add valueto their grain crops.

Primarily this means barley.

But Hutchison, 58, who grew up on a wheat-and-cattle ranch near Pilot Rock and farmed himselffor20 years before moving toBaker City and opening his business last year, said he'll be able to malt all types of grain if that's what brewers or distillers want to use in their products.

Microbrewing, also known as craft brewing, is a relatively new industry, taking off since the early 1990s.

But Hutchison actually looks much further into history for inspiration.

In the early days of Baker City, in the late 19th century, he

BARLEY AND BEER Brewers take malted barley (or other grains) and steep it in hot water to release the grain's sugars. The resulting thick, syrupy liquid is called "wort" (pronounced "wuhrt").

The wort is boiled, and brewers add hops and possibly other ingredients as flavoring. Hops, which are the dried flowers from a type of vine, also give beer its distinctive bitterness and act as a preservative.

After boiling, the wort is cooled, filtered and put into a fermenting vessel, where the brewer adds yeast.Yeast eats the sugars and produces two main byproducts that distinguish beer: carbon dioxide and alcohol.

said it's likely that local brewers maltedgrain grown nearby.

Hutchison wants to revive that relationship.

"What I'm trying to do is reestablish that link between the brewer and the farmer," he said.

S. John Collins/BakerCity Herald

Tom Hutchison is the owner and founder of Gold Rush Malt in Baker City. He plans to sell roasted barley, and possibly other grains, to microbrewers. In the background are bags of barley grown by Jason Williams last year near North Powder.

"WhatI'm trying to do is re-establish thatlink between the

brewer and thefarmer."

— Tom Hutchison, Gold Rush Malt, Baker City Northeastern Oregon is an ideal place to do that, Hutchison believes.

The region has a thriving craft brewing culture, with Barley Brown's in Baker City and Terminal Gravity in Enterprise.

And the area's mountain valleys are well-suited for growing high-quality barley, Hutchison sard.

"These high valleys have

warm days and cool nights, plus it'sdry so there are less disease problems," he said.

Hutchison plans to malt his first 2V2-ton batch of barley this spring.

Last year two farmers in Baker Valleyand one in Grande Ronde Valley grew barley for Hutchison.

This year he plans to add acreage in Wallowa County.

He'll malt the locally grown

barley at his Baker City plant and offer it to brewers and distillers around the region.

Barley is not a new crop in Northeastern Oregon.

But Hutchison said most, if not all, of the grain grown here these days is used as animal feed, not as abasicingredient in beer.

The vast majority of the malted barley used in brewing and distilling, he said, is produced bylarge-scale operations that supply megabrewers such as Budweiser and Coors.

SeeBubbling/Page 26

AGRI-BUSINESS

MARCH 2015

THE OBSERVER a BAKER CITY HERALD — 17

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18 — THE OBSERVER a BAKER CITY HERALD

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MARCH 2015

THE OBSERVER a BAKER CITY HERALD — 19

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20 — THE OBSERVER a BAKER CITY HERALD

ou e: oar ener

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By Cherise Kaechele The Observer

Itstarted offasjusta hobby for Kay Firor and Kent Osterberg, who installed a solar electric system to connect their utility to the grid.

More than 20 years later, the couple own Blue Mountain Solar, helping the community conserve energy and save money.

They installed their system in 1991, Firor said. They worked closely with Oregon Trail Electric Cooperative, which didn't have any experience with solar systems at thetime. In fact,Osterberg said, they were only the second couple in the state to have an installed system.

Theirsystem providespartof their electricity, feeding into the house.

If they have an excess of power they don't use, Firor said, that

Cherise Kaechele/TbeObserver

Kay Firor and Kent Osterberg's home has a solar electric system in place. The couple can power their home with solar energy but they are also hooked up to Oregon Trail Electric to get power if the day is overcast. feeds into the OTEC grid and someoneelseisable to reap the rewards. They are able to receive

creditback forthatexcesstoo.

"People don't generally get that kind of system," Osterberg said."If

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starting to make solar systems very affordable."

The popularity of solar energy is slowly, but surely, growing, Firor said. Nationally, there is a big growth curve in the industry. The

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Recently, Firor and Osterberg replaced their system with a more updated system.

"For about the same price as we paid in 1991, we got something way better thatprovides 50 percent more energy," she said.

Osterberg designs the systems for their customers. He has installed livestock water systems that provide a pump trom a creek to water the animals in a remote area to keep the animals away trom the creek, he said.

