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The Agriculture Quarterly
07/22/2004
Showcasing agriculture in Japan, Oregon's top export market
by Bruce Pokarney

The Japanese Code of the Warrior advises not to fight your enemy where they are the strongest, but to look for areas of vulnerability. For Oregon agriculture, that means working smarter than the considerable competition in the Japanese marketplace. Oregon is never going to beat a producer like China on price. It is never going to overwhelm any export market with volume. So it has to be more selective and precise when it comes to offering the Japanese consumer what they want, when they want it, and in a form they desire.

The Oregon Department of Agriculture continues to demonstrate an understanding and expertise that has been developed over the course of 30 years of helping market ag products to the state's number one customer.

"We have always done well at listening to what the Japanese market needs and at responding to those needs," says Dalton Hobbs, administrator of ODA's Agricultural Development and Marketing Division. "That has been part of our advantage."

Having a history with Japan is extremely important to a culture that values relationships as well as price. But Oregon agriculture must keep pressing ahead, developing new tools for the trade toolbox that will help keep local producers and processors a major player overseas.

Demand and supply

According to the latest available export statistics, the category of food and agriculture remains Oregon's number one export to Japan at more than $572 million in 2003. High-tech products eclipsed agriculture in the 1990s only to experience a serious downturn the past couple of years.

"In some years, we export more agricultural products to Japan than we consume in the state of Oregon," says John Szczepanski, ODA assistant director. "Without Japan, Oregon agriculture would be much different. Whether an individual producer sends product overseas or not, we are very reliant on exporting because it provides an additional channel of distribution for the large amount of production in Oregon that cannot possibly be consumed here or throughout the U.S."

Szczepanski, Hobbs, ODA director Katy Coba, and ODA international trade manager Patrick Mayer recently completed a successful trade mission to Japan, Korea, and Taiwan in which specific Oregon food products were on display. The group was part of a larger delegation that traveled across the Pacific on the occasion of a new direct Northwest Airlines flight from Portland to Tokyo. To help make the pitch for Oregon seafood, ODA brought along three industry representatives who got an eyeful and an education of just how important Japan is to Oregon.

"We went to a small retail outlet in Tokyo and, in that one tiny shop, they sold $30,000 worth of seafood a day," says Brad Pettinger of the Oregon Trawl Commission. "For us, seeing the market first hand was like having a light bulb go on. Now we have a better understanding of what we need to do in this marketplace."

Selling seafood to Japan is nothing new for Oregon. But the industry is poised to take full advantage of some seismic shifts in Japan's own seafood production.

"We heard something on this trip that we've never heard before," says Hobbs. "For the first time, the Japanese seafood industry is now in a mode of resigned acceptance that they will have to begin accepting sardines from the U.S. West Coast because their own sardine fishery is depleted. In the past, they either did not accept our larger-sized sardine or bought it at a discount. But Japanese love their seafood and importers are trying to meet the demand."

The seafood subset of trade delegates was well served by ODA's specialized expertise and experience in both exporting seafood as well as dealing with the Japanese market. That same expertise can be extended to a number of Oregon commodities.

Branding Oregon for the Japanese

The latest trade mission also allowed the relatively new "Brand Oregon" campaign to get its first international outing. Products on display were associated with themes and images tied to qualities associated with the state. An event at a five-star Tokyo hotel-the Capitol Tokyu-is capturing that branding effort. For the next two months, the prestigious restaurants located at the hotel are conducting a menu promotion that features Oregon agricultural products such as Dungeness crab, pink shrimp, wine, and microbrews. The branding aspect of the promotion includes billboards adorned with the image of Mt. Hood.

More than 100 hotel food buyers and media representatives packed the ballroom of the Capitol Tokyu last month to sample and preview the Oregon products.

"The key is to see if we can turn this into a long-term deal rather than a simple two month promotion," says ODA's Mayer. "During the course of the effort, chefs will look to see what items are getting a good response from customers and will make decisions on what from Oregon might be added to their menu full time. We could do a similar promotion in the fall. This approach can be effective in selling more product in Japan."

Even though the hotel clientele is high-price and select, the promotion underscores the opportunity that exists in Japan for Oregon agriculture. It's a large, fiercely-competitive market, but even just a slice of it is a good thing to have.

ODA's experience is that a one-time event in Japan is not enough. Follow up efforts and follow through discussions have made Japanese importers and others faithful customers of Oregon agricultural products.

"We have to do a better job of targeting specific customers like upscale hotel chains or upscale retailers that don't base their purchasing decision first and foremost on price," says Mayer. "If that was the way we approached things, we would lose. It is critical to also maintain those relationships and search out new ones."

