KLAMATH FALLS, Ore. — The possibility of enough rain showers through the upcoming summer is probably nil, so ag-related businesses in the Klamath Basin anticipate another year of drought conditions.
There is basically no snowpack on the east side of the Cascade Range, so there’ll be little or no water from melt off in the hot months of July and August. It’s anticipated that thousands of acres won’t be put into production due to a lack of surface water to irrigate.
But the business owners aren’t necessarily pessimistic about the financial situation for their companies. They have dealt with water shortages over the past dozen years, so another year of drought for farmers and ranchers — and the businesses that support them — is nothing new.
But there is frustration that little has been done over the years to solve the water shortage situation.
“We need to develop off-stream storage,” said Ron Linman, co-owner with his father Archie Linman of Klamath Basin Equipment, a 26-year business that has stores in Klamath Falls, Lakeview, Redmond and Central Point. “The economic impact of agriculture needs to be considered hand-in-hand with the environmental impact. We need politicians who will deal with it using a common sense approach.”
Archie Linman said it has been suggested that winter and spring runoff water be pumped to Clear Lake southeast of Klamath Falls for storage and that Klamath Lake be dredged to hold more water and to lower the overall water temperature in the lake. Neither idea has been developed.
While the Linmans are hopeful their company won’t have to layoff employees later this year, they admit there is the possibility their mechanics won’t get as many overtime hours this summer and commissions may be down for sales people.
“But we’ll survive,” Archie Linman said. “We sure as hell plan on it.”
Bob Bunyard owns Klamath Pump Center of Klamath Falls, a 24-year-old business with six employees. He said the company has diversified beyond agricultural projects to keep its employees busy.
“I don’t know what the answer is,” said Bunyard, who also owns 100 acres of hay ground east of the city. “The growers have already done a lot for water conservation. We can’t get too much more efficient than what we are.
“We thought we were high on the pecking order, but the government has over allocated the (Klamath) river … the whole watershed,” he added.
Todd Greer, owner of D&D Seeds of Klamath Falls, a business his parents started in 1993, said he doesn’t know how much more belt-tightening can be done. He said he’ll continue to pursue different markets outside the Klamath Basin, selling seed north to Bend and Madras, Ore., and south to Redding, Calif. He’s also developed a market with landscape companies.
“I’m sure we’ll survive,” Greer said of his business that employs four. “But when outside forces don’t realize what is going on, that makes it more difficult. I’m sure plenty of people understand the situation, but plenty don’t.”
Chuck Johnson, co-owner of Pelican Tractor in Klamath Falls, explained that his business has also expanded its marketplace over the years, selling equipment south in Northern California and east to Lakeview. The 46-year, family-owned business has also added different products and parts lines.
“We have 10 employees and we plan to keep them. We’ll find work for them,” he said. “When you start putting fish and owls before people, this is what happens.”
Michael Ugalde, the territory manager for California in the Pape Machinery store at Merrill, Ore., said some customers recently have been asking about buying used equipment rather than new machinery.
He and Billy Conrad, the territory manager for Oregon at the Merrill store, said that less land will be put into production due to a lack of water to irrigate and in turn that will mean less equipment is needed to grow and process the crop.
The Merrill store has 18 employees. Ugalde said Pape has been good at maintaining its employees through tough times, but there’s still uncertainty for the workers.
“We’ve got a vested interest in this … it’s our livelihood,” he said.
“Until you’re in the middle of it, you just don’t realize how bad it is … the degree of its severity,” Conrad said.
Chris Moudry, a managing partner with Basin Fertilizer & Chemical Co. of Merrill, said land not being put into production will impact his business. He said he expects some substantial cutbacks for some ag-related companies. But he added the 41-year, family-owned Basin Fertilizer endured similar situations created by water shortages in 2001, ’02 and ’03 and survived.
“We didn’t lay off anybody then,” Moudry said of the business’ 40 employees. “We’re committed to our people on a long-term basis. Whether we can maintain that is decided one year at a time.
“Due to the nature of our business, working with hazardous materials and large expensive equipment, if we lay somebody off, we lose a lot of experience and knowledge,” he added.
Moudry said the dam on the upper Klamath Lake was put there to store water for agriculture and irrigation, but now the water is being sent downriver for fish.
“That water was put there for agriculture and now some should be taken back,” Moudry said. “We may be severely impacted, but I have confidence we’re going to survive. There is a trickle-down effect on the economy, but we’re not going to panic.”
Ron Linman said agriculture is the Klamath Basin’s largest industry so ag is key to an healthy economy in the area.
“This community relies on agriculture and timber because there are no other developing industries here,” he said. “I’d hate to see agriculture go down the same path as timber. We just need a common sense approach somewhere along the line to deal with the problem.”