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Oregon initial hazelnut price drops below $1 per pound

Capital Press Agriculture News Oregon -

Oregon farmers will receive at least 96.5 cents per pound of hazelnuts this year, a decrease of 18 percent from last year’s initial price.

The price slide comes at a time when hazelnut growers are also expecting lower yields, with Oregon’s total production projected to be 36,000 tons, down from 44,000 tons last year.

“With a small crop it’s going to be tough for everyone,” said Doug Olsen, farmer and president of the Hazelnut Growers Bargaining Association.

Price fluctuations in Oregon are influenced by the hazelnut crop in Turkey, where low yields caused by a deep freeze drove up the domestic price to $1.70 per pound in 2014, the highest on record.

A bumper Turkish crop in 2017 has had the opposite effect on Oregon’s initial price, though farmers could still end up with a higher price if processors receive premiums.

Whether farmers will make a profit this year varies by individual, since people have different levels of debt and establishment costs for their orchards.

“It kind of depends where you are, how mature your orchard is,” said Nik Wiman, an Oregon State University orchard specialist.

According to a conservative estimate by OSU, farmers who plant the popular Jefferson variety earn a profit in the seventh year of orchard production at prices of $1 per pound, he said.

At roughly $1 per pound, farmers in Oregon will probably still be motivated to continue planting the crop, said Olsen.

“It might slow down a little bit but it’s still one of the better-paying crops right now,” he said.

Negotiations among farmers and hazelnut processors dragged on longer than normal in 2017, with the parties winding up in mediation to set an initial price.

There was some disagreement about how high the price could rise without hurting demand, particularly in China, a major market for Oregon’s crop, said Terry Ross, executive director of the Hazelnut Growers Bargaining Association.

Ultimately, data from the Oregon Hazelnut Marketing Board showed that China’s demand for our hazelnuts is “elastic,” meaning that higher prices would curtail purchases, Ross said.

“Once all the factors about market conditions were presented and discussed, there was no other solution than the price that was set,” he said.

Jeff Fox, executive director of the Hazelnut Growers of Oregon cooperative, said he was disappointed by the price decline, since the industry has seen large Turkish crops before.

Oregon producers have the opportunity to earn a premium based on growing higher quality hazelnuts than those grown by Turkish farmers, he said.

“Hopefully this doesn’t impact their behavior as far as planting but I suspect it will,” Fox said of domestic growers.

While the price has fallen since 2016, this year’s initial price is nonetheless the sixth highest on record, said Larry George, president of the George Packing Co.

“It’s a strong price historically,” he said.

Profitability in 2017 will be determined by production, which shows the Oregon industry should invest in increasing and stabilizing yields, George said.

Hazelnuts have relatively low labor costs and good returns for farmers, he said. “Our view is the best years for the hazelnut industry are still in front of it.”

First REAL Oregon class selected for leadership training

Capital Press Agriculture News Oregon -

Thirty agriculture and natural resource professionals have been selected to take part in the first Resource Education and Agricultural Leadership (REAL) Oregon Program.

REAL Oregon is a collaboration of ag, forestry and fishing commodity and advocacy organizations, formed with the goal of developing leaders to represent their interests in legislation and policy discussions.

Greg Addington, REAL Oregon director, used a sports analogy to describe the program’s goals. “Are we developing a bench to go to?” he asked. “Who’s going to be the next county Farm Bureau president? Who is going to be on the irrigation board? Who’s the next commodity commission member?”

People selected for the program will go through five statewide training sessions, the first one beginning Nov. 14 in Ontario and concluding in March 2018.

The program will explore the diversity of Oregon’s geography, economy and culture through training in board governance, communication skills, conflict resolution, government interaction, public policy work, critical thinking, media relations, professional presentations, public speaking and relationship building, according to a REAL Oregon news release.

Such leadership training programs aren’t unique; 34 states have something similar. Oregon’s program is modeled after Idaho’s, which will host its 38th class.

The program costs $5,000 per person, of which the trainees are expected to pick up half, either personally or through sponsorship by their organization or employer. The rest of the cost is paid for with “seed money” from the Oregon Farm Bureau, Wilco, Oregon State University, Land O’Lakes, Hazelnut Growers of Oregon, Oregon Aglink, Northwest Farm Credit Services and Valley Agronomics.

Of the first training group, 20 are from Northwest Oregon or the Willamette Valley, five are from Eastern Oregon or the high desert region, three are from Northeast Oregon and two are from Southwest Oregon.

Members of the first Oregon REAL class are:

Dylan Branch, Riddell Farm, Monmouth; Kent Burkholder, Burkholder Farms, Albany; Doug Grott, Wilbur Ellis, Corvallis; Stuart Butsch, USDA Farm Service Agency, Salem; Rick Jones, Cascade Timber Consulting, Sweet Home; Lauren Lucht, Northwest Transplants, Molalla; Andrea Krahmer, Northwest Farm Credit Services, Salem; Erick Garman, Oregon Department of Agriculture, Portland; Nolan Sundberg, Northwest Farm Credit Services, Eugene; Macey Wessels, Barenbrug USA. Scio; Jeff Fox of Wilco Hazelnut, LLC, Aurora; Christina Higby, Oregon Department of Agriculture, Stayton;

Matt Mattioda, Miller Timber Services, Albany; Lauren Smith, Oregon Water Resource Congress, Salem; Karl Dettwyler, Blue Line Farms, Silverton; Jenny Freeborn, Pacific Risk Management, Rickreall; Helle Ruddenklau, Ruddenklau Farms, Amity; Molly McCargar, Pearmine Farms, Gervais; Jacon Taylor, Oregon Farm Bureau, Eugene; Anne Marie Moss, Oregon Farm Bureau, Salem; Scott White, Klamath Water Users Association, Klamath Falls; Victoria Flowers, Flowers Farms, Midland/Klamath Falls; Susan Doverspike, Doverspike Ranch, Burns; Pete Schreder, OSU Extension, Lakeview; Megan Thompson, Sage Fruit Company, The Dalles; Sam Taylor, Pacific Ag, Hermiston;

Robert Waldher, Umatilla County, Athena; Tom Demianew, Oregon Department of Agriculture, Pendleton; Mark Kincaid, Lone Rock Resources, Roseburg; Kyle Kenagy, Kenagy Cattle Company, Oakland.

