February 27, 2015 CapitalPress.com 7 Group defends Idaho sheep station Committee petitions Congress to reject closure 20 By SEAN ELLIS 32 Wyo. Dubois 15 33 33 Rexburg Sn BOISE — A diverse com- mittee that is trying to prevent the closure of the USDA’s sheep experiment station near Dubois, Idaho, has fi nalized a document that defends its continued exis- tence. The document, which high- lights some of the important research being done at the Agri- cultural Research Service’s U.S. Sheep Experiment Station, will be distributed to members of Congress, who will be asked in the next few weeks to prevent its closure. The station conducts re- search designed to improve the genetics, reproduction effi ciency and nutrient use of domestically grazed sheep. The USDA has proposed closing it, citing factors such as litigation by environmental groups over grazing activities at the station, which covers 22 Idaho Capital Press U.S. Sheep Experiment Station ak e River 26 20 31 Idaho Falls 91 15 N Capital Press graphic about 48,000 acres in Idaho and Montana. A committee of industry, university and state and fed- eral agency personnel seek- ing to keep the station open agreed on a fi nal document Feb. 23 following a sev- en-hour meeting. “In fi scal year 2016 and beyond, Congress must reject the USDA closure request for (the station) to ensure that valuable livestock, rangeland and wildlife research efforts and an irreplaceable fi eld lab- Photo submitted Sheep graze at the USDA Agricultural Research Service Sheep Experiment Station in Dubois, Idaho. The facility has been proposed for closure in Fiscal Year 2016 in President Barrack Obama’s proposed federal budget. oratory are not lost forever,” the document concludes. It also lists the research done at the station, including the use of new genomics data to try to increase sheep production effi - ciency and tackle disease chal- lenges. “There’s a lot of good data in there that describes what the station does,” said Idaho Wool Growers Association Execu- tive Director Stan Boyd. “This document will go to (Congress) and be used to show ARS the reasoning why the station should not be closed.” The three-page document calls for the creation of a con- sortium that will include pri- vate industry and university partners, federal laboratories and other stakeholders that will “fully utilize the irreplaceable resources and opportunities” of the station in “ongoing and future collaborative research efforts....” In a letter to Congress ex- plaining why the station is slat- ed for closure, USDA Secretary Tom Vilsack noted a lack of fi - nancial and human resources at the location and costs associated with animal feed, infrastructure and staff. The committee’s document addresses those issues as well as the USDA’s main concern: litigation against the station’s use of high-elevation grazing allotments. ARS has been sued three times since 2007 over grazing activities at the station, with various environmental groups claiming land used by the sta- tion is a source of wildlife con- fl ict and possible disease trans- mission between domestic and wild sheep. Among other factors, “con- tinued challenges from envi- ronmental groups opposed to livestock grazing along a corri- dor that includes the ... summer range has eroded ARS’ ability to sustain a viable range sheep research program at the Dubois location,” Vilsack’s Nov. 10, 2014, letter states. The committee’s document states that a solution to the higher-elevation grazing issue that is mutually agreeable for industry, wildlife and ARS interests will be identifi ed by Oct. 1. Analysts: Hay prices at point of no return By CAROL RYAN DUMAS Capital Press A short-term decrease in hay exports, lower milk pric- es and shipping delays at West Coast ports could soften west- ern hay prices in the short term, but long-term global demand will keep quality hay trading on a new, higher price plain, according to industry analysts. Growing global demand for U.S. hay, 95 percent sup- plied by western states, has largely contributed to western hay prices nearly doubling in the last 10 years, increasing to a new price plain, Rabobank economists Vernon Crowley and James Williamson said in the bank’s latest hay outlook. Local demand for hay has also grown as western state dairies increased milk produc- tion 20 percent over the last 10 years and hay production declined 8 percent, the econo- mists said. UI Extension offers land buying class By MATTHEW WEAVER Capital Press The University of Idaho Clearwater County Extension offi ce in Lewiston offers a three-evening workshop on purchasing rural land. The sessions start at 6 p.m. on March 12, 19 and 26. The program covers such issues as water rights, wells, easements, fi nancing, govern- ment assistance programs and appraising rural land values. The fi rst evening of the se- ries is an introduction to pur- chasing rural land. The sec- ond offers a real estate agent’s perspective and what buyers should know about rural land property taxes. The third in- cludes information on rural land titles, fi nancing options and technical assistance and cost-share programs. The workshop is intended for fi rst-time rural land buy- ers, said William Warren, UI assistant professor and ex- tension educator in Orofi no, Idaho. “The overall goal of my program is to inform