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About Capital press. (Salem, OR) 19??-current | View Entire Issue (Dec. 22, 2017)
6 CapitalPress.com Editorials are written by or approved by members of the Capital Press Editorial Board. December 22, 2017 Opinion All other commentary pieces are the opinions of the authors but not necessarily this newspaper. Editorial Board Editor & Publisher Managing Editor Joe Beach Carl Sampson opinions@capitalpress.com Online: www.capitalpress.com/opinion O ur V iew Douglas County plan raises plenty of questions A Area in detail Douglas Co. mulls plan to rezone 35,000 acres of farm- land and forestland Pacific Oce an land use fight is shaping up in Oregon’s Douglas County that pits the broader interests of agriculture against the interests of urban developers — and perhaps the interests of specific land owners who might want to sell. Douglas County commissioners are considering changing the designation of nearly 35,000 acres in farm and forest zones to “non-resource transitional lands.” That would allow up to 2,300 20-acre home sites to be carved out of land now reserved for agriculture and timber harvests. According to the county, the sites are of low quality for commercial farm production and taken together represent only about 1 percent of farm and forestland in the county. 101 LANE 5 Coos Bay 138 COOS Roseburg 42 62 JACKSON JOSEPHINE 199 Medford N 20 miles Capital Press graphic They speculate that no more than half the lots would ever be developed. The county contends that current zoning doesn’t support the demand for “rural lifestyle” dwellings. It’s unclear who is clamoring for these types of properties, but it’s a safe bet there would be demand from wealthy retirees and out-of-towners looking for vacation properties to take advantage of the area’s good weather and scenic beauty. Not so fast. State land use regulators and farmland preservation advocates are concerned by the proposal. Advocates at 1,000 Friends of Oregon say the county hasn’t proven the need for more rural housing stock and is pulling a fast one by misapplying authority it’s granted under Oregon’s land use laws to meet its objectives. Oregon’s Department of Land Conservation and Development shares some of the group’s concerns. As in many of these land use issues, we are conflicted. We have always maintained that private property owners should generally be allowed to use their land for the purpose that provides the highest return. For an owner, land suited for only marginal crop production might well be worth more as a sizable plot for a “rural lifestyle” dwelling. At the same time, we know that once truly productive farmland is used for something other than farming the soil is often lost forever to agricultural production. Significant loss of production leads to a loss of infrastructure that supports farming — storage, processing, packing, transportation. And that hurts farmers with otherwise viable operations. We haven’t heard much from the people who own the land, which is scattered around the various cities in the county. That could explain the county’s low estimate of just how much of this land could ever go on the block. Willing buyers need willing sellers. Indications are good that this dispute will end up with the state Land Use Board of Appeals. We’d like to know, on a plot- by-plot basis, the true productive potential of the land. Is any of it improperly categorized? That question is moot if the county is exceeding its authority. Anyone hoping to pull up stakes in favor of a prime “rural lifestyle” dwelling in Douglas County will just have to wait for these issues to be resolved. Here’s how ag lenders can help farmers succeed O ur V iew By CRAIG CARPENTER For the Capital Press T It’s about public perception Gary King, center, pours wine for patrons in the tasting room at Chateau St. Jean winery in Kenwood, Calif., on Nov. 24. The winery reopened in mid-November after being closed because of a wildfire in October that burned an adjacent hillside and forested area. Tim Hearden/For the Capital Press W Fallout from disasters and for business. The down side: hen it comes to the other occurrences often hurts Customers were staying away. public, perception is innocent bystanders. Eleven years It’s bad enough being the reality. ago, spinach was identified as victim of a terrible natural Even the facts don’t get in the the source of food-borne illness disaster. It’s almost worse not way of how John Q. Public views and the California farm where it to be a victim, only to have an event or issue. was grown issued a recall. But Take, for example, the wildfires the public stay away in droves the widespread fallout from that because of some assumed that burned parts of California recall was amazing. Farmers damage. wine country. The images and in Washington state stories on the fires two months ago showed It’s almost worse not to be a victim, only reported that customers refused to buy their horrific scenes of to have the public stay away in droves spinach — even though whole neighborhoods because of some assumed damage. it was grown 1,000 miles and thousands of acres from the fields linked to that were decimated. the recall. Some blame “the media” One could hardly fault members of It’s all about public perception. the public for assuming all was lost for such assumptions. They are There was no conceivable way that missing the point. Newspapers, in Napa, Sonoma and Mendocino Washington-grown spinach had