Capital Press EMPOWERING PRODUCERS OF FOOD & FIBER Friday, September 3, 2021 Volume 94, Number 36 CapitalPress.com $2.00 WHO OWNS THE WEST? Foreign investors are buying Western U.S. farmland. I Who’s investing and why? By SIERRA DAWN MCCLAIN Capital Press n recent decades, foreign investors have bought more than 35 million acres of U.S. farmland worth $62 billion — about 2.7% of all privately held land nationwide, an area larger than New York state. And foreign investors continue to buy, accord- ing to USDA. Some American farmers view foreign investment as benefi cial, expanding markets and access to capital. Oth- ers view it as a threat to national security, food system resiliency and land access. The issue surfaced as a hot topic in Congress this sum- mer after Rep. Dan Newhouse, R-Wash., proposed legis- lation to ban the Chinese government from buying U.S. farmland. “Allowing this practice to continue would lead to the creation of a Chinese-owned agricultural monopoly and pose an immediate threat to U.S. national security and food security,” Newhouse said. The legislation is moving through Congress. Newhouse is right that China is a big player. Accord- ing to 2018 USDA data, Chinese investment in the agri- cultural sector has grown tenfold in a decade. But most of China’s investments have been in the meat sector and the Midwest. Investment often takes a diff er- ent shape in the West. In four Western farm states — Cal- ifornia, Oregon, Washington and Idaho — China doesn’t even make it onto the list of top 10 investors. So, who is buying farmland in the West, and what are Sierra Dawn McClain/Capital Pres David Millman, CEO and president of Domaine Drouhin Oregon. their intentions? Big players in the West are from Canada, Europe and Japan. Top investments include timber, tree fruit, wine- grapes, manufacturing and processing, real estate devel- opment and renewable energy. Tracking buyers To uncover which countries are investing in American soil and why, the Capital Press requested a database of public records from USDA through the Freedom of Infor- mation Act. The database is called the Agricultural Foreign Invest- ment Disclosure Act, created in response to a law Con- gress passed in 1978 requiring foreign buyers to report transactions. The database covers the years 1900 through 2019, although records are patchy prior to 1978. USDA is still compiling the 2020 list, said Amanda Heitkamp, USDA spokeswoman. The database tracks investments in cropland, pasture- land, forestland and “other” farmland. According to USDA staff , outside investments are on the rise. Filings show foreign holdings of American farm- land increased by 141% between 2004 and 2019. This, experts say, is a conservative estimate. That’s because, although the 1978 law required foreigners to report land purchases, the requirement is not enforced. Joe Maxwell, president and CEO of Family Farm Action, a group that advocates on behalf of small fam- ily farmers against corporate behemoths, said he believes the database, though useful, “woefully underreports” the number of foreign investments. “It’s just the tip of the iceberg,” he said. “We believe what’s being reported is just a thimbleful of what’s actu- ally out there.” The only way to accurately trace all foreign holdings, land use experts say, would be to piece together records from every county assessor’s offi ce in the nation — a mammoth project. “It’s just really diffi cult to track,” said Jim Johnson, land use and water planning coordinator at the Oregon Department of Agriculture. Changing hands Farmland, once in someone’s hands, doesn’t always stay there. Although USDA reports foreigners hold an interest in See Investors, Page 11 Sierra Dawn McClain/Capital Press A historic barn near the Teton Mountains in Wyoming. Neighboring Teton County, Idaho, has seen huge foreign investments in farmland. Conditions still ripe for Northwest wildfi res By GEORGE PLAVEN Capital Press PORTLAND — A long and grueling wildfi re season across the Pacifi c Northwest isn’t over yet. Conditions remain good for more blazes in parts of Oregon and Washington suff ering from extreme drought, said Ian Rickert, regional fi re management plan- ning specialist for the U.S. For- est Service and Bureau of Land Management. Rickert was one of eight panel- ists representing state and federal agencies during a virtual wildfi re briefi ng on Aug. 25. His presen- Inciweb The Bootleg Fire in southern Oregon burns at night. tation emphasized how contin- ued dry weather may contribute to a rapid spread of new fi res, espe- cially along the Cascade Range into eastern Washington and south- ern Oregon. “The most pronounced eff ect is the amplifi ed drying we see in for- ested systems,” Rickert said. “It stresses the trees, which decreases fuel moisture. They support com- bustion easily.” As of Aug. 24, some 2,933 fi res had burned 909,387 acres in Ore- gon and Washington, according to the National Interagency Fire Cen- ter. That is less than the 1.9 million acres burned at this time last year, but more than the 10-year average of 890,063 acres. Recent wetting rains in northern Washington and northeast Oregon have helped to moderate wildfi re conditions in those areas, Rickert said. However, parts of the Cascades and southwest Oregon have not seen any measurable precipitation for more than 70 days, increas- ing the probability of active fi re behavior. Several large fi res continue to burn along the densely forested western slope of the Oregon Cas- cades, including the Bull Com- plex in the Mount Hood National Forest near Detroit; the Mid- dle Fork Complex in the Willa- mette National Forest southeast of Eugene; and the Jack Fire in the Umpqua National Forest east of Roseburg. “Should we get weather events that result in high winds, instability See Wildfi res, Page 11 Draft climate plan excludes carbon sequestration Public comment period ends Oct. 4 By GEORGE PLAVEN Capital Press SALEM — A new program aimed at signifi cantly curbing Oregon’s greenhouse gas emissions is coming under criticism for omitting invest- ments that could help farms and for- ests sequester more carbon from the atmosphere. The Oregon Department of Envi- ronmental Quality released draft rules for the Climate Protection Program on Aug. 5 — similar to cap-and-trade legislation thwarted twice in the state Legislature by Senate Republicans who fl ed the Capitol to deny a vote. After the second walkout in 2020, Gov. Kate Brown signed an execu- tive order requiring Oregon DEQ and TIME TO PLAN for next year. other state agencies to take action on harmful emissions, targeting a 45% reduction below 1990 levels by 2035 and 80% below 1990 levels by 2050. Like cap and trade, the Climate Protection Program sets a limit on emissions that gradually lowers each year. Part of the program also allows regulated utilities and fuel suppliers to buy or trade off set credits to meet their reduction goals, referred to as Bank of Eastern Oregon offers Operating Lines of Credit and Term loans on Equipment and Land. Specializing in Agricultural & Commercial Loans. “community climate investments,” or CCIs. CCIs would pay for a variety of projects to transition Oregonians from fossil fuels to cleaner, more sus- tainable sources of energy, said Colin McConnaha, who manages Oregon DEQ’s Offi ce of Greenhouse Gas Programs. However, McConnaha said it will See Plan, Page 11 CALDWELL ONTARIO ALAN BULLARD JED MYERS BECKY TEMPLE NIAL BRADSHAW GAYE DOANATO KENDRA BUTTERFIELD LOGAN SCHLEICHER CALDWELL LOAN OFFICE 208-402-4887 / 422 S. 9TH ST. ONTARIO LOAN OFFICE 541-889-4464 / 435 SW 24TH ST. Member FDIC S228608-1