January 2, 2015
CapitalPress.com
Washington potato
growers OK deal
with Lamb Weston
More meetings with
other processors slated
for early January
By MATTHEW WEAVER
Capital Press
Columbia Basin potato
farmers have ratified a deal with
processor Lamb Weston, and
will meet in January with other
potato processors in the region.
Potato Growers of Wash-
ington negotiates on behalf of
its members, but processors use
the contract for the entire indus-
try, said Dale Lathim, executive
director for the organization in
Kennewick, Wash.
The deal with Lamb Weston
has been ratified by the grow-
ers, Lathim said, and continues
contract terms from the previous
year.
“In light of the uncertainties
and volatility going on in the
industry in terms of exports, po-
tential changes in cost of produc-
tion, both sides felt it was best to
be very conservative and not try
to outguess it,” he said.”We just
decided to leave everything right
where it is, and thought that was
the most responsible thing to do
for the industry.”
Lathim expects similar deals
with additional processing com-
panies, including J.R. Simplot
Company, McCain Foods and
Heinz, when the organization
meets with them in early January.
“There’ll be very little, if
any, change in the contract from
2014 to 2015,” he said.
“We feel positive about
the 2015 contract, which we
believe positions the industry
well for the coming year,” said
Shelby Stoolman, manager of
communication and external
relations at ConAgra Foods,
which owns the Lamb Weston
brand. “We’re proud of our
presence in the Columbia Ba-
sin and we feel good about the
strong relationships we have
with our local growers.”
The Columbia Basin is
the largest producer of frozen
processing potatoes in North
America, Lathim said. About 90
percent of the potatoes in the Co-
lumbia Basin go to processing,
with 80 percent of those going
for frozen processing. Roughly
95 percent is contracted by pro-
cessors each year, Lathim said,
representing 130,00-135,000
acres in the Columbia Basin
region and more than $1 billion
in processed frozen potato prod-
ucts. The farm gate value is in
the hundreds of millions of dol-
lars, Lathim said.
Negotiations in 2014 were
contentious because processors
asked for a 4 percent decrease
in price and sought to recoup a
percentage increase from a pre-
vious year’s agreement, but this
year was less dramatic, Lathim
said.
“Last year was a real strug-
gle. We had one thing in mind
and the processors had some-
thing else in mind,” he said.
“Getting to a reasonable out-
come was a battle. This year, be-
cause both sides were thinking
very similarly from the get-go,
it was a very smooth process.”
Growers in particular sought
stability, Lathim said.
“When it’s costing you more
than $4,000 an acre to grow po-
tatoes, you want to make sure
things stay as stable as possible,
you want to meet your mini-
mum costs,” Lathim said. “The
current contract does that, espe-
cially when we go back to more
of our normal quality.”
Yield and quality were down
in 2014 due to extreme heat, so
growers didn’t receive their usu-
al bonuses for those characteris-
tics in most cases, Lathim said.
Grower returns were less than
originally projected.
“By leaving it alone, if we go
back to a normal crop next year,
it will be significantly more rev-
enue than this year’s contract
generated,” Lathim said.
Flat oilseed prices expected
By JOHN O’CONNELL
Capital Press
AMERICAN FALLS, Ida-
ho — Eastern Idaho safflower,
mustard and flax growers should
expect relatively flat contract
prices in 2015, according to
the region’s largest buyer of the
commodities.
In January, Mountain States
Oilseeds owner Bill Meadows
plans to contract for 35,000-
40,000 combined acres of the
oilseeds in Eastern Idaho.
He anticipates prices will be
within a penny of 24 cents per
pound for flax, a quarter per
pound for safflower and 34-35
cents per pound for mustard.
“They’re in a fairly neutral
supply and demand situation,
and prices are going to stay
about where they are,” Mead-
ows said.
He said all three crops should
remain competitive with spring
wheat and barley, and mustard
prices are especially attractive. A
Canadian company has already
contracted for mustard at 35
cents per pound, a penny above
the 2014 rate.
“It’s almost a no-brainer with
mustard when it’s 35 to 36 cents.
I don’t see how you can’t grow
it,” Meadows said.
Though North Dakota and
Canada increased their oilseed
acres in 2014, Meadows said
they had widespread quality
problems, while Idaho quality
was strong.
Meadows believes he’s close
to saturating the mustard and
safflower markets for his region.
He has more interest among his
grower base in mustard acres
than he has demand and has
been seeking additional buyers
to accommodate more growth.
With safflower, a crop that
likes lower elevations and a lon-
ger season, he believes he’s also
close to saturating his market.