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you have a cabin or you're building a new house, then it'd make sense to consider it. The system pays backitselfin ten to 12years."

This kind of system, just one of manyavailable assolarpower becomes morepopular,isgenerally added to new homes. Families with cabins in remote areas with no easyaccess to electricity,and developing countries take advantage of the capability since many residentsdo nothave accessto electricity.

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THE OBSERVER a BAKER CITY HERALD — 21

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22 — THE OBSERVER a BAKER CITY HERALD

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MARCH 2015

OO OCUS:

oca armers mar e s

By Lisa Bntton

For more information about the marketorto be avendor,call The La Grande Farmers Market W asley at 541-663-8100 orvisit starts up again on May 16 on the the website, www.lagrandefarmsame days and location as last year. ersmarket.org.

Updatesare also The Saturday Market is kom posted on the market's Facebook 9 a.m. to noon and the Tuesday page. market — which begins May 19Baker City is kom 3:30 p.m. to 6 p.m.

Both are at Max Square in The Baker City Fanners Market downtown La Grande. will kick off the season on June 11 Market Manager Beth Wasley and continue every Wednesday, said Saturday usually brings 30 kom 3:30 p.m. to 6:30 p.m., through vendors and Tuesday is smaller Oct. 14.

The location is around the grassy with 5 to 10.

"All the regulars will be back and area at the fairgrounds, on East a couple new people have signed Street north of Campbell in Baker up," she said.

City.

Offerings include kuit, vegThe annual vendor potluck is April8 at5:30 p.m .atCrossroads etables, breads,eggs,m eat,fl ower basketsand vegetableplantstarts. Carnegie Art Center, 2020Auburn Also, the Thai food cart will be back Ave., in Baker City.

The meeting is a place to learn again.

Saturdays also feature live music about the upcoming market seaby local musicians. son, how to become a vendor and Opening day on May 16 will m eet the new board ofdirectors. featurea variety oflocalbands, Vendor packets will also be availWasley said. able.

Amy Young is again the market A new event she has planned is Juggle Fest on June 6, and she manager. She can be reached by is inviting all jugglers to come email at bakercityfannersmarkeparticipate. toiOgmail.com.

Kids Day, when children are Also, market updatesareposted given tokens to purchase kesh on the Baker City Fanner's Market produce, isscheduled forSept.26.

Facebook page.

FormfesCom News Service

SOLAR POWER

Haines The Haines Market returns this year, setting up on Thursdays kom 3:30 p.m. to 6 p.m. at the park.

The market will start in midJune.

Updates are posted on Facebook at wwwfacebook.com/hainesfarmersmarket.

Wallowa County The Wallowa County Farmers Market includes two weekly markets — Saturdays in Joseph and Thursdays in Enterprise.

The Joseph market season is May 23 to Oct. 10 and is kom 10 a.m. to2 p.m .on M ain and Joseph streets between the Baptist Church and library.

The Enterprise market is June 4 to Sept.

17,and hours are4 p.m .to 7 p.m. on the courthouse lawn. The market coincides with the Courthouse Concert Series during the summer months.

Carol Bartlow is this year's market manager.

"I amalsoa vendor atboth ofour markets, and really enjoy helping peoplebegin the adventure ofsm all business, vending at local market, and being part of the community," she said.

People interested in becom-

'That's what makes it a good investment," Osterberg said.

Firor agreed.

Continued ~om Page 20 "In 10 years, it would have paid for itself" Osterberg said electricalsystems are popular with the farmers who need power she said, describing their system. supplied to equipment built off the grid. He's Not every home is well-suited for a solar alsosupplied broadband wirelessto the city power system, Firor said. Homes within La of Cove, Summerville and Island City.

Grande city limits are generally surrounded Osterberg said the tax credits homeownby the large shade trees to keep the summer erscan getforinstalling a solarsystem isan sun off the homes.

"Blocking the sun in the summer is more attractiveoption now. important," she said.

According to Osterberg,30 percent ofthe system will be paid through the federal govIt also depends, if someone wants to ernment. The state of Oregon is offering up install a system for their home, what kind of to $6,000 to homeowners for the system. roof the home has.

S. John Collins/Baker City Herald file photo

Baker City's farmers market opens June 11.

ing a vendor can download an application on the website www. wallowacountyfarmersmarket.com, or cal lBartlow at541-263-1835 or 541-432-0519.

