6 CapitalPress.com Friday, March 5, 2021 Business Oregon awards grant for open-source ERP software By GEORGE PLAVEN Capital Press SALEM — Manag- ing complex businesses and supply chains is a pro- cess fraught with potential pitfalls and human error, says Abisha Stone with the Salem-based Strategic Eco- nomic Development Corp., or SEDCOR. For example, a grass seed or hazelnut farm in the Wil- lamette Valley might have to schedule applications of fer- tilizer and pesticides during the growing season, hire labor for harvest, process and sort seeds and nuts after harvest, and match ware- house inventory and pur- chase orders for shipping. “Many (companies), in my experience, are doing all those functions in Excel documents,” said Stone, Yamhill County economic development director for SEDCOR. “To have differ- ent people in different places in your business, doing sep- arate documentation and trying to pull that together. FOR MORE INFORMATION Scott Cooper Abisha Stone ... There is opportunity for them to make significant mistakes.” Enterprise Resource Planning software, or ERP, is one tool that can help, Stone said. The software systems, typically custom-built by developers, combine differ- ent “modules” that integrate all of a business’ internal and external resources under one program — including assets, cashflow, purchasing, inven- tory and payroll. The problem, Stone said, is small and mid-size busi- nesses often cannot afford the tens of thousands of dol- lars per month it takes to buy and host ERP software, put- ting them at a competitive disadvantage. Bovine manure tax credit encounters opposition By MATEUSZ PERKOWSKI Capital Press A proposal to extend Ore- gon’s tax credit for collect- ing cow manure for energy has come under fire from critics who say it’s mostly beneficial to large dairies. The tax credit of $3.50 per wet ton of bovine manure col- lected is intended to promote the construction of methane digesters that produce renew- able energy. It’s slated to end in 2022. Senate Bill 151, which would change the sunset date to 2028, is supported by the Oregon Farm Bureau and Oregon Dairy Farmers Association. “Manure digesters pro- vide very clear environmen- tal, renewable energy, and economic benefits to the dairy industry and the pub- lic,” the groups said in written testimony. Oregon currently has three methane digesters in operation, one of which annually seques- ters 136,000 metric tons of carbon dioxide — the amount emitted by about 29,000 cars, the groups said. Extending the tax credit helps ensure these digesters will remain online and may encourage others to invest in the technology, the letter said. However, critics of the tax credit claim it amounts to a subsidy for the largest “con- fined animal feeding oper- ations,” or CAFOs, in the state. The biggest benefactor of the tax credit is a dairy with 70,000 cows, and digest- ers are only economically feasible for facilities with well over 500 cows, said Amy Van Saun, an attorney with the Stand Up to Fac- tory Farms Coalition, which The Public Lands Coun- cil will hold its 2021 Legis- lative Conference virtually March 23-25 to give live- stock producers an inside look at the federal policy- making process. PLC volunteer leaders, staff and affiliates will con- duct legislative strategy sessions and workshops on how to successfully advo- cate for the livestock indus- try in the nation’s capitol. Attendees will hear from members of Congress, pol- icy experts, scientists and other industry profession- als who are dedicated to western lands, waters and perspectives. This also gives public lands ranch- ers the opportunity to catch up after a busy start to the year. “This is always such a great event because it pro- vides a chance for ranchers “There just tends to be a much more complex, com- plicated and time-exhaustive process for capturing all that data and sharing it with one another,” Stone said. “For small businesses, even just managing the procurement and scheduling is a huge jug- gling act.” Buildable, a software company in McMinn- ville, Ore., is now working with SEDCOR and other local economic develop- ment groups to create an open-source ERP platform, called OregonERP, allowing smaller businesses to capital- ize on the technology. Open-source software, as opposed to proprietary soft- ware, means that anyone with the source code can access and modify the program. In December, Busi- ness Oregon awarded a $211,250 grant to finish the final two phases of develop- ment, including implemen- tation and marketing. Stone said the modules for Ore- gonERP should be tested and completed by the end of September. “It really is a true game- changer for small to mid-size businesses to have access to systems like this, that they can actually afford,” she said. According to SEDCOR, Oregon has