“There is the capacity to
overproduce safflower,” Mead-
ows said. “I think we’re right
about where supply and demand
intersects with acres.”
In 2014, he said buyers be-
gan purchasing safflower hand-
to-mouth, rather than through
John O’Connell/Capital Press
Workers at Mountain States Oilseeds in American Falls package safflower. Mountain States officials
anticipate prices paid to growers for safflower, flax and mustard will hold relatively flat in 2015.
forward contracts. Meadows
has fewer safflower sales on the
books but said shipments are up
to date.
Meadows has doubled his
flax sales in 2014, supplement-
ing his local production with
seeds from Canada. He’d like to
significantly step up his Eastern
Idaho flax acres.
“No one thought we could
ever grow flax here economical-
ly, and we’ve shown we can, so
that crop is starting to gain ac-
ceptance,” said Meadows, in his
fifth year of buying flax.
Ron Lovell, of Ririe, raised
both mustard and flax for Mead-
ows this season but doesn’t plan
to raise flax again. He’s found
herbicide label rates for flax are
insufficient to control broad-leaf
weeds, and baling off the hardy
straw is a challenge.
Several Eastern Idaho grow-
ers, however, are experimenting
with flax as a means of con-
trolling cereal cyst nematode.
Tom Wood, of Newdale, planted
25 flax acres this season where
his grain showed an orange tint,
symptomatic of cereal cyst nem-
atode damage.
Far West conference set for Twin Falls
By CAROL RYAN DUMAS
Capital Press
The Far West Agribusiness
Association’s winter confer-
ence will again bring three
days of seminars for fertilizer
and agrichemical profession-
als to Twin Falls, Idaho, Jan.
5 through 7 at the College of
Southern Idaho.
The conference will focus
on new technology, safety and
regulatory issues, agronomic
factors on dryland and irrigat-
ed acres, and management.
Highlights of the confer-
ence include a general session
Jan. 6 on wearable technology
presented by Bruce Rasa, CEO
and founder of TekWear, LLC.
Rasa will offer a glimpse
into the future of wearable
technology, an emerging wave
of smart glasses and smart
watches that amplify the ca-
pabilities of smartphones and
tablets. The presentation will
also include a discussion on
potential hands-free applica-
tions for mobile agriculture.
A general session Jan. 7
will focus on fusing genera-
tional knowledge with new
technology to enhance soil
health with a presentation by
Bill Buckner, CEO of Samuel
Roberts Noble Foundation.
The conference opens on
Jan. 5 with registration from
10 a.m. to 12:30 p.m., fol-
lowed by general sessions on
label updates and fertilizer.
Concurrent breakout ses-
sions on numerous industry
topics will run all three days.
Pesticide and crop adviser
credits are available.
For more information or
to register, go to www: fwaa.
com or call (509) 465-5055.
Sam Tanna-
hill, viticulture
director and
co-founder
of A to Z
Wineworks
in New-
berg, Ore.,
has been
appoint-
ed to the
governor’s
legislative
coordination
team for rural
economic
development.
Eric Mortenson/
Capital Press
Winery founder to help boost
rural economic growth in Ore.
By ERIC MORTENSON
Capital Press
Sam Tannahill, viticulture
director and a co-founder of
one of the state’s most suc-
cessful vineyards, has been
appointed to a team that will
shepherd the governor’s ru-
ral economic development
budget initiatives through the
Oregon Legislature.
Tannahill is among peo-
ple appointed by Gov. John
Kitzhaber to four “alignment
and coordination” teams. The
teams are intended to guide
the governor’s initiatives
through the Legislature’s
2015-17 budget adoption
process. In addition to the
rural economic development
group, other teams will focus
on budget proposals regard-
ing mental health, “age three
to grade three” education and
what is called the “pathways
connecting education to ca-
reer.”
Tannahill is viticulture
director and one of four
co-founders of A to Z Wine-
works in Newberg, Ore.,
which they started in 2002.
The group — joined by in-
vestor Gregg Popovich,
coach of the NBA’s San An-
tonio Spurs — also owns Rex
Hill Vineyards and Winery in
Newberg.
Tannahill said much of ru-
ral Oregon has not shared in
9
the state’s economic recov-
ery.
While Portland and other
urban areas hum with activity,
“You can’t leave out a large
section of Oregon,” he said.
Urban Oregon’s food and
beverage industry has been a
“real bright spot” in the econ-
omy, he said, with a strong
link to the state’s farms and
ranches.
“It’s a good bridge for the
rural and urban areas, fueled
by high-quality agriculture,”
he said.
Tannahill said the team
has met only once but will
be sharpening its focus as the
legislative session approach-
es.
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