"I am very interested in speaking with vendors or people thinking about starting a new business and seeing what local market is all about," she said.

She said several vendors come kom as far away as La Grande and Elgin, and there are several Youth Days planned where those younger than 18 can set up a booth for kee to sell handmade products.

The ideal roof is south-facing without a chimney or dormers getting in the way.

"Notevery roofissuitable,"Osterberg said."A roofhas to meet building codes and would have to not require maintenance."

It doesn't do anyone any good to install a system on a roof that will need replacing, he said. The roofing material is also very important and can also make it difficult, if not impossible, to install a system.

"Each iroofi is a unique challenge," Oster-

berg.

He said if someone lives out in the country and their roof does not allow for a system, there's always the possibility ofbuilding

Regular vendors bring a variety of goods, including kesh produce, locally made soap, jewelry artists, on-site kettle corn, woodworking, kesh kuit, pastries, locallyraised meat and more.

"It's an exciting time in Wallowa County as we greet the tourists and event attendees who enjoy getting a taste oflocal goods, seeing our personalities and the joy we have in our community," Bartlow said.

Updates will also be posted throughout the season on the market's Facebook page.

a separate structure to install the solar system on.

However, Osterberg said, usually someone will build that garage or storage structure they've been meaning to build themselves, then have Blue Mountain Solar come to build the system on later to save money.

Solar power systems are decreasing in prices and increasing in popularity. Locally, Blue Mountain Solar has built small systems on a number of schools in Cove, Imbler, John Day, Burns and Baker. Several businesses in La Grande have also added a solar system to save money and energy, Firor said.

AGRI-BUSINESS

MARCH 2015

THE OBSERVER a BAKER CITY HERALD — 23 ,

OLD HICKORY I

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AGRI-BUSINESS

24 â&#x20AC;&#x201D; THE OBSERVER a BAKER CITY HERALD

MARCH 2015

n inu

By Debby Schoeningh

manage risk to their farm operation," he said.

Although most years wheat Cq Below average rainfall can also takes a back seat to grass seed, be aproblem forwheat growers, potatoes and hay in terms of top with spring rains being most crop commodities grown in Orimportant. The moisture requireegon's northeast corner, the grain ment of wheat is very small when has always played a big role in the the crop is young and temperaarea's agriculture economy. tures are cool. When night temWheat production has ebbed peraturesstartto rise,though, and fl owed in Baker,Union the crop's moisture requirements and Wallowa counties with the increase quickly. number of acres planted each The majority of wheat grown year being dictated by the current in Baker, Union and Wallowa economics. counties is soft white winter "These economics are oftenwheat, which is typically used for times on a world class level," said pastries, cakes,pretzels,cookies Dan Steiner, grain merchandiser and the Asian noodles known as for Morrow County Grain Growramen. Soft white winter wheat is ers and Pendleton Grain Growers. planted in the fall and harvested "Currency valuations, politics and around August. weatherare alsoma jor driversin However, Walenta said, hard regardtoacreage totals." red winter wheat production does Most wheat currently grown in make up a small but important the three-county area is planted as componentofthe overallproa rotati onalcrop,sharing acreage duction in the three counties.

Kathy Orr/Baker City Herald file photo with other crops.

Soft white spring wheat and "Wheat has always been very Preparing a field near Haines in BakerValley. dark northern spring wheat are valuable as an alternative crop, spring-planted growth-habit longshoreman issues. Most wheat a wheat crop down is one of the and at times, such as when those that is essentially what agricultypes that make up a small part from Eastern Oregon is shipped other crops are experiencing di5ture is about." most persistent challenges," said of the overall production as well.

In a normal year, Steiner said, in bulk via barge, rail or truck, so Darrin Walenta, Oregon State culty, it is a primary crop," Steiner "Winter growth-habit types, sard. the vast majority of wheat grown export shipments from this area University extension agronomist W alenta said,"are bestadapted to in Eastern Oregon will end up for Union, Baker and Wallowa H e said wheat takes itsplace were not affected by the recently the three-county area due to the in croprotation,based largely on at one of the river terminals and settled port shutdowns. counties. strong correlation between the 'The volatility in the price of "Recently we had an issue with the return per acre. As a rotational from there make its way to the life cycle of winter wheat and the 'containerized' shipments all along fuel, fertilizer and other input crop, wheat will be displaced by export channels. winter preci pi t at i on patterns that higher value crops when other "Japan is the largest, most the West Coast," he said. The 'bulk' materials makes it difficult to exist in the PNW." reliable buyer of PNW wheat," shippers such as we typically see crops,as they often do, have a developoperating budgets that Spring wheat crops, he said, higher return per acre. he said."In years where weather on wheat had recently completed result in positive cash flow," said typically have lower yield poteninterferes with the normal process, theircontractsand sowererelaWhen taking into considerWalenta."In addition, the high tial compared to winter wheat, ation Pacific Northwest iPNV9 or much of it will be fed to livestock tively unaffected by the strikes. costs associated with equipment, since the growing season is world totals, Steiner said, Eastern either locally or regionally. Very Currently the iColumbial river is labor,insurance,etc.are also evershorter.