The tools being used by ODA are refined, updated, and reflect changing market trends. Having a state branding program is the latest component of what has been a concerted effort to tie Oregon agriculture with the quality so important to the Japanese.

Japan, the opinion leader

Japan often acts as the arbiter for the rest of Oregon's important export markets in Asia. Korea and Taiwan will often wait to see what the Japanese do before making their own decisions. These markets, in turn, often reprocess Oregon foods as ingredients in products ultimately sold to Japan.

"We will sell product to Korea, but they will want to ensure the product meets Japanese standards first," says Hobbs. "Japan is the ultimate opinion leader in Asia. For instance, negotiations on BSE throughout Asia will hinge on what Japan does. None of these markets will reopen the U.S. beef export market until Japan comes to some conclusion. Japan is setting the pace in terms of standards, qualities, and business practices for our producers."

"Other countries are market takers, Japan is a market maker," says Mayer. "You can look at a wide variety of agricultural products-all the pricing is derived by the demand in Japan."

The sophistication of the marketplace has only increased in recent years. The Japanese are insistent on laboratory testing and analysis. Szczepanski and Mayer visited a lab in Yokohama that actually analyzes food that "tastes good", quantifying attributes that create a sense of taste satisfaction utilizing the latest in scientific equipment and protocols.

ODA's experience in laboratory analysis to meet Japanese standards goes back to the late 1980s when the Export Service Center was established in Portland. U.S. companies-not just those from Oregon-have taken advantage of the testing and certification program offered by the ESC to gain easier access into Japan, armed with test results prior to shipment that are accepted by Japanese customs officials. Recent efforts include certification of product traceability, verifying product integrity from farm to port.

"Today, ODA is able to sell product to Japan on the strength of a complementary set of services-inspection, analysis, and official certification," says Szczepanski. "We are able to answer the Japanese market's questions about where the product was grown and how it was grown. That is a major tool in our toolbox as we deal in today's highly competitive marketplace. The Japanese customer is getting very well educated about the advantages of Oregon agriculture."

The sophistication of the Japanese market is now rubbing off on other Asian nations with the economy to import products in demand.

Utilizing the toolbox

Though separated by an ocean, Oregon agriculture has found its way to Japan on a constant basis. ODA has been a catalyst for much of that activity and plans to devote the necessary resources in the future to keep Japan as the number one priority export market. The toolbox includes targeted product promotions and trade shows in Japan. It includes reverse trade missions in which Japanese buyers come to Oregon to see product first-hand. It includes innovative efforts such as videoconference tastings of Oregon foods in which buyers in Japan sample products and are linked by satellite with sellers in Oregon. All the effort is worthwhile.

Three decades ago, ODA would check into a small hotel room in Tokyo and have a few buyers come to look at a selection of canned food products from Oregon that were designed with the American consumer in mind. Now, hundreds of interested Japanese buyers are crowding a five-star hotel ballroom to experience a full range of live, fresh, frozen, or shelf-stable food products from Oregon, as evidenced by the recent menu promotion at the Capitol Tokyu. Szczepanski says it's amazing to see how those first few spirited efforts have evolved.

"We never would have all those people coming to the ballroom without a lot of ODA shoe leather spent over the years visiting people, finding out what they want, and developing those products for the Japanese market. It may be a few feet from the original hotel room to the ballroom floor, but it represents 30 years of honing in on what the Japanese market really wants and needs."

ODA will keep its eye on the ball when it comes to competing in Japan.


Board of Ag profile
A conversation with Bernie Faber, newly elected chair of the State Board of Agriculture.

How do you feel about being named chair of the State Board of Agriculture? It is a thrill for me because I'm just an old dairyman who was honored to get on the board to begin with. To be chosen as chair is also a great honor.

In the next year ahead as chair, what do you see as some of the key issues facing the board? Working with the rest of the ag community to get us all working together [is a key issue]. Hopefully, in the next legislative session, we won't have any "knockdown, drag outs" and fights amongst ourselves in front of legislators. Let's get the issues solved first within the industry and then go to the legislature united. This is a great avenue for the Ag Congress and the Board of Agriculture to work together and solve some of these problems. Along with that, certainly Buy Oregon (promoting the purchase of Oregon agricultural products) is a necessity. I see where the governor of California now is on a big campaign to buy California products, so we need to be there too.

