Capital press., October 05, 2018, Page 4, Image 4

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CapitalPress.com
October 5, 2018
Hay exporters worried about China
ELLENSBURG, Wash. — Hay
harvest is wrapping up in Washing-
ton’s Columbia Basin and in Oregon
and while weather and quality have
been generally good, the big deal in
the export world is loss of sales to
China because of higher tariffs.
China had an 8 percent tariff on
U.S. hay but added 25 percent for a
total of 33 percent in retaliation to
President Donald Trump’s steel and
aluminum tariffs.
“Volume has dropped significant-
ly since July because of the tariff,
down more than half,” said Jeff Cal-
away, president of Calaway Trading
Inc., a major West Coast exporter in
Ellensburg.
China buys about 1.2 million met-
ric tons of U.S. hay per year, mainly
for dairies. It’s the No. 1 export mar-
ket for U.S. alfalfa and is barely No.
2 to Japan for all U.S. hay.
But another major West Coast
exporter in Ellensburg, Mark An-
derson, president of Anderson Hay
& Grain Co., said there has not been
a large impact in the China market
yet because that nation uses a lot of
Dan Wheat/Capital Press
A trucker sweeps his flat-bed trailer as second-cutting Timothy hay from Ephrata,
Wash., is unloaded at Anderson Hay & Grain Co. in Ellensburg, Sept. 20. Export-
ers have enjoyed good quality from good weather but are worried about sales
damage from China’s higher tariffs.
its own hay in summer. Any impact
will be more evident when Septem-
ber through December numbers are
compiled, he said.
“Our hope is that some kind of
agreement comes together with Chi-
na in the coming months,” he said.
Calaway said traders he deals
with in China are saying China’s
summer production is almost gone.
“It’s lower quality and I think
there’s a lot of pressure on them.
They need hay and have dropped
some of the tariffs they imposed (on
other products),” he said.
New U.S. trade agreements with
Mexico, Canada and South Korea
and progress with Europe and Japan
also pressures China, Calaway said.
“China will have to come around.
It is more dependent on us than we
are on them,” he said.
Saudi Arabia continues to be a
growth market for U.S. hay, Cala-
way and Anderson said.
Second-cutting
Timothy
is
done in Eastern Washington, lim-
ited third-cutting is finishing in the
southern Columbia Basin and alfalfa
will soon be done, Anderson said.
Oregon is wrapping up alfalfa in
Christmas Valley and Klamath, the
latter of which is sold mostly domes-
tically, he said.
The Pacific Southwest will con-
tinue with a couple more fall cuttings
mostly for domestic market, he said.
“Quality has been nice with a mix
of grades produced in all areas,” An-
derson said.
Inventory of feeder hay maybe
tightening in the PNW as quality has
been better from lack of rains, he
said.
But quality and color has also
been damaged from wildfire
Judge: Tillamook pollution lawsuit isn’t ‘time-barred’
Oregon environmental
regulators never finalized
bacterial limit, judge rules
By MATEUSZ PERKOWSKI
Capital Press
Oregon’s environmental regulators
never finalized a limit on fecal coli-
form bacteria in Tillamook Bay, which
means an oysterman isn’t time-barred
from challenging the decision, accord-
ing to a judge.
Tillamook County Circuit Court
Judge Mari Garric Trevino has found
the Oregon Department of Environ-
mental Quality’s director didn’t sign an
“issuance memorandum” for its 2001
“total maximum daily load” for fecal
coliform bacteria in the bay or send it to
the required people.
Those steps were required for “due
process” under the state and federal
constitutions, as well as administrative
law, which means the TMDL “was nev-
er finalized and instead remains a draft
order,” the judge said in an Oct. 2 ruling.
Trevino’s ruling is important be-
cause oysterman Jesse Hayes has filed a
lawsuit challenging DEQ’s standard for
fecal coliform bacteria in the bay as too
lenient.
Hayes claims the bacterial con-
tamination has restricted or prohib-
ited harvest of oysters from his 600
acres of plats in Tillamook Bay and
he seeks stricter controls over al-
leged dairy pollution in the Tillamook
basin.
Last month, an attorney for DEQ
argued that Hayes Oyster Co.’s law-
suit should be dismissed on multiple
grounds, including because he alleged-
ly missed the deadline to challenge the
TMDL by roughly 17 years.
Trevino has decided that since the
TMDL was a “draft order,” Hayes’
claim seeking damages for a public nui-
sance should be dismissed but his attack
on the standard itself isn’t time-barred.
“What we’re down to is a direct ac-
tion against the TMDL,” said Thomas
Benke, attorney for the Hayes Oyster Co.
Hayes plans to review his options re-
garding an appeal of the judge’s dismiss-
al of his damages claim but he respects
the judge’s opinion, which effectively
gives him the opportunity to modify his
complaint and continue with the litiga-
tion, Benke said.
“It means we get process,” he said.
“Now they have to defend that 17-year-
old decision.”
It remains to be seen whether Trevino
decides she has the jurisdiction to order
DEQ to finalize or modify the TMDL for
fecal coliform bacteria, he said.