counties, three of the crown jewels websites and television stations anything to do with the recall, yet cover the action when and where of the West Coast wine world. consumers steered clear of it. State officials estimated the insured it occurs. They really don’t have Similarly, only 11 of 1,200 damages at $3.3 billion. Combined the resources to cover the wineries that don’t catch fire. You never see wineries were destroyed by with the stories of destruction and the wildfires in California, yet death, the public assumed the area a news story about the bank that customers assumed the worst. wasn’t robbed. was a total loss. But by promoting themselves That’s where the power of Except for one thing: That is and the fact that they are open for advertising and social media wrong. business wineries are overcoming can pick up the ball. Through While the property damage those inaccurate public promotions and social media and death toll — 43 people died perceptions. in the fires — were awful, the vast wineries are reaching millions The other good news: The majority of vineyards and wineries of people in the Bay Area and elsewhere who might enjoy a visit public has a famously short remained untouched. memory. to wine country. Better yet, they were still open he agricultural indus- try is the backbone of Oregon in many ways, but it’s hardly for the faint of heart. Commodities markets ebb and flow, the weather changes from year to year, long days stretch from sun up to sun down, and the need for new equipment and technology is constant. More than anything, be- ing a farmer or rancher is personal. It’s generational, and often multi-generation- al. And each farm is unique, with needs that are different for each producer. This makes a rock-solid relationship with your finan- cial institution all the more valuable. Farm businesses go through cycles and your ag lender has to be a partner you can trust for the long- term, through thick and thin. Finding the perfect fit is not always easy. Many large, for-profit commercial banks struggle to understand the agricultural industry. As Oregon has grown increas- ingly urban over the years, many of the state’s most fa- miliar commercial banking institutions have either dis- appeared — swallowed by larger banks based outside Oregon — or now avoid ag- ricultural lending altogether. For many in the farm busi- ness, it can feel like com- mercial lenders don’t even speak the same language. The evidence of a chang- ing financial industry is hardly anecdotal. In 2006, 36 banks were chartered in the state, according to Oregon’s Department of Consumer and Business Services. That number had been cut nearly in half by the end of 2016, dwindling to just 20. By con- trast, the number of credit unions chartered in Oregon has remained steady at 21 over the same time period. This makes locally based community credit unions and banks all the more im- portant, particularly in the agricultural industry. At lo- cal credit unions and com- munity banks, consumers tend to receive more person- alized service at branches that are typically more inti- mate, and people who live and work in the community make decisions locally. Smaller, communi- ty-based financial institu- tions tend to have deeper insights into what drives the local market, but with an eye on the larger world markets that affect us all. For this reason, community banks and credit unions are Guest comment Craig Carpenter typically better positioned to serve agricultural pro- ducers. Those relationships tend to live on a more per- sonal level, in which the de- cision-makers for both the business and financial in- stitution work directly with one another, which is criti- cal for the health of a farm or ranch. Of course, the needs of a producer in Ontario, Ore., are often not the same as one in the Willamette Val- ley. Whether you’re farming alfalfa, wheat, hops, onions, grapes, or something else, loan decisions are made lo- cally — where they belong. They aren’t shipped off to a corporate office in Seattle or San Francisco. The result is a stream- lined process, with relation- ships that are forged face- to-face, so you always know with whom you are dealing. And from operating lines of credit, machinery and equip- ment term loans, and real es- tate term loans, everything community banks and credit unions do is tailored to each farmer’s individual needs. In our experience, what most producers want is an ag lender who will listen to your needs, truly understand your plans, and who builds a deep understanding of your business. A truly personal relationship with your lend- er can be so important, so when the inevitable storm comes, your financial insti- tution can help you weather it by remaining nimble. The financial system is healthiest when there is a di- verse mix of institutions of all sizes that can adequately meet the needs of all producers, both big and small. And the farmers and ranchers of Ore- gon should know that strong local financial institutions remain committed to serving the agricultural industry. To put it simply, pro- ducers are at their strongest with a financial partner that understands the local land- scape and the business they are trying to build. Craig Carpenter is senior vice president of lending and business solutions for SELCO Community Credit Union. A graduate of Eastern Oregon University and a native of Ontario, Ore., he is an expert in agricultural lending with more than 30 years of experience in the banking industry.