approximately 6,200 manufacturing busi- nesses — including val- ue-added farms and food pro- cessors — that employ more than 200,000 people, making Speaker urges FFA members to lead environmental discussions By MATTHEW WEAVER Capital Press EO Media Group File A methane digester col- lects gas from decompos- ing cow manure at a dairy and uses it as fuel to gen- erate electricity. Oregon lawmakers are consider- ing a bill to extend until 2028 a tax credit for col- lecting cow manure rath- er than have it lapse next year. opposes major CAFOs. The bill creates a “per- verse incentive” to continue siting major CAFOs in Ore- gon at the expense of rural communities, she said. At best, such digest- ers only capture the added methane generated by the development of factory farm systems, Van Saun said. CAFOs should be required to trap their emis- sions if they choose to raise animals in this man- ner, rather than be paid for it by the public, said Amy Wong, policy director of the Friends of Family Farmers nonprofit. Natural gas from fac- tory farms is not “truly clean energy” and the state gov- ernment should instead encourage pasture-based farming and technologies such as wind and solar elec- tricity, Wong said. “Oregon should not use public dollars to support large, private corporations at a time Oregon is facing a budget shortfall,” she said. PLC sets 2021 Legislative Conference By CAROL RYAN DUMAS Capital Press For more information about OregonERP, contact Abisha Stone at 503-507- 4175, or Scott Cooper at 503-474-6814. to meet with members of Congress and agency officials as we work to develop Niels policy and Hansen develop long-lasting friendships,” Niels Han- sen, PLC president, said in a press release. “I am excited to hear from our speakers and talk with PLC ranchers about the benefits that livestock grazing on public and pri- vate land have for our country,” he said. Panel discussions will focus on how grazing facilitates opportunities for other multiple uses and how permittees help protect open spaces, reduce the risk of catastrophic wildfire and promote biodiversity. To register for the free event, visit www.publi- clandscouncil.org. up 21% of the total value of goods produced across the state. Of those, 5,000 manufac- turers, or roughly 80% of the state’s total, employ 20 peo- ple or fewer. While typical ERPs may cost between $75,000 to $750,000 a year, OregonERP will cost clients less than $12,000. And since the soft- ware is open source, it can be easily customized. “We believe all manu- facturers, regardless of their size, should have access to a tool that helps them under- stand all of their costs so they enter the market at the right price,” Stone said. Other partners in the proj- ect include the Oregon Man- ufacturing Extension Part- nership and McMinnville Economic Development Partnership. “This will have a really meaningful impact on the manufacturing community, not only in Yamhill County but across the state,” said Scott Cooper, executive director of the MEDP. SPOKANE — FFA members should devote one hour per week to advocat- ing for agriculture as part of their col- lege and business career path, a long- time forester says. “Don’t fight the environmental dis- cussion, lead it,” third-generation logger and author Bruce Vincent said. “We are the environmental answer to what Amer- ica thinks are problems, but we can only do that if we lead the discussion.” Vincent spoke during the Spokane Ag Show, held virtually due to the COVID-19 pandemic. He previously spoke to FFA members during the 2019 show. Rural and urban residents have a “collision of visions,” Vincent said. “They want to save the environment, Matthew Weaver/Capital Press File Montana logger Bruce Vincent talks to FFA members Feb. 7, 2019, during the Spokane Ag Show. Vin- cent gave a presentation during this year’s show, held virtually due to the COVID-19 pandemic. and they have no idea what makes it work,” he said. “We love to consume, it’s just production we don’t like.” The public has a desire to protect “the last best places,” Vincent said. “The most consumptive society on earth has fallen in love with the environ- ment,” he said. “They demand rules and regulations to protect their environment and health. And who can blame them?” Public policy is not defined by real- ity, but by the public perception of real- ity, he said. Well-intentioned groups, causes and laws have been “bastardized” to the point where the “thin line between envi- ronmental sensitivity and environmen- tal insanity” is being crossed, Vincent said. Leaders hijacked the environmen- tal movement by selling fear, not stew- ardship and conservation, he said. It’s now dependent upon conflict and things going wrong to make money, through 20-second sound bites and imagery without context. Friday, March 5, 2021 