Nonetheless, the judge’s ruling makes
it clear that DEQ can’t stand behind the
statute of limitations to defend a 17-year-
old “compromise” TMDL that Hayes be-
lieves is illegal, Benke said.
“This is a positive development for
all users of the rivers in Tillamook Bay,”
he said. “The big winner here is Tilla-
mook Bay.
Sadie Forzley, a state attorney rep-
resenting DEQ, said she can’t comment
on pending litigation.
Legal
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40-3/HOU
smoke preventing hay from drying
in a timely fashion, Calaway said.
The Pacific Southwest gained ex-
port market share over the PNW
in recent years due to lower ship-
ping costs. While PSW shipping
costs remain lower its prices have
increased due to Saudi Arabia de-
mand and drought in New Mexico,
Anderson said. That’s allowed the
PNW to regain some market share,
he said.
Exporters have generally recov-
ered from market losses due to the
2014-2015 work slowdown at West
Coast seaports, Anderson said.
Supply and demand are matching
up well this season and generally hay
prices have been good in the Pacific
Northwest for growers and domestic
and export markets, he said.
USDA Market News, Washing-
ton and Oregon, out of Moses Lake
for Sept. 28 said demand from ex-
porters was light with more interest
from dairies and Canadian buyers.
High test alfalfa was in short supply.
Alfalfa mid-square Supreme averag-
ing $200 per ton and Good $165 per
ton. Alfalfa small square Premium
$200 and Timothy small square Pre-
mium $260.
Farm Bill expiration puts
39 programs in limbo
By CAROL RYAN DUMAS
Capital Press
Expiration of the 2014
Farm Bill has orphaned 39
programs, leaving them bereft
of funding.
Those programs span 10 of
the 12 farm bill titles and sup-
port conservation, bioenergy,
rural development, research,
nutrition, organic agriculture,
farmers’ markets, trade pro-
motion and beginning, mili-
tary veteran and socially dis-
advantaged farmers. Because
they received mandatory fund-
ing of $50 million or less, they
don’t have baseline funding
beyond Sept. 30, when the fed-
eral government’s fiscal year
ended.
Mandatory spending on
those programs over the course
of the five-year farm bill was
about $2.8 billion — account-
ing for 0.6 percent of the $489
billion in total mandatory costs
and 2.5 percent of the total
excluding nutrition programs,
according to the Congressional
Research Service.
“While this total may be
a relatively small fraction of
total farm bill spending, the
effect may be particularly im-
portant to specific farm bill
titles and to the programs’ ben-
eficiaries,” CRS analysts said.
The nonprofit Center for
Rural Affairs agrees and is
most concerned with about 10
of those sidelined programs,
Anna Johnson, policy manag-
er with the center, told Capital
Press.
But four major conserva-
tion programs not on the or-
phaned list are also stranded,
she said.
“They have funding, but
authorization has run out. Even
though the money is there,
they’re (USDA) not allowed
to run the programs,” she said.
Those programs are the
Conservation
Stewardship
Program, Conservation Re-
LEGAL
PURSUANT TO ORS
CHAPTER 87
Notice is hereby given that the following
vehicle will be sold, for cash to the
highest bidder, on 10/15/2018. The sale
will be held at 10:00am by
COPART OF WASHINGTON INC
2885 NATIONAL WAY WOODBURN, OR
2010 INTRNTL CARGOSTAR LT
VIN = 4RACS162XAN071813
Amount due on lien $1,445.00
Reputed owner(s)
RICHARD C MC CAUL JR
BB/T FINAN FSB SHEFFIELD FINAN
serve Program, Regional Con-
servation Partnership Program
and Agricultural Easement
Program, she said.
With the beginning of a
new fiscal year, conservation
programs would normally be
ramping up for new contracts,
but USDA has to sit on its
hands. It has no authority for
new contracts, she said.
But it’s not just conserva-
tion programs that are being
sidelined, she said.
“Many programs that sup-
port rural vitality are being left
behind with the farm bill expi-
ration,” she said.
Uncertainty abounds due
to depressed commodity pric-
es for many years, and lack of
a farm bill creates additional
uncertainty, she said.
“The farm bill is getting
left on the wayside, and that’s
irresponsible,” she said.
The Center for Rural Af-
fairs wants a farm bill as
soon as possible and also
wants Congress to pass a
farm bill extension quickly
to fully fund and authorize
all of the programs, she said.
Wheat, corn and soybean
growers are particularly
concerned with a lapse in
the Foreign Market Devel-
opment Program, another of
the 39 orphaned programs.
That program is funda-
mental in U.S. Wheat Asso-
ciates work to promote U.S.
wheat around the world,
Vince Peterson, USW pres-
ident, said in a press release.
“We use FMD funding to
cover salaries of more than
40 non-American employees
and expenses for 14 overseas
offices,” he said.
Without FMD funding,
USW will have to cover costs
incurred by shifting funds
away from its activities or
by using reserves from pro-
ducer funds, he said.
“That is a short-term
bridge we have used in the
past. But it is not sustain-
able for more than several
months. Beyond that, we
would have to start cutting
activities and eventually
closing offices,” he said.
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