MONEY
MATTERS: A LOOK AT THE KLAMATH BASIN ECONOMY
Oregon State
University Klamath Basin Research and Extension
Center Willie Riggs, director
October 28, 2010

The food industry in America has become efficiently
massive.
Rather than a barter system, where people trade eggs
for bread or milk for meat, grocery stores provide
endless varieties of innumerable foods.
“Most people are two or three generations removed
from agriculture. Two percent of the population is
producing food for the other 98 percent,” said
Willie Riggs, director of the OSU Klamath County
extension office.
“People don’t think about where the food comes
from,” he said. “It’s not grown in the back room at
the grocery store, it’s produced by agriculture.”
Producers have paid a price for convenience. Farmers
and ranchers receive about 20 cents for every dollar
spent on food. The other 80 cents goes to
processing, wholesaling
, distribution and selling.
Bread, for instance, comes from wheat and grains,
which last year made up about 21 percent and $50.2
million of crop sales in the Basin, according to the
OSU Extension Economic Information Office.
Grain goes to the mill to make flour, which goes to
the baker to make loaves of bread, which go to the
packager to bag, which is transported to the grocery
store, shelved by an employee, and sold to the
consumer.
For
a $1.99 loaf of bread, 12 cents goes to the farmer
and $1.87 goes to the steps in between.
D&D Seeds and
Farm Equipment Sales
Todd Greer, owner
Todd Greer, owner of D&D Seeds and Farm Equipment
Sales, was forced to cut employee hours after
business dropped off following a cut in water
deliveries to irrigators.
The store’s
revenue comes half from seed sales and half from
equipment sales.
When farmers
planted fewer acres, they needed fewer of Greer’s
products.
“This year
overall less seed sold, but for the business, seed
was a bigger percentage of sales than equipment,”
Greer said.
“We cut back
everywhere,” he said, including employees and hours.
“Farmers cut
back, which means I cut back, which means I’m not
spending money in the community I normally would
because the money’s not available,” he added. “The
power company, shoes, home improvement, restaurants,
clothing, recreation — everything is affected.”
Greer doesn’t
know what to expect next year.
“Nobody has any
idea,” he said. “We’re very dependent on what the
government does with water. The government has made
such a mess of this that the farmers can’t plan,
which means I can’t plan.”