CapitalPress.com 7 Cattle industry to engage with new administration By CAROL RYAN DUMAS Capital Press The cattle industry had some big regulatory wins during the Trump administration, including navigable water protections, revi- sions to the National Environmen- tal Policy Act and delisting of the gray wolf. And cattle producers are under- standably nervous about los- ing those gains under the Biden administration. But the industry needs to remind itself nothing is going to happen overnight, Colin Woodall, CEO of the National Cattlemen’s Beef Association, said during NCBA’s Winter Reboot virtual conference. “The president started off by signing a stack of executive orders … but there’s only so much that he can do,” he said. People are worried the Biden administration is “going to just wipe everything away with the Courtesy White House The White House. stroke of a pen,” said Ethan Lane, NCBA vice president of govern- ment affairs. But if something took two or three years to get done in the first place, it’s going to take at least that long to undo it. The rulemaking process takes time, he said. “The big stuff is going to take years for it to really work its way through the system,” he said. NCBA is building relationships in the new administration because even during the Trump administra- tion, most of the industry’s big wins came in the last two years, Wood- all said. The Biden administration is heavily focused on climate change, and there was a memo circulated among Biden’s transition team about how agriculture fits in that mix, he said. “It was made very clear that they see agriculture as part of the solu- tion to climate issues, not a part of the problem. And they even went one step further and tackled wild- fires and talked a lot about how grazing is an important mitigation tool,” he said. “It already has given us a seat at the table. The question is: Are we going to be able to maintain the administration’s position that we truly are a part of the solution?” he said. It is incumbent upon the industry to do so, he said. “This is ours to lose at this point,” Lane said. The Biden administration has made it clear that conservation objectives can’t be accomplished without grazing and cattle produc- Analyst sees better times ahead for cattle producers By CAROL RYAN DUMAS Capital Press Cattle producers have had a tough time over the last cou- ple of years, but better times are ahead, according to one indus- try analyst. The COVID-19 pandemic backed up nearly a million head of fed cattle last spring, Randy Blach, CEO of CattleFax, told the National Cattlemen’s Beef Association Winter Reboot conference last week. “We’ve pretty much got the slaughter back on pace in here, but we’re still putting record tonnage through these sys- tems,” he said. That record tonnage is still testing the market, and markets are still underperforming. But fed prices have recovered from the $95 per hundredweight last summer to about $114 now, he said. “So the markets have had a nice recovery, but there’s still significant potential above where we’re sitting today,” he said. Drought has continued, and Randy Blach the herd is continuing to con- tract. But cattle prices are still not where producers want them to be, he said. With record packer and retail margins, cattle producers have been frustrated. But there’s also been record beef production since mid-June 2020, he said. “This has been what’s hold- ing us back to some degree,” he said. Weather impacts in the last couple of weeks are going to shave some tonnage off mar- kets, but there’s still plenty of cattle to harvest, he said. “But there are better times to come,” he said. Beef demand in 2020 was the strongest in over 30 years, and it’s going to be another strong year in 2021. The growth in beef demand has added more than $250 a head to the value of fed cattle over the last several years, he said. “So this has been pretty phe- nomenal,” he said. Retail meat sales were up 10% in volume in 2020, even though foodservice sales were hammered. Retail meat sales were up 18% in value, an increase of nearly $13 billion. Beef’s share of that increase was almost $6 billion, he said. “People voted with their pocketbooks. I think we’ve got to like what we see transpire here,” he said. Despite higher unemploy- ment, U.S. household wealth increased more than $620 bil- lion in 2020 due to government support, he said. “As this economy opens back up again, people are going to want to get out and spend money,” he said. He expects U.S. gross domestic product growth will be somewhere near 6% in 2021. Some of that will depend on how fast populations in the U.S. and other parts of the world are vaccinated. But he’s expecting two years of strong GDP growth post-COVID. When the economy opens back up, job markets will improve and people are going to want