Friday, December 13, 2019
CapitalPress.com
3
Departing National Farmers Union president: Exports up, prices low
with large apple crop
‘Enormous stress’ in farm country
By MATTHEW WEAVER
Capital Press
New public policy is
needed to address several
“enormous” stress factors
affecting farmers, the depart-
ing president of the National
Farmers Union says.
Roger Johnson recently
announced to the organiza-
tion’s board that he does not
plan to seek re-election at
the national convention in
Savannah, Ga., in March.
Johnson has been presi-
dent since 2009.
Johnson said he decided
to retire because he will turn
67 in January. He said he is
committed to helping ensure
a smooth transition to the
next president.
“I think we’re very
well-positioned to influ-
ence the public policy things
that need to be changed, and
frankly there’s quite a few
of them,” Johnson told the
Capital Press. “There’s a lot
of stress out in farm country
right now.”
Johnson pointed to “enor-
mous” finan-
cial stress
and declin-
ing net farm
i n c o m e
over the last
seven years.
Roger
That’s been
Johnson
“temporar-
ily” reversed
by USDA’s Market Facili-
tation Program payments,
which nobody expects to last,
he said.
“If they weren’t there,
we’d continue to see declin-
ing net farm income,” he
said. “There’s no long-term
checks, and we need one. ...
We need some public pol-
icy responses that are going
to shore up the safety net
so we don’t have to sit here
with our hand out and hope
that USDA’s going to dump
a bunch of money into some-
thing that was created as a
result of their own actions.”
Johnson also pointed to
“enormous” trade disruption.
“This administration has
offended trading partners,”
he said. “There’s been lots
of disruption, which has had
very serious consequences
on farm prices.”
The Trump administra-
tion has been increasingly
hostile to biofuels, John-
son said. The administration
has sided with “big oil” over
ethanol plants, which has
also had a negative impact
on farmgate prices.
Weather challenges have
created a lot of stress, he
said.
But Johnson said the
growing populations around
the world are a positive from
an economic standpoint.
“The weather extremes
that are happening as a result
of climate change are going
to create spikes in prices
that are going to provide
opportunities for farmers,”
he said. “If you’re a com-
modity farmer, that’s kind of
what you’re living for now.
Our policy doesn’t provide
any other methodology other
than hoping somebody else
gets production destroyed as
a result of weather or some
other catastrophe.”
Johnson also sees oppor-
tunities around larger pop-
ulation centers. Consumers
increasingly want to know
where their food comes from
and prefer to buy locally
from someone they know.
That’s where most beginning
farmers are likely to emerge,
he said.
Johnson became pres-
ident at a time of change
for the Farmers Union, fol-
lowing the recession and as
the organization moved its
national office from Denver
to Washington, D.C. He said
he is proudest of rebuilding
the office team, strengthen-
ing finances and the organi-
zation’s growing member-
ship around the country.
The NFU has 200,000
members.
Those factors position
the organization well to be
increasingly influential in
public policy, he said.
Johnson said the orga-
nization doesn’t have a
large presence in the Pacific
Northwest, but is rebuilding
in the region.
By DAN WHEAT
Capital Press
Farmers applaud USMCA progress in House
Wheat industry: Pact
provides ‘reassurance,’
ends uncertainty
By MATTHEW WEAVER
Capital Press
House Speaker Nancy
Pelosi’s
announcement
Tuesday that negotiations
on the U.S.-Mexico-Canada
Agreement have been com-
pleted was welcomed by
farmers.
“It’s very important for
United States wheat pro-
duction that USMCA get
passed,” Gary Bailey,
chairman of the Washing-
ton Grain Commission and
a St. John, Wash., wheat
farmer, told the Capital
Press. “We’ve been wait-
ing a long time. There have
been a lot of distractions
in Congress, it seems. I’m
glad they got to work and
got this done.”
Bailey said the industry
hopes to see the final agree-
ment completed before the
end of the year.
USMCA affects Mid-
western wheat farmers more
than Pacific Northwest
wheat farmers, Bailey said.
“Any increase or solidi-
fication of any trade agree-
ments helps everyone,” he
said.
Matthew Weaver/Capital Press File
Gary Bailey, chairman of the Washington Grain Com-
mission, left, with CEO Glen Squires during a board
meeting in Spokane.
The announcement is a
step toward a final agree-
ment, said Steve Mercer,
vice president of commu-
nications for U.S. Wheat
Associates, the overseas
marketing arm for the
wheat industry. The agree-
ment must be submitted to
Congress for approval.
Mercer said he didn’t
want to speculate on the
timeline for congressional
approval.
“It’s reassurance for
wheat growers and the
entire agricultural indus-
try,” he told the Capital
Press. “What we need is to
be able to continue trad-
ing freely with Mexico.
They’re our largest sin-
CAPITAL
PRESS
NEWS
gle international customer.
We feel like this agreement
finally ends the uncertainty
that’s been hanging over the
market.”
The agreement also sends
a signal that the U.S. is capa-
ble of negotiating high-qual-
ity trade agreements to ben-
efit both its economy and
that of its trading partners,
Mercer added.
“We urge the House
to expeditiously pass this
agreement so it can be rati-
fied by the Senate this year,”
Randy Gordon, president of
the National Grain and Feed
Association, said in a press
release. “Doing so will be a
tremendous win for the United
States and the entire North
Don't
Miss Out!
American region and our
interdependent economies.”