How do you see the Board of Agriculture's role as an advisory board to the Oregon Department of Agriculture expanding to include more policy making? I have a little bit of mixed emotions about it. In the past three years that I've been on the board, ODA has been very responsive to anything the board and individuals would ask for. The department has been very informative on key issues like BSE and sudden oak death. I think from the standpoint of how the board can be effective in the future, a little more authority for the board would probably be important.

What do you think of your fellow board members? Every meeting I go to, I'm astounded at the expertise and the ability for board members to work together on behalf of the industry. I think one of the things we will have to be a little more cognizant of is the fact that we all know we work for all of agriculture but there are some people in the industry out there who think we are only representing the [individual] commodities we produce. One of the things I'd like to see done-and I'll do this at the first meeting I preside over-is I'll introduce myself as a dairy farmer working for all of agriculture.

It sounds like raising the profile of the Board of Agriculture is important to you: People who are close to agriculture and are aware of the politics know about the Board of Ag. But there are a lot of people out there that don't have any idea what the Board of Ag is. We need to get that message out to them.

A year from now when your term as chair of the Board of Agriculture has expired, what is the one thing you hope to have accomplished? Togetherness and unity within the industry. We need to work together, particularly in looking at new agricultural development and marketing opportunities and issues.

Director's Column: Making an investment in the environment

Recent opinion pieces and articles in Oregon's daily newspapers seem to raise doubt that incentive-driven, voluntary programs are effective in getting positive environmental results. Specifically, critics are skeptical that farmers in Oregon will accomplish good results if given the ability and opportunity to do what's right for our natural resources.

It's high time agriculture receives credit for its contribution to Oregon's environment.

Voluntary efforts are working. It's important to realize that many landowners invest time and money on their own based on a sincere desire to sustain the natural resources that sustain their own operations-not because they are forced by government mandate or threat of lawsuit. These Oregonians have managed this way for generations while developing a personal connection to the land and water.

Some suggest there is no regulatory oversight of agriculture's impact on the environment and the only way to affect real positive change in cleaning up Oregon's rivers and streams is through command-and-control government regulation. In fact, regulatory programs do exist for pesticide use, concentrated livestock operations, and agricultural- water quality issues. For example, what was crafted from Senate Bill 1010 in 1993 offers landowner flexibility and creates locally-driven area-wide plans and rules addressing water quality problems while providing a regulatory backstop.

An executive order issued by the governor last year directed the Oregon Department of Agriculture to complete all 39 agricultural water quality management plans spanning the state, and begin implementing them through good practices and meaningful projects. ODA will meet that order by June 30.

Oregon's first agricultural water quality plan was completed in the Tualatin watershed in 1996. Over the past four years, more than 70 landowners have developed individual farm plans that improve water quality, restore near-stream areas, and provide fish and wildlife habitat. Nurseries are recycling water, Christmas tree growers are planting cover crops, dairy farmers are improving manure management, and row crop growers are installing drip irrigation.

SB 1010 is but one effective tool. Federal and state efforts such as the Conservation Reserve Enhancement Program (CREP) provides financial incentive for taking sensitive land along waterways out of agricultural production. Since 1999, Willamette Valley landowners have spent more than $430,000 of their own funds to restore buffers through CREP. These types of programs involve cost-sharing and a great deal of elbow grease by farmers to implement and maintain conservation projects.

While there are still agricultural lands in need of improvement, progress is being made.

All of us need to ask what Oregon would look like if much of the land surrounding our waterways did not exist in agriculture. Do rivers and streams, as well as the land itself, stand a better chance of being properly managed by active landowners such as farmers or by those who do not derive a living from working the land? My experience tells me agriculture is in a much better position of maintaining and enhancing the environment than virtually all other industries and land uses.

A growing record of results supports that position.

Katy Coba, Director

SB 1010 program hits milestone
When the State Board of Agriculture approved the adoption of four so-called Senate Bill 1010 plans in June, it marked a memorable day for the Oregon Department of Agriculture's Agricultural Water Quality Management Program. The entire state is now covered by a locally-driven, basin-specific process that ensures agriculture is addressing water quality problems. All 39 identified water quality-limited basins in the state now have approved plans and rules that guide agricultural operators in the good stewardship of natural resources.

"Twelve years ago we were told by Department of Environmental Quality and the Governor's Assistant for Natural Resources to implement a program or 'get out' of the water quality business," says ODA Deputy Director Chuck Craig. "The Board of Agriculture struggled at first, but then decided not just to stay in, but to lead. We all appreciate the commitment, work, time, and courage of everyone involved that has gone into completing this process."