to spend money, he said. “The consumer balance sheet is in the strongest position it’s been since the early 2000s,” he said. Government data would suggest U.S. household net worth has increased $5 trillion. “That bodes well for demand going forward,” he said. In the bigger picture, agri- cultural loan repayments are up, debt is down, land val- ues have increased and global demand is strong, he said. We have a new crop of materials for the Worker Protection Standard. Protect your workers from pesticide exposure with the Worker Protection Standard. We have a bushelful of materials: brochures, posters and more. To learn everything that applies, go to EPA.gov/pesticide-worker-safety S231794-1 tion, he said. “To hear that as affirmative rec- ognition right out of the box from this administration really gives us an opportunity to engage,” he said. That engagement is not just in what else cattle producers can do but to educate the administration about what producers are already doing. That’s been a piece of the puzzle that’s kind of been missing until now, he said. “Engaging with the new admin- istration and helping them under- stand how we apply those tech- nologies, how we apply that knowledge to improve conditions on the ground, how we produce the best beef in the world with the low- est environmental footprint is going to be really important to keep us in that conversation,” he said. The conversation is going to happen with or without the indus- try, and cattle producers can’t afford to be absent from the discussion, he said. Vilsack makes new appointments and policies that impact ag By SIERRA DAWN McCLAIN Capital Press WASHINGTON, D.C. — USDA Secretary Tom Vilsack, after his con- firmation by the Senate last Tues- day, is already moving forward with appointments and policies that will impact U.S. agriculture. Monday morning, Vilsack spoke at the National Farmers Union Confer- ence about his priorities. “Rural America has been forgotten far too long,” he told attendees at the virtual conference. This first full week in office, Vil- sack said, he plans to talk with the Secretary of Agricul- ture and Rural Develop- ment in Mexico and the Minister of Agriculture and Agri-Food in Can- ada about their commit- ments under the United States-Mexico-Can- ada trade agreement, or Tom Vilsack USMCA. Vilsack said he will hold them accountable to their trade promises “to the letter.” Vilsack also named two new USDA appointees: one to focus on fair mar- kets, another to advise on racial equity. For his senior adviser on fair and competitive markets, Vilsack picked Andy Green, previously a fellow at the Center for American Progress, a lib- eral think tank. Green will be responsi- ble for handling antitrust issues, push- ing for price discovery and fighting over-consolidation. Before his work at the think tank, Green gave counsel to Kara Stein, for- mer commissioner at the U.S. Secu- rities and Exchange Commission and worked as an aide to Sen. Jeff Merk- ley, D-Ore. Vilsack’s pick for the adviser on racial equity was Dewayne Goldmon, an Arkansas farmer who served this past year as the executive director of the National Black Growers Council. In his conference speech, Vil- sack also announced the creation of an equity commission, which he said will “investigate USDA to identify and root out any systemic racism in our programs.” Vilsack also reiterated a goal he’s referenced in other public speeches — his vision to create viable, voluntary, incentive-based carbon markets so that farmers can get paid to store car- bon. He said USDA will soon be ask- ing farmers for input on how to cre- ate these markets so that they will be “designed by farmers, for farmers.” Vilsack said he is already work- ing with Environmental Protection Agency Administrator Michael Regan to strengthen America’s ethanol indus- try, prioritizing small refinery biofuel waivers and weeding out larger com- panies that take unfair advantage of those waivers. As Congress prepares to pass another major coronavirus relief pack- age — this time, $1.9 trillion — Vil- sack said USDA will take time to “fig- ure out who was left out, who wasn’t supported adequately last time” and prioritize those farmers and commodi- ties this time around. “The goal is, when all is said and done, everyone in the supply chain gets a fair shot at the resources,” he said. Over the next few weeks, Vil- sack said his agency will also reach out to state governors to reiter- ate the importance of giving essen- tial workers, including farmers, farmworkers and processing plant workers, early priority for COVID-19 vaccination. Vilsack also looked ahead to goals for the future. These included hiring more USDA staff nationwide, expand- ing rural healthcare and broadband internet and creating markets for farm waste, such as new fertilizers.