“This is welcome news
and a relief for American
farmers,” Angela Hofmann,
co-executive director of
Farmers for Free Trade, a
national bipartisan coali-
tion of ag commodity and
business groups, said in
a press release. “Now it’s
time to get the bill passed
before politics can get
in the way. Farmers and
ranchers will be watching
closely to ensure that their
members of Congress are
standing up for American
agriculture.”
Farmers have struggled
in the face of bad weather
and “unpredictable” trade
policy, Hofmann stated.
“Passing USMCA will
guarantee that our farmers’
closest and most important
markets will remain free from
tariffs and red tape,” she said.
Hofmann
commended
U.S. Trade Representative
Robert Lighthizer and con-
gressional leaders on both
sides of the aisle who have
worked to get to a deal.
WENATCHEE, Wash.
— Washington’s 2019
apple crop remains large,
prices are still low, and
while domestic sales have
been sluggish, exports are
ahead of last year.
It still looks like a “very
challenging year for the
industry” with the large
crop depressing prices, says
Desmond O’Rourke, world
apple analyst and retired
Washington State Univer-
sity agricultural economist
in Pullman.
“Even without trade dis-
putes it would be a tough
year because of the large
crop and organics and Hon-
eycrisp not getting price
premiums,” he said.
The crop was esti-
mated at 138.168 million,
40-pound boxes on Dec.
1 by the Washington State
Tree Fruit Association ver-
sus 138.208 million on
Nov. 1, a miniscule drop of
40,000 boxes.
In the first three months
of the sales season (Septem-
ber, October and Novem-
ber), 30.4 million boxes
have been sold compared
with 26.3 million at the
same time last year and 27.6
million two years ago.
Of the 30.4 million boxes
sold, 21.5 million have sold
domestically, up 6% but the
crop is 18% larger, O’Ro-
urke said.
“So that’s sluggish given
the size of the crop. Part of
it might be that the crop was
a little later this year,” he
said.
But exports, at 8.8 mil-
lion boxes are up 47%
from 5.8 million a year ago,
O’Rourke said.
That’s driven by volume
and low prices but “exports
are still well below where
they need to be for this size
of crop,” he said.
Exports need to be 35%
of the crop and right now
are running at 26 to 28% of
shipments, he said.
Exports to India are up
150% at 181,951 boxes
from 72,535 a year ago,
despite a 70% tariff.
“I believe India’s ban on
Chinese apples is still on.
So Washington is it’s main
place to area to import from
right now and with our Red
Delicious averaging $16
a box that must be very
attractive,” O’Rourke said.
Taiwan is up 104% at
1,854,192 boxes from
908,578 a year ago.
Taiwan doesn’t have tar-
iffs but had a lot of domes-
tic fruit a year ago so now
is back to a more normal
level of imports, he said.
Average prices for the
week ending Dec. 6 were
$15.54 on Red Delicious
and $19.20 on Gala, he
said.
Sales of the new Wash-
ington State University
Cosmic Crisp began Dec.
1 at sale prices of $2.99 per
pound in some stores but
movement and wholesale
pricing statistics won’t be
reported until the associa-
tion’s Jan. 1 report. Cosmic
Crisp prices are expected
to be strong this season
because of limited volume.
As of Dec. 6, the aver-
age asking price among
Yakima and Wenatchee dis-
trict shippers for extra fancy
(standard grade), medium
size 80 apples per box for
Gala was $20 to $24 and
$18 to $22 for size 88, both
down $2 on the top end
from a month ago, accord-
ing to USDA.
Red Delicious 80s and
88s were $14 to $17 per box
down $1 on the low and top
end from a month ago.
Breakeven for growers
on most varieties is gener-
ally $20 per box but some
big operators can break
even at $16 on economies
of scale on Red Delicious,
O’Rourke has said.
Honeycrisp 80s and
88s were $30 to $40.90,
unchanged from a month
ago and down from $42 to
$50.90 two months ago and
$45 to $55.90 a year and a
month ago.
Fuji 80s were $20 to $26
versus $22 to $26 a month
and 88s were $19 to $24
versus $20 to 24 a month
ago.
Granny Smith 80s were
$20 to $26 and 88s were
$20 to $24, both unchanged
from a month ago.
Golden Delicious pre-
mium 80s were $28 to $32
and 88s were $26 to $32,
both unchanged from a
month ago.
NOT YOUR GRANDFATHER’S WATER TESTING
Mineral Fingerprinting of Ground Water
Aquifer #1
Medical testing gets
updated – so does water
testing. Current testing
instrumentation provides
additional/new insights.
Aquifer #2
Pumping supposes, but
mineral testing proves
aquifer sharing. Update your
information and know.
on Your Phone!
WATER KNOWLEDGE FOR THE 21ST CENTURY
EPA Accredited OR00008 Oregon Accredited ORE100039 USGS assessment technique utilized
Corp.
Testing Water Since 1977
Beth Myers, Owner/Lab Director
2603 12th St. SE Salem, OR • 503-363-0473 • www.waterlabcorp.com
S159228-1
DOWNLOAD
OUR ALL-NEW
APP TODAY!
• Customize your news feed
with the topics that interest
you.
• Receive breaking news alerts.
• Easily save articles for
reading later.
• Share articles with just the
tap of a finger.
• Content can be viewed
offline when out-of-service
or in flight.
NEWSPAPERS
SUPPORT LEARNING.
You Can Support Ag Newspapers in
Our Community’s Classrooms
EMPOWERING PRODUCERS OF FOOD & FIBER
S159414-1
• Quickly scroll through the
latest headlines while on-
the-go.
Call us at 800-882-6789
EMPOWERING PRODUCERS OF FOOD & FIBER
S159416-1