The law that created Senate Bill 1010 was passed in 1993 when the agriculture industry recognized the need for a regulatory program to address water quality issues. The first plan and rules were adopted in the Tualatin in 1996. In the past eight years, other basins have gone through the public process of forming local advisory committees, which have developed plans and rules to be adopted by ODA and the Board of Agriculture. Those plans and rules address a wide range of conditions in the basin such as erosion, siltation, animal waste management, and riparian area management. In all cases, plans are outcome based and provide flexibility so landowners can develop their own approaches to local water quality problems. The plans do not emphasize enforcement as the primary method for assuring success, although compliance is a component of the program. ODA believes that a voluntary program, in which landowners are given every chance to address a problem and are offered technical assistance if needed, will ensure that the area-wide plan will achieve its goals.

History shows in those basins where area-wide plans and rules have been in place for a few years now, ODA has not needed to vigorously pursue the enforcement mode. The voluntary approach can and does work.

"I'm excited because now we can get to the enjoyable aspects of the program," says Ray Jaindl, assistant administrator of ODA's Natural Resources Division. "We are now seeing what kinds of measures and projects work for landowners. We are developing an awareness of how addressing water quality issues is compatible with managing a good agricultural operation. We are seeing a lot of success stories."

Many farmers and ranchers are noticing a positive impact on their bottom line because of measures taken to comply with basin plans and rules. Some are successfully marketing the fact that their operation is taking good care of the land and water that sustain it.

ODA's water quality planners now shift into a new role as implementation of plans and rules moves forward. Staff members are helping identify successful on-the-ground projects and measures. They are providing outreach so other landowners will know what can be done in their own operation. Planners are monitoring the impact of the plan and rules, and they are involved in conducting biennial reviews for each basin. (Ten of the 39 adopted plans and rules have already completed a biennial review).

Many farmers and ranchers have proactively taken positive management steps as part of good, sound stewardship-even before SB 1010 plans were in place. The program has encouraged even more efforts as a vast majority of landowners want to do what is right. Under SB 1010, those good efforts not only show the non-ag community that the industry has the fortitude, willingness, and ability to do its part in ensuring water quality, those efforts offer protection against those who would choose to criticize agriculture for not doing enough.

The bottom line is the area-wide management plans provide a means to address water quality while helping to keep farmers and ranchers in business.

ODA takes steps to protect Oregon from sudden oak death
Oregon´s $778 million nursery industry has responded to the increasing threat of sudden oak death (SOD) by asking for and receiving a statewide inspection and certification program from the Oregon Department of Agriculture that is designed to maintain the integrity of the state´s nursery stock. A flurry of developments the past several months has raised the profile of the potentially devastating disease, bringing it to the attention of the rest of the nation. The new ODA program is the latest in a series of regulatory steps in response to the impact of SOD.

Early this year, two Southern California nurseries were found to have plants testing positive for Phytophthora ramorum , the fungus that causes sudden oak death. One of those nurseries had shipped plants to 40 states, including Oregon. ODA responded with an aggressive sampling and testing process for Oregon nurseries that had received the California plants which included the destruction of any infected plants. In April, ODA followed the lead of other states that had placed an emergency quarantine on California nursery stock susceptible to SOD.

When plants testing positive for P. ramorum in Maryland were traced back to a Columbia County nursery in Oregon late this spring, ODA issued an emergency quarantine for the county and quickly sampled and tested plants at the nursery in question. Even though the county quarantine remains in place, ODA has determined at this point that the disease was isolated to the one nursery, and a limited number of plants were found to be infected.

P. ramorum causes leaf blight, dieback, or death in certain trees and shrubs including tan oak, rhododendron, viburnum, and camellia. Susceptible plants include species important to Oregon´s native forests and horticultural landscapes.

"In order to protect the strong reputation of our nursery products, the industry itself asked the department to design a regulatory program that could assure customers that Oregon nursery stock remains clean and high quality," says ODA director Katy Coba. "We want the rest of the U.S. and export markets to understand that our nursery industry is not infested with sudden oak death, and that any new introductions of the disease will be detected early and quickly eradicated."

The new statewide inspection and certification program is the latest measure to be taken by ODA. All growers of plants susceptible to P. ramorum are required to be annually inspected, tested, and certified free of the disease before they are allowed to sell those plants.

Growers and dealers must also enter in a compliance agreement with the department. That agreement requires nurseries that have been inspected and certified clean to buy plant material only from other certified clean suppliers. Plant material brought in from an uncertified source will be held and tested by ODA.