Oregon wheat crops occupy a very little of the poorer quality would down for lock repairs. This happresent challenges."

"Soft white wheat is more sussmall production area, but it is a be shipped more than 100 miles." pens every year about this time, so Above and beyond growing a ceptible to sprout damage 4efore veryimportantcash crop for local In years where the weather has it's something that is predictable crop,Walenta said,today's prograin harvest) due to rainfall but producers. been adverse in areas, much of the and manageable and should pose ducers must spend a significant the low risk of a damaging rainW heat grown in Baker,Union wheat went"backward" or against no majorproblems orsetbacks." amount of time just managing fall event during harvest makes normal grain flow into domestic and Wallowa counties is usuAccording to the Agri-Business the business aspect of their farm soft white wheat well adapted to ally harvested later than most of mills to areas like Ogden, Utah, Council of Oregon, more than 85 operation and marketing their the region as well," said Walenta. the rest of the PNW, such as the Steiner said. Southern Idaho last percent of Oregon-grown wheat is production.

'The price of wheat is inFor more information about Columbia Basin, and Steiner said year, he said, was a good example exported. of this. growingwheat in Oregon, it is also generally of very good fluenced by global supply and ChallengesforWheat At this time, Steiner said, he visit the Oregon Wheat Grower's quality. demand which results in much Producers "Sometimes weather can inLeague iOregon Wheat Commisdoesn't foresee any problems with price volatility and the need for "Keeping the cost of producing terfere with quality," he said, "but logistics, shipping, contracts or strategicmarketing plans to sion) at http://www.owgl.org.

FormfesCom News Service

AGRI-BUSINESS

MARCH 2015

THE OBSERVER a BAKER CITY HERALD —25

~SHgofQoOoZ itOo ~8jgofQoOop I35,Z,~HZ,go QjZQ® 5966 ~ I - " - ,=.I • % ™

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26 — THE OBSERVER ti BAKER CITY HERALD

AG RI -BUSINE SS

MARCH 2015

BUBBLING Continued ftom Page16 Microbrewers tend to use the same typesofmalted barley,he sasd.

Hutchison hopes that by offering locally grown malted barley to brewers such as Barley Brown's and Terminal Gravity, he can give them a way to furtherdifferentiate theirbeers from mass-produced products, and to further burnish the "local" credentials of craft brews, But there's more to the matter than an advertising angle, Hutchison said.

He is in contact with experts at Oregon State University who experiment with new varieties of barley that can alter — and ideally improve — the flavor of beers, "We're looking at breeding barleyspecifi cally for craftbrewing, n Hutchison said. "The idea is to grow for quality, not quantity."

OSU has already created a specialty barley, known as Full Pint.

The malting process takes about a week, and Hutchison's plantisdesigned to process 2trz tons ofbarley or othergrain per batch.

He has 30 tons ofbarley, grown last year by Jason Williams near North Powder, stacked in bags and ready to be malted as soon as some equipment arrives that he's been waiting for, First, the grain is soaked in water to prompt the kernels to germinate, "Basically you're trying to fool the barley into thinking it's in the ground," Hutchison said.

Germination breaks down the barley's starch cell walls and activates an enzyme that turns the starch into sugar.

Once the germination has reached acertain stage,the barley is dried, which stops the germination.

Hutchison said the malter controls the amount of time the barley is dried, and at what temperature, to produce difFerent types of malt.

S. John Collins/BakerCity Herald

By changing the temperature and the amount of time barley is heated and dried, a malter can affect the color and flavor of the beer that's brewed with the malt. The malted barley in the photo below ~ould yield a darker beer with hints of chocolate.