individ- uals on how to make produc- tive use of their property to benefi t themselves fi nancially, contribute to the local econo- my and be good stewards of the land and natural resourc- es,” Warren said. The program also intro- duces new rural landowners to UI Extension, USDA Nat- ural Resources Conservation Service, USDA Farm Service Agency and other agencies. Cost is $15 per person or $20 per household for all three sessions. Enrollment is limited to 30 participants. To register, contact UI Clearwa- ter County Extension at 208- 476-4434 or clearwater@ uidaho.edu. Global demand for high-quality hay, especially from China and United Arab Emirates, and continued con- straints on western U.S. pro- duction have squeezed an already tight market, driven hay prices to record levels and have raised the bar on mini- mum prices, they said. “Ultimately, these factors have changed the industry … ,” they said. Average prices have shifted to new levels. Along with in- creased prices, market constit- uents are facing a more vola- tile marketplace, they said. Rapid development of large, corporate dairy farm projects in China and pro- longed drought in UAE have been the primary drivers of the 30 percent increase in export demand for hay over the last fi ve years, the economists said. Prolonged drought in the West and increased compe- tition for water for perma- nent crops has pulled about 300,000 acres out of hay pro- duction, and competition for land and water from high-val- ue crops continues, the econo- mists said. “A short-term decrease in global demand, coupled with restraints at West Coast ports, will put downward pressure on (hay) prices. However, prices are expected to remain above history lows. Long-term prices and global demand are expect- ed to increase, while compe- tition from high valued crops continues,” the economists stated. Water in the Middle East is an extremely scarce resource, leading governments to reduce the amount of water farmers are allowed to use. In 2008, the UAE government banned hay production altogether to protect limited water supplies. By 2013, UAE was respon- sible for 28 percent of total U.S. hay exports — more than 800,000 tons, Rabobank re- ported. U.S. average hay prices received (Dollars per ton, by marketing year) $250/ton Alfalfa All hay Other $203.50 200 *May through Dec. Source: USDA NASS $181 150 $104 $132.75 100 $98.20 Carol Ryan Dumas and Alan Kenaga/Capital Press $81.40 50 2005 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 Columbia-Snake River Irrigators Association Policy Memorandum DATE: February 20, 2015 TO: Mr. Estevan Lopez, Commissioner, USBR; Ms. Lorri Lee, Regional Director, PNRO-USBR; Mr. Robert Quint, Chief of Staff, USBR FROM: Ron Reimann, CSRIA President Darryll Olsen, Ph.D., CSRIA Board Representative SUBJECT: Irrigators’ System 1, North-I-90 Project, Water Service Contract Request ___________________________________________________________________________________________ The ability of the U.S. Bureau of Reclamation to offer responsible water resources management for the 21st Century is being tested by whether the agency can execute a new water service contract (WSC), for the System 1 Participants, North I-90, Odessa Subarea (Columbia Basin Project). It is now necessary for the Commissioner to oversee personally this effort, requiring the Pacific NW Regional Office to work effectively with private sector Irrigators, to embrace water management practices that will overshadow the future of Western irrigated agriculture. At our January 28th meeting with Regional Director Lee, a meeting requested since August of 2014, she spoke of “relationships.” To that end, we left the meeting with an understanding that USBR-CSRIA legal counsel would pursue substantive discussion on the pending WSC, provided to the USBR in May 2014, followed by a letter from the East Columbia Basin Irrigation District for the USBR to take the WSC review lead. Instead, CSRIA legal counsel received renewed obfuscation from your legal counsel, not cooperation. Working with the CSRIA, the System 1, 2, and 4 Project Irrigators have completed all necessary preconstruction engineering/economics analyses and water right transfer review; and the System 1 Project participants have secured $42 million of private capital to commence construction, now, with receipt of a new WSC. But the Region has displayed a remarkable ambivalence toward private capital and state water law; and its disregard for efficient water use applications, paramount to making the Project economics viable, is bewildering. The Regional USBR has vacillated between lethargic and obstructive action; and the District’s unfunded “normative” approach is being rejected by many--if not most--of the Irrigators, as it rests on complicated (speculative) public sector financing, and it increases costs for most of the Irrigators. The wells are running dry, and the USBR and District are delaying Project construction while falsely claiming some obscure “social benefits.” So whose interests are really being served here—the USBR Region, the District Board members/staff, the Irrigators? This deteriorating circumstance begs for USBR intervention from the highest executive level. 3030 W. Clearwater, Suite 205-A, Kennewick, WA, 99336 509-783-1623, FAX 509-735-3140 DOlsenEcon@AOL.com 2014*