Potential pot producers seek dismissal of neighbors’ lawsuit

Capital Press Agriculture News Oregon -

McMINNVILLE, Ore. — Aspiring marijuana growers in Oregon’s Yamhill County have asked a judge to dismiss a lawsuit against their operation filed by neighboring landowners over potential odors.

The complaint was filed earlier this year against Steven and Mary Wagner, as well as their son Richard, who planned to grow and process marijuana on their property near McMinnville, Ore.

The Wagners argue that two of their neighbors, Harihara and Parvathy Mahesh, are barred from filing trespass and nuisance claims under Oregon’s “right to farm” statute, which shields growers from such complaints.

Claims filed by their other neighbors — the Momtazi family, which owns nearby vineyards — should also be thrown out because the Wagners haven’t trespassed or interfered with their land, according to defendants.

“You don’t get to file a lawsuit with no facts, sheer conjecture, pure speculation about what will happen,” said Allison Bizzano, attorney for the Wagners.

Oral arguments over the Wagners’ motion to dismiss were held in McMinnville, Ore., on Oct. 11 before Yamhill County Circuit Court Judge John Collins.

The damages alleged by the plaintiffs are not actionable in court because they’re based on proposed activities that haven’t yet occurred, she said.

“Even if we assume there is an odor, there’s no evidence it will travel over the plaintiffs’ property line,” Bizzano said.

According to the plaintiffs, the Wagners are not protected by the “right to farm” law because “foul-smelling particles” from marijuana will impermissibly harm wine grapes already growing on the Momtazi property and which have yet to be planted on the Mahesh property.

“They’re in the zone of danger in how their grapes might be affected by the marijuana operation,” said Richard Brown, the plaintiffs’ attorney.

Oregon’s “right to farm” statute doesn’t immunize against complaints over “damage to commercial agricultural products” filed by other farmers, Brown said.

“It was about suburban encroachment on farms, and not about claims against one farmer by another farmer,” he said.

The plaintiffs disagree their lawsuit is based on speculative injuries, arguing that judges can issue injunctions that stop future unlawful or harmful conduct.

“If the court allows them to develop the property first, it’s the equivalent of letting them pull the trigger,” Brown said.

At this point, it’s not necessary for the plaintiffs to prove what type of particles may affect grape skins and how far those particles will travel, he said.

To survive a motion to dismiss, it’s enough for the plaintiffs to show the Wagners planned to grow and process marijuana — as evidenced by site plans submitted to Yamhill County, Brown said.

“They have a plan. They’ve announced they have a plan. We know they’re going to do it,” he said.

The Wagners countered that unknown events — such as wind direction — don’t count as evidence that would justify an injunction against planting a crop.

“What if they want to grow lavender? What if they want to raise horses?” said Bizzano. “Nobody knows if it will ever impact the plaintiffs. They’re just scared.”

The plaintiffs initially sought a temporary restraining order against the Wagners’ marijuana grow site and processing facility, but that request was denied earlier this year.

Even so, the Wagners failed to get approval for the processing facility from the county government, so it appears that portion of the project isn’t yet moving forward.

In the most recent version of a complaint proposed by the plaintiffs, their request for an injunction against the project seems to have been scaled back.

The proposed injunction would prevent the Wagners from growing marijuana within 400 feet of either plaintiff’s property, instead of prohibiting them from cultivating it.

Another factor in the litigation is a road easement the Wagners have across the Mahesh property.

The Wagners claim they haven’t unlawfully used the easement as claimed by the plaintiffs, since the easement terms don’t restrict or prohibit farming operations.

The plaintiffs argued the judge could interpret the terms of the easement, much like he would a contract.

In this case, the illegality of marijuana under federal law also affects the easement’s permissible uses, Brown said.

Easement terms can be evaluated based on reasonable expectations and community standards, he said. “The court has the authority to reasonably construe easements.”

Northern California Wildfires Bring Unhealthy Air To Oregon

Capital Press Agriculture News Oregon -

Oregonians in southern and central parts of the state saw air conditions degrade significantly Tuesday.

Smoke from several fires burning in northern California has been pushed by southerly winds into the Klamath River basin and parts of central Oregon, according to health officials. 

Officials from the Klamath County Health Department told the Herald and News that unhealthy air should abate by Tuesday afternoon as winds start to shift.

But central Oregon will have to deal with the smoky conditions a bit longer.

“The National Weather Service reports indicate that a southwest flow will continue into Wednesday evening, bringing a certain amount of smoke to our area,” the Bend Fire Department wrote in a news release.

Many Oregonians have endured an extended summer season of bad air quality as major fires in the state — including the Chetco Bar and Eagle Creek fires — have left air in the region hazy for weeks on end.

Multiple fires that broke out in northern California’s wine country Sunday have devastated the region in a matter of days. KQED reports at least 15 people have died and more than 2,000 structures have burned in the rapidly moving blazes.

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