Growers and dealers of plant material susceptible to SOD must also comply with ODA´s notification rule that requires all recipients of tree and shrub nursery stock coming from any out-of-state source to notify the department for possible inspection of the plants. Landscapers and plant collectors are also included in the requirement, which is designed to locate any introductions of sudden oak death before infected plants can reach consumers or other nurseries.

The U.S. Department of Agriculture´s Animal Plant Health and Inspection Service (APHIS) is providing funds, personnel, and equipment to ODA in an effort to help meet the demands of the new statewide regulatory program.

Time will tell if sudden oak death will become more or less of a problem for Oregon and other states. But the latest measures taken by ODA will hopefully allow the nursery industry to go about its business while also protecting the natural resources of Oregon.

Imperial Stock Ranch: past meets present
The land has connected the Hinton Family to the Ward Family to the Carver Family. Twenty miles east of Maupin and the banks of the Deschutes River in North Central Oregon, travelers find a bit of desert interspersed with broken canyons. You can drive 50 miles and not find a flat road. This is the home of the Imperial Stock Ranch, currently owned by Dan and Jeanne Carver-the latest in a line of families that have operated this large, sprawling complex since the early 1870s. The Carvers insist on maintaining time-honored traditions that have well served this productive ranch over the generations. In fact, it was a promise made by Dan to George Ward 16 years ago that convinced the previous owner to sell.

"My husband assured Mr. Ward that we would keep the ranch operating much the way it had been for over a century," says Jeanne. "It's easy to say no, we are not going to continue doing this or growing that anymore. However, it's rewarding to say yes. By making the promise and maintaining the traditions of the ranch, we are honoring those people who worked this land before us."

The Imperial Stock Ranch Headquarters Complex is on the Park Service's National Register of Historic Places. It's a History Channel special waiting to be aired. Starting nearly a century and a half ago with the arrival of R.R. Hinton-a wandering homesteader originally from Missouri-this fascinating story of an Oregon empire has been given a 21st century makeover. A huge working sheep ranch responsible for the only breed successfully developed in the U.S. is still producing high quality wool and lamb meat. Jeanne has added value to the Columbia wool by using it in knitting kits and boutique fashions. The lamb is directly marketed to upscale restaurants, and is in such demand by the chef at Sunriver and others that production has been forced to increase.

But there is more to this historic, diverse operation and its 30,000 acres.

"The lamb customers have also created new beef customers," says Dan. The Carvers produce what they call "reputation" cattle. They get a good price for the extra care they give their animals. The cattle are fed grain produced on the ranch. They don't force extra weight on young calves, which Dan says is not good for marbling of the meat. The animals on the ranch are born and raised on the same piece of land, never leaving the operation until it is time to go to slaughter in Prineville. The Carvers say being homegrown on this landscape in a low-stress environment means the calves bring a very good reputation come marketing time.

Dan Carver raises his crops with the same kind of care.

"The goal is less fertilizers and herbicides," he says. "We can market the fact that we take care of the land. The consumer wants to know where the food comes from and how it was produced."

The Carvers employ such techniques as no-till production in which the ground is not broken in order to seed the crop. Dan says the yields are great. He has been able to keep the soil from blowing away while sustaining its fertility. Dan has been active for years in local efforts to maintain the quality of the surrounding natural resources. The Carvers say the preservation of the land is the key to the ranch's viability.

The Carvers also maintain some of the original small fruit orchards and gardens situated next to the ranch headquarters-turning the apples into cider and raising vegetables for personal consumption. Keeping the same domestic traditions as the preceding families is important.

"The diversity of agriculture on this ranch is what helps keep it going," says Jeanne. "In a time of increased specialization, we have stayed diverse."

Part of Jeanne's passion continues to be the history of the ranch. Original buildings have been restored and the result is a snapshot of what the operation looked like at the turn of the previous century. Jeanne is the one who took the time to do a title search for the National Historic Register. She was fascinated to learn that R.R. Hinton's first son James was born in a nearby cave in 1872 before a home was actually constructed. (Interestingly, James Hinton lived to be 98 years old before dying in 1971, having sold the ranch to the Ward family four years earlier.) R.R. Hinton built up the ranch through a series of buyouts, as he paid a dollar and a horse to failing ranchers who were more than happy to unload the land. The accumulation led to what eventually became the largest individually owned ranch in Oregon, employing some 100 workers.

Currently, the Imperial Stock Ranch offers a form of entertainment-agri-tourism. Tour groups can see a working ranch that may help connect them with their agrarian past.