S. John Collins!BakerCity Herald

Hutchison would like to eventually start using this elevator to store grain for his malting business, which is near the railroad tracks just west of 10th Street.

For instance, to produce a dark, chocolately malt that yields a beerwith similar characteristics, the barley is dried longer.

"Temperature, time and moisture are the keys to getting the qualities you want,n he said.

Hutchison said Gold Rush Malt will initially employ himself and one part-time assistant.

He hopes to hire other employees later, but he concedes that in terms of acreages, his operation won't have a significant efFect on Northeastern Oregon's agriculture industry, Yet Hutchison believes barley

grown for malting can be a competitive crop compared with, say, wheat, Barley can also be grown in a rotation with a higher-value crop such as potatoes, he said, His Baker City plant is large enough to process grain from about 300 acres.

Eventually, Hutchison said he'd like to malt not only barley, but also wheat — an ingredient in the popular "hefeweizenn beer — and possibly other grains such as rye.

He's counting on the reputation that microbrewers have

developed for experimenting with different ingredients to create beers with unique flavors.

Ultimately, though, Hutchison's goal is simple, He wants local residents to be ableto sip a pintofbeerthat's brewed locally using water that flows from the Elkhorns or the Wallowas, and grain that grew in the valleys between the mountains.

"People want to know where their food comes from," Hutchison said, "This is a chance for people to even know the farmer who grew the barley that w ent intotheirbeer,"

"People want to know where theirfood com'es from Thisis a cha.nce for people to even know thefarmer who grew the barley that went intotheirbeer."

— Tom Hutchison, owner, Gold Rush Malt in Baker City

AGRI-BUSINESS

MARCH 2015

THE OBSERVER fk BAKER CITY HERALD —27 Center for Human Develo ment Inc.

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L ocal Deliv e to : Baker City • Ha i n es • No r th Powder Keating • Sumpter • U n i t y Durkee • Richland • Ha l fway

Black Distributing Bulk Plant on 17th Street, Baker City

Non-ethanol pump at card lock.

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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AGRI-BUSINESS

28 — THE OBSERVER a BAKER CITY HERALD

MARCH 2015

N.E. Oregon agriculture: Three coun snapshots COUNTY PROFILE

COUNTY PROFILE

COUNTY PROFILE

Baker County Oregon

Union County Oregon

Wallowa County Oregon

2012

2007

645

688

Number of Farms Land in Farms

% change Number of Farms Land in Farms

710.789 acres

711.809 acres

Average Size of Farm

1.102 acres

1.035 acres

+6

Market Value of Products Sold Crop Sales $46.089.000 (49 percent) Livestock Sales $47.167.000 (51 percent) Average Per Farm

$93.256.000

$62.138.000

+50

$144.582

$90.316

+60

Average Per Farm

$1.883.000

$1.275.000

+48

Government Pa)ments

$11.343

$9.731

+17

Government Payments Average Per Farm Receiving Payments

F

by 9

2012

Average Size of Farm Market Value of Products Sold Crop Sales $51.274.000 (75 percent) Livestock Sales $17.096.000 (25 percent)

Average Per Farm Receiving Payments

0 0 F 2012 b yl d V

F

by 9

201 2

% change

2012

2007

829

880

411.671 acres

487.584 acres

-16

Land in Farms

497 acres

554 acres

-10

Average Size of Farm

$68.370.000

$58.244.000

+17

Market Value of Products Sold Crop Sales $22.144.000 (47 percent) Livestock Sales $24.476.000 (53 percentl

$82.473

$66.186

+ 25

Average Per Farm

$2.713.000

$3.138.000

-14

Government Payments

$10.895

$11.580

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F

1 3S

2007

522

526

452.559 acres

527.957 acres

- 14

867 acres

1.004 acres

- 14

$46.620.000

$32.263.000

+44

$89.310

$61.337

+46

$2.746.000

$2.879.000

$13.661

$13.773

Average Per Farm Receiving Payments

2332

F

by 9

% change

2012

Number of Farms

2012

0 0 F 2012 b yl d V

2 0'

19S

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10 2'

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AGRI-BUSINESS

MARCH 2015

THE OBSERVER 8 BAKER CITY HERALD — 29 •

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541-523-4575 ,„,„,.„ • Heating Oil • 76 Lubricants • Chevron Lubricants

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AGRI-BUSINESS

30 — THE OBSERVER a BAKER CITY HERALD

MARCH 2015

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