Ag's Big Impact

By Phil Hayworth

Pioneer Press

Fort Jones , CA

Wednesday, January 30, 2008

page E8, column 3

pioneerp@sisqtel.net

With the recent release of the Klamath Water Settlement has come a greater understanding of the need for predictable water supply and, perhaps, a deeper appreciation for the farmer and rancher - the backbone of the Klamath economy.

Almost $300 million is pumped directly into the economy here, thanks to agriculture. Double that figure to $600 million and you have the "multiplier" effect of agriculture on the economy.

"We track the agriculture dollar to the last penny," said Willie Riggs, agriculture economist with Oregon State University 's Ag Extension in Klamath Falls .

"Hey, things don't stop once the snows come," he said. "Ranchers are feeding their cows once or twice a day. Machinery is being repaired. Farmers are packaging their product for market. Cows are getting ready to calve."

And all that activity means that farmers and ranchers are out buying supplies, driving the Klamath economy during even the notoriously slow winter months typically experienced in other, less agriculture-dependent economies.

The coming of snow, for example, means businesses like Big R and other farm supply shops are booming. Even county tourism got a shot in the arm last weekend as hundreds of snowmobile enthusiasts and related businesses converged on the Klamath Fairgrounds for their annual convention.

Indeed, between 1997 and 2007, the Basin's economy has doubled, thanks mostly to a resurgent farming and ranching economy. How is this happening? Riggs says that gas prices are driving up market prices. On the other hand, those gas prices drive up the cost of doing business - and that means that farmers and ranchers have to do business smarter.

"If they're not actually working on the farm and those other things, they're working on next year's financial statement or going to water meetings this time of year," Riggs said.

(Permission to post from the publisher.)