Recently, a vehicle pulled up to the Carver home, next to the original ranch headquarters home. An elderly couple-a brother and sister in their 90s-had traveled to this outpost for one last look at where they grew up. A few miles away, on the side of a steep hill overlooking Buck Hollow Creek, stood the remnants of the house where they were born that existed nearly a century ago. When the Carvers drove the couple to the site, the brother and sister recalled a childhood of tough times but lasting memories preceding the Hinton family purchase of the property.

"More than a hundred people have come back to this spot-most of them in their nineties-to see the old homestead," says Dan, who feels some responsibility to sustain the operation any way he can. "We feel like we are the stewards of the history of all the families who came here before us."

And the ranch continues.

Ag census shows Oregon bucking the national trend
Final statistics from the most recent Census of Agriculture confirm that Oregon runs counter to most other states in many ways when it comes to farming and ranching. Oregon agriculture's diversity-both in what it produces and the type of operation that produces it-stands out in comparison with the rest of the U.S.

"The latest census figures tell an interesting story about Oregon agriculture," says Katy Coba, director of the Oregon Department of Agriculture. "We know our industry is diverse. But it's also worth noting the number and size of our farms and ranches are trending differently than most other states."

The Census of Agriculture is conducted every five years in all fifty states, and is the most ambitious and important compilation of all agriculture surveys. Officials are comparing the 2002 census to the 1997 census.

Nationally, the number of farms is declining while the average size of farms is increasing. Oregon's mix of farms show a fairly constant number-roughly 40,000 of them statewide-with an average size decreasing from 442 acres in 1997 to 427 acres in 2002. The size diversity is dramatized in the difference between Wheeler County (average of 4,501 acres) and Josephine County (average of 44 acres). The fastest growing segment of agricultural operations is the farm under 50 acres in size, which represents more than 60% of all farms in Oregon.

"It might be explained by an increase in the number of people going into specialty agricultural production not needing a lot of acres," says Janice Goodwin, state statistician with the Oregon Agricultural Statistics Service. "It's also possible that people are retiring on small acreages with a limited amount of agricultural production taking place."

While there are many small farms, the real economic power of agriculture comes from operations that are much larger. Farms and ranches with total annual sales of $100,000 or more account for only 11% of all operations in Oregon, but contribute 89% to the state's total agricultural sales.

The most recent Census of Agriculture also confirms a disturbing trend-increases in operator income are being outpaced by expenses.

"Oregon's market value of agricultural products sold for the 2002 census was $3.2 billion, up from $3.0 billion in 1997," says Goodwin. "But the total farm production expenses for the 2002 census was $2.8 billion. That's a jump of 21% from the previous census."

The latest census also offers an interesting profile of what Oregon produces:
 
  • Crops account for 69% of the state's total sales, while livestock and poultry account for 31%.
  • Among the crops, nursery, greenhouse, floriculture, and sod sales account for 37% of the total sales.
  • The livestock category is dominated by cattle and calves, which accounts for 54% of the total. Dairy's share of the livestock sales total increased 5% from 1997, to more than 29% of all livestock sales.
  • While milk cow numbers increased over the five-year period, beef cow inventory declined. Specialty livestock such as goats and llamas increased significantly.
  • For the first time, the Census of Agriculture included a question on the value of certified organically produced commodities sold in 2002. A total of 515 farms reported nearly $10 million in sales.
 
Both the 1997 and 2002 census provide a profile of farm and ranch operators in Oregon:
 
  • The average age of principal operator in Oregon increased 1.7% to just under 55 years old, slightly younger than the national average. The largest category (30.8%) includes those operators ages 45-54. Looking at both ends of the spectrum, 13.8% of Oregon's operators are at least 70 years old while only 4.6% are under the age of 35.
  • The number of women principal operators of Oregon arms and ranches increased by 17.6% from 6,032 to 7,093.
  • Principal operators of Spanish, Hispanic, or Latino origin increased by 63.7% from 628 to 1,028.
  • Farm households in Oregon have an average of 2.2 persons.
  • More operators (53.9%) report farming as their primary occupation in 2002 than in 1997 (43.4%).
 
The latest census numbers show that 88% of Oregon's farm and ranches are owned by an individual or family. Another 6% is considered a partnership, but most of those are family partnerships. Even in the category of corporations (5% of Oregon farms and ranches), a significant portion includes family corporations. All told, an estimated 97% of all operations in the state are considered family farms and ranches. The idea of large corporate agriculture in Oregon is simply not the case.

The census data continues to provide a number of good stories on Oregon agriculture and will give decision makers the data they need to move forward on policies directed towards the industry.

