By JOEL ASCHBRENNER 

H&N Staff Reporter

February 2, 2012

     Klamath Basin farm equipment dealers have seen a slump in sales recently, as they say producers are holding tighter to their wallets over concerns they will have insufficient water for the upcoming growing season.

   Demand for tractors, irrigation supplies and other farm equipment has been up and down in recent years, local dealers say. Sales were strong in early 2011 after down years in 2009 and 2010 due to a sluggish economy and a local drought.  

   When irrigators are uncertain about water supplies, they’re less likely to make a major purchase such as a new swather or combine, said Ron Linman, general manager of Klamath Basin Equipment. Snowpack in the Klamath Basin is 37 percent below average for this time of year, according to the Natural Resources Conservation Service.

   “Those guys can’t plan unless they have water coming,” Linman said. “Our business relies on them having a plan.”  

   Economic effects

   Agriculture in the Klamath Basin is a $300 million industry that employs up to 4,000 people, according to Oregon State University’s Klamath Basin Research and Extension Center. When farmers and ranchers have a good year, it benefits most local businesses from farm equipment dealers to restaurants and movie theaters, agricultural economist say.

   Klamath Basin producers benefited from a strong farm economy in 2011. Prices for commodities including hay, grain and beef were up, but the cost of fuel, fertilizer and other inputs were up, too.  

   Some producers were willing to spend this year to upgrade their operations, after holding off in 2009 and 2010, said Bob Flowers, president of the Klamath-Lake County Farm Bureau. But as the weather dried out — Klamath Falls received essentially no precipitation from Thanksgiving to Christmas — producers became more cautious.

   “Typically what you do is try to update when you can, but remember that the next year might be down and the payments might be hard to make,” Flowers said.  

   The recent slump in farm equipment sales is due mostly to uncertainty, said Don Boyd of Floyd A. Boyd Co., a Merrill tractor dealership. Producers are uncertain about water supplies, the 2012 elections and other national issues, such as farm regulations and the federal debt, he said.

   “I think a lot of our farmers have money and they’re going to hang on to it until they have a little better feel for what’s going to happen,” he said.  

   Boyd said he thinks the Basin will have enough water come spring — precipitation has picked up in recent weeks. Linman agreed, saying he is optimistic about the growing season.

   “These growers, they will make it work; they always have,” he said. “The ground’s there, so they’re going to continue to farm.”

 

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