Adaptability a key word in agriculture

By TY BEAVER
H&N Staff Writer 

October 28, 2007

Ty Kliewer cuts alfalfa on his family’s farm south of town in June. Klamath County agricultural sales exceeded $205 million in 2006, a record.

   Two years ago, Klamath Basin farmers and ranchers struggled with commodity prices. 

   And even if there were no other issues, such as a natural scarcity of water, agriculture officials say many still would have struggled. 

   Prices are better today, but natural resources issues, specifically water scarcity, still put farmers at risk. And the costs of their operations continue to increase. 

   Those in agriculture have always adapted . Many use computers on a daily basis and conservation practices are a regular part of the industry. Maintaining that adaptability will be key to agriculture’s survival, experts say. 

   “People just have to keep up with their business plan,” said Willie Riggs, director of the Klamath Basin Research and Extension Center . 

   Record sales 

   In Klamath County , agricultural sales exceeded $205 million in 2006, a record. Overall, sales increased every year since 1998 with the exception of 2001, the year the federal government cut off irrigation water to Klamath Basin farmers. 

   Prices for nearly all commodities exceeded estimates. Hay growers enjoyed prices $30 higher on average than last year’s prices, especially on organic varieties. Grain prices were also several dollars above initial estimates. 

   But despite record sales, the Oregon Department of Agriculture reported that increasing costs resulted in a decrease in net income to farms and ranches in 2006. 

   “All of our costs are up,” Riggs said. “When we look at fuel costs, that’s only one part of it.”

   In the Basin, natural resources issues demanded attention. 

   The need to satisfy biological opinions for endangered fish created a delicate situation. Farmers had to be sure there was enough water for crops as well as wildlife. 

   Many of the problems aren’t new, said Harry Carlson, director of the Intermountain Research and Extension Center . Securing water for crops and animals is common across the West, while prices and costs are perennial issues. 

   “That’s the challenge that’s faced agriculture for the past 150 years,” he said. 

   Carlson pointed out that one group, the United Potato Growers, realized the need for individual growers to stop competing against each other. By working together to reduce acreage, the organization exerts some control over prices. 

   Diversity 

   Crop diversity also is important. With more to choose from, diversity gives growers a choice when one or two crops aren’t doing well in any single year, Carlson said. 

   Whereas potatoes, grain and hay used to dominate, now there are fields of mint, horseradish, onions, strawberry plants and other niche crops alongside them. Biofuels crops, such as canola, also may be grow regularly in the future.

Impact of agriculture 

   The grand opening of a new department store may be a sign of economic health, but the success of agriculture may have a bigger impact on a community. 

   Willie Riggs, director of the Klamath Basin Research and Extension Center , said money generated from agricultural operations remains in the local area longer, increasing its economic impact. 

   While all businesses have to pay employees, not all their money stays puts. Some might go to a corporation elsewhere, or to an out-of-area company contracted for goods and services. 

   Agricultural operations pay for local labor, and its operators also are more likely to buy parts, fuel and other necessities locally, Riggs said. Agricultural activity also stimulates other businesses, he added, such as equipment dealerships and seed warehouses. And, those in agriculture also tend to travel lesser distances, so more money remains to be spent on food, housing and entertainment.

Klamath County agriculture sales 1998-2006

Agricultural sales have increased nearly every year since 1998. Crop sales are the largest portion of the increase. Livestock sales have begun to plateau in recent years after a short increase.

1998 — $110 million
1999 — $125 million
2000 — $130 million
2001 — $116 million
2002 — $147 million
2003 — $167 million
2004 — $183 million
2005 — $201 million
2006 — $205 million

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