The 2002 Census of Agriculture is available online at <www.nass.usda.gov/census>.

ODA battles gypsy moth in South Eugene
Residents of South Eugene experienced a relatively smooth gypsy moth eradication project conducted by the Oregon Department of Agriculture this spring as three separate aerial applications of the biological insecticide Bacillus thuringiensis var. kurstaki (Btk) were made to 183 acres of a densely wooded area. The spray project followed the trapping of 16 gypsy moths last year along with the discovery of female gypsy moths, several old and new egg masses, and additional gypsy moth life, indicating a viable reproducing population in the area.

Public information meetings helped to educate local residents about the gypsy moth problem in their neighborhood. The project also provided an educational opportunity for students at Crest Drive Elementary School as the helicopter involved in the application of Btk touched down on the school grounds well after the job had been completed. The pilot and part of the ODA team were on hand to answer questions from eager youngsters.

Currently, some 17,000 gypsy moth traps have been placed statewide as part of ODA's annual detection program. Officials are hoping and expecting that no gypsy moths will be found in the South Eugene area this summer because of this spring's eradication effort.


Specialty crop grants update
Editor's note: The Agriculture Quarterly is featuring selected summaries of projects funded through the Specialty Crop Grants Program. ODA and the State Board of Agriculture has distributed $3.2 million in federal funds to dozens of proposed projects. A complete listing and description of all 55 projects can be found online at: <http://oda.state.or.us/dbs/crop_grants/hitlist2.lasso>

Project Profile: Meadowfoam seedmeal research

Total grant applied toward project: $30,000

Total provided by other entities: $42,800

Meadowfoam is a unique specialty crop produced in Oregon's Willamette Valley. The oil from the plant seeds is processed into highly refined uses such as cosmetics. This project aims to develop new products and uses to further crop demand. The specific focus includes evaluation of Meadowfoam oil as alternative horticulture sprays for disease control; biocides for control of soil-borne pathogens; and meal as a growth enhancer for forestry and nursery plants.

Results

Initial test results at OSU showed growth-inhibiting effects of Meadowfoam seedmeal on Phytophthora ramorum, the causal agent of Sudden Oak Death disease. Further research on other pathogens indicate potential for Meadowfoam products to have a direct effect on some fungal pathogens, but further testing is needed. Findings related to use of seedmeal at 5% incorporated into basic potting soil significantly increased Douglas fir seedling growth, including quicker initiation of lateral shoot development compared to other growth promoting products. Further research and development will be critical to enable commercial development of these product uses.

Project profile: Increasing honeybee operator pest awareness and effective controls

Total grant applied toward project: $25,850

Total provided by other entities: $10,200

Honeybee pest problems are compounded because hobby operators often do not understand the risks and effective treatments. Infected bee movement poses risks to all beekeepers. This project is aimed at creating a database of beekeepers in Oregon and providing educational materials and workshops on bee pest management.

Results

Identifying all beekeepers in the state has been challenging and continues to be an on-going process. Even so, the project has created a database of beekeepers that exceeds any list previously held by the state or any honeybee organization. Curriculum for pest control options was developed in collaboration with leading researchers and bee experts, along with information from USDA and the Canadian Department of Agriculture. Seven workshops were held through 2003 and 2004. More than 400 beekeepers attended the workshops and conferences. Positive feedback and demand for materials indicates success of the approach, which is intended to result in better pest management for all producers.

Project profile: Sardine product development & marketing

Total grant applied toward project: $95,000

Total provided by other entities: $157,000.

Bornstein Seafoods initiated this project with the OSU Seafood Lab, Western Washington University, fishermen, and other cooperators. The project involved market research on Japanese and European Union (EU) marketing potential; product development for canned sardines, fillets and other products; harvest parameters for temperature handling; and plant upgrades.

Results

The company obtained detailed market information on EU country-specific and Japanese consumption of sardines as well as recommendations on product type and distribution options. OSU Seafood Lab examined four new products; smoked sardines, canned sardines, beer-battered sardines, and sardine Caesar salad. Onboard time and temperature testing, from catch to delivery, enabled product quality assurance implementation of Food Grade HAACP. The company provided plant upgrades to implement product handling and processing. The company reports enhanced sales of $1.2 million, with a doubling of volume from one vessel to two in 2004.

Project profile: Developing chickpea production in Oregon

Total grant applied toward project: $53,600

Total provided by other entities: $75,600 cash and $34,700 in-kind contributions

This collaborative project involved research provided by OSU and USDA-Agricultural Research Service, land and management oversight by more than 20 growers, and participation of several industry organizations and businesses focused on establishing the viability of chickpea production in Northeast Oregon. Two varieties of chickpeas have been established at sites in Moro, Pendleton and Milton-Freewater. The project involved determining fertility practices, harvesting, and rotational use with wheat. Chickpeas are able to fix atmospheric nitrogen and add it to the soil for its use and by subsequent crops. It benefits cereal crops in rotation by breaking up disease and insect cycles. It also helps clean-up grassy weeds that are problematic in cereal mono-cropping.

Results

The research from this effort has provided critical information on seeding dates, row spacing and seeding density. Tillage methods, varietal viability, disease impacts and treatments, and harvest efficiency recommendations were also developed and published in a "Chickpea Production Guide." Several grower education workshops were also held.

Project profile: Weather-based stem rust management information system

Total grant applied toward project: $90,000

Total provided by other entities: $65,000.

The major product of this research project is the publicly-available internet Website that provides daily information about stem rust disease development during the grass seed growing season. The Website uses daily weather data relayed from automated weather stations in the Willamette Valley to drive a mathematical model that estimates stem rust development and treatment recommendations. The Website allows growers to enter site-specific information from disease scouting and fungicide spray dates and materials. This enables growers, ag supply companies, extension personnel and others, to estimate the potential of future disease and follow recommended management results.

Results

While it is not possible to know precisely the cost savings associated with the system, it is likely that many of those using the site to assist with management decisions were able to forgo an unnecessary spray, reduce fungicide use (in comparison with a strictly calendar-based spray schedule) or change a spray schedule for more effective treatment. The cost of one spray application is approximately $20 per acre. If 10% of the perennial ryegrass acreage received one less application through management actions related to the Website, it would represent a cost savings of $300,000 to $400,000 to growers.

Commodity Commission Spotlight: Processed Vegetables
  • Established 1985
  • Address PO Box 2042, Salem, Oregon 97308
  • Phone 503-370-7019
  • Fax 503-587-8063
  • E-mail assoc@wvi.com
  • Web site none
  • Chair Mark Lewis
  • Commissioners
    The Oregon Processed Vegetable Commission, OPVC, is comprised of seven producers, three processors and one public member for a total of 11 members. Commission members are appointed by the director of the Oregon Department of Agriculture.
  • Administrator John McCulley
  • Assessment
    The commission funds production research on six of the crops grown for processing in Oregon-snap beans, table beets, broccoli, carrots, cauliflower, and sweet corn. Each crop is assessed a different amount based on the cost of the research associated with that commodity. The maximum assessment is one half of one percent of the three-year average price paid to the grower for the particular commodity.

    Activities and accomplishments

    The OPVC´s only activity is research. The commission evaluates research proposals that will help Oregon producers lower costs of production. It also led the effort about 10 years ago to establish the endowed Vegetable Breeding Professorship at Oregon State University.

    Crop research committees, composed of growers, provide input to the commission on projects that are important to producers. Those committees review research proposals and recommend to the commission which projects to fund.

    A major focus of the commission is on development of green bean varieties that will allow Oregon growers to compete with the low cost producers in other parts of the United States and the world. The results of the commission´s investment has been the introduction of high yielding, high quality green beans. The breeding program continues its aggressive efforts to maintain Oregon´s status in the production of green beans where our growers produce almost 25 percent of the green beans in the U.S. The breeding program also seeks to develop varieties that are disease resistant to address the continual challenges aimed at crop protection products.

    The commission played an important role in funding key research in the sweet corn disease problems that have plagued growers for several years. The multi-pronged, multi-year effort involved variety evaluations, disease organism identification and control strategies.

    Innovation has been a hallmark of the OPVC as it seeks "cutting edge" projects that will meet growers needs to reduce costs and improve profitability. Strip tillage, cover crops, rotation alternatives, genetic mapping, pest monitoring prediction, trap cropping and other unique research programs have all been important elements in the Commission´s efforts on behalf of growers.

Announcements
Ag Progress Awards Dinner
  • October 14, 2004
  • Call 503-986-4552 for details
  •  
    Ag Resources Directory
    • 2004 Agricultural Resources Directory will be available soon. Call 503-986-4550 to reserve a copy.
     
    Web migration
    • The Oregon Department of Agriculture Web site is undergoing changes. Visit our new site and watch the transformation. Go to http://oregon.gov/ODA .
/ODA/docs/pdf/news/0407aq.pdf
 
Page updated: May 14, 2007

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